Single Asset Small Companies

Board of Directors
Meeting

6:00 – 8:00PM

Tuesday, December 12, 2017

AGENDA

  1. Preliminaries
  1. Approval of Agenda
  2. Approval of April 18, 2017 Minutes
  1. Approval of Jonathon Sondergaard as Board Member
  1. Treasurer officer discussion
  1. Change in audit firm
  1. Approval of 2018 budgets
  1. Discussion on Outsourcing Management– update
  1. Long term planning (discussion)
  1. Board member recruitment (discussion)
  1. Next meeting (audit to be completed by March 31, 2018, Management Agreements end April 30, 2018)
  1. Adjournment

Single Asset Small Company Board Minutes

Kelly Apartments

Home Share

North Court Apartments

Clear Spring Road Residencies

April 18, 2017, 6PM

Attending: Nathan Nelson - Chair, Kyle Holtz, GayGonnerman, Mike Mason, Rita Wiersma, Robert Pickering

Meeting called to order by Nathan

Agenda and minutes motion to approve – Gay/Kyle, motion passed

Robert reviewed the 2016 audit with the committee. Audit was an unqualified, clean opinion. The only internal control issue was related to segregation of duties. With new staff and controls in place, this might not be an issue next year. Staff plan to review the long-term liability for the amount due to CIP. This amount has been growing each year. Not sure if the small companies will ever be in a position to repay these amounts. Motion to approve audit: Kyle/Mike, motion passed

Reviewed updated real estate management agreement between CIP and small company for 2017-2018. The only change beside4s the dates was potentially changing the management fee rate from 12% to “12% unless a lower rate is mandated by the small company regulatory agency”. Motion by Mike/Kyle, motion passes.

Discussion on Outsourcing Management: Rita provided an overview. Should CIP continue to manage the properties internally or consider outsourcing? High turnover has caused a lot of findings in property management. CIP doesn’t consider itself a HUD expert. Ernie has expressed an interest in retiring in two years. CIP traditionally has had a social worker mentality vs a landlord mentality. Questions to consider: Would properties pull in more revenue if an outside entity managed the vacancies. Group expressed in investigating options and bringing back to board for discussion.

Discussed adding a member to the housing board that would not also be a member of the CIP board of directors. This would require CIP board approval. Discussed adding Jonathon Sondergaard to housing and will seek CIP board approval.

Minutes submitted by Robert Pickering, Secretary.