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HomeMy WebLinkAbout1989-04-26 EHA MINUTES,. ,, • I • II. • • ENGLEWOOD HOUSING AUTHORITY Board of Commissioner--s Regular Meeting Aeri l 26, 1989 CALL TO ORDER The Regular Meeting of the Englewood Housing Author·ity Board of Commissioners was called to order at 7:00 p.m. on Wednesday, April 26, 1989, at Simon Center·, 3333 South Lincoln Street, Englewood, Colorado, 80110, by Chdirman Thomas 3. Burns. ROLL CALL Member·s Present: Members Absent: Also Present: Thomas 3. Burns, Chairman R. 3. Berlin, Vice Chairman Roger Koltay, City Council Rep. Norleen Norden, Commissioner Bradley L. Zieg, Commissioner <With Prior Notice) Paul Malinowski, E~ecutive DireLtor Mary A. Ryan, Recording Secretary Steven Stranger, C.P.A.* Vesta Frank, Orchard Place Tenant and various interested parties** * Mr. Stranger was present for that portion of the EHA Board of Commissioners' Regular Meeting held 04/26/89 which applied to his report on the status of the EHA's accounting records. ** Ms. Frank WrlS present for the Scheduled Visitors portion of the EHA Board of Commissioners' Regular Meeting held 04/26/89 only. In order to accommodate Steven Stranger, Consulting Accountant, and the tenants from Orchard Place and Simon Center present at the Re gular Meeting of the Englewood Housing Authority Board of Commissioners held April 26, 1989, it was agreed by the commissioners to defer the approval of the minutes until after the Scheduled Visitors portion of the agenda. It was further agreed to allow Ms. Frank to speak bet·ore Mr. Stranger. However, the Minutes of" this meeting will be shown in the order presented by the Agenda • EHA BOC Regular Meeting 04/2b/89 '1 0 T I O N IT WAS MOVED BY COUNCILMAN ROGER KOLTAY TO DEFER APPROVAL OF fHE MARCH 2 1989, MINUTES UNTIL AFTER THE VISITORS POHTION OF THE APRIL 26, 1989, ENGLEWOOD HOUSING AUTHORITY BOARD OF COMMISSIONERS MEErING IN ormER TU ACCOMMODATE STEVEN STRANGER, CONSULTING ACCOUNTANT, AND THE RESIDENTS OF SIMON CENTER AND ORCHARD PLACE PRESENT AT THIS MEETING OF THE BOARD OF COMMISSIONERS. NORLEEN NORDEN SECONDED THE MOTION. Ayes: Nays: Abstained: Absent: I 1 I. Burns, Berlin, Koltay, Norden None None Zieg The Chairman decldred the motion carried. MINUTES There we,··e no additions or con-ections to the Minutes 01· the Regular Meeting of the Englewood Housing Author·ity Board of Commissioners held March 29, 1989, as presented. M O T I O N ' IT WAS MOVED BY VICE CHAIRMAN BERLIN TO ACCEPT THE MINUTES OF THE REGULAR MEETING OF THE ENGLEWOOD HOUSING AUTHORITY BOARD OF COMMISSIONERS HELD MARCH 29, 1989, AS PRESENTED, WITH NO CHANGES OR ADDITIONS. COUNCILM. ROGER KOLTAY SECONDED THE MOTION. Ayes: Nays: Abstained: Absent: IV. Burns, Berlin, Koltay None Norden Zieg The Chairman declared the motion carried. VISITORS: A. Steven Stranger, CPA, Consulting Accountant, to Discuss Accounting Status Steven Stranger, CPA, had been hired in February, 1989, to analyze the EHA's 1988 books, develop a plan to tie in to 1989, and help the EHA implement the plan. Mr ·. Stranger informed the Board of Commissioners that uncovered accounting problems were fully analyzed, plans were being implemented to correct problems, and EHA staff was proceeding with appropriate . steps to complete the accounting records. Mr. Stranger detailed where the EHA was within the plan and that the EHA would be ready for the 1988 audit within six to eight weeks. In the meantime, our auditors Denton/Netherton, will be reauditing 1987 as dete,-min& at the March board meeting. ~ -2- • EHA BOC Regular Meeting 04/26/89 IV. Y.!.§.!IQB~ B. Vesta Frank, Orchard Place Resident Ms. Frank and approximately 15 other interested parties, including some residents c,f Simon Center a n d Orchard Place, were present at the Englewood Housing Authority Board of Commissioners Meeting held April 26, 1989. Ms. Frank was the spokeswoman for the group. Ns. Frank expressed strong dissatisfaction with the th e removal of the television from the TV/Library Room and the subsequent placement of it in the Community Ro o m, stating that this latter room was in the back of the building and too lonely to be used. Ms. Frank also expressed dissatisfaction with not being allowed to have ceramic classes in the building, and particular }~, strong dissatisfaction with the tactics of other residents at Orchard Place who are active in the Orchard Place Tenant Council <which is comprised of all residents of Orchard Place>. Ms. Frank was asked by Vice Cha i rman Berlin if she would consider running for a position as an officer of the Orchard Place Tenant Council, and if elected would she occupy the position and work to change those things with which she was dissatisfied. Ms. Frank stated she would not, that she felt it would not do any good. The Commissioners of the Englewood Housing Authority and the Executive Director, Paul Malinowski, encouraged Ms. Frank and the other residents from Orchard Place in attendance at this meeting to attend the Tenant Council Meetings, speak up at the meetings, vote on issues, and run for and hold positions as officers of the Tenant Council in order to change those things with which they were dissatisfied in a democratic fashion. Commissioner Norden asked Ms. Frank if she would consider attending mediation sessions if an outside mediator hired by the EHA was provided. The purpose of such mediation would be to bring tc,gether the varic•us interests and personalities of Orchard Place fo r mo r e harmonious living. Ms. Frank stated she wc,uld c onsider this as long as the mediator was fair and impar ti a l. Ms. Norden assured Ms. Frank that this would certainly be the case, and that the mediation servic~ selected would have no stake in the issues at hand. Executive Director Malinowski informed the Commissioners that the agenda for the Orchard Place Tenant Council meetings now provided a time for tenants to discuss with management specific issues and to allow for questions and feedback. Voting for officers of the Tenant Council was discussed with the other Commissioners and Ms. Frank. -3- EHA BOC Regular Meeting 04/26/89 v. The visitors were thanked by the Chairman a nd the Commissioners for attending this meeting and stati. their grievances. The visitors left the meeting this time and the Board of Commissioners discu s se acquiring an outside mediation service skill e d in gerontology. The Executive Director was directed t o seek out an outside mediation service with experience in wor~ing with the elderly, especially one skilled in "interpersonal relationships". DIRECTOR'S REPORT: Commissioner Norden asked about the Section 8 E >:. report and why a participant was terminated from rental assistance because she was no longer eligible. The participant in the Section 8 Certificate program in 1986 was under a repayment contract for unreported income in the amount of $3372.00. Payments were partially completed until January of 1987 at which time a collection agency was needed to collect part of the balance due and court action was needed to settle a dispute over the remaining balance due. The dispute w~s settled in pre-trial, and the participant agreed to make the remainder of the payments. Rental assistance was terminated March 31, 1986 because the participant was no longer eligible. The Rehab Loan Delinquency Report was discussed regarding loan No. 5. This homeowner had been contacted by the Ci. Attorney's office and given until mid-March, 1989, t respond to the City Attorney's letter demanding attention to the seriously delinquent status of this loan. The homeowner responded and informed the City that she would I ike to wod{ out a payment schedule on her loan. A check was sent by the homeowner in the amount of $300. The Executive Director of the EHA decided that since the homeowner's late charges and back payments were in excess of $1500, that at least half of the past due amount was required. The EHA informed the homeowner of this and told her they would hold her check fo r $300 in order for her to arrange to pay an additional amount on her past-due amounts. The homeowner came up with an additional $420 and the Executive Director of the EHA accepted this total amount of $720. The Rehab Financi a l Specialist, Janet Grimmett, contacted the home owner and a written arrangement was reached whereby the homec,wnei-wi 11 begin making double payments on the remaining past-due amount for approximately one year to bring the loan current. The Executive Director gave a brief explanation of the differences between the fee accountant, Robert J. Sylvester , who was previously contracted by the EHA; the consulting accountant, Steven Stranger, CPA; and the staff accountant recently hired, Ron Schmidt. -4-• EHA BOC Regular Meeting 04/26/89 v. • VI. DIRECTOR'S REPORT: The Executive Director informed the Commissioners that the maintenance position which was vacant since April of 1988 had been filled. The new maintenance worker, Tim Thomas, was hired to do primarily preventive maintenance work but will also do work orders. Discussion Items, ~2!1~D§ and Resolutions: A. Attendance Guidelines for Englewood Housing Authority Board of Commissioners: This item was tabled from the Regular Meeting c,f the Englewood Housing Authority Board of Cc,mmissioners held March 29, 1989. The Englewood City Council passed a resolution requiring all boards and commissions of the City to submit attendance guidelines for board meetings to the City Council. The Executive Director was asked at the March 29, 1989 meeting to draft a proposed set of guidelines for review at this meeting. After a brief discussion concerning the requirements of giving notice of missing a meeting, and the meanings of "with prior notice" and "without prior noticen the Commissioners agreed to adopt the guidelines presented with the inclusion of a sixth paragraph addressing the absenteeism of the Chairman of the Board of Commissioners; wording such as: "In the event any of the above guidelines applies to the Chairman of the Englewood Housing Authority Board of Commissioners, the Vice Chairman will assume the responsibilities of the Chairman regarding these Attendance Guidelines as set forth in the foregoing paragraphs No. 1 through No. 5." ti Q I 1 Q ~ IT WAS MOVED BY VICE CHAIRMAN R. J. BERLIN TO ACCEPT THE ATTENDANCE GUIDELINES AS PROPOSED AT THE REGULAR MEETING OF THE ENGLEWOOD HOUSING AUTHORITY BOARD OF COMMISSIONERS HELD APRIL 26, 1989, WITH THE INCLUSION OF WORDING AS FOLLOWS: "IN THE EVENT ANY OF THE ABOVE. GUIDELINES APPLIES TO THE CHAIRMAN OF THE ENGLEWOOD HOUSING AUTHORITY BOARD OF COMMISSIONERS, THE VICE CHAIRMAN WILL ASSUME THE RESPONSIBILITIES OF THE . CHAIRMAN REGARDING THESE ATTENDANCE GUIDELINES AS SET FORTH IN THE FOREGOING PARAGRAPHS NO. 1 THROUGH NO. 5." ROGER KOLTAY SECONDED THE MOTION. Ayes: Nays: Abstained; Absent: • Burns, Berlin, Koltay, Norden None None Zieg The Chairman declared the motion carried . -5- EHA BOC Regular Meeting 04/26/89 VI. DISCUSSION ITEMS, MOTIONS AND RESOLUTIONS B. WAND Permanent Financing Update • The Executive Director stated that the ori g inal plan called for the rental units of WAND to get permanen t financing at the same time the acquisit i on loan at First Interstate Bank came due. There was s u bsequentl y an extension on this loan granted by First Inter stat e Bank until the permanent financing could be in plac e . A loan application for the eleven rental units of t he WAND project was submitted to CHAFA and Cc,nditiona l Commitment f~r this loan was received. Concurren t ly, the EHA applied to HUD for Project-Based Ass i stance <PBA> Certificates for these units but this subsi d y ~~s denied because the EHA's contract with HUD would expi rP within two years of submission of the applicatio n an~ HUD requires at least two years' balance in t h e contract to receive PBA funding. However, CHAFA acquired some Project-Based Assi s tance and set some aside in our name for nine of the el e~en WAND rental units. The tenth unit cannot r ecei v e P BA funding since it has already been t he recip i e n t of Rental Rehab Project funding which cannot be cc,up led with PBA funding. CHAFA simply did not have f u red 11i g for the eleventh unit, but since it is a seven-bed ,·· unit being rented at a four-bedroom rental p r ic e , EHA feels this unit will be no problem to rent. exact date the EHA will receive this CHAFA/PBA fun d i ng is uncertain . The Firm Commitment application for t h e financing is going before CHAFA's board in May o ,-Ju n e , 1989. Since CHAFA cannot technically rec e i v e P BA units, the EHA will have to submit an applicati c: .. -: t:c, HUD for this Project-Based Assistance throu g h CHAF A . After the ACC for the PBA for the WAND rental u ni t s 1 s signed with HUD, then the EHA will recei v e the P BA from CHAFA. The EHA rec eived requested amount) will include the units. -6- partial funding (about 7 5% o f the for the CDBG program. This fu n d i r ,g cost of rehab to all the WAN D ren t ~l • EHA BOC Regular Meeting 04/26/89 VI. • • • DISCUSSION ITEMS, MOTIONS AND RESOLUTIONS B. WAND Permanent Financing Update c. The Executive Director and the Commissioners discussed the WAND Rental Unit Time Line as presented as far as all factors interrelating since the funding is coming from three separate agencies. The EHA cannot do any of the rehab work until the State of Colorado gives the EHA the signed CDBG contract which will be around the first of July, 1989. The Rehab construction work will take approximately ninety days; at which time, CHAFA will close the Permanent Financing Loan, approximately the third week of October; and at that time, the EHA will receive the Permanent Financing Loan Funds from CHAFA. Thus, the WAND Rental Units will be ready to lease-up around the end of October, 1989. The Executive Director stated that he felt at this time it would be premature to deed all WAND rental properties to the EHDC in preparation for permanent financing due to the projected date for these units becoming available for lease-up. Office Building The Executive Director presented a list of inadequacies of the current office space for EHA staff. Also presented for discussion were legal opinions from EHA Legal Counsel regarding handicap accessibility requirements and use of Simon Center reserve funds for the purchase of an office building. legal counsel that the EHA could proposed office building at 3460 with handicap ramps would be It was the opinion of demonstrate that the South Sherman Street accessible and usable by individuals with handicaps. It was Authority the opinion could use of EHA's legal counsel that the the Simon Center reserve funds in numerous ways; e.g., continue to accumulate the money, consider refunding or restructuring the bonds, or· spend it for non-project purposes which could include the purchase of an office building, developing · housing, subsidizing the EHA's public housing program, or establishing a revolving loan fund. Legal counsel recommended that the Authority carefully evalu~te all these options and develop a plan before taking any further action to utilize these funds • -7- -·••• ---,_._11.:::1..,..,._.., ••-~v•••":f , 04/26/89 VI'. DISCUSSION ll~~~' MOTIONS AND RESOLUTIONS c. Office Building Legal counsel recommended that the EHA seek from bo. counsel or an auditing certified public accountant an opinion assuring the Authority that it has not violated any federal ~rbitrage requirements in the investment of its Simon Center reserve funds and an a:dditional opinion as to the EHA' s ability tc, freely use thes-~ funds for the purchase of the proposed office building at 3460 South Sherman Street. Vice Chairman Berlin asked the Executive ,Direc tc,r i.f he was happy with 3460 South Sherman St. as a proposed office building for EHA staff; if the building met all criteria as far as staff was concerned. The Executive Director answered in the affirmative. The Executive Director stated that the City of Englewood Building Department considered the building to be e xc ellent a s far · as meeting building codes and found only one obvious code violation. In addition, Robb Short of the City Housing Division reviewed the building for needed retrofitting to make the second floor handicapped accessible. He reported that a new ramp with railings to the second floor would cost about $4,000. The ramp would come off n~ handicap parking spaces from the east side of building. , The Executive Director informed the Commissioners that he had prepared an offer to be presented to the seller s of the building located at 3460 South Sherman Street and suggested that EHA Legal Counsel, James Wagenlander review the proposed contract documents. He stated the proposed contract included clauses which allowed for the EHA to perform "due diligence", and for the present owners to relocate the present ground floor tenant s to the second floor of the building. Chairman Burns asked about the heating and air conditioning in the building. Vice Chairman Berlin stated that when he had inspected the building, these systems seemed to be working adequately. The Executive Director stated that the roof had been replaced four to five years ago with a ten-year warranty. The Executive Director stated that the purchase of this building and subsequent mortgage payments on it had not been planned into the EHA's consolidated budget for FY '89, but some income would be derived from the present tenants. He also stated that when the Permanent Financing for the WAND units was in place, any futu- interest earned on the certificate of deposit present being used as collateral for the WAND Acquisition Loa with First Interstate Bank of Englewood would be available to make the monthly mortgage payments. A portion of the CD would also be used for the downpayment. -8- EHA BOC Regular Meeting 04/26/89 VI. • DISCUSSION ITEMS, MOTIONS AND RESOLUTIONS: c. Office Building The Executive Director was directed to submit the proposed Contract documents offering to purchase the office building at 3460 South Sherman Street to EHA Legal Counsel, James Wagenlander, for approval as to wording. The Executive Director was further direct e d to get an additional opinion assuring the EHA that it has not violated any federal arbitrage requirements in the investment of its Simon Center reserve funds and of the EHA's ability to freely use these funds fDr the purchase of the proposed office building. The Executive Director was directed to tender the offer to purchase this building to the present owners at an offering price of $210,000 with $40,000 down and the balance financed at 12X for 15 years with a contingency regarding bond counsel opinion. tt.QI.!.Q~ IT WAS MOVED BY VICE CHAIRMAN R. J. BERLIN THAT THE EXECUTIVE DIRECTOR SUBMIT Tt-E OFFER FOR THE PURCHASE OF THE OFFICE BUILDING LOCATED AT 3460 SOUTH SHERMAN STREET TO EHA LEGAL COUNSEL, JAMES F. WAGENLANDER, TO REVIEW AND APPROVE AS TO WORDING. THE EXECUTIVE DIRECTOR IS TO OBTAIN ADDITIONAL LEGAL OPINION FROM BOND COUNSEL OR AN AUDITING CERTIFIED PUBLIC ACCOUNTANT - SSURING THE ENGLEWOOD HOUSING AUTHORITY THAT IT HAS NOT VIOLATED ANY EDERAL ARBITRAGE REQUIREMENTS IN THE INVESTMENT OF ITS SIMON CENTER RESERVE FUNDS AND FURTHER OF THE EHA'S ABILITY TO FREELY USE THESE FUNDS FOR THE PURCHASE OF THE PROPOSED OFFICE BUILDING. UPON REVIEW BY COUNSEL, JAMES F. WAGENLANDER, THE EXECUTIVE DIRECTOR IS THEN TO SUBMIT THE OFFER TO PURCHASE THIS OFFICE BUILDING TO THE OWNER OF THE OFFICE BUILDING UNDER TERNS AND CONDITIONS AS AGREED UPON. ROGER KOLTAY SECONDED THE MOTION. Ayes: Nays: Abstained: Absent: Burns, Berlin, Koltay, Norden None None Zieg The Chairman declared the motion carried. D. Request of Rehab Homeowner for Loan Forgiveness An Englewood homeowner received a five-year declining lien on a rehab grant in October, 1984. Under this program, 20% of the grant amount is forgiven each year for five years until at the end of that time, no rehab proceeds are due back to the City's Rehab Program. One of the criteria that would trigger repayment (or partial repayment> of the grant funds within that five years is if the house is no longer the bol-rower's principal place of residence. This is the current situation of the homeowner. It was the recommendation of the Executive Director that the balance be forgiven because: -9- EHA ~oc Regular Meeting 04/26/89 VI. DISCUSSION ITEMS, MOlIONS AND RESOLUTIONS: D. Request of Rehab Homeowner fc,r Loan Forgi venes1=. 1. The homeowner offered the information of his volition and did not try to hide it; e. The homeowner is not selling the house, onl1 moving from it; 3. The homeowner must move from the residence because of a residency requirement of the city he becam~ employed by; 4. 5. The homeowner had Counseling services; The homeowner does amount remaining on Rehab Program. sought Consumer Cred i "G not have the funds to pay the the grant back to the City's The Executive Director recommended that if outright loan forgiveness was not acceptable, an option to be considered would be to pro-rate the balance remaining and put the homeowner on a three-to-four year repayment schedule. The Commissioners recommended accepting the c,ffer - the homeowner to pay off the remaining portion oft rehab grant in small monthly payments. They decided 48-month restructuring of the prorated, remaining amount would be the most equitable soluti o n for all concerned. 11QI!.Q~ IT WAS MOVED BY ROGER KOLTAY TO PRORATE THE REMAINING BALANCE DU E ON THE REHAB DECLINING LIEN FOR 3739 SOUTH DELAWARE AND STRUCTURE PAYMENTS OVER A FORTY-EIGHT (48) MONTH PERIOD. VICE CHAIRMAN BERLIN SECONDED THE MOTION. Ayes: Nays: Abstained: Absent: VII. Burns, Berlin, Koltay, Norden None None Zieg The Chairman declared the motion carried. FINANCIAL REPORTS No financial reports for the month of March, 1989, available due to the pending year-end closing of 1988. -10- are • EHA BOC Regular Meeting 04/26/89 IX. x. CONSENT AGENDA Noted with brief discussion regarding the status c,f the EHA as a Recognized Performer under the Pub 1 i c Housing Decontrc, 1 Handbook by HUD. Commissioner Norden stated that very f e.,, housing authorities in this region had been decontrolled . ~~~~B6b DISCUSSION A. Commissioners' Choice Commissioner Norden asked to establish some guidelines for securing the services of a professional mediator. It was decided that knowledge of and experience w i th working with the elderly was the most important criteria. The Executive Director was directed to begin a search for such a mediation service. B. Director's Choice Executive Director Malinowski stated that it had apparently been previous practice that when the EHA deeded some properties to the EHDC the deeds were not recorded with the Clerk and Recorder of Arapahoe County. At least three WAND properties had not been recorded in the past. He stated that apparently this was done previously in order to be able to selectively present information to different agencies as was deemed appropriate to the EHA. Executive Director Malinowski wanted it on the record that this was not a practice he condoned, that he had not used this practice in the past, and this practice would not be used by him at any time in the future. ADJ'OURNMENT There being no further business to be conducted at the Regular Meeting of the Englewood Housing Authority Board of Commissioners held April 26, 1989, the meeting was a djourned at 9:30 p.m . -· { --1-,..atJd. ---~ -------------ul J~- Mary A. lj(yan, ording Secretary -11-