Loading...
HomeMy WebLinkAbout1991-04-24 EHA MINUTES• I. II. • III. • nm1/Minute1/042491 ENGLEWOOD HOUSING AUTHORITY Board of commissioners Regular Meeting April 24, 1991 CALL TO ORDER The Regular Meeting of the Englewood Housing Authority Board of Commissioners was called to order at 6:40 p.m. on Wednesday, April 24, 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, Vice Chairman R. J. Berlin, Commissioner Roger Koltay, Commissioner Bradley Zieg, Commissioner None Jerry Nestler, Project BUILD, Urban Homesteading Program Housing Specialist Paul Malinowski, Executive Director Mary A. Ryan, Recording Secretary ·1• The Executive Directo~ introduced Jerry Nestler, the Housing Specialist for Project Build and the Urban Homesteading Program to the Englewood Housing Authority Board of Commissioners. Mr. Malinowski stated that Mr. Nestler has a good background in real estate and construction and has already done the type of work that is planned for Project BUILD. Mr. Malinowski informed the Board that Mr. Nestler will give a brief update on Project BUILD during the Director's Report. STUDY SESSION There was no Study Session held at this meeting of the Englewood Housing Authority Board of commissioners . EHA BOC Regular Meeting 04/24/91 .IV. MINUTES IT WAS MOVED BY COMMISSIONER NORDEN TO APPROVE THE MINUTES OF THE REGULAR MEETING OF THE ENGLEWOOD HOUSING AUTHORITY BOARD OF COMMISSIONERS HELD MARCH 27, 1991, AS PRESENTED. COMMISSIONER BERLIN SECONDED THE MOTION. Ayes: Nays: Abstained: Absent: v. Burns, Norden, Berlin, Koltay, Zieg None None None The Chairman declared the motion carried. There were no pre-scheduled visitors at the Englewood Housing Authority Board of Commissioners Regular Meeting held April 24, 1991 . • VI. DIRECTOR'~ REPORT • Jerry Nestler, Housing Specialist, gave an update on Project Build. He stated that prospective contractors have been contacted. Two properties have been identified for purchase. The first property is a basement house for sale by the owner. The foundation was put in and a roof was put on the foundation. The other property is the fire station located at 509 East Quincy Street. The basement hous~ land appraised at $23,000 and was purchased by Project BUILD for $18,000, including taps. The fire station will be purchased for the price of demolition of the structure. Mr. Nestler stated that the BUILD houses planned are potentially to have three bedrooms and two baths, a full unfinished basement with rough-in plumbing, and a two-car garage. Discussion ensued regarding different scenarios for using the Quincy Street Fire Station property. Converting the existing fire station to a residential structure was considered but the conclusion was that it would not be feasible. Commissioner Zieg asked if the builders would be planning their houses or if Project BUILD would be providing the plans. Mr. Nestler stated that some of the builders have requested that Project BUILD provide the plans. -2- • • • ERA BOC Regular Meeting 04/24/91 A. Narrative Report Office Sign -The Executive Director stated that the office sign had been installed on the building and that at some point in the future the EHA may put the EHA logo up also. 1.1.a Loan Program -The Executive Director stated that the 312 Rehab Loan Program has been awarded by HUD to the City. He said that a brochure was done. IX '90 Audit -The Executive Director brought the Commissioners up-to-date on the FY '90 Audit. The draft audit report was completed on April 15 with the final draft audit to be ready by April 31, 1991. The Executive Director and the accountant met with the senior partner and the field auditor to go over the audit. The auditors gave the Executive Director a management letter. The auditors will be at the May 29 Board of Commissioners Meeting to present the completed and bound audit along with the management letter. The Executive Director stated that he has been very impressed with these auditors who worked very hard • The auditors brought up for Board consideration that there has been a change in the distribution of the audits. In the past, all of the audits were taken to the Regional HUD office and given to the Office of the Inspector General for approval and disbursal. Two months ago, this was changed to sending all copies to a central OIG office in New Jersey. Discussion ensued regarding sending HUD the entire audit (federally funded programs, Simon Center and non-federally funded programs) or only sending HUD in New Jersey the HUD-required portion of the audit. The Executive Director asked if the Board had any problem with giving the City of Englewood and the Department of Local Affairs of the State of Colorado the entire audit • -3- ' EHA BOC Regular Meeting 04/24/91 • HQ~IQH IT WAS MOVED BY COMMISSIONER ZIEG TO SEND HUD ONLY THAT PORTION OF THE EHA FY'90 AUDIT WHICH THEY REQUIRE, WHICH IS THE FEDERALLY-FUNDED PORTION. COMMISSIONER BERLIN SECONDED THE MOTION. • • Discussion ensued regarding any "red flags" which might be raised by HUD if the EHA takes this course of action. The Commissioners again expressed their opinion that the EHA should give to HUD only that portion of the audit which HUD requires. Ayes: Nays: Abstained: Absent: Burns, Norden, Berlin, Koltay, Zieg Nona Nona Nona The Chairman declared the motion carried. The Executiv~ Director asked if his assumption was correct that there would be no problem in giving the City of Englewood or the State of Colorado, Department of Local Affairs the full audit. He stated that Dean Johnson of Bondi & Company said that there was a law passed last year that housing authorities must now send two copies of the full audit to the State Auditor. He stated that he has not been notified by the State Auditor's office that this is now a law. Commissioner Zieg stated that he would like the ERA to find out if there was, in fact, such a law passed. IT WAS MOVED BY COMMISSIONER ZIEG THAT THE ENGLEWOOD HOUSING AUTHORITY SEND A FOLL, BOUND SET OP THE ENTIRE AUDIT TO WHOEVER REQUESTS IT. Discussion ensued: The Executive Director suggested that the EHA Board of Commissioners wait until the May 29 meeting when Dean Johnson will be present to ask him about this question. COMMISSIONER ZIEG WITHDREW HIS MOTION IN ORDER TO WAIT UNTIL THE MAY 29 MEETING TO DISCUSS THIS WITH DEAN JOHNSON OF BONDI & COMPANY. The Executive Director reported that the EHA had received an expression of interest from one of the renters of the Market Rental units to do a lease/option. The Executive Director wanted to know, philosophically, if the Board would be interested in selling the unit this way. He gave a brief history of the ARRP project. -4- • EHA BOC Regular Meeting 04/24/91 NOTE: Chairman Burns stated that selling the units was the original intent of this program. Commissioner Zieg stated that he was certainly not opposed to selling the unit if the interested party wanted to make an offer, but he felt the lease option/plan was undesirable. Discussion ensued regarding whether the EHA needs to notify its listing agent concerning this or any similar requests. It was decided that the EHA did not need to do this because this particular expression of interest was an unsolicited inquiry. Discussion ensued regarding the Board of Commissioners presenting a plaque to Janet Grimmett for being selected as the City of Englewood Employee of the Month for April. The Director's Narrative Report for April 24, 1991, will be attached to and become a part of these minutes as Exhibit "A". , B. Program Reports Discussed briefly • • VII. DISCUSSION ITEMS, MOTIONS AND RESOLUTIONS • A. Stop-Payment and Stale-Dated Check Policy IT WAS MOVED BY COMMISSIONER ZIEG TO APPROVE RESOLUTION NO. 4, SERIES OP 1991 1 ADOPTING A CHECK STOP-PAYMENT AND STALE-DATED POLICY. COMMISSIONER KOLTAY SECONDED THB MOTION. Ayes: Nays: Abstained: Absent: Burns, Norden, Berlin, Koltay, Zieg None None None The Chairman declared the motion carried. B. Urban Homesteading The Chairman stated that Item Bis being handled by a committee consisting of the Executive Director, the Rehab Loan committee and Richards. Wanush, Director of Community Development. Therefore, this item was being dropped from the agenda and will not be discussed at this meeting • -5- • • • EHA BOC Regular Meeting 04/24/91 c. EHDC Financial Assistance The Executive Director stated that this item was a followup from the EHA Board Meeting held March 27, 1991, at which the EHDC board discussed their financial situation in detail with the EHA board. At its April 17 meeting, the EHDC passed a motion requesting financial assistance from the EHA for the WAND closing. The EHDC will need about $25,000 in cash for the closing when the CHFA permanent financing is disbursed. The EHDC has no funds for this and formally requested a loan or grant of up to $25,000 for this purpose. Also at the March meeting, the EHDC requested that the EHA consider some long-term financial solutions for their non-WAND properties. No solutions were discussed at the March meeting. IT WAS MOVED BY COMMISSIONER ZIEG TO AUTHORIZE A LOAN OF UP TO $25 1 000 TO THE ENGLEWOOD HOUSING DEVELOPMENT CORPORATION FOR THE WAND CHFA LOAN CLOSING AT 0% INTEREST TO BE REPAID WITH THE FIRST AVAILABLE WAND PROJECT RESIDUAL RECEIPTS BASED ON THE ANNUAL AUDIT, AND WHATEVER LOAN AMOUNT HAS NOT BEEN REPAID AT THE END OP PIVE YEARS FROM THE INITIATION DATE OP THE LOAN WILL BE REVIEWED AT THAT TIME BY THE ENGLEWOOD HOUSING AUTHORITY BOARD OP COMMISSIONERS. COMMISSIONER NORDEN SECONDED THE MOTION. Discussion ensued regarding the repayment of the loan. The Executive Director explained residual receipts in reference to the WAND permanent financing. Ayes: Nays: Abstained: Absent: Burns, Norden, Berlin, Koltay, Zieg None Nona Nona The Chairman declared the motion carried. Next to be discussed and considered under Agenda Item VII.C. was long-term solutions for the EHDC non-WAND properties. Lengthy discussion ensued regarding various scenarios by which the EHDC could structure a loan at a low enough interest rate with a long enough term so that they could afford it • -6- • • • EHA BOC Regular Meeting 04/24/91 Commissioner Koltay suggested that all EHDC non-WAND loans be consolidated into one loan by combining the first mortgages on the Lincoln Four-Plex and the Dartmouth Duplex with the Englewood Housing Authority lending the money to the EHDC at an interest rate and term they could afford in order to take out the first note holders. IT WAS MOVED BY COMMISSIONER KOLTAY TO CONSOLIDATE THE EHDC NON-WAND LOANS INTO ONE ·LOAN FROM THE EHA AT AN INTEREST RATE AND TERM THE CASH FLOW FOR THE EHDC NON-WAND PROPERTIES CAN AFFORD NOW. Lengthy discussion ensued regarding what interest rate and term would work for this scenario and keep these properties in their originally intended use. The Executive Director handed out financial information on the properties being discussed which recapped the sources and amounts of the EHDC loans. The EHA forgiving the deferred loans due to EHA was an option also discussed. The long-term commitment of the EHA's funds by buying out the EHDC loans in order that the EHDC's cash flow could afford the monthly debt service on these un•ts was discussed in detail. Also discussed was that at some point in the future the housing market might rally to the point where the EHDC could sell the units that are not cash flowing and recoup their money . THIS MOTION WITHDRAWN BY COMMISSIONER XOLTAY BECAOSE IT WAS DEEMED BY THE COMMISSIONERS TO BB FINANCIALLY PRODENT TO NOT COMMIT THE AMOONT OF EHA MONEY NEEDED TO BOY COT THESE EHDC LOANS. Commissioner Zieg felt rather than assume any of the EHDC's debt, it might be more prudent to grant the EHDC the amount of funds they need monthly to cover their negative cash flow on these units. Lengthy discussion then ensued regarding this scenario. IT WAS MOVED BY COMMISSIONER ZIEG TO GRANT THE ENGLEWOOD HOOSING DEVELOPMENT CORPORATION $1,000 PER MONTH TO SOBSIDIZE THE DEBT SERVICE ON THE LINCOLN FOORPLEX, BANNOCK DOPLEX, AND DARTMOOTH DOPLEX STARTING MAY 1, 1991, ONTIL THE NEXT ANNOAL BUDGET CYCLE BEGINS AT WHICH TIME THE ENGLEWOOD HOUSING AOTHORITY WILL REVIEW ITS COMMITMENT. COMMISSIONER BERLIN SECONDED THE MOTION. Ayes: Nays: Abstained: Absent: Burns, Norden, Berlin, Koltay, Zieg None None None The Chairman declared the motion carried. -7- • • • EHA BOC Regular Meeting 04/24/91 VIII. FINANCIAL REPORT The Executive Director pointed out for discussion the water expenditure for Public Housing which is at an all-time high for a low-water consumption period of the year. Commissioner Koltay felt that the Executive Director should contact the Water Department and have the water meter checked out. Commissioner Berlin suggested that when the meter is read by the City of Englewood, the EHA should accompany the water meter reader and write down the meter readings. The Executive Director stated a unit-by-unit inspection may be done to check for leaking toilets and faucets. The other issue discussed was Workers' Compensation Insurance. The Executive Director had compared what was charged for 1990's insurance ($6,464) against what was charged for 199l's insurance ($15,645). The City of Englewood stated that the EHA's employees had been reclassified as "contractors" of the City rather than "employees". Colleen Caudill of the City of Englewood Administrative Services Department, Employee Relations Division, stated that she was talking with CIRSA to reclassify the EHA employees back to "employe_es" for a possible substantial savings. IT WAS MOVED BY COMMISSIONER ZIEG TO ACCEPT THE FINANCIAL STATEMENTS FOR THE MONTH OP MARCH, 1991, AS PRESENTED. COMMISSIONER KOLTAY SECONDED THE MOTION. Ayes: Nays: Abstained: Absent: IX. Burns, Norden, Berlin, Koltay, Zieg None None None The Chairman declared the motion carried. CONSENT AGENDA The article from the Rocky Mountain News of March 31, 1991, entitled "Englewood reaches to aging homes" and the article from the Englewood Sentinel of April 18, 1991, entitled "City to take bids for home-fix (sic] loans" were presented with little discussion . -a- EHA BOC Regular Meeting 04/24/91 • x. GENERAL DISCUSSION A. Commissioners' Choice • • Commissioner Koltay stated he will not run again for City Council because he is relocating outside of the City of Englewood. Commissioner Norden stated that she will be attending the Commissioners' Workshop on behalf of the Englewood Housing Authority and the registration fee has been waived for her attendance in return for her doing an evaluation of the training. She stated that she needs to request approval of the Board of Commissioners to charge her airline, per diem, and hotel against the EHA's travel budget. HQ~XQH IT WAS MOVED BY COMMISSIONER KOLTAY TO APPROVE VICE CHAIRMAN NORDEN'S REQUEST TO CHARGE AIRLINE, PER DIEM, AND HOTEL COSTS WHILE SHE ATTENDS THE NAHR.O COMPREHENSIVE PUBLIC HOUSING AND COMMUNITY DEVELOPMENT SKILLS FOR COMMISSIONERS WORKSHOP TO BE HELD IN WILLIAMSBURG, VIRGINIA, ON MAY 10 AND 11, 1991, TO THE ENGLEWOOD HOUSING AUTHORITY'S TRAVEL BUDGET. COMMISSIONER BERLIN SECONDED THE MOTION • Ayes: Nays: Abstained: Absent: Burns, Norden, Berlin, Koltay, Zieg None None None The Chairman declared the motion carried. B. Chairman Burns stated he has talked with EHA's legal counsel, Jim Wagenlander, about getting calls from our residents who are requesting his legal representation on personal matters, e.g., wills. Mr. Wagenlander stated that Chairman Burns would have to disclose this to the Board of Commissioners and abstain from any discussion which involves that resident. Commissioner Zieg stated that he had no problem with this. Director's Choice The Executive Director asked the Board of Commissioners for direction on where the $1,000 per month subsidy to the EHDC to help the Lincoln Fourplex, Dartmouth Duplex, and Bannock Duplex cash flow was to come from. The Board of Commissioners indicated these funds should come from Simon Center reserve funds. -9- · EHA BOC Regular Meeting 04/24/91 • XI. ADJOURNMENT • • IT WAS MOVED BY COMMISSIONER KOLTAY TO ADJOURN THE REGULAR MEETING OP THE ENGLEWOOD HOUSING AUTHORITY BOARD OP COMMISSIONERS HELD APRIL 24, 1991, AT 9:10 P.M • ecretary -10-