HomeMy WebLinkAbout1994-03-30 EHA MINUTESe
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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.
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EBA BOC Regular Meeting
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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.
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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.
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EBA BOC Regular Meeting
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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.
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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:
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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 .
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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 .
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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.
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