Loading...
HomeMy WebLinkAbout1991-12-04 EHA MINUTESI. II. III. IV. ENGLEWOOD ROUSING AUTHORITY Board of Commissioners Regular Meeting December 4, 1991 CALL TO ORDER The combined regular November and December meetings (hereinafter referred to as the regular meeting held December 4, 1991) of the Englewood Housing Authority Board of Commissioners was called to order at 6:15 p.m. on Wednesday, December 4, 1991, by Chairman Thomas J. Burns, at 3460 South Sherman Street, Suite 103, Englewood, Colorado, 80110. Members Present: Members Absent: Also Present: STUDY SESSION Thomas J. Burns, Chairman Norleen Norden, Vice Chairman R. J. Berlin, Commissioner Sheri Gulley, Commissioner Bradley Zieg, Commissioner None Paul Malinowski, Executive Director Jerry Nestler, Housing Specialist, Project BUILD Mary A. Ryan,· Recording Secretary Jerry Nestler, Housing Specialist, Project BUILD, presented a slide show of the progress being made under Project BUILD and the Urban Homestead Program. At the end of the Study Session, the 312 Rehabilitation Loan Program was briefly discussed. MINUTES A. Regular Meeting held September 25, 1991 II O .1 .I Q N IT WAS MOVED BY COMMISSIONER GULLEY TO APPROVE THE MINUTES OP THE REGULAR MEETING OP THE ENGLEWOOD ROUSING AUTHORITY BOARD OP COMMISSIONERS HELD SEPTEMBER 25, 1991, AS'PRESBNTED. VICE CHAIRMAN NORDEN SECONDED THE MOTION. Ayes: Nays: Abstained: Absent: Burns, Norden, Berlin, Gulley, Zieg None None None The Chairman declared the motion carried. nm1/Hinutes/120491EHAMinutes EHA BOC Regular Meeting 12/04/91 NOTE: The regular meeting of the Englewood Housing Authority Board of Commissioners scheduled for October 30, 1991, was not held due to inclement weather. B. Budget Meeting held November 20, 1991 IT WAS MOVED BY VICE CHAIRMAN NORDEN TO APPROVE THE MINUTES OP THE BUDGET MEETING OP THE ENGLEWOOD HOUSING AUTHORITY BOARD OP COMMISSIONERS HELD NOVEMBER 20, 1991, AS PRESENTED. COMMISSIONER GULLEY SECONDED THE MOTION. Ayes: Nays: Abstained: Absent: v. VI. Burns, Norden, Berlin, Gulley, Zieg None None None The Chairman declared the motion carried. PRE-SCHEDULED VISITORS There were no pre-scheduled visitors at the Englewood Housing Authority Board of Commissioners Regular Meeting held December 4, 1991. DIRECTOR'~ REPORT A. Narrative Report The Executive Director stated that Columbia Savings had given preliminary approval for permanent financing for the WAND project which now gives the EHDC a choice of loans. Chairman Burns asked what were the most onerous provisions of the CHFA loan. The Executive Director stated that all units had to be rented to persons at 60% or less of median income for .the length of the loan or 15 years, whichever was longer. Also, CHFA stated that any excess cash from the project had to be shared fifty-fifty with CHFA. -2- EHA BOC Regular Meeting 12/04/91 VII. The Executive Director invited the Commissioners to the Christmas dinner and variety show which the staff of the Englewood Housing Authority is giving to the residents of Simon Center and Orchard Place. B. Program Reports All programs' reports were noted with brief discussion. Commissioner Zieg asked for a project completion date on the Project BUILD status report. DISCUSSION ITEMS, MOTIONS AND RESOLUTIONS: A. Forgiveness of Public Housing Rent At its June 27, 1990 meeting, the EHA Board of Commissioners authorized charging each program administered office rent to be paid to the Office Building fund. All programs have paid their portion with the exception of the Public Housing Program. The expense has been accrued but no payments have been made. This was agreed to at the same Board meeting with the understanding the staff would assess at the end of the year whether or not Public Housing had adequate funds to pay the accrued expense. Because a deficit is projected in the revised 1991 operating budget for Public Housing, the Executive Director suggested forgiving the entire payment due for 1991. Commissioner Zieg asked if it would not be advisable to increase the rent in other programs' areas in order to cover the lost rent to the Office Building fund from Public Housing. The Executive Director explained that the Simon Center donation covers the loss. IT 1fA8 MOVED BY COMMISSIONER ZIEG TO ADOPT RESOLUTION NO. 10, SERIES OP 1991, AUTBORIZING 'l'BE WRITE-OPP OP ACCRUED OPPICE RENT PAYABLE TO 'l'BE OPPICB BUILDING PUND IN THE PUBLIC HOUSING PROGRAM IN THE AMOUNT OP $4 1 29& AS WELL AS 'l'BE WRITE-OPP OP 'l'BE CORRESPONDING ACCOUNT RECEIVABLE IN TBB OPPICE BUILDING PUND. COMMISSIONER GULLEY SECONDED 'l'BE MOTION. Ayes: Nays: Abstained: Absent: Burns, Norden, Berlin, Gulley, Zieg None None None The Chairman declared the motion carried. -3- EHA BOC Regular Meeting December 6, 1991 B. Write-off of Tenant Accounts Receivable Each year, the EHA writes off tenant accounts receivable from its financial books that are unlikely to be collected. Attempts to collect the debts will continue, but the amounts will not show as accounts receivable. KQ~XQ~ IT WAS MOVED BY COMMISSIONER ZIEG TO ADOPT RESOLUTION NO. 11, SERIES OF 1991, WRITING OFF UNCOLLECTIBLE TENANT ACCOUNTS RECEIVABLE FOR LOW RENT PUBLIC HOUSING IN AN AMOUNT TOTALLING $96.75. COMMISSIONER GULLEY SECONDED THE MOTION. Ayes: Nays: Abstained: Absent: Burns, Norden, Berlin, Gulley, Zieg None None None The Chairman declared the motion carried. IT WAS MOVED BY COMMISSIONER ZIEG TO ADOPT RESOLUTION NO. 12, SERIES OF 1991, WRITING OFF UNCOLLECTIBLE TENANT ACCOUNTS RECEIVABLES FOR THE ENGLEWOOD HOUSING AUTHORITY MARKET RENTAL UNITS IN AN AMOUNT TOTALLING $2,794.61. COMMISSIONER GULLEY SECONDED THE MOTION. Ayes: Nays: Abstained: Absent: Burns, Norden, Berlin, Gulley, Zieg Nona None None The Chairman declared the motion carried. c. Extension of EHA/EHDC Management Agreement A little over three years ago, the Englewood Housing Authority entered into a management contract with the Englewood Housing Development Corporation to manage their properties. The EHDC now owns 14 properties with 19 units including all WAND rentals. The EHA receives a flat fee of $30 per unit per month. Since the management agreement runs from January 1 to December 31, the Board was asked to deciae if they wished to renew this agreement for a one-year term under the same terms and conditions as the current contract. -4- ---------------------------------------------------- EHA BOC Regular Meeting 12/04/91 IT WAS MOVED BY COMMISSIONER ZIEG TO APPROVE EXECUTION OF A ONE-YEAR EXTENSION OF THE MANAGEMENT CONTRACT WITH THE ENGLEWOOD HOUSING DEVELOPMENT CORPORATION FROM JANUARY 1, 1992 TO DECEMBER 31, 1992 UNDER THE SAME TERMS AND CONDITIONS AS THE CURRENT CONTRACT. VICE CHAIRMAN NORDEN SECONDED THE MOTION. Ayes: Nays: Abstained: Absent: Burns, Norden, Berlin, Gulley, Zieg None None None The Chairman declared the motion carried. D. Extension of Promissory Note with EHDC for WAND units. Since the rehab of the WAND units has long been complete, the EHDC has tenaciously worked with CHFA in order to close on the permanent financing. The EHDC has also sought alternative financing and has received a positive answer from Columbia Savings regarding alternative permanent financing. Because of the intense negotiations with CHFA over matters they either have been slow to move on or will not change, the promissory note deadline has passed. An extension request was to have been made at the cancelled October EHA Board Meeting. The EHDC passed a motion requesting an extension by the EHA at its November meeting. The Executive Director suggested extending the note approximately 120 days to February 29, 1992, to allow for ample time to close on the permanent loan, whoever may finance it. II Q ~ X Q If IT WAS MOVBD BY COMMISSIONER ZIEG TO APPROVE THE EXTENSION OF THB PROMISSORY BOTB AND DEED OF TRUST ON THE ELEVEN WAND RENTAL UNITS DATBD APRIL 30 1 1990, FROM NOVEMBER 1, 1991 UNTIL FEBRUARY 29, 1992 TO ALLOW POR KORB TIME FOR THE EHDC TO SECURE ITS PERMANENT FINANCING. COMMISSIONER GULLEY SECONDED THE MOTION. Ayes: Nays: Abstained: Absent: Burns, Norden, Berlin, Gulley, Zieg Hone Hone Hone The Chairman declared the motion carried. -5- EHA BOC Regular Meeting 12/04/91 E. Discussion and action on Project Self-Sufficiency. Over the past few years, the Bush/Kemp administration has pushed for housing programs that promote self-sufficiency among public housing residents and Section 8 Certificate and Voucher holders. In 1990, Congress took this one step further and passed a provision in the National Affordable Housing Act of 1990 that said HUD could award Section 8 units to authorities with a Self-Sufficiency Program in FY 1991 and FY 1992 with the program becoming mandatory starting in FY 1993. HUD has made available additional Section 8 units that are tied to a Family Self-Sufficiency program. The idea of a self-sufficiency program is that supportive services such as day care, education, and job training are made available to subsidized housing recipients so that they can better themselves while receiving housing assistance. In Arapahoe County, the Department of Social Services provides these services under its Project JOBS. HUD published new regulations in September that appear to require substantially more services and a more structured format than what is presently in place. The Executive Director stated the regulations are confusing at best and a training session held in November did little to clear up the questions the EHA has. He stated he was very concerned that if we were to apply for and receive any funding under this NOFA {Notification Qf funding Availability), we may tie ourselves to some unworkable regulations in the future. Also, the EHA just received 25 new vouchers last month, and it may be advantageous for us to wait for the next funding cycle. It was his recommendation that the EHA not apply for any additional Section 8 Certificates or Vouchers under this NOFA. Prior to the next NOFA, staff will study the regulations further and hopefully have questions answered to make a more complete analysis. Chairman Burns stated that conceptually this is a good program. Discussion ensued regarding the probability of the EHA applying for these certificates/vouchers and then not being able to use them if awarded and the problems this would create for the EHA. -6- EHA BOC Regular Meeting 12/04/91 Also discussed at length was whether or not the EHA has sufficient staff to administer a self-sufficiency program. The Executive Director stated that setting up this program would be easier than monitoring it because HUD's regulations would add an enormous amount of work with no increase in the administrative fee for additional staff, office space, filing capabilities and necessary office supplies. Commissioner Zieg suggested that the EHA start now putting together a self-sufficiency program on a small scale so that when the next round of funding is announced, the EHA will be more ready to apply for funding. The use of VISTA volunteers to help set up the Family Self-Sufficiency Program was discussed. The recommendation of the Executive Director to not apply for funding under this NOFA was accepted by the Commissioners. They recommended, however, that a list be put together of what would have to take place before the next NOFA is published to ensure that the EHA is ready and able to apply for additional Section 8 Certificates and/or Vouchers under the Family Self-Sufficiency Program. Chairman Burns also requested a memo be prepared for him to take to the NAHRO conference in Washington D.C. later this month which would state the EHA's objections to the requirements and regulations of the Family Self-Sufficiency Program and which would also state the EHA's suggestions for additional funding for this program to cover administrative costs associated with it. F. Review of policy of two-year consolidated notes with First Interstate Bank. This item was carried over from the EHA Board meeting to be held October 30, 1991, which was cancelled due to inclement weather. When a homeowner takes out a loan from the EHA under the regular Rehab Program with bank funds, the EHA signs a note with the homeowner for a twenty-year term. The note is secured by a deed of trust. The EHA then signs a note with First Interstate Bank of Englewood for the same amount and term with the interest rate being one percent higher in order to accrue reserves. This note is also secured by a deed of trust. -7- EHA BOC Regular Meeting 12/04/91 After several loans are made with the bank, First Interstate consolidates the individual notes into a consolidated note. The underlying deeds become collateral for the consolidated note. This allows the bank to sell off the consolidated notes to the others banks in the consortium. A problem has been encountered in the term of the consolidated notes. They generally bear about a two-year term, substantially less than the twenty-year term of the underlying notes. The amortization remains the same (20 years) but a balloon payment is in effect due in two years. In the past, matured consolidated notes were simply extended for another two years. This has been the practice since the late 1970's. The EHA is concerened about the potential for First Interstate not rolling over the consolidated notes although it was felt First Interstate would likely never do this. Also, the concern of the Executive Director is that an out-of-town bank could buy First Interstate Bank and the uncertainty of how the notes would then be handled. The Executive Director informed the commissioners that he was told by Tom Dinkel of First Interstate Bank that bank regulations do not allow commercial banks long-term real estate loans and thus the two-year terms. He stated he did not wish to change a long-term policy with a successful program without Board input on how we can protect ourselves from this possible predicament. Commissioner Zieg asked the Executive Director to ask Thomas A. Dinkel, Vice President and Manager of First Interstate Bank's Real Estate Loan Department, to tell the EHA what regulations he is referring to which do not allow commercial banks long-term real estate loans thus necessitating the two-year terms. The Executive Director stated that Mr. Dinkel had also expressed to him that this was something the bank examiners were requiring. Commissioner Zieg suggested that the Executive Director tell Mr. Dinkel that he (the Executive Director) had shared Mr. Dinkel's letter regarding these regulatory restraints with the EHA Board and the Board has requested more information regarding these regulations in order to come to an informed decision on this matter. It was further suggested that perhaps Mr. Dinkel could be present at a future study session to clarify this issue. -8- EHA BOC Regular Meeting 12/04/91 VIII. IV. x. FINANCIAL REPORT The Financial Report was discussed. Commissioner Zieg stated that the report was very clear and straight forward. He asked about the "Management Program" as shown on the EHA Balance Sheet. Several questions were asked regarding the amount of cash in the checking account for the management fund on October 31, 1991. The Executive Director stated he would get clarification for the next Board Meeting from the accountant on these questions. Lengthy discussion ensued regarding the surplus in the Simon Center Budget. CONSENT AGENDA All items were noted with brief discussion. GENERAL DISCUSSION A. Commissioners' Choice Commissioner Gulley asked if there was some way the EHA could establish a program whereby homeowners could hire a property management association to take care of such things as snow removal, lawn care, and general maintenance when those persons are living in their own homes and need help with these things. Lengthy discussion ensued, but it was generally agreed that this would be better handled by a private sector business rather than through the Englewood Housing Authority. B. Director's Choice The Executive Director had nothing to present under this portion of the agenda. -9- EHA BOC Regular Meeting 12/04/91 XI. ADJOURNMENT IT WAS MOVED BY COKMISSIOHBR BERLIN TO ADJOURN THE REGULAR MEETING OP THE ENGLEWOOD HOUSING AUTHORITY BOARD OP COMMISSIONERS HELD DECEMBER 4, 1991, AT 8:35 P.H. Mary A. Secretary -10-