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HomeMy WebLinkAbout1990-05-30 EHA MINUTES, I. II. III. IV. ENGLEWOOD HOUSING AUTHORITY Board of Commissioners Regular Meeting May 30, 1990 CALL TO ORDER The Regular Meeting of the Englewood Housing Authority Board of Commissioners was called to order at 6:30 p.m. on Wednesday, May 30, 1990, at 3460 South Sherman Street, Englewood, Colorado, by Chairman Thomas J. Burns. Members Present: Members Absent: Also Present: STUDY SESSION Thomas J. Burns, Chairman R. J. Berlin, Vice Chairman Roger Koltay, Commissioner Norleen Norden, Commissioner Bradley Zieg, Commissioner None Paul Malinowski, Executive Director Mary A. Ryan, Recording Secretary (Note: There was no Study Session at this meeting, and the meeting began at 6:30 p.m. due to a Rental Rehab Loan Committee Meeting held at 5:45 p.m.) MINUTES A. Executive Session of Regular Meeting Held April 25, 1990. IT WAS MOVED BY COMMISSIONER ZIEG TO APPROVE AS PRESENTED THE MINUTES OF THE EXECUTIVE SESSION CALLED FOR THE PURPOSE OF EVALUATING THE EXECUTIVE DIRECTOR, PAUL MALINOWSKI, DURING THE REGULAR MEETING HELD APRIL 25, 1990. VICE CHAIRMAN BERLIN SECONDED THE MOTION. Ayes: Nays: Abstained: Absent: Burns, Berlin, Koltay, Norden, Zieg None None None The Chairman declared the motion carried. nm1/ehabocminutes/ehamin053090 EHA BOC Regular Meeting 05/30/90 B. Regular Meeting Held April 25, 1990 IT WAS MOVED BY COMMISSIONER ZIEG TO APPROVE AS PRESENTED THE MINUTES OF THE REGULAR MEETING HELD APRIL 25, 1990. COMMISSIONER NORDEN SECONDED THE MOTION. Ayes: Nays: Abstained: Absent: v. VI. Berlin, Koltay, Norden, Zieg None Burns None The Chairman declared the motion carried. PRE-SCHEDULED VISITORS There were no pre-scheduled visitors at the Regular Meeting of the Englewood Housing Authority Board of Commissioners held May 30, 1990 DIRECTOR'~ REPORT A. Narrative Report Exhibit A) ~ RENTALS (Attached to these Minutes as E/D Malinowski briefly reported on the new PBA regulations which became effective on April 12, 1990. He detailed the additional items requested by HUD at the meeting held May 9, and informed the Commissioners that all items requested were delivered to HUD on May 30. He further stated that he had requested HUD review the additional PBA information in an expedient manner since the owner of the project to be designated PBA had been ready to proceed with the rehab construction work for quite some time and the new regulations have stopped them from proceeding. Chairman Burns asked what criteria HUD would be using to set the rents of the units to be designated project-based. E/D Malinowski responded that HUD might agree to use the EHA's rent survey data after someone from HUD reviewed the contract rents proposed by the EHA. If not, they will do their own rent survey. E/0 stated that we no longer have any control over deadlines, and the WAND schedule is now almost impossible to predict. -2- EHA BOC Regular Meeting 05/30/90 VII. OFFICE SIGN The office sign was discussed as to what size the Executive Director had requested from the Department of Public Works. Due to the response from Public Works of an anticipated completion date of November and the price of the sign they would supply, it was the consensus of the Board that the E/D price the sign from an outside source. Brad Zieg offered to give the E/0 a sketch to use for pricing. URBAN HOMESTEADING The Board had strong objections to the use of the word "default" in the documents relating to the Urban Homesteading Program if a loan was JO-days late. Their concern is that "default" in the strict legal sense would be too restrictive and would require their constant review and/or foreclosure action. The Board felt that substituting the word "delinquency" for "default" would give substantially more flexibility. B. Program Reports Chairman Burns asked if there were any questions or comments on the Program Reports. Commissioner Zieg asked if the situation presented in the Occupancy Report under Section 8 concerning the family who admitted lying to the housing authority and to Social Services about employment income and AFDC payments would be alleviated with the information supplied by the Department of Labor and Employment agreement. The E/D stated that this was exactly the type of situation the agreement with DOLE could prevent. DISCUSSION ITEMS, MOTIONS AND RESOLUTIONS: A. Adoption of Resolution No. 5, Series of 1990, To Write Off Stale-dated Checks. The Executive Director explained that some of the checks being written off were checks considered to be "stale-dated" because they were seven months old or older. He further explained that three of the checks being written off were checks issued in 1988 upon which a "stop-payment" was issued and then the checks were reissued in 1988. Commissioner Zieg questioned what type of checks the EHA is writing in the amounts of $1.00, $3.00 and $5.00. The Board was informed that these checks are usually utility allowance payments to low-income families in our low-rent public housing or section 8 existing units. -3- EHA BOC Regular Meeting 05/30/90 IT WAS MOVED BY COMMISSIONER ZIEG TO ADOPT RESOLUTION NO. S, SERIES OF 1990, AUTHORIZING THE WRITE OFF OF STALE-DATED CHECKS AS LISTED IN THAT RESOLUTION. COMMISSIONER NORDEN SECONDED THE MOTION. Ayes: Nays: Abstained: Absent: Burns, Berlin, Koltay, Norden, Zieg None None None The Chairman declared the motion carried. B. Adoption of Resolution No. 6, Series of 1990, Authorizing Adjustment of Inventory. The Executive Director explained that in preparation for year-end statements of 1989, the EHA performed a comprehensive review of inventory items. Some adjustments are necessary to the EHA's asset account totals to present accurate listings to the auditor and to ensure that the property ledger matches the general ledger. He stated that because these entries affect the balance sheet status of prior years, Board approval is required. IT WAS MOVED BY COMMISSIONER ZIEG TO ADOPT RESOLUTION NO. 6, SERIES OF 1990, AUTHORIZING ADJUSTMENTS OF INVENTORY AS PRESENTED IN THAT RESOLUTION. VICE CHAIRMAN BERLIN SECONDED THE MOTION. Ayes: Nays: Abstained: Absent: Burns, Berlin, Koltay, Norden, Zieg None None None The Chairman declared the motion carried. C. Ratification of Purchase Agreement for 3320 South Pennsylvania Street The Board was informed that after the previous buyer of 3320 South Pennsylvania was denied a loan, the EHA was approached by another potential buyer who obtained loan pre-qualification. The EHA raised the sale price from the original price of $74,310 to $75,538 to cover the additional items the previous buyer ordered and was going to pay for through an increased loan. This higher sale price does not include the items the previous buyer paid for upfront. -4- EHA BOC Regular Meeting 05/30/90 Since the new buyer has met the loan qualifications and agreed to the previously set sales price {plus the additional amount) a purchase agreement was executed on May 8, 1990. The E/D was recommending adoption of a motion ratifying the execution of the Purchase Agreement with Andrea Lacina for 3320 South Pennsylvania Street in the amount of $75,538.00 IT WAS MOVED BY COMMISSIONER ZIEG TO RATIFY THE EXECUTION OF THE PURCHASE AGREEMENT WITH ANDREA LACINA FOR 3320 SOUTH PENNSYLVANIA STREET IN THE AMOUNT OF $75,538.00. VICE CHAIRMAN BERLIN SECONDED THE MOTION. Ayes: Nays: Abstained: Absent: Burns, Berlin, Koltay, Norden, Zieg ~one None None The Chairman declared the motion carried. D. Review and Action on Loan Assumption for 2030 West Adriatic Avenue Janet Grimmett, Rehab Financial Specialist, had been notified by the daughter of a rehab loan recipient that she had been deeded her mother's home through a quit claim deed when the mother was about to undergo risky surgery in April 1990 and subsequently passed away. The daughter cannot assume the two rehab notes in question under the original terms and conditions because she is considered low-income while her mother was considered very-low income. Using the formula established by the Rehab Loan Committee, the daughter cannot afford any additional debt at this time due to her substantial, existing long-term debt. The daughter has requested the EHA Board allow her to repay her mother's two rehab notes by approving a repayment plan requiring monthly payments beginning in one year so that she {the daughter) may have some time to pay off some of her existing debt. Ms. Grimmett stated in her communication with the Board that the daughter had been cooperative and notified her immediately upon her mother's death. Ms. Grimmett felt that a one-year delay in establishing monthly payments of $104.73 was a reasonable request when taking into account the daughter's current financial status. -5- EHA BOC Regular Meeting 05/30/90 The Board was informed that the two rehab loans were: 1. A straight deferred loan at zero percent interest with a current balance of $4,638.10; and, 2. A five-year declining lien at zero percent interest with a balance of $1,645.60. IT WAS MOVED BY COMMISSIONER ZIEG TO GRANT THE DAUGHTER OF THE DECEASED REHAB LOAN RECIPIENT AT 2030 WEST ADRIATIC AVENUE A FIVE-YEAR REPAYMENT TERM ON THE TOTAL DOE FROM THE TWO REHAB LOANS OP $6,283.70, PAYMENTS TO BEGIN IN ONE YEAR ON JONE 1, 1991, AT ZERO PERCENT INTEREST, WITH THE MONTHLY PAYMENTS BEING $104.73. VICE CHAIRMAN BERLIN SECONDED THE MOTION. Ayes: Nays: Abstained: Absent: Burns, Berlin, Koltay, Norden, Zieg None None None The Chairman declared the motion carried. E. Review of Previous Board Action on Rehab Loan No. 32 This item concerns rehab loan No. 32 which was reviewed by the Board in August, 1989. (Note: Extract of Minutes from EHA Board of Commissioners Meeting held August 30, 1989, attached to these Minutes, and made a part hereof, as pages 6a and 6b.J Ms. Grimmett had explained to the Board in her memorandum dated May 24, 1990, that this person has continually ignored her requests for additional information explaining the reasons this person cannot afford the Board's approved loan assumption payments of $83.34 per month. This person has continually expressed her inability to make this payment and her ability to afford only $32.86 per month regardless of the fact that her financial information seems to indicate that the person can afford the $83.34. Ms. Grimmett has requested, time and time again, additional information to verify this person's inability to make the $83.34 payments, but has been met with accusations that the EHA is "harassing" her. Ms. Grimmett's communication to the Board dated May 24, 1990, expressed her frustration over this situation and requested clear direction from the Board on how to proceed. -6- EHA BOC Regular Meeting 08/30/89 v. Y1.§1I.QB.§ There were no visitors scheduled for the Regular Meeting of the Englewood Housing Authority Board of Commissioners held August 30, 1989. Neither were there any unscheduled visitors at this meeting. VI. DIRECTOR'S REPORT A. Program Reports in Packet: Commissioner Bradley L. Zieg questioned the Occupancy Report and the size of the waiting list was discussed. It was felt that the inclusion of paragraph No. I.C. in the Englewood Housing Authority 1990 Goals and Objectives addressed this concern. Discussion ensued regarding the meeting that the EHA had with the City Council on August 14, 1989. It was the general consensus of the Commissioners present that this meeting went very well. It was also agreed upon by the commissioners present that perhaps regularly meeting twice a year, e.g., in August to discuss goals and objectives for the coming year and in February to analyze the progress being made on those goals and objectives and to get feedback from City Council on where they want to go the rest of. the fiscal year, would be beneficial to both the EHA and City Council. Commissioner Zieg wanted the Englewood Housing Authority 1990 Goals and Objectives sent to the Englewood City Council as soon as possible. A. Setting of 1990 Goals \ This item was covered during the Study Session of the Regular Meeting of the Englewood Housing Authority Board of Commissioners held August 30, 1989. EZli''-·· . ·---s:&fi"~~fil&i:i!ii 11!!!11 -~~----.,..~ ·-.. This item was tabled the last two meetings while additional financial information was obtained on the daughter of the recipient of rehab Loan 32. Staff needed to determine the type of loan repayment the daughter qualified for. Also, a legal question needed to be addressed. The original Promissory Note signed by the original recipient made no mention of the deferred payment loan while the Deed of Trust did. It was determined that the Note was incorrectly prepared in 1978. The City Attorney's office was requested to give an opinion on whether the EHA had legal recourse to collect the deferred payment loan. -6a- EHA BOC Regular Meeting 08/30/89 The City Attorney's office gave an opinion that the EHA could legally collect the full amount from the Deed of Trust even though it did not match the Promissory Note. Also, an application was taken that showed the daughter qualified as only low-income and not very low-income; she therefore would be required to make monthly payments on the loan. Commissioner Zieg asked what would happen if the Englewood Housing Authority operated strictly by the letter of the Note and Deed of Trust. The Executive Director responded that the EHA would go to the daughter and inform her <1> because the Deed of Trust states the deferred loan became due and payable upon sale or transfer of the property, and <2> because the mother quit-claim deeded the property to the daughter in 1986, that <3> the deferred loan funds were immediately due and payable to the EHA. However, the daughter claims she does not have the funds to immediately repay the deferred loan and furthermore cannot afford to make monthly payments on the deferred loan and has requested that the EHA forgive the deferred loan portion of rehab loan No. 32. Therefore, staff has recommended a compromise (based on the financial information supplied by the daughter) which is to require payments on the principal amount of the deferred loan at 01. interest rate for 60 months. Commissioner Zieg endeavor to stick of the Rehab Loan He recommended that felt it was important that the EHA should with the rules, regulations and procedures Program and not forgive the deferred loan. the EHA follow staffs' recommendation. ~9I19~ IT WAS NOVED BY COMMISSIONER BRADLEY L. ZIEG THAT THE TOTAL AMOUNT OF THE DEFERRED LOAN PORTION ($~,000) OF REHAB LOAN NO. 32 (HEREINAFTER REFERRED TO AS •THE LOAN"> BE RECOVERED FROM THE LOAN RECIPIENT'S DAUGHTER WHO RECEIVED THE PROPERTY REHABBED BY THE LOAN VIA QUIT-CLAIM DEED IN 1986 (HEREINAFTER REFERRED TO AS "THE DAUGHTER">. THE DAUGHTER'S LOAN SHALL HAVE A 60-MONTH TERM AT ZERO PERCENT (0%> INTEREST RATE. IT WAS FURTHER t10VED THAT AN ENTIRELY NEW NOTE AND NEW DEED OF TRUST BE WRITTEN AND EXECUTED BETWEEN THE EHA AND THE DAUGHTER WHICH CONTAIN THE PROVISIONS OF REPAYl"IENT OF THE LOAN TO THE ENGLEWOOD HOUSING AUTHORITY. IT WAS FURTHER MOVED THAT THE NOTE AND DEED OF TRUST CONTAIN LANGUAGE REQUIRING THE TOTAL LOAN AMOUNT, INCLUDING THE FULL AMOUNT OF THE DEFERRED LOAN, BECOME DUE AND PAYABLE UPON SALE OR CONVEYANCE OF THIS PROPERTY OR UPON REMOVAL OF THE OWNER FROM THE PROPERTY. COMMISSIONER NORLEEN NORDEN SECONDED THE MOTION. Ayes: Nays: Abstained: Absent: Burns, Berlin, Norden, Zieg None None Koltay The Chairman declared the motion carried. -6b- EHA BOC Regular Meeting 05/30/90 V/C Berlin action on accusations recipient of suggested that the Executive Director take this situation and not worry about of "harassment" from the daughter of the Rehab Loan 32. Commissioner Zieg suggested that the EHA Board support Janet Grimmett and the concept that rehab loans must be paid back and then proceed with foreclosure on this rehab loan. He further stated his desire that the Executive Director tell the Rehab Financial Specialist, Janet Grimmett, that the Board came forward unanimously to support her. IT WAS MOVED BY COMMISSIONER ZIEG THAT THE ENGLEWOOD HOUSING AUTHORITY CONTACT THE CITY OF ENGLEWOOD CITY ATTORNEY AND REQUEST THAT HE SEND A DEMAND FOR PAYMENT LETTER TO THE DAUGHTER OF THE RECIPIENT OF REHAB LOAN NO. 32 AND PROCEED WITH FORECLOSURE ON REHAB LOAN NO. 32 IF NO SATISFACTORY RESPONSE IS RECEIVED FROM THE DAUGHTER. Ayes: Nays: Abstained: Absent: Burns, Berlin, Koltay, Norden, Zieg None None None The Chairman declared the motion carried. F. Authorization for In-house Training Session. The E/D explained that several years ago, he had the opportunity to attend a one-day workshop which taught him how to deal with people through work by utilizing some techniques in transactional analysis. The E/D stated that this training still stands as the single, best training he had ever attended. He explained that he recently discovered that the man who gave the training, Abe Wagner, still gives training seminars in the Denver Area. Staff has expressed a high degree of interest in attending a workshop of this nature. The E/D stated that the one-day (seven-hour) workshop would cost $2,050.00, and because this amount was not included in line-item budget for training, the expenditure would require board approval. The cost would be for up to 20 persons to attend the workshop and the E/D expressed his desire that Board members also attend if possible. -7- EHA BOC Regular Meeting 05/30/90 IT WAS MOVED BY COMMISSIONER ZIEG TO AUTHORIZE THE EXPENDITURE OF $2,050.00 FOR THE IN-HOOSE TRAINING SESSION TO BE CONDUCTED BY ABE WAGNER ON THE PROPOSED DATE OF JOLY 13, 1990, PLUS THE ADDITION OF $300.00 TO OSE IN ACQUIRING AN APPROPRIATE PLACE IN WHICH TO HOLD THE WORKSHOP AND TO COVER OTHER EXPENSES RELATING TO THE WORKSHOP. VICE CHAIRMAN BERLIN SECONDED THE MOTION. Ayes: Nays: Abstained: Absent: VIII. Burns, Berlin, Koltay, Norden, Zieg None None None The Chairman declared the motion carried. FINANCIAL REPORT Commissioner performance covered by packet. Zieg asked how the E/D felt about the financial of the agency through the four-month period the financial reports as presented in the Board The E/D stated that the agency is over budget on several line items. He stated that he had placed a 60-day freeze on spending for office supplies. He further stated that he had some major concerns on the WAND sale units expenditures. Commissioner Zieg asked if there was an escrow fund to pay for maintenance and repairs on the office building. The E/D stated that the office building will not ever show a profit because the EHA does not charge itself any rent to use the office space. Discussion ensued regarding the EHA charging itself rent for the space used in the office building. The E/D stated that Section 8 New Construction, Section 8 Existing, and Market Rental Programs could budget for rent payments on office building space in fiscal year 1991. He reminded the Board that when the original budget for the office building was done, there was a $34,000 subsidy from Simon Center which was, in effect, "rent". He added that because of Public Housing's financial status, their portion of any allocated rent might have to be forgiven. Commissioner Zieg suggested that the EHA might be charged a $7.00/square foot rental rate, and requested that information be made available at the next Board meeting on dollar amounts for a possible office building escrow fund. -8- EHA BOC Regular Meeting 05/30/90 IX. x. CONSENT AGENDA There was nothing presented under Consent Agenda for the consideration of the Commissioners. GENERAL DISCUSSION A. Commissioners' Choice Commissioner Norden stated she would like to ask the Board to pay for her registration to the NAHRO Commissioners Conference to be held in San Antonio plus two days per diem. The Board agreed to pay the registration fee for Norleen Norden plus two days per diem expense to attend the NAHRO Commissioners Conference in San Antonio. Commissioner Norden expressed her desire to be reappointed to the Englewood Housing Authority Board of Commissioners upon the expiration of her term on July 1, 1990. The Board expressed its desire to have Ms. Norden on the Board again and and directed the Executive Director to write a letter to City Council for signature by Chairman Thomas J. Burns expressing the desire of the EHA Board to have Ms. Norden reappointed for another term and stating {with superfluous adjectives) what an excellent job Ms. Norden has done serving on the EHA's Board. Commissioner Koltay informed the Board on what had happened to the Teen Leisure Center when Gary Kozacek had presented City Council with letters of endorsement {one from the EHA) and asked Council to adopt a Resolution supporting the TLC. He stated that Council did support the Teen Leisure Center, but did not adopt the Resolution as presented by Mr. Kozacek without first making some changes to it. B. Director's Choice The E/D informed the National Conference to Minnesota this fall commissioners who wish to commissioners of the NAHRO be held in Minneapolis, and suggested that the attend register early. The E/D also informed the commissioners of the NAHRO Mountain Plains Regional Conference to be held in Cheyenne, Wyoming, in July. -9- EHA BOC Regular Meeting 05/30/90 XI. ADJOURNMENT H Q .I .X Q :If IT WAS MOVED BY COMMISSIONER KOLTAY THAT THE REGULAR MEETING OF THE ENGLEWOOD HOUSING AUTHORITY BOARD OF COMMISSIONERS BE ADJOURNED. Ayes: Nays: Abstained: Absent: Burns, Berlin, Koltay, Norden, Zieg None None None The Chairman declared the motion CARRIED and the Regular Meeting of the Englewood Housing Authority Board of Commissioners adjourned at 8:30 p.m. Secretary -10- nm1/EHAB0CMinutes/ehamin053090