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HomeMy WebLinkAbout1990-12-06 EHA MINUTESI. II. III. ENGLEWOOD HOUSING AUTHORITY Board of commissioners Regular Meeting December 6, 1990 CALL TO ORDER The Regular Meeting of the Englewood Housing Authority Board of Commissioners was called to order at 6:00 p.m. by Vice Chairman R. J. Berlin Members Present: Members Absent: Also Present: STUDY SESSION R. J. Berlin, Vice Chairman Roger Koltay, Commissioner Norleen Norden, Commissioner Bradley Zieg, Commissioner Thomas J. Burns, Chairman Paul Malinowski, Executive Director Geula Sherman, Leased Housing Manager Holly Lewis, Housing Technician Mary A. Ryan, Recording Secretary The Executive Director, Paul Malinowski, stated that Geula Sherman and Holly Lewis were present at this meeting to inform the Board pf Commissioners why the EHA would be operating outside of its jurisdictional boundaries within a short period of time. Ms. Sherman is the Leased Housing Manager and, as such, in charge of the Section 8 Existing Certificate and Section a Existing Housing Voucher programs. Ms. Sherman gave an informative overview of the reasons why portability was introduced into the Section 8 Existing program, i.e., (1) employment opportunities; (2) medical need; (3) immediate family outside of the jurisdiction of the PHA who can give support to or who need(s) support from the Section 8 Existing participant. A map of the Metropolitan Statistical Area (MSA) was given to the Board members present. It was pointed out by Ms. Sherman that within a year it was probable that the EHA could be operating outside of its jurisdiction in Boulder, Greeley or Colorado Springs. one year after that, since Voucher and Certificate holders are eligible to transfer once a year, the EHA could be operating in areas which were contiguous with those cities, e.g. Cheyenne, Wyoming. 111111/EHABOCMinutes/120690ehaminutes EHA BOC Regular Meeting 12/06/90 Ms. Sherman and Ms. Lewis were asked various questions by the Board Members, e.g., if Englewood would become a "magnet" for certificate holders and how much time staff would be spending on this issue and if the administrative fee earned by that program would cover the expenses incurred. Ms. Lewis discussed the implications of certificate portability with the Board. She stated that Englewood is seen as a desirable area to relocate in because of its low crime rate, lower rents, and good schools. The issue of staff time was discussed extensively. Staff time consumed by the paperwork involved with administration of the program and less personal contact with program participants were seen as inevitable. Other inherent problems would be additional costs for postage, car maintenance, gasoline, and long distance phone charges. Commissioner Norden stated that another management issue which could come into play was the liability of administering a portable certificate in a community which has not agreed with the issuing PHA that it can be there. The Board requested a report of incoming and outgoing portable certificates in future reports. The Executive Director stated the EHA has contacted its attorney on this issue. Metropolitan area housing attorneys have met to discuss this issue, and EHA's legal counsel, Jim Wagenlander, stated that he felt the EHA would have to comply since federal law supersedes state law in this instance. The Executive Director stated that some communities are refusing to go along with the portability of certificates. Discussion ensued regarding Housing Quality Standards inspections and violations. Ms. Sherman and Ms. Lewis were thanked for their presentatio.n. -2- EHA BOC Regular Meeting 12/06/90 IV. MINUTES IT WAS MOVED BY COMMISSIONER KOLTAY TO APPROVE THE MINUTES OF THE REGULAR MEETING OF THE ENGLEWOOD HOUSING AUTHORITY BOARD OF COMMISSIONERS HELD OCTOBER 31, 1990, AS PRESENTED. COMMISSIONER NORDEN SECONDED THE MOTION. Ayes: Nays: Abstained: Absent: v. VI. Berlin, Koltay, Norden, Zieg None None Burns The Vice 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 December 6, 1990. DIRECTOR'~ REPORT A. Narrative Report The Executive Director stated that the first audit of FY '89 received had been sent back to Denton, Netherton & Co., P.C., for a complete reissue because HUD had concurred with the concerns expressed at the October 31, 1990 board meeting. The revised FY '89 audit had been received on this date and was reviewed by the Executive Director and consulting accountant Steve Stranger. The Executive Director stated he had a list of 26 concerns with the revised audit. He stated that there was no exit interview given with the revised audit and no draft for the Executive Director and accountant to review prior to final printing. The Board members would not accept copies of the revised audit. IT WAS MOVED BY COMMISSIONER ZIEG TO DIRECT THE EXECUTIVE DIRECTOR TO DO WHATEVER IS NECESSARY TO GET A CORRECT AUDIT OF THB BNGLBWOOD HOUSING AUTHORITY'S BOOKS OF ACCOUNT FOR THE FISCAL YEAR ENDING DECEMBER 31, 1989. COMMISSIONER NORDEN SECONDED THE MOTION. Ayes: Nays: Abstained: Absent: Berlin, Koltay, Norden, Zieg None None Burns The Vice Chairman declared the motion carried. -3- EHA BOC Regular Meeting December 6, 1990 VII. Commissioner Norden stated that at the last Rehab Loan Committee meeting, there were two requests for bank loans from middle income persons who came in for loans. These applicants resulted from the targeting of Census Tract 57. Commissioner Koltay stated it was encouraging to have more people using the rehab money. Discussion ensued regarding collection of past due rehab loan amounts. DISCUSSION ITEMS, MOTIONS AND RESOLUTIONS: A. Renewal of Management Contract with EHDC The Executive Director explained that approximately two years ago, the EHA had entered into a management contract with the Englewood Housing Development Corporation to manage their properties. He stated that the EHDC now owns 14 properties with 19 units including all WAND rentals. A flat fee per unit is received by the EHA for this service. The Executive Director recommended renewing the annual contract for 1991 under the same terms and conditions as the 1990 arrangement. The EHDC board had already authorized the contract extension on their part pending EHA board approval. M Q ~ .! Q Ii IT WAS MOVED BY COMMISSIONER NORDEN TO APPROVE EXECUTING A ONE-YEAR EXTENSION OF THE MANAGEMENT CONTRACT WITH THE ENGLEWOOD HOUSING DEVELOPMENT CORPORATION FOR 1991 UNDER THE SAME TERMS AND CONDITIONS AS THE MANAGEMENT CONTRACT FOR 1990. COMMISSIONER KOLTAY SECONDED THB MOTION. Ayes: Nays: Abstained: Absent: Berlin, Koltay, Norden, Zieg None None Burns The Vice Chairman declared the motion carried. B. Write-Off of Bad Debts The Executive Director reminded the board that each year the EHA writes off tenant accounts receivable from its financial books that are unlikely to be collected. He stated that in this way, the debt will no longer be shown as a tenant account receivable but will be transferred to the expense part of the ledger as a "bad debt" expense. -4- EHA BOC Regular Meeting 12/06/90 M Q ~ .I Q H IT WAS MOVED BY COMMISSIONER NORDEN TO ADOPT RESOLUTION NO. 20, SERIES OP 1990 1 AUTHORIZING THE WRITE-OFF OP BAD DEBTS FROM THE LOW RENT PUBLIC HOUSING PROGRAM. COMMISSIONER ZIEG SECONDED THE MOTION. Ayes: Nays: Abstained: Absent: Berlin, Koltay, Norden, Zieg None None Burns The Vice Chairman declared the motion carried. IT WAS MOVED BY COMMISSIONER KOLTAY TO ADOPT RESOLUTION NO. 21, SERIES OP 1990, AUTHORIZING THE WRITE-OFF OP BAD DEBTS FROM THE SECTION 8 NEW CONSTRUCTION PROGRAM (SIMON CENTER). COMMISSIONER ZIEG SECONDED THE MOTION. Ayes: Nays: Abstained: Absent: Berlin, Koltay, Norden, Zieg None None Burns The Vice Chairman declared the motion carried. c. Write-Off of Simon Center Trustee Bond Fund The Executive Director explained that since 1977, Simon Center's financial books have shown an asset line item called the Trustee Bond Fund. In 1989 and 1990, the EHA's auditors insisted that the EHA research this item. None of the banks the EHA deals with show any separate account in this name or in any similar name. One theory the auditor had is that this may be unclaimed interest due the bondholders of Simon Center bonds. A check with the EHA's trustee, however, revealed only a small amount of money that is unclaimed, and the trustee felt the EHA really didn't have right to a claim on it yet. The amount currently is valued at $7,166.36. The Executive Director stated that the current auditor recommended the EHA write this line item off of Simon Center's books, but he stated this does not mean the EHA cannot, at a later time, lay claim to the fund. -s- EHA BOC Regular Meeting 12/06/90 MQ~~Q~ IT WAS MOVED BY COMMISSIONER ZIEG TO ADOPT RESOLUTION NO. 22, SERIES OP 1990, AUTHORIZING THE WRITE-OFF OF THE LINE ITEM KNOWN AS THE SIMON CENTER TRUSTEE BOND FUND FROM SIMON CENTER'S GENERAL LEDGER IN THE AMOUNT OF $7,166.36. COMMISSIONER NORDEN SECONDED THE MOTION. Ayes: Nays: Abstained: Absent: Berlin, Koltay, Norden, Zieg None None Burns The Vice Chairman declared the motion carried. D. Write-Off Public Housing Rent The Board was reminded that earlier in 1990, they had authorized charging each program the EHA administers office rent to be ·paid to the Office Building fund. All programs have paid their portion which is allocated as an indirect expense under the revenue method of expense allocation. The only exception was the Public Housing Program. This expense has been accrued but no payments have been made by that program. This was agreed to by the Board with the understanding that we would assess at the end of the year whether or not Public Housing had adequate funds to pay the accrued expense. The Executive Director stated that because a substantial deficit is projected in the revised 1990 operating budget for Pubic Housing, he recommended that the Board forgive the entire payment due from this program for 1990. He stated this would save that program $4,296 and reduce the projected deficit by that amount. He stated that the unfortunate flip-side to this would be that the Office Building Fund would not see this revenue but at this time can absorb the loss better than Public Housing can absorb the payment. IT WAS MOVED BY COMMISSIONER ZIEG TO ADOPT RESOLUTION NO. 23, SERIES OP 1990, AUTHORIZING THE WRITE-OFF OP ACCRUED OFFICE RENT PAYABLE TO THE OFFICE BUILDING FUND IN THE PUBLIC HOUSING PROGRAM IN THE AMOUNT OF $4,296 AS WELL AS THE WRITE OFF OF THE CORRESPONDING AMOUNT RECEIVABLE IN THE OFFICE BUILDING FUND. COMMISSIONER KOLTAY SECONDED THE MOTION. Ayes: Nays: Abstained: Absent: Berlin, Koltay, Norden, Zieg None None Burns The Vice Chairman declared the motion carried. -6- EHA BOC Regular Meeting 12/06/90 E. Write-Off of WAND Departments on General Ledger The Executive Director reminded the Board that at the beginning of 1989, the EHA implemented a new computerized accounting system at the agency. As part of that system, "departments" to departmentalize our accounting of funds were set up for all programs. The EHA no longer owns any rental properties in the WAND project since these were all sold to the EHDC in April of 1990. The WAND sales units project is also complete. The EHA would like to close these two departments out as of December 31, 1990, from its books of account so that they are not carried over into 1991 as inactive departments. All of WAND's remaining assets, liabilities, and equities would be transferred to Simon Center through debit and credit entries that would net all figures in these departments. Steve Stranger, the EHA's consulting accountant concurs with this action. IT WAS MOVED BY COMMISSIONER ZIEG TO ADOPT RESOLUTION NO. 24, SERIES OP 1990, AUTHORIZING THE CLOSEOUT OF THE WAND DEPARTMENTS (RENTALS - DEPARTMENT 600; AND SALES -DEPARTMENT 650) FROM THE ENGLEWOOD HOUSING AUTHORITY'S BOOKS OF ACCOUNTS. COMMISSIONER NORDEN SECONDED THE MOTION. Ayes: Nays: Abstained: Absent: Berlin, Koltay, Norden, Zieg None None Burns The Vice Chairman declared the motion carried. F. Action on Rehab Loan No. 192 Foreclosure This loan is 180 days delinquent and thus requires Board review. The Executive Director stated that this loan is a somewhat unique situation in that one-half of the loan originated from CHFA's Co-Help Loan Program. CHFA's representative has indicated that they feel sufficient equity appears to be in the property to justify proceeding with foreclosure. The Executive Director stated that CHFA is not taking into account any additional rehab costs that might be incurred. The City Attorney had sent the current homeowner a demand for payment letter as directed by the Board at the October 31, 1990 meeting. No response was received by the deadline of November 29. The homeowner stated they would cure the first mortgage by October 29 and the EHA's loan by November 15, but neither action has taken place. -7- EHA BOC Regular Meeting 12/06/90 Cost figures were presented to the Board for review. The Executive Director stated that the figures include any potential rehab costs. He further that the interior condition is unknown. rehab costs would increase the sale price, but dollar for dollar. do not stated Any not Several options were discussed. Option No. 1 would be to convince CHFA that the property is not worth foreclosing on and to forgive their portion of the loan. Option No. 2 would be to draw from the Rehab Deficiency .Reserves to pay CHFA's portion of the loan off and not pursue redemption. The EHA would also write off its portion of the deferred payment loan. Option No. 3 would be to redeem the property and attempt to recover as much as possible. If foreclosure is minimal, the EHA might recoup a portion of its original loan. It was the recommendation of the Rehab Financial Specialist that the EHA attempt to convince CHFA to forgive their portion of the loan and then not redeem the property. It was felt that any funds spent towards the rehab of this property to make it marketable would not be recovered from the sale, nor would the EHA recover any monies spent towards curing the First Mortgage. It was further recommended that if Option No. 1 was the Board's choice and not successful, then Option No. 2 be used. Discussion ensued among the Board members present. Commissioner Koltay asked if the EHA could assume the First Mortgage and then turn the unit into a rental. It was pointed out that the rehab costs could possibly be in excess of 50% of the recoverable costs. Commissioner Koltay stated he would like the EHA to write to Savings of America (the First Mortgage holder) to see if the EHA can assume the mortgage and then use the unit as a rental. -8- EHA BOC Regular Meeting 12/06/90 IT WAS MOVED BY COMMISSIONER KOLTAY TO WRITE TO SAVINGS OP AMERICA, TBB FIRST MORTGAGE BOLDER OF THE RECIPIENT OF REHAB LOAN 192, TO SEB IP THEY WOULD ALLOW THE ENGLEWOOD HOUSING AUTHORITY TO ASSUHB TBB MORTGAGE. IT WAS FURTHER MOVED TO REQUEST THAT CBFA WRITE OPP THEIR PORTION OP TBB REHAB LOAN UNDER THE COBELP LOAN PROGRAM. IT WAS PURTBER MOVED THAT LEGAL COUNSEL REVIEW THIS PROSPECTIVE COURSE OP ACTION. COMMISSIONER ZIEG SECONDED THE MOTION. Ayes: Nays: Abstained: Absent: VIII. IX. x. Berlin, Koltay, Norden, Zieg None None Burns The Vice Chairman declared the motion carried. FINANCIAL REPORT Because of the presentation of detailed financial information at the November 28, 1990, Budget/Finance Meeting, no financial information was presented at this meeting. CONSENT AGENDA A. Letter from HUD Secretary Jack Kemp to the Chairman of the Englewood Housing Authority Board of Commissioners was noted and briefly discussed. B. Letter from Executive Director Malinowski to the Englewood Planning Commission in response to the Housing element of the Proposed Comprehensive Plan for the 1990's was discussed. GENERAL DISCUSSION A. Commissioners' Choice Commissioner Koltay wanted to know if permits and inspections for the EHDC's WAND project have been handled well and if the relationship with the City of Englewood Building Department was a good one. -9- EHA BOC Regular Meeting 12/06/90 Commissioner Zieg brought up for discussion the investment of the EHA's reserve funds. Lengthy discussion ensued regarding developing new investment policies and procedures for the EHA. Information was given to the Board from Colotrust {Colorado Local Government Liquid Asset Trust). Commissioner Zieg stated that American Money Management helps governmental and quasi-governmental agencies develop policies and procedures for handling their money in order to reach certain financial goals. The only billable hours billed by American Money Management would be upfront costs to develop the initial cash management package. These costs would not be in excess of $500. George Nielsen of American Money Management recommended Colotrust as an investment vehicle for the EHA. Lengthy discussion ensued. Commissioner Koltay stated that he felt a portion of the EHA's funds should be kept in local banks for reinvestment, and he felt we should get some requests for proposals from more organizations who specialize in the investment of public funds. IT WAS MOVED BY COMMISSIONER ZIEG TO ENGAGE AMERICAN HOBBY MAlfAGBMBNT INC. TO CREATE AH INVESTMENT POLICY FOR THE ENGLEWOOD HOUSING AUTHORITY WHICH WOULD REMAIN IN THE CONTROL OF THE EXECUTIVE DIRECTOR FOR THE FISCAL YEAR ENDING DECEMBER 31 1 1991. COMMISSIONER KOLTAY SECONDED THE MOTION. Ayes: Nays: Abstained: Absent: Berlin, Koltay, Norden, Zieg None None Burns The Vice Chairman declared the motion carried. -10- EHA BOC Regular Meeting 12/06/90 XI. B. Director's Choice The Executive Director stated that City Council had approved the application for '91 CDBG funds in the amount of $420,000. Of this amount, $180,000 would be for single-family homes rehab; $165,000 could go to complete the WHERE project; $50,000 would be for the Urban Homestead Program; and $25,000 would be to cover administrative costs. The Executive Director stated that for the first time in two and one-half years when the contract with fee accountant R. J. Sylvester had been terminated in February 1988, the EHA's books of account are current. ADJOURNMENT II Q ~ X Q Ii IT WAS MOVED BY COMMISSIONER KOLTAY TO ADJOURN THE REGULAR MEETING OP THE ENGLEWOOD HOUSING AUTHORITY BOARD OP COMMISSIONERS HELD DECEMBER 6 1 1990, AT 8:50 P.M. R. J,,(,· Berlin . / . Vice Chairman -11- Mary Af_ Ryai;r' Recording Secretary