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HomeMy WebLinkAbout1989-09-27 EHA MINUTESf • I• II. ~II, IV. ENGLEWOOD HOUSING AUTHORITY Board of Commissioners Regular Meeting Segtember 27, 1989 9 B The Regular Meeting of the Englewood Housing Authority Board of Commissioners was called to order at 6:35 p.m. on Wednesday, September 27, 1989, at Simon Center, 3333 South Lincoln Street, Englewood, Colorado, 80110, by Chairman Thomas :J. Burns. Members Present: Members Absent: Also Present: STUDY SESSION Thomas :J. Burns, Chairman R. :J. Berlin, Vice Chairman Roger Koltay, City Council Rep. Bradley L. Zieg, Commissioner Norleen Norden, Commissioner <With Prior Notice) Paul Malinowski, Executive Director Mary A. Ryan, Recording Secretary There were no subjects presented for the study session portion of the Regular Meeting of the Englewood Housing Authority Board of Commissioners held September 27, 1989. ljQI.!.Q~ IT WAS MOVED BY VICE CHAIRMAN R. :J. BERLIN TO APPROVE AS PRESENTED THE MINUTES OF THE REGULAR MEETING OF THE ENGLEWOOD HOUSING AUTHORITY BOARD OF COMMISSIONERS HELD AUGUST 30, 1989. COMMISSIONER BRADLEY L. ZIEG SECONDED THE MOTION. Ayes: Nays1 Abstained1 Absant: • Burns, Berlin, Zieg None Koltay Norden The Chairman declared the motion carried • EHA BOC Regular Meeting 09/27/89 v. VI. VII. ~ • There ware no visitors scheduled for the Regular Meeting the Englewood Housing Authority Board of commissioners held September 27, 1989. Neither were there any unscheduled visitors at this meeting. DIRECTOR'S REPORT A. B. Progra• Reports in Packet: Commissioner Bradley L. Zieg questioned the Occupancy Status Report. He wanted to know how the preferences mandated by the U. S. Department of Housing and Urban Development impacted the total number of persons shown on the waiting list needing housing. Also questioned was the total number of units leased as shown on the WAND Occupancy Activity Report. The report showed no units leased during the month of August, 1989, and the EKecutive Director explained that these units had not been leased up as tenants vacated because they were to be rehabilitated as soon as the WAND permanent financing and PBA certificates were in place. Executive Director Malinowski explained that the Project Based Assistance did not allow the EHA to displace any tenants; therefore, with the tenants already vacated in order to do the rehab the work, this situation was avoided. Narrative Report: • The Director's Narrative Report was discussed as to the subjects of the office building, WAND rental units and PBA designation, the Tenant Integrity Program, "504" Regulations regarding nondiscrimination against the handicapped, EHDC and legal opinion received from EHA's legal counsel regarding the WAND units quit-claim deeded to the EHDC from the EHA. The Commissioners expressed ·their agreement that the narrative form of Director's Report was informative and helpful. They asked that it become a regular part of the Board Meeting Packet from this point on. The Narrative Report will be attached to the Minutes of the EHA Regular Meeting held September 27, 1989, and become a part of these Minutes as Exhibit "A". DISCUSSION ITEMS, MOTIONS AND RESOLUTIONS: A. Adoption of Capitalization Policy A review of several years' minutes and files by the Executive Director revealed that the Englewood Housing Authority did not have a capitalization policy which set out when expenditures shall be capitalized as ass. rather than shown as expenses. Resolution No. 7, Ser of 1989, defined as follows: -2- . ~ EHA BOC Regular Meeting 09/27/89 • 1. None?ie_endable life of more $200.00; &q~l.2.~&nt items having a useful than one year, costing a minimum of 2. E~endable &qu!R_ment items having a useful life of more than one year costing a maximum of $200.00; 3. ~~!~rj~j3 ~D9 ~yggjj~3 items of property which <a> can be used only once; (b) are spent in use; <c> lose their identity or become an integral part of other property when put in use; or (d) items of small tools and equipment having a useful life of one year or less. Resolution No. 7, Series of 1989, resolves that nonexpendable equipment shall be capitalized as an asset and recorded in its appropriate property ledger; and, that expendable equipment and materials and supplies shall be treated as an expense and not recorded in any property ledger; and that this policy shall apply to all funds of the Englewood Housing Authority. IT WAS MOVED BY COMMISSIONER BRADLEY L. ZIEG TO ADOPT RESOLUTION NO. 7, • ERIES OF 1989, ADOPTING A CAPITALIZATION POLICY FOR THE ENGLEWOOD HOUSING UTHORITY. VICE CHAIRMAN R. J. BERLIN SECONDED THE MOTION. Ayes: Nays: Abstained: Absent: • Burns, Berlin, Koltay, Zieg None None Norden The Chairman declared the motion carried. B. Adoption of Resolution for Inventory Policy The Executive a PHA adopt agency must inventory such equipment, and explained that Director explained that HUD requires that a method of tracking inventory, and the define what is to be tracked in the as nonexpendable equipment, expendable materials and supplies. He further the EHA has been inconsistent over the years in tracking inventory thus creating problems with the property ledgers. The Executive Director further explained that the resolution, No. 8, Series of 1989, -adopting an inventory policy would define personal property for this policy as: -3- EHA BOC Regular Meeting 09/27/89 1 • .2. 3. None~endable equ!.Q_ment -items of equipment hav. a useful life of more than one year, the cost which is treated as a capital expenditure; and, E~endable equ!.Q_ment -items of equipment having a useful life of more than one year, the cost of which is not treated as a capital expenditure; and, Materials ~rrq ~Y21!.lt~~ items of property which <a> can be used only once; (b) are spent in use; <c> lose their identity or become an integral part of other property when put in use; or (d) items of small tools and equipment having a useful life of one year or less. Resolution No. 8, Series of 1989, further states that HUD does not prescribe any specific method of accounting control of items used as expendable equipment or materials and supplies. Factors such as the authority's size, organizational structure, average value of materials and supplies to be maintained in the inventory, physical facilities for storage and handling, and the administrative costs involved are to be used to determine the method of accounting control used. The Executive Director further explained that HUD Handbook 7510.1 further exempts any authority with 1. than 200 public housing units from maintaining inventory of materials and supplies. The EHA has less than 200 public housing units. Resolution No. 8, Series of 1989, would stipulate that a record of all nonexpendable equipment and expendable equipment shall be kept and a physical inventory of both shall be made at least once a year. It further stipulates that no physical inventory will be conducted for materials and supplies; however, sign-out sheets will be used for removal of materials and supplies that have been purchased in bulk for storage to maintain internal control of such items. It also sets forth that this policy will apply to all programs of the Englewood Housing Authority. tl.9I.!.9~ IT WAS MOVED BY COMMISSIONER BRADLEY L. ZIEG TO ADOPT RESOLUTION NO. 8, SERIES OF 1989, ADOPTING AN INVENTORY POLICY FOR THE ENGLEWOOD HOUSING AUTHORITY. VICE CHAIRMAN R. J. BERLIN SECONDED THE MOTION. Ayes: Nays1 Abst.-ined: Absent1 Burns, Berlin, Koltay, Zieg None None Norden The Chairman declared the motion carried. -4- • EHA BOC Regular Meeting 09/27/89 • c • • Clarification of Rehab Loan Committee Policy At the June 28, 1989, meeting of the EHA Bc,ard of Commissioners, a motion was passed to amend the cun -ent rehab loan policy so that ~11 deferred payment rehab loans would be submitted to the existing Rehab Loan Committee for review and approval prior to signing by the Executive Director of the EHA. At the August 30, 1989, meeting of the Englewood Housing Authority Board of Commissioners, a motion was passed establishing a Rental Rehab Loan Committee for review and approval of Rental Rehab Program loans consisting of Chairman Thomas J. Burns, Commissioner Norleen Norden, and the Executive Director to prevent a conflict with having the Rehab Loan Committee approving EHDC loans. After the August 30, 1989, . EHA Board Meeting, Janet Grimmett, the Rehab Financial Specialist, informed the Executive Director that some rental rehab loans involve bank loans; and although all EHDC loans are deferred loans, they do not involve bank loans. She suggested the existing RLC continue to approve rental rehab loans involving bank money, and have the new RLC review only requests fo r RRP deferred loans which would include EHDC. Thus, there would be no conflict • IT WAS MOVED BY COMMISSIONER BRADLEY L. ZIEG THAT THE EXISTING REHAB LOAN COMMITTEE CONSISTING OF THOMAS A. DINKEL, NORLEEN NORDEN, AND BEATRICE LANE WILL REVIEW AND APPROVE BANK LOANS FOR OWNER-OCCUPIED UNITS AND RENTAL UNITS; COMBINATION LOANS <BANK & DEFERRED> FOR OWNER-OCCUPIED UNITS AND RENTAL UNITS; AND DEFERRED LOANS FOR OWNER-OCCUPIED UNITS. THE NEWLY FORMED REHAB LOAN COMMITTEE CONSISTING OF CHAIRMAN THOMAS J. BURNS, COMMISSIONER NORLEEN NORDEN, AND THE EHA EXECUTIVE DIRECTOR WILL REVIEW AND APPROVE · ONLY REQUESTS FOR DEFERRED LOANS ON RENTAL UNITS. VICE CHAIRMAN R. J. BERLIN SECONDED THE MOTION. Ayes: Nays: Abstained: Absent: • Burns, Berlin , Koltay, Zieg None None Norden The Chairman declared the motion carried. -5- EHA BOC Regular Meeting 09/27/89 D. Review and Action on ARRP Loan Foreclosure On July 24, 1989, the ARRP unit at 2755 South Delaw~ Street <originally owned by the EHA and sold t~ low-income family> was sold at Public Auction by the Arapahoe County Public Trustee's Office. The unit was returned to the first mortgagee, B. A. Mortgage, for their bid of $53,079.30. The EHA holds a five-year declining lien as the second mortgage. The current balance on the second mortgage is $6,000.00. The EHA had until October 6, 1989, to file an Intent to Redeem notice with the Public Trustee's Office. The unit is a three-bedroom, two-bath unit. The EHA's property-marketing representatives, Milton and Miriam Senti, in a letter dated February 27, 1989, valued the identical unit at 2743 South Delaware Street at $36,000.00. Considering the current value of the identical unit, it was the recommendation of Janet Grimmett, Rehab Financial Specialist, to not redeem this unit. It was her further recommendation that the Board pass a motion to write off the $6,000.00 balance of the second mo i-tgage. 11QII.Q~ IT WAS MOVED BY BRADLEY L. ZIEG TO NOT REDEEM THE ARRP UNIT LOCATED AT 2~ SOUTH DELAWARE STREET AND TO WRITE OFF THE $6,000.00 BALANCE OF THE SECOND MORTGAGE ON THIS UNIT. COUNCIL REPRESENTATIVE ROGER KOLTAY SECONDED THE MOTION. Ayes: Nays1 Abstained a Absent:· Burns, Berlin, Koltay, Zieg None None Norden The Chairman declared the motion carried. E. Appointment of EHDC Board Member This item was tabled from the August 30, 1989 EHA Board of Commissioners Meeting. At the August 30, 1989 Meeting, lengthy discussion ensued ,-egarding the elimination of any potential conflict of interest or piercing of the "corporate shield" caused by the boards .of the EHA and EHDC having members in common. The issue of the EHA keeping an "arm's length" separation from the EHDC on matters such as the appointment and removal of EHDC board members was discussed at length. Possible changes to the EHDC's Bylaws through amendment to allow the EHDC to appoint and remove its own Board Members. discussed. -6- EHA BOC Regular Meeting 09/27/89 • • At this meeting held September 27, concerned the following: 1989, discussion 1. Is the bylaw change empowering the EHA with appointment and removal of EHDC board members an abdication of EHDC's responsibility under Colorado statutes on corporations? Could this provision also pierce EHDC's "corporate shield" or give concern as to a less than arm's-length relationship between the EHA and the EHDC? 2. How does the EHA ensure that properties "gifted" to the EHDC are kept in an appropriate use without losing the required arm's-length relationship between the EHA and the EHDC? The fact that one of the properties deeded from the EHA to the EHDC via quit-claim deed also contained a first right of refusal clause was discussed. The Commissioners discussed using a more specific first right of refusal document when deeding properties from the EHA to the EHDC in the future. Also questioned was whether the price c,f the property should be the same (gift price> when offered back to the EHA or legally must it be market value? The Commissioners directed the Executive Director to seek a legal opinion from the EHA's legal counsel. If legal counsel's opinion was that a quit-claim deed containing first right of refusal language was appropriate, the Commissioners asked that legal counsel draft up the actual document language for their review. The Commissioners asked that the Executive Director communicate to legal counsel that there is some urgency involved since there is currently a vacancy on the EHDC Board and because the WAND properties are about to be transferred fr·om the EHA to the EHDC. The Executive Director informed the Commissioners that two names had been discussed for the vacancy on the EHDC board: Richard S. Wanush, City of Englewood Director of the Department of Community Development, who is very knowledgeable on housing issues; and Randie Barthlome, City of Englewood Director of the Department of Administrative Services, who was a multi-community city manager in southeast Colorado and was involved in the rehab program in that part of the state. No decisions were made on filling the vacancy at this time. -7- EHA BOC Regular Meeting 09/27/89 VIII. F. Review of Council Representative Roger Koltay's Let. Concerning Orchard Place. Council Representative Koltay stated his written communication to the Executive Director regarding the concerns of residents at Orchard Place over living conditions at that building was a compilation of his personal thoughts on this subject. Council Representative Koltay stated he felt the manager of Orchard Place, Guy Blasi, was doing a fine job. Councilman Koltay also stated he felt the use of an outside events coordinator would be beneficial. Executive Director Malinowski stated he would direct Guy Blasi to contact LuAnne Mickelson, Malley Center Supervisor, to discuss the possibility of her acting as an outside events coordinator for Orchard Place Residents. 6. Write-Down of Equipment Inventory. This item was tabled to the next meeting pending determination of actual dollar amounts. FINANCIAL REPORTS A. B. Budget Expenditure Reports The Executive Director pointed out the new format us~ footnote numbering on those line items requiring explanation in the Budget Expenditure Report Notes. 1988 Year-End HUD Statements The Executive Director asked if there were any questions on the Balance Sheet for EHA Public Housing Project C048002/003. There were no questions. The Statement of Operating Receipts and Expenditures for EHA Public Housing Project C048002/003 was next discussed concerning the amounts budgeted versus the amounts spent. The reasons why certain line items were over-spent were discussed briefly. Discussed at length was the Operating Reserve line item. The EHA's Low-Rent Public Housing Progra• operates strictly on a "cash'' basis, and this line item figure is arrived at by subtracting income from .expenditures. This line item shows a loss in 1988 of $26,702 in this program. The impact of that loss is that the program's Operating Reserves have been reduced to $56,552.00. This represents 53Y. of the Maximum Operating Reserve allowed and a dwindling of the Operating Reserves for this program. HUD doe~ not .want to see Operating Reserves for Low-Rent Public Hou Programs drop below 40%. -8- EHA BOC R•gular Meeting 09/27/89 • • • Discussed were negative rents and minimum rents. The requirement of PHAs · to lower from BOY. to 50% of median income their guidelines in determining eligibility for low-rent public housing; the effects of the 1973 Brooke Amendment in eliminating of minimum rents or flat-rent amounts and the subsequent basing of rents on percentages of income; and the Federal Preference Rule which recently came into effect were discussed as to their impact on Low-Rent Public Housing Programs' Operating Reserves. The Executive Director pointed out that at the Budget Meeting held at the end of FY '88, he had presented a three-year projection which indicated that within that time period the Operating Reserve would be below 40%. Discussion had taken place then concerning possible remedies. Neasures to prevent the EHA's Low-Rent Public Housing Program's Operating Reserves from dropping below 40Y. of its Maximum Operating Reserves allowed were discussed. Use of Simon Center Reserve funds, the payment (or partial payment> by Simon Center of the PILOT Payment, the application by the EHA to HUD for subsidy payments for the Public Housing Program and the impact of applying for a HUD operating subsidy for this program were discussed • Commissioner Bradley Zieg felt that the dwindling Operating Reserves for the EHA's Low-Rent Public Housing Program necessitated the EHA looking closely at this situation and possible remedies. He also felt that this issue should be handled separately from the 1990 Budget. The Executive Director stated that another issue which would have to be addressed is whether the 1988 deficit was caused by some costly "onetime" items such as the replacement of the backup generator at Orchard Place. Why the actual cost of electricity was so much more than budgeted was another area the Commissioners felt needed to be researched. -9- EHA BOC Regular Meeting 09/27/89 The Executive Director informed the Commissioners that applying for and receiving an operating subsidy paym~ from HUD would mean substantially more conditions controls by HUD. This would include the submission t HUD of budget revisions during the fiscal year any time a line item goes over the budgeted amount. Deadlines when year-end financial documents such as the ones presented here must be to HUD would be imposed. The Executive Director stated that this could mean the submission of numerous budget revisions and an enormous amount of staff ti,ae and paper work. Commissioner Bradley Zieg asked if the cost effectiveness of receiving an Operating Subsidy would not justify the extra staff time and paper work. The Executive Director stated he would look at this issue and research it with PHAs who are now receiving such a subsidy. The year-end financial documents for the Section 8 Existing Certificate Program were discussed as to the Operating Reserve in which, during fiscal year 1988, there was a net gain. The Executive Director pointed out that the Operating Reserve was a reserve of the Administrative Fee earned by this program. The year-end financial documents for the Section 8 Existing Voucher Program were discussed as to - Operating Reserve in which there was also a net g during fiscal year 1988. The Commissioners questio1 why there was such a large difference between the Operating Reserves in these two programs. The Executive Director stated that the length of time the two programs had been in existence and the different formulas used in computing the administrative fee earned made the difference in the two Operating Reserves. The Executive Director explained that the Operating .Reserves for fiscal year 1989 will probably not show as large a gain as they did in fiscal year 1988 because the formula for calculating administrative fees earned has been changed <two-bedroom fair market rents were lowered). Commissioner Zieg questioned to what uses the Operating Reserves from the Section 8 Existing Programs could be put. The Executive Director explained that HUD guidelines dictate exactly what PHAs can and cannot use -these reserve funds for. Executive Director Malinowski stated that he would supply the Board with the information on the allowable uses of these reserve funds. Commissioner Zieg felt strongly in the case of non-profit organizations such as the Englewood Housing Authority that monies not spent were services JIIL provided. ~ -10- EHA BOC Reoular Meeting 09/27/89 IX. • Executive Director Malinowski stated that HUD regulations indicate that the intent of the Section 8 Existing Operating Reserve is to ensure the operation of that program in the future in the event administrative funds are not available to administer the Section 8 EKisting Program. Co•missioner Zieg asked the Executive Director where the Section 8 Ex. Operating Reserves were being kept now. The Executive Director replied that these reserve funds were in a market interest account until the completion of the year-end financial documents. Commissioner Zieg suggested investing in a higher-interest-paying CD now that there was an accurate figure for reserves. The audit for fiscal year 1988 was briefly discussed as to the progress being made on it. The Executive Director informed the Commissioners that Simon Center is still in the process of being audited. The extra time required for this program's audit is because of the complexity of those books due to the number of different funds which were run through that program. The Executive Director also stated that when the auditor, Mr. C. 3. Netherton, attends the Board Meeting to present the audit, he may be asking for an increase in payment over what was originally budgeted. Simon Center's funds were extremely complex although the Executive Director pointed out that all auditing bidders were encouraged to review the EHA's books before submitting a bid. Commissioner Bradley Zieg stated that he had a strong sense of confidence in the work that has been presented by Executive Director Malinowski on the Budget Expenditure Reports for FY '89. Chairman Burns stated he echoed Commissioner Zieg's confidence in the work done by the Executive Director and further stated that staff had done a yeoman's job in getting the accounting books for the EHA straightened out. CONSENT AGENDA The newspaper articles from the ~nql~~~~q ~~Qtln~l concerning the WHERE mobile home parks were noted with little discussion • -11- EHA BOC Regular Meeting 09/27/89 x. XI. GENERAL DISCUSSION A. Coamissioners' Choice • Nothing was presented for discussion by the EHA Commissioners present at this meeting. B. Director's Choice Nothing was presented for discussion by the EHA Executive Director under this portion of the agenda. ADJ'OURNl"ENT 11 Q I !. Q ~ IT WAS NOVED BY COUNCIL REPRESENTATIVE ROGER KOLTAY TO ADJ'OURN THE REGULAR MEETING OF THE ENGLEWOOD HOUSING AUTHORITY BOARD OF COMMISSIONERS HELD SEPTENBER 27, 1989. • -12- • • DIRECTOR'S REPORT September 27, 1989 Because of the volu111& of items I wanted to bring you up-to-date on, I decided to put those items in written format for inclusion in the minutes and siaply ask you at the meeting for questions on this report. ' Th• repainting of the exterior of the north wall with elastomeric has been completl!d. Two coats were applied. It appeared the work was done in a professional manner. We have not had a major rainstorm since application of the elastomeric, so it is difficult to assess the extent of the project's success. The only problem during this task was some breaking of the sidewalk by one of the contractor's trucks. We withheld some money from their final payment until they had a concrete contractor replace the sidewalk. This has also been completed. Final cost was $5875.00. The new electric-eye doors have been installed. They are a substantial improveaent over the old heavy doors, especially for wheelchair-bound individuals. Final cost was $6098.00. I never received a final written report on the mediation from the Center for Dispute Resolution, but I also never received a bill from them. Simon C•nter ~ number of the EHA ~enter. The event staff played chef at an outdoor barbecue at Simon was well-attended by Simon Center residents. • Unfortunately, Orchard participating; hopefully, Office Buildinq Place residents were not interested in we can do a barbecue with them at a later date. Working drawings should be complete this week by Robert Herndon & Associates. As you saw from Brad's sketch, we will be doing a fair amount of wal-1 moving. We also spent a good deal of time on the design of the bathrooms. Our .goal, of course, was to have separate men's and women's handicap-accessible bathrooms. After several design options, it became apparent that we could either have one completely-accessible bathroom that met ANSI standards but was bi-gender, or two somewhat-accessible bathrooms, one for each sex. l reviewed these two options with Brad, and it was his opinion that the latter option was preferable. We then had the architect do a final design based on that assumption. He came back to us concerned that a so,newhat-Accessible bathroo• might not be accessible enough. Also, the City's Building Department Division Head and Code Administrator, Walter <Walt) Broditski, said he could not approve the drawings as submitted Exhibit A. Director's Report EHA BOC R•oular Meeting 09/27/89 bacau .. they neither met ANSI nor UBC standards for handicap-accessibl. bathrooms (the latter being more stringent>. However, he said he woul •ntertain a request for a waiver through the Board of Appeals. Since we wer• a day from the deadline date to be on the next Board of Appeals ag•nda, we immediately made an application for a waiver. We th•n took the d••ign one step further and framed a mock-up of the bathrooms as drawn as somewhat accessible. This was done in the new offic• building. We asked an Orchard Place resident who is wh•alchair-bound to negotiate getting around in the mock-up bathroom. He had a v•ry difficult time making any turns. In addition, inadvertently, ha put his feet through the imaginary wall several times. When asked if he preferred the moderately-accessible bathroom to a bi-gender, accessible bathroom, he replied, "When I have to go, I want to be able to go as fast as I can.• and he didn't care that it was bi-gender. Thus, we have told the architect to design at least one handicap-accessible bathroom meeting ANSI standards. · We have simultaneously done our advertising in the Daily Journal for contractors to bid the work and become pre-qualified. We will allow ten days for bidding from the day we have the drawings, probably September 26th. We are bidding the work in two packages: one to general contractors for all interior work including electrical, drywall, painting, etc., and another package for the exterior handicap ramp and new stairs. The asbestos removal is complete. New ceiling tiles were installed on t. second floor at a cost of Sl,600.00 after obtaining five bids (this w the lowest>. Wa have also begun to make the major mechanical system repairs (a motor failure moved that date up considerably). There is no final cost yet, but this round of work has cost approximately $3,000. A. Rental Units The firm commitment financing was approved in August by CHAFA, and we were included in their bond sale. We received the documents on September 21, 1989, the issue of the pledging of CDs was mentioned as a condition but only generally, so I believe we'll be able to negotiate the format later. HUD's award of Project-Based Assistance <PBA> units has been a maddaning experience in frustration and continues to hold up the actual rehab of the units. We have been caught in the middle of all th• HUD scandals as well as suffered from a spillover effect of D•nver Housing Authority's trouble. Last month, it looked like we were close to getting the nine PBA units. Then, HUD pulled back and said the approval process would be in two steps rather than one1 there would be a separate approv. process of the nine new certificates, and then a separate approv process of the project-based designation. -2- Director'• Report EHA BOC Regular Meeting 09/27/89 • B • • c. W. were told that the first approval process was complete and we should b• receiving our written confirmation letter shortly. So far, the letter has not been received. I then submitted to HUD our inforaation to tie th• project-based designation to the nine units. They reviewed it quickly but asked for a substantial amount of new inforaation, particularly on the EHDC. HUD has become nervous about non-profit corporations started by housing authorities <Aurora and Denver have particularly come under recent DIG scrutiny>, and they allegedly wanted this information to ensure there is no interest by the EHA in the EHDC's properties. It is difficult to judge if HUD is trying to find anything it can to prevent PBA from being tied to non-profit corporations, or if they are really willing to make PBA N<>rk. The recent HUD scandals have had the effect of practically paralyzing the approval process of new awards as many HUD officials are now paranoid of approving something that may come back to haunt thea. I hand delivered all the new information HUD wanted on September 18, 1989, and will check back with HUD before the Board meeting. Interestingly, HUD has only 20 days by federal law to review my initial application on the project-based designation, so they must respond by October 2, 1989. Ownership Units Construction continues to progress on the two remaining units. They are slightly behind the original schedule but still should finish within schedule. The buyers of 3322 South Pennsylvania are still interested but have had some difficulty clearing up an old credit problem. We have no buyer for the other house, so we will do some marketing. Nodular Units C~eative Living has all but refused to communicate with us concerning warranty work on the six existing units. We have obtained firm bids on all warranty work remaining and sent them a final letter <several have been sent> giving them one last opportunity to make the repairs. This work totals almost $5,000. If we do not hear back positively from Creative Living, I will place this item on the October board meeting agenda as a discussion/action item. I have finally r~ceived a written opinion from Jim Wagenlander regarding my concern over the three properties in WAND that were quit-claim deeded fro• the EHA to the EHDC in late 1987 and early 1988 but were never recorded. His recommendation is contained in the attached letter. I will • be discussing the accountinQ implications of this with our auditor and onsulting accountant to determine how we will show this on the books. -3- Director's Report EHA BOC Regular Meeting 09/27/89 8YQI.I -· Th• auditing firm of Denton Netherton has spent a good deal of time in our offices working on the 1988 audit. We will be having a meeting before the Board tRReting to assess where we are and review a number of questions that we hava and they have. Each staff division has submitted draft work plans to me in preparation for the 1990 budget. These are our goals for next year that in turn will determin• our requested budget amounts. We are revising the drafts and will submit the final plans to you along with the proposed budget, probably in October or November. TENANT jNJE§RJ TY PROGRAM HUD has developed a new training program called the Tenant Integrity Program that is designed to reduce potential fraud in federally assisted housing programs. I sent our Leased Housing Manager, Geula Sherman, to the training Session HUD recently conducted. A number of changes were suggested by HUD, particularly in the way we initially take applications. Because we will now have separate interview rooms in the new office building, we will be able to implement these changes that we feel will be very worthwhile. A memorandum from Geula is attached that details some of these changes in procedures. :504 RE6ULATI0NS • HUD recently published regulations and a handbook on implementing Section ~04 of the Rehabilitation Act of 1973, as amended, that states in part, "No otherwise qualified individual with handicaps in the United States shall, solely by reason of his handicap, be excluded from the participation in, be denied the benefits of, or be subjected to discrimination under any program or activity receiving federal financial assistarice ••• " from HUD. One of the requirements of this program is to have interested groups or individuals review all agency policies and procedures and leases to determine if · they comply with the regulations. While discussing the logistics of this requirement with staff, we discussed staff's frustration in feeling inadequate in communicating with mentally impaired individuals. We have noticed a substantial increase in the number of such applicants in the last year due to the federal preferences. As a result of this need and the ~04 self-evaluation requirement, we are setting up a short-term advisory group to give us technical assistance as well as perform the review. We've identified key groups/individuals t~at represent physically handicapped, mentally ill, and developmentally disabled persons. We are excited about this project and believe we are one of the first agencies in the state to undertake such a self-evaluation. Guy Blasi and Yvonne Gonzales are coordinating this affort. -4-• Diractor's Report EHA BOC Regular Maeting 09/27/89 .&R§~6 Elaine Wahlquist resigned as Housing Specialist effective August 23, 1989. Elaine had a part-time position here and resigned to take a full-ti .. position with the 3efferson County Housing Authority. A dacision of whather or not to refill the position will be made in conjunction with develop .. nt of the 1990 budget. The City of Englewood has completed its proposed 1990 budget. As part of that budget, the Depart,nent of CoflNIIUnity Development proposed the alimination of the contractual Housing Rehab Specialist position, now held by Steve Ozburn. Steve would have been laid off as of 3anuary 1, 1990. This would have baen the only actual layoff of an employee in the City. Fortunataly for Steve, a position opened up as a Code Enforcement Officer in the City. Steve accepted the position after it was offered to him. He begins that position October e, 1989. Steve's expertise will be greatly missed. The Community Development Department has agreed to allow us to use Steve's services when the WAND rental project gets under construction. In other Housing Division moves drawn up by Rich Wanush in the budget, .Janet Gri111111ett will become a "permanent" City employee with full benefits after seven years as a "temporary" employee. She will answer more directly to the Executive Director and the Community Develop111ent Department Director. Robb Short's classification will change from Rehab Supervisor to Rehab Specialist due to the other restructuring. He will • emain at his current pay level. -5- •