LHA Commissioners Board Meeting – October 2023

Video Description:
LHA Commissioners Board Meeting – October 2023

Read along below:

Speaker 1 0:01
Speaking of which, it’s seven o’clock. Let’s get this game started. So, yes, Chair Peck is not with us tonight. So, Mr. Rodriguez vice chair will be chairing this meeting tonight. Let’s move into call to order Roll Call. Commissioner Susie elderberry. Here Commissioner Marsha Martin. Here. Commissioner Sean Mccourty. President. Vice Chair and Rodriguez Here. Commissioner Tim waters here. Commissioner Chiquita? Yeah, from here. Very good. Moving in to agenda revisions and submission of documents. Do we have any? Yes.

Speaker 2 0:46
Associated with resolution 2023 Dash 38. The close the resolution for village on Main. There was supposed to be the CDBG IGA attached to that resolution item. Council considered and approve this. And the mayor has signed this on the city side back on September 26. So that is referenced in the resolution. But the document was not attached in the packets. And but it is not brand new, since this board has seen it in another capacity.

Speaker 1 1:24
Very good. Do I see any other revisions from the commissioners? Seeing none, we’ll move on to review and approval of the August 15 2023 minutes I

Unknown Speaker 1:34
move that we approve them as presented.

Speaker 1 1:37
Second, all right. Commissioner McCoy has moved approval and has been seconded by Commissioner waters. All those in favor say aye. All right, all those opposed, seeing none. The motion passes six to zero with chair Peck acid. At this time, we’ll move on to public invited to be here. And I believe we do have at least one. Yes. You can stay on there if you’d like or

Unknown Speaker 2:09
I can just say. You

Speaker 1 2:11
can stay seated if you’d like. And you’ll get three minutes if you’ll do for us.

Speaker 3 2:21
I’m Victoria O’Grady and I live at Spring Creek apartments under li J. And I want to sort of start the conversation about mental health, some struggles that I’m having with communication, and some of the rules, things like that. I’ve been there since it opened. And for me, it’s been really hard. But we’ve had a lot of managers a lot of rule changing. And I can read my letter but Molly and Lisa knows what I’m going to say. So shall just read the letter.

Unknown Speaker 3:00
Whatever you’d like to say

Unknown Speaker 3:02
something like this. I’m all new to this.

Speaker 3 3:24
Okay, I’m here to explain what I’ve been going through living at Spring Creek and asking for a kinder way for me and other residents to be treated better. My mental health is in steady decline since I qualified to live here because I was affected by the 2013 flood and was homeless. I’m 69 How was the search for registered nurse I moved out here from Tennessee to try to keep working when I was after I got diagnosed with MS. And my disability is invisible. I know by looking at me he would never know things I couldn’t do some days I can’t get off the sofa. But then other times I can be out on the grounds pulling weeds, things like that. So I had to try to keep work and so I moved out to Colorado as a travel nurse and trying to take care of my 85 year old mom who had dementia. And that’s another story all about so but I’m a domestic abuse survivor and I struggle with PTSD, which is diagnosed at the time when I moved in. I also have severe chronic pain issues from work injuries and several car wrecks. My file going through the long process of applying for disability was difficult and humbling you have to support yourself for over a year. We can’t work. And you go through a lot of interviews about my health and explain every detail of my life. I lost my beautiful home, my car, my friends that didn’t understand what I was going through. after my mom passed, I have no family left and I couldn’t have kids. So I just accepted it, that couldn’t have kids. I am just the process of going through a lot of stuff. But I also lost control of what was happening in the live living with my mom was very challenging and sad to see your mind decline every day was a new strangest shoe, she passed after a heart attack, and losing my house, losing my home and then losing my mom. I was just lost. I had no help. Went through everything by myself. It was a rude awakening and lost my dignity and life changing to say the least. I remember going through my first big bank, I just left crying. I couldn’t accept where I was and how I got there. Eventually, you have to face the music and wonder where you would end up without income or family. Then you have to start telling your story to help you get to relive every second, every failure, what people would say to you, people start talking to me like I was stupid, condescending manners, and talk to me like I was a child. So when I was notified that I was accepted at Spring Creek, I was very excited but knew nothing about lawn lawn or I was just moving from Fort Collins I don’t know anything about but I’m very grateful and told management. I sent them a letter when I first moved in and send it to a person thanking her for such a beautiful building. And I’m not being bright. I’m not ungrateful. Like I say you never guess by looking at me the trouble I have chronic pain through injuries at work and for car wrecks that weren’t my fault. And MS is the worst because you look okay, and you can’t do much sometimes have insomnia, depression, foggy brain memory issues, severity, just exhaustion. And somedays you can get off the sofa or cook for myself. The first manager was kind and understanding but there were serious issues at the office of LH I was on the news almost every day and you could feel it from the manager just chaos and uncertainty. And when this treatment started, even had to see a great maintenance man get fired in front of everybody. So the district disrespect started very blatantly. And it was confusing. I didn’t understand why things were directed at myself and the other residents, but this is about me. I’ve been threatened screen that bully disrespected time after time. I didn’t know who I was. I don’t know what have become irritable. I’m not friendly. I don’t laugh anymore. And it’s just been hard. My PTSD was the worst because moving in, I was just diagnosed with it. So I didn’t have a handle on it. And with Ms. It depends on where your lesions are in your brain I want to fix Yeah, so that’s my motions by not crying at the drop of a hat. I’m getting confused and lost count of how many managers we’ve had. And with each new managers, we’ve got new new rules and more confusion. But I’m curious why you think you have the right to treat me like a third world country. I definitely don’t want to be disabled and lose everything. I work so hard. I don’t want Ms. And that comes with my other health issues. There was a huge learning curve on how to accept and learn how to pace myself and accept my limits. make myself do things when I have when I have to and I’ve taken care of the grounds for the last four years and I’ve been there seven I enjoy it because I miss my yard. But I don’t understand why it continues to look so bad and nothing’s done about it. Because we have to see it every day y’all love ever see it so but I love doing that. I know it sounds crazy but I do like working out in the yard. We live in a very nice neighborhood that accepted that they would have this type of building among their beautiful homes. Last time I counted 40 shrubs are dead or missing. I pulled forfeit for the waves picked up trash engrosses in Jordan mulch, I can do a couple of hours in the evening in the shade, I can do it. That was the day. I just like being outside and then back. One area on the west side is just landscape and fabric. And it’s been like that for four years. And I don’t understand why that can’t be fixed.

Speaker 1 10:21
Or well over time, okay, thank you so much for your testimony. I know you’ve been hurt. I know staff has hurt you. And I know that we as the patient have.

Speaker 3 10:30
That’s fine. I just don’t really want to get better. And I know I’ve got my money, mental health issues, but I want it to get better. And I don’t know where I’m going.

Speaker 1 10:45
Thank you so much. You’ve been heard. And I know like I said staff has captured this. And hopefully you get some responses to what you’ve said. Leave now or if you want, you can stay you don’t have to leave. You’re welcome to stay. Anybody else from the public wish to speak? Okay, seeing none. I will close public invited speakers and we’ll move on to Item five of the agenda pulled the new business five A CDBG agreement amendments. Item five a one is resolution 2023 32 Except IGA first amendment for the Aspen Meadows neighborhood payment playground replacement project.

Speaker 4 11:32
Council has any questions? Or if the commissioners have any questions, we’d be happy to answer. I think most of the information was provided in the background material.

Unknown Speaker 11:42
And if any questions

Unknown Speaker 11:45
I’ll move acceptance. Okay. Second,

Speaker 1 11:47
sir. We have a motion to approve resolution 2023 32 by Commissioner Martin seconded by Commissioner McCoy. On any discussion. Seeing none, all those in favor? Hi. All those opposed? Okay, resolution 2023 32. Passes six to zero. The commissioner Peck absence? Resolution point 2333 Except the IGA first amendment for the overcrossing parking and accessibility project.

Unknown Speaker 12:16
Same situation.

Unknown Speaker 12:17
Okay. Any questions? Seeing none, can I have a motion?

Speaker 5 12:24
I move resolution. ology. 2023 dash two.

Speaker 1 12:30
Second. Okay. We have a motion from Commissioner McCoy to approve resolution 2023 33. Seconded by Commissioner Martin. Any discussion? Seeing none, all those in favor say aye. Aye. Hi. All those opposed? All right, resolution 2023 33. Passes six to zero. With Commissioner Peck absent resolution 2023 34 Accepting IGA first amendment for the Lhh security cameras project.

Unknown Speaker 13:00
Same as the last

Unknown Speaker 13:02

Speaker 6 13:04
See actually have one okay. Sorry. For the the I guess a year or so ago, we got a lot of of grumpiness from residents about having cameras in the public area. And I am wondering whether by messaging and things like that, whether that has has settled down when people understand that this is a safety measure and not to make sure

Speaker 7 13:37
that Harold and Sara already have done a really great job at coffee and conversations community, communicating to the residents that need and why

Unknown Speaker 13:45
for safety concerns.

Speaker 4 13:46
It’s actually moved in the opposite direction where they want us to move faster. And it’s technical issues that technical issues related to federal list of what can’t what chips you can use and things like that. And so they actually want us to be faster.

Speaker 6 14:03
That’s good. All right. Well, not only the acceptance of this one second.

Speaker 1 14:09
All right, resolution 2023 34. has been moved by Commissioner Martin and seconded by Commissioner McCoy. Any discussion? Seeing none, all those in favor of 2334. Say I was opposed. All right. Resolution 2023 34. Passes six to zero with Commissioner Peck Epson. Moving on to the five d CDBG. CD program. Item one, resolution 2023 35 Except CDBG. CV first amendment for LH a accessibility project.

Speaker 4 14:50
So similar the background is pretty explicit and what we’re going to what we want to do on this one, this is connected to the voluntary compliance agreement that the House I’ve already signed with Todd prior to the full transition, this is just continuing that work. For both of these items, what I would add in this case is that when we look at it from a budgeting perspective, there wasn’t enough to deal with all of the properties next Tuesday, based, not as the housing authority, but as the city council, you all have given us the ability to move ARPA funding, as we see necessary. This project, this project is federalized because it has CDBG funds in it. And as we’re moving to the end of the Arvo funding cycle, finding a federalized program is, is becoming pretty important to us. And so I’m going to give a presentation in terms of operadores interest dollars in terms of where we would like to shift that to the council to get direction. So if in your capacity as a city council, you approve that direction, then we’ll actually be able to deal with all of the ADA adjustments that we need to make on the properties and finally, close that out as part of the voluntary compliance

Unknown Speaker 16:09
team and do that another night,

Speaker 4 16:11
next Tuesday, because it’s really a Council action. It’s a council direction, based on recommendation with an arc and so if if the council chooses to do that, then we’ll add the final two properties on to the work

Speaker 2 16:25
that we need to do. This amendment extends time because it was very difficult to get concrete contractors to bid. And once we got it, the prices were over our estimates, of course. And so this captures the piece that we can still fit under this TV grant budget, and then that would be the

Speaker 1 16:46
move. 2023. All right. Any further questions before we? Okay. It has been moved by Commissioner McCoy and seconded by Commissioner Martin, that we move resolution 2023 35. Discussion? No. All those in favor, aye. Aye. All those opposed? All right, resolution 2023 35, passes six to zero, with Commissioner Peck apps. Moving on to five B to resolution 2023 36. approved budget amendment and execution of contract for concrete work for lhg accessibility project.

Speaker 2 17:28
This is the same project. But the concrete contract is over $100,000, which exceeds our ability to have the executive director sign. And so that’s something to have for approval, and then the budget amendment is just regarding that, funding it with the general fund, and then we’ll get reimbursed with the grant funds. But because of the ARPA money being a pending decision from Council, that we just have to fund it for a period of time. So that’s how come that’s

Unknown Speaker 17:56
very good. Any other Any questions from the commission?

Speaker 6 17:58
So just to clarify, so the it’s not that we have to fund like with some grants, you have to fund the project first and then get paid back? That’s not this case. It’s just you’re waiting for us to

Speaker 4 18:11
know we have the money. It’s just from the allocation. Backup. If you remember, we allocated money to affordable housing. We allocated money to Whole neighborhoods in different areas. As we continue moving through projects, what happens is somebody doesn’t spend as much as they thought they were going to need and so we’ve we made a couple of adjustments thus far. Okay, the money sitting literally don’t count. We just need the direction.

Speaker 6 18:44
20 Wha 2023 Dash 36 Second.

Speaker 1 18:48
All right, any discussion on the motion? Seeing none. Commissioner dog a fairing moved to resolution 2023 36. Commissioner Martin seconded. All those in favor? Aye. All those opposed? All right, resolution 2023 36. Passes six to zero with Commissioner Peck absence. Moving on to five see one. This is village on Main recent occasion rehabilitation project. Item one is construction scope and price summary discussion with only.

Speaker 2 19:23
So commissioners, the village our main project is getting into the final stages in preparation for closing which is anticipated to happen in early December. It’s getting getting to that point or it’s getting very real and very busy. Not that it wasn’t already. So I wanted to kind of give you an update on where we are because the construction pricing has come in. And so I wanted to give you a summary of how that process has gone and what it’s the project is looking like. So our we’ve been working for a year and a half on Coming up with our wish list. Actually, I should say our needs less than our wish list and making sure that we plan appropriate three appropriately throughout this design process to try and maximize and get as much as we can fit into the project budget. So it includes the project, certainly included in our bases, flooring throughout the building, new cabinets, in kitchen appliances, and sinks and plumbing, etc. In all of the units, kitchens and bathrooms, including the common area kitchens and baths. So reorganization to add a new laundry room because there wasn’t enough laundry space or the new public restroom, upgrades to the atrium area and the lobby just to reconfigure and make it flow. And then New Roofing upgrades to the exterior. And those were our key key things and critical systems, water heaters and baseboard and the like the wishlist items that we had, were removal of the popcorn ceiling throughout, this is something that residents evolved pretty unanimously unanimously wanted. And then being able to stay in the brick on the outside to make it look like match historic downtown landmark and not be 1990 pink but in a more of a focused org building. And solar panels on the roof for photovoltaic right now we’ve got those ones that are tied to the water heating systems, it’s no different technologically. And so our pricing came in pretty much right on target. And we’re expecting to be able to get all of those wishlist items, and then still have contingency for emergencies or items that we need to add or even items that we would like to add during construction. So the total cost estimate is $7.3 million. It will be 7.6. By the time you add on our final cost and contingency. And then what that includes that’s 7.6 million total, it was right in line with our budget. And so we’re all very happy to not have any severe sticker shock, and be able to really accomplish everything that we wanted to do. At least the big items that we wanted to do and really meet the residents needs as much as we can as well. So we are entering the process of preparing for closing, construction is still targeted to occur start in January, it could be up to 10 months, we’re finalizing the schedule right now, we have a contract with a hotel executed, we’re getting a moving contract executed for those movements, move outs. We are presenting to the residents November 17 to go over the detailed relocation plan, and everything is coming together. So that is I just wanted to give you a heads up on that.

Speaker 6 23:08
Yes. Quick question. You said that this was accomplished with out the expectance sticker shock or at least without sticker shock? Did you get the sense that commodity and supply chain situation is normalizing at this point.

Unknown Speaker 23:26
More like we planned for it to be

Speaker 4 23:30
I think what’s happening is our project estimates because we’re starting them later in the process, we’re actually better able to predict it because we’re not seeing the out of control inflation that we were in the first two years in terms of supply chain issues. Katie who’s on the call, virtually we had a meeting with the investors, where we took them through. We know that there’s going to be work that’s probably going to come in a little bit later. And it’s specifically related to the electrical panels. And I think it’s I think again, switchgear related to the photo voltaic system. And we know that the lead time is beyond the 10 months. And so that piece of the project we’re going to hold, hopefully we keep our fingers crossed, and we get in early, but we’re going to convert so the right now village place, they all have individual meters. We’re going to take the individual meters out we’re going to convert to the master meter, which works better when you have the solar system in place and then get that going. And then as part of that we are going to talk to you’re going to work with one more power in terms of what third considering doing batteries and some other things.

Speaker 2 24:52
So right now we have a meter read activity 72 meter reads every month and then we get Available 72 bills every month and only che pays the bills. So that really doesn’t. That’s a remnant of that beginning, not an LH property originally. And so LH J currently pays $14,000 a year just in b2b fees, because we have 72, even though we pay them into one check for 72 bills. So that was really a good operational decision. I do plan to take you through a solar kind of a solar story on this project and what we’re trying to do for Hoeber, because it turns out to be very interesting and complex, and not simple for every affordable housing project. So I do once we have a little bit more information on the oversight, I want to present that to you all, just to see how this works at a future date.

Speaker 1 25:52
Any further questions from the Commission? Okay, as that was discussion only, we’ll move on to five c to resolution 2023 37. Forgiveness of 2006 loans to village plays associates LLP.

Speaker 2 26:11
So, little bit of background, counsel already considered the city’s affordable housing fund loan to the FHA approved forgiveness of that loan and back in last month, what typically happens is the city and other parties grant funds to LH J. And then lmha. For the for this project, in this case, the 2006 recertification rehab a village place, and then village lmha, needs to then loan that into the light tech financing because it has to come in unto a loan for tax reasons. And so when the city considered the affordable housing fund loan forgiveness in September, that was from the city to the FHA, the FHA now needs to consider forgiveness of that loan of a village place associates the light tech entity that owns the property. In addition, in this case, there are three other ones that did come in as grants in which never anticipated to be paid back, but we still have to loan them into the project to make sure it matches up and tax deal. So you have four loans being considered tonight, the affordable housing fund loan passed through from lmha, down to village place Associates is the the least the more complicated one, the other three are pretty simple, because because the funds were granted to La che Doh, the Federal Home Loan Bank, and the CDBG grant from the city, those all came in as grants that those entities do not expect to pay back. But really, it’s we still need to take action or throughout the FHA forgiveness loans from the village place associates. So I think it’d be easiest to break this into two sections. One is the affordable housing fund loan. That is that was a true loan to the FHA and there was a pay back expectation, which now has been forgiven by the city, but there is some consideration to go through. And then the second kind of chunk is the three that we’re claiming grant as grants. And that’s really forgive it or not. But the first one, we have a couple of options to go from positive questions first.

Unknown Speaker 28:30
So this can all be taken on the same resolution.

Speaker 2 28:33
It can’t. It just has to we want to amend the resolution, based on your decision tonight that we will put into the written resolution for signature tomorrow, indicating the amount forgiven or are you

Speaker 6 28:49
asking for an amendment or is the amendment? Correct?

Speaker 8 28:56
So we’re asking for an amendment, there’s a point in space for what we want to do with the Affordable Housing Fund. With the second page, you may have some explanation. Yes, on

Speaker 2 29:11
the other that staff recommendation for the other three is to forgive it since it would hurt the project budget, and there’s no expectation of payback from the original funders. So that is a simple yes or no. And that is how the resolution is written according to staff recommendation right now. So it might make sense to split those up and maybe cover that one first and then go to the more complex ones.

Unknown Speaker 29:37
I think commissioners want to weigh in.

Speaker 9 29:39
I’m just curious. The we have the blank page numbers. It’s page two. The resolution Oh, so I see now therefore be it resolved or forgiveness of the remaining balances in CDBG. Doh in Federal Home Loan Bank has one and then To drop a number and that would be one motion on this amended resolution, and the number we need to drop in is, isn’t the 600,000 or

Speaker 2 30:11
so it was the original loan was 600,000. To do Ha, this was this piece was discussed at the City Council aside the LA chain of pay 202,000. On that, on behalf of village place associates, those place actually didn’t pay that much to la ha. So they the LA chain of general fund friends with that for a portion of it. So the recommendations that I put in here are full forgiveness, full payback, or two options for a partial forgiveness. This was written Thursday and Friday. Everything was the Preparing for closing is moving in such real time that just yesterday, we confirmed that the investors are requesting certain insurance policies that we didn’t include in the budget originally. And of course, insurance is getting wrong skyrocketing. And so my recommendation was going to be to pay back the lhsaa abortion because the project could have afforded the project budgeted for $350,000 in loan repayments to whatever was out there, which this is the best fit. And at first, because our budget numbers were coming in great, we really didn’t the project wouldn’t have suffered from giving LHD some of that money back in helping the general fund. Now, however, we’ve got these unknowns of the insurance that are happening within the last 24 hours. And so

Speaker 9 31:40
the project funds, the village place project, yes.

Speaker 2 31:45
So the recommendation that staff would make tonight would be to allow up to full forgiveness. Assuming the project needs the money to cover operating expenses, based on insurance and things of that nature. So it’d be the forgiveness amount would be a range between 512,288 and 49 cents, and the full amount of 862 to 849. So that what that means is assuming the project budget can absorb the insurance costs that we just found out about, then they would pay back to everything possible outside of that. If that is hitting the project in a negative way and affecting their debt capacity, then it would require more forgiveness or full forgiveness.

Speaker 4 32:44
Yeah, I think the way I would phrase it is, if counsel one or two permission, one or two use good, authorized forgiveness up to $600,000. To cover the cost associated with the new insurance requirements. And if the funding is not needed, then it goes back to the remaining two, or the 200 would go back to the housing.

Unknown Speaker 33:21
Square with the numbers we just heard from

Speaker 2 33:23
I mean, I was gonna say it’s not the 600 it would be that full 800 or so forth up to that full accrued principal plus interest number of 800. So requiring either zero payback or a portion payback,

Unknown Speaker 33:40
or the 588.

Speaker 2 33:42
That’s because the number now 512 288. That’s because the project budgeted for $350,000 of one payoffs. So that’s the kind of the

Unknown Speaker 33:54
take that plus the floor

Unknown Speaker 33:55
and the ceiling.

Speaker 6 33:58
So does the project have contingency amount in its budget? Or is this option of paying back a range the only contingency in

Speaker 2 34:09
there is construction contingency This is operating expenses can be long term, and that kind of that is set in the model. There’s of course inflationary increases anticipated over time, but really that contingency is more for construction,

Speaker 9 34:23
well into number was 512 512

Unknown Speaker 34:27
to 849.

Speaker 1 34:30
Before that’s the 350 minus the whereas AC for 860 to 284.

Speaker 2 34:41
To speak to more of your question around contingency like Molly said there’s additional contingency. But I think this allows us to make sure that our projected operating budget is on par and can support this, this deal for the next can support the debt for the next you know 20 years. So I think This gives us a little bit of flexibility to make sure that the amount of debt that we’re taking on is appropriate for the insurance levels that we’re going to need, which are, like we said, are kind of working through the nuances. So if the deal can can afford to pay back, obviously, you know, Lhh is the managing general partner in this deal. So it’s kind of called lhhs Money, regardless. So it’s just kind of how we move it around. But I think we have to deal having that flexibility to make sure that the debt we take on is can be supported over time is kind of where that staff recommendations.

Speaker 9 35:39
So the motion would be the resolution 2030 720-323-3072, that would be on the version, that we have the blank to move approval of this resolution, with a range of forgiveness from $512,020.49 to $862,280 $88.49.

Speaker 2 36:11
The second number just to confirm 860 to 280? According Yes.

Speaker 9 36:18
I’ll move resolution 2337. With those numbers, the range of 504,000 to 8049 202, six to 862,000 2014.

Speaker 1 36:33
Okay, any discussion? All right. Resolution 2023 37 has been moved for approval by Commissioner waters with the amendment that the forgiveness of 512 Tune in at point four, nine to a range of 162 to 8.49 be added to page two of the resolution. Any discussion?

Speaker 6 37:06
You know, I’m looking at the bottom this backside where it does have our options to consider us thoughts on or to remember. So that doesn’t capture? What would it capture two or three?

Speaker 2 37:22
It’s a combination of one to one range between one and two.

Speaker 6 37:27
Okay. And that’s and that would be most advantageous for the project. Okay,

Unknown Speaker 37:39
could you please bring a more complicated

Speaker 2 37:47
the speed at which these deals go and granted that we see the score once a month, we’re just forcing them to be a little nibble sometimes.

Speaker 4 37:57
And again, the issue is they placed additional insurance requirements, we don’t have the cost. This gives us some flexibility. If we don’t need the flexibility, then the money then can shift.

Speaker 6 38:12
And so this was still been so was this written prior to your update? Okay, so that’s where I was, I felt like there was a little bit of a disconnect. And then that does allow us that flexibility. Okay,

Speaker 2 38:26
okay. Good scenario. The deal can pay Lhh general fund some amounts and still be hold on the deal and cover all the costs. Okay, worst case scenario. We don’t pay LH a general fund back anything but the deal was still solid.

Speaker 8 38:44
What was that? What 8299?

Unknown Speaker 38:55
told me it’s changing, like have

Speaker 1 39:00
any further questions or discussion? Okay. Resolution 2023 37. has been moved by Commissioner waters in seconded seconded by Commissioner Martin. In has been amended. All those in favor? Aye. All those opposed? All right, resolution 2023 37. Passes six to zero with Commissioner Peck absent. Moving on to Item five ski three, resolution 2023 38. Villa John main closing resolution.

Speaker 2 39:35
So this is our final closing resolution and provides authorization for the FHA to enter into all the transactions necessary to close on the financing and the tax credit so the project that includes the sale of the property to the new entity setting the partnership structure, the other financing tax credit loaning of gap funding received into the partnership, acceptance of the CDBG funds and relevant operation agreements.

Unknown Speaker 40:04
Very good. Any questions? Seeing no questions from the commissioner. I’ll entertain a motion.

Speaker 5 40:11
I move resolution 2023 Dash Libby. Second.

Speaker 1 40:17
All right resolution 2023 Dash 38 has been moved by Mr. McCoy, seconded by Commissioner waters. Any discussion? Seeing none, all those in favor, aye. All those opposed? Resolution 2023 Dash 38 passes six to zero with Commissioner Peck absence. Moving on to Item five c for resolution 2023 39 Bond resolution.

Speaker 2 40:45
So the LFA was awarded private activity bonds for the city in 2022 and 2023. And so this just authorizes the issuance and sale of those bonds to finance the project.

Unknown Speaker 40:56
Very good. Any questions?

Speaker 1 41:00
Seeing none, I’ll entertain a resolution. There are a motion.

Unknown Speaker 41:04
I move resolution 23.

Speaker 1 41:09
Okay, Commissioner Martin has moved to resolution 2339. Seconded by Commissioner Yarborough. Any discussion? Seeing none, all those in favor of the motion say aye. All those opposed? All right, resolution 2023 Dash 39 passes six to zero with Commissioner Peck after moving on to five d 120 24 lhg budget presentation.

Speaker 2 41:41
I’m going to have one comment time before I get started. I just want to note that this was an evolution, especially being not at the last minute on this project is a very big milestone. We’ve been working on this project already for two years. And 22 years. Katie has been amazing in getting this forward for us and we couldn’t have done it without her and she will miss closing. She’ll be having a baby here in the next couple of weeks. So just Thanks, Katie for all your help. graduations. Okay. With that, Katie? Are

Unknown Speaker 42:21
you staying on for the budget? Would you like me to share it? You do not need to? Are you? Are you? Are you logging out? I

Speaker 2 42:36
remember getting really tired. She used the machine right now just wants to be very clear.

Speaker 4 42:46
On assault, we’re gonna get into three. Commissioners, I’m just gonna start this off really quick. Normally, in the budgets you were used to probably the last few years me presenting the budgets. Actually. Today Kyndra is going to be presenting the majority of the budget, I’ll jump in for some ancillary comments here and there. Kendra has done a really good job of helping us figure out most of the stuff and maybe just a handful of decisions. And this is kind of part of where we’re trying to shift as an organization created. So we’ve got redundancy, but some redundancy and as we look at succession planning, it’s different components.

Speaker 10 43:30
So we’re going to talk about what our challenges are. And this is not just for 2024, but it’s for every budget as we go into every budget year. So we do have revenue uncertainty, there is a TV tenant vouchers that we budget conservatively for we budget based on the tax program, we don’t budget for their fair market value, because they’re portable. If that tenant leaves, we’re not going to receive that revenue. So with that said, we do have some properties that don’t have project based vouchers, they just have tenant base, and we really actually need those tenant base dollars to not come down to the bond barrels zero, at the end of the year with all the expenditures and staff costs that we have. The other thing we struggle with is the developer fees. So as we start taking on these projects, and La chain gets developer fees, we have to work the operating expenses and revenue in a way where we’re actually paying those developer fees every year. So that Lhh getting money for the admin as administrative staff. So that’s something that is also a struggle like it, are we going to come down and be able to pay developer fees at the end of the year. We have inflationary costs across the board. I mean, I know the city seeing it, we’re seeing it. Staff costs making sure that we’re up to market standards are all of our service contracts are going up? That is landscaping and snow removal and that type of stuff.

Unknown Speaker 45:00
So, okay.

Speaker 10 45:05
We didn’t see it this year, not for 2024 utility increases. So I get with the city and I say what are you our utility increases, but there are some utility increases, and we don’t know, during the budget center. So we have to estimate, we didn’t estimate very good for gas. And so we’re playing catch up normally this year. But now we’re trying to estimate, what could the prices be? In 2024? What’s it going to go up?

Speaker 4 45:32
The gas piece is really important. So we have some comments regarding what some of the exterior areas in Spring Creek, they actually budgeted for things like rock and other things to make improvements to those to those areas. But because of what we saw, increases natural gas, we actually had to hold certain areas of the budget to make sure that we had enough money to pay the must pay bills versus what we wanted. In terms of the rocket Spring Creek, as part of the budget conversations last week, last week, or Friday’s Friday, based on where we said, we feel like we actually have enough to cover those issues. So we did tell Lisa, that, okay, go ahead and order the rocks, so we can redo the gardens and Spring Creek. It wasn’t as fast as tenants wanted it or as fast as we wanted it. But we had to manage the property budget based on increasing gas prices.

Speaker 10 46:36
The next struggle is providing resources, you know, current resources or actually future resources that meet the rising demand. So one of the one of the things is the vehicle mobility. So the city gave us money to this year, and in 2024, to do this, pick up and do shopping, shopping wages for the tenants. But come next year, it’s a $20,000 cost. And I don’t know that Lhh is going to be able to work it into their budget. So we worked a little we worked about 5000, because we have 15,000 been carried over from the city’s generous donation. But come 2025 I don’t know if we’ll be able to

Unknown Speaker 47:25

Speaker 9 47:26
that service, we did it as contingency plans and counts continue to go, that wouldn’t be an option for council,

Speaker 4 47:33
it would be another option for council to augment it with contingency funds, I think where we want to get is, you know, ideally would have enough flexibility and budget to cover it. But if we don’t, let’s say we can only cover another five and we have 10. Now coming in for 25. We may need counsel to cover 10 for 25. Now when that will step again, for the 26 budget. But that will be something that we’ll be talking to the council and the commissioners about as we continue through budgets.

Speaker 10 48:04
And unemployment. When we first came in and the city first came in, a lot of these positions were under market way under market. So to get them up to market, which I think they are now we got to keep that mobility going. And to be fair retain, you know, the staff, and we’ve retained pretty good in the beginning it was like it was a little crazy. But we have retained our staff, which is great. The other part is benefits. So with the city, we have the city’s benefits, but with us we get charged exactly what the employees select. So if they select single coverage, it’s maybe a $7,000 cost. If they select family, it’s 20,000. So I have to kind of gamble like this person currently has single coverage, but are they going to change come November. So it’s kind of a struggle to understand what they might do. And they may not even know until it’s open enrollment for them or their spouse to understand if they need to change benefit packages. But for us like with the city, they do 16% And it’s pool, you may have one apartment that has single coverage, and you have another part of this family. So they can do a 16%. But ours can be anywhere from $7,000 Mark to $20,000 for family or single coverage. And that’s just health care. So then you have so that benefits can be a real struggle to know. And if we don’t have a position filled, we automatically say somebody’s coming in with family. So we budgeted a high amount and so we could have cost savings if that’s not the case. But it’s it’s and it’s on one of our HUD properties, then we have a real problem because they’ve only proved a certain amount and we won’t get any more. So that’s kind of just our our budget challenges every year So we’ll first go over our federally assisted property steps, the Hearthstone, the lodge and the suites. Those are fully federally assisted. For the Hearthstone, in the watch, we have submitted the budgets to HUD, they have not been approved yet. They kind of expect anywhere from 150 days to receive approval. So, right now, it’s like only five for the lodge. And that the right the reason we have a higher increase there is because of the fire that was there, we’re still have a greater increase in insurance for that property. And then the Heartstone, it was 6.86 to kind of get a gauge last year was about seven 7.5 for these properties. And HUD come back and said, you can’t have this land push back because most of those costs that they were taking out are going to be cost that were going to occur like utilities and stuff that then turned out so we can negotiate. But a lot of the times they say you only get a 4% on those properties. So but we’re still waiting to hear. But currently, that’s where these things budget stands for the suites that

Speaker 9 51:06
can be applied does not approve our budget proposals and budgets. Were those increases ignited and put in there 5% and 6.8%, which will be covered by HUD, right? That’s not a pass through cost.

Unknown Speaker 51:21
It’s only a pass through.

Speaker 9 51:25
If they if it gets approved at 4%. How does the how does the BB the difference cut out? We didn’t cover the difference.

Speaker 10 51:34
So usually what they do is they come back with a letter and they say we’re denying this part or denying this part or denying this part. And then we come together and say okay, do we really need this year this year? Can we do this this year, there are some things that we actually have planned for an LE je budget, specifically for the hearthstone in the lodge. And one of them is the VF ability because they won’t they don’t allow any type of tenant service amounts in the budget. So we already the Lhh are funding that. And so we would have to come back and say,

Speaker 9 52:09
so you’re going to try other parts of the allergy budget in order to cover the gap between what foods and what the actual insurance

Speaker 10 52:16
plans Yeah. And if there are costs that we can then trim on their budgets.

Speaker 4 52:24
We’ll look at their budget, we’ll have to look at the LNJ budget potentially, or we’d have to look at fund balance to figure out exactly what we need. Now to that point. You know, we have talked to the Commission about this as a tool to project which creates this issue. We have talked about trying to get out of the tools to program based on staff has actually gone through the transition Conversations with God. You have to time it. And there’s some very specific dates and I can’t remember, you have to time it in conjunction with your budgets and middle and what you’re sending into him. And so in this case, when we started the HUD programs, it didn’t make sense to do it this year, because we would have been to progress. So we are starting that for 2025. To try to get out of the 202 program into what is it it’s a to program. But again, these increase it to the point, the increases here are absorbed by HUD not 10. It the only increase the tenant gets is if their income increases.

Speaker 10 53:37
And the same bowl of soup for this week’s we were pretty far behind in requesting increases from both la J and DOH. To get ourselves up to the fair market standard. We went to doh in February of this year and did get approval to move to these these amounts. We try to keep it consistent or lmJ side, we’ll see that these amounts don’t concur with what you’ll see in the 2024 bear market. But we keep it consistent. And we’re gradually getting there. We just had a conversation today that they really did hold off asking doh for a little while until the 2024 comes out so that we can get closer up to that that range.

Speaker 6 54:20
So if they don’t match up consistent means they’re proportionate or I just didn’t quite you’ll hesitate.

Speaker 10 54:31
Yeah, so So the fair market rent. So for example, in efficiency, efficiency apartment is going to go up to 1004 67. But the fair market rent because we haven’t got J yet and we have the 2024 market rents it could be hired, but then you just cause conflict at the suites. Somebody may say my rents this why is your rent that you know, so that’s why we try to keep it consistent. You as well, and go up to the amount that doh has also

Speaker 6 55:04
approved. And so why? Why doesn’t everybody’s rate go up based on because

Speaker 10 55:13
these are all PDS, these are all project based vouchers. And project based vouchers are a contract. That you, we have a contract with Elijah and a contract. And you have to get approval to not only increase your voucher size, if you need to increase your voucher size, but also to get approval for the actual amount that they can sustain. So for example, we have to review our budget and say, Can we go up to this cost? And what is this cost on a voucher program to that effect? Because we got money this last year, and we were able to actually look like the voucher up because we increased the suites. Does that make sense? Based on her voucher program as well,

Speaker 4 55:57
on the city side. LBJ side, it’s harder to move to that fair market ramp because that takes revenue out of the voucher program, which then ultimately reduces the vouchers that you can put it out on the number of vouchers you so what they’re doing is they’re actually aligning to the dolla number, knowing that we’re not at fair market value, and we we need to probably back off Abdullah for a little bit so we can catch the housing authority to be in alignment with that.

Speaker 10 56:37
A lot of moving parts. There’s a lot of moving parts. So today, we would we would be asking Lhh approval to move to the same subsidy amounts as Doh, approved for our contract date, effective date of December 1. Again, these these don’t affect the tenants unless they’re in recess.

Unknown Speaker 57:17
Just use the arrows

Speaker 10 57:21
to build the arrow. Okay. Yeah, don’t be presentations very often. So all the other properties we are projecting four or 5% readily increase that will include all of our right tech properties. Once again, if they’re already at the tax credit rent today, and tax credit, usually goes up in a row. If that doesn’t go up, 5%, then the tenants rent is not gonna go up 5%, because we can only go up to that tax credit limit. So you could have some people that are way below that, and they will receive the 5%. But if they’re closer to that tax credit rent, it could be from zero to five, depending on what tax credit increases,

Unknown Speaker 58:09
security increases.

Unknown Speaker 58:16
So some could get hurt.

Speaker 4 58:25
Yeah, we spend a lot of time on this. I think the challenge going back to the first slide and understanding the challenges or the operating expenses are just driving so fast that we spent some time going what can we do? What can we do hold backing off in certain areas so that we could manage the most pace with the watches says we’re looking to the future.

Speaker 10 58:53
So these are the 2024 fair market rent standards. Because we are seeing such an increase. They are increasing anywhere from 11% to 14%. Based on our 2023 and in 2023, we went up to 105% a fair market, we are asking that this year for 2024 is just 100%. We’re not asking

Unknown Speaker 59:18
to go above

Speaker 10 59:20
and beyond that, because of such that the increase that we got and how it’s going to affect our voucher program.

Speaker 6 59:29
Does that mean the report scrimp on operating costs?

Speaker 10 59:34
We don’t we’re not going to have to scrimp on operating costs. But what we’re going to have to do is watch our two year tool program and make sure that as we as people get certified, that we’re staying within the voucher limits that we came. I know when a previous I think it was in August that board meeting, I showed that our vouchers were going to go We’re on there like 430 right now. But by the end of next year, we’re probably going to be down at 410, just based on the 105%, fair market that we’ve been up to, and the new increases that were occurring there. And it’s all dependent on the HUDs gonna give us more money, I assume the budget based on how they’re increasing this, because this is gonna affect everybody. But if everybody’s not battering up, then maybe there’s no money to give. And that’s the only way to help people get captured up in these programs. So we won’t know that until March of next

Speaker 4 1:00:33
year, we have stayed at 105%, we would have had operational issues, in terms of, you’re gonna have financial issues by not staying at 500% and up to 100, or 205%. And then moving to 100. That’s letting us balance

Speaker 6 1:00:54
if you use vouchers, but all your vouchers are. So many people lose their vouchers to their house,

Speaker 10 1:01:03
technically, right now we lose it out for arbitration rate is about four vouchers a month. So that’s what we pay attention to. So if we lose four, and we don’t think we can add those four back, our vouchers just decrease. So and a lot of it’s, you know, due to, you know, people may point out, and then we never hear from them. They may, it may be they may lose their voucher for particular things that fraud was I haven’t reported certain stuff. So based on our attrition rate, because we submit stuff to HUD on a bi weekly basis, our move ins move outs, our attrition rates now for for vouchers and disabilities. So it’s a it’s a game we play every month to say, Okay, where are we at today? Where do we need to be tomorrow? And how are we going to? Are we going to bankrupt ourselves and to two years, this is what the to hear to listen.

Speaker 6 1:02:11
I was thinking in terms in terms of permitted vouchers we are entitled to.

Speaker 10 1:02:20
So we’re entitled to that 518 I think we’re up to five. But with the fair market standard there and our rent base right now, there’s no way you can get up to that

Speaker 1 1:02:32
fair market standard based on the entire city.

Unknown Speaker 1:02:37
It’s based on county, so it’s based on status

Unknown Speaker 1:02:40
based on

Speaker 10 1:02:42
Yeah, you can get it down to the level of so you can go down to the level of the hug, but we also try to keep in balance with Boulder County, because they’re also offering vouchers in Longmont.

Unknown Speaker 1:03:01
It’s trying to gauge how they determine fair

Unknown Speaker 1:03:03
market. Now this is counting. And so

Speaker 1 1:03:07
a county fair market may be a little out of whack or lost.

Speaker 4 1:03:15
The challenge we have is Boulder County have boulder Housing Partners that say okay, we’re at 105%, or 110. So what we have to be careful with is if we get too long on specific, then the private landlords may be more apt to take the county vouchers or the housing vouchers, because they get hormone.

Speaker 6 1:03:38
Yeah. I’m thinking about the reaction of residents that are in market rent, apartments, they’re gonna look at these numbers and go Well,

Speaker 1 1:03:50
let’s look at these numbers. Like I know people that rent market rent apartments for less than less.

Speaker 2 1:03:57
So recall that these, the housing choice vouchers are intended to have people go into market, right? Yes, no, I understand. It’s just too big.

Speaker 9 1:04:14
Nevada, the value of the voucher is dependent on the income of the individual that they qualify for it closes the gap between that number and what they can actually qualify for as they qualify for their share.

Speaker 4 1:04:31
Correct. And that’s actually when it gets hard with the tenants and we talked about rental increases and all of these issues. Like literally when I go out and talk to them it’s I start off with saying the first thing that everybody needs to know is not everybody’s rent is going to be the same for him and Matt, because on the voucher side you have the income different well even in the different AMI, you have income differences, the play and so it really is based on the individual So

Speaker 9 1:05:02
how much how clear you think our residents about the implicate not so much on the voucher program. But if I, if I doubt that conversation a few minutes in terms of what ends up in the general fund and what you can do, and do and how you’re going to cover shortfalls, whether it’s locked in a garden or something else. How aware are residents of the variables you’re managing your relative to budget? And what that translates into in terms of either amenities or service or like, like via transportation? Are they is that part of your coffee? conversation with them?

Speaker 4 1:05:42
We do talk to them, I think it depends on the road. I mean, it is really specific to the individual, some really get it when we’re in those conversations and, and they end up helping to try to communicate to the other residents about here’s what it is, others felt and understood like, well, we want this, this is what we need. And I think part of that, or what we want. Part of that is also because there is a transition in many cases from single family residential into multifamily or private apartments to affordable apartments. And really having to work to say there really are some budget restrictions that we have to deal with. I would say this year has been better in that coffee and conversations versus the last two years. So I think they are starting to get that but it really is just about communicating. And after we had one at Spring Creek, I had some residents come to me going well, we need to rock when he told us it was budgeted. It’s like yes, I did say it was budgeted, but the gas prices went up when we needed to make sure we can pay the gas bill. And we’re managing these budgets on on a monthly they’re managing on a daily basis. Kendra looks at it on a bi weekly basis and then on our issues, then it kind of in so it’s better, but it’s still a struggle.

Speaker 10 1:07:07
So this is just kind of a historical look at what the tax rent credit rent increases are so far our tax credit properties in 2022 is where we have the biggest hike, it was about 7%. And just this last year in April, the increase was almost 6%. So but then again in 2020 2021 had very, very, very small amounts. And I’m sure that was related to COVID and everything like that. But technically even prior to that, it was anywhere from three to 4%. It’s usually what we see, I don’t know we’ll see this year. I mean, everybody’s has inflation all over the board. So whether or not they caught that infliction in 2022 and 2023. That will be a later year. That’s what we won’t know that until April when they release this new chapter. So these are other items that we’ve added into our 2024 budget. I’ll go through them and then I’ll let Harold speak a little more about the assistant director. This we have added in this budget and assistant director. It’s currently budgeted 5% HCB, and 95% lmha. It is dependent on the Neha the ascent and our projects. And the reason we’ve added in into the budget now is because we will know that outcome until the November timeframe. For those properties. We are adding November or November we’re adding another custodian, one custodian at five hours at each property was just not enough. So we’ve added another one. So each property can have 10 hours. The resource specialists which was last year budgeted at the suites, and the hearthstone in the lodge, and we wanted to keep that service for the hearthstone in the lodge. But we didn’t feel that the resource specialists based on things that have happened was not the best fit for the suites. So we’ve switched that to a permission one, with the fair market rents increasing, we’re able to do that. And with what’s allowed by the investors for supportive services, we’re allowed to put the clinician one at the suites instead. And then the resource specialists, the 60% lH a funded will be for the other properties. So we couldn’t put it down to the other properties we tried. But we can do we’re in the hole. So la che is currently funding the 60% flat resource specialists and love to see, you know how you progress in years forward to see if that can be moved to the properties

Speaker 4 1:09:50
that actually goes to what do you do when you don’t have enough money and you start figuring out how you need to do this. What was behind the resource specialists in the shift here Is that when we created it, you’ll remember it was primarily for the sweet. And it was because the issues that we were seeing different residents and trying to manage it, what we’ve really learned through the process is that is not the right position, because we really need someone that is in that condition role that can handle trauma, and significant mental health issues. And I think that created part of the turnover in the resource specialists, because that’s not what those individuals do. So that was the shift. And so the resource specialists will be working with all the Housing Authority properties, the clinician one is going to be specifically at the suite, that’s also connected to the adjustment that council made with the marijuana funding, where we have the two clinicians that we’re going to clinician threes that we’re going to find out in American remaining marijuana funny, all of those conditions will be housed at the suites. The difference is the clinicians two or three will be able to support the other housing authority properties and other city issues related to mental health and work in conjunction with leaving for senior services and Children and Family Services.

Speaker 6 1:11:14
So one of the qualifications for a clinician as opposed to resource specialists as a clinician and Masters of Social Work type program,

Speaker 4 1:11:26
their mental health professionals, and and based on a one, two or three is your experience and your certification. So it’s a different skill set

Unknown Speaker 1:11:36
that was get well, what’s a resource specialist.

Speaker 2 1:11:40
So for example, our resource specialist connects people but navigates them to resources that they need. So if somebody is in need of figuring out how to get social security benefits, or disability qualifications, or just needs help here and there financially, or I need help from senior services for this or other organizations for certain things, there are more of a connector, then a crisis management working through like a council member, yes. Oh, Counselor. resources. And what

Speaker 4 1:12:22
what you have done as a housing authority, and as a city council is pretty pivotal, because there are some, and I don’t understand the state programs. So there are some state programs out there that says, Oh, you can get funding to help with this work. But you have to be at

Speaker 2 1:12:43
15 to one case management ratio, which is very aggressive. They would like to even see 12 to one, do you even qualify for state funds for supportive services. So they’re asking basically what you’re asking for just to get started. So this is our like, to try and get closer to x

Unknown Speaker 1:13:05
to leverage more stakeholders.

Unknown Speaker 1:13:08
So in this case, the ratio would be different. If they were full time at the switch, you want to 16.

Speaker 2 1:13:15
So if we have, so we get to count MHP does bring in a caseworker as well as not necessarily clinician. But with all the bodies on site there for the support services function, they have two people there for 40 hours total. And then we would have the clinician one, two and three, even though these wouldn’t be on site all the time. But that is now we’re down to one to 20, rather than

Speaker 4 1:13:41
the ceremony coordinate. Nation she’s part of. So what we’re working on right now that the Center of Excellence model is yes, she’s interfacing with what we did with the neighborhood impact team, we’re actually creating a mental health team in the same model. And so Sarah will be interfacing with that in public safety, which is why I said now globally, you’re gonna see our senior service staff or you service, our leading core staff and the conditions here working as a center of excellence. So they’re supporting each other in environments.

Unknown Speaker 1:14:20
Before we leave this slide, I see me appear, apparently bought some time.

Speaker 4 1:14:28
We have that as an item to talk about later, just tonight.

Speaker 9 1:14:34
When did you get the dial linear? Or at least for this budget model?

Speaker 4 1:14:40
Yeah, so the assistant director is one of those we need to budget it but it’s one of those where we will be talking to the commissioners about this as we move forward because it doesn’t mean that we’re just going to open it up and go because there are some points that are really critical as we look to how we finances over time. And you actually will see that as we started Looking for fun balance. And, and the work that Kendra is actually done to really start projecting into the future. What if unbalanced is looking like? Because not all of these revenue streams are going to come on at once. And so we’ll talk when we get to the fund balance sheet, we’ll talk about this position.

Speaker 9 1:15:20
Okay, I just more curious about since we recently talked about, yeah, what to not to do with this proposal.

Speaker 4 1:15:29
So we’re going to talk about that, because we do need some direction from the Housing Authority Board as we look at this, but we did buy or sell some more time. Now we’re trying to figure out.

Speaker 10 1:15:41
So the other things are, we did play on the 5% increase plan for all of our services across the board, we did save money by moving snow removal into the LHD, along with providing an additional revenue stream with that. So for example, in 2023, our contracts, our snow contract, which actually is 2022 to 2023, is $145,000, we’ve reduced it to 90,000. And that is to provide two trucks, the maintenance on those trucks, the gas on those trucks, and also find a reserve replacement so that we can replace these trucks every eight years is what cash gave me. And that’s what the brand new truck. But what’s what’s been happening is we’re getting the city goes and buys brand new trucks, and then we get a fleet truck, which is which is great, too. But at least we’re budgeting for we’re budgeting for an increase. So what we’re putting in the reserve is with a 4.5% planned increase on car cost. So to two brand new vehicles will cost like $217,000 in eight years. But realize that’s a truck with the snowplow and the sander. It’s got a lot of other amenities with it. But rock alone

Speaker 4 1:17:09
was about 75 to 80 $85,000, all the other functional

Speaker 10 1:17:13
stuff. Excellent. So I think this, this will help not only FHA, but it’ll also help with properties, operating budgets, because it was getting costly. And if we have massive snows like we have in the last couple of years. It just was a lot.

Unknown Speaker 1:17:33
It used to be that kind of women. That’s why here.

Speaker 2 1:17:35
You own the truck, the first truck now we have the keys in our name. And last week, it’s insured so the crews are doing training with cash on sand material and doing so we are ready for the first note with one truck.

Speaker 4 1:17:55
Yeah, so So your question earlier about you know, looking at supply chain, that’s what’s hidden is that’s what hit the second truck because the order that we put in for the others got denied. There’s another order in that we’re watching. Maybe we can get it earlier we’re trying to find I mean, we went to Toro to look for Toro sidewalk cleaner can’t find them. So now we’re looking at the John Deere Kubota to try to find one. We can’t find it, we may buy some larger snowblowers to use on the sidewalks for this year. I didn’t talk to the cash about if we do that we always have folks on the city that looks for snowblowers so then we’ll sell the snowblowers back to the city when we can get the other piece of equipment so we can fund it. So definitely everyone’s getting ready. We also talked about if needed in a significant store. Obviously they would work with our operations who’s to come in and help us emergency access. So without that our budgets we’re having a much more difficult time putting the budget together

Speaker 5 1:19:08
I know that people buy snowblowers and use them on their own but the thing is, is that in the city situation the city do we certify them to run those because that always concerns me when somebody is operating something rip your arm off type of situation is all about like channeling your viewer literally.

Speaker 4 1:19:32
Yes, I mean we work with risk to make sure like don’t leave it running to try to get the car got us the shovel that comes with it. Okay. Well,

Speaker 5 1:19:44
I always worry that that that’s you know, such a liability compared to the truck with the thing in the front there that you until our ability to know especially with that like you know those little things we have in some of our parking lots with the little sapphires.

Speaker 4 1:20:07
So you do no snow removal, what we are telling the folks is they have been asking us to snowball and do things in between the cars. And for liability reasons, we’re not doing that, because that I can just see what’s going to happen the minute we start getting in between cars, you may hear that from the residents. But we’ve been pretty clear over and over and over from a liability perspective, we’re going to give the path clean. Some of the facilities are working with other presidents to help each other out between cars. But it’s just not. That’s not a place where you can literally want to go to

Speaker 5 1:20:43
like just the tasks of so much, especially when you’re throwing out stuff, close to rocks.

Speaker 10 1:20:53
And then we’ve done the same as the city has done a 4.64% increase on market for salary increases. So here is our general fund forecast. This is our start our start and our first. Basically, it’s an adjusted fund balance at the very beginning. And the reason that is is because if you look at lhhs financials, we have a lot of money in notes receivable. But the notes receivable similar to other loans that you’ve had to prevent, most of those are probably going to be forgiven during the recertification or most of it when you’re going to get back. So I don’t count that as money coming in. So it’s literally our current or current cash. And any AR that I know that’s coming in within a year or two that I put in fund balance, then you’ll see we have developer fees. And those developer fees are an MSA, we have the suites developer fees, it also includes village on main developer fees that are coming in, those are the ones we know for sure. Then you have our management fees. So current, our current properties today are about 396. And I realize our management fees are a percentage of our gross receipts. So if we’re making collections than we’re getting a larger, we base it off of the actual income, my income minus vacancies is how we so if we have less vacancies, we’ll have more revenue coming in on the management fees, we added Zinnia because it is not something we’re gonna get developer fees, but it’s something that we’re gonna get management fees, or we have corporate management fees, which are currently from LH, TC, anything kind of in Black isn’t isn’t an automatic amount that’s going to happen every year. Anything that you see in blue, is functioning off the percentage increase. And this is just a first I just did a four and a three, based on an increase that you could see every year, whether that’s a 44% increase in rents, or it’s a four step increase in inflation.

Unknown Speaker 1:23:06
So there we go numbers, they’re

Unknown Speaker 1:23:11
kind of hard to see it up there, I maybe I should do it.

Unknown Speaker 1:23:14
Red probably would be a better.

Speaker 10 1:23:18
And then we have snow removal. So we’re going to have snow removal revenue coming in. We also have snow removal in our maintenance operations as an expense. And then our others just plan things that we could possibly have. I mean, we have some budget this for 2024. But and you could have sort of just budgeted as such. Then you have the expenditures you have your administrative, which is mainly salaries, it’s it’s mainly salaries legal, and the city staff, the consultant, and an offset coming to that you have tenant services that 71,000 is the mobility, that is for the hearthstone in the lodge, along with the resource specialist. So if we continue that service, the 60% will just see a growing increase for that.

Speaker 6 1:24:15
Like for quantity forecast, based on 4% In the five years and 3%. If it was honestly,

Speaker 10 1:24:24
that’s something we have to dive into deeper in our next round of doing fun, this was just like a first to give kind of a snapshot of what we can see. What I have to do is kind of see what is what is the standard increase we’re seeing. So if we’ve increased so I could have done 5% This year, because we’re increasing rents right percent. So technically your management fees would go up 5%. It’s determining what we’re actually going to see an increases and I haven’t done that analysis to see if there’s a platform that could give me a forecast to determine what that is. So that’s, that’s just a plug number right now, it will obviously change from year to year. And we probably gotta get a better, better way to forecast that. But I just wanted to be, I knew we’re gonna have increases, I wanted to make sure we forecasted for it just so we can see. You know, what we want to get to is not only seeing our fund balances, but when we actually need to start doing development again, so that we’re getting most developer fees, if we’re not getting continued revenue from other sources to pay for their administrative costs. The maintenance operations is most of that is we do have maintenance salaries there, because our supervisor and we have attempt to that the budgets and the properties just can’t handle their full amounts. So la che is helping fund their salaries along with the cops that are going to come with the park, the trucks that we have for snow removal. General is mainly insurance. So that’s going to be our insurance costs that LEA has allotted of that’s more related to directors, we do have some commercial property that we have insurance on. So that’s that. And then other expenses right now, for the 59 500. The reason I put that in there, because we haven’t paid for the second truck yet. So that’s kind of the second truck with some extra amenities in there. In case we don’t know what that that costs could fluctuate. And then I just added, you know, we could have other expenses. So in 2024, our projected ending fund balance would be 2.6. By 2030, our projected fund balance would be $543,000. That’s without the hopper project. So if a cent gets approved, that’s what the red is down below, because we would get developer fees from them. And those would start coming in. So what we want to do is get to a platform where we have enough properties that are either going to re Syndicate, and you’re going to continue to get developer feeds coming in, or properties that we’re managing, so that our platform stays in balance.

Speaker 4 1:27:23
So this tells me so to answer your question, this is our first run at forecasting, I’m not sure that the housing authorities ever forecast in terms of what the future looks like. So when I saw this, assuming hoever doesn’t come in. So let’s say we don’t get in this tax credit round, but we get in at the next one, you just slide those numbers over. So when I talked about the assistant director position, so we said overs in the mix, at was in the mix, and he has in the mix, if one version of those hits, then what we would really look at doing is somebody look at the fund balance. And then we back up, when you see the ending fund balance. I think when we start in Commissioner waters, you’re gonna have to help me, I think prior to this, I think the best that we know is that the fund balance tended to be between 1.5 million and 2 million somewhere in that range, historically over time. So what you see is, with the development work that we’re doing, we’re actually taking that fund balance to 2.6 3.2 2.7. If one of these projects hit, we have enough capacity in the fund balance for me to go ahead and fund the assistant director position knowing that ongoing revenues going to hit in about 25 or 26. So that I have ongoing funding plan, but we’re using fund balances hard to position to get it going. The other thing that this tells me that I think what we saw in the housing authority that was part of the challenge financially is it also tells us, it’s very clear that we need to have a project in 2026 Go from a development perspective. And then if we do that, instead of sliding to 2.7, we may slide to 3.5. And then it starts shifting that fund balance out over time. And then it starts informing the development schedule in terms of what we need to do to stable financially. And that’s the big piece. Now you see if we get hold of sent in, the numbers changed dramatically. But it still tells me that at 2026 we want another project going in because that’s going to keep pushing our fund balance up as we look to the future for the house at the border. So this is this is really good stuff when we start looking at development schedule and what we need to do financially and we can start becoming more not focused, we can become more planned. In terms of the developments that we’re bringing on in the future,

Speaker 6 1:30:03
but the regular numbers up there at the top for the forecast events are almost a demonstration at this point. Whereas if you, if you had firmer gates for homes, and other things that you could put real numbers

Speaker 4 1:30:19
in the top piece, that’s the actual. So that’s what we would say is probably pretty close to worst case scenario, the projected ending fund balance where you see go from 2.6 to five.

Speaker 6 1:30:30
That’s not what I was, I was asked, I was asking the 4% and the 3%, you wouldn’t? You wouldn’t have those numbers are, are not based on an expected reality. They’re just based on to show what the forecast percentage does know, we would have an increase an increase. Yeah, so but if you knew what, when a cent was going to land, and etc, then you would change those to more accurate numbers,

Speaker 4 1:31:02
those, it’s still because that’s expense for that’s expense increases,

Unknown Speaker 1:31:07
that those changes will be short down here.

Speaker 6 1:31:11
I’m just I’m still struggling with the idea that these are made up numbers. So what would you do with those real numbers? So

Speaker 10 1:31:19
for let’s just take the current properties. So current properties right now, for the management fees is 396,000. In 2025, I’m expecting like, let’s say we have a 4% rent increase, if we have a 4% rent increase, the micro properties by management fees are increased by four. Yeah. So that’s, it’s just a way to forecast,

Speaker 6 1:31:42
I understand that what I don’t understand is how you can say it 2025, I’m gonna assume it’s 4%. And in 2026, I’m gonna assume that it’s 3%. What informs those numbers? And when I asked the first time, I think you said, I don’t know. And I just picked numbers. Correct? So that’s the forecast. So what would it take to be able to pick numbers that are made? That were related to reality?

Speaker 4 1:32:14
Well, a, it’ll never be related to reality, because what we’re going to have to do is go back and look at what historically has been the increase over time. And then, you know, we tried to figure out the type of we would run some type of regression analysis or something to look at what What is that look, looking forward. But whatever we put up there will never well, I know, it’s never gonna be exactly right. But so we would have to do some work like that, to go back farther in time to kind of see what’s happened. And that’s the work we need to do for the next budget. So this one was really starting it knowing that it’s going to get to

Speaker 6 1:32:56
I was accepting that that’s the best you can do for now. I was trying to ask to do better, what would you need to know

Speaker 4 1:33:04
we would need to get the data and really make sure that it’s right, in previous years and never had some type of regression analysis on it to figure out what is, you know, what do we really forecast based on

Speaker 1 1:33:15
outside data collecting? Since we’ve taken over? Is there any sort of Portal or a information source that would give you that kind of data?

Speaker 1 1:33:32
I mean, having having having been dealing with multiplicative regression analysis, yeah, for the last two months, myself. Do you have any? Do you have any suggestions of how many data points they’re sticking into a system? And the system still doesn’t really work? Great. Right. You know, that’s, that’s where I’m coming

Unknown Speaker 1:33:53
to get, you’re kind of in an area.

Speaker 1 1:33:55
But once you get in a typical situation, yeah, it doesn’t work.

Speaker 4 1:33:59
And so and that’s a problem right now, because we’re in potentially, in a typical situation with what we’ve seen in rent increases that so we don’t want to be overly aggressive, because reality may be that modeling, it only went after

Speaker 1 1:34:13
the last few years. So I was wondering if you’re basically taking most of your data points from from in house data collection, versus some, you know, external

Speaker 4 1:34:30
source? Well, what I would like to do is take what we have, and then also see if we can get some of the other housing employees to look at what they have. I will tell you that. I’m not sure that many of them do, but I just know that there’s other housing authorities in the area that are having struggles right now, with their operating expenses and things like that, which is why we got into this so we’re trying to work to work through that.

Speaker 9 1:34:56
I will tell you having looked at budgets for the last 10 years Have, we never seen anything like this. And this is really helpful to inform the kinds of decisions and the urgency of decision making in the years from 2004.

Speaker 4 1:35:11
So like when we see 2026? Well, like I’ve talked about is, that’s where a lot of homework, and that’s getting that project teed up, so that we can be more methodical, versus having all the development projects today, we have been on screen. I’m really excited actually about this.

Speaker 10 1:35:41
So the next is just going into all of the property budgets.

Speaker 1 1:35:46
Just real quick with this, would this also be the property detailed budget comparison?

Speaker 10 1:35:52
Well, if you want to see the detail, we can go into the detail, this is the summarized version, okay. So this is the summarize the detail goes into every single expenditure, what is

Speaker 1 1:36:03
known as the next item? Oh, well, this is still done, this is still the I get it. I was like, does this run into that or demo this is separate

Speaker 10 1:36:15
that if you guys, what I would say what I would propose on the detail was do you want to go into the detail? This is the summarized version of the new tech. So each one of these, I tried to do it by Canvas. What you can see in Aspen Meadows seniors is one that I would say does not have project based vouchers. So we budget conservatively for those tenant based vouchers. And each one of these let you know how many vouchers on the tenant side we have. So for Aspen meadows, we have 11 vouchers, we’re expecting, let’s say all of those were not in that in that budget, we would have a $2,000 net income after everything, plus the mortgages and the reserve replacements that have to be paid as well. But if we do have those tenants stay for the entire year, we would have another $123,000 that would come in revenue stream for that property.

Speaker 4 1:37:17
And this is gonna sound crass, but what are the biggest issues in our age restricted units in terms of vouchers and mortality? And then can’t say that’s gonna stay there, whoever gets that next voucher has a choice. So that’s why you see, we were conservative, and then you see what real world may look like.

Speaker 10 1:37:40
And for next year, we’d like to get to a point. So it’s, I’m tasked with trying to figure out like, what what does our vouchers look like? Like if we’ve had a lead for the last five years? Do we budget 50% of that HCV money coming in and kind of get a better idea on how to account for those vouchers. But right now, we just didn’t count for them to see where we could be at. But that’s what I would like to see next year is to be able to forecast those vouchers and do a percentage into the budget. As we know, this neighborhood is looking good. We are trying to do both a math reserve and a capital reserve replacement so that we can have money to do these things that these properties would like to have. And have that funding if it’s if it needs to happen right then and there. Well, yeah, I mean, senior apartments, I can’t do anything. So I can’t do math, reserve or capital.

Speaker 2 1:38:45
No, senior apartments was just renovated completely top to bottom.

Speaker 4 1:38:50
So what you’re seeing are the choices when you go, Well, what happens if in 202, they don’t approve it. We don’t have those kinds of reserves. Now, at the end of the day, if you see the voucher stay, then you inherently do have that reserve that you can fall back on if you need it.

Speaker 10 1:39:08
Aspen Meadows neighbor does have PBV vouchers, but they only have for HCV. Fall River does have PBV vouchers. So let’s click this. And here’s here’s another here’s where the developer becomes. I can only problem I do I’m only estimating the $10,000 payment to LH DC for their developer fee. Technically, we would want to get to a point to where they projected it when they actually closed on the property because then give you that projection of what should happen. And I don’t think we’ve been able to follow the Fall River based on based on what’s happening. Spring Creek is another one that has absolutely no PVD vouchers. We’re going to be pretty light but we know that does include meth and capital reserves but they have my teenage seat managers. Now this property sorry, this property I did for the downtown campus, which is village on main village on Main is about for nine. And then why are we 47? What has 15 vouchers, what s3 vouchers and then we have the hearthstone in Milan and Hearthstone in the lodge, they really actually, we have to go down to the penny on those ones is kind of what they require. So that’s where we’re at today. The suite has a pretty good developer fee payment included in their number, that’s $80,000, we’re expected to pay lmha for their developer fees. And this is all based on cash flow. So if we have more cash flow that comes into the property, then it would be a larger payment. Then we have our voucher program. So last year, we had budgeted about 5.7, we’re at about 6.2, they did give us additional funding this year. So we expect just based on the two year tool, where we would be at because you got to kind of look at that as it goes forward. not spend all of it in one year to make sure that you’re using your reserves. Because that that 6.2 includes our reserve money. And then you have our admin, and our admin is based on 10 doctors having 410 vouchers. If we have more about yours will have more admin and they adjust that on a quarterly basis adjust and they’ll give us more money based on our culture.

Speaker 4 1:41:57
To be clear, and like how the Housing Authority is operated before, like the cost, I think specifically for Molly myself, none of that cost is being allocated to HCD because we didn’t want to have that crossover because that creates issues. So all of the costs associated with quality myself actually comes.

Unknown Speaker 1:42:23
In again, sorry.

Speaker 10 1:42:27
Correct? Yeah, the only people budgeted in HCV, our accounting staff, our HCV specialists, our manager and the 5% of the assistant director is budgeted, as well. And then this is our SRO program. This is the in between, these are their mod rehab vouchers. And that’s also a budget that gets approved by HUD as well. So our Briar wood office is coming down to the wire for that based on what happens the the people that are in tenant, the UCP. They pay a 40% portion of the utilities, and then we pay 60% for the actual apartments. So that’s what utilities you see there. But it’s also we get revenue from that too. So and then we’ve added the Adrian house. The Adrian house is a new project for us. And it’s city based. So we’ll be reporting to the city and doing cashflow surpluses on a quarterly basis, back it back into the city’s fund, depending on what balances are left and paying affordable housing for the money that they spent to react.

Speaker 10 1:43:59
And then we have our general fund, which we’ve kind of went over in our general fund analysis. And then the llama Housing Development Corp. So this has got to be this is something we’ve got to start looking into. Now that LH DC is staying on board because we can’t move Fall River because of related party debt. We need to get donations. And I know there’s several talks about being able to do different types of donations to support tenants services, to support development, but to start actually getting funding in Dell hdc because it is a vital one through C they require donations to come into that and right now they paid LH $150,000 for the corporate management board that properties, but we may have to start looking at a different equation if I

Speaker 5 1:44:57
would have hosted Mark could a donation be when we certainly I was just thinking that what if on our utility bill people who wanted to help people with the issue around housing, and wanted to have a direct impact, you know, gave once a month $20, to, to our utility billing, to some sort of thing like that. And then by the end of the year, they’ve made a small amount of the $140 or so the nation, but maybe you have multiple families feeling like they’re giving a little something might might be a significant enough. And also, we would have the numbers that you’re maybe looking forward to,

Speaker 10 1:45:46
the only thing I would say there is, I think it would depend on things like the tax benefit. Because if it’s if it’s a utility bill, it’s going to the city, it’s not coming down HTC and LG HTC is a 5013 C. So if, if I was giving money, I probably wanted to give it to the 513 C, so I can use the taxman

Speaker 4 1:46:05
to do it, like we do, it would be akin to giving campaign where you’re quoted, but the city takes the money and then gives it to the organization. And so we can, you can still claim that there may be a way to do it,

Speaker 5 1:46:22
I’m just thinking that, that it might be that if you’re also looking for number of people donating and that might be a small, you know, it may be it can be you on the you know, have a floor to inhabit similarly to it or something like that. So you’re not doing too much interface with it, but might be something that people feel like that they would be helping in a really positive way, when we started talking about affordability law and all these other things, and trying to get people house. This would make people feel like they were having some sort of direct impact. Yeah, I mean,

Unknown Speaker 1:47:05
there we tried to kind of make the lmdc Go away.

Speaker 4 1:47:10
We were but if you remember the whole issue with the Fall River, we really go away. So. So we need to keep the tax exempt status there. And

Unknown Speaker 1:47:25
there’s a limit to like, get like,

Speaker 1 1:47:27
I was wondering if it’s really beneficial to give another revenue source to the LHC. See,

Speaker 4 1:47:37
they’re really a pastor, we would have to I mean, we didn’t have to structure it where you would create a donation account and the donation account would have people you would have a revenue stream and an expenditure stream where the expenditure stream goes to the from the L hdc. Into the LH a for President activities to paint in the

Speaker 1 1:48:00
satellite sounds extremely bureaucratic. Which bureaucracy is one thing but that’s a lot of different layers. There

Unknown Speaker 1:48:10
it is. And it’s very

Unknown Speaker 1:48:17
mature? Again, get it?

Unknown Speaker 1:48:22
Yeah, we just want to get them out of the labor.

Speaker 10 1:48:30
That would be the end of those lines. If we want to go into the details, we want to go into the next two, they’re listed as options. It’s completely up to you if you guys just have questions

Speaker 1 1:48:43
as far as two or three big detailed budget comparisons.

Speaker 10 1:48:46
They’re just basically all the the line item details.

Speaker 1 1:48:52
For first off, though, I don’t believe there were any actionable points of that that presentation.

Speaker 4 1:48:59
Well, I think what we need when we do the budgets for the housing authority is so if you want to go to the detailed information, then over that, and if you have no questions on the detailed information, then you can approve the budget as presented.

Speaker 1 1:49:14
Okay, so first off, we’ll start with questions on this presentation.

Speaker 9 1:49:18
What we what we just saw is the roll up of all the detailed information whereas the way you’ve done the last, no, I might put questions I haven’t had been answered. Okay.

Speaker 6 1:49:29
I have a question about the roll up, which is that as you pointed out, some of these are really close to the bone. And so what I want to understand is what happens if some risk happens? Some some risk. Turns out the bad lay on one of these projects that’s got pennies of leeway in the budget.

Unknown Speaker 1:49:57
When how do we make it up? So how do we avoid a real loss as opposed to a paper loss? What happens? Because that’s the only circumstance under which I could think about where I would want to look at that.

Speaker 4 1:50:15
So the big, the first answer is what we talked about with the vouchers. And so what we’re kind of seeing and what you’re seeing that kind of what you’re seeing in the roll up is the most conservative we can take. We know there’s revenue coming in via vouchers, we just didn’t include it in the revenue side. As we’re able to again, you know, create the forecast that maybe in the future budget, we could point 5%. So we have that revenue that comes in and we can do more. So that’s option one, because we don’t think about what it’s all about. The second option is that if we had an issue, then that’s where we can find out lhhs property specific issues, in conjunction with budget cuts, similar to what I talked about with, Oh, we’re not going to do the rock this year. We’re not going to pull the trigger on the rock. Until we know we’re okay with budgets. So it is really real tight budget managing budgets. As we’re going through

Speaker 6 1:51:19
the year, is this the same lock that the lady was talking about?

Speaker 10 1:51:27
And sometimes it’s a you know, we send these financials off to the investors every month. We go through it, we look at every anomaly. And we’ll say hey, you’re over budget. Watch out, or you have savings, because maybe we have maybe we had somebody budget over there that wasn’t it was a vacant spot. And now it’s filled, and they selected single coverage. And we put family into the budget. And so we’ll have cost savings and or the salary side. windfalls. Yeah. Yeah. So it’s, it’s a, it’s a monthly review that we do watch. I know we like it in the very first few months, because there’s not very many anomalies yet. But once second quarter hits us usually. Make one observation 10 new questions, I just want to say thank you for that. We really appreciate it. Do you want to print these off?

Speaker 1 1:52:33
So any further questions on this part? Okay. Then the second question is, does the commission want to hear either items D two, or D three? On detailed budget comparisons? Specifically? Seeing none, I would assume that the next step is to have a motion to approve the

Unknown Speaker 1:52:57
budget as presented I

Speaker 6 1:53:00
move to approve the budget as presented. Second. Okay.

Speaker 9 1:53:06
I do think in approving this budget, we need to there’s a action we need to take regarding the compensation with the interim Executive Director.

Speaker 4 1:53:17
Yeah, if you all wanted to reflect that, and I need the same direction for Molly. And

Speaker 9 1:53:24
as I recall, when we’ve gone through this process, we’ve approved a budget with the caveat or with a separate motion to authorize compensation based on the compensation plan we’ve agreed to, for that’s going to be paid out of this budget. So it feels like an amendment. Or maybe it’s a separate motion, maybe it’s maybe a precedes budget approval separate. Let me let me move, let me move. But could we just put it that way to put your order. I’m gonna move, then, in addition to what we see in this budget, that we authorize 20% of base compensation for the earring, in this case, base compensation of the city manager as Interim Director of the housing authority. And we need to do the same thing for Molly for Molly and do that to 20% of their base compensation as part of this budget to be approved, India’s second,

Speaker 1 1:54:20
okay. So I’ll actually take that motion, out of order. It says point of order as a point of order that the interim director and Molly received the 20% and Deanne receives the 10%. And there was a so that was a motion by Commissioner waters and a second by Commissioner report. Any discussion? Seeing none, I will take the vote. All in favor say aye. Aye. Oppose. All right, that motion passes six to zero with Commissioner Peck absent. Now we can move to To the second motion on the table, which is a motion to approve the budget as presented in considering the previously passed motion that was moved by Commissioner Martin and seconded by Commissioner dog affair any discussion? Seeing none I’ll take that vote all in favor say Aye Aye. All opposed and That motion passes six to zero with Commissioner TechOps all right with that it is been about two hours is this a good stopping point maybe for a quick five minute break Sure. All right, then we will we will take a five minute break after

Speaker 8 1:55:55
my my sister in law is the primary surgeon reconstructive so these guys through this had to put together from from that so reaching for the the beginner Jana jam it’s hard to turn them off because even the tension in their in their jam releases for an intention to show that you’re welcome to work

Unknown Speaker 1:56:33
at the very least out this combine so you have a bolt of pester and and pull our way

Unknown Speaker 1:56:53
are you so Good morrow

Speaker 8 1:57:02
yes you guys know particular Jimmy people be careful anytime that subjects that we’re gonna learn mattered in my sister in law She lied to me to get the pictures out x ray

Speaker 2 1:57:33
ca compliance okay so I want to I’m just looking real to come out in December to come in certified all the ones that we have done okay so in order to keep that track of what we’re trying to do this last week

Speaker 9 1:58:02
ongoing discussion on how to get all those kinds of things commission budget approval but this is this is really the best I’ve ever had those units

Speaker 7 1:58:23
or so we’re gonna be telling you that when in house you’re gonna have insurance that’s just going to do all the

Speaker 2 1:58:29
movement of items I would also say for stuff like an inch have them take a picture with a tape measure of cars maybe don’t know doesn’t have to go with everything we can look at that if we can show them the picture verifies that the new height of it maybe minimizing it up or down

Speaker 7 1:58:56
where we have two cabinets right so ovens working on the median cabinet and how many room and

Unknown Speaker 1:59:07
wonderful as you heard Oh, I’m sure but we are hitting a lot of items. Yeah, so

Speaker 7 1:59:17
impact Patrick and I sat down I went through MSA and and that really helps have everything knocked out this year. So that is his goal. And we’ve kind of structured how to do it when I’m there we’re for growth we have printed out on the desk so we can get almost twice a week.

Speaker 2 1:59:32
Yeah, just whenever you can’t, it’s not if we miss some. Maybe we’ll wants to see them all anyway, but those might eliminate all think of having to go back and do

Speaker 7 1:59:46
something easy. Guys, I just ordered it like four days and I’ll have him on the council just to order it.

Speaker 2 1:59:56
I went out to seven days a week Mistakes ago asking about the VCA

Unknown Speaker 2:00:04
for learning way awesome i I can’t figure out what they’re asking for. It doesn’t make this much better. I don’t know what they’re so yeah.

Speaker 2 2:00:18
I just tried everything single item has a target date for completely shattered, every single item in the photo is reflected in the list. I’m asking Leo to do, but if not, I’m gonna have to ask them okay thank you

Speaker 2 2:00:43
December 21 cons. I mean, I don’t respond when I get sick, they like lose some of the key. So, I almost wonder, and they’re appreciative for what we do. literal meaning about it. Think about it, maybe like no. So usually what I’m hearing we have to respond. He’s the compliance I get every once in a while I get this after. Right. So Hey, doc

Unknown Speaker 2:01:30
you wanted to know, for native so that I click on it. And I think

Unknown Speaker 2:01:42
that would be nice of him. Like I really want to see what’s out there.

Speaker 6 2:01:52
I don’t have the app, but I still get the and I put in on the bottom to unsubscribe and I still get them. I won’t read them. I won’t get on it. Or my mental health shows? Yeah.

Speaker 4 2:02:15
Is Ireson free give up to 800 or whatever? members who are in groups? The body’s elastic. Stasia now you did it, right. Yes, it was just a simple

Speaker 1 2:02:43
All right. Things are supposed to go to live, we’re getting visited. Okay. All right. We’re gonna come back into session now. We still have one more item of this five d, it’d be by before resolution 20 2340 through 2024 payment standards for housing choice voucher programs.

Speaker 9 2:03:09
I move approval of resolution 2023. Second,

Speaker 1 2:03:15
okay. Is there any discussion or questions? Seeing none, resolution 20 2340 has been moved by Commissioner waters and seconded by Mr. McCoy. All those in favor? All those opposed? All right, resolution 20 2340, passes six to zero with Mr. Peck house. Moving on to five E, middle income housing authority proposal discussion.

Speaker 4 2:03:41
So, commissioners, as you know, the state created a middle income housing authority to fund projects that are primarily workforce attainable housing between 80 and 120% Ami, there was a bit of a urgent push to make potentially a decision on this project on the city side, because what I would characterize as arbitrary ID day requirement to make a decision in the making before you really get to the point in the development process where you have all the information. And there was a significant amount of uncertainty associated with state rules in this program. So as we’ve indicated in the past, and as the states indicated, I think to a certain extent, there’s an urgency to put money on the ground and get projects built. And to a certain extent, they have indicated their ability to play what’s required. So we get that when we when we when we when we look at the program, in terms of how it fits in with the housing authority. Once we were able to buy some time I’d like to be able to get information back to the state in terms of whether or not this will work. And let me back up. Originally, we had to make a decision by October 3. We’ve sent a letter to the state requesting an extension until November 15, to look at and developed the specific details regarding this project and what it means for the housing authority. And the city of Lompoc. So two different hats playing in this one. What we’ve learned since then, in conversations is that the state really looks favored a, they look more favorably at projects that are partnered with housing authorities. And so that was a fairly significant piece of information. When we looked at the deal, potentially, it looked very similar to light eye deals that we’ve done in terms of what people were willing to do. And so obviously, looking at, well, it’s not specifically called out looking at a special limited partnership. But not technically, under special limited partner, a partnership that could range theoretically, I would say, probably three to 500,000, depending on how we negotiate it. So there’s that piece of it that you’re used to seeing and sort of sociated with the project. Another component that really kind of ties into the budget pieces is that you actually get a management fee that comes into it. And some clarity that we have on this is that the management fee does not assume that you will pay for the staff out of that fee, that’s just additional revenue, that would go to the housing authority, we think that you’d be in the neighborhood of 300,000, as well. And then on top of the management fee, you’d have the staffing cost. It looks like it’s somewhere in the neighborhood of estimated 300,000. But we have to get for the actual costs. So we’re looking at the property manager leasing, leasing position, or assistant manager into maintenance plus whatever overheads associated on the financial side are the probably the most significant change condition that we’re working on, came out of this conversation. And I know there was some interest in how do you create certainty that the Housing Authority will always be in this position? Well, what we’re discussing right now is actually taking an ownership interest in the property. So that we can have that long term. Now it may be like what we typically do, and it’s not a significant ownership interest, but it’s enough of an ownership interest to give us some buy in in terms of the transition. And so that’s another piece that we’re trying to figure out right now and have that conversation. On top of that, we need to have some conversations with state no Tim’s trying to talk to the state attorney and get some clarity, because on a couple of issues, but you know, one of the things that that we’ve learned is that the way it goes in is they contract with the housing authority to do the management function, if it were ever to sell, because part of the part of the program is that it’s exempt from property tax. And so for wearing the city side of the hat, that was kind of something that was different for us. If it were ever to sell, and it was to go to a private developer, they don’t maintain that property tax exemption. So immediately, it won’t sell the property tax starts coming out of the city via that mechanism. If it stays in the middle income housing authority, I’m trying to find a way that to negotiate them as long as it’s in the program for housing authority is the manager of the property assuming that we don’t. And assuming where we, we don’t fail to perform. If there’s a failure to perform, we always lose that management. So that seems losing a revenue stream. Correct. But that’s all that’s right. We never forget, we don’t, it’s not that we’re working on in this. And then we’re also talking about a right of first refusal, potentially in it that actually would give us the ability to purchase. And if we did that, I think, again, learning more about the middle income housing authority. Think what Moe and I talked about, we could see it almost working like a re syndication, where we would then go back to the middle income housing authority and say, Hey, we want to buy it and have them help us finance it similar to what we’re doing right now at Village. So that’s an update of where we are, we’re still negotiating on that, but I do need some direction from the housing authority commissioners that if you want me to continue negotiating under some of those principles, interesting direction.

Speaker 2 2:10:03
Oh, head on, if you don’t mind. We haven’t till November 15, we still have the opportunity for the city side to submit a veto door project November 15. So there is one more we’ve got it slated if needed November 14 for city council to consider that on that side. But this is our only opportunity to chat with Jay board about the potential here. So the idea is that what we would try and sort out by that time before that veto deadline is either a letter of intent or a non binding MOU is similar that we did that we did on the Hoover project, just to make sure we are both heading in the right direction. And then anything formal would come out for that. But that is the deliverable. We’re trying to get to ahead of that November 15.

Speaker 4 2:10:51
I’m also talking to the DDA about the potential for them to invest. And I think there was some misunderstandings on certain components about commercial on the ground floor, what we learned is that when you look at what’s on the ground floor, it’s either leasing space or commercial. And then talking to Kimberly, I don’t think she quite understood that nuance. So that was a piece of it. Also looking at the DDA to see if they can invest in some more ground floor commercial. We actually talked about that area between cheese and borders, on the screen in Canada. Now the concept that could potentially come up. So we’re now bringing the BVA into that conversation as well, all of the commercial will be taxable. That’s not tax exempt structure. So that’s the other piece that we’re trying to, to really resolve in this.

Speaker 9 2:11:48
Just on the commercial is across the street. In the Main Street Station. There’s a lot of vacant commercial

Unknown Speaker 2:11:54
space. Yes, the problem?

Speaker 9 2:11:57
Is that because of what, what the per square foot lease cost is that Ryan bear mask equity, whoever’s managing, it actually is charging? Or is it just the state of retail in the morgue, or multi use facilities like that?

Speaker 4 2:12:14
I would say yes. And yes, I think there is a significant part, there’s a part of it that is, is connected to the price per square foot. I think there’s also a part of it in terms of the number of people that live downtown, is also equating to that. And so, you know, putting the city hat on when you look at first the main transit station, and you bring people there that may actually change the commercial profile for all these other places.

Speaker 9 2:12:46
I just think, you know, we talked about, it’s easy to talk about commercial use of the first floor across this. And I, and so then it makes for me, and we’ve had this conversation before. I don’t I’m not clear. If I think about the risk uncertainty matrix that pops up in my own right. I don’t understand what the risks are for the city on one axis. And it’s certainty, then that would be required on on another axis, right? To know where this project falls in terms of that matrix for either the city the housing authority for for the developers, that would be really helpful, right? What is the level of risk? And then what kind of certainty do we need? And, and for them, because, you know, this is they’ve got to succeed, right? Or loose word, Housing Authority authority, the city is going to be

Unknown Speaker 2:13:40
the ones the next meeting in that

Speaker 2 2:13:42
we’re meeting with them every two weeks, until the deadline, we’ll know

Speaker 4 2:13:46
more of that. I just wanted to kind of go over some of the general concepts, but that’s exactly what we’re trying to do with the LOI is to really identify what’s the risk, what’s the reward, and really sit that point where we can come to you all like, okay, we can grab this. And here’s what it looks like. And here’s where we put ourselves.

Speaker 6 2:14:07
So, it gets us a little bit off topic. Because it’s about why the commercial space on Main Street Station is failing, my personal opinion, is that that is where Main Streets stops being a street and starts being this drone. And so the question is, is there anything that we could do to make, you know, to extend the walkability in the of Maine down there because, you know, it’s, it’s just different and but there’s this barrier, a third avenue that you really don’t want to walk back below there. And if we want to improve our investments as well as the city investments, you know, we should be talking to see data out facing ads that section,

Speaker 4 2:15:02
or that’s what the first main transit station. I’ll also say there’s making commercial in different areas downtown. I don’t think this is just a first and main issue. I think it’s what’s the retail market look like? What are the square foot cost? I think it’s a little bit of everything that’s coming in, to kind of to impact that. But I do think when you look at 70, and 80%, ami is coming in, that’s additional people who can bring more revenue in. And we also need to look at the sales tax perspective and model the potential sales tax returns that will get associated with it. So there’s a lot of work to do. I just wanted to give you all an update and say, here’s where we are. We have more time here and the types of things we’re trying to negotiate and we will bring something back to you. Let’s be more specific. So you

Speaker 9 2:15:52
say November 14, we’re canceling. This may be on the November forecast.

Speaker 1 2:16:00
So as somebody who has to wear different hats in the same field, if you will, I would say, with the lhsaa hat on, I think everything that was outlined by the interim director meets lhsaa goals, if you will, whether they meet Council goals, I don’t know yet. Because that needs more, you know, refining, if you will. So in my opinion from the LH a, based on what I’ve heard, from an FHA perspective, I would be in support from this body of that kind of recommendation.

Speaker 6 2:16:47
Well, I was as a council member, I thought it was a good idea. Even without the clarifications for this, I think we should take risks sometimes pursue these goals. So yeah, I support it in this context.

Unknown Speaker 2:17:02
Would you like a formal motion on that?

Unknown Speaker 2:17:04
Or just if you agree with me continuing to negotiate?

Speaker 1 2:17:07
I think consensus has been made. Okay, seeing no other comments, we’ll move on in the agenda to item six, Interim Executive Director report, Id six as the development update.

Speaker 4 2:17:21
We don’t really have one right now because the project is multiple

Speaker 1 2:17:25
loci, you Okay. Moving along to six V update of operations, or six v one Occupancy Report.

Speaker 7 2:17:33
I make a short and sweet night. So currently, we’re seeing about 94% occupied. This is kind of partly in do we have eight units down for meth right now, all in different stages, some are like cleaning, some are rebuilds. We’ve had a few unexpected deaths at Aspen’s and the over properties, so that contributed to a lot of unoccupied units that we were not expected. And good news is the suites are pre leasing pending vacancies already, we’ve gotten to a point with MHP, where we are in such good communication that as they are getting notices from tenants and we are we are being able to pre lease those units and getting people in the queue to move in. So as soon as students are ready, they’re not sitting vacant for months, which is a huge change from where we were a few years ago with MHV. I think this is our content. Molly and I are continuing meeting with their executive directors and their team and then I meet weekly with their on site team. So we’re moving mountains there.

Speaker 1 2:18:39
Okay, well, I guess my condolences to the family of the unexpected deaths that occurred. I assume that we all feel that way. So I guess six b two is property updates.

Speaker 7 2:18:52
Alright. Just a quick few updates. I didn’t type up anything this month. We’ve already discussed the donation side at the suites or getting ready to really get that moving looking for necessities, toiletries for the suites, residents are moving in with nothing household goods along with furniture that will benefit other lhg properties as well when we have people living in under difficult circumstances. at Aspen, senior, we’ve been able to bring an elder share food distribution before they were just getting commodity boxes. Now twice a month elder share is bringing up the trucks with pallets of food and we’re doing on site distributions. And then we just started that we’ve had three distributions now with Thursday being our fourth and older Sharon has allowed us to take the extra items and take them to the sweets so we have an abundance or cases of food. They’ve allowed us to take those to the sweets and repurpose those foods and create a pantry for the sweets residence. The sweets doesn’t get really any food distributions during the winter months. They get leftovers from farmers market and Whole Foods but once the farmer’s market ends, they don’t get any Fresh items they don’t get the ongoing. Tamales, beans, peanut butter, stuff like that. So with eldercare allowing us to take these to the sweets is really benefiting the sweets residents. The first time we filled up the pantry it was empty with in probably three to four hours. And we took over three carloads. So beneath there we started some resident resident engagement activities we’ve had long wants to hear services, peer support, join us at coffee and conversations this month and last month. And we’ve seen an increase just from what I’m hearing from Senior Services of lhg residents attending activities at the Senior Center. We have next slide coming in sustainability and senior center with other activities coming in over the next couple of months. And we are moving forward with rocket Spring Creek Fall River, Aspen Meadows neighborhood and this week.

Speaker 1 2:21:01
No questions on that. So I guess we’ll move on to public health and safety updates.

Speaker 4 2:21:08
There’s really a service out here tonight. I think the big thing we talked about Sarah’s role as part of the city budget and some other things that we’re doing. Sarah’s taking a larger role to actually start working. Or she’s working with Joanie and Zach right now to start working in coordinating not only public safety in the housing authority, the coordinating public safety Housing Authority Rangers, parking control, and any other enforcement hurt that we have in the city so that we can really align across everything we do. So it’s another version of the Center of Excellence. So it’s given us operating in silos and each other and struggling, she’s going to be coordinating. And we all every one of those really kind of in some ways touches the housing authority. So that’s probably the big work that she did, we’re going to do the next couple of months.

Speaker 6 2:22:04
Well, I have a question. And I don’t know whether it’s a commissioner comment or whether it’s under public health and safety. But I guess they’re next to each other. So I could just ask if I was I heart went out to the woman who spoke to us. And you? So the first question that I wanted to ask was, why would the rules change from manager to manager? Or is that a perception she has to she’s just not he doesn’t like change? And maybe maybe, because she didn’t really get to tell us all the grievances, because she repeated herself a lot. So

Speaker 4 2:22:53
so what I did so well. So generally, when we one of the things that identified when we took over as there were times as managers were making their own rules, so they can cut that out as a god. But beyond that, because it involves a tenant, we can’t talk about it in this situation. And so I would be happy to set up some time with you to, to go over the details regarding this particular particular case and other issues.

Speaker 6 2:23:25
Yeah, well, I was really more. You know, I don’t want to know about this particular person that night, they sort of do. But I realized that that’s not an appropriate question to question that I wanted to talk about is why would rules change from manager to manager. And what I’m hearing is, that was a problem, because people would just come in and do what they thought was right and didn’t get trained on proper procedures. And that’s being fixed or hasn’t been fixed.

Speaker 4 2:23:57
We’re doing portfolio wide roles.

Speaker 7 2:24:00
And things are coming from inspections with the fire department that maybe recognize that Aspen senior, but we know we have the same situation at Fall River, Spring Creek, the suite so we are nearing the policy across the portfolio.

Speaker 6 2:24:13
So that’s that kind of stuff. Improvements are going to be perceived as change track.

Speaker 1 2:24:19
So they’re like a block of SOPs at one point. And now, SOPs have been in development.

Speaker 4 2:24:24
And we’re still developing because we don’t have everything we need. But you know, like one thing is people like to open their doors. Well, because it’s a multifamily unit and the way of looking at Interior entry points, those are fire doors, so you can’t open the doors. You can probably leave them open. So we’re like you can’t prop the doors open dormitories. And people get frustrated. And so it could be something as simple as that. It could be as complicated as we need you to get parking permits and to get your parking permit. This is a conversation I’ve added multiple problems Need to get a parking permit, you need to have your car registered. And people don’t have their cars registered. So we’ve said if if you can’t get your, the DMV, if you can’t get your car registered, let us know. So we can connect you to an agency that can help us get your car registered. Nobody’s really contacted us on that. So then they move on street. In areas where you have neighborhoods around it, you know, I’m they assume that it’s a housing authority that’s calling the police. When in reality, it’s probably the neighborhood and or the HOA, and then cars get stolen toe because they’re not registered. And we’ve all seen the comments that we’re getting about unregistered vehicles. So that’s another type of issue that develops. And so it’s property specific, but then it may be portfolio wide. And when we see how my health safety issues, we deal with them in different ways. And all of that comes into play with some of the things that

Speaker 9 2:26:02
we’ve covered the recurring conversation the last few years. And I know we’re I know we’re doing more than this is the number of senior residents who could sit in that chair and describe things similar to what she described in terms of memory issues, and fragility, and sense of hopelessness or loneliness are all the things that kind of roll up into mental health concerns, as we see this population age, and I’m in that cohort, right? I mean, when I go have those experiences right now, but but we’re all aging, right? And it’s I’ve used the term tsunami, and it’s going to hit this municipality and every municipality, and I know we’re trying to get in front of that, are there are there strategies that, that you’re the we’re using, or trying to anticipate using as this population grows of individuals who are having very similar experiences or, or effects of aging?

Speaker 4 2:27:13
Well, I think that’s rooted in the center of excellence is focusing on mental health where we’re bringing them all together, because historically, they operated in pods, but we didn’t look at the whole and how they work with each other to really start grasping. What are we dealing with, and really making sure that all of our departments are communicating with each other? Because, because that’s going to start giving us a sense of the scope of the problem. Because I don’t think we have a really big appreciation or scope. Part of what we’re talking about, as we talked about enabling caring communities. You know, we’ve purchased Salesforce related to next slide, which now we have everybody in the system, how can we utilize Salesforce to maybe help enable that communication to be faster and getting through that? That’s really the goal of, of the Center of Excellence has helped us define the scope of the issue, because, you know, we talked about it earlier with the rotary. It’s an age issue. But you know, what I would say is probably the most common issue is two things. It’s mental health issues and substance abuse. And those are where we look at our properties. Those are across all properties, regardless of age. What you do when you get into age is that it becomes much more of an issue, because then it’s not necessarily independent living the folks need to be in and part of that is the work we’ve tried to do, to figure out is there a way to, to help develop affordable assisted living, we talked to the council nuances council about how that is even more difficult than traditional property development. But that’s not lost on us in terms of whatever we need to tackle next, because I really think that’s probably the more secure long term solution is creating more affordable assisted living, because a lot of the folks that we’re seeing are age restricted units, or people that probably need to be in assisted living, but they can’t afford anything. So they’re having to live in independent living, which is why you see the clinicians and other things and why, much to the chagrin on the city budget side when you know, senior friends at the Senior Center and others are like we don’t have enough resource specialists. This because we were really putting funding into the Social Work side of the senior center to try to start adding capacity from a human standpoint to deal with this issue. Because I would argue when I look at the Senior Center, that’s probably the most significant issue we’re going to be facing over the next five years. And we’re probably going to have to continue to make decisions of what programming or do you fund this because this is about people’s ability to live on a day to day basis state House have food and do those things. And that’s where you’re seeing the alignment between the city and then Housing Authority. Start making a heck of a lot of sense because both are informing each other.

Speaker 1 2:30:13
On the other side is I just wanted to ask real quick does MHP devote many resources, the aging specific issues?

Speaker 4 2:30:24
While story short, you know, we used to partner on the Edge program with an HP that’s actually when we converted into lead and core on the city side because of capacity issues and making sure we have people respond, we wouldn’t have that certainty before. And I think that’s why you see us moving to added permission to so

Speaker 6 2:30:43
I think he is I mean, it’s hard for us, it’s hard for families, right? I mean, they’re,

Speaker 1 2:30:50
they’re stressed out there. And I just wondered if they devoted any time or resources specifically to the age, the aging population specifically? And probably not, but it was just a question because I, I don’t know that much about it. He

Speaker 7 2:31:07
just so I don’t know if you guys are aware that my Housing Authority and the senior center we meet every other month, and we really focus on the seniors aging in place, and where they this resource specialists see a need, or my staff see a need. And we bring in Adult Protective Services and different aging population groups to come educate us and help us identify more resources and how to direct residents. And we really work really closely with our resource specialists at the Walmart Senior Center, as we start seeing a decline in a resident and bringing our housing retention team in to play and it’s we normally have Sarah Arnie’s, there, I’m there Friday Queens there and sit down with the resident in the residence family and start working on the next steps and bringing some of this information to light for the family if they’re not seeing it yet.

Speaker 2 2:31:58
Resident engagement and activities are critical to us, especially exiting the COVID loneliness. So we’re really ever tracking you know, participation rates, and then getting feedback on how people’s you can see it in changes in behavior and changes in mood. And really, at the LHC side, it’s more that micro level you get, especially if someone doesn’t have a lot of family or friends or connections that come into the property manager’s office and spend more time there making connections. And so they hear our staff hears details of people’s lives just to have somebody to talk to so that feeds in just like the the microcosm feeds into the grander picture. So

Speaker 4 2:32:45
well, the other thing is you find partners where you can find them. So on the agreement with the Center for people with disabilities, that billions probably worth 650 We work for them to say we’ll sell it to you for half a million. But you’re gonna sign this contract to provide resources at our facilities to help those individuals that are struggling with disabilities. And so anytime we can find a way to develop that partnership, we’re trying to do it because the city or the Housing Authority is going to be able to tackle this on their own. Which is why I also agreed to talk to the rotary because I think the more we start exposing the community to this, the more people we’re going to get that are going to be willing to come in and assist

Speaker 9 2:33:31
most of the people in the room that already were eligible for assistance and needed. I didn’t say that in my on camera.

Unknown Speaker 2:33:45
There are two right, yeah,

Unknown Speaker 2:33:47
there were actually three was one of those others.

Speaker 1 2:33:51
Are there any other questions or Commissioner comments at this time? Seeing none, I will adjourn this meeting of the October 17. Longwood Housing Authority meeting. Thank you, everybody.

Transcribed by https://otter.ai