HomeMy WebLinkAbout2006-09-06 EHA MINUTES•
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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
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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.
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EHA BOC Regular Meeting
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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
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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
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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
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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 .
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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
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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
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Dawn Shepherd,xecutiveiector
Englewood Housing Authority
Board of Commissioners