The Laredo Housing Finance Corporation on an announced motion approved using escrow funds—up to $195,000—to purchase property insurance for Hamilton Apartments and authorized the board chairman to sign related documents.

Board members met at 12:16 p.m. in Laredo; the action followed staff reports that an insurer had notified the corporation its coverage would lapse on Dec. 19 unless a new policy was placed. "We received the letter that that insurance would lapse on December 19th," a housing authority staff member told the board.

The matter matters because the Hamilton Apartments are subject to U.S. Department of Housing and Urban Development restrictions that require clearance before transfer of title, and staff said a full transfer can take “closer a 120 days to 6 months.” To avoid a lapse in coverage while the corporation completes dissolution and the transfer to the city, the board authorized drawing on the escrow account that holds funds designated for insurance.

Board discussion addressed procurement and insurer concerns. A staff speaker said brokers and carriers are reluctant to issue short-term policies if they expect a near-term cancellation: "It's not gonna look good if we say we're gonna insure it and we're gonna cancel it in 3 months," the staff speaker said, summarizing the broker's guidance. Board members and staff discussed keeping the policy in place until the city formally adds the property to its insurance pool after transfer.

The motion—moved by an unnamed board member and seconded by board member Eva Montoya—directed staff to secure quotes from the prior carrier (via FalconSherr, according to staff remarks) and to use escrow funds up to a maximum of $195,000 to purchase coverage; the motion also authorized the chairman to sign documents. The motion carried with members present voting in favor.

Staff said the escrow account currently has about $195,000 available and that the escrow holder and broker were on standby to effect payment once the board approved the drawdown. Staff also said the corporation had paid earlier premiums and had pursued insurance coordination with the Texas Municipal League (TML) and with bond counsel as part of broader planning for repairs and possible future bond financing tied to the property.

Board members were told the corporation is preparing a packet to transfer ownership to the city. Once the Secretary of State paperwork for dissolution is filed, staff said local-government statutes provide for transfer of remaining corporate assets and accounts to the city. The board repeatedly framed the insurance purchase as a stopgap to maintain HUD-required coverage while the transfer and any bond or repair planning proceed.

Votes at a glance: the board approved the motion to draw insurance funds from escrow (not to exceed $195,000) and authorized the chairman to sign related documents.

The board closed the citizen-comment period with no speakers and moved on to operations updates for the Hamilton Apartments.