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HomeMy WebLinkAbout1991-03-27 EHA MINUTESI. * III. BBGLBWOOD HOUSIBG AUTHORITY Board of Commissioners Regular Meeting March 27, 1991 CALL TO ORDER The Regular Meeting of the Englewood Housing Authority Board of Commissioners was called to order at 6:25 p.m. on Wednesday, March 27, 1991, by Vice Chairman Norleen Norden, at 3460 South Sherman Street, Suite 103, Englewood, Colorado, 80110. 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 Thomas A. Dinkel, President, Englewood Housing Development Corporation Shannel Lorance, Vice President, Englewood Housing Development Corporation Beatrice Lane, Treasurer, Englewood Housing Development Corporation Paul Malinowski, Executive Director Mary A. Ryan, Recording Secretary Chairman Thomas J. Burns arrived at 6:35 p.m. STUDY SESSION The Executive Director introduced the Board of the Englewood Housing Development Corporation (EHDC). Thomas A. Dinkel, President, stated that the reason the EHDC Board was present was to bring the EHA Board of Commissioners up-to-date on where the EHDC is at the present time. mml/minutes/03279lehaminutes EHA BOC Regular Meeting 03/27/91 Mr. Dinkel stated that the WAND project is really on board. Of the eleven housing units which were to be rehabbed, there are ten presently available for rental, each of which are presently rented. The final unit is in the process of being rehabbed and should be available for rental by the end of April. He stated that at that time, the Colorado Housing and Finance Authority (CHFA) has committed to provide the permanent financing for this project. The EHA provided the pledge of the CD collateralizing the loan from First Interstate Bank of Englewood which, in part, financed the purchase and rehab of these units. When the CHFA permanent financing is in place, the debt will be serviced by the income from the properties less any expenses for utilities and maintenance. Detailed financial information was presented by the EHDC's Management Agent, and lengthy discussion ensued regarding the EHDC's rental units known as the Lincoln Four-Plex and the Dartmouth Duplex. The Lincoln Four-Plex has been difficult to lease. The rental incomes from these eight units (Lincoln Fourplex, Dartmouth Duplex, and Bannock Duplex) are not paying the expenses. The purchase price of these eight units, the history of how the EHDC acquired these units, the rehab costs and related debt service, expenses incurred, various refinancing scenarios, and possible remodeling of the Lincoln Four-Plex into a duplex were discussed at length. Mr. Dinkel opened for discussion the possible scenario of the EHA forgiving some of the rehab debt on these eight units and the pooling of the remaining debt on these units. He felt that refinancing the mortgages was not feasible because of the high loan-to-value ratios. Further discussion centered around the WAND project and the CD collateralizing the loan at First Interstate Bank of Englewood and the amount which would be owed to FIB of Englewood over and .above the CHFA permanent financing. Mr. Dinkel stated that the EHDC does not have the required cash for the closing with CHFA (approximately $25,000). Discussion ensued regarding the amount which the EHDC will be required to come to the closing with (tentatively set for May or June this year) and whether these funds could be a loan or a grant to the EHDC from the EHA. Commissioner Zieg felt the money for the closing could be in the form of a loan which could be forgiven sometime in the future; or at some time when rents for the WAND units become better, the loan for these funds could be paid back. The EHA Executive Director stated that when the EHA sold these properties to the EHDC, it was with a one-year carry back. -2- EHA BOC Regular Meeting 03/27/91 II Q ~ ! Q B IT WAS MOVED BY COMMISSIONER BERLIN TO EXTEND THE WAND CARRY BACK LOAN TO THE ENGLEWOOD HOUSING DEVELOPMENT CORPORATION FOR NINETY (90) DAYS OR UNTIL THE CLOSING ON THE ELEVEN WAND PROPERTIES, WHICHEVER OCCURS FIRST. COMMISSIONER ZIEG SECONDED THE MOTION. Ayes: Nays: Abstained: Absent: Burns, Norden, Berlin, Koltay, Zieg None Nona None The Chairman declared the motion carried. Mr. Dinkel stated that the EHDC has been working on its five-year goals. Vice President Shannel Lorance has been spearheading the development of these goals, and the EHDC will be getting back to the EHA on what these goals will be. The EHA Board agreed that they would very much like to discuss these goals when they are done. The EHDC Board thanked the EHA Board for asking them to this joint study session to discuss these important matters. Ms. Lorance and Ms. Lane left the EHA Board Meeting at this point. With the consent of the Board, the Chairman of the EHA Board of Commissioners moved to Agenda Item VII.A. under "Discussion Items, Rehab Policy Waiver, in order that Thomas A. Dinkel could be present. This item is in follow-up to prior EHA Board action concerning a waiver of the Rehab Loan Policy to allow the owners of the Carmel Park Apartments to apply for a loan. Specific information was given to the Rehab Loan Committee (RLC) for loan approval or denial. The RLC was very diligent in requesting additional information and reviewed large packets of financial information to assist them in making a determination. They requested additional input from Frank Barnett of Vectra Bank (a member of the Rehab Loan consortium of banks) who is also a former bank examiner for the Federal Reserve System. Finally, representatives of the ownership interests met with the RLC to answer the numerous questions members of the RLC had. The RLC approved the loan subject to a number of conditions. Because the Rehab loan would have been in a third position, the RLC went to great lengths to ensure this was as safe a loan as possible. (A copy of the letter to Kinnickinnic Realty dated March 14, 1991, detailing the conditions is attached and made a part of these Minutes as Exhibit "A".) -3- EHA BOC Regular Meeting 03/27/91 IV. Mr. Dinkel stated that to summarize briefly, this project involved bank funds and the banks expect the EHA to pay back these funds regardless of who the EHA lent these funds to. The banks' concern was if Kinnickinnic could actually service the debt. Lengthy discussion ensued regarding the details of the banks' concerns. Mr. Malinowski stated that Kinnickinnic Realty decided not to accept the rehab loan and instead provided a letter from Century Bank committing to a matching loan. Tom Dinkel asked if the Rental Rehab Program loan to Kinnickinnic Realty was going to go. The Executive Director of the EHA stated that the State of Colorado has approved the Rental Rehab loan and the letter from Century Bank will be acceptable proof of the match. The Rental Rehab Loan will be for $150,000 at three percent payable in ten years. MINUTES Correction to Page 6, Financial Report, second paragraph: change "currying" to "paying". M Q ~ 1. Q B IT WAS MOVED BY COMMISSIONER KOLTAY TO APPROVE THE MINUTES OF THE REGULAR MEETING OF THE ENGLEWOOD HOUSING AUTHORITY BOARD OF COMMISSIONERS HELD FEBRUARY 27,1991, AS CORRECTED. COMMISSIONER ZIEG SECONDED THE MOTION. Ayes: Nays: Abstained: Absent: v. Norden, Berlin, Koltay None Burns, Zieg None The Chairman declared the motion carried • .iRI-SCHEDULED VISITORS There were no pre-scheduled visitors at the Englewood Housing Authority board of Commissioners Regular meeting held March 27, 1991. -4- EHA BOC Regular Meeting 03/27/91 VI. Note: VII. DIRECTOR'§ REPORT A. Narrative Report The Executive Director stated that a meeting was scheduled for next Thursday, April 4, with George A. Nielsen, Senior Vice President of American Money Management Associates, Inc., Thomas A. Dinkel, Paul Malinowski, and First Interstate Bank of Denver to discuss investments and the HUD required Depositary Agreement. The Executive Director informed the EHA Board of Commissioners that the new employee who will serve as the program coordinator for Project BUILD, Jerry Nestler, was hired. Mr. Nestler has a very good combination of real estate and construction knowledge. His references spoke highly of him. The Executive Director reported that the Rocky Mountain News is doing a story on Project BUILD. Commissioner Koltay stated that this program is very positive and is seen as a very good program. 2801 South Sherman Street was discussed. The Executive Director said that the closing on the sale of this property was held March 15. The Directors Report for March 27, 1991, will be attached to and made a part of these Minutes as Exhibit "B". B. Program Reports The Occupancy Status Report was discussed concerning the Section 8 Existing Certificates portability issue. One question is how rent-reasonableness surveys will be conducted in areas where there is no local housing authority. All other reports noted with inconsiderable discussion. DISCUSSION ITEMS, MOTIONS A1i12 RESOLUTIONS: The Board moved forward in the Agenda to Item VII.B. since item VII.A. was covered earlier in the meeting. -5- EHA BOC Regular Meeting 03/27/91 B. Assumption of Amortized and Deferred Loan. Rehab Financial Specialist, Janet Grimmett, informed the Board through her memorandum dated March 8, 1991, that she had been notified that the daughter of a rehab loan recipient had received her mother's home upon the death of the rehab loan recipient. The daughter will be the owner/occupant of the home even though the title will be shared by the daughter and her four brothers. It was unknown at that date when the estate would be settled and a new deed issued. A small amortized loan at 7.0% interest plus a $5,000 deferred loan at 0% interest were due upon the death of the mother. The estate will not have the cash to pay off the loan. The daughter is requesting that she be allowed to assume her mother's note. The daughter is considered very-low-income and is eligible to assume the loan. The daughter has paid the March loan payment and is willing to continue making the payments through the original term which is May, 1993. The daughter is also willing to repay the deferred portion of the loan beginning May, 1991, if allowed a five-year term for repayment. Using the formula established by the RLC, the daughter can afford this additional debt. It was the recommendation of the Rehab Financial Specialist that the Englewood Housing Authority Board approve the assumption of the note and the repayment plan proposed by the daughter. IT WAS KOVBD BY COKKISSIONBR ZIEG TO APPROVB THE ASSUMPTION OP THE AMORTIZED PORTION OP REHAB LOAN NO. 24 BY THE DAUGHTER OP THE RECIPIENT OP THAT LOAN. IT WAS FURTHER KOVBD TO APPROVB THE REPAYMENT OP THE DEFERRED PORTION OP THIS LOAN BEGINNING KAY, 1991, WITH A PIVB-YEAR TERM FOR REPAYKBNT. VICB CHAIRMAN BORDEN SECONDED THE MOTION. Ayes: Bays: Abstained: Absent: Burns, Norden, Berlin, Koltay, Zieg Bone Bone Bone The Chairman declared the motion carried. -6- EHA BOC Regular Meeting 03/27/91 c. Adoption of Resolution Authorizing Write-Off of Uncollectible Tenant Accounts Receivables. ll Q ~ I Q II IT WAS MOVED BY COHHISSIOHER ZIEG TO ADOPT RESOLUTION NO. 3, SERIES OF 1991, AtJ'rBORIZING THB WRITB-OFF OF UNCOLLECTIBLB TENAN'l' ACCOUNTS RECEIVABLES FROM THB SIMON CENTER PROGRAM. COHHISSIONER BERLIN SECONDED THB MOTION. Ayes: Nays: Al>stained: Al>sent: VIII. IX. x. Burns, Norden, Berlin, Koltay, Zieg None None None The Chairman declared the motion carried. FINANCIAL REPORT The Executive Director pointed out that there was a Table of Contents added to the Financial Report packet. The Executive Director explained the "New Certs" or Fund 212 Certificates which are the first project of certificates which have been renewed by HUD and which HUD is requiring the PHAs to keep separate books of account on. Commissioner Zieg asked if there was a consolidated income statement available for a month's period. CONSENT AGENDA A. "HUD budget offers cities chance to ease housing shortages" article from Nation's Cities Weekly of February 11, 1991, noted with brief discussion • . _ -·· GENERAL DISCUSSION A. Commissioners' Choice Commissioner Koltay stated that Janet Grimmett had requested additional funding to clean up the Rehab Waiting List in the amount of $75,000. -7- . . EHA BOC Regular Meeting 03/27/91 XI. He reported that the City of Englewood had granted this request and a transfer of $75,000 from the General Fund to the Housing Rehab Fund was made in order to facilitate the completion of the Rehab waiting list. City Council stipulated, however, that any money not being used or disbursed would be returned to the General Fund. City council's decision was made in order to avoid citizens coming forward and saying that the City had begun a new housing program (Project Build) without completing the old one. It was further stipulated by City council that no future Rehab waiting list would be made so that this problem would not reoccur in the future. Chairman Thomas J. Burns stated he had attended the NAHRO Legislative Conference held in Washington D.C. recently. He and the Executive Director and other representatives from Colorado PHAs had spoken with the Honorable Dan Schaeffer who was very interested in Project BUILD. The Certificates portability issue and the negative impact on the PHAs who must administer these portable certificates was also discussed with various members of the U. s. Congress. B. Director's Choice The Executive Director had nothing to present for discussion under this portion of the Agenda. ADJOURNMENT II .Q ~ .l Q JI IT WAS MOVED BY COMMISSIONER BERLIN TO ADJOURN THB REGULAR MEETING OF THE BNGLBWOOD HOUSING AU'rJIORITY BOARD OF COMMISSIONERS HELD MARCH 27, 1991. AT 9:00 P.H. i1J u!~-~ Thomas 3 ,J The Chairman declared the motion carried. Secretary -a-