MINUTES OF A REGULAR MEETING

OF THE

LAWRENCE-DOUGLAS COUNTY HOUSING AUTHORITY

BOARD OF COMMISSIONERS

 

February 26, 2007                                                                                           Babcock Place

7:00 p.m.                                                                                                          Meal Site

1.         Call of Roll.

              The meeting was called to order at 7:00 p.m. by Chair, Wes Smith.  Upon call of roll the following Commissioners answered present:

            Brenda O’Keefe

            Willie Amison

            Wes Smith

 

            Chairman Smith declared a quorum.

            Also present were Charlotte Knoche, Gayle Sigurdson, Doug Mole, Beverly Hyatt,  Vickie Butler and Barbara Huppee, LDCHA staff members. 

            Absent by prior arrangement, Commissioners Gonzales and Johnson. 

2.         Approve Minutes of the January 22,  2007 Board of Commissioners Meeting.

            Chairman Smith moved to approve the January Board 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.

4.         Financial Reports.  

            A.        January Accounting Summaries were distributed.

            B.         Receive Public Housing 2006 Year End Financial Reports.

            The year end financial report presents the total obligations, expenditures and non-cash adjustments to the general ledger for the entire year.  Also included is the capital depreciation expense for the agency’s buildings and equipment.  What does not appear on this report are expenditures related to the maintenance shop expansion project, recorded as works in progress.          This year end financial report for public housing shows $1,074,937 in rental income.  Other income including interest earned on investments, tenant work order damages, laundry/payphone income, bus donations and salary allocation reimbursements under the Capital Fund and Ross Grants is $195,957.  Operating subsidy was funded at 86.02% eligibility or $537,303.  Over all the year ended with $1,808,197 in total operating receipts.  That is $5,104 more than the projected amount of $1,803,093.

            On the expense side, the year ended with $517,338 in total administrative expenses.  Total tenant services are $91,256.  Total utilities are at $285,508, $29,522 less than projected.  Ordinary maintenance and operations are at $503,047, 105% over budget because of unknown expenses arising after the budget revision was prepared and approved.  Total general expenses are at $1,625,612 and total operating expenses end the year at $1,623,122 or $118,928 less than projected.  A total of $41,441.18 has been paid year-to-date under contract work in progress for the Edgewood Homes Maintenance Shop Expansion project.

            Overall the agency ended the year with $147,782 in income over expenses after deducting the general ledger adjustments as well as expenses related to the Maintenance Shop expansion.  This is $86,739 more than the projected amount of $61,043.  Expenses related to capital depreciation are $461,129.

            Chairman Smith moved to approve the Public Housing 2006 Year End Financial Reports.  Commissioner Amison seconded the motion.  The motion carried.

            C.        Receive Section 8 2006 Year End Financial Reports. 

            The Section 8 year end financial report is similar to the public housing report in that it contains all accruals, reconciliations, capital depreciation expense and reimbursements of administrative expenses from the State and City HOME programs.  The year end report shows the program has earned a total of $444,047 in earned administrative fees.  This is an aggregate total of 7,433 units under lease on the first day of the month for January through December. Fees earned under the FSS and Homeownership Coordinator positions were $68,941.  Interest earned on operating investments year-to-date was $157,030.  A total of $4,036 was collected under fraud recovery.  The program earned a total of $674,054 in total operating receipts.

            Expenses under the Section 8 program are for those related directly to administrative expenses for operational costs to run the program.  A total of $589,901 was spent in administrative expenses.

            A total of $2,794,905 was paid out in Housing Assistance Payments (HAP) for the year. A total of $65,343 has been paid through 12/31/06 for the Peterson Acres Affordable Housing Project that is being paid for from MTW reserves.  Overall the agency ends the year with $100,899 in income over expenses after deducting the general ledger adjustments.

            Commission O’Keefe moved to approve the Section 8 Year End Financial Reports as presented.  Commissioner Amison seconded the motion.  The motion carried.

            D.        Receive Combined Cash & Investment Report as of 12/31/2006.

            The Board was presented with a report of the agency’s total cash and investments as of 12/31/06.  The report showed a total of $3,202,164 under the Section 8 MTW program.  A total of $1,350,000 was spent from this account in December to purchase Clinton Place. The agency’s plan for the use of Section 8 reserves in 2007 includes spending for the Peterson Acres Affordable Housing Project as well as Clinton Place repairs and improvements. 

            The Public Housing reserves at the end of 2006 was $1,988,349.  This fund is being used to pay for the Maintenance Shop expansion project.  

            The HOME Program reserve balance at the end of 2006 was $167,281.  Total agency cash and investments at the end of 2006 was $5,357,794. 

            Commissioner Amison moved to approve the 2006 Combined Cash and Investment Report as presented.  Commissioner O’Keefe seconded the motion.  The motion carried. 

5.         CONSENT AGENDA

            A.        Receive Executive Director’s Report.

            B.         Resolution 957:  Approve Extending LDCHA Public Housing Eligibility, Admissions and Occupancy Policies to Cover Clinton Place where Applicable and Instituting HUD Handbook 4350.3 Guidances as Policy where Public Housing  Policies are not Permitted.

            C.        Resolution 958:  Revise Schedule of Maintenance Charges.

            Commissioner Amison moved to approve the Consent Agenda as corrected.  Chairman Smith seconded the motion.  The motion carried.      

6.         REGULAR AGENDA

            A.        Resolution 959:  Approve 2006 Public Housing Assessment Submission (PHAS).

            Ms. Huppee presented the Management Assessment (MASS) component of the Public Housing Assessment Program (PHAS). The other three components are the Physical Inspection System (PASS), Resident Satisfaction (RASS), and Financial Assessment (FASS).  The PASS and RASS are not conducted by the LDCHA.  The FASS is prepared by the agency’s fee accountant and verified by the agency’s independent auditor.  The MASS, FASS and PASS are each worth 30 points.  The RASS is worth 10 points.  The scores for these four components are totaled and a final score given each PHA. For 2005 the LDCHA received a score of 97.

            The MASS assesses housing authorities against six elements.  These are the same criteria we have been scored against since 1992.  These include Turnaround Time, Capital Fund, Work Orders, Security and Economic Self Sufficiency.  Based upon the 2006 performance data provided, the LDCHA should get a perfect score of 30 on the management component.

            During discussion, Ms. Huppee stated that this may be the last year that the agency submits these assessments.  HUD intends to change the contract that MTW agencies have and proposes to establish a different assessment system that evaluates agencies based on MTW performance. 

            Commissioner O’Keefe moved to approve the 2006 PHAS submission to HUD.  Commissioner Amison seconded the motion.  The motion carried.

            B.        Resolution 960:  Approve 2006 Section 8 Management Assessment Submission (SEMAP).

            The Board was presented with the 2006 Section 8 Management Assessment Submission (SEMAP) and program data summary.  Since 1998 housing authorities operating Section 8 tenant based assistance programs must submit a certification form on fourteen performance indicators within 60 days after the end of the fiscal year.  Because of the agency’s MTW program, the LDCHA is exempted from SEMAP scoring on four of the fourteen indicators and an additional three data indicators not submitted due to verification limitations set by HUD.  The applicable indicators are:  Selection from the Waiting List, Reasonable Rent, Determination of Adjusted Income, Utility Allowance Schedule, HQS Quality Control Inspections, HQS Enforcement, Expanding Housing Opportunities, FMR Limit and Payment Standards, Annual Reexaminations, Correct Tenant Rent Calculations, Pre-contract HQS Inspections, and Lease-up.

            This year’s submission deadline is February 28th.  The LDCHA program data indicates the agency should receive a 100% SEMAP Score. HUD directives state that MTW agencies must submit SEMAP certifications but will not be rated.

            Commissioner O’Keefe moved to approve the 2006 SEMAP submission to HUD. Chairman Smith seconded the motion.  The motion carried.

            C.        Receive Report on Child Care Pre-submission Conference Session and Outcomes.

            The Board had asked the Executive Director to issue a Request for Proposals for a Childcare Center as a replacement for the Brookcreek Learning Center.  The RFP was issued in January with the submission date of March 12, 2007.  A pre-submission conference was held February 15 to discuss the RFP, answer any questions and give a tour of the facility.  Two child care centers attended the meeting, Head Start and Ballard Center. A private individual also attended; however she was not associated with a licensed center.  One question was raised concerning the grading of the playground at unit 159.  Brookcreek was recently cited for poor drainage on the site. The LDCHA was not informed.  The question raised was whether the LDCHA would repair the site at its expense.  A tour of units 159 and 160 showed that there was cleaning and painting that needed to be done at both units. In addition the kitchen in unit 159 was in need of new cabinets, countertops and may need a new stove and refrigerator.  The repairs not including staff labor are estimated at $5,000.  The re-grading would be contracted out at an additional cost. These costs would fall to the agency if the units were to be re-rented. 

            If no proposal is received the agency most likely would have to bear the expense of converting the facility back to apartments since Brookcreek does not appear to have the funds to do this.  The expense of converting the facility back to residential units will be more costly than doing the upgrades needed to accommodate a new daycare program. 

            The Board discussed upgrading the facility including the grading problems with the playground at unit 159.  After discussion, Chairman Smith moved to approve the costs associated with upgrading the facility including the cost to correct the playground grading problems if the LDCHA received an acceptable daycare client.  Commissioner Amison seconded the motion.  The motion carried.

            D.        Resolution 961:  Approve Operating Budget and Management Plan for Clinton Place.

            Ms. Huppee presented the 2007 Clinton Place preliminary operating budget to the Board.  The budget projects total revenues of $292,730 broken down as rental income, $83,830; other income, $2,140; and operating subsidy, $206,760.   Total operating expenses are protected at $895,160 broken down as administrative expense, $53,490; utilities, $36,070; ordinary maintenance and operations; $105,230; general expense, $20,530; and total other expenses at $679,840. 

            The projected cost of repairs and improvements to Clinton Place is $671,340 to include interior/exterior improvements; restoration of initial and projected unit turnovers; interior/exterior doors, cameras, locks/locksets, panic doors and emergency/exit lights.  The preliminary operating shows a deficit of $602,430, which includes all the major improvements and structural repairs needed.  When looking only at total routine expenses, Clinton Place shows operating income over expenses in the amount of $77,410.

            Ms. Huppee also presented the Commissioners with a proposed Clinton Place Management Plan.  The plan objectives consist of integrating Clinton Place and its residents into the LDCHA housing programs by applying the same policies and standards in applications, eligibility, admissions, occupancy and maintenance where applicable;  repairing and renovating the facility including exterior, common areas and turnover units to make the facility habitable and desirable; returning the facility to a senior/near senior facility through attrition, terminations and transfers to other LDCHA programs when openings occur; filling vacancies by utilizing the LDCHA waiting list containing seniors, then advertising through local service programs and media, and reaching full occupancy by December 31, 2007.

            During discussion, Ms. Huppee stated that an official budget on HUD forms is due in August.  Clinton Place’s contract with HUD is from September to August.

            Chairman Smith moved to approve Resolution 961.  Commissioner Amison seconded the motion.  The motion carried.

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 8:15 a.m.

           

 

             

________________________________                                _____________________________

Chairman                                                                                  Secretary                                  Attest