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HomeMy WebLinkAbout2006-09-06 EHA MINUTES• • • I. CALL TO ORDER ENGLEWOOD HOUSING AUTHORITY BOARD OF COMMISSIONERS Regular Meeting September 6, 2006 The Regular Meeting of the· Englewood Housing Authority Board of Commissioners was called to order at 4:30 p.m. on Wednesday, September 6, 2006, at 3460 South Sherman Street, Suite 203, Englewood, Colorado, 80113, by Chair, Shelley Thompson. II. ROLL CALL Members Present: Members Absent: Also Present: Shelley Thompson, Chair Rodger Hara, Vice Chair Beverly Bradshaw, Commissioner Ernie Arterburn, Commissioner James Woodward, Ex Officio C.J. Cullinan, Alternate Charles Carter, Commissioner Dawn Shepherd, Executive Director Geula Sherman, Financial Services Manager . Renee Tullius, Administrative Manager Dean Rohr, Operations Manager Herny Burgwyn, The Burgwyn Company III. PRESCHEDULED VISITOR Herny Burgwyn recapped events occurring prior to Colorado Housing Finance Authority (CHFA) returning the tax credit application for The Terraces on Pennsylvania {The Terraces) to Mr. Burgwyn. Mr. Burgwyn had believed that as he had a 25% interest in the 28th and Clay Residences, which did receive a Low Income Housing Tax Credit (LIHTC) reservation, only 25% of the value of that reservation would be credited to his LIHTC account. That 25% plus the value of the .LIHTC for The Terraces would have been under the CHF A imposed cap of $1.1 million per account. However, CHFA's legal department ruled that the entire value of the LIHTC reservation for 28th and Clay must be applied to Mr. Burgwyn's account making it impossible for CHFA to accept the application for The Terraces on Pennsylvania. Mr. Burgwyn stated once the building permit for 28th and Clay is appiied for, his LIHTC account with CHF A will drop to zero once again. Mr. Burgwyn does not have another project which is likely to "bump" the Terraces position when the application is resubmitted. Mr. Burgwyn chacterarized ,_ • • • EHA BOC Regular Meeting 09-6-2006 CHF A staff as extremely interested in the project, noting that it is difficult to receive a tax credit award at first application. The 28 1h and Clay project has been "in the pipeline" for a year. The Terraces' location outside of the city of Denver may be advantageous .. Commissioner Hara noted that much is dependent on the other projects submitting applications, inquiring into the likelihood of Mr. Burgwyn becoming involved in the East Village project. Mr. Burgwyn stated that he believed that the affordable portion of that development was complete and the developers would not solicit him for luxury units. Mr. Burgwyn suggested the possibility of a loan from Mile High Housing to cover the cost of Odell Architects producing design drawings, approximately $125,000. Commissioner Bradshaw noted that the City of Englewood did have funds pooled at CHF A and also suggested contacting Bob Simpson about the possibility of utilizing CDBG funding. · Chair Thompson inquired into the monetary significance of the delay. Mr. Burgwyn believes the delay impacts time more than construction costs. Tax credits are indexed to construction cost therefore, the value of the tax credit would rise with .construction costs. The project should be delayed about 60 days. Commissioner Hara did note unknown risks, specifically interest rate risk and fluctuations in the housing market affecting the rental market. A drop in the area median income could cause a drop in the rental market. A decrease in the rental amounts EHA could expect to receive which would lower the amount of the loan the project would be able to support, potentially creating an equity gap . Dawn Shepherd stated that Colonial Bank is processing the extension of the existing loan until May 2007. Commissioner Hara suggested borrowing funds for the design drawings from Colonial. Dawn Shepherd will make inquiries. Mr. Burgwyn thanked the Board and left the meeting at 5 pm. A brief discussion of the terms of the development agreement assigning responsibility for interest payments during this or any subsequent delay to Mr. Burgwyn followed. Commissioner Hara noted that Housing Authorities must partner with an experienced developer. CHF A requires that the recipient of a tax credit award have sufficient experience and knowledge to complete the developme~t while complying with all regulations and requirements . An inexperienced housing authority is not a viable partner neither for CHF A, nor for an investor wishing to utilize tax credits. Developers have the financial statement to attract lending institutions and other potential tax credit partners. Commissioner Hara chacterarized Aegon, a potential investor, as a good partner. Dawn Shepherd informed the Board that Tom Munds of the Englewood Herald suggested she update the community of the status of The Terraces via a letter to the editor. Commissioner Bradshaw suggested utilizing the Viewpoint section of the Englewood Herald. Gary Sears, City Manager of Englewood, also requested a letter updating City Council on the status of the project. Dawn Shepherd planned to · provide this subsequent to this board meeting. 2 • • • EHA BOC Regular Meeting 09-6-2006 VI. MINUTES A. Special Meeting held July 27, 2006. Chair Thompson noted that the members required to approve the minutes were not present; therefore, these minutes could not be approved. They are held until the board meeting on October 4, 2006 B. Regular Meeting held August 8, 2006. MOTION COMMISSIONER ARTERBURN MOVED TO ACCEPT AND APPROVE THE MINUTES OF THE REGULAR MEETING OF THE ENGLEWOOD HOUSING AUTHORITY BOARD OF COMMISSIONERS HELD AUGUST 8, 2006 . COMMISSIONER BRADSHAW SECONDED THE MOTION. Ayes : Nays: Thompson, Bradshaw, Arterburn None Abstained: Hara Absent: Carter The Chair declared the motion carried. V. DIRECTOR'S REPORT A. Narrative Councilmember Woodward discussed the status of the required noise assessment of the Terraces for the CDBG grant for demolition of existing structures on the building sites of · The Terraces. The HUD environmental officer has agreed to accept certification of noise levels when the building is completed. PIC is the acronym for Public and Indian Housing Information Center. B. Financial Reports 3 • • • EHA BOC Regular Meeting 09-6-2006 Geula Sherman reported that approximately 20% of landlords are participating in direct deposit. Commissioner Bradshaw inquired about trash removal costs. Dawn Shepherd reported that EHA did solicit comparison bids for trash removal without success. One company did not respond at all; another did not want to deal with our difficult collection location. Eagle's contract does contain a clause allowing for cost adjustments for fuel. Dean Rohr praised their responsiveness and excellent service noting that they are an Englewood business and we were one of their first cµstomers. Geula Sherman noted excess funds in the voucher program. Dawn Shepherd reported the excess funds resulted from restored funding. Section 8 staff is extremely busy processing and issuing vouchers. Staff is holding large numbers of briefings, 25 applicants were briefed that day. Applicants are having difficulty finding units. EHA is terminating clients for cause, when necessary. Both impact and slow the rate at which staff can lease units. C. Program Reports Dawn Shepherd noted increased interest in the Normandy but for two bedroom units, none of which are available for lease. Staff has planned an advertising banner for one bedroom units at the Normandy to be displayed at the corner of highway 285 and Pennsylvania . VI. DISCUSSION ITEMS, MOTIONS AND RESOLUTIONS A. Salary Survey Dawn Shepherd recapped the difficulties experienced when attempting to recruit maintenance staff and the difficulty retaining existing staff. Very few applicants responded to the maintenance tech job advertisement; other agencies have lured staff away with higher salaries. The EHA salary structure has not been analyzed since 1997. The Nelrod. Company can complete a salary study in 6 weeks. Any necessary adjustment could be included in the 2007 budget. MOTION COMMISSIONER BRADSHAW MOVED TO APPROVE THE EXPENDITURE OF $2,547.00 FOR NELROD COMP ANY TO CONDUCT A SALARY STUDY. COMMISSIONER HARA SECONDED THE MOTION. Ayes: Nays: Thompson, Bradshaw, Hara, Arterburn None 4 ' • • • EHA BOC Regular Meeting 09-6-2006 Abstained: Absent: None Carter Chair Thompson declared the motion carried. B. Resolution 11 Approving Amendments to the Admissions and Continued Occupancy Plan(ACOP) Dawn Shepherd related that historically the high-rise buildings, Orchard Place and Simon Center, were designed, designated and constructed for ·the elderly. When HUD's definition of elderly changed Orchard Place gradually came to house ap increasing number of disabied residents. Its' population currently is approximately 50% disabled. The mix of senior and young disabled populations is extremely problematic. The goal of these changes to the ACOP is to embrace the purpose of the buildings while housing people within the expanded definition of elderly while complying with fair housing regulations. The EHA Resident Advisory Board includes a young, disabled resident who is a resident of Orchard Place. The Resident Board reviewed the proposed changes agreeing with all of them. The young disabled resident stated he did not like the changes that had occurred in the population of Orchard Place. Physically disabled residents feel threatened and intimidated by the mentally disabled residents. The population of disabled residents increased because as the proportion of disabled residents to seniors increased, Orchard Place became less desirable to the senior residents. The last resident survey indicated a higher than desired level of fear for safety. A discussion of disabled housing .options took place and the expertise necessary to manage such facilities. Changes in the residence population will occur due to attrition; no one will lose housing because of changes to the ACOP. Should the Board wish to investigate the challenges and requirements inherent in housing the disabled population, Commissioner Hara can contact individuals who develop and operate such housing facilities. Councilmember Woodward asked if the addition of the descriptive word "adult" following the word disabled would be necessary to provide clarity. Legal counsel will be consulted. MOTION COMMISSIONER BRADSHAW MOVED TO APPROVE RESOLUTION 11 AMENDING THE ADMISSION AND CONTINUED OCCUPANCY PLAN COMMISSIONER ARTERBURN SECONDED THE MOTION. Ayes: Nays: Thompson, Bradshaw, Hara, Arterburn . ·None 5 • • • EHA BOC Regular Meeting 09-6-2006 Abstained: Absent: None Carter Chair Thompson declared the motion carried. C. Code of Ethics · This topic will be discussed at a meeting to be held November 4th. The Commissioners agreed to hold the November board meeting on November 4th to be followed by a planning meeting. Commissioner Hara suggested roll call be in the late morning. The Board Meeting could be followed by lunch, a planning meeting and perhaps a family get-together such as a pot luck. D. Resolution 12 Approving the Termination of HV ACRI 's Right to Proceed under Agreement between EHA and HVRCAl Dated July 10, 2006. Dawn Shepherd conveyed that Dean Rohr performed exemplary due-diligence prior to acceptance of the contract with HV ACRI. HV ACRI has proved unable to provide a performance bond as required by the contract. Additionally HV ACRI has not supplied the engineering information to Trane that would allow Trane to provide the HV AC unit. EHA staff discovered that the Trane unit had not been shipped after assurances from HV ACRI that it was shipped in early August. HV ACRI will be unable to complete installation in compliance with the contractual terms and specified completion date of September 28th. After consultation with iegal counsel, Dawn Shepherd recommends termination of this agreement. She and Dean Rohr recommend acceptance of the second lowest bid by Major Heating and Air Conditioning (Major). This bid remains active and specifies a CME unit which is designed and manufactured as a retrofit replacement unit for the existing Lennox unit. This bid does not include new ductwork; existing ductwork will be -utilized. An additional cost not included in this bid will be the replacing the ductwork which HV ACRI removed. New ductwork must be fabricated for this section and installed. Major has not inspected the site to estimate this . cost. MOTION COMMISSIONER HARA MOVED TO APPROVE RESOLUTION 12 APPROVING THE TERMINATION OF HVACRl 'S RIGHT TO PROCEED FOR CAUSE UNDER THE AGREEMENT BETWEEN EHA AND HVACRl MECHANICAL DATED JULY 10, 2006. COMMISSIONER BRADSHAW SECONDED THE MOTION . 6 • • • EHA BOC R,egular Meeting 09-6-2006 Ayes: Nays: Thompson, , Bradshaw, Hara, Arterburn None Abstained: None Absent: Carter · Chair Thompson declared the motion carried. VII. INFORMATION.AGENDA A. FSS Quarterly Report There was no discussion VIII. GENERAL DISCUSSION A. Commissioner's Choice Chair Thompson reported on the Boards and Commission Appreciation Night at which Chair Thompson made a .short speech about the Housing Authority activities and planned project. B. Director's Choice No items were discussed. C. City Council Communication Councilmember Woodward thanked the Commissioners for their attendance at the Boards and Commissions Appreciation Night held August 28, 2006. X. ADJOURNMENT INTO EXECUTIVE SESSION MOTION 7 ' • • • EHA BOC Regular Meeting 09-6-2006 COMMISSIONER ARTERBURN MOVED TO ADJOURN THE REGULAR MEETING ·oF THE ENGLEWOOD HOUSING AUTHORITY BOARD OF COMMISSIONERS HELD SEPTEMBER 6, 2006 AT 6:45 P.M. INTO EXECUTIVE SESSION COMMISSIONER HARA SECONDED THE MOTION. THE MOTION CARRIED. Chair Thompson adjourned the meeting into executive session at 6:45pm. Shelley Thompso hair Englewood Housing Authority Board of Commissioners 8 Dawn Shepherd,xecutiveiector Englewood Housing Authority Board of Commissioners