DESIGNATED REPRESENTATIVES PRESENT: REGULAR MEETING OF THE BOARD OF DIRECTORS OF THE STATE OF NEW YORK MORTGAGE AGENCY OCTOBER 27, 1988 PRESENT: Robert J. Mil ano Jill M. Considine Hazel N. Dukes Roy J. McDonald Sonia Sotomayor Charles Carson Royce Mulholland Rudy Runko STAFF: Carmen A. Culpeper John F. Eforo Jerylle M. Kemp John Spano Daniel F. Sheehy Stephen Chopey Angel Aponte Horace A. Herzog Thomas Manning Robert J. Seligman Antoinette Gallo Kenneth Pops John Thompson George Leocata Paul Greenfield June Sweeney Lawrence Gulotta Kathleen M. Sharkey Celeste Johnson Jeffrey Pelletier Michael Chalmers Michael K. Dalley Betty Seneca Chairman of the Board of Directors Superintendent of Banks, NYS Banking Department Di rector Director Di rector Representative of Jill M. Considine, Superintendent of Banks, NYS Banking Department Representing Richard L. Higgins, Commissioner, NYS Division of Housing and Community Renewal Representing Dall W. Forsythe, Director, NYS Division of the Budget President/Chief Executive Officer Senior Vice President/Chief Financial Officer Vice President/General Vice President and Director/Single Family Programs Vice President/Mortgage Insurance Program Vice President/Internal Audit Assistant Vice President/Special Assistant to the President Comptroll er Director of Finance Deputy General Counsel Associate Counsel Financial Manager Director, Upstate Operations Assistant Director of Mortgage Financing Chief Planning &Development Officer, Mortgage Insurance Program Mortgage Underwriter Mortgage Underwriter Mortgage Insurance Administrator Director of Public Relations Program Specialist Manager, Systems and Programs Director of Personnel Director of Administration
Transcript
DESIGNATED REPRESENTATIVES PRESENT:
REGULAR MEETING OF THEBOARD OF DIRECTORS OF THE
STATE OF NEW YORK MORTGAGE AGENCYOCTOBER 27, 1988
PRESENT:
Robert J. Mil anoJill M. ConsidineHazel N. DukesRoy J. McDonaldSonia Sotomayor
Charles Carson
Royce Mulholland
Rudy Runko
STAFF:
Carmen A. CulpeperJohn F. EforoJerylle M. KempJohn Spano
Daniel F. SheehyStephen ChopeyAngel Aponte
Horace A. HerzogThomas ManningRobert J. SeligmanAntoinette GalloKenneth PopsJohn ThompsonGeorge LeocataPaul Greenfield
June SweeneyLawrence GulottaKathleen M. SharkeyCeleste JohnsonJeffrey PelletierMichael ChalmersMichael K. DalleyBetty Seneca
Chairman of the Board of DirectorsSuperintendent of Banks, NYS Banking DepartmentDi rectorDirectorDi rector
Representative of Jill M. Considine,Superintendent of Banks, NYS Banking Department
Representing Richard L. Higgins,Commissioner, NYS Division of Housing andCommunity Renewal
Representing Dall W. Forsythe, Director,NYS Division of the Budget
Vice President/Mortgage Insurance ProgramVice President/Internal AuditAssistant Vice President/Special Assistant to the
PresidentComptroll erDirector of FinanceDeputy General CounselAssociate CounselFinancial ManagerDirector, Upstate OperationsAssistant Director of Mortgage FinancingChief Planning &Development Officer, Mortgage
Insurance ProgramMortgage UnderwriterMortgage UnderwriterMortgage Insurance AdministratorDirector of Public RelationsProgram SpecialistManager, Systems and ProgramsDirector of PersonnelDirector of Administration
A regul ar meeting of the Board of Di rectors was hel d at the State of NewYork Mortgage Agency's offices, 260 Madison Avenue, New York, N.Y. on October 27,1988 at 11:07 a.m. Mr. Milano noting a quorum was present acted as Chairman andcalled the meeting to order. Ms. Kemp acted as Secretary and recorded theminutes.
A. Approval of Minutes
The minutes of the regular meeting of the Board held on September 22, andthe special meeting of the Board held on October 24, 1988, copies of which weresent to each Board member prior to the meeting, were approved and ordered filed.
B. Ratification of Approval of Pleasant Creek Meadows - Mortgage InsuranceProject
The Board ratified action taken with respect to the Pleasant Creek Meadowsmortgage insurance project which was approved at the October 24th meeting. Atthat meeting, Mr. Milano was personally present and the remaining members participated by means of a conference telephone.
Mr. Mulholland reported that the project involves 100 percent mortgageinsurance for a loan by the New York State Housing Finance Agency (HFA) in theamount of $8.15 million. He noted that HFA had completed pricing its bonds andhe thanked SONYMA staff for their cooperation and assistance on this matter. Mr.McDonald complimented the Agency on its attention to the upstate areas in view ofits participation in the Pleasant Creek Meadows project. On motion duly made,seconded unanimously carried the following resolution was adopted.
GUESTS:
Henry LanierMaureen LundbergHoward ZuckerKeith MurphyApril Levine
Shearson Lehman Hutton, Inc.NYS Division of the BudgetHawkins, Delafield &WoodNew York State Comptroller's OfficeNew York State Comptroller's Office
RESOLVED, bv the Board of Directors of the State of New YorkMortgage Agency as follows;
Section 1. The prior approval by this Board of the projectdescribed as Pleasant Creek Meadows, Le Ray involving 100percent insurance of a New York State Housing Finance Agencymortgage loan in the approximate amount of $8.15 million assuitable for mortgage insurance is ratified and confirmed.
Section 2. The Mortgage Insurance Division is authorized toissue its Cormni tment and Certi fi cate upon terms and conditions substantially similar to those contained in theProject Summary presented to this meeting.
Section 3. This resolution shall take effect irmnediately.
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C. Chairman's Report - Directors' and Officers' Liability Insurance
The Agency received a revised proposal for Directors' and Officers' Liability Insurance. Mr. Milano requested that Mr. Herzog review the proposal indetail. The revised proposal from R.C. Knox &Company offers $5 million coveragefrom Aetna and an additional $5 million of coverage from National InsuranceCompany. The premium for the first $5 million of coverage is $149,800; this costwould exceed the line item in the budget by approximately $13,000. The additional $5 million of coverage would cost an additional $75,000. Mr. Herzog characterized the premium as having an immaterial effect on the budget as a whole.
Mr. Eforo reported on his earlier discussions with Mr. Milano as to whetherthe insurance premium should be charged against bond funds or continue as part ofthe operating budget. Mr. Horo suggested that the premium be part of theoperating budget with a corresponding increase in the line item amount.
In response to a question by Ms. Sotomayor, Ms. Kemp explained that theBoard pursuant to POL §18 had previously adopted a resolution authorizing theAgency to indemnify its officers and directors and that the Agency is authorizedto purchase insurance which will afford protection pursuant to this section.
Mr. Herzog noted that the policy proposal received from E.G. Bowman onlyprovided for $2 million of coverage. Mr. Milano indicated that his prior dealings with Mr. Joe Peak of R. C. Knox had been very satisfactory. Mr. Peak wasasked to join the meeting.
Mr. Peak revi ewed the terms of the proposal. In response to a seri es ofquestions from Ms. Sotomayor, Mr. Peak confirmed that (i) policy coverage iscombined for the Agency, the Board members and the officers of the Agency; (ii)assuming a claim for fraud and willful misconduct, the insurer would advancedefense costs as they are incurred; (iii) if a claim including wrongful andnon-wrongful acts was made, defense costs would be advanced; and (iv) the Agencywith the insurer's approval can select defense counsel.
Mr. Horo and Ms. Kemp discussed recent claims made against the Agencyinvolving redemption of Agency bonds. No material or substantive claims arecurrently pending against the Agency. Mr. Milano requested a monthly report fromthe General Counsel to the Board on any claims which would materially affect theAgency. He asked that the report be included in the Board package.
Mr. Milano invited discussion on the amount of insurance coverage ($5 or $10million). Ms. Sotomayor felt neither coverage would be adequate in the event asubstantial claim was made against the Agency. The consensus of the members wasto purchase $5 million insurance coverage. On motion duly made, seconded andunanimously carried, the following resolution was adopted .
RESOLVED, by the Board of Directors of the State of New YorkMortgage Agency as follows:
Section 1. The proposal from R.C. Knox and Company, Inc. forAetna Casualty & Surety Company to provide a policy ofDirectors' and Officers' Liability Insurance with $5 millionof coverage at an annual cost of $149,500 on the termspresented to this meeting is hereby accepted and approved.
BO. MINS.jMINS9 -3-
Section 2. This resolution shall take effect immediately.
********O. President's Report
Ms. Culpeper reported on the Technical Corrections Bill passed by the Houseand the Senate. MRB's have been extended until December 31, 1989; howevercertain additional restrictions have been imposed. The Agency will re-examineits programs in light of the new legislation in order to include as manyhomebuyers as possible.
Ms. Culpeper noted the Agency's "800 11 operation is being improved andincludes revised training for the operators.
Mr. Mulholland requested staff's analysis of the performance of the Agency'sWashington D.C. lobbyist. Ms. Culpeper thought the Kutak firm was very effective; its attorneys provided helpful information and took action when it wasrequi red.
E. Monthly Activity Report
Ms. Culpeper referred to the materials in the Board package which summarizedthe act i vi ty of the Forward Commitment and Mortgage Insurance Programs duri ngSeptember. She noted the new rate for mortgages was 8.6%. Mr. Milano complimented Ms. Culpeper on her achievements since she assumed the position of President of SONYMA.
F. September Variance Report
Ms. Cul peper noted the major category whi ch exceeded its budgeted per; odamount was overtime. She also indicated a review of service contracts wasunderway to increase efficiency and reduce costs.
G. Report of Audit and Finance Committee
Mr. Runko reported on the Commi ttee meeti ngs held on September 22 andOctober 27. Actions taken included approval of Agency responses to (i) a ToucheRoss &Co. Management Letter; (ii) a Mitchell/Titus &Co. audit; (iii) a New YorkState Banking Department Report of Examination and (iv) a New York State BankingDepartment Electronic Data Processing Report. On motion duly made, seconded andunanimously carried, the following resolution was adopted.
RESOLVED, by the Board of Directors of the State of New YorkMortgage Agency as follows:
Section 1. The response by the Agency to the Touche Ross &Co. Management Letter dated August 11, 1988 for the yearended March 31, 1988 is approved.
Section 2. The Agency's response to the Mitchell/Titus &Co.Directors Audit for the year ended March 31, 1988 is approved.
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Section 3. The response by the Agency to the Banking Department Report of Examination dated December 31, 1987 is approved.
Section 4. The response by the Agency to the Banking Department Electronic Data Processing Report dated February 8, 1988is approved.
Section 5. This resolution shall take effect immediately.
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H. Report of Mortgage Insurance Committee
Mr. Mulholland reported on the actions taken at the meeting of the MortgageInsurance Committee concluded earlier in the day. The Committee approved projects located at 334-348 East 105th Street, New York and at 264 Echo Place and
.2474 Marion Avenue, Bronx.
Ms. Sotomayor expressed her concern over the gentrifi cat ion of culturalneighborhoods that have existed for many years. She felt that economic development is displacing cultural groups who fonned the original neighborhood; shepointed to the East 105th Street project as an example. Ms. Sotomayor questionedwhether SONYMA should participate in such projects that displace cultural groupsfrom thei r nei ghborhood and expressed a concern that the project may recei venegative publicity. Ms. Sotomayor requested an analysis by income of economicand social groups which will be affected by mortgage insurance projects. Ms.Culpeper indicated this request has been passed on to staff.
Mr. Mulholland observed that the request is beyond the scope of the Agency;one needs to take a broader view of activities by DHCR and other agencies andgroups; SONYMA merely complements these groups' activities.
Ms. Dukes clarified that SONYMA was asked to participate in the 105th Streetproject. However, she would like to see the Agency take the initiative inselecting future projects. She noted that agencies outside of New York are ableto take the initiative in selecting and developing housing projects.
Ms. Culpeper indicated a desire for SONYMA to initiate projects. It wasclarified that no individual or group has been displaced by the 105th Streetproject. Mr. Gulotta pointed out that CPC is required to certify that there hasbeen no undue tenant displacement.
1. 1401 University Avenue, Bronx, (Project Samaritan) - Mortgage InsuranceProject
Mr. Gulotta reviewed in detail the project located at 1401 UniversityAvenue, Bronx, which involves the construction of a 66-bed residential andhealth-related facility on a vacant parcel of land. The Agency has been asked toinsure 100 percent of a New York State Medical Care Facilities Financing Agencyloan in the amount of $9,000,000.
SONYMA's insurance will become effecti ve at commencement of constructi on.In response to Mr. Milano's question concerning minimizing soft costs, Mr.
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Mulholland noted that Turner Construction Company and other project participantshave agreed to guaranteed maximum contract prices.
In answer to Ms. Considine's question on rating SONYMA insurance, Mr. Sheehyexplained that HFA projects with AMBAC insurance involve a wrap fee of 50 basispoints. For this project with MCFFA utilizing Capital Guaranty Insurance, thewrap fee will be 20 basis points. The Agency is discussing a rating for theMortgage Insurance program with Standard and Poor's. Mr. Gulotta noted thatSONYMA is retaining a project consultant for the construction loan to reviewchange orders and requests for drawdowns. Mr. Milano questioned whether theAgency could draw upon the engineering expertise possessed by other Stateagencies such as UDC.
Ms. Dukes inquired about the status of the National Black Theatre project inHarlem. Mr. Gulotta noted the Agency has already issued its Commitment formortgage insurance whi ch requi res among other thi ngs achi evement of speci fi edrent levels. There have been changes in the project which have delayed theconstruction loan closing. Mr. Runko confirmed that changes in constructioncosts required PACB approval as well as additional funding from UDC. Mr. Milanonoted that SONYMA came into the project in its final stages. He requested that acopy of the Agency's Commitment be sent to Ms. Dukes. Ms. Dukes suggested thatthe Agency not lose sight of its purpose to provide housing. On motion dulymade, seconded and unanimously carried, the following resolution was adopted.
RESOLVED, by the Board of Directors of the State of New YorkMortgage Agency as follows:
Section 1. The project described as 1401 University Avenue,Bronx ; nvol vi ng 100 percent insurance of a New Yorl< StateMedical Care Facilities Financing Agency mortgage loan in theapproximate amount of $9,000,000 is approved as suitable formortgage insurance.
Section 2. The Mortgage Insurance Division is authorized toissue its Commitment and Certificate upon terms and conditions substantially similar to those contained in theProject Summary presented to this meeting.
Section 3. This resolution shall take effect immediately.
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J. Personnel Committee Report
Ms. Dukes announced the recent appointment of Mr. Angel Aponte as AssistantVice President and Special Assistant to the President. Additionally, the Committee ;s recommending the appointment of Mr. Spano as Vice President and Directorof Single Family Programs. On motion duly made, seconded and unanimouslycarried, the following resolution was adopted.
RESOLVED, by the Board of Directors of the State of New YorkMortgage Agency as follows:
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Section 1. John Spano is appointed Vice President andtf1rector of Single family Programs at an annual salary of$80.000.
Section 2. This resolution shall take effect immediately.
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K. November Board Meeting
Mr. Milano announced that the November Board meeting has been scheduled forNovember 29 at 9:00 a.m.
l. SEFA
Mr. Chopey reported that the annual SEFA Campaign is scheduled to begin inearly November. Donations from staff are invited.
There being no further business, the meeting was adjourned at 1:15 p.m.
Secretary
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•SPECIAL MEETING OF THE
AFFIRMATIVE ACTION COMMITTEE OF THEBOARD OF DIRECTORS OF THE
STATE OF NEW YORK MORTGAGE AGENCYMAY 16, 1989
PRESENT:
DESIGNATED REPRESENTATIVES PRESENT:•
•
Robert J. MilanoHazel N. Dukes
OTHER BOARD MEMBERS PRESENT:
Milton KutsherRoy J. McDonaldSonia Sotomayor
Charles Carson
Rudy Runko
STAFF:
Carmen A. CulpeperAndrew A. GoldmanJohn F. Eforo
Jerylle M. KempJohn Spano
Daniel F. Sheehy
Aileen Schlef
Stephen ChopeyAngel Aponte
Robert J. SeligmanPaul Greenfield
Chairman of the Board of DirectorsDirector
DirectorDirectorDirector
Representing Jill M. Considine,Superintendent of Banks, NYSBanking Department
Representing Dall W. Forsythe,Director, NYS Division of theBudget
A special meeting of the Affirmative Action Committee was heldat Kutsher's Country Club, Monticello N.Y. on May 16, 1989 at10:59 a.m. Ms. Dukes noting a quorum was present acted asChairperson and called the meeting to order. Ms. Kemp acted asSecretary and recorded the minutes.
A. Affirmative Action Report
Ms. Dukes observed that the Agency's Affirmative ActionProgram was mandated by law; the Committee has been established tocarry out this program.
Ms. Dukes referred to the May 12, 1989 report submitted by theAgency to the EEOC. The Report covers the period July 1, 1987 toJune 30, 1988. The Report indicates the percentage of females andnon-whites in the SONYMA workplace; Ms. Dukes observed that therehad been a significant increase in these categories.
Mr. Milano noted that the management of SONYMA is as committedto following affirmative action policies as is the Committee. Onmotion duly made, seconded and unanimously carried, the followingresolution was adopted.
RESOLVED, by the Affirmative Action Committeeof the Board of Directors of the State of NewYork Mortgage Agency as follows:
section 1. The Agency's EEOC Report for theperiod July 1, 1987 to June 30, 1988 aspresented to this meeting is approved.
section 2. This resolution shall take effectimmediately.
Ms. Sotomayor requested a more detailed breakdown between thenumber of black and hispanic employees in the various categoriescovered by the Report.
Ms. Culpeper suggested that Mr. Dalley prepare an affirmativeaction report on a monthly basis and submit it to Ms. Dukes and theother Committee members.
In response to Mr. Runko' s inquiry as to how the Agency I saffirmative action policies are followed in contracting withoutside third parties, Mr. Milano observed that one element in thesOlicitation of bids is the Agency's request for detailed affirma
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tive action information .
Mr. Goldman noted that the Agency concentrates its affirmativeaction activities in the areas of employment and the purchase ofgoods and services.
There being no further business, the meeting was adjourned at11:20 a.m .
•1
JOINT REGULAR MEETING OF THE ADMINISTRATION & PERSONNEL AND THEAFFIRMATIVE ACTION COMMITTEES OF THE
BOARD OF DIRECTORS OF THESTATE OF NEW YORK MORTGAGE AGENCY
NOVEMBER 30, 1989
PRESENT:
•
Robert J. MilanoHazel N. DukesRichard L. Higgins
Sonia SotomayorJohn Hull
OTHER BOARD MEMBERS PRESENT:
Roy J. McDonald
Chairman of the Board of DirectorsDirectorCommissioner, NYS Division of Housing
and Community RenewalDirectorDirector
Director
DESIGNATED REPRESENTATIVES PRESENT:
•
Robert E. Arnold
STAFF:
Carmen A. CulpeperAndrew A. GoldmanJohn F. Eforo
Jerylle M. KempJohn Spano
Daniel F. Sheehy
Aileen Schlef
Stephen ChopeyAngel Aponte
Horace A. Herzog
Administration 11-30
Representing Jill M. Considine,Superintendent of Banks, NYSBanking Department
A j oint regular meeting of the Aff irmative Action Committeeand the Administration & Personnel Committee was held at the Stateof New York Mortgage Agency's offices, 260 Madison Avenue, NewYork, N.Y. on November 30, 1989 at 10:56 a.m. Ms. Dukes noting aquorum was present acted as Chairperson and called the meeting toorder. Ms. Kemp acted as Secretary and recorded the minutes.
•
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Robert J. SeligmanPaul Greenfield
John ThompsonVincent W. wilsonMargaret LeahyLawrence Gulotta
June SweeneySheldon GoldmanKathleen M. SharkeyJeremy KahnWendy SchorrStephanie Walker-FisherGrace Lyu-Volckhausen
GUESTS:
M. Anthony FisherCharles AtkinsMary Pat ArcherNancy ManeyKevin O'DonoghueGlenn DeansDan Murphy
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Deputy General CounselDirector of Inter-Governmental
RelationsDirector, Upstate OperationsDirector, western Regional OfficeDirector of Mortgage FinancingDirector of Underwriting & Chief
UnderwriterMortgage UnderwriterMortgage UnderwriterMortgage UnderwriterProgram SpecialistResearch DirectorProgram AssistantDirector/Minority Program Evaluation
The minutes of the regular meetings of the committees held onOctober 26, 1989, a copy of which was sent to each Committee memberprior to the meeting, were approved and ordered filed.
B. Affirmative Action Policies & Programs
Ms. Culpeper indicated that personnel matters would bediscussed by the Board in executive seSSlon. The Board will alsoconsider the goal plan being prepared for submission to theGovernor's Office of Minority & Women's Business Development. Theplan relates to the business that will be done by the Agency withminority and women based enterprises.
Mr. Andrew Goldman suggested that the Board establish specificgoals and objectives for the Agency to follow in 1990. Heindicated that in 1989, 8% of the Agency's contracts were with
Administration 11-30
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minorities which includes women-based enterprises. Ms. Dukesrequested a more specific breakdown on minority participation inAgency contracts. Ms. Sotomayor considered the 8% figure to beabysmal and requested information of minority percentages invarious segments of the marketplace. Mr. Higgins indicated thatthe Governor's Office is attempting to ascertain this information.Ms. Dukes suggested that the Agency should be able to provide adetailed list of the types of services being utilized.
Mr. Higgins observed that foraccurate numbers relating to minorityare available. Ms. Dukes reiteratedfor each vendor that the Agency uses.
a given particular area,and women based enterprisesher request for a breakdown
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Mr. Goldman noted that the report being prepared for theGovernor's Office of Minority & Women's Business Development wasoriginally due October 15; the Agency has met with arepresentative of that group and the Agency's proposed schedule tocomplete and submit its report was found to be acceptable.
There being no further business, the meeting was adjourned at11:10 a.m .
Administration 11-30
•1
REGULAR MEETING OF THEMORTGAGE INSURANCE COMMITTEE OF THE
BOARD OF DIRECTORS OF THESTATE OF NEW YORK MORTGAGE AGENCY
MARCH 29, 1990
PRESENT:
DESIGNATED REPRESENTATIVES PRESENT:
•
•
Robert J. MilanoRichard L. Higgins
Roy J. McDonald
OTHER BOARD MEMBERS PRESENT:
Jill M. Considine
Hazel N. DukesSonia Sotomayor
Robert E. Arnold
David Googins
STAFF:
Carmen A. CulpeperJohn F. Eforo
Jerylle M. KempJohn Spano
Daniel F. Sheehy
Stephen ChopeyAngel Aponte
Horace A. HerzogKenneth PopsRobert J. SeligmanVincent W. WilsonMina McEvoy
MIC-3-29
Chairman of the Board of DirectorsCommissioner, NYS Division of Housing
and Community RenewalDirector
Superintendent of Banks, NYS BankingDepartment
DirectorDirector
Representative of Jill M. Considine,Superintendent of Banks, NYSBanking Department
Representing Dall W. Forsythe,Director, NYS Division of theBudget
Assistant to the PresidentComptrollerDirector of FinanceDeputy General CounselDirector, Western Regional OfficeDirector of Program Planning,
Development & Administration,
• Lawrence Gulotta
Michael K. Dalley
GUESTS:
Henry LanierNancy ManeyHoward ZuckerBarbara FeldmanEileen HeitzlerAdam Sherman
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Mortgage Insurance DivisionDirector of Underwriting & Chief
Underwriter, Mortgage InsuranceDivision
Director of Personnel
Shearson Lehman Hutton, Inc.NYS Division of the BudgetHawkins, Delafield & WoodBear, Stearns & Co., Inc.Webster & SheffieldGoldman Sachs & Co.
•
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A regular meeting of the Mortgage Insurance Committee was heldat the State of New York Mortgage Agency's offices, 260 MadisonAvenue, New York, N.Y. on March 29, 1990 at 12:18 p.m. Mr. Milanonoting a quorum was present acted as Chairman and called themeeting to order. Ms. Kemp acted as Secretary and recorded theminutes.
A. Mortgage Insurance Program - Policy Issues
Mr. Milano reported that an informal meeting of Committeemembers occurred in Albany the previous week. Those presentexamined a broad range of issues to be addressed in the future. Alist of policy considerations will be presented at the May retreatmeeting.
B. Approval of Minutes
The minutes of the regular meeting of the Committee held onFebruary 22 , 1990, a copy of which was sent to each Committeemember prior to the meeting, were approved and ordered filed.
C. 2020 Broadway, Schenectady - Mortgage Insurance Project
Mr. Sheehy described the captioned project which involves theconversion of an existing school building into a 102 bed facilityfor veterans. The Agency has been asked to insure 100% of a$3,200,000 loan being made by the city of Schenectady IDA. Onmotion duly made, seconded and unanimously carried, the followingresolution was adopted.
RESOLVED, by the Mortgage Insurance Committee of the Board ofDirectors of the State of New York Mortgage Agency as follows:
Section 1. The project known as 2020Broadway, Schenectady, New York involving 100percent insurance of a City of Schenectady
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•3
Industrial Development Agency loan in theapproximate amount of $3,200,000 is approved assuitable for mortgage insurance.
section 2. This resolution shall takeeffect immediately.
D. 1917-19 7th Avenue, 110 st. Nicholas Avenue, 120-6 West 116thstreet and 110 West 116th Street, New York - Mortgage InsuranceProject
Mr. Sheehy reviewed the captioned project which involves therehabilitation of several mUlti-family buildings to produce 82residential units. The Agency has been asked to insure 100% of aCPC loan in the amount of $2,624,000.
Ms. Sotomayor voiced her continuing objection torehabilitation of projects in low income areas without providingfor a higher component of low income families. She repeated herrequest for an analysis of the various economic groups in theneighborhood affected by the project. Mr. Sheehy noted that thisis a New York City sponsored project. Mr. Higgins commented thatthis project is designed for middle income groups and representswhat he considers an acceptable solution to the overall housingproblem. Ms. Sotomayor noted that many affected groups are opposedto the project.• Ms. Dukes questioned the mix of persons inneighborhood. Mr. Higgins responded that thereadily available.
and around theinformation is
•
On motion duly made, seconded and unanimously carried, thefollowing resolution was adopted.
RESOLVED, by the Mortgage Insurance Committee of the Board ofDirectors of the State of New York Mortgage Agency as follows:
section 1. The project known as 1917-19 7th Avenue, 110 st. Nicholas Avenue, 120-6West 116th Street and 110 West 116th Street,New York, New York involving 100 percentinsurance of a CPC loan in the approximateamount of $2,624,000 is approved as suitablefor mortgage insurance.
section 2. This resolution shall takeeffect immediately.
E. 74 McCarty Avenue, Albany - Mortgage Insurance Project
Mr. Sheehy reviewed the captioned project which involves theconstruction of five, 2 1/2 story apartment buildings which when
MIC-3-29
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completed will produce 90 residential units. The Agency has beenasked to insure 100% of a New York state Housing Finance Agencyloan in the amount of $3,200,000. On motion duly made, secondedand unanimously carried, the following resolution was adopted.
RESOLVED, by the Mortgage Insurance committee of the Board ofDirectors of the State of New York Mortgage Agency as follows:
section 1. The project known as74 McCarty Avenue, Albany involving 100percent insurance of a NYS Housing FinanceAgency loan in the approximate amount of$3,200,000 is approved as suitable for mortgageinsurance.
section 2. This resolution shall takeeffect immediately.
F. 137, 139-141 Washington Street, Binghamton - Settlement ofClaim For Loss
The Committee was requested to approve the payment by theAgency of $259,275 to Chase Lincoln First Bank, N.A. in fullsatisfaction of the Agency's obligations under its policy ofmortgage insurance. On motion duly made, seconded and unanimouslycarried, the following resolution was adopted.
RESOLVED, by the Mortgage Insurance Committee of the Board ofDirectors of the State of New York Mortgage Agency as follows:
section 1. The propo sa 1 to pay$259,275 in full settlement of the Claim ForLoss filed by Chase Lincoln First Bank, N.A.under certificate No. 40001-04 covering theproject located at 137, 139-141 WashingtonStreet, Binghamton, as presented to thismeeting, is approved.
section 2. This resolution shall takeeffect immediately.
G. Information Items
Mr. Sheehy related the questions raised by Mr. Hull concerningthe decision not to acquire the Binghamton property referred topreviously. In order to acquire the property, the Agency wouldhave to pay the insured approximately $480,000. Since the propertywas appraised at only $300,000, such an acquisition appeared to beeconomically unfeasible.
Mr. Sheehy reported on the delinquency involving four separateCPC loans made to Abe Gin. Mr. Gin has filed a bankruptcy petition
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under Chapter XI. CPC has obtained a court order appointing atrustee to replace the borrower as a debtor-in-possession and tomanage the property directly. Mr. Sheehy clarified that althoughinsurance was declared effective recently, the projects had beenapproved for mortgage insurance some time ago.
In response to a question by Ms. Sotomayor, Mr. Sheehyexplained that foreclosure was necessary to reach the asset becausethe borrower would not provide a deed-in-lieu of foreclosure.
There being no further business, the meeting was adjourned at12:36 p.m.
MIC-3-29
..REGULAR MEETING OF THE
MORTGAGE INSURANCE COMMITTEE OF THEBOARD OF DIRECTORS OF THE
STATE OF NEW YORK MORTGAGE AGENCYJULY 26, 1990
PRESENT:
Robert J. MilanoRichard L. Higgins
John HullRoy J. McDonald
Chairman of the Board of DirectorsCommissioner, NYS Division of Housing
and Community RenewalDirectorDirector
OTHER BOARD MEMBERS PRESENT:
DESIGNATED REPRESENTATIVES PRESENT:•
•
Jill M. Considine
Hazel N. DukesSonia Sotomayor
Robert E. Arnold
Rudy Runko
Cynthia Harmon
STAFF:
Carmen A. CulpeperAndrew A. GoldmanJerylle M. KempJohn Spano
Daniel F. Sheehy
Stephen ChopeyAngel Aponte
MIC-7/26
Superintendent of Banks, NYS BankingDepartment
DirectorDirector
Representative of Jill M. Considine,superintendent of Banks, NYSBanking Department
Representing Dall W. Forsythe,Director, NYS Division of theBudget
Representative of Dall W. Forsythe,Director, NYS Division of theBudget
President/Chief Executive OfficerExecutive Vice PresidentVice President/General CounselVice President and Director/Single
A regular meeting of the Mortgage Insurance Committee was heldat the State of New York Mortgage Agency's offices, 260 MadisonAvenue, New York, N.Y. on July 26, 1990 at 10:41 a.m. Mr. Hullnoting a quorum was present acted as Chairman and called themeeting to order. Ms. Kemp acted as Secretary and recorded theminutes.
A. Approval of Minutes
The minutes of the regular meeting of the Committee held onJune 21, 1990, a copy of which was sent to each Committee memberprior to the meeting, were approved and ordered filed .
MIC-7/26
• B. Daly Avenue; Highbridge Village Houses; HarrisonTremont Vyse I; Tremont Vyse II; Tremont Vyse III.
3
Houses;
..
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Mr. Sheehy stated that the above proj ects represented thecUlmination of an effort by various housing groups in the stateand utilizes a variety of financing techniques.
Mr. Gulotta summarized the details of these six interconnectedproj ects. He stated that SONYMA has been requested to insure100% of certain permanent mortgage loans for an aggregate totalof $10,757,557 committed by HDC on June 4, 1990. Mr. Gulottanoted that the projects would provide affordable housing forpersons earning between $21,000 and $29,000 a year.
Ms. Sotomayor noted that 89% of the persons in the communitywhere the projects would be situated have incomes below theabove-cited figures. She added that the Agency must encouragedevelopers to create units geared to the incomes of localcommunity populations. SONYMA should request that projectparticipants conduct studies of the incomes of the population inthe areas where a given project would be located.
Mr. Sheehy stated that significantly larger subsidies would berequired to reach a target population with much lower incomes .
Mr. Higgins noted that low income communities in New York citysupport creation in their neighborhoods of more mixed-incomehousing projects, and stated that the City's and State's housingapproach was a coordinated, well planned effort to construct lowand moderate income housing projects.
Accepting the good intentions of the housing effort, Ms.Sotomayor questioned the existence of a proper balance in effortsto create low and mixed income projects. She stated that inapproving a project the Committee was responsible forquestioning and analyzing data provided by project participants,and should analyze the impact of a particular proj ect on itscommunity. Mr. Higgins noted his opposition to this approach andoffered to provide a presentation setting forth the State'sbroad-based housing efforts.
Ms. Sotomayor suggested that the Committee invite opponentsand proponents of these projects to make presentations to theCommittee, thereby providing an opportunity for community leadersto make their views known to the Committee. Mr. Hull noted thatthe Committee did need to learn more about project affordabilitylevels. Mr. Higgins reiterated his position as to the inherentdifficulty of using the Agency's Mortgage Insurance Fund toinsure low-income projects; specifically that the ability ofmortgagors to make debt payments was a key element of any
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insurer's economic analysis.
Mr. Milano thanked committee members for an informativediscussion of pertinent policy issues. He suggested thatresolution of the matter be left to future committee meetings forin-depth study. Mr. Milano emphasized his support of low-incomeproj ects, but stated that he subscribed to a broader housingviewpoint in an effort to serve unmet housing needs and communitystability.
Ms. Culpeper stated that within the next two weeks she wouldask Ms. Felice Michette, City Commissioner of Housing, for apresentation of the type suggested by Ms. Sotomayor.
Mr. Hull questioned staff as to the ability of persons earning$21,000 to provide $6,000 down-payments. He also questioned thereasons for approving all six projects at this time. Mr. Gulottadiscussed reserves and other security elements which lowered therisk level of these projects.
Mr. Higgins noted that these projects were part of an effortby the Archdiocese and the State to address two issues: 1)housing needs of low-income groups, and 2) maintenance ofmoderate income cooperatives. He stated that it was critical forprojects to have concurrent approval •
Mr. Hull expressed his view that if the Agency I s experiencewith one of the earlier projects proves to be negative, approvingthe projects as a group eliminates the Agency's ability to takesuch information into account.
Mr. Milano noted that these proj ects entail risk and addedthat the function of SONYMA's MIF was to calculate such risks andthen take prudent action.
Mr. Milano also discussed the ongoing effort by Mr. Hull, theMortgage Insurance Committee and staff ln formulating andrefining the MIF's Policy Statement and requested that the matterbe placed on the Committee Agenda for discussion, recommendationand approval by the Board at its next meeting.
On motion duly made, seconded and carried, the followingresolution was adopted.
RESOLVED, by the Mortgage InsuranceCommittee of the Board of Directors of the Stateof New York Mortgage Agency as follows:
•section 1. The proj ects known
Avenue: Highbridge Village Houses:
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as DalyHarrison
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Houses; Tremont Vyse I ; Tremont Vyse I I ; andTremont Vyse III involving 100% insurance ofcertain Housing and Development corporation loansin the aggregate approximate amount of$10,757,557 are approved as suitable for mortgageinsurance.
section 2. This resolution shall takeeffect immediately.
C. 213, 221, 229, 233, 241, 243 West 115th street, New York, NY
SONYMA has been requested to insure 100% of apermanent first mortgage loan committed by thePreservation Corporation on January 19, 1990.
$1,179,000Community
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Mr. Hull questioned staff on the net worth of one of theproj ect guarantors. Mr. Gulotta provided the Committee withinformation as to the individual's contributions to the project.
Mr. McDonald questioned staff as to the level of MIF activitybeing carried out in Long Island and upstate New York. Mr.Gulotta summarized the status of various ongoing projects inthese areas. Mr. Higgins commented on the willingness of banksin upstate areas to get involved in these types of projects, butquestioned the level of demand. Staff will provide Mr. McDonaldwith a report of its regional activities.
On motion duly made, seconded and carried, the followingresolution was adopted.
RESOLVED, by the Mortgage InsuranceCommittee of the Board of Directors of the Stateof New York Mortgage Agency as follows:
section 1. The project known as 213, 221,229, 233, 241, 243, West 115th Street, New York,NY involving 100% insurance of a CPC loan in theapproximate amount of $1,179,000 is approved assuitable for mortgage insurance.
section 2. This resolution shall takeeffect immediately.
D. Introduction of Mr. Gregory Schatz.
Mr. Sheehy introduced a new member of the MIF, Mr. GregorySchatz, Director of Single Family Mortgage Insurance Programs.
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There being no further business, the meeting was adjourned at11:50 a.m.
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• 1
REGULAR MEETING OF THEBOARD OF DIRECTORS OF THE
STATE OF NEW YORK MORTGAGE AGENCYNOVEMBER 5, 1992
PRESENT:
DESIGNATED REPRESENTATIVES PRESENT:
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William C. Mattison, Jr.Angelo J. Aponte
Hazel N. DukesFioravante G. PerrottaStanley GreensteinSandra Shapard
Robert E. Arnold
Cynthia Harmon
STAFF:
John G. MartinezJames J. WhiteJohn F. Eforo
Jerylle M. KempJohn Spano
Daniel F. Sheehy
stephen ChopeyCarmen StanleyAngel Aponte
Horace A. HerzogHarold KupleskyRobert J. SeligmanBeth Landau
John ThompsonAnthony MarconiToni Langkau
Chairman of the Board of DirectorsState Director of Housing and
Commissioner, NYS Division ofHousing and Community Renewal
DirectorDirectorDirectorRepresenting Patrick J. Bulgaro,
Director, NYS Division of the BudgetRepresenting Derrick D. Cephas,
Superintendent of Banks, NYS BankingDepartment
Representative of Patrick J. Bulgaro,Director, NYS Division of the BUdget
Assistant to the PresidentComptrollerDirector of FinanceDeputy General CounselSpecial Assistant to the Executive Vice
PresidentDirector, Upstate OperationsManager, Buffalo Regional OfficeDirector of Marketing & Community
A regular meeting of the Board of Directors was held at theState of New York Mortgage Agency's offices, 260 Madison Avenue,New York, N.Y. on November 5, 1992 at 3:33 p.m. Chairman Mattisonnoting a quorum was present called the meeting to order. Ms. Kempserved as Secretary and recorded the minutes.
Director of Underwriting & ChiefUnderwriter, Mortgage InsuranceDivision
Research Director
NYS Housing Finance AgencyNYS Housing Finance AgencyShearson Lehman Brothers Inc.NYS Division of the BudgetNYS Division of the BUdgetNYS Division of the BudgetHawkins, Delafield & WoodBear, Stearns & Co., Inc.R.C. Knox & Company
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A. Approval of Minutes - October 1, 1992 Board Meeting
Chairman Mattison requested that when Board members review theagenda items, any questions be raised with staff, to the extentpossible, prior to the scheduled meeting date.
The minutes of the regular meeting of the Board held on October1, 1992, a copy of which was sent to each Board member prior to themeeting, were approved and ordered filed.
B. Approval of Minutes - August 21, 1992 RIS Committee Meeting
Chairman Mattison requested that only those members who werepresent at the August 21 meeting vote to approve the minutes. Onmotion duly made, seconded and carried, the following resolutionwas adopted.
RESOLVED, by the Board of Directors of theState of New York Mortgage Agency as follows:
section 1. The minutes of the RIS committeemeeting of August 21, 1992 are approved.
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section 2. This resolution shall take effectimmediately.
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C. Homeownership Mortgage Revenue Bonds - Series B Resolution
Mr. Eforo reported that the Agency is planning to issue itssecond series of Homeownership Mortgage Revenue Bonds which will besold to the NYS Common Retirement Fund. He noted that the bondsare taxable. On motion duly made, seconded and carried, thefollowing resolution was adopted.
RESOLVED, by the Board of Directors of theState of New York Mortgage Agency as follows:
section 1. The Homeownership MortgageRevenue Bonds Series B Resolution attached heretoas Exhibit "A" is adopted.
section 2. This resolution shall take effectimmediately.
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• D. Directors' & Officers' Liability Insurance
Mr. Martinez reported that RFP' s for Directors' & Officers'Liability insurance were sent to four brokers; of the four firms,two chose not to respond. Bowman & Company Inc. recommended thatthe Agency renew its policy with Aetna. R.C. Knox, the broker forthe Aetna policy, submitted a quote for $5 million of primary D&Ocoverage at a cost of $139,800; this represents a decrease inannual premium costs of $10,000. R.C. Knox also submitted a quotefrom Gulf Insurance Company for $5 million of excess coverage at acost of $87,500. Both policies, if accepted, would be effective asof November 1.
Commissioner Aponte noted that indemnification legislation fordirectors and officers has been a legislative priority for the pastseveral years. In response to an inquiry from Mr. Perrotta, Mr.Peak indicated that if legislation did in fact pass, the Agencycould not cancel the policy and recover the unearned premium. Onmotion duly made, seconded and carried, the following resolutionswere adopted.
RESOLVED, by the Board of Directors of theState of New York Mortgage Agency as follows:
of the Agency I sand CompanyCasualty and
renewalPersons
with Aetna
1. TheInsured
Policy
sectionDesignatedReimbursement•
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Surety Company providing $5 million coverage foran additional one year period at a premium of$139,800 is approved.
section 2. This resolution shall take effectimmediately.
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RESOLVED, by the Board of Directors of theState of New York Mortgage Agency as follows:
section 1. The Agency is authorized topurchase from Gulf Insurance Company an excesscoverage Directors and Officers Liability andCompany Reimbursement Insurance Policy providingcoverage of $5 million for a one year period at apremium of $87,500.
section 2. This resolution shall take effectimmediately.
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E. Fleet/SONYMA Community Revitalization Program
Mr. Martinez reviewed the captioned program. He noted that itseeks to provide homeownership opportunities for New Yorkers thatwould not otherwise qualify for mortgages in the conventionalmarket. He observed that the Program will (i) use more liberalizedunderwriting guidelines, (ii) offer interest rates slightly belowconventional rates and (iii) provide for reduced closing costs.
In response to an inquiry from Mr. Greenstein, Mr. Eforoindicated that the interest rate on the mortgages will be fixed atthe time they were committed, and it would be the same pass throughinterest for the SONYMA bonds that are sold to Fleet Bank. TheProgram applies only to existing structures, not to newconstruction.
On motion duly made, seconded and carried, the followingresolution was adopted.
RESOLVED, by the Board of Directors of theState of New York Mortgage Agency as follows:
section 1. The Agency is authorized to enterinto a commitment to sell an aggregate principalamount not to exceed $25 million of taxable bondsto Fleet Bank in accordance with the terms of anoffering summary to be entered into between theAgency and Fleet Bank.
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section 2. This resolution shall take effectimmediately.
* * * * * *F. Homeownership 2 Mortgage Revenue Bonds General Resolution &Series A Resolution
On motion duly made, seconded and carried, the followingresolution was adopted.
RESOLVED, by the Board of Directors of theState of New York Mortgage Agency as follows:
section 1. The Homeownership 2 MortgageRevenue Bonds General Resolution attached heretoas Exhibit "B" is adopted.
section 2. The Homeownership 2 MortgageRevenue Bonds Series A Resolution attached heretoas Exhibit "C" is adopted.
section 3. This resolution shall take effectimmediately.
Ms. Dukes commented that the proposed resolution honoring JudgeSotomayor is a testament to Judge Sotomayor's work and dedication.On motion duly made, seconded and carried, the following resolutionwas adopted.
WHEREAS, Pursuant to her appointment to theBoard of Directors of the State of New YorkMortgage Agency by the Governor of New York, theHonorable Mario M. Cuomo, with the advice andconsent of the Senate, Sonia Sotomayor dedicatedherself to serving the pUblic interest byproviding clear, intelligent and reasoned input tothe Board and its committees from July, 1987 toSeptember, 1992; and
•WHEREAS, Ms. Sotomayor's legal expertise,
sound jUdgement and astute reasoning wasinvaluable to the Board and the Agency in theestablishment of sound policy; and
WHEREAS, True to her convictions, Ms.Sotomayor consistently defended the rights andneeds of the disadvantaged to attain, maintain,
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and secure affordable housing appropriate to theirneed. Ms. sotomayor also served as the conscienceof the Board concerning the negative effects ofgentrification which can harm communities andcreate hopelessness and homelessness ifindividuals and families are displaced; and
WHEREAS, Ms. Sotomayor's leadership as aBoard member helped the Board of Directors andstaff to focus on issues concerning "people",furthering the principle that housing is more thanbricks, mortar and that our mission is to alsoserve people; and
WHEREAS, The President of the united States,The Honorable George Bush, upon the recommendationof State Senator Daniel P. Moynihan, with theacquiescence of Senator Alphonse D'Amato, has seenfit to honor Sonia Sotomayor by appointing her asFederal Judge for the Southern District of NewYork and the Senate of the United States hasconfirmed said appointment, in recognition of heroutstanding credentials and many personalattributes; and
WHEREAS, The Board of Directors of SONYMA andthe Staff of the Agency are elated by the honorand recognition bestowed upon Ms. sotomayor.
NOW THEREFORE, Be it resolved by the Board ofDirectors of the State of New York MortgageAgency, that the Board, its senior staff and allAgency employees, express and convey theirappreciation and gratefulness to Ms. Sotomayor forfive years of service and guidance to SONYMA.
The Board of Directors, dUly assembled onthis 5th day of November, 1992, also convey theirbest wishes to Ms. Sotomayor in all her futureendeavors.
Given in the city, County and State of NewYork, this 5th day of November, 1992.
* * * * * *H. Committee Reports
Chairman Mattison indicated that the Committee Reports could bewaived inasmuch as all Board members were present for the Committeemeetings.
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I. President's Report
Mr. Martinez reported that President Bush vetoed the Urban AidTax Bill; as a result, the Agency is not able to issue any newmoney MRB bonds until a tax bill is passed. It is estimated thatsuch legislation will be forthcoming in the summer of 1993.
J. Executive Session
On motion duly made, seconded and carried, the meeting wasadjourned to executive session to discuss matters relating topending litigations, collective bargaining negotiations and thelease of new office space.
Following the executive session, Chairman Mattison reconvenedthe meeting at 4:45 p.m. and reported that no action was taken byformal vote.
There being no further business, the meeting was adjourned at4:46 p.m.
