Housing agency looks to revamp [Valley Morning Star, Harlingen, Texas]

Oct. 30--HARLINGEN -- The Harlingen San Benito Housing Finance Corp. is putting its corporate documents in order and will review its bylaws to ensure that its activities are being carried out "legally," the board's President Sam Lozano said at a board meeting Tuesday.

For one, the corporation's name has to be changed, and the corporation continues to list a man sentenced for a bribery-related charge as its registered agent.

The board Tuesday also approved the transfer of some of its funds to a bank where one of its members is an officer, in what Lozano called a "goodwill gesture."

At Lozano's suggestion, the board voted to transfer $200,000 of $400,000 of the corporation's funds from an account at BBVA Compass Bank to Frost Bank, where board Treasurer Michael Boland works.

He stepped outside, and did not participate in the discussions.

But his wife Norma Boland also serves on the board, and remained during its discussions. She works at First Community Bank</org>.

When asked if she should remain in the meeting room because she is married to Boland, City Attorney Richard L. Bilbie said, "I'm not going to get into that one. I'm not legal counsel (for the corporation)."

District 4 Commissioner Chino Sanchez, who attended the meeting as an observer, asked Lozano why the corporation's funds could not be kept at Compass.

Lozano said there was no problem, but he didn't think all the money should be in one bank.

Dividing it provides further protection for the corporation's funds, and maintains a balance within the $250,000 standard deposit insurance amount.

Following the vote, Boland said that he would not be the bank officer on the account.

Smiling, Norma Boland quipped that perhaps there could be funds in the future that could be transferred to the bank where she works.

The forum was a meeting at City Hall wof the housing finance corporation, which was incorporated Aug. 1, 1980, and at that time was named The Harlingen Housing Finance Corporation.

That name remained despite a Feb. 25, 1985, amendment to the articles to include the participation of the city of San Benito.

To this date, Arnulfo "Arnie" Olivarez continues to be listed as the corporation's registered agent.

Olivarez presently is in the second year of four years probation on a 2011 federal sentence for conspiracy to violate federal bribery laws, according to records of the U.S. District Court for the Southern District of Texas.

Lozano said that it is urgent to change the registered agent and suggested that the board's president be the registered agent and that City Hall's address be listed as the corporation's address.

"I thought this thing had been taken care of," board Director Larry Galbreath said. Lozano said that his discussions with bond counsel Ann M. Levy showed that the change required the board to approve a resolution, but that had not been done.

And, although the corporation has been using the name Harlingen San Benito Housing Finance Corp. in order to include San Benito, this also was not done through resolution: "It was not legal," Lozano further advised the directors who were present, Galbreath, Robert Leftwich, and the Bolands.

The board voted to have Levy review the documents and the bylaws for recommendations.

Changes also would require the approval of both San Benito's and Harlingen's city commissions.

City Manager Carlos Yerena and City Secretary Amanda Elizondo also attended the meeting. Yerena said following the meeting that city staff was on hand to provide support to the corporation in its goals of providing housing in the community.

Yerena responded that the city does not keep the minutes or manages the corporation's funds. He also noted that city staff does not have a contractual relationship with the corporation and is not reimbursed for its support.

But the corporation is closely tied to the city, he said. The City Commission created the corporation to act on the city's behalf to carry out public programs. The commission also appoints the directors, and also retains the final say-so in many decisions, including the issuance of bonds and amending the articles of incorporation.

It was organized as a "public" non-profit corporation, its articles state.

eperez-trevino@valleystar.com

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