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HomeMy WebLinkAbout1992-03-25 EHA MINUTESI. II. III. Board of Commissioners Regular Keating Karch 25, 1992 ~~ORDER The Regular Meeting of the Englewood Housing Authority Board of Commissioners was called to order at 5:55 p.m. on Wednesday, March 25, 1992, by Chairman Thomas J. Burns, at 3460 South Sherman Street, Suite 103, Englewood, Colorado, 80110. Members Present: Members Absent: Also Present: STODY SESSION: Thomas J. Burns, Chairman Norleen Norden, Vice Chairman (left at 8:15 p.m.) R. J. Berlin, Commissioner Sheri Gulley, Commissioner Bradley Zieg, Commissioner None Paul Malinowski, Executive Director Mary A. Ryan, Recording Secretary Ron Schmidt, EHA Staff Accountant (for Study Session only) Janet M. Grimmett, Housing Finance Specialist (present for discussion on Agenda Item VII.E. only) Executive Director Malinowski explained that HUD year-end financial statements for the fiscal year ending December 31, 1991, were presented for the Board to review. He stated that those forms were from the Public Housing, Section 8 Existing Certificates and Section a Existing Voucher programs only because those are the only forms required by HUD. The Statement of Operating Receipts and Expenditures which shows the net income and operating reserves at the end of the year was discussed regarding the gradual depletion of the operating reserves. Commissioner Zieg suggested that the EHA do a five-year plan regarding the depletion of the Public Housing Operating Reserve. 11111/Minutea/032592EHARegul1rMeeting EHA BOC Regular Meeting 03/25/92 IV. Next discussed was the Certificates program. The operating reserves were discussed. Executive Director Malinowski stated that he felt because the FMRs for a two-bedroom unit went up for fiscal year 1991 the operating reserve should grow for fiscal year 1992 because the administrative fee is tied to the two-bedroom FMR. The renewal certificates and vouchers projects were discussed. Executive Director Malinowski stated that this is the first year for the renewal certificates and vouchers projects and thus these projects are showing a small deficit in the operating reserves. Discussion ensued regarding HUD's ruling that separate books must be kept on each project of replacement certificates and/or vouchers. Ron Schmidt explained the function of the Management Fund as a check writing, pass-through account. He stated that this fund also has its own revenues and expenditures. The Commissioners expressed their appreciation to Ron for his perserverance through the HUD year-end financial reports and all his good work. MINUTES Discussion ensued regarding Agenda Item X.A. --General Discussion, Commissioners' Choice: Vice Chairman Norden stated that she did not intend to imply that the interview process for candidates to the EHA Board ensure that there is not a major difference in philosophy between the candidates and the present members of the Board. Her intent was for a well-rounded board with varying expertise, and she asked that the Minutes for the February 26, 1992, EHA Board Meeting be amended to reflect this. IT WAS MOVED BY COMMISSIONER GULLEY TO APPROVE THE MINUTES OF THE REGULAR MEETING OF THE ENGLEWOOD HOUSING AUTHORITY BOARD OF COMMISSIONERS HELD FEBRUARY 26, 1992, AS AMENDED. COMMISSIONER ZIEG SECONDED THE MOTION. Ayes: Nays: Abstained: Absent: v. 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 March 25, 1992. -2- EHA BOC Regular Meeting 03/25/92 VI. DIRECTOR'§ REPORT A. Narrative Report 3645 South Fox (Loan No. 192): Executive Director Malinowski explained that we are closing on this property on Friday, March 27, 1992. He asked the Board to consider the $5,188.62 Cohelp Loan made on this property by CHFA. Commissioner Zieg suggested that the EHA should perhaps split the profits with CHFA on this property up to, but not exceeding, $5,188.62. HQIXQB IT WAS MOVED BY COMMISSIONER GULLEY THAT AT THE TIME THE PROPERTY LOCATED AT 3645 SOUTH FOX STREET SELLS AND CLOSES, THE ENGLEWOOD HOUSING AUTHORITY REIMBURSE CHFA FOR THE $5,188.62 COHELP LOAN THEY FORGAVE THE ERA OR ONE-HALF OF THE PROFIT WHICHEVER IS LESS. VICE CHAIRMAN NORDEN SECONDED THE MOTION. Ayes: Nays: Abstained: Absent: VII. Burns, Norden, Berlin, Gulley, Zieg None None None The Chairman declared the motion carried. B. Program Reports Briefly discussed was the purging of the waiting lists. DISCUSSION ITEMS, MOTIONS AND RESOLUTIONS A. Selection of alternative designs --office space Executive Director Malinowski explained that the contractor who did the original remodel of the Englewood Housing Authority offices did some preliminary plans for remodeling the office again to allow for circulation between the first and second floors of the building. Preliminary drawings from the contractor were reviewed by the Commissioners. Discussion ensued regarding the projected costs to remodel the building to allow for interior circulation between floors and where these funds would come from. -3- EHA BOC Regular Meeting 03/25/92 The Commissioners s u ggested that upon moving the Housing Division employees upstairs to Suite 201, circulation between the two floors be via the outside stairs rather than the agency incurring the costs of building interior stairs between the EHA's offices in Suite 101 and Suite 201. After the Housing Division employees have moved upstairs and used the outside stairs for awhile, the question of remodeling to allow for interior circulation would be discussed again. Commissioner Zieg suggested that the EHA give the present tenants in Suite 201 of the EHA's office building a month-to-month lease at the prevailing lease rate for a maximum of three months in order to allow them sufficient time to find a new property and move their offices. The Commissioners present agreed that this scenario would be the best to follow. B. Submission of application to HUD for HOPE 3 Executive Director Malinowski explained that the HUD-funded HOPE 3 program funds can be used for acquisition or rehabilitation of existing government-owned properties only (HUD, VA, RTC, City). HOPE 3 funds must be matched with one dollar of local funds for every three dollars of HOPE funds. No new construction is allowed under the program. Only households that are considered low-income or below (below 80% of area median income) will be eligible recipients of HOPE 3 funds. A housing authority may be an applicant for the HOPE 3 funds but only in conjunction with a n on-profit organization. The EHA is proposing to work with the City of Englewood on a joint venture called Project Re-BUILD. Using HOPE 3 funds and City repaid rehab loan funds (originally received under the Community Development Block Grant Program) the City would purchase dilapidated or functionally obsolescent structures that are financially feasible for rehabilitation and sell them to the EHA for one dollar each. After the EHA rehabs and sells the property, the EHA would donate the amount the property sold for back to the City in order to "revolve" the funds and purchase more structures for the program. This program would essentially be a cross between two currently successful programs: Project BUILD and Urban Homesteading. -4- EHA BOC Regular Meeting 03/25/92 The Commissioners reviewed a draft of the proposed program and discussed the various aspects. Commissioner Zieg asked how the potential buyers would be chosen and prequalified by a nonprofit organization. Executive Director Malinowski explained that several possibilities had been discussed, e.g., a lottery similar to the one used for the Urban Homesteading Program lottery. He also explained that Brothers Redevelopment and the Colorado Housing Assistance Corporation (CHAC) were two examples of non-profit organizations who could do the prequalifying thus satisfying HUD's requirement that the Authority apply in conjunction with a non-profit organization. Commissioner Zieg questioned the proposed use of "sweat equity" whereby the buyer would perform actual work on the rehab examples of which might be painting, light carpentry or landscape work. He was concerned about the liability this might cause and qualifications of the buyers to perform such work. Commissioner Berlin suggested that cleaning up after the rehab contractors and cleaning the yard might be good "sweat equity" work. It was suggested that Executive Director Malinowski talk with Habitat for Humanity to see how they handle the sweat ·equity situation. IT WAS MOVED BY COMMISSIONER GULLEY THAT THE ENGLEWOOD HOUSING AUTHORITY APPROACH ENGLEWOOD CITY COUNCIL WITH THE PROPOSED PROJECT RE-BUILD AND ASK FOR THEIR PARTICIPATION IN THIS PROJECT; AND ONCE THIS IS ACCOMPLISHED, SUBMIT THE APPLICATION TO HUD FOR HOPE 3 FUNDS. COMMISSIONER ZIEG SECONDED THE MOTION. Ayes: Nays: Abstained: Absent: Burns, Norden, Berlin, Gulley, Zieg None None None The Chairman declared the motion carried. c. Vacant lots --WAND project. In December of 1987, the Englewood Housing Authority purchased 21 parcels from Swedish Medical Center. The development of those properties became known as the WAND project. At the same time, the EHA executed an option to purchase two additional lots located in the 3300 block of South Pennsylvania. Under the terms of the contract executed between the EHA and Swedish Medical Center, the EHA has .five years (December 1992) to decide if it wants to exercise this option. -5- EHA BOC Regular Meeting 03/25/92 The two lots are standard city lots, 50' x 125' each. They are currently being used as paved-surface parking for Swedish Medical Center employees. Executive Director Malinowski suggested that the Commissioners begin to discuss possibilities now and develop a plan for the lots and identify funding sources in addition to deciding when and if the EHA will exercise the option. The Board considered whether or not these lots might be suited for Project BUILD. Commissioner Zieg asked if there were water and sewer taps to the lots. One lot has water and no sewer taps, the other has neither one. The price for both of the lots is such that it would still be financially feasible to add these water and sewer taps. Commissioner Zieg suggested that the EHA investigate what is under the lots' coverings. IT WAS MOVED BY COMMISSIONER ZIEG THAT THE ENGLEWOOD HOUSING AUTHORITY EXERCISE ITS OPTION TO PURCHASE THE TWO ADDITIONAL LOTS LOCATED IN THE 3300 BLOCK OF SOUTH PENNSYLVANIA UNDER THE TERMS OF THE CONTRACT EXECUTED BETWEEN THE ENGLEWOOD HOUSING AUTHORITY AND SWEDISH MEDICAL CENTER. COMMISSIONER BERLIN SECONDED THE MOTION. Ayes: Nays: Abstained: Absent: Burns, Norden, Berlin, Gulley, Zieg None None None The Chairman declared the motion carried. D. Insurance Bids As required by HUD, the EHA rebids its insurance every three years. This year the EHA sent out a detailed Request for Proposals to seven insurance agents. Only two bids were received back, one from Carver & Associates of Arvada and one from Edward Pine of Fort Worth, Texas. Pine bid only the boiler and machinery stating that they were not able to obtain competitive quotations for the EHA's property and liability coverages at this time. Furthermore, Pine's boiler and machinery bid, while lower than the bid by Carver & Associates had specific limits. -6- EHA BOC Regular Meeting 03/25/92 The agent from Carver & Associates has been the EHA's agent for about the past six years. As an independent agent, he bid the policies among various underwriters and then gave the EHA the lowest bid that met all the requirements (such as an -"A" rated company or better). That bid was for all policies and for all programs. The bid showed a seven percent increase over last year's premium. This increase is due primarily to increased coverage requested by Executive Director Malinowski after a thorough review of the EHA's properties' values. Because of the more expansive coverage offered by Carver & Associates and due to the advantage of dealing with one agent and an agent that is local, it was the recommendation of Executive Director Malinowski to award the entire insurance policy to Carver & Associates as per their bid. IT WAS MOVED BY COMMISSIONER GULLEY THAT THE ENGLEWOOD HOUSING AUTHORITY AWARD ITS INSURANCE POLICIES TO CARVER & ASSOCIATES AS PER THEIR BID AND THE ENGLEWOOD HOUSING AUTHORITY'S REQUEST FOR PROPOSALS. COMMISSIONER BERLIN SECONDED THE MOTION. Ayes: Nays: Abstained: Absent: Note: Burns, Norden, Berlin, Gulley, Zieg None None None The Chairman declared the motion carried. Vice Chairman Norden left the meeting at this point (8:15 p.m.) E. Write off of Loan No. 183 Janet Grimmett, Housing Finance Specialist was present for this portion of the meeting. She explained that this request to write off rehab loan No. 183 with a current principal balance of $283.27 is being made since the property has been sold due to foreclosure. Lengthy discussion ensued regarding the circumstances surrounding the sale of the property due to foreclosure without the EHA realizing it. Ms. Grimmett explained that this happened due to misinformation (information from the wrong file) from the Public Trustee's Office who apologized for the misinformation but took no responsibility for their actions. The Commissioners were concerned that the sale of the property due to foreclosure had taken place without the EHA realizing it. Commissioner Gulley asked Ms. Grimmett how this situation could be avoided in the future. -7- EHA BOC Regular Meeting 03/25/92 Ms. Grimmett explained that the Public Trustee's office told her that when she calls for this information in the future she should have the clerk at the Public Trustee's office repeat back to her (Ms. Grimmett) information from the file which would ensure that the file accessed is the correct one. The Commissioners were satisfied with Ms. Grimmett's plans to ensure this did not happen again in the future. IT WAS MOVED BY COMMISSIONER ZIEG TO WRITE OFP REHAB LOAN NO. 183 WITH A CURRENT PRINCIPAL BALANCE OF $283.27. COMMISSIONER GULLEY SECONDED THE MOTION. Ayes: Nays: Abstained: Absent: Burns, Berlin, Gulley, Zieg None None Norden The Chairman declared the motion carried. F. Resolution No. 2, Series of 1992, regarding PHMAP Executive Director Malinowski explained that PHMAP is an acronym for £ublic Housing Management Assessment £rogram. This is a set of 12 indicators used to evaluate only the public housing program of housing authorities. Final regulations were recently issued and HUD is requiring housing authorities to submit their results on the indicators by a certification no later than April 1, 1992. Once the information is submitted to HUD, a grade for each of the 12 indicators will be given. That will lead to an overall designation of "high performer", "standard", or "troubled". HUD is requiring a Board resolution to be submitted with the certification form. IT WAS MOVED BY COMMISSIONER BERLIN THAT RESOLUTION NO. 2, SERIES OP 1992, APPROVING SUBMISSION OF BUD FORM 50072 --PHMAP CERTIFICATION, BE ADOPTED AS PRESENTED. COMMISSIONER GULLEY SECONDED THE MOTION. Ayes: Nays: Abstained: Absent: Burns, Berlin, Gulley, Zieg None None Norden The Chairman declared the motion carried. -8- EHA BOC Regular Meeting 03/25/92 VII. IX. x. FINANCIAL REPORT January and February, 1992, financial statements not prepared yet to allow for 1991 year-end closing CONSENT AGENDA All items noted with brief discussion. GENERAL DISCUSSION A. Commissioners' Choice Commissioner Zieg asked about the renewal of his appointment to the Englewood Housing Authority Board of Commissioners. Executive Director Malinowski asked Commissioner Gulley what the EHA should do in terms of follow-up to the letter written to the Mayor concerning our recommended procedure. Commissioner Gulley suggested that she would let the EHA Board know when this matter comes up for discussion with City Council. Chairman Burns brought up for discussion Agenda Item IX.E. from the Consent Agenda, --Letter from Thomas A. Dinkel, Vice President and Manager, First Interstate Bank of Englewood regarding his retirement. Chairman Burns felt that the Englewood Housing Authority should give Mr. Dinkel some special recognition (a plaque) from the Authority as well as send a letter to Gary DeFrange, President of First Interstate Bank, expressing the Authority's appreciation for Mr. Dinkel's many years of fine service to the Authority. The Commissioners also felt that Don Clary who will be taking over for Mr. Dinkel should be invited to the next Study Session. ADJOURNMENT IT WAS MOVED BY COMMISSIONER BERLIN THAT THE REGULAR MEETING OF THE ENGLEWOOD HOUSING AUTHORITY BOARD OF COMMISSIONERS HELD MARCH 25, 1992, BE ADJOURNED. The meeting adjourned at 9:05 p.m. Secretary / -9-