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HomeMy WebLinkAbout1989-10-25 EHA MINUTES,,_ . ' • I. I I. • III. • ENGLEWOOD HOUSING AUTHORITY Board of Commissioners Regular Meeting October 25, 1989 q B The Regular Meeting of the Englewood Housing Authority Board of Commissioners was called to order at 5:45 p.m. on Wednesday, October 25, 1989, at Simon Center, 3333 South Lincoln Street, Englewood, Colorado, 80110, by Chairman Thomas J. Burns. ROLL_CALL Members Present: Members Absent: Also Present: Thomas J. Burns, Chairman R. J. Berlin, Vice Chairman Roger Koltay, City Council Rep. Norleen Norden, Commissioner (until 6:35 p. m. > Bradley L. Zieg, Commissioner Norleen Norden (After 6:35 p.m.> Paul Malinowski, Executive Director Mary A. Ryan, Recording Secretary Commissioner Norden gave a history of the Project-Based Assistance CPBA> Program. She detailed why the program had originally been started by HUD and how CHAFA had become involved in the program. She also detailed how the recent scandals involving HUD affected the PBA program and in turn the EHDC being designated a PBA recipient. Lengthy discussion concerning PBA covered what the regulations required; the scrutiny that PHAs might come under by designating their non-profit housing corporations as recipients of PBA certificates; the discussion Executive Director Malinowski has had with HUD's legal counsel in Denver concerning HUD's interpretation of the "arm's length" relationship a PHA must have from its non-profit corporation; what the Director of the Section 8 Program for HUD, Madeline Hastings, had to say about HUD reviewing owners who are selected by a PHA to receive PBA. The Executive Director stated that there were only four things HUD was supposed to look for in reviewing applications for PBA designation: EHA BOC Regular Meeting 10/25/89 Those four things are: a. Total number of prc,gram; units in the Sectic,n 8 Certific. b. The total number of units for which the PHA is requesting approval to attach assistance; c. The number of units by unit size to be assisted from each funding source <i.e., project award); d. Estimated rehab periods and termination dates for HAP contracts to be executed for project-based subsidies and the ACC termination date of each funding source for each HAP contract. Also discussed was if the EHA was obligated to go forward with the PBA. The Executive Director stated the EHA was not obligated to go forward with the PBA, but that it was at this time an integral part of the CHAFA permanent financing for the WAND project. Commissioner Zieg asked if CHAFA would continue with their permanent financing without the PBA. The Executive Director stated that CHAFA was willing to re-review the EHA's permanent financing application without PBA but would likely reduce the mortgage amount. The pro-forma figures would change somewhat because there would potentially be a higher vacancy loss un_assisted. opposed to assisted. It was strongly felt among the EHA commissioners that whatever property the EHA deeds to the EHDC should not fall into uses which no longer conform to housing authority purposes and standards ~n the future. Discussion ensued regarding control of properties deeded to the non-profit. A reversion clause in the deeds in case the properties were to be used in a way that is inconsistent with the purpose at time of transfer was discussed. Chairman Burns asked if all entities (including non-profits created by PHAs> were governed by the same rules . and regulations governing the PBA program. Commissioner Norden answered in the affirmative. Councilman Koltay questioned if developing the public notice in order to not allow private entities to perform the same purpose as the non-profit through PBA would be regarded as "steering". The administrative plan of the PHA administering the PBA program and its use in detailing which entities would be eligible for PBA was discussed. Possible negative publicity and repercussions due to the non-profit corporation receiving PBA designated certificates was discussed at length. -2-• ' EHA BOC Regular Meeting 10/25/89 • IV. • It was decided that the EHA should, in regard to PBA: 1. Adopt a selection policy for the PBA units so that it is limited to whatever group the EHA selects; i.e., non-profits; non-profits within the City of Englewood; etc.; and, 2. Sell the WAND properties to the EHDC. It was decided by the Commissioners present at this meeting that EHA's legal counsel, Jim Wagenlander, and all five Commissioners should be present at a special meeting to discuss and decide what course of action the EHA should take in regards to the WAND rental properties and PBA. The date of November 15~ 1989, was set as a special meeting to discuss the PBA situation in regards to the WAND rental properties and also review and apprpve the FY '90 Operating Budget for the EHA. Correction to Page 4, fourth paragraph, third line: line should read: expendable equipment or • control of items used as Correction to Page 4, sixth paragraph, next-to-last line: line should read: ••• this policy will apply to all programs of the Englewood tlQilQ~ IT WAS MOVED BY BRADLEY L. ZIEG TO APPROVE AS AMENDED THE MINUTES OF THE REGULAR MEETING OF THE ENGLEWOOD HOUSING AUTHORITY BOARD OF COMMISSIONERS HELD SEPTEMBER 27, 1989. COMMISSIONER ROGER KOLTAY SECONDED THE MOTION. Ayes: Nays: Abstained: Absent: v. • Burns, Berlin, Koltay, Zieg None None Norden The Chairman declared the motion carried. Yl§llQB§ There were no visitors sched~led for the Regular Meeting of the Englewood Housing Authority Board of Commissioners held October 25, 1989. Neither were there any unscheduled visitors at this meeting • -3- EHA BOC Regular Meetin~ 10/25/89 VI. DIRECTOR'S REPORT Briefly discussed was the total number of applicatic,ns - the waiting list versus the nonduplicate households on~ waiting list since some households are on more than one program's waiting list. A slight change to the Occupancy Status Report was requested by the Commissioners. They would like to see a breakout on the figure of non-duplicate households on the waiting list by residents and non residents. The purpose of the change is to more readily show the City Council exactly how many of our city's citizens are in need of housing assistance (without dLtplication). Vice Chairman Berlin asked how many tenants there were at Orchard Place. The Executive Director stated there were a little ovei-100 1-esidents. Vice Chairman Berlin explained the reason he was asking concerned the Occupancy Status Report and information concerning the sixty-seven residents who took part in the barbecue on September 28, 1989, at which EHA staff served as cooks. His point was that a majority of the Orchard Place residents took part in this function and to him this seemed to indicate an improvement in the relations between tenants at that building. The E;<ecutive Director reported that both "factions" from Orchard Place participated in the barbecue. Councilman Koltay said he received numerous compliments on th~ function as well. ~ Commissioner Zieg brought up the two unfinished units on the seventh floor of Orchard Place. The possibility of finishing these units with funds from the Simon Center Reserve funds was discussed. The Executive Director stated that HUD required the rent generated from these units go to the low-rent public housing program. Discussion ensued regarding the rents generated by these units (once finished) being used to increase the revenues of the EHA's Public Housing Program. Commissioner Zieg stated that the EHA should get an exact figure on how much it would take to complete these two units at Orchard Place. The Maintenance Status Report was noted with no discussion. The WAND Occupancy Status Report was also noted with no discussion. The Housing Rehab Delinquency Report for ~he month of September was discussed concerning one of the Rehab loans which is currently 61 months delinquent. The Executive Director stated that the City Attorney's office had filed Notice of Election and Demand for Sale by Public Trustee on August 4, 1989. The Public Sale had been set for October 25, 1989. After the 75-day right of redemption period, the Executive Di rector wi 11 come to the Bc,ard with i nfo1-mat·· in order to decide what the EHA should do with the propert -4- EHA BOC Regular Meeting 10/25/89 • VII. • • Commissioner Zieg referred to the WAND Property Status Report and stated that the Board had very little knowledge of how much has been spent on these units, how much the debt incurred actually was. Executive Director Malinowski stated he would do a report on this. The Executive Director stated that the upcoming issue of the ~nq!.tg_~(2.Q.Q. l;.i.ti.~~n would carry an article marketing the twc, remaining WAND units to be sold, 3320 and 3322 South Pennsylvania St. He also reported that another family who lives in the neighborhood of the WAND units and has watched the houses being built have become pre-qualified for the three-bedroom unit (3320 S. Pennsylvania St.). Councilman Koltay stated that City Council has been thinking about publishing the Enqlewc,od Citizen every month instead of bi-monthly, because they have received feedback that this is a solution to communication between Council/City Hall and the citizens of Englewood. The Director's Narrative Report will become part of these minutes as Exhibit "A", and attached thereto. DISCUSSION ITEMS, MOTIONS AND RESOLUTIONS A. Review and Action on Public Housing Insurance Subsidy • The EHA received insurance subsidies in FY '87 and FY'88 from HUD with no accompanying ACC amendment. The funds were placed into a separate bank account, and the money was recorded as an Account Payable to HUD since it was not clear what was to be done with the money. The Executive Director obtained an opinion from the EHA's legal counsel on the funds since HUD has demanded that the PHAs who received the insurance subsidy either spend it or send it back. The Executive Director questioned: 1. If the EHA cashing the checks constituted "expending" or "utilizing" the funds, therefore, not necessitating any return of monies? 2. If not, could the money be put into the public housing operating fund and would the EHA not be under any further obligation to HUD since the check came without an ACC amendment. 3. Is the EHA under a tacit legal obligation to sign an ACC amendment at some point in the future if the EHA's cashing the check did constitute "expending" or "utilizing" the funds . -5- EHA BOC Regular Meeting 10/25/89 4. C" .J. What uses the money could be put to. If an ACC jlmendment would get into the de • forgiveness issue and was this worth investigati before Fort Collins settles its case. EHA's legal counsel, James F. Wagenlander, issued a legal opinion regarding the HUD insurance money. It was his opinion that cashing the checks constituted "expending" c,r "utilizing" the funds. It was his opinic,n that if the EHA now spent the money for insurance purposes or used it to cover funds used to pay insurance costs, it was possible that HUD might not puruse an ACC Amendment or seek the return of the money. He stated, however, that the EHA should not assume that HUD would take either of these actions. Counsel stated he could not see the EHA being legally obligated to sign an ACC Amendment with HUD if they <EHA) did use the funds. Counsel also suggested that the EHA consider using the funds and waiting to see what HUD did. If HUD did not take any further action, that was good. If HUD should successfully pre~sure the EHA into returning the money, the EHA could use other available non-HUD funds to pay HUD back. In the worst scenario, legal counsel could not see HUD being able to successfully force the Authority into signing an ACC Amendment that contained the questionable debt forgiveness language. He stated this is because no such language existed in the ACC Amendment forms at the time the EHA received this mc,ney. Le-a Counsel was also of the opinion, in general, that evide showed (_based on HUD actions) that HUD intended to prc,vi the EHA with these funds without ever requiring the EHA to sign an ACC Amendment. The Executive Director asked for a motion giving staff direction on the use or return of these funds. Commissioner Zieg stated that these funds could possibly be put to use in helping to finish off the two units on the seventh floor of Orchard Place that are as yet not finished or be placed into the operating account to help replenish depleted reserves. IT WAS MOVED BY BRADLEY L. ZIEG THAT SHORTFALL FUNDS BE DEPOSITED INTO THE ACCOUNT. ROGER KOLTAY SECONDED THE MOTION. THE PUBLIC HOUSING INSURANCE PUBLIC HOUSING GROSS INCOME Ayes: Nays: Abstained: Absent: Burns, Berlin, Koltay, Zieg None None No,-den The Chairman declared the motion carried. -6-• • EHA BOC Regular Meeting 10/25/89 B • • c. • D. • Discussion and Action on Creative Living, Inc. Warranty Repairs. Lengthy discussion ensued regarding the situation concerning Creative Living, Inc., and their refusal to honor their warranty on the modular homes they manufactured for the WAND project. The Executive Director detailed the efforts to settle the issue. He stated that the low bidder on the completion of the warranty items has been authorized to proceed with the warranty work on 3367 and 3369 South Pearl Street for public relations as well as legal responsibilities on the part of the EHA. The commissioners present agreed that EHA's legal counsel should be consulted to seek his advice on what course of action should now be taken by the EHA. The advantages of arbitrating the issue were discussed. Commissioner Zieg stated that he felt the Executive Director should handle this issue at his discretion after seeking legal counsel's opinion. Appointment of EHDC Board Member In light of the issues surrounding the EHA/EHDC's relationship, Commissioner Zieg wanted this item tabled until the EHA is able to have legal counsel present to discuss the matter. The other commissioners also agreed that they wanted all five commissioners present at the meeting to discuss the matter of appointing EHDC board members. Award of Contract for Renovation of EHA Office Building at 3460 South Sherman Street. The Executive Director stated bids were sought on the working drawings prepared for the renovation of the ground floor of the office building and the exterior work including the handicap ramp. A tally sheet was presented to the Commissioners detailing the bids received for this work. Also presented was the Office Building Capitalization Fund Expenditure Report as of October 25, 1989 • -7- EHA BOC Regular Meeting 10/25/89 It was noted by the Executive Director that there would be a shortfall in the Office Building Capitalization Fund of app1-o >:imately $10,000. He e >:plaine,j that th. was due to the much more extensive remodeling necess to accommodate all EHA and Housing Division Staff aw the new building, plus provide interview rooms for privacy when interviewing clients or potential clients of the EHA. Other items causing the cost of the remodel to be more than originally anticipated were the cost of the removal and replacement of the front steps, repair of the front stairs and the fabrication of the wheelchair ramp. The Executive Director stated he had met with Robb Short, Rehab Supervisor, to determine if there were ways in which the remodel cost could be reduced by $10,000. Using wood to fabricate the ~heelchair ramp rather than steel was discussed at length. It was decided wood would be better than steel due to the expense. The Executive Director did state that the maintenance upkeep for wood would be greater than steel on this ramp. The cost of permits are included in the costs presented. Commissioner ~1eg felt he would rather increase the Office Building Capitalization Fund in order to complete the work and allow for contingencies. The Commissioners present concurred • ti Q I 1 .Q ~ • IT WAS MOVED BY BRADLEY L. ZIEG THAT THE ENGLEWOOD HOUSING AUTHORITY OFFICE BUILDING CAPITALIZATION FUND BE INCREASED BY THE AMOUNT OF $15,000.00, WITH FUNDS FROM THE SIMON CENTER RESERVES, IN ORDER TO COMPLETE THE RENOVATION OF THE EHA OFFICE BUILDING AT 3460 .SOUTH SHERMAN STREET. ROGER KOLTAY SECONDED THE MOTION. Ayes: Nays: Abstained: Absent: Burns, Berlin, Koltay, Zieg None None Norden The Chairman declared the motion carried • .!:'..1.9I1.Q~ IT WAS MOVED BY BRADLEY L. ZIEG THAT THE ENGLEWOOD HOUSING AUTHORITY AWARD THE CONTRACT FOR RENOVATION OF THE EHA OFFICE BUILDING AT 3460 SOUTH SHERMAN STREET TO R. L. CONSTRUCTION SERVICES IN THE AMOUNT OF $57,701.00. R. 3. BERLIN SECONDED THE MOTION. Ayes: Nays: Abstained: Absent: Burns, Berlin, Koltay, Zieg None None Norden The Chairman declared the motion carried. -8- • EHA BOC Regular Meeting 10/25/89 VIII. • IX. IT WAS PROMPTED ORCHARD WORKS. • It was noted that this was slightly higher than that firm's bid on the tabulation . sheet because some additional work was required recently by the Building Department to meet code. E. Setting of Date for Special Meeting on FY '90 Operating Budget. It was decided by the Commissioners present at this meeting of the EHA Board of Commissioners that the agenda for the Special Meeting on the FY '90 Operating Budget would also provide time to meet with EHA's legal counsel and discuss the issues surrounding the Housing Authority's use of Project-Based Assistance on the WAND rental units, and the Authority's relationship with the EHDC. Several dates were recommended and discussed for the Special Meeting. November 15, 1989 was set as the Special Meeting on FY '90 Operating Budget and PBA. The Regular Meeting of the EHA Board of Commissioners was rescheduled from December 6 to December 13, 1989, in order to accommodate holiday schedules. FINANCIAL REPORT It was noted that nine months of revenue and expenditure figures were included in the financial report. The Executive Director explained that revenue figures had been calculated and reconciled for FY '89. Discussion on the placement of the Section 8 Existing HAP subsidies received and the HAP dollar amounts spent ensued. It was agreed that these figures should be put at the end of the appropriate report. MOVED BY BRADLEY L. ZIEG TO PRESENT THE EHA STAFF MEMBERS WHO THE UNSOLICITED LETTER OF PRAISE AND THANKS FROM THE FAMILY OF AN PLACE RESIDENT A PLAQUE OR LETTER OF COMMENDATION FOR THEIR GOOD Discussion ensued regarding the letter from the family of an Orchard Place resident. The letter was very complimentary of EHA staff and thanked them for their help in regards to the Orchard Place resident. -9- EHA BOC Regular Meeting 10/25/89 x. Commissioner L1eg felt that the EHA staff involved should receive letters c,f commendation or a. plaque frc,m the Boa. commending them for their good works as evidenced by t unsolicited letter of praise and thanks from this family. Commissioner L1eg asked who the particular EHA staff member was that prompted this letter. The Executive Director stated it was the Occupancy Supervisor, Guy Blasi. Commissioner Zieg asked who were the persons mentioned in the letter who had helped with the walkthrough. The Executive Director did not know but said he would find out. Discussion appropriate for their important display in ensued regarding whether it would be more to present the staff with a plaque or a letter personnel file. Commissioner Zieg felt it was that staff have something they could place on their offices if they so desired. This motion was never seconded or voted on. GENERAL DISCUSSION A. Commissioners' Choice Council Representative Koltay stated that Vivian Scull, a representative from SEMBCS has offered to coordinate entertainment activities at Orchard Place with little or no charge to the residents. She has worked with-- Anne . Mickelson at Malley Center providi non-duplicative entertainment there, and she has brother at Orchard Place and thus understands the workings of the two factions there. The Executive Director stated he would give the name of this woman to the Occupancy Supervisor, Guy Blasi, to contact for further information regarding the possibility of using her to coordinate entertainment activities at Orchard Place. Briefly discussed was the 504 Panel consisting of interested, knowledgeable individuals who have volunteered to review all EHA policies and procedures and leases in order to determine if they comply with the regulations contained in Section 504 of the Rehabilitation Act of 1973, as amended. -10-• EHA BOC Regular Meeting 10/25/89 • B. •• Director's Choice Executive Director Malinowski reported on a meeting he had attended this date at the Colorado Municipal League concerning a draft bill from the Interim Committee on Intergovernmental Affairs Hearings. This bill would severely limit the powers of housing authorities. There was also discussed its companion bill which would similarly limit the powers of urban renewal authorities. The Executive Director reported that the draft bill would probably be rewritten within the next month or two. He also stated that at the next regularly scheduled meeting of the EHA Commissioners he would like to present the Commissioners with NAHRO's formal position on the bill. If the Commissioners have additional input on this bill at that time, the Executive Director stated he would take their thoughts to the CML. The Executive Director stated that this bill was prompted, in part, by the Denver City Council who felt that the power <to do some of the housing projects that Denver Housing Authority wanted to do) should rest with the City Council and not with the Housing Authority, and the way to change this rested with the State Legislature. Discussion ensued regarding the fact that federal law established the authorization programs for housing authorities and state law dictates how the housing authorities are structured, who is appointed to the board of commissioners, and it is the state enabling legislation that has been targeted for change. IX. ADJOURNMENT IT WAS MOVED BY COUNCIL MEETING OF THE ENGLEWOOD OCTOBER 25, 1989. 11~\ ~-<=-6~{£ Vomkfs J. Bu~jf{ Chairman • tlQI!.Q~ REPRESENTATIVE KOLTAY TO ADJOURN THE REGULAR HOUSING AUTHORITY BOARD OF COMMISSIONERS HELD / U ,j j) /: , , I "',, I • ~'--"'. ·/;/L. :.-j;;!, ") - Mary 1A.'Ryan _r--------------- Recording Secretary -11-