MINUTES OF A REGULAR MEETING

OF THE  

LAWRENCE-DOUGLAS COUNTY HOUSING AUTHORITY

BOARD OF COMMISSIONERS

December 19, 2005                                                                                         Babcock Place     

5:30 p.m.                                                                                                          Meal Site      

1.         Call of Roll.

            The meeting was called to order at 5:35 p. m. by Chair, Mark Gonzales.  Upon call of roll the following Commissioners answered present:

               Wes Smith

               Brenda O’Keefe

               Mark Gonzales  

               Willie Amison

            Also present were Charlotte Knoche, Vickie Butler and Barbara Huppee, LDCHA staff members. 

            Absent with prior approval:  Commissioner Johnson.

2.         Approve Minutes of November 28, 2005 Board of Commissioners Meeting.

            Commissioner O’Keefe moved to accept the November Board meeting minutes as presented.  Commissioner Amison seconded the motion.  The motion carried.

3.          Receive Comments from Tenants and Public.

            There were no tenants or members of the public present at this time.

4          Receive Financial Reports.

            A.        Distribute November Accounting Summary.

            Chairman Gonzales distributed the accounting summaries for November. 

            B.         Receive November  2005 Financial Report.

             November brought the agency 92% through the budget year.  Total rental income remained over budget projections at 99%.  Total income was over budget at 100%.  Operating subsidy was on line at 92%.  Total operating receipts were over budget projections at 98%. Total administrative expenses were running over at 94%.  Tenant services were running over projections at 166%. Water and sewer continued to run under budget projections, electricity was on line and gas continued to run over at 97%.  Total utilities were under 2% at 90%.  Total ordinary maintenance was running over projections at 95%.  Total operating expenses were 4% under budget projections.  Year-to-date the agency showed an operating surplus of $163,611, $146,007 more than the projected surplus of $17,604.40.

            Commissioner Smith moved to approve the November financial report as presented.  Commissioner Amison seconded the motion.  The motion carried. 

5.         CONSENT AGENDA

            A.        Receive Report on 2005 Employee Performance Incentive Awards.

            B.         Resolution 909:  Amend Employee Performance Incentive Award Policy.

            C.        Resolution 910:  Approve Revisions to the 2005 Public Housing Operating Budget.

            D.        Resolution 911:  Establish a Policy Prohibiting Recreational and Commercial Vehicles, Boats, and Motor Crafts, Machinery and Equipment from being Parker on LDCHA Property.

            E.         Resolution 912:  Write off Capital Inventory.

            F.         Receive Latest Report on Natural Gas Prices.

            G.        Resolution 9:13  Establish a Policy Prohibiting Tenants from Having Trampolines and Other Attractive Nuisances that Pose Risks to Health and Safety.

            Commissioner Smith asked that item D., Resolution 911, be removed from the Consent Agenda for discussion.

            Chairman Gonzales removed the item to the Regular Agenda.  Commissioner Smith moved to approve the Consent Agenda with item D removed.  Commissioner O’Keefe seconded the motion.  The motion carried.

            Mr. Dunn, Landlords of Lawrence, joined the meeting.

6.         REGULAR AGENDA

            5D.      Resolution 911:  Establish a Policy Prohibiting Recreational and Commercial Vehicles, Boats, and Motor Crafts, Machinery and Equipment from being Parker on LDCHA Property.

            Commissioner Smith questioned instituting a policy prohibiting commercial vehicles as individuals may have occasion to drive company vehicles home. Ms. Huppee responded stating commercial was not identified by logo or trade but by size only.  A vehicle used in the plumbing business, for example, would be acceptable as long as it was in the driveway and not blocking public right-of-way or view.  Commissioner Smith also pointed out that campers and recreational vehicles that have to be packed with supplies and camping gear should be allowed time to load and unload.  He said he would approve the policy if it were amended to include “for no longer than 48-hours”.  Commissioner O’Keefe mentioned the very limited parking in certain scattered sites properties where there was only one parking space available.  After board discussion Commissioner Smith moved to approve Resolution 911 as amended to state:  “No recreational vehicle, large vehicle, commercial boat, motor craft or motorized self-propelled camper, non-motorized travel trailer, boat or canoe on a trailer shall be parked or stored on the Lawrence-Douglas County Housing Authority premises for longer than 48-hours.  No non-motorized travel trailer or boat or canoe shall be left unattached on the LDCHA premises for longer than 48-hours.”  Commissioner O’Keefe seconded the motion.  The motion passed unanimously.

             A.       Resolution 914:  Approve Submission of 2006 Public Housing Operating Subsidy Calculation.

            Ms. Huppee presented the 2006 subsidy calculation for the Public Housing program.  This calculation of $583,505 was based on HUD instructions issued November 15, 2005.  The increase in the subsidy calculation is attributable to a higher allowable utilities expense level because of increased utility costs.  The calculation is based on 100% eligibility.  Congress has only funded subsidy at 100% eligibility once in the last twenty years. In 2005 the agency was funded at 88.8%.  HUD will adjust the calculation based upon its review and final congressional action on 2006 appropriations.  This is the last year public housing operating subsidy will be based on this formula.  Next year a new formula will be implemented under the new project based accounting requirements.  Subsidy will then be determined on a project based formula with separate subsidy calculations for each of the agency’s developments and not on an agency wide basis.

            B.         Receive Report on Peterson Acres Expansion Project.

            Ms. Huppee reported that the revised preliminary development plan for Peterson Acres Expansion Project was unanimously approved by the Planning Commission at its December 12 meeting.  The plan goes before the City Commission for final approval in January.  The funding announcement from the Federal Home Loan Bank on its affordable housing grant decisions was received Friday, December 16.  The Peterson Acres project was approved as an alternate. The application can be resubmitted in the next round, April 2006; however by that time the project would be under construction.

            C.        Receive Report on Clinton Place Foreclosure.

            Several months ago the Board was informed that the executive director was notified in a telephone call from the Kansas City field office that HUD was going to foreclose on Clinton Place apartments.  Clinton Place was built in 1979 under a loan guarantee program through HUD.  It contains 58 one-bedroom apartments restricted to the elderly.  The property is privately owned and the owner is required to operate and maintain the property for low income elderly persons.  In exchange the owner received Section 8 subsidy equal to 120% of the local fair market rent.  These projects are referred to as project based Section 8.  Several years ago the regulations governing these developments became more stringent and the funding changed.  Owners were no longer guaranteed 120% of the fair market rent.  Their funding is limited to market rents only.  The mayor received an official notification letter from HUD regarding the foreclosure.  The executive director spoke with the HUD representative listed in the letter and was told that the housing authority and the city will be given first refusal to purchase the property. The price will be based on the value of the property determined by HUD.  HUD is expected to have the purchase package ready in January which will include mandatory and needed repairs to the property.  If the housing authority and the city do not purchase the property it will go to a foreclosure sale in late February.  The entity that purchases the property would have to adhere to the requirements outlined in the letter by maintaining it as affordable housing for the elderly.  The Board discussed this as an exciting opportunity for the agency and one that it should act upon.  Commissioner Smith moved to authorize the executive director to submit a letter of interest to HUD.  Commissioner Amison seconded the motion.  The motion passed unanimously.  Ms. Huppee stated a letter would be written tomorrow notifying HUD of the LDCHA interest in pursuing the purchase of Clinton Place apartments. Also she stated a letter of interest from the housing authority would not bind the agency or city to any action or requirement.

7.         Calendar and Announcements.

8.         Adjournment.

            There being no further items of business, Chairman Gonzales moved to adjourn.  Commissioner Amison seconded the motion.   The meeting was adjourned at 6:30 p.m.

_____________________________                                 _____________________________

Chair                                                                                   Secretary                                 Attest