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HomeMy WebLinkAbout1991-01-30 EHA MINUTES.. I. II. III. IV. ENGLEWOOD HOUSING AUTHORITY Board of commissioners Regular Meeting January 30, 1991 CALL~ ORDER The Regular Meeting of the Englewood Housing Authority was called to order at 6:05 p.m. on Wednesday, January 30, 1991, by Chairman Thomas J. Burns, at 3460 South Sherman Street, Suite 103, Englewood, Colorado, 80110. Members Present: Members Absent: Also Present: Thomas J. Burns, Chairman Norleen Norden, Commissioner Roger Koltay, Commissioner Bradley Zieg, Commissioner R. J. Berlin, Vice Chairman* Paul Malinowski, Executive Director Mary A. Ryan, Recording Secretary *vice Chairman R. J. Berlin was absent until 7:30 p.m. STUDY SESSION There was no study session at the Regular Meeting of the Englewood Housing Authority Board of Commissioners held January 30, 1991. MINUTES A. Budget/Finance Meeting held November 28, 1990 M O T .! 0 H IT WAS MOVED BY COMMISSIONER KOLTAY TO APPROVE AS PRESENTED THB KIIIUTBS OF THE ENGLEWOOD HOUSING AUTHORITY BUDGET/FIHAHCB MEETING HELD BOVBXBBR 28, 1990. COMMISSIONER BORDEN SECONDED THE MOTION. Ayes: Hays: Al:>stained: Al:>sent: Burns, Koltay, Borden, Zieg Bone Hone Berlin The Chairman declared the motion carried. nm1/minutes/013091ehameeting .. EHA BOC Regular Meeting 01/30/91 B. Regular Meeting Held December 6, 1990 Commissioner Norden pointed out a correction to the Minutes in the Study Session, second paragraph: ~= ... the liability of administering a portable certificate in a community which has agreed with ... l'.Q: ••• the liability of administering a portable certificate in a community which has nQt agreed with .•• HQTIQB IT WAS MOVED BY COMMISSIONER KOLTAY TO APPROVE AS AMENDED THE MINUTES OP THE REGULAR MEETING OP THE ENGLEWOOD HOUSING AUTHORITY BOARD OP COMMISSIONERS HELD DECEMBER 6, 1990. COMMISSIONER NORDEN SECONDED THE MOTION. Ayes: Nays: Abstained: Absent: v. VI. Note: Burns, Koltay, Norden, Zieg None None Berlin The Chairman declared the motion carried. PRE-SCHEDULED VISITORS There were no pre-scheduled visitors to the Englewood Housing Authority Board of Commissioners Regular Meeting held January 30, 1991. DIRECTOR'~ REPORT A. Narrative Report The Executive Director stated that the Englewood Housing Authority has received an offer on 2801 South Sherman Street which will be discussed later in this meeting. The Executive Director further stated that he has been in contact with a new collection agent, Machol, Davis & Michael, P.C. and an agreement was entered into with this company. The Narrative Report will be attached to and made a part of these Minutes as Exhibit HA". B. Program Reports Briefly discussed. -2- EHA BOC Regular Meeting 01/30/91 VII. DISCUSSION ITEMS, MOTIONS~ RESOLUTIONS: A. Adoption of Resolution No. 1, Series of 1991, Authorizing a Revised Investment Policy The Executive Director stated that the proposed Investment Policy is a result of the EHA's continuing effort to update and complete a policies and procedures manual for the agency. This policy is the result of action taken at the December 6, 1990, EHA Board Meeting which allowed him to retain George Nielsen of American Money Management Associates, Inc., as a consultant for this policy. Mr. Nielsen drafted the policy then revised it after meeting with the Executive Director, Commissioner Zieg and the EHA's legal counsel, Jim Wagenlander. This policy is much more comprehensive than the previous policies of 1982 and 1985 and corresponds to updated HUD regulations. The Executive Director pointed out that Jim Wagenlander was of the opinion that there was no legal requirement concerning headquarters as addressed in the Investment Policy presented. Mr. Wagenlander suggested that in the section on Time Certificates of Deposit a change be made from the wording "headquartered in Colorado" to "operating under the laws of this state." The Board concurred that this new wording would be less restrictive. Commissioner Zieg stated that the proposed Investment Policy was an extremely safe investment document. IT 1fAS MOVED BY COMMISSIONER ZIEG TO ADOPT RESOLUTION NO. 1, SERIBS OF 1991, REPEALING RESOLUTION NO. 1, SERIES OF 1985, AND RESOLUTION NO. 16, SERIES OF 1982, AND INSTITUTING THE NEW INVESTMENT POLICY AS PRBSBNTED. COMXISSIONBR KOLTAY SECONDED THE MOTION. Ayes: Nays: llstained: AJ:,sent: Note: Burns, Koltay, Norden, Zieg None None Berlin The Chairman declared the motion carried. The Investment Policy adopted by the motion above will be attached to and made a part of these Minutes as Exhibit "B". -3- EHA BOC Regular Meeting 01/30/91 B. Adoption of Resolution No. 2, Series of 1991, Authorizing Membership in COLOTRUST. Discussion ensued regarding COLOTRUST. Commissioner Zieg stated that COLOTRUST is a vehicle for Colorado Government entities to invest in Treasury Obligations and still have their money very liquid. Commissioner Norden wanted to know what relationship Mr. Nielsen of American Money Management Associates, Inc. had to COLOTRUST. Commissioner Zieg stated that Mr. Nielsen had no relationship with COLOTRUST. HQ~XQH IT WAS MOVED BY COMMISSIONER KOLTAY TO ADOPT RESOLUTION NO. 2, SBRIBS OP 1991, AU'l'BORIZING THE ENGLEWOOD HOUSING AUTHORITY TO JOIN WI'l'B OTHBR LOCAL GOVERNMENT ENTITIES AS A PARTICIPANT IN THE COLORADO LOCAL GOVERNMEJIT LIQUID ASSET TRUST (COLOTRUST) IN ORDER TO POOL FUNDS FOR INVESTMENT. COMMISSIONER ZIEG SECONDED THE MOTION. Ayes: Nays: Abstained: Absent: Burns, Koltay, Norden, Zieg None None Berlin The Chairman declared the motion carried. c. Approval of Revised General Depository Agreement with First Interstate Bank of Englewood. The Executive Director stated that this was the third part of the investment package being covered at this meeting of the EHA Board of Commissioners. He stated that HUD required this form to be executed with the bank in which Public Housing and/or Section 8 Existing funds were kept. This form was also executed in 1984, but several changes have been made to the Agreement per HUD regulations and the EHA must now enter into a revised agreement with First Interstate Bank of Englewood. Although similar in nature to the 1984 document, this new version has stricter collateral requirements and a safekeeping receipt requirement. First Interstate Bank of Englewood had reviewed the revised version and Thomas A. Dinkel, Vice President at First Interstate had expressed a concern with some of the wording. -4- EHA BOC Regular Meeting 01/30/91 The Executive Director stated that this item could be tabled in order to allow First Interstate Bank to gain clarification on the collateralizing and safekeeping receipt portions of the revised agreement. IT WAS MOVED BY COMMISSIONER ZIEG TO TABLE ENTERING INTO A REVISED GENERAL DEPOSITORY AGREEMENT WITH FIRST INTERSTATE BANX OF ENGLEWOOD IB ORDER TO ALLOW FIRST INTERSTATE BANX OF ENGLEWOOD TO GAIN CLARIFICATION OB THB COLLATERALIZING AND SAFEKEEPING RECEIPT REQUIREMENTS OF THE REVISED AGREEMENT. D. Approval of Audit Bill for Revised FY'89 Audit The Executive Director stated that a third version of the FY '89 audit was received on January 4, 1991. Ron Schmidt and he had reviewed it and felt this issue was basically correct. A possible error had been encountered, but research will need to be done by the new auditor in order to correct the possible error. The Executive Director stated he was fairly satisfied with this version of the audit and felt that the EHA could now accept it and make payment in accordance with the contract. IT WAS MOVED BY COMMISSIONER ZIEG TO ACCEPT THE FY '89 AUDIT FROM DENTON, NETHERTON & COMPANY, P.C., AND AUTHORIZE PAYMENT OF FIFTY PERCBBT OF THB CONTRACT AMOUNT WITH THE BALANCE TO BE PAID UPON HOD'S WRITTEN ACCBPTABCB OF THE AUDIT. COMMISSIONER KOLTAY SECONDED THE MOTION. Ayes: Nays: Abstained: Absent: Burns, Berlin, Koltay, Norden, Zieg Bone None None Th• Chairman declared the motion carried. E. Approval of Contract for Fiscal Years 1990, 1991, and 1992. The Executive Director handed out a summary sheet of audit bids received. He stated that a pre-bid conference was held and those in attendance were allowed to review the EHA's books and ask questions regarding the bid specifications. Requests for proposals were sent to 25 firms and three firms sent back bids. -5- EHA BOC Regular Meeting 01/30/91 Julie Lucas, Chief Accountant with the City of Englewood, had helped him review the bids received and she felt that the three firms who responded were the three of the best governmental auditing firms in the state of Colorado. Key factors in reviewing the bids received were number of hours required to perform the audit and housing authority experience on the part of the firm and the lead auditor. The Executive Director called references. The Executive Director was recommending awarding the Contract for the EHA's audit on fiscal years ending December 31, 1990, 1991, and 1992 to Bondi & company based on their housing authority experience and the number of hours they would require to do the audit. HQ~XQB IT WAS MOVED BY COMMISSIONER ZIEG TO AWARD 'l'JIE CONTRACT POR AUDITING 'l'JIB ENGLEWOOD HOUSING AO'l'JIORITY POR PISCAL YEARS ENDING DECEMBER 31, 1990, 1991, AND 1992, TO BONDI AND COMPANY IN THE AMOUNTS SPECIPIED IN 'l'JIBIR BID. COMMISSIONER NORDEN SECONDED THE MOTION. Ayes: Nays: Abstained: Absent: Burns, Berlin, Koltay, Norden, Zieg None None None The Chairman declared the motion carried. Commissioner Koltay asked if the EHA has the right to discharge Bondi and Company if the agency is not pleased with their work. The Executive Director stated that the EHA did have such a right to do so. F. Action on Possible Purchase of West Hillside Lots. The Executive Director stated he had no recommendation on this item. Concern was expressed by some members of the Board of Commissioners over not having a complete plan in place when vacant land is purchased, i.e., house plans, cost, selling price, etc. Commissioner Zieg wanted to table this discussion until after the Goals portion of the Annual Meeting. The Board agreed this would be done. -6- EHA BOC Regular Meeting 01/30/91 G. Request of Investor to Provide Financing to Carmel Park Apartment Building. Commissioner Norden stated she felt she should disclose that her husband is an employee of the management company who manages these properties for the ownership entity that is applying for the loan. She stated that she would abstain from voting on this matter. Brief discussion ensued regarding Commissioner Norden's disclosure. The Executive Director explained the only reason this item was on the agenda for this Board Meeting is that a onetime only exception to the existing Rehab Loan Policy is being requested. Janet Grimmett, Rehab Finance Specialist, had informed the board that in December, 1990, she received an application for the Rental Rehab Program from Kinnickinnic Realty Company in the amount of $150,000 to rehabilitate 59 units in the Carmel Park Apartments. The owners of these apartments had been unsuccessful in securing the required matching funds needed to utilize Rental Rehab Program funds from three separate lenders. The needed matching funds could be available through the Rehab Loan Program bank money, but current Rehab Loan Program Policy defines eligible properties as "residential properties containing~ dwelling units QI: less located within the City of Englewood and not located in a designated flood plain area." The proposed rehabilitation construction would convert 16 one-bedroom units into eight 3-bedroom, two bath units plus rehab an additional three studio units, 6 one-bedroom units and 34 two-bedroom units. The total project cost is estimated by the owner at $300,000. Ms. Grimmett stated she had received verbal approval from the State of Colorado for the $150,000 of Rental Rehab Program funds, with written approval promised by the end of January. The RRP funds awarded by the State must be spent by the end of April, 1991, by HUD stipulation. This project will not be funded without the owners securing the necessary matching funds. She was asking the Board to review the Rehab Loan Program policies and make the onetime only exception and grant Kinnickinnic Realty Company authorization to apply to the Rehab Loan Program for the $150,000 matching loan at the current 10.8% interest rate in order to rehabilitate the 59 units located within the Carmel Park Apartment complex. -7- EHA BOC Regular Meeting 01/30/91 Lengthy discussion ensued regarding alternative financing to get the $150,000, the cost estimates to do the rehab work on these 59 units, the history of this stipulation in the Rehab Loan Program Policy, and what good may or may not come from the granting of this onetime waiver of policy. IT WAS MOVED BY COMMISSIONER ZIEG TO MAKE A ONE TIME ONLY EXCEPTIOH TO THE EXISTING REHAB LOAN PROGRAM POLICY BY GRANTING AUTHORIZATION TO KINNICKINNIC REALTY COMPANY TO APPLY TO THE REHAB LOAN PROGRAM FOR A $150,000 MATCHING LOAN AT THE CURRENT 10.8% INTEREST RATE FOR THB REHABILITATION OF 59 UNITS LOCATED WITHIN THE CARMEL PARK APARTMENTS COMPLEX. Note: Discussion ensued regarding asking the Rehab Loan Committee to look at the current condition of these properties and detail what work would be done with this money. Commissioner Berlin expressed some concern regarding the amount of the loan asked for and the number of units to be rehabbed. He wanted to know what work was going to be done with the money. Discussion also ensued regarding asking the Rehab Loan Committee what other types of information they would want to see in order to grant the loan. The Commissioners present wanted Roger Koltay to discuss this request with City Council since the City is a signatory on the Rehab Loan Policy, and the Rehab Loan Program is actually a City of Englewood program administered by the Englewood Housing Authority. Chairman Burns stated that these Minutes should reflect that the City of Englewood has to approve this requested waiver to policy. Commissioner Zieg withdrew his motion pending receipt of the additional requested information concerning what rehab work would be done with the loan and whether or not the City would agree to amend the Rehab Loan Program policy to allow for this onetime waiver. -a- EHA BOC Regular Meeting 01/30/91 HOT!QB IT WAS MOVED BY COMMISSIONER KOLTAY THAT A ONETIME ONLY EXCEPTION TO TBE EXISTING REHAB LOAR POLICY BE MADE IN ORDER TO GRANT AUTHORIZATION TO KIHNICKIHNIC REALTY COMPANY TO APPLY TO THE REHAB LOAR PROGRAM FOR A $150,000 MATCHING LOAR AT TBE CURRENT 10.8% INTEREST RATE FOR TBB REHABILITATION OF 59 OBITS LOCATED WITHIN THE CARMEL PARK APARTMBHTS COMPLEX. AFTER INVESTIGATION BY THE REHAB LOAR COMMITTEE, TBB BOARD REQUESTS THAT THE REHAB LOAR COMMITTEE'S RECOMMEHDATION COME BACK TO TBB ENGLEWOOD HOUSING AUTHORITY BOARD OF COMMISSIONERS BEFORE GRANTING FONDING FOR THE PURPOSE OF POLICY WAIVER. COMMISSIONER ZIEG SECONDED TBB KOTIOB. Ayes: Nays: Abstained: Absent: Burns, Berlin, Koltay, Zieg None Norden None The Chairman declared the motion carried. IT WAS MOVED BY VICE CHAIRMAH BERLIN TO RECESS THE REGULAR MEETIBG OF TBB ENGLEWOOD BOOBING AUTHORITY BOARD OF COMMISSIONERS HELD JAHOARY 30 1 1991, AT 7:35 P.H. IN ORDER TO CALL TO ORDER THE ANNUAL MEETING OF TBB ENGLEWOOD BOOBING AUTHORITY BOARD OF COMMISSIONERS TO BE HELD THIS SAME DATB. COMMISSIONER KOLTAY SECONDED TBE MOTION. Ayes: Nays: Abstained: Absent: Note: Note: Burns, Berlin, Koltay, Norden, Zieg None None None The Chairman declared the motion carried. The Regular Meeting of the Englewood Housing Authority was reconvened at the end of the Annual Meeting. A call of the roll indicated the following: Members Present: Members Absent: Also Present: Thomas J. Burns, Chairman Norleen Norden, Vice Chairman R. J. Berlin, Commissioner Roger Koltay, Commissioner Bradley Zieg, Commissioner None Paul Malinowski, Executive Director Mary A. Ryan, Recording Secretary F. Action on Possible Purchase of West Hillside Lots This item had been tabled until after the agency's goals for 1991 were discussed at the annual meeting. -9- EHA BOC Regular Meeting 01/30/91 Commissioner Zieg reiterated his position that it would be more advantageous for the EHA to purchase lots such as these with the plan of developing new houses on them. Commissioner Koltay wanted to recommend that these lots be looked at by the City of Englewood Community Development Department as a possible introduction into the new housing program Project BUILD and allow them to make the evaluation as to whether or not it would be beneficial to purchase these lots for future homebuilding. IT WAS MOVED BY ROGER KOLTAY TO RECOMMEND TO THE CITY OP ENGLEWOOD COMMtJNITY DEVELOPMENT DEPARTMENT THE THREE VACANT LOTS ON WEST HILLSIDE AVENUE POR POSSIBLE INCLUSION IN THE NEW HOUSING PROGRAM "PROJECT BUILD". COMMISSIONER ZIEG SECONDED THE MOTION. Ayes: Nays: Abstained: Absent: Burns, Norden, Berlin, Koltay, Zieg None None Nona The Chairman declared the motion carried. H. Review and Action on Rehab Loan No. 192 At the EHA Board Meeting held December 6, 1990, this matter was discussed. The Board wanted to know if this loan could be assumed. Savings of America, the first mortgage holder, stated that their loan is assumable at the current rate of 9.01 with PITI payments of $419.50. The cost to bring the loan current was $4,729.34 through January 15. This figure includes the cost of legal fees. The unpaid principal balance on the first mortgage is $42,193.70. Any discussion regarding assumption of the first mortgage was halted when the homeowners filed for Chapter 13 protection on January 4, 1991 with the Bankruptcy Court. The EHA was "stayed from commencing or continuing any action or enforcing any judgement or lien against the debtor(s) or property of the debtor's(s') estate from and after such date ••• 11 • The first mortgagor received the same order to sta~ their activities. The Public Trustee's Sale was . · postponed and the EHA has not received any notice setting a hearing date by the Bankruptcy court. CHFA has been notified of the filing of Chapter 13 protection. -10- EHA BOC Regular Meeting 01/30/91 The Assistant City Attorney for Englewood stated that the Bankruptcy Court could rule to dispose of the real estate in order to cure the secured and unsecured debts. This could result in the lien holders receiving less than full value of their notes. The Bankruptcy Court could also rule that the first mortgage holder could continue with their foreclosure, in which case, the EHA could cure their loan and file for its own foreclosure. Chairman Burns stated that Chapter 13 protection often times tries to save the house. He stated that the EHA should ultimately get a copy of the bankruptcy plan since we are a creditor. He further stated that part of Chapter 13 bankruptcy protection prevents altering the terms of a single family residential loan unless it is combined with some other loan, e.g. a commercial loan with a deed of trust in it. Therefore, part of the Chapter 13 bankruptcy protection plan could well be to pay the EHA as well as the first mortgage holder and cure any defaults. He also stated that in a Chapter 13 Bankruptcy, assets can be liquidated, and this may be what the debtor is doing. Commissioner Zieg asked the Chairman if he would look at the bankruptcy plan in this particular situation and make a recommendation. I. Review of Guidelines for New Housing Program A new housing program, Project BUILD, came about because of the Housing Task Force recommendation to purchase underutilized properties throughout the City and build new single-family homes on them. As part of its budget process, City Council set aside funds as seed money as well as some administrative money to implement Project BUILD. Richards. Wanush, the Director of Community Development and Paul Malinowski, the Executive Director of the Englewood Housing Authority, were asked to develop some program guidelines for this new program. The Executive Director had asked the Board of Commissioners to decide if the EHA should be involved in the administration of this new program and to review the draft program guidelines for any input to give the Englewood City Council at their joint meeting to be held on February 4. Discussion ensued regarding the wording in the proposed program guidelines. Changes were suggested, and it was agreed that the guidelines should be submitted to City Council on February 4. -11- EHA BOC Regular Meeting 01/30/91 HQ~IQH IT WAS MOVED BY COMMISSIONER ZIEG THAT THE ENGLEWOOD BOOBING AUTHORITY BECOME INVOLVED IN THE ADMINISTRATION OP PROJECT BOILD. VICE CHAIRMAN NORDEN SECONDED THE MOTION. Ayes: Nays: Abstained: Absent: Burns, Norden, Berlin, Koltay, Zieg None None None The Chairman declared the motion carried. J. 2801 South Sherman Street The Executive Director stated that the Building Department of the City of Englewood has required that a stairway be put in from the basement to the ground floor at this unit. The basement has its own access from the outside. The potential buyer wants to purchase this unit as a single family dwelling and wants the stairs put in. The Executive Director recommended that the EHA counter the potential buyer's offer of $69,900 with a purchase price of $71,900 and build the stairs inside and pay 2.75 points. The EHA had stipulated that before rehab the family purchasing this unit was to be an owner occupant and CHFA eligible. After rehab was complete, the buyer need only be an owner occupant. This family meets the CHFA income criteria anyway, but they last owned a house 2.5 years ago. IT WAS MOVED BY COMMISSIONER BERLIN TO COUNTER THE OPPER OP TBB POTBIITIAL PURCHASERS OP 2801 SOOTH SHERMAN STREET ($69,900) WITH AN OFFER OF $71,900, BOILD THE STAIRS INSIDE PROK THE BASEMENT TO THE FIRST FLOOR, AND PAY THE POINTS. COMMISSIONER KOLTAY SECONDED THE MOTION. Ayes: Nays: Abstained: Absent: Burns, Norden, Berlin, Koltay, Zieg None None None The Chairman declared the motion carried. -12- ERA BOC Regular Meeting 01/30/91 VIII. IX. x. XI. FINANCIAL REPORT There were no financial reports presented at this time due to the 1990 year-end closings currently being per:tormed. CONSENT AGENDA Consent Agenda items were noted with brief discussion. GENERAL DISCUSSION A. Commissioners' Choice Commissioner Koltay stated he had received a letter from a resident of the Scenic View area stating that the City was not moving fast enough in developing housing rather than industrial uses. He also mentioned a letter from a Waterford resident who stated the City of Englewood was giving too much priority to developing low-income housing and thus was doing a great disservice to the community. Commissioner Koltay stated that city Council is addressing political action committees and residency requirements for city employees. Commissioner Zieg urged strongly that City Council look at the dissatisfaction within the City of Denver over such residency requirements. Occasionally sending press releases to the City for publication in the Englewood Sentinel was briefly discussed. B. Director's Choice There was nothing discussed under this portion of the agenda. ADJOURNMENT The Regular Meeting of the Englewood Housing Authority Board of Commissioners was adjourned at 9:40 p.m. on Wednesday, January 30, 1991. Mary A. Ryan, Recording Secretary -13-