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HomeMy WebLinkAbout1989-05-31 EHA MINUTES, I. II. • 11 I. .. 9 B DRAFT DRAFT DRAFT DRAFT DRAFT DRAFT ----- ENGLEWOOD HOUSING AUTHORITY Board of Commissioners Regular Meeting CALL TO ORDER The Regular Meeting of the Engle..,ood Housing Author· i ty Board of Commissioners ..,as called to order at 7:20 p.m. on Wednesday, May 31, 1989, at Simon Center, 3333 South Lincoln Street, Englewood, Colorado, 80110, by Chai,·man Thomas J. Burns. ROLL CALL Members Present: Members Absent: Also Present: MINUTES R. J. Berlin, Vice Chairman Roger· Ko 1 tay, City Counc i 1 Rep. Nor leen Norden, Comm1 ss .i.oner Bradley L. Zieg, Commissioner Thomas J. Burns, Chairman <With prior notice) Paul Malinowski, Executive Director Mary A. Ryan, Recording Secretary .Janet Grimmett, Rehab Finance Specialist Barbara Laube, Executive Director, WHER~ Sr. Lillian Murphy, Mercy Housing, Inc. Ms. Fern Portnoy, Baldwin Financial Group Ms. Karen Burn, Esq. , Moye, £:ii l es, et al Various persons involved with WHERE Permanent Financing Plan Correct.ion to motion at top of Page 2, addition of second by Commissioner Norden. M O T I O N IT WAS MOVED BV COMMISSIONER NORLE~N NORDEN TO APPROVE AMENDED, OF THE REGULAR MEETING OF THE ENGLEWOOD HOUSING OF COMMISSIONERS HELO APRIL 26, 1989, AS PRESENTED. SECONDED THE MOTION. THE MINUTES, AS AUTHORITY BOARD BRADLEY L. ZIEG Ayes: Nays: Abstained: .sent, Berlin, Koltay, Norden None Zieg Burns The Vice Chairman declared the motion carried EHA BOC Regular Meeting 05/31/89 IV. v. VISITORS There were no the Englewood "ay 31, 1989. visitors scheduled for the Housing Authority Board of DIRECTOR'S REPORT A. Program Reports: regular meeting o~ Commissioner s h e ld Briefly reviewed with little discussion. B. Follow up on Orchard Place Mediator: Three mediation services were contacted: The Center for· Dispute Resolution, the University of Denver School of Law Mediation Center, and Lorraine Hagar·. Ms. Ha~1ar declined to offer her mediation services after hearing the situation because she 1·e1t she would not IJe able to help us. The Executive Director interviewed the DU Law School Mediation Center and the Center for Dispute Resolution. Although the DU Ldw School charges nothing for its ser·vices, the Executive Direc::tor felt they would be an inappropriate c:hoice since they specialize in landlord-tenant disputes, which is not the situation at Orchard Place. The Center for Dispute Resolution charges for their· services, but offered to cut their fe. in half and charge the other half of the fee as pro bon work. The Executive Director statecJ he had chosen the Center for Dispute Resolution to do the mediation work between the tenants of Orchard Plac::e because their representative, Jean Bedell, is presently doing graduate wor·k in gerontology at the Unive,-sity of Northern Colorado, has a nursing degree, and has worked with .-i home health agency primarily with the elderly. She is on the board of directors of a retirement residence in Boulder .~nd has had the opportunity to mediate a number of cases between older people. C. Update on Status of Office Building Contract --3460 S. Sherman Street. The Executive Director informed the Commissioners present that he had made the offer to purchase the building at 3460 5. Sherman Street as discussed at the last Board Meeting. The offer included two pages of contingencies including radon and asbestos testing, due diligence on the part of the EHA, and structural, heat, boiler, and air conditioning systems inspections. The offer was also contingent upon a favorable opinion from legal and bond counsel on the EHA's ability to use Sim. Center reserve funds to put a down payment on thi building, do the initial wor·k needed to get EHA employees into this building, and make mortgage payments. -2- EHA BOC Regular Meeting 05/31/89 • • C. Update on Status of Office Building Contract ---::1460 S. D. Sherman Street. The results uf the radon testing were very good; asbestos testing showed a need to replace ceiling tiles ; structurally, the building is above standard; the heat, ventilation, and air conditioning system <HVAC> needs to be replaced almost immediately. The Englewood Housing Authority's lE~gal counsel, Wagenlander & Associates, had obtained an opinion of bond counsel from Tom Falacienski of Lamm & Edstrom. They advised the EHA that the Authority can use excess funds from Simon Center's gross income for purposes unrelated to Simon Center or i . ts bonds. The only restriction is that such purposes must be lawful. The Executive Director asked if the Board of Commissioners would feel comfortable with him negotiating with the sellers on the replacement of the asbestos-containing ceiling tiles, and of the HVAC system. Mr. Malinowski stated he would like t;o !:>ee the owners take care of the ceiling tiles and split the cost of the HVAC system, possibly by reducing the sales price accordingly. It was agreed upon by the commissioners to do a telephone poll to approve the proposal the Executive Director will be making to the selle,·s on these items once all firm cost estimates are in. Rehab Survey The Executive Director stated that the EHA had conducted a survey of eve,-yone whose home was ,-ehab i 1 i ta ted within the last four years under the City uf Englewood's Housing Rehabilitation Loan Program. A total of 88 surveys were mailed. No more than one survey was sent to any one owner even if they had received more than one loan. No surveys wer·e sent to the Englewood Hnu~ing Development Corporation, a non-profit corporation founded by the Englewood Housing Authority, due to the obvious potential bias. Of the 88 surveys, 52 (59%) were returned. This is an excellent rate of returned surveys as a 25Y. return is generally regarded as totally acceptable for direct-mail surveys. Generally, program and When asked the comments were very favorable to the exceptionally favorable towards the staff. the overall level of satisfaction with the Rehab Loan Program, 62% stated they were very satisfied, 17Y. were somewhat satisfied, lOY. werE! somewhat dissatisfied, and BY. were very dissatisfied. Ninety percent of the respondents said the Rehab staff was courteous. Only one respondent (2%) said staff did not explain the progr·am clear 1 y. -:.3- EHA BOC Regular Meeting 05/31/89 VI. D. Rehab Survey Timeliness and quality of c ontractors' workmansh i p appear to be the two major-conLe,-ns. Problems developing after the LOnstruction wa s c ompl e ted wa s al5o a problem. When asked what they would have done if the Rehab program had not been available, Lh e majority o f respondents (58%) sai.d they would not h.ave ma de til e improvements and s tayed in thc~ir homes. fhe .i nformat 1011 received is being analyzed f 'or ways to improve thP program, particularly in the area o f c ontractor workmanship quality. The commissioners wer e very gratified to know that the Rehab Loan Program is appreciated and wanted the personnel files of the Rehab staff to receive written communicat i on expressing appreciation for the fine jobs they had done. E. Sale of 3349 South Pennsylvani rl and 431 E. G i rard Ave. The Executive Director informed the l::HA Board ot Commissioners that 431 East Girard ha~ closed on Thursday, May 25, 1989, and 3349 South Pennsylvania hrld closed on Friday, May 26, 1989 . .Q_!§f.Y§§.!Q~ ITEMS, MO T i ONS AND RESOLUTIONS: A. WHERE Permanent Financing <With representatives o various involved groups present to give a presentatior on their proposal.) Lengthy presentation and discuss ion ensued rega r d i ng a plan to provide WHERE with permanent financ i ng through municipal leas ing. Ms. Fern Portnoy of t he Ba l dw i n Financial Group and Ms. Barbara Laube, Execut i v e Director ot· WHERE, informed the Commissioner s that CHAFA and two private part i es had done the original acquisition loan for WHERE, but the group was now seeking permanent financing and time was of the essence now as their loans were either past due with dn extension from the lender, or coming due shortly. Th e principal advantage of a municipal leas e, they explained, is its tax-exempt status thus making the loan lower in interes t than market -rat e . Accord i ng lo Ms. Portnoy, th~ main roll of the EHA would be to ,-ev i ew w•~RE's p r oject finances. -4-• EHA BOC Regular Meeting 05/31/89 • A. WHERE Permanent Financing A related item was also discussed, i.e., the mechdnism for providing rehab loans to the mobile homes . fhi s ha s been funded for two years under the CDBG program and will continue with the recently received fund i ng. No specific way of making loan repayments has ever been set, however, and staff felt this should be dealt with in conjunction with the permanent financing. Another topic discussed was the issue of property taxation. There was some concern expressed by the Board that this arr·angement would result in property ta>< exemption of the land. Ns. Por-tnoy stated the proposal built in a payment in lieu of taxes to the City of Englewood in an amount equal to that which the City is cur-rent 1 y receiving. Nr. Na l i nowsk 1 suggested this amount could be relative every year rather than the same amount to keep up with rising assessments or mi ll levies. Janet Grimmett, Rehab Financial Specialist, stated that Mercy Housing, Inc. wants to purchase the land only and not the mobile homes, and have the tenants own their own mobile homes. Ns. Grimmett also expressed some concern about who would be servicing the rehab loans out on the mobile homes. She stated that due to the somewhat transient nature of the mobile home parks, the Joans were difficult to collect on. Her proposal was to have WHERE becoml! the lender o-f the rehab loan funds to r-ehab the mobile homes, or have the EHA be the lender and hire WHERE to service the loans. Bradley Zieg felt this was a separate issue that should not hold up the permanent financing proposal at this meeting. He felt it c ould be dealt with at the time of review of the lease documents. N O T I O N IT WAS MOVED BY BRADLEY L. ZIEG THAT THE ENGLEWOOD HOUSING AUTHOHITY WHOLEHEARTEDLY APPROVE THE l"IUNICIPAL LEASE AS A FINANCING MECHANISM FOR LOW-INCOME HOUSING. COUNCIL REPRESENTATIVE ROGER KOLTAY SECONDED THE NOTION. Ayes: Nays: Abstained: Absent: • Zieg, Koltay Norden Berlin Burns The Vice Chairman declared the motion carried • -5- EHA BOC Regular Meeting 05/31/89 M O T I O N IT WAS MOVED BY BRADLEY L. ZIEG TO GIVE CONDITIONAL APPROVAL TO ENTER INT- A MUNICIPAL LEASE BETWEEN THE BALDWIN FINANCIAL GROUP, MERCY HOUSING, INC. AND THE ENGLE.WOOD HOUSING AUTHORITY IN ORDER TO SECURE PERMANENT t · lNANClNG FOR WHERE PENDING Et-IA LEGAL COUNSEL REVIEW AND APPROVAL OF THE: DUCUMENlS. NORLEEN NORDEN SECONDED THE MOTION. Ayes: Nays: Abstained: Absent: Berl in, Kol tay, Nor·den, Zieg None None Burns The Vice Chairman declared the motion carried. Council Representative Koltay stated for the record that some problems have been recognized by the EHA Board of Commissioners and the EHA Executive Dir·ector and that these problems will be looked into within the next thirty days by the Executive Director and EHA legal counsel. The EHA Board of Commissioners also wanted these minutes to reflect that they have given direction to the EHA's Executive Director to give WHERE direction on resoJving the rehab loan debt i ncur·red to r·ehab mobile homes i- WHERE' s three locations. B. Ratification of Telephone Poll -Sale of 431 East Girard Avenue. Commissioner Norleen Norden wanted these minutes to reflect that the reason she had voted "No" on the sale of 431 East Girard Avenue to this particular buyer· was because one of the reasons the EHA had put these units on the mar·ket was to provide housing for-low-income persons, and rather than waiting the stipulated 120 days, the EHA had made a "business deal" rathPr· than a moral and ethical judgement and had the unil been on the •arket for the full 120 days, it might have been sold lo a low-income family. -6-• EHA BOC Regular Meeting 05/31/89 • Council Representative Koltay wanted to state for the record that he felt that this Board should attempt tu limit the use of telephone polls to resolvE~ issues as it greatly encourages a one-on-one conversation rather than a group discussion of issues. Executive Director Malinowski concurred and stated he did not feel comfortable with telephone polls and would prefer alternative means in order to resolve issues. Commissioner Norden suggested a telephone conference call. M O T I O N IT WAS MOVED BY COMMISSIONER NOR[)EN TO RATIFY THE TELEPHONE POLL CONDUCTED ON MAY 3, 1989, ACCEPTING THE OFFER TO PURCHASE 431 EAST GIRARD AVENUE FOR $75,000.00, RECEIVED FROM ALICE MIKKELSON THROUGH THE ENGLEWOOD HOUSING AUTHORITY'S LISTING AGENT, MIRIAM SENTI. COUNCIL REPRESENTATIVE KOLTAV SECONDED THE MOTION. Ayes: Nays: Abstained: Absent: • • Berlin, Koltay, Norden, Zieg None None Burns The Vice Chairman declared the motion carried • C. Construction Contracts for 3320/3322 South Pennsylvania. The Executive Director informed the Board of Commissioners that the Rehab Supervisor, Robb Short, had put together some figures for a "stick-built" unit with the EHA acting as general contractor. Sweat equity on the part of the homeowners (perhaps in the place of a down payment) with technical work being performed through subcontractors was discussed. The Executive Director stated that the cost take-off prepared showed that the EHA could come under Creative Living, Inc.'s price quotes for the plans submitted for 3320 and 3322 South Pennsylvania. Utilization of local mater·ial suppliers and subcontractors both for economic and logistic purposes was discussed. Disappointment in the level of Creative Living, Inc. 's service under their warranty was also discussed. lt was pointed out that the EHA would not actually be doing any of the work; we would simply be coordinat1ng work done by local subcontractor·s. -7- EHA BOC Regular Meeting 05/31/89 A. Commissioners' Choice M O T I O N ------- IT WAS MOVED BY BRADLEY ZIEG TO REAFFIRM THE FOLLOWING SALES CONTRACTS FUR THE TWO ARRP HOME SALES IN 19B7, INCLUDING THE USE OF A ZERO -PERCENT DECLINING BALANCE LIEN FOR A SECOND MORTGAGE TO BE USED AS A DOWN -PAYMENT IN WHICH 20% OF THE PRINCIPAL BALANCE WOULD BE FORGIVEN AT THE END OF EACH YEAR FROM THE DATE OF THE LOAN UN1IL AT THE END OF FIVE YEARS fHE ENTIHE PRINCCPAL BALANCE WOULD BE FORGIVEN. NORLEEN NORDEN SECONDED THE MOl"ION. B!?!?B~§§ 3030 s. Galapago St. Englewood, Co 2755 s. Delaware St. Englewood, Co Ayes: Nays: Abstained: Absent: PURCHASER ----·------ Mary A. Ryan Neal Parker & Wanda Parker SALE PRICE -----------· $57,000 $59,000 Berlin, Koltay, Norden, Zieg None None Burns 2ND MTG AMNT _______ ... _ ----- $10,000 $10,000 The Vice Cha1.rman dee lared the mot 10n car-r ied. M O T I O N CLOSING DArE --·---·--- 03/27/87 02/23/87 • IT WAS MOVED BY BRADLEY ZIEG THAT THE ENGLEWOOD HOUSING AUTHORITY BOARD OF COMMISSIONERS WAS AWARE AT THE TIME OF SALE. OF 3038 SOUTH GALAPAliO STREE.::1, THAT THE PURCHASER, MARY RYAN, WAS A HOUSING DIVISION EMPLOYEE. AT THE TIME, AND THEY CONCURRED THAT A SALE TO HER WAS ACCLPTABLE. R. J. BERLJN SECONUEO THE MOTION. Ayes: Nays: Abstained: Absent: Berlin, Koltay, Norden, Zieg None None Burns The Vice Chairman declared the motion carried. -10-• EHA BOC Regular Meeting 05/31/89 M O T l O N IT WAS MOVED BY BRADLEY L. ZIEG TO ADOPT RESOLUTION NO. 5, SERIES OF 1989, AUTHORIZING THE "CAPITALIZATION" OF AN OFFICE BUILDING FUND. COUNCIL REPRESENTATIVE KOLTAY SECONDED THE MOTION. Ayes: Nays: Abstained: Absent: VII. VII I. • Berlin, Koltay, Norden, Zieg None None Burns The Vice Chdirman declared the motion carried. FINANCIAL REPORT --------------·- There are no financial reports available for the month o1 .- April, 1989, due to the pending year-end closing of 1989. CONSENT AGENDA ------------- The complaint procedure presented here was for information purposes only and the Commissioners and the Executive Director wanted to wait until after the upcoming mediation sessions wiLh the Orchard Place tenants to adopt the proposed procedure. GENERAL DISCUSSION ----------------- A. Commissioners' Choice The following three motions were made based on discussions held with the Englewood Housing Authority auditor, Mr. C. J. Netherton of Denton Netherton during the study session prior to the Board meeting. The first two motions clear up prior Authority action taken in 1987 while the third motion would allow for closing out the 1987 audit's adjusting journal entries • -9- EHA BOC Regular Meeting 05/31/89 A. Commissioners' Choice M O T I O N IT WAS MOVED BY BRADLEY ZIEG TO WRITE OFF FROM THE SECTION 8 EXIS T ING CERTIFICATE FUND A $12,008.S-l ACCOUNT PAYABLE TO THE CITY OF ENGELWOOD IHAT HAD PREVIOUSLY BEEN SETTLED AND FROM THE SIMON CENTER FUND AN $8,315.93 ACCOUNT PAYABLE TO THE CITY OF ENGLEWOOD THAT ALSO HAD PREVIOUSLY BEEN SETTLED. IT WAS FURTHER MOVED TO TRANSFER $2, 826. 11 FROM SI MON CENTER TO Tl-I E PUBLIC HOUSING FUND TO CORRECT THE DISTRIBUTION MADE IN THE REPAYMENT OF T HE : SETTLEMENT WITH THE CITY OF ENGLEWOOD. R. J. BERLIN SECONDED THE MOTION. Ayes: Nays: Abstained: Absent: Berlin, Koltay, Norden, Zieg None None Burns The Vice Chairman decldred the motion carried. B. Director's Choice Nothing was presented by the E xecutive Director f or discussion at this point of the meeting. ADJOURNMENT ----------- M O T I U N IT WAS MOVED BY COMMISSIONER NORLEEN NORDEN TO ADJOURN rHE REGULAR MEETING OF THE ENGLEWOOD HOUSING AUTHORITY BOARD OF COMMISSIONERS HELO MAY 31, 1989. Thomas J. Burns, Chairman __ J_// _Lk=--------- Mary A~Recorc;ang Secretary • -11 -