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HomeMy WebLinkAbout1993-05-26 EHA MINUTESI. II. III. ENGLEWOOD HOUSING AUTHORITY Board of Commissioners Regular Meeting May 26, 1993 CALL TO ORDER The Regular Meeting of the Englewood Housing Authority Board of Commissioners was called to order at 5:55 p.m. on Wednesday, May 26, 1993, at 3460 South Sherman Street, Suite 103, Englewood Colorado, 80110, by Vice Chairman Norleen Norden. Members Present: Thomas J. Burns, Chairman* Norleen Norden, Vice Chairman R. J. Berlin, Commissioner Sheri Gulley, Commissioner dl . . . ** Bra ey Zieg, Commissioner * ** Chairman Burns arrived at 6:45 pm Commissioner Zieg arrived at 6:30 pm Members Absent: Also Present: STUDY SESSION None Paul Malinowski, Executive Director Janet Grimmett, Housing Finance Specialist Mary A. Ryan, Recording Secretary It was suggested that the Study Session be postponed until the arrival of Chairman Burns and Commissioner Zieg. The Commissioners present agreed and the Board returned in the agenda to study Session when all Commissioners were present. However, these Minutes will reflect the actual order of the Agenda. The Board first reviewed and discussed the Rehab Reevaluation Report. The City of Englewood's Housing Rehabilitation Program started in 1976. It has been considered a model program by other communities and has received an award from the U. s. Department of Housing and Urban Development (HUD). The program has changed very little over the years in either policy or procedure. nvn2/Minutes/05.26.93 EHA EHA BOC Regular Meeting 05/26/93 It appeared to staff that parts of the program might be outdated and should be revisited. There also appeared to have been more homeowner dissatisfaction over the last two years. Thus, staff members responsible for administering the program decided to make a comprehensive examination of the program for possible changes. First, staff members met to identify the specific areas for further study. The topics which were developed for further study were: {l} role of the EHA; (2) contractor selection; (3) work write-ups and specifications; (4) inspections; (5) warranties; (6) construction contracts; (7) application process; and (8) contractor/homeowner disputes. It was next decided that two meetings should be held to get input from the people most affected, one for homeowners and one for contractors. Staff considered the feedback they received from these meetings to be very valuable. Lengthy discussion concerned the role the EHA should take in the future in this program, i.e., strictly a lender of funds vs. a construction manager or something in between. The homeowners' view of the EHA was discussed. Discussion also concerned sweat equity in the Rehab Program, warranty work, and contractor recommendations and selection and the homeowners' perception and contractors' perception of the EHA's role in regulating these processes. Also discussed was allowing the homeowner an "allowance" for certain items such as bathroom fixtures, light fixtures, etc. and having the homeowner choose these items themselves rather than the contractor making these selections. Discussion ensued regarding the administrative costs for the Rehab Loan Program versus the total program costs and upgrades to the housing stock in the City of Englewood. It was decided that what the EHA should do is "fine tune" the program rather than open it to a wholesale change. The Board also reviewed and discussed the agreement the EHA has with the City of Englewood for the administration of the Rehab Loan Program. A number of changes were suggested by the Board. One change suggested was to change the word "good'' in Paragraph 2 • EHA BOC Regular Meeting 05/26/93 IV. III.C., i.e. " .. has good title to said residence." to'' ... has merchantable title to said residence." , Another change was to Paragraph IV.A.4. adding the words" ... appropriate building codes, and health and safety codes with ... " in front of "Section 8 HQS as a minimum code". Paragraph IV.A.5. was changed to use the word "construction" instead of "stick built" and "reset" in lieu of "set" and added the words "to a new location" after the word "structure". Paragraph IV.G.(2) was changed by deleting the words"· .. program or (except for a project for housing elderly persons) on the basis that the tenants have a minor child who will be residing with them; ... ". Paragraph IV.I.2. had the word "payoff" deleted. Paragraph IV.I.3. had the words "monthly installments" changed to "Authority" and the words "by the Authority or its designee" added. Vice Chairman Norden submitted a new paragraph, XVI., which added words which stated that the agreement is intended as the complete integration of all understandings between the parties and no prior additions, deletions, or other amendments have any force or effect unless they are in a written contract approved and signed by the Authority. MINUTES COMMISSIONER GULLEY MOVED TO APPROVE THE MINUTES OF THE REGULAR MEETING OF THE ENGLEWOOD HOUSING AUTHORITY BOARD OF COMMISSIONERS HELD APRIL 28, 1993, AS PRESENTED. COMMISSIONER BERLIN SECONDED THE MOTION. Ayes: Nays: Abstained: Absent: v. VI. Norden, Berlin, Gulley None None Burns, Zieg The Vice Chairman declared the motion carried. PRE-SCHEDULED VISITORS There were no pre-scheduled visitors at this meeting. DIRECTOR'~ REPORT A. Director's Narrative Report 3. EHA BOC Regular Meeting 05/26/93 VII. The Board asked Executive Director Malinowski to bring to a future meeting information which would help them decide whether to rent or sell the "house-move" houses 'being moved onto South Pennsylvania and South Adriatic. Commissioner Gulley stated that she has received two calls from constituents who have requested that the EHA consider selling the house recently moved onto South Pennsylvania Street to an owner-occupant. Vice Chairman Norden pointed out that Englewood doesn't have many rentals with larger numbers of bedrooms and it would be nice to have another such rental unit in Englewood. Executive Director Malinowski stated that he signed an agreement with a leasing agent to show the offices located on the second floor of the EHA office building. B. Program Reports There ~as little discussion on the program reports. DISCUSSION ITEMS, MOTIONS AND RESOLUTIONS A. Review of request to restructure rehab loan (action tabled from April 28, 1993 meeting). The owners of this property had moved from the residence two years ago and were not using this property as their primary residence as is required in their note and deed of trust for rehab. The owners stated the home was too small for their growing family and they needed to move to a larger home. The owners requested to have their 0% interest rate, deferred loan of $6,616 amortized at an affordable monthly payment instead of paying the full amount in one lump sum as is now required. After review of the owner's financial statement, the family qualifies as a low-income family (67% of the median income for six persons). It was the recommendation of the Housing Finance Specialist that the family be set up on a 240-month term at the original 0% interest rate which would be a fixed monthly payment of $27.57 per month. These payments were considered to be small enough that the family could reliably make them and still set aside some money from the rent 4. EHA BOC Regular Meeting 05/26/93 earned for maintenance and upkeep on the property. Janet Grimmett, the Housing Finance Specialist, reported that this is an 800 square feet structure with no basement and no garage. Considerable discussion ensued concerning equity in this house, the house the family now occupies and possible financial solutions. The Board expressed an interest in charging interest on any loan arrangement made with the family. Ms. Grimmett stated that there was another instance in the past where a rehab loan recipient had moved out of the house on which there was a zero percent deferred loan and the recipient had asked the EHA to allow the property to be rented until it could be sold. The EHA had been willing at that time to do this and recouped the loan money when the house sold. The Board discussed switching the loan collateral from the house now being rented to the house the family is now occupying and still require the loan payments with a small amount of interest. The family is still living in Englewood. COMMISSIONER GULLEY MOVED TO APPROVE CHANGING THE COLLATERAL FROM 3706 SOUTH CHEROKEE STREET (ORIGINAL HOME ON WHICH THE ORIGINAL ZERO PERCENT DEFERRED LOAN WAS COLLATERALIZED) TO 4535 SOUTH HURON (THE HOUSE THE RECIPIENTS OF THE ORIGINAL LOAN NOW OCCUPY). THE TERMS OF THE REFINANCED REHAB LOAN TO BE TWO PERCENT FOR A TERM OF FIFTEEN YEARS. COMMISSIONER BERLIN SECONDED THE MOTION. Ayes: Nays: Abstained: Absent: VIII. IX. Norden, Berlin, Gulley None None Burns, Zieg The Vice Chairman declared the motion carried. FINANCIAL REPORT Noted with brief discussion. CONSENT AGENDA Noted with brief discussion. 5. EHA BOC Regular Meeting 05/26/93 x. XI. GENERAL DISCUSSION · A. Commissioners' Choice Commissioner Berlin asked the Executive Director about the house moved to 3356 South Pennsylvania. Discussion ensued regarding Denver's requirements for site cleanup at the location the house came from. Executive Director Malinowski stated he had asked for bids on site cleanup and would negotiate with the owner of the site. B. Director's Choice Executive Director Malinowski had nothing for discussion at this time. ADJOURNMENT VICE CHAIRMAN NORDEN MOVED TO ADJOURN THE REGULAR MEETING OF THE ENGLEWOOD HOUSING AUTHORITY BOARD OF COMMISSIONERS HELD MAY 26, 1993 AT 8:05 P.M. COMMISSIONER GULLEY SECONDED THE MOTION. Mary~yan Recording Secretary 6.