Texas Chapter of National Association of Housing & Redevelopment Officials
Executive Board Meeting
Sunday, October 22, 2006
11:00 a.m. – 1:00 p.m.
MCM Elegante Suites
Abilene, Texas
I.Roll Call
Richard Franco, President of Texas NAHRO, called the meeting to order. Present were: Judy Medders, Steve Shorts, Wes Bell, Riza Nolasco, Eva Shults, Annie Botsford, Mark Mayfield, Richard Herrington, Barbara Menzel-Gardner, Henry Alvarez, III, Roberta Thompson, Bernadine Spears, Estella Trevino, David Zappasodi and Shelli Scrogum. Those joining in through conference call were Wiley Hopkins, Jim Whitaker, Joe Garcia and Karen Morris.
The President declared a quorum present and business was transacted as follows:
Richard Franco thanked everyone present for attending this conference having just recently returned from NAHRO’s National Conference. He noted the importance of continuing to gather like this to share collective wisdom so that we can face the situations before us. He added that it’s important to stay focused on the national issues and the Texas Department of Housing and Community Affairs’ issues in the State of Texas.
II.Invocation
Mark Mayfield gave the invocation.
III.Acceptance of April 9, 2006 Executive Board Meeting Minutes
Richard Herrington moved for approval of the minutes, seconded by David Zappasodi. The motion carries.
IV.2004 and 2005 Audit Report
Elizabeth (Becky) Spenser presented her report dated August 9, 2005 expressing an unqualified opinion on the financial statements of Texas NAHRO for the years ended December 31, 2005 and 2004. A copy of the audit report was included in the Executive Committee’s Board Meeting packet. She added that she had to work on a real serious issue, lobbying. She noted that she’s sympathetic with the issue that housing authorities are facing with legislation but the IRS has serious views on lobbying bytax exempt organizations. She added that if the organization makes payments to an individual for the purpose of that individual having direct communication with legislators in an attempt to influence their vote, that is a lobbying expenditure. You risk losing your tax exempt status and will not be able to deduct lobbying expenses, this is not a tax deductible expense for any organization, in which case corporate income taxes would have to be paid on all of these expenses and on top of this, any excess revenues over the deductible expense. In addition, she added that if the organization makes lobbying expenses, members would have to be notified that a portion of their dues is going for lobbying.
Richard Franco stated that it was not membership money that was used; it was money that was sent by several housing authorities that was not federal money. Ms. Spenser stated that in her opinion it came into Texas NAHRO and it was noted in the various minutes that it was coming for the purpose of lobbying plus the engagement letter that was signed with the legislative consultant was signed on behalf of Texas NAHRO. Mr. Franco noted that in ignorance we did a number of things and he assured her that this would not happen again. He added that whatever efforts we continue to advance our needs with either the State Legislator or the U.S. Congress, we’ll approach it differently so that we will not be in violation. Ms. Spenser suggested that the word lobbying not be used.
Henry Alvarez made a motion to seek legal advice as to where we can stand on this issue and whether or not we really have bridged Federal Tax Regulation 56.4911; therefore,having to file,then move our discussion of this issue to education. David Zappasodi seconded the motion. Motion carries.
Richard Franco noted that according to Ms. Spenser’s report, this matter has been resolved. He added that what Ms. Spenser is attempting to do is to make sure that we do not make the same mistake again. He stated that once an opinion is obtained, it will be send to the members. Estella Trevino moved to accept the audit, seconded by Steve Shorts. Motion carries.
V.Review of Audit Fee Increase Request
Shelli Scrogum reported that Ms. Spenser submitted an invoice showing the amount of her original audit proposal of $3,600.00, but due to the extended research she was required to do in relation to legislative expenditures there was an increase of $1,800.00 for a total invoice amount of $5,400.00. Steve Shorts moved for approval, seconded by Bernadine Spears. The motion carries.
VI.Treasurer’s Report
Wes Bell reported total income of $282,082.30 versus total expenses of $194,628.44 for a net income of $87,453.86 for the period of January 2006 through October 2006 and congratulated Shelli for a job well done. Shelli noted that this will change due to some expenses from this conference still not accounted for and there’s more training scheduled for November and December that will bring in more income. Richard Herrington moved for approval, seconded byRoberta Thompson. The motion carries.
VII.Review and Approval of 2007 Budget
Shelli Scrogum reviewed the 2007 budget. She projected a total budgeted income of $212,100.00 versus total expenses of $207,299.96 for a projected net income of $4,800.04. Bernadine Spears moved for approval, seconded by Judy Medders. The motion carries.
VIII.E-Procurement Profit Sharing Proposal
Dionne Roberts, Chief Executive Officer of Transpire, Inc., reported that they have three regions involved in this process but if Texas NAHRO approves this proposal, this will be the first chapter of NAHRO to do so. She added that the 32nd version of e-procurement has been around for four years, it’s a NAHRO member service meaning that it’s free to all NAHRO member agencies, it’s a web based system; you just log on to a secure private website. It has about 325 agencies and 3600 vendors. She explained that it does two things: compliance-it won’t let you do the things you can’t do and it provides you with a communication tool. She went on to explain that agencies would upload a document that would otherwise be mailed, faxed, etc., the system would then send an email to all the vendors interested in that commodity. You could see who opened the document up and when. If you have an addendum, you post it online and the system would send an email out to all of them and once again it would show when they opened up the email. Q&A also takes place on this system; therefore, creating consistency. She added that it also deals with asset management because it allows you to take whatever you buy on the system and allocate it. Ms. Roberts briefly reviewed the Revenue Sharing Agreement and referred to the list of Texas e-Procurement Vendors as of October 18, 2006.
Richard Franco stated that his intent is to provide a more expeditious procurement process but with this program you have an additional benefit of earning money. He added that this is worth serious consideration of adoption. After a brief discussion, Richard Herrington moved for approval, seconded by Estella Trevino. The motion carries.
IX.Update on Tax Credit Legislation
Richard Franco thanked Henry Alvarez for allowing them to meet in his office. He added that the Executive Committee decided that it was time for someone to initiate tax a credit program for public housing. There are a great number of housing authoritiesacross the country that have vintage housing stock. He stated that in Corpus Christi more than half of the 1800 public housing units were built in 1941 and they’re not going to stand up much longer and added that the chances of our area getting a Hope VI are minimal so we have to pursue other avenues. One avenue is a special congressional allocation of tax credits for public housing. He stated that they have advanced this notion within the TXNAHRO membership and he and Henry met in Washingtonwith the National Executive Director on this issue last week. Richard Franco said that he also met with the Assistant Secretary for Public Housing in Los Angeles on this matter. He added that he cares about advancing what we think is proper that will inure to the benefit of the people we serve. Notwithstanding the national concerns that will always be there, Richard Franco suggested advancing this notion and asked for the Executive Committee’s endorsement to move it forward. He said it will take a lot of work making sure that we meet with the key congressional and senate officials. He added that it would probably take 18 months before we would really be prepared to do this. Steve Shorts moved for approval, seconded by Wiley Hopkins. The motion carries.
X.Consideration of Service Officer Contract
Richard Franco stated that our Service Officer has done a fabulous job; she’s highly professional in what she does and doesn’t think this organization can function without her. He added that he and Steve Shorts worked on her contract for the next three years, a copy of which is included in the Committee’s board meeting packet. Wiley Hopkins, on conference call, asked forchanges from the last contract. Richard Franco stated that she would receive an increase in her salary plus an incentive of 10% of net profits of all training activities she conducts,extending her contract for three years, assuring a CPA conducts the audit, assure filing of IRS Form 990 and any other IRS forms, conducting an inventory of TXNAHRO equipment, etc., and providing a status report. Steve Shorts added that her salary would go from $48,000 to $54,400. He added that the 10% profit would be paid in lump sum on March 30 of each year based on prior year’s accomplishments. After a brief discussion, Bernadine Spears moved for approval, seconded by Estella Trevino. The motion carries.
XI.Standing Committee Reports
A. Professional Development Committee
Riza Nolasco, Vice President, reported that they added two new members, Sandy McCleary and Ilene Brush from the Taylor Housing Authority. The committee met this morning and agreed on a few suggestions for 2007 training. Her report contained topics of discussion during the Annual Conference on April 9, 2006 in Corpus Christi which were also discussed that the Southwest Annual Conference in Galveston on June 12, 2006. On June 13, 2006 the committee met with the Service Officer to talk about possible training sessions to be offered in September 2006 and at the Fall Conference in Abilene. The committee will continue to communicate via email and the focus will be on training and education, certification and credentialing of the members of the organization.
B.Housing Committee
It was reported that the Committee is in serious need of members. PIC and portability were discussed at this morning’s meeting. Regarding portability, they want to bring something forward to make sure that housing authorities absorb them when they come in; otherwise, problems are created. Their report contained topics of discussion during the Annual Conference in Corpus Christi.
C.Member Service Committee
Judy Medders reported that due to the half price membership drive, our membership has increased by 31 agencies. We currently have 254 agency members, 45 Associate Members which is an increase of 4 since the Annual Conference and an increase of 26 from calendar year 2005. She reported the sale of TXNAHRO shirts at this conference. Again, she suggested that after the membership renewal period, we should continue to offer half price membership to any new housing authority signing up for the very first time.
D.Community Relations & Development
The Committee did not meet.
E.Scholarship Committee
The report submitted noted that several emails have taken place providing progress reports on the number of students who have registered for classes. The Committee was asked to review the application form and offer comments or suggestions for changes. None were received. Members are pleased with the application and feel no modifications are necessary at this time. As of October 19, 2006, twenty two (22) students had received their scholarships.
F.Awards Committee
Henry Alvarez reported that the submission process for awards begins soon.
G.Site Selection Committee
Bernadine Spears reported that they did not meet this morning. A meeting will be held in April 2007 in Odessa. She reported that the Winter Conference is scheduled to take place in Waco in October 2007.
H.Nominating Committee
Estella Trevino reported that they’re working on the list. She still needs to speak to some members and will get the list to Shelli.
I.Report by the Service Officer
Shelli Scrogum reported final annual conference income totaled $96,835.00, total expenses were $57,271.69, for an annual conference profit of $39,563.31.
The maintenance conference was held at Sam Rayburn Resort on July 24-25. There were over 90 attendees. Total profit for this maintenance conference was $5,993.52.
She reported on upcoming training in November and December, as well as the Fall Conference. She added that she’ll begin sending out the Awards and Scholarship Applications soon with possible deadlines of February 2007. Recipients will be recognized at the Annual Conference in Odessa in April 2007.
Shelli asked if anyone had job openings to email them to her and she’ll post them on the TXNAHROwebsite. She added hat she’s going to add a spot on the homepage for “Housing Authority News” where special events, awards, employee recognition, etc., can be posted and asked that articles of this type can be emailed to her for posting.
Steve Shorts noted that two or three years ago, TXNAHRO received $25,000 for scholarships and we now have $22,000. Shelli explained that Jim Hargrove has pledged up to $25,000. As of last week, she reported that only 22 scholarship recipients have enrolled; therefore, Texas NAHRO has paid out 22 out of the 25 that were awarded. She added that even though we award 25, there may be a student or two that do not enroll. Steve asked if he was going to continue with the pledge. Richard Franco stated that he’s sure that they’ll continue with the contribution as they are able but we should not be dependent on one entity to provide the scholarship funds. He added that he would like some ideas from the Executive Committee and would like to appoint a committee to review this. He appointed David Zappasodi, Mark Mayfield, Henry Alvarez, Bernadine Spears and Estella Trevino to come up with ideas on how to fund this program and selected David Zappasodi to be the Chairman of this committee.
XII.Old Business
None
XIII.New Business
Richard Franco invited everyone to participate in the Texas Department of Housing and Community AffairsBoard Meeting on November 9th regarding the Qualified Allocation Plan. He added that the QAP that was circulated had onerous provisions that housing authorities could not live with. He reported that the Executive Committee met in Henry Alvarez’s office and they came up with some changes that have been submitted to TDHCA but the presence of the housing authorities is needed at this meeting in order to let them know that we are an industry to be reckoned with.
The following outgoing Directors for 2004-2006 that were present were recognized and presented with a plaque as follows: Estella Trevino, Bernadine Spears and Richard Herrington. The remaining directors were not present; therefore, their plaques would be mailed to them.
XIV.Adjournment
The meeting adjourned at 12:30 p.m.
TXNAHRO Executive Board Meeting
October 22, 2006
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