MINUTES OF A REGULAR MEETING
OF THE
LAWRENCE-DOUGLAS COUNTY HOUSING AUTHORITY
BOARD OF COMMISSIONERS
April 23, 2007 Clinton Place
5:45 p.m. 1st Floor Conference Room
1. Call of Roll.
The meeting was called to order at 5:45 p.m. by Chairman Smith. Upon call of roll the following Commissioners answered present:
Brenda O’Keefe
Sonya Johnson
Mark Gonzales
Willie Amison
Wes Smith
Also present were Section 8 and Clinton Place residents; James Dunn, Landlords of Lawrence; Lori Dalrymple, Suzanne Kerich, Doug Mole, Vickie Butler and Barbara Huppee, LDCHA staff members.
2. Approve Minutes of the March 26, 2007 Board of Commissioners Meeting.
Commissioner Gonzales moved to approve the March Board minutes as presented. Commissioner Johnson seconded the motion. The motion carried.
3. Receive Comments from Tenants and Public.
Mr. Dunn asked if Resident Services was a separate non-profit organization as it was referenced as a non-profit in applying for grants. Ms. Huppee explained that it is not, it is a department of the housing authority. The housing authority, under its umbrella, created a non-profit organization called Douglas County Housing, Incorporated. As Resident Services is a department of the housing authority, Douglas County Housing, Inc. can be used for affordable housing activities or any activities to support LDCHA residents of Douglas County. As an umbrella organization, the housing authority staff can serve in the capacity of Douglas County Housing, Inc. and make application.
Mr. Dunn then asked what is the property value on which the housing authority pays the $79,000 PILOT; and, will that change next year with the addition of Clinton Place? Ms. Huppee explained that the amount of PILOT paid was only for the public housing program and does not include Section 8. The approximate full real value of the taxes was listed as $141,332, what the agency tax liability would be if it were a taxable entity. She also stated that the Clinton Place property will pay a PILOT next year based on the same formula. Clinton Place is a separate entity; it stands on its own. It doesn’t subscribe to the housing authority regulations as it has a separate set of regulations. Mr. Dunn then inquired if the housing commission board administers Clinton Place just like the others. Ms. Huppee replied, yes, it is a member of the housing authority family, even though a separate entity, in the same way the Section 8 program is different from the housing authority program.
Robert Dodson, a Section 8 tenant, 1022 Rhode Island, Apt.1, discussed his present utility situation. The hot water heater for all three apartments is in his bathroom and he pays the gas for the hot water bill for the other two apartments as well as his own. Ms. Huppee stated that she would make sure that the LDCHA would do a special inspection of that situation and will also pull the records on the utilities and see how they are set up, in case utilities are required to be separately metered.
4. Financial Reports.
A. Receive Public Housing March 2007 Financial Reports.
The March reports bring the agency to 25% through the budget year with rental income over projections at 26%. Total income is running 2% over projections at 27%. Total operating receipts are 1% over projections at 26%. Total administrative expenses are under budget projections at 22%. Tenant services are running under at 21%. Total utility expenses are all running under at 19% through the budget year. Public Housing maintenance salaries appear way under budget projections. This is because staff’s time is being spent and charged to Clinton Place and appear under that report. Total maintenance and operations are running under at 18%. Total general expenses are running under budget projections at 22% and total routine expenses are under at 20%. A total of $90,903 has been paid year-to-date and $132,343 contract-to-date under contract work in progress for the Edgewood Homes Maintenance Shop Expansion. As of this reporting period, the agency shows $114,787 in income over expenses but when the year-to-date expenses related to the maintenance shop expansion are deducted, the agency would show $23,884 in income over expenses.
Chairman Smith moved to approve the Public Housing March financial reports as presented. Commissioner Gonzales seconded the motion. The motion carried.
B. Receive Section 8 2007 1st Quarter Financial Report.
The Section 8 program has earned $114,521.58 in earned administrative fees. This is an aggregate total of 1,917 units under lease on the first day of the month for January, February and March. Fees earned under the Family Self-Sufficiency position are $8,345 and $9,076 under the Homeownership Coordinator position. Interest earned on operating reserve investments to date is $34,051.80. Total operating receipts through March are $1656, 239.88. On the expense side, total administrative expense through March is $128,900.54. This appears skewed because of credit reversal entries for December accruals and three payroll runs in March. A total of $740,748.50 has been paid to date in Housing Assistance Payments. A total of $55,949.91 has been paid year-to-date and $121,193.40 project-to-date under contract work in progress for the Peterson Acres Affordable Housing project. A total of $74,992.84 of Section 8 MTW reserves has been transferred year-to-date to Clinton Place for capital improvements being made to the building. As of the first quarter reporting period for operations only, excluding the use of reserves or Peterson Acres and Clinton Place, the program shows $166,239.88 in total operating receipts and $128,900.54 in total operating expenses with operating reserves in the amount of $37,339.54.
Commissioner Johnson moved to approve the Section 8 financial report as presented. Commissioner Amison seconded the motion. The motion carried.
C. Receive Clinton Place March 2007 Financial Reports.
Ms. Huppee requested, with the Board’s permission, that item C be deferred to the Regular Agenda and discussed with the agenda item regarding Clinton Place.
5. CONSENT AGENDA
A. Receive Executive Director’s Report.
B. Resolution 965: Amend Methods of Administration to add References to Clinton Place and a new Section on Public Housing Inspections.
C. Resolution 966: Approve Submission of Grant Applications to HUD for Resident Services Programs.
There being no discussion regarding the Consent Agenda items, Commissioner Gonzales moved to approve the Consent Agenda as presented. Chairman Smith seconded the motion. The motion carried.
6. REGULAR AGENDA
A. Receive Update Report on Discussions with Ballard Center Concerning Establishing a Early Childhood Education Program at Edgewood Homes.
Last month, after receiving no proposals from licensed day care providers to open a facility at Edgewood Homes to replace the Brookcreek program, the board voted to defer action on returning the units to dwelling units until the June meeting. One of the reasons to defer action was the Ballard Center had a proposal pending to purchase a building in order to expand their services, including daycare, to the Lawrence east side. Diane Ensminger, Ballard Center Director, met with the executive director last week to again express interest in opening a day care center at the Edgewood site. The purchase of their building was not yet concluded but she was going to develop a preliminary budget based upon a program they would propose to run given the space available and what their costs are to see if they could make a center work. Success-by-Six, an agency that provides support for early childhood education, is trying to create an endowment that would help fund one of the existing childcare centers; however, they do not know if they would be able to achieve that result by the time June comes and the Board is faced with a decision. In addition, Kris Hermanson, The Arts Center Director of Education, is interested in trying to make something work through a collaboration of the Arts Center and Head Start. The executive director will meet with her this week to discuss this further.
Commissioner Gonzales stated that he had received a call from a Brookcreek Board Director, asking if the LDCHA would be interested in looking at something they had to offer. Commissioner Gonzales replied that the units were not yet converted and if they had something they wanted to present that would be fine.
Ms. Huppee did remind the board that there is a lot of repair work to be done in unit 159 and, if successful in getting a program to come in, there will be a delay, possibly to an August schedule.
B. Discuss Progress on Clinton Place Improvements and Transition to an Elderly Facility.
The board first discussed item 4C, Clinton Place March financial reports. Ms. Huppee explained that the agency income from Clinton Place is different from Public Housing or from Section 8. This is known as project-based Section 8. Tenants pay 30% of their adjusted gross income for rent and HUD will pay the difference between that and the contract rent. HUD sets the contract rent for this building on what it believes to be its market value at $485 a month. The March financials bring Clinton Place 25% through the budget year with rental income running under at 22% based on the annual figure of $206,760, a projection of HAP for 58 units minus projected vacancies through the budgeted year. Total operating receipts are running 3% under budget projections at 22%. Total administrative expenses are running 5% over at 30% due to start up costs and supplies. Utilities are all running under projections at 16%. Ms. Huppee stated that this budget has been separated into routine maintenance expenses and extra-ordinary maintenance expenses to show day-to-day maintenance expenses and expenses needed to carry out the capital improvements and extra-ordinary operations. As of this reporting period, Clinton Place shows a total of $65,285 in total income and $40,946 in routine operating expenditures. This is $24,339 in income over expenses. However, when including all year-to-date non-routine expenses totaling $100,714, which are all the capital items associated with major improvements and structural repairs, a total of $141,600 has been paid year-to-date in total operating expenditures for an operating deficit of $76,375. The $76,375 was pointed out in the Section 8 quarterly financial reports as the amount of MTW reserves that have been put in this building so far.
Commission O’Keefe made
a motion to receive the March 2007 Clinton Place financial reports as
presented. Commissioner Gonzales seconded the motion. The motion carried.
Last month and the month before the board approved a budget and
management plan for Clinton Place that included deferred maintenance expenses,
improvements, and reverting the building back to an elderly housing development.
Ms. Huppee explained that comprehensive improvements to Clinton Place were
proceeding with interior improvements being done first. LDCHA staff is working
through turnovers which include complete renovations. Originally there were 14
vacancies when the building was acquired, six are ready for occupancy and five
others will be completed by May 1. There have been two people move in; one on
the day the agency took ownership, who is an elderly person, and recently an
individual, who is also elderly, as security for the building. That is a
similar position as Babcock Place where residents live rent free in exchange
for them being on site to represent the agency when management is not present.
Presently there are 17 vacancies, six people have moved since the purchase of the building. Another 3 have given notice to vacate, 3 are under eviction, and 3 will transfer when housing assistance opens up. Of the 32 occupied units, there are 10 elderly individuals; the remaining 22 are occupied by non-elderly. This is a 39% occupancy rate for the non-elderly disabled population. This percentage is still too high to attract the elderly given the dramatic difference in life styles.
There was discussion of the response from the 109 offers sent to the elderly on the LDCHA waiting list. Five individuals came to visit and were intimidated by the residents and dissatisfied by the condition of the exterior and interior common area. Several other individuals said they drove up and left without coming in. This response indicates that the agency must complete a good percentage of interior and exterior physical improvements and further reduce the number of non-elderly before active tenant recruitment can begin. Ms. Huppee stated that by July the building should be in a position to begin to be shown and that the agency is still holding to the December date for full occupancy.
Stan Hernly, Clinton Place architect, presented the materials and colors that will be used for the exterior of the building. He also had renderings of what the finished building will look like and basically explained his approach. Roofing will be a good quality shingle. The aluminum windows will be replaced with better insulated glass. The siding will consist of three types, a vinyl lap siding on the second and third floors on the north, east and west elevation, prefinished fiber cement siding with stucco pattern on the first floor of all elevations, and exterior insulation and finish system on the second and third floors on the south elevation. A new front canopy will be installed and benches. On the west end of the building an exterior trash chute will be installed.
Sharla True, Section 8 resident, participated in the discussion of colors for the exterior of the building, offering her opinions.
In response to a question regarding the time frame of the exterior work, Mr. Hernly stated that specification packets should be ready the first week of May, followed by publishing an advertisement for bids and allowing a month for bidding. A couple of weeks should be allowed for contract negotiations. It would be a couple of weeks after than in July for the work to get started.
C. Discuss Board Attendance.
Chairman Smith asked that this item be placed on the agenda as in the last year board attendance has fallen off to a point that it has become a critical issue. Chairman Smith stated that it was time for a self reprimand and for a reassessment of personal situations. Meetings have had to be cancelled for lack of a quorum and meetings have often started late. This places the board at risk every month for not having a quorum. The possibility of changing the meeting to a later time and the meeting location were discussed. Sharla True, Section 8 tenant, discussed at length her opinion that residents are not being given enough notice of the meetings and her opinion of holding meetings in a larger facility. Chairman Smith stated that the location rotation has been designed to give residents an opportunity to attend a board meeting close to their residence that they otherwise may not be able to attend. Besides being posted on the LDCHA website, published in the paper, and posted at each LDCHA site, Ms. Huppee stated that she would look into the Board schedule being included in each resident’s annual recertification packet. Chairman Smith stated that on next month’s agenda perhaps the board could discuss possibly changing the time of the meetings.
D. Discuss Recommendations for Appointment to the Board to fill Mark Gonzales’ Expiring Term.
Mark Gonzales’ term expires June 30. The board has been asked to recommend individuals who would be willing to have their names go forward to the City for possible appointment. Two names have been recommended, David Clark, a vice president with Lawrence Bank, and Brenda McFadden, an accountant and principle with the McFadden Group. Chairman Smith recommended David Clark, stating that the skills and expertise the Board was fortunate to have with Mark would be adequately filled by David. Commissioner Johnson recommended Brenda McFadden’s name also go forward to the City Commission. Chairman Smith tabled this item until next month giving the Executive Director time to contact Mr. Clark and Ms. McFadden.
7. Calendar and Announcements.
8. Adjournment.
There being no further items of business, Chairman Smith moved to adjourn. Commissioner Amison seconded the motion. The meeting was adjourned at 7:40 p.m.
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Chairman Secretary Attest