Regular Meeting of the Hot Springs Housing and Redevelopment Commission of Hot Springs

JOINT MEETING OF THE HOT SPRINGS AND FALL RIVER HOUSING COMMISSIONS

Wednesday, October 18, 2017

CALL TO ORDER

Chairman Mark Crossman called the meeting to order at 1:30PM.

ROLL CALL

Members answering roll call wereLinda Cobb,Mark Crossman,Jim Stevens, Terry Slagel, and Mike McNeill. Connie Gerard absent and unexcused.

OTHERS PRESENT

Greg Foust andCaroline Standen.

AGENDA

Jim moved to accept the agenda as written. Linda seconded the motion. Greg added “Labor Costs” under new business. With this addition, the agenda stands approved as written.

SECRETARY’S REPORT

Linda moved to accept the minutes from the September 20, 2017 Joint Housing Commission meeting. Jim seconded the motion. No discussion. Unanimous.

FINANCIAL REPORT

Linda moved to approve the financial reports from August and September, 2017. Mike seconded the motion. No discussion. Unanimous.

COMMUNICATIONS:

None

EXECUTIVE DIRECTOR’S REPORT

Occupancy Report: All commissioners received a copy of the occupancy report. Since the last report, there have been three (3) move-outs and five (5) move-ins. Four (4) of these move-ins were at the Evans and the Evans had no move-outs during this report period. At the time of this report, Brookside has eighty-three (83) occupied units and seventeen (17) vacant units, and the Evans has seventy-two (72) occupied units and thirteen (13) vacant units.

Since the last report, Hillcrest had had one (1) move-out and one (1) move-in, with one (1) pending application. There have been numerous inquiries. There are fifteen (15) occupied units and nine (9) vacant units at Hillcrest.

Revised Display Ads: Greg provide the commissioners with copies of the revised ads for all three properties. The ad in the Hot Springs Star for Brookside and the Evans features the fact that there is no waiting list. The ad in the Edgemont Herald Tribune features the no waiting list statement as well as the fact that the apartments have been remodeled. Greg reported on his interview with the new editor of the Edgemont paper, stating that she took pictures of the grounds and the apartments which are now featured in the ad.

Hillcrest Open House: The Hillcrest open house on October 8, 2017, went well. Greg reported that he gave apartment tours to a couple of individuals. He also received several inquiries following the open house. As a direct result of the open house, there has been one move-in to Hillcrest and there is one pending application.

Boilers: Greg reminded the commissioners that two years ago Brookside replaced one of the boilers used for heating the building. A claim for the boiler replacement was made on our building insurance, which resulted in a 44.73% increase in the cost of our building insurance, which is now just over $22,000/year. When the second boiler failed, the insurance agent recommended that we not put in a claim for replacement as it was might result in another significant increase in premium. The result of this is that there is only one operating boiler.

With winter coming on, it would be prudent to have a second back-up boiler available. Greg received an estimate $64,000 from Rasmussen for the purchase and installation of another boiler. It is hoped that with the new water treatment system in place and the water softener installed, the boilers will now last longer. Funding for this new boiler was discussed. Greg stated that there is still $11,000 remaining in 2016 Capital Funds and that the 2017 Capital Funds totaling $91,000 are now available. Mike reminded the commissioners that there is also the $25,000 payment from CCI that could go toward the cost. The commissioners were all in agreement that Greg should move forward with the new boiler.

OLD BUSINESS

Fair Housing Compliance Review: Nothing new to report.

Purchase Agreement Update:

Occupancy Level Requirement – For CCI to obtain their funding for the purchase of the Evans, occupancy needs to be at 85% for six months prior to closing. Greg stated that he sees this as being a number that is fluid, changing weekly or even daily as tenants move in and move out. Greg does not necessarily see it as a number at the beginning or the end of a month. As of today, occupancy at the Evans is at 85.24%.

Marketing Suggestions – Greg has been in contact with Cindy Shelton, an administrative assistant with CCI, who provided him with some marketing ideas. She suggested using online advertising. Specifically, mentioning Craigslist and GoSection8.com. Greg has placed a free ad with GoSection8.com and a copy of that ad is included in the commissioners’ packets. The ad can be more customized if a yearly fee of $500 is paid. The commissioners were in favor of a paid listing that would allow for more specifics. Cindy also sent Greg a list of tips for writing an ad for Craigslist, but he has not yet posted on that site, but will do so soon.

NEW BUSINESS

Resolution #316: HS Housing has been notified by HUD that the flat rent amounts for Brookside need to be increased. Currently, the flat rent for a one-bedroom is $450 per month and $500 per month for a two-bedroom apartment. HUD’s recent survey indicates that the average Fair Market rent in Fall River County is $580 for a one-bedroom apartment and $708 for a two-bedroom. Greg commented in the nine years that he has been the Executive Director, the flat rent rates at Brookside have not changed. Historically, the rents at Hillcrest and The Evans are increased yearly.

Greg informed the commissioners that flat rents had to be at least 80% of Fair Market rents. Greg is proposing that the flat rent for a one-bedroom be raised to $464 per month and for a two-bedroom unit to $566. Flat Rent is charged when 30% of adjusted monthly income exceeds the flat rent for the occupied unit, which is currently the case of only fourteen (14) units in the building; all other unit rents would be based on the 30% of adjusted monthly income, with rent changes due to changes in household income. Greg recommends that this change occur January 1, 2018.

Jim moves to accept Resolution #316 increasing the fair market rent of a one bedroom to $464 per month and $566 per month for a two-bedroom, with an effective date of January 1, 2018. Linda seconded the motion. No discussion. Unanimous.

Housing Commissioner Term Expiration: It is noted that Mike’s term on the Fall River Housing Commission and the Hot Springs Housing Commission expires December 31, 2017. Chairman Mark asked Mike if he would consider staying on both housing commissions, to which Mikeresponded he would. Greg will make the necessarynotifications to Mayor Kotti and Fall River County Commission action before the end of the calendar year, as well as notify Mike of his need to submit a letter of interest in reappointment to the County Commission.

Labor Costs: Greg reported that Social Security recipients will be receiving a 2% cost of living raise in January 2018. With that in mind, Greg asks the commissioners to consider increase in salaries/wages for employees, noting that there will be four (4) employee following Valorie’s retirement in January 2018 and the sale of The Evans. The commissioners will address this request at a later meeting.

Next Commission Meeting: The next commission meeting is scheduled for Wednesday, November 15, 2017, at 1:30 pm. It has been decided that there will be no meeting in December.

Memorial for Jack Weiss: Jim requested that the Housing Commission remember Mr. Weiss with a card of sympathy to his family along with a donation to his memorial. The commissioners agreed with this and recommended a $50 donation.

ADJOURNMENT

The meeting adjourned at 2:20 PM.

Chairman Date

Executive Director Date