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HomeMy WebLinkAbout1990-01-30 EHA MINUTESI • II. III. IV. IT WAS MEETING DECEMBER MOTION. Ayes: Nays: ( ENGLEWOOD HOUSING AUTHORITY Board of Commissioners Regular Meeting 3anuary 31, 1990 CALL TO ORDER ----------- The Regular '1eeting of the Englewood Housing Authority Board of Commissioners was called to order at 6:10 p.m. on Wednesday, 3anuary 31, 1990, at 3460 South Sherman Street, Englewood, Colorado, 80110, by Chairman Thomas 3. Burns. ROLL CALL l"leabers Present: Members Absent: Also Present: STUDY SESSION Thomas 3. Burns, Chairman R. 3. Berlin, Vice Chairman Roger Koltay, City Council Rep. Norleen Norden, Commissioner Bradley Zieg, Commissioner Arrived at 6:30 p.m. None Stephanie Berlin, 3ournalism Student Cherry Creek High School, preparing a paper on municipal government Ray Williams (Scheduled Visitor) There were no topics presented for Study Session at this meeting. MINUTES ------- M O T I O N ------ MOVED BY COl"ll"IISSIONER KOL.TAY TO APPROVE THE MINUTES OF THE REGULAR OF THE ENGLEWOOD HOUSING AUTHORITY BOARD OF COMMISSIONERS HELD 13, 1989, AS PRESENTED. VICE CHAIRMAN BERLIN SECONDED THE Berlin, l<oltay None Abstained: Burns, Norden Zieg Absent: The Chairman declared the motion carried. EHA BOC Regular Meeting 01/31/90 VI. Note: The Director's Reports were reviewed and discussed next due • to the scheduled visitor, Ray Williams, not being present at the meeting yet. DIRECTOR'S REPORTS A. Narrative Report First discussed was the Wand Warranties on 3367 and 3369 South Pearl Street. The Executive Director gave the Commissioners punch lists for these two WAND units which detailed warranty work the homeowners had requested action on at the December 13, 1989, board meeting. The punch lists detailed the work, the repair done, who the repair work had been assigned to, completion dates of the repairs and the homeowners' initials signifying the work was completed to their satisfaction. The Executive Director informed the CoCRmissioners that all warranty work for these two units was completed with the .exception of the carpet cleaning at 3367 South Pearl Street, which was scheduled for 9:30 a.m. the next day. Financing for the WAND rental units to be rehabbed was next discussed. The Executive Director went over the progress of the application to the Colorado Division of Housing by the EHDC. The Executive Director stated that the Division of Housing has now stated that the application for these rehab funds will not be reviewed until March or April of this year. The Executive Director also informed the Commissioners that the EHDC has applied informally to· the McCauley Foundation for a loan to do the rehab work. After talking to the '1<:Cauley Foundation about the financial needs of these units, it was determined that the McCauley loan would not cash-flow favorably. The Executive Director stated that an option to be considered would be to rehab only a few units with money from the 1989 CDBG funds, which were awarded to rehab nine units in the WAND project_. The Executive Director . stated that the EHA could then do a loan to the EHDC for the remaining money needed to complete the rehab on the WAND rental units. The Executive Director explained that he has revised · the mortgage scenario to reflect the ongoing subsidy withdrawn by the Housing Authority and the recently lowered fair market rents set by HUD for the Certificate program. The new scenario showed that the income would justify only a $380,000 mortgage. This would mean there would be a $52,000 shortfall between the collateralized Certificate of Deposit and the 1110rtgage, resulting in the EHA paying this difference. -2- EHA BOC Regular Meeting 01/31/90 v. It was the consensus of the Board to hold off until the next regular meeting any action on potentially loaning the money to the EHDC. B. Program Reports The Occupancy Status Report was discussed as to the line which reads "Inspections All". The Executive Director stated that in December, 1989, all units at Orchard Place, Simon Center, and offsite were inspected (a total of 217 units). He said that Occupancy staff and Maintenance do these inspections together. The number of resident non-duplicate households shown on the Occupancy Status Report was discussed. It was pointed out that in December, 1989, there were a total of 444 non-duplicate households in Englewood waiting for some type of housing assistance. The The of Housing Rehab Delinquency Report was discussed. Executive Director pointed out that the recipient Rehab Loan 17 had made a lump-sum payment on this delinquent delinquent. circumstances loan No. 92 VI I.B. loan bringing it down to 60 days The Executive Director stated that the surrounding the unit represented by rehab would be discussed at agenda item No. Note: Mr. Ray Williams, pro.spective homebuyer of 3320 South Pennsylvania Street was now present, so the Visitors portion of the agenda for this meeting was taken up at this time. VISITORS Nr. Ray Williams addressed the Commissioners. He stated that one of the things discussed at the December 13, 1989, Board l'leeting was the changes he was requesting to the WAND unit at 3320 South Pennsylvania Street which the Board directed hi•. to pay for "up-front". He stated he was present at this meeting to request the EHA Board consider allowing the amount due from him for these changes to be included in the mortgage. He stated that unforeseen economic burdens had decreased his available cash which he was going to use to pay for the changes he wanted to make to 3320 South Pennsylvania Street. -3- EHA BOC Regular Meeting 01/31/90 Mr. Williams presented a letter from ICM Mortgage which stated the maximum amount of purchase price the Williams' could afford. The Executive Director had a breakdown of the costs for requested changes and upgrades (labor and materials) and presented it to the commissioners. The breakdown detailed the changes already made and paid for by Mr. Williams, and the costs for additional items and upgrades done at the prospective homeowner.'s request, but not yet paid for by l"lr. Williams. Mr. Williams asked the Board to consider crediting back to him the amount he had already paid for on changes. Mr. Williams requested if this was not possible, that the $888.00 appliance allowance subtracted from the purchase price and the $440.00 for the changes done but not paid for be added onto the mortgage amount. It was pointed out by contention over the floorcovering in one change the amount to has not yet paid for. Mr. Williams that there was some cost of the upgrade to the of the bathrooms which might be charged him for the changes he · Chairman Burns stated that a report had been supplied to the Commissioners detailing that EHA staff had spent an extraordinary amount of time on the changes requested by Mr. Williams. Chairman Burns also asked about the a..aunt of aoney for the appliance allowance and if these appliances would be installed by the EHA . or by the homeowner. He was told that the appliances would be supplied by the prospective homeowner. Discussion ensued regarding the impending appraisal of 3320 South Pennsylvania Street. Chairman Burns asked Nhat if the appraisal came back at an amount lower than the amount of mortgage the Williamses have been approved for with the requested changes. Mr. WillialltS stated that he had made a $500 earnest deposit and paid $539.60 for changes already done, and he understood that these monies were nonrefundable. He stated that if he could not afford to make up the difference between the appraised value of the house and the aortgage he would qualify for, he would have paid for upgrades on 3320 South Pennsylvania St., and the EHA would have this house to sell. Executive Director Malinowski clarified that the $500 earnest money deposit was refundable if Mr. Williams did not qualify for the loan. -4- EHA BOC Regular Meeting 01/31./90 Commissioner Zieg stated he felt that if Mr. Williams could make up the difference between the appraisal amount and the mortgage amount, there would be no problem. Discussion ensued regarding the original sale price of the house ($74,310) and the cost of the changes ($1328) which would total $75,638. ICM had informed Mr. Williams that the maximum amount they would allow for a mortgage would be $75,200. The Executive Director pointed out that the closing costs which would be due from the buyer are unknown at this time. It was discussed that if the appraisal comes back less than the amount due on the house (purchase price plus cost of changes> the prospective purchaser has the option of paying the EHA the difference or backing out of the contract. M O T I O N --- IT WAS MOVED BY COl"ll"IISSIONER ZIEG TO ADD TO THE PRICE OF 3320 SOUTH PENNSYLVANIA THE FOLLOWING: <1> $160.00 FOR ONE ADDITIONAL PINE TREE; <2> $50.00 FOR AN UPGRADE TO THE PORCELAIN SINK IN THE KITCHEN; (3) $50.00 TO RAISE THE WALL AROUND THE STAIRWELL AND ADD A POST THERETO; (4) THE ACTUAL COST OF THE UPGRADE TO THE BATHROOM FLOORCOVERING <NOT TO EXCEED $180.00>; (5) AND THE APPLIANCES PREVIOUSLY CREDITED. THE TOTAL AGGREGATE AMOUNT OF THE CHANGES LISTED HERE NOT TO EXCEED $1328.00. COMMISSIONER KOLTAY SECONDED THE MOTION. Ayes: llilays: Abstained: Absent: Burns, Berlin, Koltay, Norden, Zieg None None None The Chairman declared the motion carried. Commissioner Zieg stated that if in fact the appraisal on 3320 South Pennsylvania Street comes back lower than the amount of mortgage the Williamses are_ approved to pay, he would have trouble coming up with all the contingencies involved in a single motion to arrive at a place where Mr. and Mrs. Williams could still buy the house. Vice Chairman Berlin stated ·that the EHA will not know until the appraisal comes back what amount the house is appraised at; and, therefore, will not know what type of decision, if any, needs to be made concerning this situation of appraisal amount versus allowed mortgage amount Note: The Regular Meeting of the EHA Board of Commissioners •as recessed at this . time in order to hold the scheduled Annual Meeting of the EHA Board of Commissioners. After completion of the Annual Meeting, the Chairman called the Regular Meeting b~ck to order. -5- EHA BOC Regular Meeting 01/31/90 VII. DISCUSSION ITEMS, MOTIONS AND RESOLUTIONS: A. Review and Approval of Audit Bill. The Executive Director informed the Commissioners that he had received a letter from HUD approvi _ng the 1988 Audit. Commissioner Zieg stated he was very upset with Denton, Netherton & Co. because they had not looked at the EHA's books for 1988 as instructed before bidding on the audit. He was also upset with the auditors for waiting so long to ask for the substantial increase over the contracted amount for the 1987 and 1988 audits due to the condition of the EHA's books. Lengthy discussion ensued regarding the seeming lack of business ethics over the auditors' lack of communication about the need to do so much work to complete the audit and the substantial increase in the bill over the contracted amount. Also discussed at length was having Mr. C. J. Netherton come before the Board and explain why he progressed so far along with the audit before coming to the Executive Director and informing him of the need to charge an additional amount. The Com•issioners wanted to discuss this before any additional amount might be paid to Denton, Netherton. '1 0 T I O N IT WAS MOVED BY COl"IMISSIONER ZIEG TO PAY DENTON, NETHERTON, AND CO., CPAs THE ORIGINAL BID PRICE OF $6,225.00 FOR THE 1987 AND 1988 AUDITS AND ASK MR. C. J. NETHERTON TO COME BEFORE THE ENGLEWOOD HOUSING AUTHORITY BOARD OF COl'IMISSIONERS' NEXT RESULAR MEETING TO EXPLAIN THE ADDITIONAL CHARGES FOR THE WORK NEEDED TO COl"IPLETE THE 1987 AND 1988 AUDITS BEFORE THE BOARD CONSIDER PAYING THE ADDITIONAL AMOUNT BILLED BY DENTON, NETHERTON, AND CO. C0t11'1ISSI0NER NORDEN SECONDED THE MOTION. Ayes: Nays: Abstained: Absent: Burns, Berlin, Koltay, Norden, Zieg None None None The Chairman declared the motion carried. Discussion then ensued regarding whether paying Denton, Netherton, & Co, CPAs the $6,225.00 would constitute binding the EHA to the contracts for the years of 1989 and 1990. It was discussed that the EHA had three separate contracts with Denton, Ne.therton for the years of 1988, 1989 and 1990; and, therefore, payment of 1987 and 1988 audits would not affect 1989 and 1990's contract~. -6- EHA BOC Regular Meeting 01/31/90 Vice Chairman Berlin asked how far along with the FY '89 audit Denton, Netherton had proceeded to date. The Executive Director answered that Denton, Netherton was not very far along, they had only begun the verifications with the banks the EHA has accounts with. He further stated that the auditor then has to wait until the EHA's FY '89 books are completed. M O T I O N IT WAS MOVED STOP WORKING THE AUDITS SECONDED THE BY COMMISSIONER ZIEG THAT DENTON, NETHERTON, & CO., CPA'S ON THE FY '89 AUDIT UNTIL AFTER THE INCREASES IN PRICE FOR FOR FY '87 AND FY ·es ARE SETTLED. VICE CHAIRMAN BERLIN MOTION. Ayes: Nays: Abstained: Absent: Burns, Berlin, Koltay, Norden, Zieg None None None The Chairman declared the motion carried. B. Disposition of 3846 South Cherokee The rehab loan on 3846 South Cherokee <Loan No. 92) showed up on the Rehab Loan Delinquency Report as 120 days delinquent in 1989. Per the Board's policy, this was brought to the Board Meeting for review. The Board directed the EHA to foreclose this property. After all proper steps were taken, and the owners right of redemption period ended, title for the property came to the EHA. The EHA will be assuming the first mortgage. The City of Englewood is allowing the EHA to use repaid rehab monies to pay for all expenses. The occupants are currently being evicted. The Board was asked to decide how to dispose of the property. It was the Director's recom,nendation that the property be listed with Milton and Miriam Senti of Metro Brokers who have sold two other properties belonging to the EHA. The Executive Director stated this situation was a little different since the EHA "inherited" this property involuntarily through foreclosure. Co111missioner Zieg asked what the property was appraised at. It was decided that since the former owners are still occupying the unit and since the eviction notices have just been posted at the end of the redemption period that it was premature for the Board to make a decision at this meeting. -7- EHA BOC Regular Meeting 01/31/90 M O T I O N IT WAS MOVED BY COMMISSIONER ZIEG TO TABLE THE DECISION ON THE DISPOSITION OF 3846 SOUTH CHEROKEE UNTIL THE ENGLEWOOD HOUSING AUTHORITY BOARD OF COMMISSIONERS MEETING TO BE HELD FEBRUARY 28, 1990. COMMISSIONER KOLTAY SECONDED THE MOTION. Ayes: Nays: Abstained: Absent: Burns, Berlin, Koltay, Norden, Zieg None None None The Chairman declared the motion carried. C. Review of · City Council Requests for March 12, 1990, Meeting. The Executive Director stated that he was asked to appear at the 3anuary 8, 1990, City Council Study S~ssion by Roger Fraser, City Manager, in preparation for a joint City Council/EHA study session. He reiterated that the EHA and City Council had agreed that this should be done about every six months. At the Study Session, the Executive Director stated he was asked a number of questions to respond to at the joint aeeting. He asked the Commissioners to review the questions for any Board responses and stated that he will give the factual information for most of the questions. He asked also if the Board had any questions for City Council. Chairman Burns asked if Council had any written •aterials that would answer some of the questions Council had asked the Executive Director at the 3anuary B, 1990, Study Session. The Executive Director stated that just prior to the March 12 Study Session he would send thetn any specific information on how the programs work. He stated that the EHA has a new Informatio~ brochure which was also supplied to the Commissioners with the packet for this meeting of 3anuary 31, 1990. -8- EHA BOC Regular Meeting 01/31/90 Commissioner Koltay stated that if any of the questions Council had asked the Director on January 8, 1990, require a great deal of time to answer, that the question(s) be deferred to another meeting to answer. Commissioner Zieg suggested that the Report for 1989 be sent to Council Information brochure. EHA's Annual along with the Commissioner Koltay stated that one of the hardest things to understand for a new councilmember is how .the various programs work. He stated that a question which seemed to always come up was how .do Englewood residents get priority over someone else on the program. Commissioner Koltay stated that another question that seems to reoccur is regarding the houses the EHA has built do the people actually buy at market rate or do they buy at below market rate. Commissioner Norden asked if the EHA Board had any questions of City Council. The Commissioners decided that would be discussed at the February 28, 1990 aeeting when the Study Session topics would be reviewed. D. Setting of November/December 1990 EHA Board Meeting Date. After brief discussion, it was decided that the November/December 1990 EHA Board Meeting would be held an Wednesday, November 28, 1990. M O T I O N ---- IT WAS MOVED BY COMMISSIONER ZIEG THAT THE NOVEMBER/DECEMBER 1990 ENGLEWOOD HOUSING AUTHORITY BOARD OF COl1MISSIONERS MEETING BE HELD ON IEDNESDAY, NOVEMBER 28, 1990. VICE CHAIRMAN BERLIN SECONDED THE MOTION. Ayes: Nays: Abstained: Absent: Burns, Berlin, Koltay, Norden, Zieg None None None The Chairman declared the motion carried. -9- EHA BOC Regular Meeting 01/31/90 VIII.· FINANCIAL REPORT Reviewed with brief discussion. M O T I O N COf'IMISSIONER ZIEG MOVED THAT THE ENGELWOOD HOUSING AUTHORITY'S FINANCIAL REPORTS FOR THE MONTH OF DECEMBER, 1989, BE ACCEPTED AS PRESENTED. VICE CHAIRMAN BERLIN SECONDED THE MOTION. Ayes: Nays: Abstained: Absent: IX. x. Burns, Berlin, Koltay, Norden, Zieg None None None The Chairman declared the motion carried. CONSENT AGENDA A. City Council Minutes Extract of December 18, 1989. Briefly discussed. 8. New EHA Information Brochure Briefly discussed. GENERAL DISCUSSION A. Commissioners' Choice Discussion ensued regarding Housing Quality Standards and subsidized units in the Section B Existing Program and how interpretations varied as to whose responsibility maintenance of the unit is. Cofflftlissioner Norden stated that it was the responsibility of the landlord to maintain the subsidized housing units and it was not the job of the PHA to enforce the maintenance of the subsidized units. She stated that minimum standards to be maintained were very m1n1mum. Vice Chairman Berlin disagreed and said Housing Quality Standards tend to be very strict. Co111missioner Norden asked if the Englewood City Council was discussing any further the Urban Homesteading Program. Commissioner Koltay stated that this subject was on the Agenda for discussion at the upcoming Monday night meeting. Comaissioner Koltay stated that there were a lot of misconceptions around this program and a lot of people mistakenly compare the Urban Homesteading Program to a one-dollar dispersed housing program. -10- EHA BOC Regular Meeting 01/31/90 The Executive Director stated that the Urban Homesteading Program, if the City was in~erested in having this program in Engelwood, would be applied for by the City and could be administered by the housing authority if Council so desired. The Executive Director stated that . the Community Development Director and he had preliminarily discussed a companion program to the Urban Homesteading Program Nhich would be a tear down/rebuild property program. He stated that if Englewood is going to look at its housing stock in its entirety, these two programs need to be looked at as solutions to different problems. He stated that at the Study Session of the February 28, 1990, EHA Board Meeting, it might be a good idea to have Rich Wanush attend to talk about both the Urban Homesteading Program and the other program discussed above. Lengthy discussion ensued regarding the extreme shortage of upper-income level housing in Englewood, and the availability of housing in Englewood for low-income buyers. Vice Chairman Berlin stated he felt the EHA was doing the most constructive thing with the ·housing available by helping low-income buyers get started in homeownership in Englewood. Commissioner Koltay stated that many on Council, including himself, feel that some type of program must be developed to enable people living in Englewood to move up to a more expensive range of housing <e.g. S120,000.00> which he felt, in general, would have to be new construction on an existing lot. Also discussed, was that an expensive home built in a neighborhood of lower-priced houses would probably not sell. It was agreed among the Commissioners that this was a very difficult question, but that this is probably not within the realm of allowable duties of the EHA by state enabling legislation. Co,amissioner Zieg informed the Commissioners that he had been nominated for an interview with the Colorado Leadership Forum and had subsequently been chosen to be on the Colorado Leadership Forum. -11- 4 • I \, EHA BOC Regular Meeting 01/31/90 XI. ADJOURNMENT t1 0 T I O N IT WAS MOVED BY COMMISSIONER NORDEN TO ADJOURN THE REGULAR MEETING OF THE ENGLEWOOD HOUSING AUTHORITY BOARD OF COMMISSIONERS HELD JANUARY 31, 1990. Note: Two commissioners had left the meeting when the Executive Director stated that there was one other item needing the attention of the Commissioners. That item was the passage of three resolutions approving investment of the EHA's funds. Sin~e a quorum was present, and the item was considered relatively minor, Chairman Burns called the meeting together again. t1 0 T I O N IT WAS MOVED BY VICE CHAIRMAN BERLIN TO ADOPT RESOLUTIONS NO. 1, NO. 2, AND NO. 3 WHICH APPROVE THE INVESTMENT OF THE ENGLEWOOD HOUSING AUTHORITY'S FUNDS AT COMMERCIAL FEDERAL SAVINGS & LOAN, AMERICAN SAVINGS OF COLORADO, AND BANK WESTERN FEDERAL SAVINGS BANK RESPECTIVELY, IN ACCORDANCE WITH THE TERMS OF RESOLUTION NO. 1, SERIES OF 1985. COMMISSIONER ZIEG SECONDED THE MOTION. Ayes: Nays: Abstained: Absent: Burns, Berlin, Zieg None None Koltay, Norden The Chairaan declared the motion carried. The Chairman adjourned the meeting. _{2_~/flA:b_n_ ~, '-=<'lv- Thomas J'. Burn~~r:J/f/f;;,.an -12-