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Minutes - Boulder Housing Partners - 4/11/2011 BOULDER HOUSING PARTNERS REGULAR MEETING OF THE BOARD OF COMMISSIONERS APRIL 11, 2011,2:30 PM NORTHPORT 1133 PORTLAND PL, BOULDER COLORADO Commissioner Lawrence Betsey Martens Kathy Haddock CAO Commissioner Mitchell Willa Johnson Andy Proctor HHS Commissioner Topping Stuart Grogan Commissioner Eckert Jim Koczela Commissioner McCormick Penny Hannegan Commissioner Ageton Shannon Cox-Baker Public: Commissioner Hempel Tim Beal Liz Black Commissioner Holton Anna Kay Johnson Commissioner Merman Kevin Knapp 1. Call to order Commissioner McCormick called the regular meeting of the Board of Commissioners to order at 2:37 pm. II. Determination of Quorum A quorum was declared. III. Oath of Office Conunissioner McCormick administered the Oath of Office to Scott Holton and Conunissioner Klernan administered the Oath of Office to Angela McCormick. The Board congratulated Ms. McCormick on her reappointment and welcomed Mr. Holton to the Board of Conunissioners. IV. Public Participation There was no public participation. V. Board Announcements COMMISSIONER KLERMAN MADE A MOTION TO RECESS INTO EXECUTIVE SESSION AT THE CLOSE OF THE MEETING AS PER COLORADO STATUTE CRS- 24-6-402 4(b) TO DISCUSS LEGAL MATTERS. COMMISSIONER HEMPEL SECONDED THE MOTION. The motion passed unanimously. 1 Z parties, events, resident councils); and the NAHRO poster contest: "What Home Means To Me." Development Commissioner McCormick reported that the Development Committee had held a joint meeting with the Board of Directors of the Boulder Homeless Shelter to discuss the guiding principals and public outreach campaign for the Lee Hill project. The Commissioners suggested that Greg Harms repeat his Housing First presentation for the entire Board as an upcoming board development topic. VIII. Approval of the Agenda Consent agenda items: 1. Minutes from March 14, 2011 COMMISSIONER TOPPING MOVED TO APPROVE THE CONSENT AGENDA. COMMISSIONER KLERMAN SECONDED THE MOTION. The motion passed unanimously. IX. Action Agenda Directors Report Award of Moving to Work Status Betsey and the Conunissioners paused to celebrate BHP's award of Moving to Work status by HUD. Betsey will bring a big picture "what does it mean" next month. Three bullet point summary of this elite status for year one: 1. Allocation of fiinding to BHP from HUD will be as a block grant and contractually obligated. We will now have a contractual relationship with HUD. 2. There will no longer be a statutory cap on our project based vouchers so we will be able to replicate Broadway East with all of our public housing portfolio. 3 ly Auditing Standards and Govermnent Auditing Standards, the auditors responsibility for identification of fraud risk factors and their responsibilities for testing and reporting on internal controls. All 2010 tax credit audits and tax returns were completed and filed on time with no findings. Jim also presented the February financials including an explanation of the major adjustment to our 2010 balance sheet; the reclassification of the existing Bridgewalk loan from long term to current liability. Commissioner Klennan wondered if this would trigger a default under loan provisions that might require certain ratios be maintained. Jim reported it would not result in any event of default. The February unrestricted cash position has improved because of the insurance settlement on the Walnut Place roof and the release of Red Oak Park contingent cash. Commissioner Ageton questioned the monthly write-offs of $13,000. Jim is working on creating an allowance for doubtful accounts to avoid the big swings in this account. Bridgewalk Renovations Willa discussed the third phase of the Bridgewalk renovations which will begin with the finalization of the loan's refinance. She gathered input about potential color schemes for the exteriors from the Conunissioners. Conunissioner Eckert suggested that Hardy smooth face siding looked better than the rough. Willa explained that the cost estimating is going well potentially adding solar if cost estimates continue to go well. Commissioner Holton suggested considering a Power Purchase Agreement, which would require less capital outlay. Bridgewalk Refinance Willa brought a recommendation to begin working with Wells Fargo as the lender for the Bridgewalk refinance. Conunissioner Ageton moved to approve Wells Fargo as the lender for the Bridgewalk refinance; Karen Klerman seconded the motion. In discussion, Kathy Haddock, CAO, mentioned that the City is currently in a conflict with Wells about the validity of the affordable covenant. Andy Proctor provided additional information about the situation. Following an extensive discussion in wh&h the Board was unanimous in their desire to be a helpful partner to the City regarding the future of the affordable housing program, Commissioner Ageton withdrew her motion and Conunissioner Klerman withdrew her second to the motion. Commissioner Topping suggested seven days for additional investigation and recommendations and then start negotiations. 5 COMMISSIONER LAWRENCE MADE A MOTION TO AUTHORIZE BETSEY TO SIGN THE EASEMENT DEDICATIONS DOCUMENT AT HIGH MAR. COMMISSIONER TOPPING SECONDED THE MOTION. Commissioner LaNN ence had questions about the budgeted contingency at High Mar. He suggested that the overall contingency figures seemed too low at 4%. He suggested that a 10% contingency would be more acceptable but if the General Contractor was involved from the begimzing, 5% might be okay. Red Oak- Park Kevin gave an overview and shared pictures of progress at ROP. The site currently has leased up 15 families, nine of whom were original tenants of BMM. Commissioner Klerman asked about the Kaboom playground initiative. Betsey stated that since ROP has funds to build a playground, the Kaboom idea has now potentially moved to Bridgewalk. Conunissioner Lawrence questioned whether the differing number of PV potential per unit affects leasing decisions. COMMISSIONER KLERMAN MADE A MOTION TO RECESS INTO EXECUTIVE SESSION AS PER COLORADO STATUTE CRS- 24-6-402 4(b) TO DISCUSS LEGAL MATTERS. COMMISSIONER HEMPEL SECONDED THE MOTION. The motion passed unanimously. i 7 X. Adjourn COMMISSIONER TOPPING MADE A MOTION TO ADJOURN THE REGULAR MEETING OF THE BOARD OF COMMISSIONERS. COMMISSIONER HEMPEL SECONDED THE MOTION. The motion passed unanimously. The regular session of the Board of Commissioners adjourned at 5:11 pm SEAL DATE: 4/11/2011 ANGELA MCCORMICK, CHAIR Boulder Housing Partners WY BETSEY MARTENS Executive Director PENNY HANNEGAN Recording Secretary i 8