Partner Housing Australasia (Building) Incorporated

PARTNER HOUSING AUSTRALASIA (BUILDING) INCORPORATED

MINUTES – BOARD MEETING No 56, 1 August 2016

Opening of Meeting

Venue:Bruce & Ceri Hutchison, 11 Malacoota Road, Northbridge

Time: 1930 (7.30 pm)

Welcome:

Devotion:

Attendance:Rod Johnston (President), Bill Ryan (Vice President), Arthur Gray (Secretary), Susan Faber (Treasurer), Bruce Hutchison, Robyn Johnston, David Kaunitz, Peter Sheldon

Peter Cheers (by Skype), Grant Wood (by Skype)

Invited guests:

Apologies:John Fielder, Julienne McKay

Acceptance of Matters Not Requiring Further Discussion

Moved:W RyanSeconded: D KaunitzCarried

Motion

The following motions 1 to 7 are agreed and shall be adopted and implemented.

Confirmation and Amendment of Agenda

Motion

The agenda as distributed and amended shall be accepted, with the following additional items:

Item 12 - Recommendations for the sale of properties at Tahmoor;

Chad Roberts & Krystle Beaver – Option 3 ($ 15,000 additional mortgage, $ 700 per fortnight

Wayne Marcheff & Sharon Harris – Option 2 ($ 20,000 additional mortgage, $ 800 per fortnight

Item 15 - Allocation of responsibilities - Grant Wood, Rod Johnston, Ian Volke and changes to banking. Amended procedures for Solomon Islands Projects.
Item 17 - Accept resignation of Julienne McKay as a Director and Member of the PHAB Board
Item 18 – New bank account for payments to Solomon Islands within the approved budget.

Confirmation of Minutes of Last Meeting

Motion

The previous Minutes of Meeting, as distributed, shall be accepted.

Next PHAB Board and AGM Meetings

Motion

Subject to confirmation closer to the particular dates, the PHA Board meetings and AGM shall be on the following dates:

Board 2016-4 Monday, 5 December 2016
AGM 2016Monday, 5 December 2016

Nurture Report

Tony & Karina Jensen
Payment Due / Payments Made / Payments Due / Cumulative Due / Payments Made / Cumulative Payments / Still Owing After Payment / Advance or Arrears / Credit Fortnights
8/04/2016 / 8/04/2016 / $442.25 / $123,531 / $445.00 / $124,135 / $93,665 / $604 / 1.4
22/04/2016 / 22/04/2016 / $442.25 / $123,973 / $445.00 / $124,580 / $93,220 / $607 / 1.4
6/05/2016 / 6/05/2016 / $442.25 / $124,416 / $445.00 / $125,025 / $92,775 / $609 / 1.4
20/05/2016 / $442.25 / $124,858 / $125,025 / $92,775 / $167 / 0.4
3/06/2016 / 3/06/2016 / $442.25 / $125,300 / $575.00 / $125,600 / $92,200 / $300 / 0.7
17/06/2016 / 17/06/2016 / $442.25 / $125,742 / $445.00 / $126,045 / $91,755 / $303 / 0.7
David & Faye Galbraith
Payment Due / Payments Made / Payments Due / Cumulative Due / Payments Made / Cumulative Payments / Still Owing After Payment / Advance or Arrears / Credit
Fortnights
21/04/2016 / 20/04/2016 / $487.43 / $131,364 / $550.00 / $138,064 / $101,936 / $6,700 / 13.7
5/05/2016 / 4/05/2016 / $487.43 / $131,851 / $550.00 / $138,614 / $101,386 / $6,763 / 13.9
19/05/2016 / 18/05/2016 / $487.43 / $132,339 / $550.00 / $139,164 / $100,836 / $6,825 / 14.0
2/06/2016 / 1/06/2016 / $487.43 / $132,826 / $550.00 / $139,714 / $100,286 / $6,888 / 14.1
16/06/2016 / 15/06/2016 / $487.43 / $133,314 / $550.00 / $140,264 / $99,736 / $6,950 / 14.3
30/06/2016 / 29/06/2016 / $487.43 / $133,801 / $550.00 / $140,814 / $99,186 / $7,013 / 14.4
Na Sua
Payment Due / Payments Made / Payments Due / Cumulative Due / Payments Made / Cumulative Payments / Still Owing After Payment / Advance or Arrears / Credit Fortnights
21/04/2016 / $497.57 / $109,069 / $112,515 / $154,635 / $3,446 / 6.9
5/05/2016 / $497.57 / $109,567 / $112,515 / $154,635 / $2,948 / 5.9
19/05/2016 / 16/05/2016 / $497.57 / $110,064 / $600.00 / $113,115 / $154,035 / $3,051 / 6.1
2/06/2016 / $497.57 / $110,562 / $113,115 / $154,035 / $2,553 / 5.1
16/06/2016 / $497.57 / $111,060 / $113,115 / $154,035 / $2,055 / 4.1
30/06/2016 / $497.57 / $111,557 / $113,115 / $154,035 / $1,558 / 3.1
Leonie Gainge
Payment Due / Payments Made / Payments Due / Cumulative Due / Payments Made / Cumulative Payments / Still Owing After Payment / Advance or Arrears
19/05/2016 / 20/05/2016 / $180.00 / $115,360 / $200.00 / $115,700 / $25,050 / $340 / 1.9
26/05/2016 / 27/05/2016 / $180.00 / $115,540 / $200.00 / $115,900 / $24,850 / $360 / 2.0
2/06/2016 / 3/06/2016 / $180.00 / $115,720 / $200.00 / $116,100 / $24,650 / $380 / 2.1
9/06/2016 / 10/06/2016 / $180.00 / $115,900 / $200.00 / $116,300 / $24,450 / $400 / 2.2
16/06/2016 / 17/06/2016 / $180.00 / $116,080 / $200.00 / $116,500 / $24,250 / $420 / 2.3
23/06/2016 / 24/06/2016 / $180.00 / $116,260 / $200.00 / $116,700 / $24,050 / $440 / 2.4
Yvette Olsen
Payment Due / Payments Made / Payments Due / Cumulative Due / Payments Made / Cumulative Payments / Still Owing After Payment / Advance or Arrears
19/05/2016 / 20/05/2016 / $188.00 / $74,901 / $188.00 / $75,633 / $158,867 / $732 / 3.9
26/05/2016 / 27/05/2016 / $188.00 / $75,089 / $188.00 / $75,821 / $158,679 / $732 / 3.9
2/06/2016 / 3/06/2016 / $188.00 / $75,277 / $188.00 / $76,009 / $158,491 / $732 / 3.9
9/06/2016 / 10/06/2016 / $188.00 / $75,465 / $188.00 / $76,197 / $158,303 / $732 / 3.9
16/06/2016 / 17/06/2016 / $188.00 / $75,653 / $188.00 / $76,385 / $158,115 / $732 / 3.9
23/06/2016 / 24/06/2016 / $188.00 / $75,841 / $188.00 / $76,573 / $157,927 / $732 / 3.9
Krystle Beaver & Chad Roberts
Payment Due / Payments Made / Payments Due / Cumulative Due / Payments Made / Cumulative Payments / Still Owing After Payment / Advance or Arrears
23/05/2016 / 24/05/2016 / $300.00 / $38,300 / $300.00 / $38,300 / $261,700 / $- / 0.0
30/05/2016 / 30/05/2016 / $300.00 / $38,600 / $300.00 / $38,600 / $261,400 / $- / 0.0
6/06/2016 / 6/06/2016 / $300.00 / $38,900 / $300.00 / $38,900 / $261,100 / $- / 0.0
13/06/2016 / 13/06/2016 / $300.00 / $39,200 / $300.00 / $39,200 / $260,800 / $- / 0.0
20/06/2016 / 20/06/2016 / $300.00 / $39,500 / $300.00 / $39,500 / $260,500 / $- / 0.0
27/06/2016 / 27/06/2016 / $300.00 / $39,800 / $300.00 / $39,800 / $260,200 / $- / 0.0
Sharon Harris & Wayne Marcheff
Payment Due / Payments Made / Payments Due / Cumulative Due / Payments Made / Cumulative Payments / Still Owing After Payment / Advance or Arrears
25/05/2016 / 26/05/2016 / $300.00 / $17,900 / $300.00 / $17,900 / $282,100 / $- / 0.0
1/06/2016 / 2/06/2016 / $300.00 / $18,200 / $300.00 / $18,200 / $281,800 / $- / 0.0
8/06/2016 / 9/06/2016 / $300.00 / $18,500 / $300.00 / $18,500 / $281,500 / $- / 0.0
15/06/2016 / 17/06/2016 / $300.00 / $18,800 / $300.00 / $18,800 / $281,200 / $- / 0.0
22/06/2016 / 23/06/2016 / $300.00 / $19,100 / $300.00 / $19,100 / $280,900 / $- / 0.0
29/06/2016 / 30/06/2016 / $300.00 / $19,400 / $300.00 / $19,400 / $280,600 / $- / 0.0

Motion

PHAB accepts the Nurture Report, and requests the Secretary initiate action to ensure that Na Sua maintains regular payments and returns to a credit situation.

Operations Report

Background

A report on the current operations is attached to this document.

There are no significant issues requiring Board resolution, apart from acceptance of the revised Financial Plan shown below, which brings forward the proposed Fiji project. This does not cause any unforseen cash shortages.

Motion

PHAB notes and accepts the Operations Report

PHAB notes and accepts theFinancial Plan attached to this document

Tahmoor – Owners Corporation

Background

PHAB is required to establish an Owners Corporation for the two properties at Tahmoor, and to obtain insurance cover of the properties in the name of the newly established Owners Corporation.

Previous Motion

PHAB resolves that Robyn Johnston carry out the following:

Purchase a DIY Owners Corporation Kit from O’Connor;
Establish an Owners Corporation for the two properties at Tahmoor;
Obtain insurance cover of the properties in the name of the newly established Owners Corporation;
On completion of the two sales and establishment of the two mortgages, arrange the transfer of the Owners Corporation to the new owners and ensure representation of PHAB as a party with an interest;
Conduct the first AGM of the new Owners Corporation as Chairman.

PHAB resolves that Peter Sheldon be Secretary:

The first three actions have been carried out, but the last two cannot yet be undertaken because the sales are currently delayed.

Motion

PHAB notes the progress and thanks Robyn Johnston, Peter Sheldon and Arthur Gray for their work to date.

Quarterly Report

Background

The Treasurer shall report to the Board, four times per year (December, February, April, July) Income and Expenditure for approval, Estimated balance sheet for information, Mortgage arrears; and in December: Audited Annual Accounts

Quarter to be reportedMonth of PHAB Board Meeting

1st Quarter (July – September)December

2nd Quarter (October – December)February

3rd Quarter (January – March)April

4th Quarter (April – June)July

Annual Accounts (July – July) December AGM

Relevant information necessary for the Audit shall be presented early in July. Audit shall be complete by early November, for presentation to the December Board Meeting and December AGM.

Moved: S FaberSeconded: A GrayCarried

Motion

PHAB accepts and approves the Treasurer’s Report including the Income and Expenditure noted therein.

Livingstone School Women’s Refuge

Background

From: Ian Cochrane [mailto:
Sent: Wednesday, 11 May 2016 13:25
To: Rod Johnston
Subject: Partner Housing donations to Livingstone School Bangladesh

Dear Rod,

I want to recognise the five generous donations from Partner Housing:

03/09/2013$9500 [$5000 for the Women’s Refuge, $4500 for school classrooms];

23/03/2014$6000 [$5000 from David Gold, $1000 from Partner Housing, both for the Women’s Refuge];

06/08/2014$1100 [$1000 from Susan Faber, $100 from yourself, both for the Women’s Refuge];

28/03/2015$2000 [from Susan Faber for the Women’s Refuge]; and

29/06/2015$1000 [also from Susan for the Women’s Refuge].

As the Women’s Refuge closed long before its time, in keeping with the contract made with and signed by the Headmaster Bimal Roy and his wife Parul, as well as my wife Jill and I, I have contacted Susan concerning the possible return of her money. I will contact David Gold in the coming week.

My purpose in emailing you is to enable you and the Partner Housing Board to decide if you would like me to return the whole or part of the $6000 donated by Partner Housing [$5000 on 03/09/13 and $1000 on 23/03/14]. Alternatively, you and the Board may choose to allow that money to become part of the teachers’ salary fund. I am more than willing to accept whatever decision that you make at your next Board Meeting on July 2nd this year.

I really appreciate that we can resolve any money issues with the complete absence of any malice or bad feeling. How I wish that all issues involving money between individuals or organisations could be dealt with in this way.

Warm regards,

Ian.

Dr Ian Cochrane

Patron and Board Chairman

Livingstone School Bangladesh.

Moved: S FaberSeconded: A GrayCarried

Motion

PHAB acknowledges the advice from Ian Cochrane, Chairman of the Livingstone School Board (Bangladesh) that:

The Livingstone School Women’s Refuge is no longer operating as such,
Partner Housing donated AUD $ 19,600 for its construction (AUD $ 10,500 from Partner Housing Funds and AUD $ 9,100 on behalf of three donors),
The Livingstone School board is undertaking to retrieve a significant proportion of money expended on the Women’s Refuge Construction; and
The Livingstone School Board has offered to “….return the whole or part of the $6000 donated by Partner Housing …..[ or] ….. allow that money to become part of the teachers’ salary fund”

PHAB resolves that the funds retrieved be used to supplement teachers' salaries at Livingstone School (subject to agreement by the other donors who donated specifically for the construction of the Women’s Refuge.)

Annual Accounts

Background

The PHAB Annual Accounts for financial year ending 30 June 2016 are presented for acceptance by the Board and for auditing.

Moved: S FaberSeconded: W RyanCarried

Motion

PHAB accepts the 2016 Annual Accounts (as summarised below) as tabled in detail, authorises the Treasurer and President to sign them on behalf of the Board, and to present them to the Honorary Auditor.

PHAB authorises the engagement of an Auditor, preferable on a pro-bono basis, but on a paid basis if this is not possible.

Annual Report

Background

The draft 2016 Annual Report has been tabled separately.

Moved: Rod JohnstonSeconded: B HutchisonCarried

Motion

PHAB accepts the 2016 Annual Report as presented, and approves its presentation to the AGM, subject to amending the letterhead.

Tahmoor – Sales Contacts and Owners Mortgages

Background

The Sales Contracts and Mortgages for the two properties at Tahmoor prepared by Goldrick Farrell Mullan Lawyers, in accordance with the previous PHAB resolution of PHAB Board Meeting 53 2015-4 (14/12/15) , are tabled separately. Amendments as set out below are required.

Previous Motion

PHAB resolves to execute the sales and mortgages of the two properties at Tahmoor as prepared by Goldrick Farrell Mullan Lawyers and amended below.

Required Amendment / Sales Contracts for Krystal Beaver & Chad Roberts / Sales Contracts for Sharon Harris & Wayne Marcheff
Settlement Date / 1 July 2016 / 1 July 2016
Deposit / $ 39,800 / $ 19,100
Balance / $ 260,200 / $ 280,900
Right of way and common property / Specify right of way and common property? / Specify right of way and common property?
Vacant Possession / Yes / Yes
Subject to existing tenancies / No / No
House / Yes / Yes
Garage / No / No
Carport / Yes / Yes
Home unit / No / No
Car space / No / No
None / No / No
Other / No / No
Documents in the list of documents as marked or as numbered / GFM to determine / GFM to determine
Other documents / GFM to determine / GFM to determine
Blinds / No / No
Curtains / No / No
Insect screens / Yes / Yes
Stove / Yes / Yes
Built in wardrobes / Yes / Yes
Dishwasher / No / No
Light fittings / No / No
Pool equipment / No / No
Clothes line / Yes / Yes
Fixed floor coverings / Yes / Yes
Range hood / Yes / Yes
TV antenna / No / No
Other / Nil / Nil
Exclusions / Nil / Nil
Schedule on page 2 / To be completed by GFM / To be completed by GFM
Strata Pans / Should be the most recent showing SP 87569 / Should be the most recent showing SP 87569
Required Amendment / Mortgage for Krystal Beaver & Chad Roberts / Mortgage for Sharon Harris & Wayne Marcheff
Mortgage Annexure A Point 2) / The numbering “a.” is confusing. The “a.” should be deleted, or (preferably) renumbered as 3) and the rest of the numbering advanced by one. / The numbering “a.” is confusing. The “a.” should be deleted, or (preferably) renumbered as 3) and the rest of the numbering advanced by one.
Schedule One, Point 1) insert … / 16.6 years / 18.0 years

The Problem

The families purchasing the properties at Tahmoor have delayed the purchases, indicating:

(a)misgivings concerning aspects of the Mortgage Contract (specifically the sharing of windfall profit in the event of early sale and discharge of the mortgage); and

(b)financial difficulties related to stamp duty and failure to get the First Home Owners Grant.

Rod Johnston met with David Alexander (of Goldrick, Farrell, Mulan) to discuss Partner Housing's legal responsibilities and the options for moving forward. Please refer to the advice below.

Meeting with the Families

A meeting was conducted Sunday 17 July 2016, to be attended by the with the two families purchasing the properties at Tahmoor (Chad Roberts & Krystle Beaver and Wayne Marcheff & Sharon Harris), Cynthia White, Peter Sheldon, Robyn Johnston and Rod Johnston.

The two letters (following) will be tabled and discussed at the meeting, with a view to determining whether Option 2 is acceptable to either or both of the families.

Proposals

Wayne Marcheff & Sharon Harris have accepted Option 2 (Option 3 was not available during discussions). Extend the mortgage by $ 20,000, increase repayments to $ 400 per week ($ 800 per fortnight) leading to a completion in 14.2 years.
Chad Roberts & Krystle Beaver have rejected Option 2 and Proposed Option 3. Extend the mortgage by $ 15,000, increase repayments to $ 350 per week ($ 700 per fortnight) leading to a completion in 14.9 years.

Discussion

PHAB has a moral obligation to honour its commitment to Partner Housing Charity (and hence to the two families) to proceed with sales at $ 300,000 and provide interest-free mortgages over a long term.
The differences between what is currently owed by the families arise because Chad and Krystle have been in their home longer.
In the context of PHAB's overall overseas program, both Option 2 and Option 3 are preferable to Option 1 in the sense that they bring the mortgages to conclusion earlier. Option 2 is slightly more preferable to Option 3.
Although both couples claim difficulties in making repayments, Chad and Krystle are more persistent in making this point…. hence their Proposal 3.
At first sight, Option 3 may appear to be more generous than Option 2 (because the regular repayments are lower), but Option 2 has the advantage of a $ 5,000 larger interest-free mortgage, albeit over a shorter period. Therefore questions of inequity between our arrangements with the families are not simple to analyse.

Moved: P SheldonSeconded: Robyn JohnstonCarried

Motion

PHAB confirms that it wishes to honour its previous undertaking to Partner Housing Charity and to the two families at 82 and 82A Castlereagh Street Tahmoor, provided:

the sale values of each property are not less than $ 300,000;
settlement is achieved by 14 September 2016;
the mortgages are both equable and consistent with the principles established in previous similar mortgages (i.e. the general conditions in the current draft mortgage including sharing windfall profit in the event of early sale and discharge of the mortgage and discharge in as short a period as practical).

PHAB resolves to execute sales contracts for the two properties at 82 and 82A Castlereagh Street, Tahmoor as resolved at the PHAB Board Meeting No 55 of 4 April 2016.

PHAB resolves to modify the mortgages for the two properties at 82 and 82A Castlereagh Street, Tahmoor as set out below.

Sale price $ 300,000.
Mortgage is interest free.
The mortgage value is the sale price less deposits made to 30 June 2016 less further 11 x $ 300 deposits made to the date of settlement (proposed for 14 September 2016) plus an additional amount for Stamp Duty, Legal Costs and Valuation ($ 15,000 for Chad Roberts and Krystle Beaver and $ 20,000 for Wayne Marcheff and Sharon Harris).
From settlement, the repayment rates shall be increased to:

$ 700 per fortnight ($ 350 per week) for Chad Roberts and Krystle Beaver;
$ 800 per fortnight ($ 400 per week) for Wayne Marcheff and Sharon Harris.

This will mean that the mortgage will be discharged within 14.9 years (Chad Roberts & Krystle Beaver) and 14.2 years (Wayne Marcheff & Sharon Harris) from 14 September 2016.

Chad Roberts & Krystle Beaver

Wayne Marcheff & Sharon Harris

The 3 year restriction on reselling (previously discussed) is removed.
The Schedule 2 (Part B), as set out in Option 1, will be included, whereby any windfall profit resulting from sale of the property within a 10 year period from the date of occupation (not settlement) is shared on a sliding scale, commencing at 50% and diminishing to zero at 10 years.
Mortgage repayments shall change to fortnightly direct bank debits from settlement.

Correspondence

From: Wendy Jacques [mailto: [David Alexander]
Sent: Tuesday, 5 July 2016 13:38
To: 'Rod Johnston'
Cc: Property
Subject: Sale or Properties Tahmoor, Mortgages, Stamp Duty and Related Matters

Dear Rod

I refer to your consultation with me yesterday when we discussed at some length the various difficulties associated with these transactions. I confirm my advice as follows:

1. Stamp Duty is payable on the value of the property or the sale price whichever is higher. The Stamp Duty is payable by the Purchaser and based on your estimate of $430,000.00 for each property. The Stamp Duty will be $14,840.00 and may vary depending on the valuation obtained. Please note that we will need a valuation for each property by a registered valuer who is registered with the Land Titles Office.

2. There is no Stamp Duty on Mortgages.

3. It would appear that neither of the Purchasers have the funds to fund the purchase and associated costs and it seems that matters will not proceed unless some arrangements are made to provide the funds to them for the purpose of the Stamp Duty and any associated costs. I anticipate that they will be obliged to pay both Stamp Duty and their legal costs and I note that there has already been an email from their Conveyancer to them requesting that they resolve these outstanding matters.

As advised, Contracts have not yet been exchanged and accordingly no legal obligation has arisen and at this stage there has not been a sale of the properties. The occupation by the proposed Purchasers is a matter for debate as they are clearly residing in the property but not paying rental and are presently making contributions towards their proposed deposit.

It seems to me following from our discussions and the variations discussed that the best option would be the following:

1. Contracts be exchanged forthwith for the sale of the properties.

2. That the terms of the Mortgages be resolved on the following basis:

(a) The amount of the Mortgage to be sufficient to make payment of the purchase price including Stamp Duty and associated legal costs.

(b) That the term of the loan be reduced to possibly fifteen (15) years.

(c) That the restrictions on the resale of the property be removed. I note your advice that it would probably be beneficial for you if the property was sold early as this would release the amount of the Mortgage. I note that you are to have discussions with the proposed Purchasers to negotiate these terms which will include a basis for sharing any opportunity profits made should the properties be sold within a limited period of time. Please note that the Mortgages should also include an obligation by the Purchasers to reside in the property and that the Mortgage is repayable upon them vacating the property.

I look forward to hearing from you once you have had an opportunity of resolving these outstanding issues with the Purchasers and once your Board has made a decision concerning the matters set out above.