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HomeMy WebLinkAbout2007-04-04 EHA MINUTES• • • I. CALL TO ORDER ENGLEWOOD HOUSING AUTHORITY BOARD OF COMMISSIONERS Regular Meeting April 4, 2007 The Regular Meeting of the Englewood Housing Authority Board of Commissioners was called to order at 3 :45 p .m . on Wednesday, April 4, 2007 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 Ernie Arterburn, Commissioner Charles Carter, Commissioner James Woodward, Ex Officio C.J. Cullinan, Alternate Beverly Bradshaw, Commissioner Dawn Shepherd, Executive Director Geula Sherman, Financial Services Manager Renee Tullius, Administrative Manager III. PRESCHEDULED VISITORS There were no prescheduled visitors. IV. MINUTES A. Regular Meeting held February 20, 2007. MOTION COMMISSIONER ARTERBURN MOVED TO ACCEPT AND APPROVE THE MINUTES OF THE REGULAR MEETINGOF THE ENGLEWOOD HOUSING AUTHORITY BOARD OF COMMISSIONERS HELD FEBRUARY 20, 2007. COMMISSIONER CARTER SECONDED THE MOTION. Ayes : Thompson , Hara, Arterburn, Carter .. • • • EHA BOC Regular Meeting 4-04-2007 Nays: Abstained : Absent: None None Bradshaw The Chair declared the motion carried. V. DIRECTOR'S REPORT A. Narrative Dawn Shepherd discussed Sheridan's Housing Authority's SEMAP score and their rating as standard performer noting staffs disappointment in not attaining high performer status. She explained that the reduction in funding in 2005 caused EHA and SHA both to lower their payment standard to avoid terminating clients. However when funding was restored in 2006 those payment standards caused budget underutilization despite the fact that EHA and SHA both restored the payment standard, contacted applicants on the waiting list and issued vouchers as quickly as possible. EHA's Family Self Sufficiency program and its' ability to qualify for bonus points for deconcentration allowed it to achieve high performer status. Half of the housing authorities nationally experienced the same difficulties with under-utilization. A score of standard performer does not result in sanctions or decreases in funding . Councilmember Woodward noted that the original start of construction on The Terraces was projected to be May. The delay in receiving the award of tax credits has caused the projected construction start date to be August or September. Dawn Shepherd reported that Henry Burgwyn sold the tax credits for The Terraces to Aegon for 99 cents on the dollar. Vice Chair Hara commented that was very favorable explaining that under the tax credit program there are ten years worth of tax credits available to the owner of a low income housing tax credit project proportional to the percentage of the majority of the costs of developing the project excluding land and various soft costs such as costs associated with permanent financing, application fees and consultants. For example if a project cost $1 ,000,000.00 and 90% of its costs were eligible there would be $900,000.00 in eligible basis. Every month the Treasury Department publishes a factor determining the allowable percentage of the costs recognized for tax credits . For example, if that factor was 8%, 8 % of $900,000 or $74,000 would be the total tax credit available for one year. Over the ten year period $740,000 in tax credits would be available to the owner. 99 cents of one dollar is the present value the investor is willing to pay to use those credits. 99 cents on the dollar is an excellent price as the price investors have been willing to pay for tax credits has been decreasing. CHF A(Colorado Housing and Finance Authority) used 92 cents on the dollar when evaluating our proposal regarding The Terraces. The fact that The Terraces was feasible if the tax credits were sold at 92 cents on the dollar and we sold the tax credits at 99 cents on the dollar indicates a 2 - • • • EHA BOC Regular Meeting 4-04-2007 significant reduction in the amount of funds that will need to be borrowed. CHF A was influenced by Henry Burgwyn's experience and our expertise in senior housing during their consideration of the application. Aegon is a Dutch company. The American branch is TransAmerican Insurance. Aegon has significant income and needs the tax credits to offset federal income tax payables. Aegon will have a 99.9% interest in our partnership agreement with Henry Burgwyn as a limited partner. EHA will be responsible for regulatory compliance and reporting and receive 90% of the income. Aegon will assume 99% of loses . It must be structured this way for tax purposes . Henry Burgwyn indicated Bank of Choice would have an opportunity to be the lender but it is unknown who else he contacted as a possible lender. Councilmember Woodward inquired as to EHA's ability to settle with the tenant involved in the ongoing fraud dispute . EHA is able to settle their portion of the dispute. The Office of the Inspector General (OIG) may purse it further although OIG does not normally pursue an action if the housing authority has settled. Commissioner Arterburn clarified that the new HUD regulation requiring EHA to obtain a doctor's certification of disability is not effective retroactively. Dawn Shepherd commented on the difficulty of obtaining third party verifications . B. Financial Reports Vice Chair Hara confirmed that the prior year adjustment reflected in the management fund account concerned property sold in 2006. Although the financial reports appear to show a loss, it is due to a prior year adjustment while all accounts for the present year are in a positive status. Costs for snow removal are reflected in payroll, not as a line item . C. Program Reports Dawn Shepherd reported that we received nine notices of intent to vacant for Orchard Place, Simon Center and the Normandy. EHA maintenance staff is now replacing cabinets and countertops in-house. In the past a vendor was utilized for cabinet and countertop replacement. Although this requires adherence to Davis-Bacon Wage Decision regulations and pay rates on all unit renovations in Orchard Place and the public housing duplexes, it offers staff timing flexibility and the ability to stretch of Capital Fund Program monies further. VI. DISCUSSION ITEMS, MOTIONS AND RESOLUTIONS 3 • • EHA BOC Regular Meeting 4-04-2007 A. The Board agreed to move the July meeting from July 4th to July 11th. B. Resolution 6 Approving An Amendment to the Section 8 Administrative Plan There was a brief discussion of the 10 day grace period allowed clients to make their monthly repayment and the confirmation that our definition of fraud is the same as HUD. This amendment adds a provision enabling voucher holders to enter into agreements with the housing authority to repay funds owed due to such things as late or non-reporting of income or loss of deductions that would cause their portion of the rent to increase. Previous versions of the Administrative Plan contained such a provision. During the transition from one plan to another, this important provision was inadvertently dropped. EHA staff is requesting it be reinstated. MOTION VICE CHAIR HARA MOVED TO APPROVE RESOLUTION 6 APPROVING AN AMENDMENT TO THE SECTION 8 ADMINISTRATIVE PLAN. COMMISSIONER ARTERBURN SECONDED THE MOTION. Ayes: Nays: Abstained: Absent : Thompson, Hara, Arterburn, Carter None None Bradshaw The Chair declared the motion carried. C. Breakfast with Englewood City Council. The Board of Commissioner of the Englewood Housing Authority will host a breakfast for the Englewood City Council on May 4th from 7:30 to 9:00. The purpose of the breakfast is to celebrate the housing authority's 35th anniversary, receiving the tax credit for The Terraces and to provide a forum to socialize. Chair Thompson will make welcoming comments and discuss the status of The Terraces . Tom Munds of the Englewood Herald will also be invited. The City Council and EHA are required to post a notice of the meeting. Chair Thompson will speak on behalf of the housing authority; Mayor Wolosyn will speak on behalf of the City Council. VII. INFORMATION AGENDA • 4 • • • EHA BOC Regular Meeting 4-04-2007 Chair Thompson commented that all items were familiar with the exception of the newly published HUD 2007 income limits. Dawn Shepherd directed the Board's attention to the REAC scores as high performer and the staffs efforts to achieve that score. She also drew attention to the Family Self-Sufficiency Report detailing the Sheridan graduate who moved into homeownership in February. Tom Munds has expressed interest in publishing her story. There was some discussion of the proper venue for the story. The Board determined that this story was appropriate for Mr. Munds although future interest items may appear in a Denver paper. It is anticipated that Mr. Munds will handle her story with sensitivity, preserving her anonymity. We have not received any offers on the Warren Street property, although Cornerstone Realty continues to receive inquiries. VIII. GENERAL DISCUSSION A. Commissioner's Choice Vice Chair Hara inquired as to the condition of a longtime resident who was involved in a pedestrian-auto accident. C.J. Cullinan announced her appointment to the Governor's Task Force on Health Care Staffing. Dawn Shepherd answered Commissioner Arterbum's inquiry regarding the closing of Pennsylvania Street during the construction of The Terraces by relating the City's decision not to approve closing the street. B. Director's Choice Dawn Shepherd thanked the Board for approving the funds for remodeling the first floor of the office building and replacing the heating and air conditioning unit. C. Council Communication Two members of City Council and two Englewood youth attended the National League of Cities Conference in Washington, D.C. in March. They were addressed by Senators Hillary Clinton and Joe Biden and also spent some time with Senators DeGette, Salazar and Allard. Councilmember Woodward attended a workshop on affordable housing discussing affordable housing built green and constructed similarly to or better than housing constructed by developers for the private market. Vice Chair Hara noted a Boulder Housing Partnership affordable, mixed-use, built green development which has been the recipient of many awards. Councilmember Woodward related City Council's efforts to reconsider required lot sizes applicable to duplexes as part of an effort to promote quality rental housing . 5 • • • EHA BOC Regular Meeting 4-04-2007 X. ADJOURNMENT MOTION COMMISSIONER HARA MOVED TO ADJOURN THE REGULAR MEETING OF THE ENGLEWOOD HOUSING AUTHORITY BOARD OF COMMISSIONERS. COMMISSIONER ARTERBURN SECONDED THE MOTION. THE MOTION CARRIED. Chair Thompson adjourned the meeting at 5 :00pm . h mpso , Chair Englewood Ho sing Authority Board of Commissioners 6 @a.WV\.~ Dawn Shepherd,ExecutieDirect Englewood Housing Authority Board of Commissioners