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HomeMy WebLinkAbout1994-03-30 EHA MINUTESe e L CALL TO ORDER ENGLEWOOD HOUSING AUTHORITY Board of Commissionen Regular Meeting March 30, 1994 The Regular Meeting of the Englewood Housing Authority Board of Commissioners was called to order at 6:05 p.m. on Wednesday, March 30, 1994, at 3460 South Sherman Street, Suite 103, Englewood, Colorado, 80110, by Chairman Thomas J. Bums. II. ROLL CALL * Members Present: Thomas J. Bums, Chairman Norleen Norden, Vice Chairman Sheri Gulley, Commissioner Matt Innes, Commissioner* Bradley Zieg, Commissioner Commissioner Innes arrived at 6:20 p.m. Members Absent: Also Present: None James Wagenlander, Wagenlander & Associates, EHA Legal Counsel Paul Malinowski, Executive Director Mary A. Ryan, Recording Secretary III. STUDY SESSION MOTION COMMISSIONER GULLEY MOVED TO ENTER INTO EXECUTIVE SESSION AT 6:10 P.M. TO DISCUSS LEGAL MATTERS CONCERNING LITTGATION AND REAL ESTATE. VICE CHAIRMAN NORDEN SECONDED THE MOTION. Ayes: Nays: Abstained: Absent: Bums, Norden, Gulley, Zieg None None Innes The Chairman declared the motion carried. l e I '· EBA BOC Regular Meeting 03/30/94 MOTION COMMISSIONER ZIEG MOVED TO RECONVENE THE REGULAR PORTION OF THE ENGLEWOOD HOUSING AUTHORITY BOARD OF COMMISSIONERS MEETING AT 9:10· P.M. COMMISSIONER GULLEY SECONDED THE MOTION. Ayes: Nays: Abstained: Absent: Bums, Norden, Gulley, Innes, Zieg None None None The Chairman declared the motion carried. IV. MINUTES A. Regular Meeting held February 23, 1994. Amended : Director's Report, Narrative, Railroad Depot. Page 4, Vice Chairman Norden amended these minutes to state that she felt the EHA must have the final decision on what rehab gets done to the train depot using EHA funds and not the architect or the Englewood Historical Society. MOTION COMMISSIONER GULLEY MOVED TO ACCEPT AS AMENDED THE MINUTES OF THE REGULAR MEETING OF THE ENGLEWOOD HOUSING AUTHORITY BOARD OF COMMISSIONERS HELD FEBRUARY 23, 1994. COMMISSIONER INNES SECONDED THE MOTION. Ayes: Nays: Abstained: Absent: Bums, Norden, Gulley, Innes, Zieg None None None The Chairman declared the motion carried. 2. ' - EBA BOC Regular Meeting 03/30/94 B. Annual Meeting held February 23, 1994 MOTION COMMISSIONER GULLEY MOVED TO ACCEPT THE MINUTES OF THE ANNUAL MEETING OF THE ENGLEWOOD HOUSING AUTHORITY BOARD OF COMMISSIONERS HELD FEBRUARY 23, 1994. COMMISSIONER INNES SECONDED THE MOTION. Ayes: Burns, Norden, Gulley, Innes, Zieg Nays: None Abstained: None Absent: None The Chairman declared the motion carried. C. Executive Session held February 23, 1994 MOTION COMMISSIONER GULLEY MOVED TO ACCEPT THE MINUTES, AS AMENDED, OF THE EXECUTIVE SESSION HELD DURING THE REGULAR MEETING OF THE ENGLEWOOD HOUSING AUTHORITY BOARD OF COMMISSIONERS ON FEBRUARY 23, 1994 TO DISCUSS A LEGAL MATTER AND REAL ESTATE MATTERS. COMMISSIONER INNES SECONDED THE MOTION. Ayes: Nays: Abstained: Absent: Burns, Norden, Gulley, Innes, Zieg None None None The Chairman declared the motion carried. 3. ·e EBA BOC Regular Meeting 03/30/94 v. PRE-SCHEDULED VISITORS There were no pre-scheduled visitors at this Regular Meeting of the Englewood Housing Authority Board of Commissioners . VI. DIRECTOR'S REPORT A. Narrative Report Briefly noted. B. Program Reports Briefly noted. VIL DISCUSSION ITEMS, MOTIONS AND RESOLUTIONS A. Adoption of Resolution No. 2 , Series of 1994, authorizing submission ofPHMAP Certification. PHMAP is an acronym for fublic Housing Management Assessment frogram. This is a set of 12 indicators used to evaluate only the public housing program of housing authorities . HUD requires us to submit our results on the indicators by a certification no later than April 1, 1994. Executive Director Malinowski informed the Board that once the information is submitted to HUD, the EHA will receive a grade for each indicator as delineated in HUD regulations . That grade will lead to an overall designation of high performer, standard, or troubled . Last year, the EHA received a grade of 96.05% which is the "High Performer" range. HUD requires a Board resolution to be submitted with the certification form. MOTION COMMISSIONER GULLEY MOVED TO ADOPT RESOLUTION NO. 2, SERIES OF 1994, AUTHORIZING SUBMISSION OF HUD FORM 50072 -PHMAP CERTIFICATION FOR THE FISCAL YEAR ENDING DECEMBER 31, 1993 -TO THE UNITED STATES DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT. COMMISSIONER INNES SECONDED THE MOTION. Ayes: Nays: Abstained: Absent: Bums, Norden, Gulley, Innes, Zieg None None None The Chairman declared the motion carried. 4. EBA BOC Regular Meeting 03/30/94 B. Ratification of sale of property. The Englewood Housing Authority received a full-price offer for the Elati Triplex. Since , the Board previously authorized listing the property at appraised value and since the offer was the appraised value with no significant contingencies, the Executive Director executed the contract. Executive Director Malinowski informed the Board that the closing is scheduled for April 20 . MOTION COMMISSIONER GULLEY MOVED TO RATIFY THE SALE OF 2900 SOUTH ELA TI STREET, 496 WEST BATES AND 498 WEST BATES, AKA THE ELATI TRIPLEX, TO CLARK PROPERTIES, LTD. FOR $115,000. VICE CHAIRMAN NORDEN SECONDED THE · MOTION. Ayes: Nays: Abstained: Absent: Bums, Norden, Gulley, Innes, Zieg None None None The Chairman declared the motion carried. C. Sale and loan to buyer of property at 3356 South Pennsylvania Street. The property at 3356 South Pennsylvania Street is the property the EHA moved onto a vacant lot and decided to do extensive rehab on, resulting in an appraised value of $100,000. There was some concern that the price might make it difficult to sell to a buyer who was below 80% of median income. The Board agreed that after the rehab work was complete, the income limit would be expanded to 100% of median income. The EHA received an offer from a potential buyer who is at 74% of median income. The offering price for the property was $105,000 (5% above appraised value which was $100,000). The potential buyer proposed providing cash at closing in the amount of $16,300 and getting a first mortgage in the amount of $77,700 . After including the earnest money deposit, a shortfall of $10,000 was left. Executive Director Malinowski offered three options: 5. e EBA BOC Regular Meeting 03/30/94 1. Reduce the price by $5,000 to appraised value and offer a second mortgage in the amount of$5,000; 2. Accept the price as-is and offer a second mortgage at $10,000; 3. Reject the offer. Option No. 2 was discussed and further discussion ensued regarding the use of a five-year declining lien in the amount of $10,000, forgiving $2,000 per year. Commissioner Zieg strongly objected to forgiving any portion of the second mortgage. Executive Director Malinowski suggested a zero percent deferred payment loan due upon sale or transfer of title, but Commissioner Zieg felt there should be a market interest rate attached to the second mortgage. Executive Director Malinowski warned that the lender of the first mortgage might not find that acceptable. MOTION COMMISSIONER GULLEY MOVED TO ACCEPT THE OFFERING PRICE OF $105,000 ON 3356 SOUTH PENNSYLVANIA STREET AND OFFER THE POTENTIAL BUYER A SECOND MORTGAGE OF $10,000 AS A DEFERRED, PRINCIPAL-AND-INTEREST LOAN WITH INTEREST AT THE SAME RATE AS THE FIRST MORTGAGE. THE SECOND MORTGAGE WOULD BE DUE UPON SALE OR TRANSFER OF TITLE. COMMISSIONER INNES SECONDED THE MOTION. Ayes: Nays: Abstained: Absent: Burns, Norden, Gulley, Innes, Zieg None None None The Chairman declared the motion carried. D . Request to take rehab loan application from a family that is over 100% of median income. The Rehab Loan Program policies state that "borrowers who are owner/occupants cannot have their income exceed 100% of the median income as defined by HUD except for designated target areas." This income limit is set by request from the Bank Consortium in order that the Rehab Loan Program not be in competition with the banks. The assumption was made that families above 100% of the median income should be able to qualify for traditional bank loans. Janet Grimmett, Housing Finance Specialist, received a request to apply for a rehab loan from a family that is at 104% of the median income. This family filed bankruptcy in 1990 due to the loss of a job resulting from the collapse of the oil shale industry on the Western Slope of Colorado . 6. 1 e EBA BOC Regular Meeting 03/30/94 The homeowner and the Housing Finance Specialist had, between them, asked the banks in the rehab consortium if they would consider an application from this family for a loan. , The Banks all stated that it was their policy to not approve an application from anyone if · the applicant has filed a bankruptcy in the last seven years. The Housing Finance Specialist was recommending that the EHA Board waive (for this case only) the 100% of median income requirement and refer the application to the Rehab Loan Committee. The loan would be considered for approval by the Rehab Loan Committee based on all other Rehab Loan Program policies. Discussion ensued regarding if this family was really the low-income family that the Rehab Loan Committee's policies intended to target. Commissioner Zieg stated that he wanted to waive the I 00% of median income requirement and refer this loan back to the Rehab Loan Committee to see what they wanted to do with it. Vice Chairman Norden stated that the issue here was whether or not the EHA Board wanted to help someone who is over 100% of median income. Commissioner Zieg stated that by his recommendation that the Board refer this request back to Rehab Loan Committee for consideration, that it was Ok for the EHA to help someone who is over I 00% of median income. Executive Director Malinowski stated that the Board just "got tough" with someone who is at 74% of median income by not helping them purchase a house, and he asked if the Board felt they were being inconsistent with helping a family who is over I 04% of median income to get a rehab loan. Commissioner Zieg stated that one situation involved a grant (the house purchase using a five year-declining lien of $10,000 for the second mortgage) and the other involved a loan that would be repaid. MOTION COMMISSIONER ZIEG MOVED TO WAIVE THE 100% OF MEDIAN INCOME REQUIREMENT OF THE REHAB LOAN PROGRAM, FOR THIS CASE ONLY, AND REFER THE APPLICATION FOR A REHAB LOAN FROM THE FAMILY AT 104% OF MEDIAN INCOME TO THE REHAB LOAN COMMITTEE. COMMISSIONER INNES SECONDED THE MOTION. Ayes: Nays: Abstained: Absent: Burns, Gulley, Innes, Zieg Norden None None The Chairman declared the motion carried. VIII. FINANCIAL REPORTS There were no current financial statements due to the year-end closings for 1993 . 7. EBA BOC Regular Meeting 03/30/94 IX. CONSENT AGENDA All items noted with brief discussion. MOTION COMMISSIONER INNES MOVED TO FORMALLY COMMEND BOB STEVENSON, ENGLEWOOD HOUSING AUTHORITY MAINTENANCE WORKER, FOR HIS EXCELLENCE IN SERVICE AS NOTED IN THE LEITER DATED FEBRUARY 23, 1994, FROM A SIMON CENTER RESIDENT. COMMISSIONER ZIEG SECONDED THE MOTION. Ayes: Bums, Norden, Gulley, Innes, Zieg Nays: None Abstained: None Absent: None X. GENERAL DISCUSSION A. Commissioners' Choice Chairman Bums briefly informed the Board of his attendance at the NAHRO Legislative Conference in Washington DC . B. Director's Choice Executive Director Malinowski informed the Board he had nothing for discussion under this agenda item . XL ADJOURNMENT MOTION COMMISSIONER GULLEY MOVED TO ADJOURN THE REGULAR MEETING OF THE ENGLEWOOD HOUSING AUTHORITY BOARD OF COMMISSIONERS' HELD MARCH 30, 1994, AT 9:35 PM. 8.