Loading...
Meeting Packet - Boulder Housing Partners - 5/9/2011 BOULDER HOUSING PARTNERS REGULAR MEETING OF THE BOARD OF COMMISSIONERS MAY 9, 2011 2:30 PM BHP OFFICE 4800 N. BROADWAY, BOULDER COLORADO Our primary mission is to provide quality affordable housing that is developed and managed with respect for the dignity of all involved. We also seek to create a sense of community strength and spirit that supports resident efforts to realize success in their lives. REGULAR A G E N D A 1. Call to order IT. Determination of Quorum III. Public Participation** IV. Board Announcements V. Committee Reports 1. Governance 2. Finance/Audit 3. Resident Representative Council 4. Boulder Housing Partners Foundation 5. Development VI. Approval of the Agenda VII. Consent Agenda 1. Minutes from April 11, 2011 2. Resolution #6: Thanking Louise Smart 3. Bridgewalk Refinancing Recommendation VIII. Action and Discussion Agenda Directors Report 1. Status of MtW Designation 2. National and NAHRO Update Management Report 1. March 2011 Financial Statements Development Report 1. Lee Hill Housing: adoption of guiding principles 2. High Mar Redevelopment 3. Red Oak Park 4. Broadway West XI. Adjourn Any member of the public is invited to address the Board on any topic that is on, or not on, the agenda during Public Participation. Anyone wishing to speak will have the floor for a maximum of 3 minutes. 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 Klerman Kevin Knapp 1. Call to order Commissioner McCormick called the regular meeting of the Board of Commissioners to order at 2:37 pm. H. Determination of Quorum A quorum was declared. III. Oath of Office Commissioner McCormick administered the Oath of Office to Scott Holton and Commissioner Kier-man administered the Oath of Office to Angela McCormick. The Board congratulated Ms. McCormick on her reappointment and welcomed Mr. Holton to the Board of Commissioners. 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 VI. Board Development Kevin Knapp presented an overview of the opportunities, costs and lessons learned about energy investment tax credits. Commissioner Lawrence wondered whether we had modeled the replacement cost of the panels at Red Oak Park and if similar costs have been included in the High Mar budget. VII. Board Committee Reports Governance Commissioner Lawrence volunteered to join Commissioner Ageton on the Governance Conunittee. Finance Commissioner Topping reported that the February financials and the preliminary audit progress were reviewed at the Finance Committee meeting. The audit report will be presented to the Commissioners in June at the Finance Committee meeting on June 6th at 4:00. Commissioner Topping also reported that the Finance Committee has been reviewing Betsey's employment contract and will fmalize it by the June meeting for the Board's approval. Betsey stated that the recent budget reductions will impact the amount of administrative reimbursement for our federal programs. Jim Topping mentioned that the Finance Committee and the staff will work together to monitor the status of reserves as a result and will advise the Board if a problem starts to develop. RRC No meeting this month, a report will be given at the May meeting. Foundation Betsey announced the election of officers: Rene Brodeur-President, Midge Korezak - Vice President, and Neil Littman-Secretary. Betty Hoye will remain on the Board. Lynn Guissinger will leave the board due to a family emergency. Betsey reported on the idea of the Foundation Board Liaison Project. The concept is to have Board members serve as a liaison between the Foundation Board and Resident Services staff for specific projects. Potential projects suggested included: the ESL program partnership with Intercambio; the City of Boulder Early Childhood Development Project; the distribution of emergency funds to residents; the development of resident services metrics; the Kahnia soccer field follow-up; community building activities (holiday parties, events, resident councils); and the NAHRO poster contest: "What Home Means To Me." Development Commissioner McConnick 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 Commissioners 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 sunmlary of this elite status for year one: 1. Allocation of funding 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 IV 3. Elimination of medical deduction for our elderly and disabled residents in the first year. Commissioner Eckert expressed his interest in the concept of moving people along the housing continuum and his positive experience with the Dave Ramsey class. He gave the example of building relationships with local landlords so residents might be able to work for rental deposit gap funding. The Commissioner's wondered if there should be a MTW committee of the Board. The Commissioners also recommended that staff include a NAHRO/federal update to the regular Board meeting agenda. 2011 Q1 Work Plan Betsey asked if there were any questions or comments about work plan activity the first quarter. She stated that staff will be looking at changes to the work plan because of MTW. Bylaws Revisions COMMISSIONER KLERMAN MOVED TO APPROVE RESOLUTION #5 THE REVISION OF THE BYLAWS. COMMISSIONER LAWRENCE SECONDED THE MOTION. The motion passed unanimously. Board Tour of Properties in May Betsey reminded the Board of the scheduled tour of properties before the next Board meeting. The tour will be from noon to 2:30 and will include lunch. We will meet at the BHP office. Sites the Board requested to tour include Bridgewalk, Arapahoe East, Hayden Place, Sanitas Place and Red Oak Park. Management Reno rt February Financials Jim Koczela distributed to the Board a letter from Plante Moran with a description of the auditor's responsibilities under Generally Accepted 4 Auditing Standards and Government 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 Klerman 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. Bridg_ewalk 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 Commissioners. Commissioner 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. Conu-nissioner Holton suggested considering a Power Purchase Agreement, which would require less capital outlay. Bridg_ewalk Refinance Willa brought a recommendation to begin working with Wells Fargo as the lender for the Bridgewalk refinance. Conmissioner 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 which the Board was unanimous in their desire to be a helpful partner to the City regarding the fixture of the affordable housing program, Commissioner Ageton withdrew her motion and Commissioner Klerman withdrew her second to the motion. Commissioner Topping suggested seven days for additional investigation and recommendations and then start negotiations. 5 Commissioner Klerman wondered if any of the lenders needed more time to complete their RFPs. Commissioner Klerman suggested that BHP could speed up the process by engaging an appraiser now while waiting to choose the lender. She suggested that whoever was awarded the contract would accept the appraisal's results. COMMISSIONER LAWRENCE MADE A MOTION TO AUTHORIZE STAFF TO PURSUE BORROWING $14 MILLION FOR THE BRIDGEWALK REFINANCE AND TO PROCEED TO RECOMMEND A LENDER TO THE BOARD. STAFF WILL CONSIDER THE BOARD'S CONCERNS REGARDING ONE LENDER'S CURRENT DISPUTE WITH THE CITY'S AFFORDABLE HOUSING PROGRAM IN THE SELECTION CRITERIA FOR "RELATIONSHIPS". COMMISSIONER KLERMAN SECONDED THE MOTION. The motion passed unanimously. Development Report Lee Hill Permanent Supportive Housing Shannon and Stuart asked for comments and/or questions about the guiding principles developed for the Lee Hill project. Commissioner Ageton wondered about the wording of environmental performance rather than energy efficiency. Shannon will bring a final version of the guiding principles to the next Board meeting for adoption. Shannon explained some of the highlights of the zoning analysis: Maximum number of units 31-25 one bedroom, 6 efficiencies; Thirty-one units gives us a conditional use permit and stays below administrative threshold. But we will not forego the neighborhood outreach process; - The smoking, security and pet policies are still under consideration; and We will start hosting open houses in May. High Mar Redevelopment: Authorization to sign easement dedications Commissioner Holton wondered about the genesis of the multi-use path connection. Shannon responded that it was on an adopted City plan and required as part of the Site Review process. 6 7 COMMISSIONER LAWRENCE MADE A MOTION TO AUTHORIZE BETSEY TO SIGN THE EASEMENT DEDICATIONS DOCUMENT AT HIGH MAR COMMISSIONER TOPPING SECONDED THE MOTION. Commissioner Lawrence 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 beginning, 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. Commissioner 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. 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 MCCORv1ICK, CHAIR Boulder Housing Partners BETSEY MARTENS Executive Director PENNY HANNEGAN Recording Secretary b MEMORANDUM To: Board of Commissioners From: Betsey Martens, Executive Director Subject: Director's Report Date: May 4, 2011 This month's Director's report includes: Consent: Resolution # 6: Thanking Louise Smart Action: None this month Updates: Status of Moving to Work Designation National and NAHRO Update City Issues Affecting Affordable Housing Attachments: MtW Attachment Summary of City Issues Affecting Affordable Housing ACTION ITEMS: None at this time UPDATES: Status of Moving to Work Designation We received notice on March 31, 2011 that we have been accepted into the Moving to Work (MTW) demonstration as authorized by Congress in the Consolidated Appropriations Act of 2010. With this designation, we join 34 other housing authorities across the country who have broad powers to waive HUD regulations and implement local initiatives to better serve low income households. One of the major benefits of MTW is having a contractual relationship with HUD, and receiving our HUD funding as a single grant. The three statutory objectives of MTW are: • Create efficiencies in the administration of federal housing programs • Support families in movement to financial self sufficiency • Create more housing choices for low income people t Since receiving the good news of our designation, we have gotten right to work! Willa and Karen attended a meeting of west coast MTW agencies to begin learning from our new peers. We have also begun work on contract negotiations, stakeholder notification, staffing impacts, budgeting, and work plan impacts. Contract negotiations: The MTW contract between BHP and HUD will run through September 30, 2018 and will set the stage for all of our funding and reporting requirements, as well as the prograins we intend to implement during that time. The first conference call between our MTW Coordinator in the MTW Program Office in Washington, DC and the Denver Regional Office took place on April 19, 2011. Emily Cadik is our MTW Coordinator and expressed much enthusiasm that BHP is to be a part of this program. She also commented on the impressive application that we put together. We anticipate the first draft of our contract from HUD in early May. There are five parts to the contract, the Standard Agreement and four attaclunents (A - D). Attachments A and D are unique to each agency, whereas Attachments B and C are standard for all agencies. Attachment A Calculation of HUD works with each agency to provide formulas Subsidies for determining the amounts of operating subsidy, capital funds, and Housing Choice Voucher Program assistance that each agency receives. Attachment B Elements for the Lists the required elements for the Annual MTW Annual MTW Plan and Plan and Annual MTW Report, which are the same Annual MTW Report for all MTW Agencies. Attachment C Statement of Lists each specific section of the 1937 Act and/or Authorizations its implementing regulations that an MTW PHA can waive as part of its MTW flexibility. Attachment D Legacy and This section is optional and unique for those Community-Specific agencies that have them. HUD works with each Authorizations MTW agency to develop its Attachment D to serve the interests of all parties. For many agencies, it incorporates parts of their original Agreements or other authorizations unique to the PHA. As part of the contract, our Year One Plan under MTW, which was part of the application, has been circulating through the work groups at HUD for comments. These continents will come to us in mid-to late-May for our review and revisions. We will continue to work with our attorney, Rod Solomon, who assisted us in writing the application, to Finalize the contract. Also, as part of the contract, HUD will conduct annual site visits. The initial site visit is scheduled for June 9 and 10, 2011. The Director of the MTW Program Office, Ivan Pour; 2 our MTW Coordinator, Emily Cadik;; and local HUD field office staff will be in attendance. At that time, they will visit all the public housing sites, meet staff who will be implementing the MTW activities, and be available to talk us through the comments on our First-Year Plan. Stakeholder Notification: Information has been posted on our website. An email communication has gone to our partners and a letter to the affected public housing residents and section 8 participants was sent on May 2. A press release also went out in early May. We have been actively communicating with BHP staff as well, through a series of emails, an FAQ on our share drive, and a presentation and questions session at our first quarter All Staff Meeting. Implementation: Implementation of our Year One Activities is on track for January 1, 2012. For the period of time between now and January 1, 2012 (Year Zero), contract negotiation will be the uppermost priority. We are proposing a team approach to planning and implementation. Tasks will be split out among small functional staff teams, with Betsey Martens, Karen Kreutzberg, and Willa Johnson as the core implementation coordinators. We will be working to have all the necessary planning and evaluation in place to begin our Year One Activities. We will be working with CU to recruit a graduate or post graduate student to create a longitudinal study. Budgeting: Below is a draft Year Zero budget for your review. We will bring final numbers to the June meeting and will request Board authorization to spend off budget: Sources Public Housing Cash S 60,000 Subtotal $ 60_.000 Uses Consultants Legal - Rod Solomon S 20.000 Rent reform S 1.000 Metrics S 4.000 CU Fellovi Hire S 10.000 Conversion Planning Due diligenge S 10.000 Special SoftwareNardi Upgrades S 8.000 Travel $ 7.000 Oakland Complete Yardi in DC Scheduled Nevi England Planning MTVI DC Planning NA.HRO. KY Maybe NA.HRO,Tv10 Maybe Pacific I' kA! 2012 Subtotal S 60.000 /L Work plan impacts: We developed the 2011 work plan with the hope that we would receive MTW, but with the expectation that we might not. In our initial review of the workplan we have found that a few initiatives may need to be slowed down or reprioritized to make way for MTW planning, but that generally, the organization has the capacity to complete Year 0 activities as proposed. We will bring an updated work plan for Board review next month. Board involvement: Our thinking about how best to keep the Board involved in the program will unfold as we understand the program better. In meeting with the west coast MTW agencies, we found a variety of approaches from active involvement to reporting only. Our thinking has ranged from folding it into the existing three committees (Finance, Development and Foundation) to an MTW liaison from the Board to an MTW Committee. We are grateful that Commissioner Mitchell is very interested in supporting the MTW transition. We'll share some more thinking next month. National and NAiIRO Update As you'll read in the Management Report, HUD has yet to provide PHAs with official notification of FY2011 funding per Congressional action to adopt a budget on April 14, 2011. In the meantime, NAHRO had done a calculation for every PHA on Section 8 Admin Fees, which is the line item with the greatest impact. Our attention now turns to the FY2012 budget. House Republicans unveiled a FY 2012 budget resolution that contains approximately $6 trillion in spending cuts over the next 10 years and that would drastically overhaul Medicaid and Medicare. The plan, which would reduce the top income tax rate for corporations and individuals to 25 percent, would reduce discretionary spending to below FY 2008 levels and freeze it at that level for five years. The full resolution, entitled "The Path to Prosperity," is available at: http://bud p,et.house.gov/fy20 l 2bud get/. The plan also calls for federal term limits and work requirements in assisted housing in order to "extend the successes of welfare reform to rental assistance programs," though it does not go into specifics. Its goals include reducing "incentives for dependency by narrowing the gap between assisted renters and unassisted renters with the same income levels, while continuing to provide a safety net to snake sure that those with very low incomes can afford housing." It also calls for a stop to "the explosive growth of this program so that aid can be focused on the truly needy." Senate Democrats promptly came out against the plan, and it is unlikely that a resolution of this kind would pass in the Senate. 4 HUD is also managing significant public relations fallout following transgressions identified in Philadelphia, Los Angeles and now Cuyohoga County (Ohio). In response to pressure from the Hill, HUD has proposed that each PHA report to them the salaries of the top five employees in the organization. The data would be assembled into a central data base on HUD's website. The industry groups have come out strongly in opposition to this idea and have offered a number of alternates that would arrive at the same kind of transparency without suggesting that HUD controls local salaries and creating a very slippery slope. In NAHRO news, I was the keynote speaker at the Pacific Northwest Regional Council of NAHRO conference in Seattle on May 2, presenting a paper I'm writing on The Future of Affordable Housing. The only other extra speaking/campaign engagement for the season (other than the Colorado and Mountain Plains NAHRO conferences, which are always on the schedule) is a visit with the Southeast Regional Council membership in Miami in.July. City Issues affecting Affordable Housing Summary: There were several issues that staff identified for Board review that are currently under consideration by the City of Boulder; a summary is included in the attachments. 5 i • Team fppSub DEREGULATION RESIDENT Tea m P" SERVICES RENT REFORM PUBLIC HOUSING CONVERSION ACCOUNTING AND REPORTING Finance K -a ren, Willa, COMMUNICATION METRICS + BENCHMAeR.KS ATTACHMENT Summary of Current City Issues Affecting Affordable Housing Update. 2010 Boulder Valley Comprehensive Plan Major Update Over the past several months, we have brought you several pieces of information at various stages of the 2010 major update to the Boulder Valley Comprehensive Plan (BVCP). This month, the City is preparing its final draft of the BVCP document in anticipation of approval from the Planning Board, City Council, Boulder County Planning Commission and Commissioners over the next three months. Although many of the proposed changes to the BVCP are changes to the wording or to consolidate policies and eliminate redundancies, some changes are more substantive. Summarized in an attachment to this memo are some proposed changes that most directly address affordable housing, development and the needs of our residents. On May 24, the Planning Board and City Council will hold a joint public hearing regarding changes to the BVCP. City Council and the Boulder County Commissioners will take action on the updated plan during the months of June and July. For more information or to submit comments, please visit www.bouldervalleycoml)plan.net. BHP Participates in the City's Process Improvement for Affordable Housing Grants We are pleased to have been offered the opportunity to participate in the City's process iinprovement for the administration and award of its affordable housing and community development grants. Every year, the City's Division of Housing awards local and federally-funded grants to qualifying organizations, projects, and initiatives. BHP applies yearly for the affordable housing funds and the City has awarded BHP with millions of dollars that enable the success of our new development, acquisitions, and capital improvements. During the week of May 2, we submitted a formal letter containing our suggestions for how the grant award process and our relationship with the City as a grantor could be improved into the future. Individually, we also completed an anonymous online survey provided by the City. The draft changes to the City's grant program will be released sometime during the week of May 9 for review and comment. The City will also host a public meeting to gather feedback on the proposed changes during the week of May 16. We will participate in the remainder of the City's process improvement and will report to the Board as decisions are made. Changes to the Administration of the Inclusionary Housing Program In early 2010, City Council adopted changes to its Inclusionary Zoning program and ordinances, modernizing the program and renaming it "Inclusionary Housing." Inclusionary Housing is a policy that requires affordable for-sale housing be included as a component of all new residential development within the city. Developers are required to construct comparable units within a new residential developer, or provide a cash payment to the City's Division of Housing in lieu of constructing units. The cash-in-lieu payment becomes a part of the City's affordable housing grant funds and is distributed through its yearly grant award process. Since 2010, City staff has been working to update the administrative policies associated with Inclusionary Housing. The City's proposed changes are up for comment by the Planning Board on May 5 before they are presented to the City Manager for approval. Highlights from the proposed changes include: • A set of consolidated "Alternative Methods of Compliance," which outlines alternative ways to meet Inclusionary Housing standards in instances when an innovative strategy for meeting these requirements would result in the developer providing more, larger, or better affordable units in an innovative way. In exchange, a developer can negotiate for a different number of affordable units, unit size, floor area calculation, and/or payment of cash-in-lieu than is normally allowed under the Inclusionary Housing statutes; • Redevelopments of five units or more must now comply with requirements for Inclusionary Housing; • The base standard for calculating an affordable sale price has been updated. Now, households eligible for affordable for-sale housing will be able to afford a somewhat larger home for the same price. The base calculation now also includes garage space; • New livability standards are now included within Inclusionary Housing; and • New guidelines establish the procedure for dedicating affordable units in places off-site from the new residential development or redevelopment. These changes are available for public comment during May 5-20. I~ You can own a home in Boulder! The City of Boulder issued a press release to potential homeowners as follows: "Those interested in home ownership are invited to tour properties for sale at an open house on Sunday, May 1, from noon to 3 p.m. For a list of properties participating in the tour, go to www.boulderaffordablebomes.com and click on the Homeownership Programs link. The City of Boulder's Affordable Homeownership Program offers condos, town homes and single-family homes starting at $98,780 for a one- bedroom, one-bath condo and $199,000 for a single-family home. For more information about the city's Affordable Homeownership Program a FREE orientation will also be offered at the Boulder Public Library, 1001 Arapahoe Ave. Call 303-441-3157, ext. 2, to register. The Affordable Homeownership Program is part of the city's Department of Housing & Human Services." Flood Safety Outreach According to the City, Boulder's flood season has officially begun. In response to the heightened flood risk caused by last fall's Four Mile Creek fire, the City (in partnership with other community organizations) has stepped up its outreach efforts to those most at risk during a flood. The City's outreach includes English/Spanish informational inserts in April utility bills, bus and print ads, temporary signage, and information directly mailed to those living in the floodplain. Several BHP communities are located within the floodplain or conveyance zone, including communities that house senior or disabled residents. Currently, we provide annual flood awareness training to our most vulnerable residents. Individuals can sign up to receive flood warnings at www.BoCo911Alert.com; to access the City's resources about flooding, visit www.boulderfloodinfo.net Ik ATTACHMENT Final Draft Changes to the 2010 Boulder Valley Comprehensive Plan The 2010 BVCP update was framed around creating sustainability policies (including social equity) and changes to urban form/design guidelines: Social Sustainability Changes: • Social sustainability is defined as promoting diversity through satisfying all residents' basic needs and encouraging appropriate infrastructure and services. • In the introduction, the aging population, higher-than-average poverty rate, and lack of adequate amounts of affordable housing (especially for families and other household configurations) were called out as specific challenges. • The plan identifies affordable public transportation passes a priority. • The "Human Services" section is now called "Community Well-Being:" o The section specifically looks to promote regional solutions to community problems, specifically siting the Ten Year Plan to Address Homelessness and Boulder-Broomfield Regional Consortium as examples. o Affordability and accessibility of basic services is stated as a goal. o Lack of housing options and affordable retail opportunities for low income and special needs populations are called out as issues to be addressed. o In addition to placing specific value on diversity within the community, the plan indicates that diverse community members should be encouraged to participate in civic life. o A collaborative approach is suggested to ensure that government and non-profit agencies can satisfy their facilities needs. Urban Form-Related Changes: • New language suggests that the City will enable more mixed-use development and higher densities, specifically when in proximity to multimodal transportation corridors. • Development and rehab activities will now be expected to protect natural features, use less energy, reduce heat island effects, reduce pollution, and contribute to clean energy generation. • Tree planting and maintenance of the streetscape are emphasized. it) • Public and private development projects are called upon to be visually attractive/well- designed and provide a positive contribution to community character and context. • Project designs will be required to "relate positively" to the site's natural features. • Projects will be required to provide comprehensive transportation/mobility connections within and surrounding the site. • The plan encourages use of high quality building materials for projects. • The City will develop strategies to encourage redevelopment of commercial and industrial areas, using the regulatory and authoritative tools available. • A new "Energy and Climate" section has been added: o In this section, the City and County have committed to enabling reduction in energy consumption as well as local energy production. BHP will be able to utilize the strategies devised by the local government to create more energy- efficient properties as well as to install solar panels or other types of energy- producing technology. o Energy efficiency standards for existing buildings will be developed. * Under the "Housing" section: o This section has several paragraphs specifically addressing affordable housing. In other, less specific paragraphs, the words "affordable" for housing and "low and very low income" for residents were removed in favor of a "variety" of "attractive" housing options for a "broad range of or "vulnerable" residents. This language is meant to address the need for more market-rate rentals in addition to affordable housing. o Language about the creation of employee housing has been removed. • Petitions to expand the area of land that is annexable can be submitted for review at any time, not just at BVCP midterm or full updates. ZC MEMORANDUM To: Board of Commissioners From: Management Staff Subject: Report of Activity Date: May 3, 2011 This month's Management report includes: Consent: Bridgewalk Refinancing recommendation Action: March 2011 Financial Summary Updates: Occupancy Status and Net Rental Income Resident Services Attachments: March 2011 Financials CONSENT ITEMS: Bridgewalk Refinance At the April Board meeting, we brought the terms for the two top prospective lenders for the $14 million refinance of Bridgewalk. Our recommendation was to work with Wells Fargo. During discussion, our representative from the City Attorney's Office raised a concern regarding a dispute between the City and Wells Fargo. The Board made a motion that we explore the concerns related to Wells Fargo, and that we check-in with the board with our recommendation of lender. In the following week, we worked diligently with the City and Wells Fargo, and gathered sufficient information to support the recommendation that we proceed with Wells Fargo. We provided the Board with additional information via email, and received back a majority endorsement in support of working with Wells Fargo. We are including this history of the Board's ratification by consent agenda at the May meeting. April 20, 2011 Email from Betsey Martens to the Board: Dear Commissioners: In follow-up to the discussion on Monday, we bring some great news. Of all the possible scenarios, we think we are landing in the best place - having helped l 20 the City begin to solve their conflict with Wells, and having learned that the City doesn't want their conflict to impact our decision. The following provides the detail. We began by talking with City staff, City Attorney's Office, the Mayor and our City Council Liaison to more fully understand the conflict between the City and Wells Fargo. We have learned that the City is continuing to do lending business for their homeownership program with Wells Fargo, and that they would support our awarding the business to Wells, based on the stronger business terms presented. To say it more strongly, they discouraged us from making our decision based on their interest. They want to have a good working relationship with Wells and encouraged us to do the same. In talking to the Wells staff, we also learned that there is a large institutional separation between the Home Mortgage division of Wells Fargo, and the Business Banking department that put together the Bridgewalk proposal. However, we were successful in brokering a meeting between City staff and a decision maker at Wells Fargo. The City and Wells have agreed to mediation. BHP will not be party to those negotiations, but our involvement has helped significantly. To that end, please see the attached letter. Our understanding of the Board's motion from Monday is that it authorizes us to move forward to initiate the borrowing, and asks that we check-in with the board with our recommendation of lender. Our recommendation is to engage Wells Fargo at this time, and have the Board ratify the selection at the May meeting-- in lieu of convening a special meeting. If this approach is not amenable and you have further concerns please be in touch by Wednesday, and we will work to schedule a meeting to discuss. In the end, your discussion created a win-win situation for all. I hope you agree. Sincerely, Betsey Your action today ratifies the staff recommendation and action to begin borrowing discussions with Wells Fargo. ACTION ITEMS: March 2011 Financial Summary 2010 Year End Our auditors, Plante & Moran, completed their field work and have no material findings to report. We are continuing work on the final report which will be presented at the Finance 2 Z Committee meeting on June 6"'. All tax credit audits and 2010 tax returns are complete and have been filed on time. ,March 2011 Boulder Housing Partners year-to-date revenues of $4,221,156 and expenses of $4,227,266 and an extraordinary gain from the settlement of an insurance claim and debt forgiveness of $424,016 results in net income of $417,906 versus a budgeted income of $537,768. The negative variance is explained as follows: Income Statement Total Operations Revenue of $1,470,993 (A) is in line with budget. HCV Revenues of $1,686,049 (B1) are unfavorable to budget by $41,369. This relates to underfunding by HUD of the 81 new vouchers. This is more than offset by the favorable HCV Expense variance of $138,783 (B2) which relates to the slower than budgeted lease up of the 100 new vouchers. Non Federal Grants and Donations variance of $103,159 (C 1) and Federal Capital Grants variance of $ 222,413 (C2) are timing differences between the budget and actual spending on capital projects. Federal Service Grants Revenue (D) is also a timing difference. This revenue is recognized as invoices are submitted for payment. Efforts were made to properly record expenses into 2010. The delay in invoicing for these grants by our service partners will likely not catch up until year end 2011. Extraordinary Maintenance of $75,271 (F) includes expenditures of $15,506 for electrical work at Madison and Hayden Pl.; $12,753 for hazardous materials testing across all sites; $6,288 for rental license inspections; $6,778 for HVAC repair work at Sanitas Pl. and $24,030 for bedbug work across the portfolio. Amortization expense variance of $18,721 (G) includes the write-off in March of $13,469 related to an old loan secured by 101 Pearl that was paid off and the associated loan costs were never removed from the books. Extraordinary Income of $416,901 (H) includes the recognition of the forgiveness of debt by the City of Boulder in the amount of $326,901 (principal and interest) relating to Woodlands and the insurance settlement of $90,000 we received for the roof damage at Walnut Place. Balance Sheet The increase in cash of $235,820 (I) is more fully explained on the monthly cash report however the major items contributing to the increase in cash are the Walnut Place insurance settlement of $90,000 and the release from restriction of $186,000 that was previously set aside for Red Oak Park construction contingency. The collection of Accounts Receivable ($538,237) (J) results from the collection of grant revenues and developer fees from Broadway East and West. Restricted Cash (K1) continues to decline as we spend money borrowed to complete the work at Canyon Pointe for the Green Retrofit project and at the Public Housing sites for the 3 93 Energy Performance Contract. There is a corresponding increase in Construction in Progress (K2). Both of these projects are nearing completion. Accounts Payable declined by $693,654 (L) as we paid invoices on our construction projects that were accrued at year end. The large balance of Current Portion of Long term Debt of $5,372,504 (M) refl ects the entire balance due of $5,080,000 on the Bridgewalk Loans. When we complete the refinance of this loan the balance will again reflect only the amount due in the next 12 months. The decline in Notes Payable of $252,000 (N1) and Accrued Interest Payable of $72,000 relate to the forgiveness of the Woodlands note by the City of Boulder. Statement of Cash Flows The Statement of Cash Flows provides detail on the overall year to date increase in Cash and Cash equivalents of $235,820 (O). The significant items year-to-date are the collection of receivables (P1) and the reclassification of the restricted cash for Red Oak Park to unrestricted (P2). Pogfolio Analysis Report The portfolio analysis for March has not been completed. The intern who had this responsibility has left BHP. We are working on replacing this person. In the meantime we are reassigning this responsibility. We will have an April YTD report for you in June. Public Housing Assessment S y stem I am pleased to report that BHP received a High Performer designation from HUD for 2009 achieving a score of 90 out of 100 possible points. This score includes categories for physical inspection, financial indicators, management assessment and resident feedback. Last month, I reported that the reclassification of the Bridgewalk debt from long term to current might result in a failure of the financial indicator portion of the report for 2010. Every indication we are receiving is that the score only measures the current ratio for the federal programs and therefore Bridgewalk should not affect the results. UPDATES: Occupancy Status and Net Rental Income The combined net rental income for all of BHP properties through March was $1,470,992 compared to a budgeted net rental income of $1,502,582 which is a negative variance to budget of $31,598 (-2.10%). The combined net rental income for all of the Tax Credit Properties through March was $382,574 compared to a budgeted net rental income of $372,461 wh&h is a positive variance to budget of $15,807. 4 ty Several of BHP properties are showing negative net rental income at the end of the first quarter. The variances in Public Housing income are primarily due to a funding delay because of the federal budget process. The variances in Section 8 Project Based Properties are due to higher than normal vacancy at North Haven. The variance in the Workforce Portfolio income is primarily a result of the number of vacancies at Bridgewalk. The rehab process is currently taking longer than anticipated and we are experiencing a larger number of non- renewal of leases due to the amount of construction taking place on site. Several residents have chosen to move out rather than renew their lease and endure the construction. We anticipated vacancy loss in the project budget, but we are also taking steps to mitigate the high vacancy. The BHP year-to-date occupancy through March was 96.9%, compared to a budgeted occupancy rate of 97%. The combined physical occupancy rate for the Tax Credit portfolio year-to-date through March was 98.98%, compared to a budgeted occupancy of 97%. The chart below shows physical occupancy by property type. These property designations mirror the way the budget is organized. Public Housing has been divided into two groups of less than 250 units each, to comply with HUD Project Based Accounting requirements. Public Housing I is comprised of all the family sites and Public Housing lI is comprised of the two senior sites. Public Housing I properties - Arapahoe, Diagonal, Iris/Hawthorne, Kalmia, Madison and Manhattan. - 188 units Public Housing II properties - Northport and Walnut Place - 145 Units Project Based Section 8 Properties - Canyon Point, Glen Willow & North Haven - 124 Work Force - 101 Pearl, Arapahoe East, Bridgewalk, Dakota Ridge, Eden East, Hayden Place, Midtown, Orchard House, Sanitas Place, Twin Pines, Whittier and Woodlands- 272 Tax Credit properties - Broadway East, Broadway West, Foothills Community, Holiday Neighborhood, and Red Oak Park (still wider construction) Vistoso - 267 units Total units combined - 936 March 2011 Net Rental Net Rental Net Rental Plivsical Occ Physical Oce Variance to Income - Income - Income - YTD Budget Budget YTD Budizet Variance Public 97.33% 97% 0.72% Housing - I $268,095 $276,990 ($8,895.00) Public 96.47% 97% -1.05% Housing - II $169,131 $176,256 ($7,125.00 PB Sec. 8 97.60% 970/6 -0.41% properties $309,145 $314,454 ($5,309.00) Work Force $721,292 $733,842 ($12,550.00) 96.04% 97% 0.30% BI-11' 96.90% 97% 0.16% portfolio combined $1,470,992 $1,502,582 ($31,590.00) Broadway 97.99% 97% 2.05% East $129,854 $124,749 $5,105 as Broadway 97.02% 97% 2.88% West $63,404 $61,813 $1,591 Foothills $229,533 $222,596 $6,937 100.00% 97% 3.00% Holiday $116,545 $115,497 $1,048 99.14% 97% 3.00% Vistoso $35,818 $34,692 $1,126 99.71% 97% 2.14% TC portfolio 98.98% 97% 2.72% combined $382,574 $372,461 $15,807 Resident Services Activities of the Resident Services Department have not historically been a frequent part of the Management Report. With the expansion of the resident services program over the past year, and its integral role in our Moving to Work plan, we are planning to include more periodic updates and action items. A few highlights from our first quarter work: Kalmia has opened a computer lab as part a Learn to Earn program. Residents receive computer skills and financial literacy training from a volunteer instructor on computers donated by Boulder Community Computers. After completing the training, participants qualify to earn a computer for their home. We are working with CU to hire an MSW candidate intern, who will work on community building activities at Red Oak Park this summer. Resident Services staff has been working closely with the Boulder Fire Department to educate our residents in fire, flood and evacuation preparedness. The danger of a flash flood this year is especially high because of Boulder's recent fires. Several of our buildings are in the flood plain and house seniors and people with disabilities. Staff has worked closely on the creation of evacuation plans and education of residents on what to do in case of floods. 6 76 BHP Statement of Activities March 31, 2011 YTD YTD Ref Actual Budget Variance $ % Var Revenue Operations Revenue Tenant Dwelling Rental S 1,179,317 $ 1,189,260 $ (9,943) -0.8% Non Dwelling Rental Income 5,054 2,765 2,289 82.8% Rental Write-offs (13,519) (6,645) (6,874) 103.4% HUD-Operating Subsidy 112,940 122,970 (10,030) -8.2% HAP Project Based Assistance 187,201 194,232 (7,031) -3.6% Total Operations Revenue A 1,470,993 1,502,582 (31,589) -2.1% Fee Revenue Asset Fee Revenue 21,840 21,840 0 0.0% Property Mgmt & Bkkpg Fee 139,305 140,301 (996) -0.7% Development Fees - 7,500 (7,500) 0.0% Mgmt Fees - Tax Credits & S8 87,169 80,462 6,707 8.3% Total Res Svc Fee Income 60,377 54,734 5,643 10.3% Total Fee Revenue 308,691 304,837 3,854 1.3% Grants and Subsidies HCV-HAP Revenue 131 1,686,049 1,727,418 (41,369) -2.4% Non Federal Grants and Donations C1 66,841 170,000 (103,159) 100.0% Federal Capital Grants C2 129,494 351,907 (222,413) -63,2% Federal Service Grants D 59,856 119,902 (60,046) -50,1% Total Grants and Subsidies 1,942,240 2,369,227 (426,987) -18.0% Other Revenue Tenant Late Fees 4,650 4,429 221 5.0% Tenant Work Order Charges 1,420 3,315 (1,895) -57.2% Tenant Reim - Utilities 14,827 9,798 5,029 51.3% Interest Income 152,764 145,027 7,737 5.3% Total Laundry 14,226 17,055 (2,829) -16.6% Community Center Revenue 900 1,437 (537) -37.4% Maint Charges to Prop 295,595 273,750 21,845 8.0% Total Miscellaneous Revenue 14,850 2,640 12,210 462.5% Total Other Revenue 499,232 457,451 41,781 9.1% Total Revenue 4,221,156 4,634,097 (412,941) -8.9% Expenses Salaries and Benefits Total Salaries 945,514 941,013 (4,501) -0.5% Total Salaries and Benefits 945,514 941,013 (4,501) -0.5% Property Costs Management Fees 46,762 46,420 (342) -0.7% Maintenance Materials 56,388 61,599 5,211 8.5% Contract Labor & Repairs 129,937 166,456 36,519 21.9% BHP Contract Labor 242,692 215,850 (26,842) -12.4% Extraordinary Maintenance F 75,271 43,750 (31,521) -72.0% Garbage and Trash Removal 34,083 28,695 (5,388) -18.8% Water and Sewer 44,845 70,750 25,905 36.6% 1 of 2 5/3120119:56 AM BHP Statement of Activities March 31, 2011 YTD YTD Ref Actual Budget Variance $ % Var Electricity 46,119 46,470 351 0.8% Gas 70,600 85,660 15,060 17.6% PILOT 26,023 24,780 (1,243) -5.0% HOA Fees 4,940 1,163 (3,778) -324.9% Total Property Costs 777,660 791,593 13,933 1.8% Operating Expenses Amortization Expense G 26,356 7,635 (18,721) -245.2% Asset Management Fee 21,840 21,840 0 0.0% Audit Fees 11,937 11,937 0 0.0% Background Checks 1,301 2,244 943 42.0% Bank Fees 1,416 1,590 174 10.9% Board Expense 2,272 2,013 (259) -12.9% Community Center Exp 330 330 0 0.0% Consultants 3,000 11,387 8,387 73.7% Depreciation 337,996 344,610 6,614 1.9% Dues and Fees 9,843 13,256 3,413 25.7% Expendable Equipment 1,398 12,049 10,651 88.4% HCV-HAP Expense 132 1,442,592 1,581,375 138,783 8.8% Insurance Expense 46,847 50,460 3,613 7.2% Interest Expense 1,126 2,100 974 46.4% Legal Expense 4,061 2,841 (1,220) 42.9% Mileage 1,408 2,801 1,393 49.7% Miscellaneous - Expense 5,956 5,709 (248) -4.3% Mortgage Interest Expense 257,173 249,850 (7,323) -2.9% Non-Salaried Personnel 6,780 11,100 4,320 38.9% Advertising/Marketing 2,072 3,521 1,449 41.2% Office Supplies 6,835 8,115 1,280 15.8% Phone Expense 13,148 15,318 2,170 14.2% Postage Expense 3,410 3,540 130 3.7% Printing Expense 6,915 8,500 1,585 18.6% Property Mgmt & Bkkpg Fee Exp 139,305 140,316 1,011 0.7% Publications - 290 290 0.0% Resident Relocation 1,895 - (1,895) 0.0% Res Svc/Strategic Planning Fee Exp 50,496 51,264 768 1.5% Staff Training 9,634 18,749 9,115 48.6% Service Grant Expense 68,157 88,793 20,636 23.2% Vehicle Expense 16,518 15,015 (1,503) -10.0% RRC Allocation 2,075 2,076 1 0.0% Total Operating Costs 2,504,092 2,690,624 186,532 6.9% Total Expenses 4,227,266 4,423,230 195,964 4.4% Net Income before Sale of Assets (6,110) 210,867 (216,977) -102.9% Gain (Loss) on Disposition of Property 7,115 - 7,115 0.0% Extraordinary Income (Expense) H 416,901 326,901 90,000 0.0% TOTAL NET INCOME (LOSS) $ 417,906 $ 537,768 $ (119,862) -22.3% 2 of 2 5/3/20119:5' AM BHP Balance Sheet March 31, 2011 and December 31, 2010 Actual Actual Net Change Ref March-11 December-10 YTD ASSETS Current Assets Unrestricted Cash and Cash Equivalents I 5 2,304,176 $ 2,068,356 $ 235,820 Reserved Cash - Replacements 748,730 731,270 17,460 Reserved Cash - Tenant Security Deposits 388,982 388,795 187 Accounts Receivable J 732,472 1,270,709 (538,237) Accounts Receivable-Tax Credits 44,111 108,187 (64,076) Prepaid Expenses 55,176 71,121 (15,945) Supplies-Inventory 24,186 24,331 (145) Total Current Assets 4,297,833 4,662,769 (364,936) Restricted Cash Restricted Cash - Other K1 931,940 1,791,724 (859,784) Restricted Cash - Section 8 819,466 721,195 98,271 Total Restricted Cash 1,751,406 2,512,919 (761,513) Capital Assets Construction in Progress K2 3,704,240 4,493,040 (788,800) Furniture Fixtures and Equipment 482,460 465,941 16,519 Real Estate Assets-Land and Buildings 52,478,910 51,042,321 1,436,589 Less: Accum Depreciation Real Estate Assets (28,672,058) (28,334,063) (337,995) Total Capital Assets 27,993,552 27,667,239 326,313 Other Assets Notes Receivable 9,757,205 9,757,205 0 Interest Receivable Notes 3,318,421 3,222,076 96,345 Partnership Investments 432,625 432,625 0 Net Amortized Costs 826,777 853,683 (26,906) Total Other Assets 14,335,028 14,265,589 69,439 TOTAL ASSETS $ 48,377,819 $ 49,108,516 $ (730,697) LIABILITIES 8, EQUITY LIABILITIES Current Liabilities Accounts Payable L S 340,292 $ 1,033,946 $ 693,654 Accrued Payroll 121,214 66,922 (54,292) Accrued Payroll Taxes Payable - 26,626 26,626 Accrued Compensated Absences 262,498 254,754 (7,744) Other Accrued Expenses 211,651 346,383 134,732 Deferred Revenue 253,381 283,665 30,284 Current Portion of Long Term Debt M 5,356,813 5,406,271 49,458 Prepaid Rent 30,538 12,683 (17,855) Security Deposits 388,005 389,365 1,360 Total Current Liabilities 6,964,392 7,820,615 656,223 Long-Term Liabilities Notes Payable N1 99,171 351,171 252,000 Accrued Interest Payable N2 8,299 80,070 71,771 Mortgages Payable 14,015,459 13,984,068 (31,391) Bonds Payable 1.564,386 1,564,366 0 Total Long-Term Liabilities 15,687,315 15,979,695 292,380 TOTAL LIABILITIES 22,651,707 23,800,310 1,148,603 EQUITY Total Equity 25,726,112 25,308,206 (417,906) TOTAL LIABILITIES AND EQUITY $ 48,377,819 $ 49,108,516 $ 730,697 1 of 1 513120115:56 AM BHP Statement of Cash Flows for the Month and Year to Date Ending March 31, 2011 Ref Month to Date Year to Date Reconciliation of Net Income to Net Cash Provided (Used) by Operating Activities Net Income (Deficit) $ 274,611 $ 417,906 Adjustments to Reconcile Net Income to Net Cash Provided (Used) by Operating Activities Increase (Decrease) Accum Deprec/Amort 130,951 364,901 (Increase) Decrease in Accounts Receivable P1 (7,004) 602,313 (Increase) Decrease in Prepaid Expenses 11,998 15,945 Increase (Decrease) in Prepaid Rent and Security Deposits (8,165) 16,495 (Increase) Decrease in Supplies/Inventory 1,348 145 (Increase) Decrease in Reserved Cash (8,562) (17,647) (increase) Decrease in Restricted Cash P2 134,779 761,513 Increase (Decrease) in Payables and Accrued Expenses (37,534) (792,976) Increase (Decrease) in Deferred Revenue (300) (30,284) Total Adjustments 217,511 920,405 Net Cash Provided (Used) by Operating Activities 492,122 1,338,311 Cash Flows from Investing Activities (Increase) Decrease in Construction in Progress 216,837 788,800 (Increase) Decrease in Furniture Fixtures and Equipment (16,519) (16,519) (Increase) Decrease in Real Estate Assets (638,670) (1,436,589) (Increase) Decrease in Notes and Interest Receivable (49,837) (96,345) Net Cash Provided (Used) by Investing Activities (488,189) (760,653) Cash Flows from Financing Activities Increase (Decrease) in Current Portion of Long Term Debt (15,691) (49,458) Increase (Decrease) in Notes Payable (252,000) (252,000) Increase (Decrease) in Mortgages and Bonds Payable (2,450) (40,380) Net Cash Provided (Used) by Financing Activities (270,141) (341,838) Net Increase (Decrease) in Cash and Cash Equivalents Net Increase (Decrease) in Cash and Cash Equivalents O (266,208) 235,820 Unrestricted Cash and Cash Equivalents - Beginning 2,570,384 2,068,356 Unrestricted Cash and Cash Equivalents - Ending $ 2,304,176 $ 2,304,176 1 of 1 5/3120119:56 AM 3t~ Boulder Housing Partners Cash Report March & February, 2011 CASH NEEDED FOR OPERATIONS AND RESERVES Mar-11 Feb-11 Change Cash Needed for Day-to-Day Operations $ 750,000.00 $ 750,000.00 $ Development Working Capital $ 250,000.00 $ 250,000.00 $ - Restricted Cash BMM Loan $ 159,239.47 $ 159,179.80 $ 59.67 Reserve for Capital Replacements - Woodlands $ 600,000,00 $ 600,000.00 $ - Reserve for Capital Replacements - General $ 600,000.00 $ 600,000.00 $ 4800 Broadway Reserve $ 70,000A0 $ 70,000.00 $ Landscaping Escrow - Set Aside $ 72,892.53 $ 72,899.44 $ (6.91) Total cash needed $ 2,502,132.00 $ 2,502,079.24 $ 52.76 Total Unrestricted Cash Available for Operations $ 793,053.33 $ 1,062,273.19 $ (269,219.86) Restricted Cash for ROP/BMM $ 159,239.47 $ 159,179.80 $ 59.67 Unrestricted Cash Targeted for Woodlands Rehab $ 470,858,48 $ 464,668.11 $ 6,190.37 Unrestricted Cash Avail. for Replacements - Proj. Based only $ 24,090.53 $ 23,240.53 $ 850.00 Unrestricted Cash Available for Replacements $ 331,732.88 $ 328,411.04 $ 3,321.84 Development Funds Set Aside (Landscaping Escrow) $ 72,892.53 S 72,899.44 S (6.91) Total Cash available for Operations, Replacement and Set Asides $ 1,851,867.22 S 2,110,672.11 5 (258,804.89) Overage (Shortage) $ (650,264.78) $ (391,407.13) $ (258,857.65) IMPACT: We continue to run short of the Board designated targets for operations and reserves. The impact is that rehabilitation projects may be delayed and that BHP does not have the ability to fund development projects or to take advantage of acquisition opportunities with cash reserves. CASH NEEDED FOR PUBLIC HOUSING AND PROJECT BASED PROPERTIES Mar-11 Feb-11 Change Restricted Cash - Public Housing & Project Based - Target $ 650,000.00 $ 650,000.00 $ - Restricted FSS Escrow $ 4,639.71 $ 3,644.71 $ 995.00 Restricted Cash - Public Housing & Project Based - Actual $ 1,108,649.55 $ 1,058,739.53 $ 49,910.02 Total PH and Project Based Cash $ 1,113,289,26 $ 1,062,384.24 $ 50,905.02 Overage (Shortage) $ 463,289.26 $ 412,384.24 $ 49,910.02 IMPACT: The unrestricted Public Housing and Project Based money cannot be borrowed for COCC Operations and has therefore been split from the Unrestricted Operating Cash. This money is available to fund operations for PH and PB portfolios. Current plans are in place to spend approximately $145,000 over the next 12 months on capital improvements for Public Housing CASH NEEDED FOR SECTION 8 Mar-11 Feb-11 Change Cash Needed for 1 month of HAP and Admin - Target $ 525,000.00 $ 525,000.00 $ - Restricted Cash Available for Section 8 Operations - Actual $ 402,374.29 $ 964,967.56 $ (562,593.27) Restricted Funds Available for Use on HAP and FSS escrow $ 854.310.62 $ 158.086.79 $ 696.223.83 Total Section 8 Cash $ 1,256,684.91 $ 1,123,054.35 $ 133,630.56 Overage (Shortage) $ 731,684.91 $ 598,054.35 $ 133,630.56 IMPACT: Currently reserve is funded - If HUD were to slow down their payments, BHP would have funds to cover the shortfall for one month - This has been building due to full funding received for the 100 new vouchers which are still in the lease-up process. $300,000 Line of Credit Terms: If drawn on, terms are interest only variable rate of approx 5%, payment in full due November 2011 51 MEMORANDUM TO: Board of Commissioners FROM: Betsey Martens, Executive Director Stuart Grogan, Director of Development Shannon Cox Baker, Project Manager Kevin Knapp, Project Manager Liz Wolfert, Project Assistant Lindsey Moss, Project Assistant SUBJECT: Development Report DATE: May 3, 2011 This month's de),elopment report includes: Consent: None Action/Discussion: Lee Hill Housing: adoption of guiding principles Updates: High Mar Redevelopment Red Oak Park Broadway West Attachments: Lee Hill: Draft guiding principles Project Tracking Fornl and Timeline CONSENT ITEMS None 32. ACTION/ DISCUSSION ITEMS LEE HILL HOUSING Previous Board Meeting: At the last meeting, we provided the following information: • An update on procurement of the design team consultants and our first programming and design charrette; • A review of the draft set of guiding principles, reviewed and revised by both BHP and the Boulder Shelter for the Homeless (BSH) boards; • A presentation of our zoning analysis and unit count calculations, specifically, that the zoning requirements will allow for up to 31 units (25 regular units, 6 efficiencies); • An overview of the entitlement process with confirmation from the Board to proceed with the Conditional Use Review process; and • A presentation of the surrounding zoning context. Progress since Previous Board Meeting: Guiding Principles: The Lee Hill guiding principles have been reviewed by the Boards of BHP and BSH, as well as staff from both entities, and have been modified to reflect the intentions and aspirations of both parties. These principles will guide the project through its entire duration and evolution, irrespective of changes to the project costs or funding sources, building form or design, or the management and consultant team. We recommend the Board adopt the attached Guiding Principles. Also attached is a list of Development Objectives, which - in addition to the Guiding Principles - will focus the design team's efforts. Design: The design team created various conceptual diagrams in an attempt to determine the best possible building configurations given the site, surrounding context, and programming needs. BHP staff has provided feedback on these early diagrammatic concepts to inform the beginnings of an iterative design process. As we refine a more concrete design concept, we will be able to present these concepts for Board review at the June meeting. As previously noted, the site area allows for a maximum density of 31 units. Soils Investigation: According to our geotechnical engineer, CTL Thompson, the preliminary results from the soils investigation are positive. The sub-soils are essentially non-expansive and ground water is not expected to affect the planned construction. It appears the building can be constructed on footing foundations which is less expensive than other systems. A slab-on-grade floor is suitable for the building, assuming no basement. Currently, a basement area is planned; revisions to the report addressing this change have been requested. Is Neighborhood Outreach: Portell Works. a public relations firm in Denver. has been retained to provide a communications strategy and assistwice with the neighborhood outreach process. Their recent experience includes providing public relations to three homeless housing providers and branding for Denver Housing Authority. We anticipate finalizing our outreach strategy within the next four weeks and launching the neighborhood outreach process by the end of May. Project Schedule: The Conditional Use Revic«, process requires plan approval at three phases: concept design, technical documents, and building permit. Given the proposed efficiency of the building's design. the lack of any kno-,vn environmental contamination hazards or soils issues, and the absence of a public review process, we believe the project will be ready for construction by the third quarter of 2012. The schedule below assumes a March 2012 LIHTC allocation is received. Concept Plan Public Outreach _ Schematics/Ms Tec Docs _ Bldg Pmt (50% CD) LIHTC Process Bldg Pmt (100% CD) Benin Construction Next steps: • Execute consultant contracts; • Commence neighborhood outreach process; • Create a preliminary budget and targeted construction cost (per square foot); and • Draft a binding partnership agreement with the Shelter. UPDATE ITEMS HIGH MAR REDEVELOPMENT At the last meeting, we provided the following information: • An update on the technical document review process, specifically, that we anticipated receiving approval in April; • Board authorization for Betsey to sign five easement dedications; • An update on the Low Income Housing Tax Credit (LIHTC) application process, specifically, that we anticipate a notice from Colorado Housing Finance Authority (CHFA) regarding the March 2011 allocation by the second week of May; and • An update on the project budget contingency, specifically, that BHP was carrying 4.5% while the contractor was carrying 4% (for a total of 9.5%). Progress since Previous Board Meeting: Design Process: We anticipate the project's technical documents will be approved the first week of May by the City. The design team is proceeding with construction documents and anticipates completion by the end of July. Project Financing: At the April Board meeting, Commissioner Lawrence suggested increasing the owner's hard cost contingency from 4.5% up to 10%, assuming the project can bear the expense. Based on the schematic design cost estimate, total hard costs are approximately $6 million. Under the current financing structure, the project can support increasing the owner's contingency to 7% of hard costs (or $424,407). After examining our updated projections, we feel a 7% contingency is reasonable and healthy, especially considering the low materials cost of the construction market anticipated to continue over the next six months when the project's construction will begin. However, we will continue to explore opportunities to increase this to 10%, specifically by reducing debt carry and increasing tax credit pricing. Cost Estimate: The design development (DD) cost estimate was completed the last week of April. The total construction budget for the project, at this stage, is estimated at $8.78 million. This cost includes general conditions, horizontal and vertical construction casts, contractor fees (overhead and profit), contractor contingency (reduced from 4% of hard costs at Schematic Design to 3% of hard costs at DD), and contractor insurance. This is a $112,000 (or 1.3%) increase from the schematic design (SD) cost estimate. The most significant variances from the SD estimate were: $81,000 increase in steel (additional toiuiaGe required to support the I" floor common area), a $113,000 increase in in electrical (more expensive meters and boxes, additional lighting in the units), and a $160,000 decrease in permit fees (we negotiated a lower water fee with the City). Early discussions with the development team indicate that a detailed coordination effort with the structural and mechanical engineers will allow us to realize overlooked efficiencies and realign the cost estimate with our SD expectations. We anticipate finalizing the DD estimate by mid-May and will provide an update (as well as a detailed comparison to the SD estimate and summary explanation) at the June Board meeting. Next steps: • Refine DD cost estimate; • Issue a general contractor (GC) request for proposals for distribution in early May and retain a GC by early June; and • Begin the construction documents phase. sr RED OAK PARK Previous Board Meeting: At the last meeting, we provided the following information: • A budget update where we indicated that 70% of our development budget had been spent; • A construction and leasing update at which point we had 34 units completed and 15 occupied by residents; • A description of the safety measures that are in place at Red Oak while the site is split between an occupied community and an active construction site; and • A solar update stating that we completed an amendment to our partnership agreement in March which allows for Investment Tax Credit equity to be used towards the installation of rooftop photovoltaic systems at Red Oak Park. Progress since the Previous Board Meeting: Budget Update: In April, our lender funded the tenth construction draw request of over $725,000, bringing our level of construction expenditures to 76% of the total project budget. We remain in a solid financial position on this project as we are slightly under budget with an ample contingency account. Construction Update: The four 4-bedroom units on the northern side of Raintree Place were finished in April, increasing our total completed units to 38 of 54 homes. Construction activities are now concentrated on the remaining 21 homes along the eastern property boundary and the Community Center. The remaining 21 units will be delivered in two increments; the hrstl l units are anticipated to be delivered in the second half of May and the remaining 10 homes are expected about a month later. For resident protection, we are continuing to separate the completed homes from the construction area with temporary fencing. In May, we anticipate the roadwork will be complete, weather permitting. The final roadwork will include the installation of crosswalks and the final layer of (lift) of asphalt. Leasing Update: Leasing activities also are continuing to progress. As of the end of April, we have ]eased 22 units. Although this number is two units below our commitment to our investor, we expect to make up ground as we head into the historically abundant spring leasing season. An open house for prospective residents is scheduled for May 13 as part of our marketing team's initiative to energize leasing activities. 3L Next steps: • Submit the I I" draw request to our lender in early May; • Increase attention on leasing activities, including increased marketing to prospective residents; and • Actively manage the construction site. This includes resident coordination during May as the roads will be shut down on two occasions for installation of the crosswalks and for the second and final layer (lift) of asphalt. BROADWAY WEST Previous Board Meeting: Last month, we reported successful submission of documentation to receive the project's final two Capital Installments from US Bank, after receiving approval on our draft tax returns and audited financials. We also reported receiving comments on our document package, which we would work to resolve. Progress Since the Previous Board Meeting: 3rd and 4th Capital Installments: We have addressed all issues and questions as posed by our investor, US Bank. We anticipate receiving the two Capital Installments in early May and will be able to report on the status at the meeting. Next steps a Receive 31d and 4th Capital Installments from US Bank. PROJECT TRACKING AND TIMELINE The following Development Division tracking tools, which are updated monthly, are attached to this memo: • Development Tracking Sheet • Project Benchmark Timeline 37 Lee Hill Permanent Supportive Housing Boulder Housing A 7fo.umx FlLnt. $L:: r 196,5 Princi ples Partners Guiding Help end chronic homelessness in Boulder County through the provision of housing and supportive services. Strive to fully integrate the building and its residents into the surrounding neighborhood. Design and construct an environmentally high performing building that is energy efficient, healthy, comfortable, and cost effective to operate. To that end, we intend to: • Expand Boulder County's Housing First program and inventory to reduce the costs of homelessness on the broader community. • Create a community that fosters a sense of home and self-determination. • Emphasize durability, efficiency, and utility without sacrificing quality, comfort, or beauty. • Further the missions of Boulder Housing Partners and the Boulder Shelter for the Homeless in all aspects of this new community. sit Lee Hill Permanent Supportive Housing Boulder Housing A Ho:u n,~ n mr. erin• 51,1 1 1966 Development Objectives Partners • Expand Boulder County's Housing First program and inventory to reduce the costs of homelessness on the broader community. • Create a community that fosters a sense of home and self-determination. • Emphasize durability, efficiency, and utility without sacrificing quality, comfort, or beauty. • Further the missions of Boulder Housing Partners and the Boulder Shelter for the Homeless in all aspects of this new community. • Target a not-to-exceed development cost to ensure the project will be competitive for construction funding and to minimize project debt-carry; • Focus on the life cycle cost in all design decisions and specifications to ensure the long-term viability of the housing community; • Plan for the potential accommodation of future and/or additional uses (commercial, retail, office, or residential) in order to ensure the project's perpetual financial viability; • Explore partnerships with local programs and services to provide support for the residents, capitalizing on existing community resources; and • Leverage alternative sources of financing, public/private partnerships, or other relevant methods to ensure the project's long term financial viability. • Ensure the building is aligned with the North Boulder Sub-Community Plan; • Make an appropriate statement regarding the building's visual impact on the surrounding context and precedence for future development in North Boulder; • Facilitate the integration of this community with its surroundings through neighborhood outreach and engagement; and • Create a place that evokes a sense of pride and distinction in North Boulder. • Meet or exceed the City of Boulder's high performance building and energy efficiency requirements, as well as the requirements of project financiers (i.e., CHFXs mandatory requirement to certify to Enterprise Green Communities criteria); • Maximize opportunities for residents to control their own environment and comfort level - to provide residents with the choice to bring the outside elements inside according to their own desires - fresh air, breezes, daylight, humidity, noises; • Provide flexibility for future incorporation of renewable energy features; and • Enhance the existing features of the site by emphasizing view corridors, utilizing bioswales for both drainage and landscape buffers, and landscaping with native species. • Design and operate the facility to maximize the safety and security of the residents of the new building and the surrounding neighborhood; • Provide high quality spaces for supportive services, such as staff training or resident health care; • Create a sense of comfort, stability, familiarity, personalization, privacy, peace, happiness, and aesthetics for our residents; and • Minimize features that create a feeling of institutionalization. YO D e v e o p m e n t T r a c k i n ~ May 2011 Research, Pre ~r Transition/ Leased-Up/ Evaluation, Development Lease-Up Completed On Hold or Red Oak Park Tracking Red Oak Park (Phase 1, 2,3) Existing Unit Acquisition Bridgewalk Wallace Acquisition Lee Hill Housing 28th Kalmia NoSoYarmo Valmont (ROP II) High Mar Armory Redevelopment Transit Village (RTD) Hogan Pancost Palo Park Iris Hawthorn Public Housing Conversion Tax Exempt Partnerships 44 Infeasible Technical Landmark Lofts Assistance Junior Academy Roaring Fork Orchard Grove Lee Hill Housing: adoption of guiding principles 1009 20 10 7717 3017 3013 Sep Oct Nn: lm Feb Ns i':''Y Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Au Sop Oct Nov Dec Jan Feb M.ar Apr Ma Jun Jul Aug Sep On Nov Dec Jan Feb Mar Apr May Jun Jul ~rM~~r , M i` Red Oak Park r•~ n i I su?[aaar L J Fn/vwA, High Mar AAAIY Ior pu Apply fu, hm:.a Credi's City OW Oie➢NuA Fw Ja ~ti pw « t~ii - L J~iJ 31,~TJ ~V 1tµ Lee Hill - - - Housing Apply "I Apply for Apply rer c-,nom -airy Cary 7.e Taz 0wvMw Kv Fande CrudA% aw 0e+darr 11 HP Dw Closing or ie Tmrt9n 04Aerne Propeaty „4PF'xrN '',a=W nvra. a~e}edvym:ni Fjpy fa 4eY Fu'; a. ul;. Cty Ae.Neprreri R•vri.r•.~'.r:~ - . IutC CaetN~hn GMRweead Okrr,:nc/rw,ca e,«e o ON ft RESOLUTION #6 SERIES OF 2011 A RESOLUTION FOR THE PURPOSE OF ACKNOWLEDGING THE SERVICES AND CONTRIBUTIONS OF LOUISE SMART AS A MEMBER OF THE BOULDER HOUSING PARTNERS BOARD OF COMMISSIONERS WHEREAS, Louise Smart served faithfully and effectively as a member of the Boulder Housing Partners Board of Commissioners for 22 years from 1988 until February 2011; and WHEREAS, Louise has a long and abiding interest in promoting the welfare of those needing to rely on affordable housing; and WHEREAS, Louise helped the Board develop its governance practices and she authored several documents that promote the excellence of the Board's work, particularly our Governance Document; and WHEREAS, Louise demonstrated her commitinent to BHP's mission and the welfare of our residents by serving as a founding member of the BHP Foundation helping that Board grow from a "compelling idea" to a broad-based, community-driven, effective non-profit whose mission is to enhance opportunities for BHP residents; and WHEREAS, Louise went out of her way to make fellow commissioners feel welcome and valued and graciously made her home available for BHP's annual dinner and songfest; and WHEREAS, Louise brought a keen attentiveness to the Commissioners' discussions by asking discerning questions, listening thoughtfully to the responses and pressing for better solutions; and WHEREAS, Louise brought her significant facilitation and community process skills to every interaction with BHP, helping the organization in many strategic and critical settings. NOW, THEREFORE, be it resolved that the Board of Commissioners does hereby thank Louise Smart for her two decades of contributions to Boulder Housing Partners. Adopted this 9th day of May, 2011 Boulder Housing Partners Board of Commissioners Angela McCormick Karen Klerman James Topping Scott Holton Chair Vice Chair Phil Lawrence Morten Hempel Stephen Eckert Suzy Ageton Valerie Mitchell Betsey Martens Executive Director