HADCO

Board Meeting Minutes

& Annual Plan Public Hearing

For

JANUARY 7, 2016

PLACE: Myers Center

TIME: 12:31pm

ATTENDEES: Arthur Perry,Mike Baker, Jerry Griese, Jeff Cooley,Janeal Kohler and Jamie Ambrosini.

READING & APPROVAL OF MEETING MINUTES:Board Meeting November 17, 2015. Commissioner Griese motioned to approvethe minutes.CommissionerBakerseconded. No discussion. A vote was taken.All commissioners voted yes. Motion passed.

REPORT OF THE SECRETARY:

Mrs. Kohler gave an update on the Ford Family Foundation Grant that was submitted this fall and we were expecting to hear something by December. The Ford Family Foundation has contacted us and said they will be in touch in Januaryregarding a decision on that grant proposal. HADCO requested $245,000.00for the proposed administrative building. This falls within the Ford Family Foundation RuralCapital Grants.

Mrs. Kohler gave an update on the Homeless Solutions Meetings. This is a group of community agencies, businesses and individuals meeting regularly to discuss the homeless need, setting goals and streamlining them as to what is to be addressed. This group is at a point to ask for official support and sponsorshipof their work. This sponsorship is not necessarilyimplying any financial commitment or program changes. It just shows people in the Roseburg area that they have the community support needed to reach their goals. Homeless Solutions goals are broken down into five components; crime, restoration, justice, dealing with inappropriate behavior down town and sanitation. The overall goal is housing homeless and transient persons in Roseburg to have access to safe and affordable housing and resources available to them to be successful to remain in that housing. Partnerships with places like HADCO, UCAN, Neighborworks Umpqua, Community Health Alliance, & ADAPT to ensure if we are housing hard to house individuals that the needed services are available and engaged to help them be successful in maintaining their housing ensuring there is not damage to property and giving them the tools they need to advance to permanent housing or self sufficiency.Another goal is about information and understanding, educating the public about homelessness and get away from stereo typing homelessness and reducing NIMBYism. Trying to create an environment in Roseburg that is going to be conducive for everybody.

These meetings have been happening and Mrs. Kohler just wanted to update the board and open it up for discussion for what the board thinks about this particular topic and is not sure if it needs a board resolution to say HADCO is going to support and is sponsoringthis or if the board wants to put this on the agenda for next month’s board meeting.

Public Comment: County CommissionerChris Boice: stated that he had asked Mrs. Kohler to get involved with that group and appreciated the update. County Commissioner Boice stated his concern is what step in the process is HADCO in the housing homeless process and if not first step what step are they.

HADCO Board Commissioner Baker asked County Commissioner Boice whatthe structure of the group is. Is it backed by an agency or individuals?County Commissioner Boice stated that the group has a good representation of different groups discussing options and solutions but it is still exploratory and that there is not yet a particular backing agency or organization

Mrs. Kohler summarized that these conversations have been happening for years with ebb and flow. This is kind ofrejuvenation on the topic and she feels good about everyone working on solutions and she will keep the board up-to-date.

Mrs. Kohler reported that there is no financial abnormality to report on the financial reports included in the board packets. Mrs. Kohler would like to point out in the DMPM financial statements that Blue Ridge is now in the black after a long time of struggles and she is really proud of that property.

BILLS & BOARD COMMUNICATION: None

REPORT OF THE COMMISSIONERS:None

PUBLIC COMMENT ON BUSINESS ITEMS: None

UNFINISHED BUSINESS:

Resolution #2054-Approval of Vine Street Refinance Mrs. Kohler stated that she did not bring actual resolution as she wantsto have some discussions. There is a summaryin the board packet. Please note at the bottom a correction of the balance to HUD as of December 2015 should be $288,939.00 not $28,000.00. This balance in about five months will be about $346,000.00. Commissioner Baker asked why this money was owed back? Mrs. Kohler explained in 2008-2010 the prior administration used restricted funds from Low Rent Public Housing and the Section 8 program to pay payroll expenses for our Multifamily properties which is prohibited.

Mrs. Kohler reports that we have two choices:

  1. A HUD assured or USDA assured loanwith excessive fees that were noted at the last meeting of around 3.5 % additional fees. It is a fixed rate long term - 30 year loan.
  1. A conventional commercial property loan. Mrs. Kohler has been talking to local vendors Umpqua Bank and Wells Fargo appear to be able to work with what HADCO needs. It is not set in stone yet but sounds preliminarily like yes that they can refinance this property. Their standard procedure from a conventional commercialproperty Loan perspective is a 10 year loan based on the payments being 20 – 25 years fixed rate as far as the payment. If we combine the Vine Street Apartments loans into one loan. With the Interest rate savings the monthly payments would come down about $3,000.00. We would have to look at refinancing in another 10 years. In multiple conversations Mrs. Kohler has come to the understanding that this is not uncommon and has become the standard practice.

Commissioner Griese asked of the two, Umpqua or Wells Fargo what Mrs. Koehler’s feeling is.Mrs. Kohler states; Umpqua seems a little nervous, they haven’t been as concrete and it feels like they are 85% sure they can do something for us. Wells Fargo is, yes we can, we just need to hammer out the details. They have both given Mrs. Kohler the summaries of what it would look like.

Mrs. Koehler’s question to the board is, do you wantfinal numbers to make a decision or does Mrs. Koehler have the authorization to move forward with Wells Fargo or Umpqua Bank on a conventional loan as opposed to the HUD assured loan negotiating the best deal possible.

Commissioner Cooley suggests that the board see the final numbersand if that requires an extra board meeting sooner than the February meeting that they call for a special meeting on this.

Commissioner Griese proposed to get away from the federal loan option and get final proposals from Wells Fargo and Umpqua bank, then hold a special short meeting to go over that.

NEW BUSINESS:

Resolution #2056- Approval of Section 8 Fair Market Rents to110 %

Mrs. Kohler reported the current proposed Fair Market Rent is less than our current Fair Market Rents. HADCO recommends increasing to 110% which would keep our Fair Market Rents within a few dollars of what the current rents are. Commissioner Cooley wanted to confirm that this is beneficial to participants and not be a major financial hardship for HADCO. Mrs. Ambrosini confirmed that this will help participants be able to better access the local rental market with Section 8 assistance. Commissioner Griesemade a motion to pass resolution #2056. Commissioner Baker Second.No discussion. A vote was taken. All commissioners voted yes. Motion passed.

Resolution #2057- Approval to procure architect for the Administrative Building Project.

Mrs. Kohler reported that the Administration building project was in her briefing to the board a couple months in the past and is part of what was submitted in the Ford Family Foundation Grant proposal. Regardless weather we get the grant or not we have reached the point that we need to do something different with our space for staff. There are several pros to move forward with at least this step. This will get us schematics, costs of site prep and more solid idea of costs. There has been some talk about HUD recapturing reservesand have done this with large and medium sized Housing Authorities. HADCO is considered a small Housing Authority and could be soon in line for possible recapture.Most Housing Authorities don’t have as high of percentage of reserves that we have in administrative reserves. Reserves pre 2004 havefewer restrictions to it than that after 2004. From a planning perspective Mrs. Kohler is asking the board to consider going ahead and moving forward with designing and getting a better picture of what this is going to look like and then discussing if we don’t get the Ford Family Grant are we willing to look at our budget options as far as filling in that last bit of funding needs.

Commissioner Baker asked about non HADCO owned property and exploring existing buildings. What is out there that is vacant right now.Commissioner Cooley agreed to explore all of our options.

Mrs.Kohler reported that she and other staff have looked at several local buildings and long term lease or short term lease options and planning to build later. There was not much there and all that were looked into wouldrequire major remodel.Administrative reserve funds will cover almost all of the proposed new build on HADCO owned land.

Commissioner Griese talked about how hard it is to find something that fits our specific needs.When we have property and can build to suit vs. refurbishing to suit our needs it ends up being quite expensive and then you have a landlord who we would have to negotiate costs and rent or lease with.

Commissioner Cooley talked about not being able to expand services because there is not the room for staff to provide more or better services. Commissioner Cooley prefers buying or leasing.

Mrs. Kohler mentioned one of the other issues that we have when looking at other building sites and options is the need for a large meeting room for trainings and Section 8 Briefings that we have access to here at the Myer Center. Also concerns with serving clients with things like disability parking andmeeting rooms that are accessible,secure and confidential.

Mrs. Ambrosini reminded everyone that this is not a new topic or subject. We have been out of space for years but due to transitions in Executive directors previous boards have not wanted to move forward without a permanent HADCO Director which we have now with Mrs. Kohler. Mrs. Ambrosini stated she is very concernedthat HUD started talking ten years ago about recapturing our Budget Authority. They did a few years ago take those funds and put HADCO in a terrible budget crisis.Mrs. Ambrosini stated that for Mrs. Kohler to be as active as she is and represent our Housing Authority at all these meetings and start hearing that these things are probable and to tell the board that we have an exceptionally high administrative reserve that this is a serious concern for HADCO and the boards have worked hard to save for years to build or expand and to have the probability of HUD recapturing the reserve and loosing that savings would be more than disappointing. We have recognized a need. We could hire another staff person for Section 8, work towards the homeless concern in Douglas County, there are other programs that we could apply for vouchers for but we are absolutely out of room for an additional staff person. Commissioner Perry stated he thinks it is a better idea to build on our land rather than buy at a different location or lease.

Commissioner Griese motioned to approve Resolution #2057. Commissioner Perry Second.No discussion. A vote was taken. All commissioners voted yes. Motion passed.

Public Hearing- Annual Plan

Resolution #2058-Approval of Annual Plan

Mrs. Kohler explained that the Annual Plan consists of two pieces;a standard HUD form that asks key elements to the Housing Authority goals, capital needs for Public Housing and overall goals for Section8 and Public Housing programs. HUD requires the Housing Authority reach out to residents of both the Public Housing and Section 8 Programs to establish a Resident Advisory Board (RAB). The RAB’s role is to work with the Housing Authority on the Annual Plan. HADCO has been very fortunate to have an educated involved the RAB the last few years that have been working well with staff to bring forth their comments and suggestions. Through the fall the RAB and HADCO have worked together to review the annual plan and have provided some comments that are included in the Board packets on the Annual Plan and some other thoughts that the RAB will address here in a few minutes. The proposed changes are to the Public Housing occupancy policy. Mrs. Kohler has provided copies. These proposed changes are clarifications that the RAB and the HADCO staff have worked together and agreed on. The Housing Authority is supportive of these changes.

Mrs. Kohler reported that the RAB had somecomments that are on the yellow paper in the Board packet. These were put out for the 45 day comment period along with the Annual Plan. There were no additional comments collected from the 45 day comment period.

Mrs. Kohler reported that the comments are primarily pertaining to the budgets that are also in the packets.

Mrs. Kohler explained that every year through the Annual Plan process we are granted a Capital Fund grant which is basically for the capital needs of our Public Housing only. We also submit a Public Housing grant for just our operations. These numbers that are on the needs assessments in the five year plan are specifically from what would be budgeted from the capital Fund. Mrs. Kohler is very pleased to report that HADCO has been a standard performer for several years now and this year we recaptured our High Performers Status which means we are expecting to receive additional money for our Capital Fund thou we don’t know what that number looks like yet. These Capital Funds are for all Public Housing sites and is a prioritization process and part of the Five Year Plan. We have been completing the siding project which incorporates, siding, moving electric boxes, some windows and water line updates. We have nine buildings to go to have the entire Roseburg complex done. It has been budgeted in over the next couple of years to finish. We have to budget other needs at the same time throughout the years. We have to revise this each year as we never know what the Capital Fund grant will be.

Mrs.Kohler explained that once the Five Year Plan has been approved we have the discretion to move those projects around as long as the project is in the approved Five Year Plan without having to get additional approval. We usually stick to it, but if we have to cut something this year because we receive less than expected we might put it on next years list and try to stay with that structure.Mrs. Kohler noted that on the RAB comments you will see some things that have been listed for several years that have not been addressed due to the prioritization of needs for all units at all sites.

Public Hearing Public Comment: Joy Mayorgarepresentative for the RAB: Ms. Mayorga explained that patio covers and clothes lines may sound like a luxury item but a patio cover would expand livable usable space especially for inclementweather having a place for children and families, making living in a small space easier and better. The clothes lines are important because not everyone has a dryer,transportation or money for laundry mat. Ms. Mayorga and RAB were in question about loans and the previously mismanaged funds from Public Housing. RAB was informed back when that was discovered a large portion of the funds that were mismanaged came from the capital funds.Mrs. Kohler reassured Ms. Mayorga that HUD holds the Capital funds tight and we have to request specific draws for all projects to access Capital Funds. The previously mismanaged funds have been paid back and none of those funds were from the capital fund.

Ms. Mayorga stated the RAB’s concern about the heaters not keeping units warm. Mrs. Kohler assured we were moving forward on heater replacements.Mrs. Kohlar asked what is the most important item to the RAB. Ms. Mayorga stated the need for efficient heaters for Roseburg.

Commissioner Cooley referring to the budget spreadsheet suggested for the units in the budget for new siding to be spread out over 3 years and moving the heaters up to the 2016 plan.

Commissioner Griese asked what kinds of heaters are being installed. Mrs. Kohler reported we are going to forced air, getting away from wall heaters. Commissioner Baker agrees with Commissioner Cooley in moving heaters up on the list for 2016 budget.