MINUTES OF A REGULAR MEETING

OF THE

LAWRENCE-DOUGLAS COUNTY HOUSING AUTHORITY

BOARD OF COMMISSIONERS

January 23, 2006 Edgewood Homes

5:30 p.m. Conference Room

1. Call of Roll.

The meeting was called to order at 5:30 p. m. by Chair, Mark Gonzales. The following Commissioners were present.

Wes Smith

Brenda O’Keefe

Mark Gonzales

Willie Amison

Sonya Johnson

Also present were Esther Kottwitz, Brookcreek Learning Center Executive Director, Charlotte Knoche, Milton Scott, Kris Hermanson, Suzanne Kerick and Vickie Butler, LDCHA staff members.

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 comments.

4 Receive December Financial Reports and Accounting Summaries.

A. Receive Preliminary December Public Housing Financial Reports.

With December reports the agency is 100% through the budget year. Total income is over budget projections at 101%. Operating subsidy is on line at 100%. Total operating receipts are over budget projections at 101%. Total administrative expenses are running under at 93%. Tenant services are also under at 88%. Utilities are running under budget projections with total utilities at 93% through the budget year. Total general expenses are at 96%. Total operating expenditures are 3% under budget projections at 97%. As of the December report, year-to-date the agency shows $140,024 in income over expenses, which is $59,680 more than the projected surplus of $80,344. This is a preliminary report for December and does not include accruals or non-cash depreciation items. The fee accountant is preparing 2005 close out. The year-end reports will be presented to the Board in February.

B. Receive Preliminary Section 8 4^th Quarter Financial Reports.

The 4^th quarter Section 8 reporting period the program has earned $356,834.76 in earned administrative fees. This is an aggregate total of 7,174 units under lease. The program has earned $10,650 in hard-to-house fees; a total of 142 units. Fees earned under the FSS and Homeownership Coordinator positions are $68,258. Interest earned on operating reserve investments year-to-date is $97,614.13. Expenses under the Section 8 program are those related directly to administrative expenses for operational costs to run the Section 8 program. As of December a total of $492,958.84 has been spent in administrative expenses. A total of $2,558,760.65 has been paid through December for Housing Assistance Payments (HAP). This is also a preliminary report as it does not contain any accruals. The final report will be presented at the February Board meeting. As of this report, the Section 8 program has earned $533,373.89 in total operating receipts, with $492,958.84 in operating expenses with operating reserves year-to-date of $40,415.05.

Commissioner Smith moved to approve both Public Housing and Section 8 financial reports. Commissioner O’Keefe seconded the motion. The motion carried.

5. CONSENT AGENDA

A. Resolution 915: Amend Policy on Lost, Misplaced, or Uncashed Checks.

B. Receive Information on the Elderly Housing Waiting List.

C. Receive Report on Status of the Peterson Acres Expansion Project. D. Receive Report on Resident Services Grant Application Outcomes. Commissioner O’Keefe moved to accept the Consent Agenda as presented. Commissioner Johnson seconded the motion. The motion passed unanimously.

6. REGULAR AGENDA

A. Resolution 916: Approve Request for Three Year Extension of the MTW Program and Authorize Executive Director to Sign an Amendment to the Original Agreement.

The Board has been aware of the agency operating under a MTW extension that formally expires March 30, 2006. HUD administratively extended the contract to December 31, 2006. In the 2006 Appropriations Act Congress authorized three year extensions for MTW agencies whose contract expired on or before September 30, 2006. The LDCHA was informed by a HUD representative in Washington that the agency was not eligible for the three year extension as the LDCHA termination date is December 2006. The agency challenged HUD’s authority to administratively change the March 2006 date of the contract. Staff believes that this situation will be resolved in favor of the LDCHA and requests authorization to submit a request to HUD for the three-year extension of the original contract.

The Board was unanimously in favor of requesting an extension. Chairman Gonzales moved to authorize the Executive Director to submit a request for a three year extension of the MTW Program. Commissioner Smith seconded the motion. The motion carried.

B. Receive Report from the Brookcreek Learning Center on its Corrective Action Plan for Complying with the Lease Terms on Enrollment. Take Action as Appropriate.

In November the board was informed that Brookcreek was not in compliance with its contract having only six public housing children enrolled. Its lease permits the use of units 159 and 160 rent and utilities free (except electricity) as long as it continually serves at least 22 public housing children across all 3 of its sites. In November the board deferred any action until receiving another report in January. The January report shows 12 public housing children enrolled and 5 openings with no waiting list. Ms. Kottwitz stated that she didn’t think there were 22 public housing children eligible for daycare and that East Heights may be providing day care for the children at Edgewood. Also, Ms. Kottwitz, Brookcreek Executive Director, identified a corrective action plan for review by the board which included collaboration with Resident Services to help with a marketing plan.

During discussion the board stated it would like to receive reports on what was working toward compliance as well as what was not working and would like to see progress being made to meet the compliance requirement. Comments were made that included setting a definite time frame for meeting the requirement of 22 children and surprise that Brookcreek did not have a waiting list for child care. Suggestions were made which included the possibility of offering part-time, evening and weekend day care. Ms. Kottwitz stated they would not be able to offer other hours of day care as the requirements were different. The question of Brookcreek possibly providing scholarships was mentioned. Ms. Kottwitz responded by stating DCCDA provides scholarships.

After discussion Commissioner Smith moved to require quarterly enrollment reports from Brookcreek and to again defer any action until receipt of the next report. Chairman Gonzales seconded the motion. The motion carried. The next quarterly report will be at the April Board meeting.

C. Receive Report on Clinton Place Inspection and Status of HUD Foreclosure Action.

The board had been informed that HUD is foreclosing on Clinton Place Apartments. At the December meeting it authorized the executive director to inform HUD that the LDCHA was interested in acquiring the property. LDCHA staff conducted an inspection of the facility January 9 and a full report was presented to the board that included basic facts on Clinton Place, the property condition, and positive considerations. HUD staff has informed the LDCHA that they would receive a comprehensive maintenance report mid-January and would have documents prepared for committee review late January. When the offer is made the agency will have 15 days to reply. The board agreed to hold a special call meeting in the event the offer is presented before the next board meeting.

7. Calendar and Announcements.

8. Adjournment.

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

_____________________________ _____________________________

Chair Secretary Attest