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Meeting Packet - Boulder Housing Partners - 6/13/2011 BOULDER HOUSING PARTNERS REGULAR MEETING OF THE BOARD OF COMMISSIONERS MAY 09, 2011, 2:30 PM 4800 BROADWAY, 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 (absent) Shannon Cox-Baker Public: Commissioner Hempel Tim Beal Commissioner Holton Liz Wolfert Commissioner Klerman Cindi Lapp 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. Public Participation There was no public participation. IV. Board Announcements Commissioner McCormick will be setting up a meeting for staff with a colleague who is interested in social venture investing. Commissioner Topping reported that the Mapleton Early Childhood Center was approved by the City Council. Commissioner Topping asked to work with a staff person to inventory BHP sites for the number of three to four year olds whose parents would like to be a part of the new preschool beginning in the fall of 2013. The Mapleton Center will focus on literacy training, and have free transportation for those who income qualify. Betsey introduced Cindi Lapp, BHP's new controller. 1 V. Board Committee Reports Governance Commissioners Ageton and Lawrence will convene the Governance Committee as needed. Finance Commissioner Topping reported that the March financials were reviewed at the Finance Committee meeting. The detailed audit report will be presented to the Commissioners at the Finance Committee meeting on June 6th at 4:00; all are invited to attend. Commissioner Topping also reported that the Finance Committee has been reviewing Betsey's employment contract and will finalize it by the June meeting for the Board's approval. Commissioner Topping also mentioned that BHP is reviewing options for refinancing the note with Thistle Housing for Sage Court. Resident Representative Council Commissioner Hempel reported that a couple of members of the RRC will be attending the upcoming Colorado NAHRO conference. He also reported that the RRC is proceeding with bylaw revisions and has discussed including in their revisions the requirement that a candidate for RRC President serve for two years on the RRC prior to being elected as President. Commissioner Hempel, representing the residents at Canyon Pointe, stated that the construction at Canyon Pointe has been stressful for the residents, especially the elderly. Willa, speaking for the BHP staff, thanked Commissioner Hempel for his comments and asked that he convey BHP's thanks to the residents for their patience during construction and remodeling of their units and apologize to the residents for the inconvenience. Foundation The regular foundation meeting will be held May 11, 2011. The Foundation will be welcoming Scott Holton to the Board but will be saying goodbye to Scott Koski who has been with the Foundation for 10 years. 2 Development Commissioner Eckert reported that the Development Committee discussed the Boulder Transit Village updates. The Development Committee also discussed the revised guiding principles for the Lee Hill development. Stuart thanked Commissioner Holton for his presentation at the Committee meeting comparing private vs. public sector analysis of a development project. VI. Approval of the Agenda Consent agenda items: 1. Minutes from April 11, 2011 2. Resolution #6: thanking Louise Smart 3. Bridgewalk refinancing recommendation COMMISSIONER TOPPING MOVED TO APPROVE THE CONSENT AGENDA. COMMISSIONER KLER_MAN SECONDED THE MOTION. The motion passed unanimously. VII. Action Agenda Directors Report Status of Moving to Work Designation Karen and Willa reported that MtW implementation is going well. They attended a MtW conference that was very helpful. They identified a network of other HAs that are willing to share information about their experience with MtW. BHP will be reaching out to the Lexington, Kentucky housing authority (who also received their designation this year). Rod Solomon has also been retained as an MtW consultant by Lexington. Focus this month will be on: ■ Baseline funding and contract negotiation with HUD • Creation of a draft budget • MtW contract signed by Sept 1 • Board role in the implementation • Work plan amendments 3 .3 Questions/suggestions from the Board: • Commissioner Lawrence wondered whether we anticipate an on- going MtW expense to the budget this year. Jim K. responded that there will be a budget request brought to the Board in June for outside budget spending on MtW activities to get through year-end. • Commissioner Topping suggested contacting the Public Policy program at the University of Colorado in Denver to identify a Doctoral Candidate for the required research for MtW. He suggested contacting Sam Fitch or Laurie Sheppard, the Dean of the School of Education who is also a national expert in public policy measurement methods. • Commissioner Lawrence suggested that board members from other MtW housing authorities may be able give advice to BHP's Board from their perspective. He suggested we also share measurement methods with Lexington. Management Report March Financials Jim K. confirmed that BHP had fiuushed up field work with its auditor, Plante Moran, and there will be no material findings in the audit report. He reminded the Board that the full details of the audit would be presented at the June 6t'` Finance Committee meeting. All 2010 tax credit audits and tax returns were completed and filed on time. Andy Proctor, Director of Housing for the City of Boulder joined the Board to give details about the cut in expected 2011 federal funding for the HOME and CDBG grants. Federal CDBG and HOME cuts this year will result in a 16.7%, or $167,000 decrease in available funds. Consequently, HOME funds for city projects will be decreased by $83,000. The city hopes that it will not need to cut programs where funding is obligated in 2011. The city does expect further cuts in these grants in 2012. Jim K. also presented the March financials including an explanation of the major adjustments to our 2010 balance sheet for March including the forgiveness of the Woodlands note by the city. Jim K. also reported that the Thistle note of $430,000 matures in June 2011. Thistle has requested an extension of the note, so we are reviewing options for amending the note. Commissioner Klerman wondered how their first Deed of Trust debt is collateralized and requested that we look at amortizing payments rather than interest only. Jim K. will report back. 4 7 Commissioner Topping suggested taking the Thistle discussion to the Finance Team for further discussion of possible options. Development Report Lee Hill Permanent Supportive Housing Shannon presented the revised, shorter, concise, easier to remember, version of the Guiding Principles for Lee Hill. The idea is to have guiding principles that are easy to remember and refer to when speaking to the public about the project. The Development Committee endorsed the revised principals. COMMISSIONER ECKERT MADE A MOTION TO ADOPT THE GUIDING PRINCIPLES FOR LEE HILL SUPPORTING HOUSING DEVELOPMENT. COMMISSIONER MITCHELL SECONDED THE MOTION. The motion passed unanimously. Shannon reported that Hillary Portell of Portell Works had been retained as the public relations consultant for the Lee Hill project. She is generating a list of questions to be addressed as she completes the community communication strategy. The strategy should be complete in two weeks. Staff will send the Board background information on homelessness issues, Boulder's Ten Year Plan to end homelessness and background on the city's camping ordinance. Commissioners should be ready to speak about the development and how it supports the City's position to find a permanent solution to end homelessness. Commissioner Mitchell suggested writing Op Ed opinions for the paper in support of permanent supportive housing initiatives. Shannon will talk with the PR consultant about the idea. Commissioner McCormick reminded the Board of the importance of consulting staff and/or the PR consultant before any public communication. Commissioner Holton suggcsted identifying other non-profit allies to help with public outreach. Commissioner Eckert said the issue is not about providing housing but the reasons for putting it in that location. Commissioner Mitchell stated the project could be viewed as providing another 31 spots in the city for more homeless people. Upcoming dates: ■ May 23rd Responses to Concept Plan ■ May 23t' Joint meeting with Shelter Board and BHP Development Committee ■ June 13 Housing First presentation by Greg Harms as the Board Development topic Broadway Liz notified the Board that BHP had received the last capital installment for the Broadway West development. High Mar Redevelopment: Shannon and Stuart informed the Board that on Friday of last week, CHFA announced the March 2011 round of LIHTC allocations. Unfortunately, High Mar was not a recipient. According to CHFA, BHP submitted a strong application; we did not receive any requests for modifications to the design, construction costs, operating budget, sources of financing, or AMI distribution. Shannon stated that, according to staff at CHFA, the primary reason High Mar did not receive an allocation was perceived competition with Josephine Commons, a senior LIHTC project being developed by Boulder County Housing Authority in nearby Lafayette. BCHA is slated to begin construction on Josephine Commons in July. Shannon stated that BHP will evaluate all of our options before determining whether to apply for LIHTC again on July 1St. She anticipates that staff will make a decision by the end of the month and will keep the Board posted. Shannon reported that there is also another senior development in Boulder County on the horizon, a development called Traditions. She will find out the background information on this project and report her findings to the Board. Commissioner Klerman wondered about the cost to hold up construction for two years. Staff will calculate the holding costs. The staff will keep the Board advised concerning the next steps. Red Oak Park The Commissioners, having just toured the property, all agreed that Red Oak Park looks great! Twenty three units are leased and construction is on schedule for all fifty-nine units. Commissioner Eckert asked about the planned programming for ROP. Commissioner Topping asked the number of applications yielding a lease. Tim suggested that the ratio was approximately 3:1 Tim also stated that BHP has contracted with Terri Marquant for extra scrutiny of the initial lease up files to make sure no mistakes are made. Commissioner Mitchell asked which types of units are leasing up the fastest. Tim stated that the larger units are leasing up quickly, the up/down flats are more challenging. 6 VIII. Adjourn COMMISSIONER KLERMAN MADE A MOTION TO ADJOURN THE REGULAR MEETING OF THE BOARD OF COMMISSIONERS. COMMISSIONER HOLTON SECONDED THE MOTION. The motion passed unanimously. The regular session of the Board of Commissioners adjourned at 4:00 pm SEAL DATE: 05/09/2011 ANGELA MCCORMICK, CHAIR Boulder Housing Partners BETSEY MARTENS Executive Director PENNY HANNEGAN Recording Secretary 7 MEMORANDUM To: Board of Commissioners From: Betsey Martens, Executive Director Subject: Director's Report Date: June 6, 2011 This month's Director's report includes: Consent: Action: Partnership Awards Contract for Employment: Executive Director Updates: Status of Moving to Work Designation National and NAHRO Update Q12 Employee Engagement Survey Results City Issues Affecting Affordable Housing Attachments: Q 12 Employee Engagement Survey Results Summary of City Issues Affecting Affordable Housing ACTION ITEMS: Partnership Awards The BHP Partnership Awards program recognizes the efforts of individuals, 'businesses, corporate partners, and non-profit and governmental agencies for their support of BHP and its mission. The award winners in the category of individuals, businesses and non-profit partners who make a difference are: Melissa Mercil & Debbie Rade, Adams County Housing Authority Debbie, Melissa and the entire organization at Adams County Housing Authority have been an incredible resource to BHP as we continue to transition to our new software system, Yardi. From our initial on-boarding to Yardi Systems and through our growth in using more of the software's functionality, they have helped us navigate system functions and shared best practices. They have guided us through forging ahead with their own functionality and in leading the local Yardi user group. We are very appreciative of their help! Sherry Kenyon, City of Boulder Fire Department Sherry has an 18 year history working with BHP. She was head of Boulder County Red Cross and helped our residents after the Northport fire. She is the Fire Safety Education I 8 COOrdinatOr with the City of Boulder Fire Department. In that capacity, Sherry has been a valuable partner for BHP assisting with bi-annual fire/flood emergency preparedness classes at the senior sites. Sherry works with resident services to do an annual evacuation drill at Arapahoe Court and flood preparedness presentations at Glen Willow. Randy Rothberg, Volunteer Randy teaches basic computer classes to residents at Kalmia. He weathered the initial start- up phase of the lab, contributing his knowledge and helping to ensure that every student had a working computer with the same programs. He has taught class every week since February 7. As a result of his dedication, students have learned basic computer skills, including how to turn on and off a computer, open a Word document, access the internet, and send an email, use MapQuest, and more. Students have requested that the classes continue beyond the requirement to earn a computer to take home. Pedro de la Cruz, Stephanie Jimenez, Cynthia Jackson, Kalmia Residents These residents have made outstanding contributions to their community and we thank them for their leadership, dedication, and support of other residents. ■ Pedro de la Cruz organized children interested in playing soccer at the Kahnia field, gardened and initiated bed bug emergency meetings. ■ Stephanie Jimenez gardened, created a clothing exchange, supports other residents and helped with community-clean ups. ■ Cynthia Jackson did graffiti clean-up, gardened, supports other residents and contributes to community-clean-ups. Employment Contract The Finance Committee has been reviewing drafts of an employment contract with consultation from City Attorney Kathy Haddock. We have all arrived at a contract form that we like and will present it in Executive Session for your consideration. The contract will come under separate cover. UPDATES: Status of Moving to Work Designation We'll be providing monthly updates as we prepare for our first year of Moving to Work (MTW) status, which will begin January 1, 2012. For your reference, the three statutory objectives of MTW are: 1. Create efficiencies in the administration of federal housing programs 2. Support families in movement to financial self sufficiency 3. Create more housing choices for low income people In addition, BHP added two additional objectives for our participation: 2 4. Pilot a rent policy that will encourage self-sufficiency, assure accurate reporting of income and ensure that customers are not rent burdened, and 5. Preserve, transform and revitalize our public housing. Contract negotiations: HUD has provided comments on our MTW application which will form the basis of our Year 1 MTW Plan. We have not yet received a draft contract from HUD, but anticipate it will be provided in advance of their site visit on June 9th and 10th. We will provide an update at the June 13th meeting. Public Housing Conversion The conversion process will consist of eight sites (approximately 330 units). Our initial process consists of property due diligence which includes title review and zoning approval history, learning about any relocation requirements, reviewing B14P's capital improvement plans, and looking at implementation. Checking our financial assumptions regarding 4% low income housing tax credits and the market for Private Activity Bonds has also been underway. These markets appear to have recovered, which confirms, or improves, some of our initial proforma assumptions. All these phases are underway and will lead to an initial implementation plan this fall. This plan will inform the waivers and variances that will be needed in the MTW agreement and set the format for our disposition applications in early 2012. Budget: Below is our proposed Year 0 budget. Since last month's meeting, we have kept the full budget amount the same, but made a few adjustments to add a review of BHP's property management structure and operating procedures, and to compensate staff for some additional duties that will be allocated to allow Karen Kreutzberg the time to plan and implement her Year 1 activities. We are requesting Board authorization to increase our authorized 2011 spending by $60,000, using Public Housing Cash. 3 Sources Public Housing Cash 5 60.000 Subtotal S 60.000 uses ConSUltantS Legal - Rod Solomon S 16.000 Rent reform S 1.000 Metrics S 4.000 BHP - prop. management revievv S 5.000 CU Fellotiv Hire S 8.000 BHP staff - capacity building S 2.000 Conversion Planning Due diligenge S 10.000 Special Soft),vareNardi upgrades S 8.000 Travel S 6.000 Oakland Complete Yardi in DC Scheduled I,deov England Scheduled NIT VV DC Planning NA.HRO!KY Maybe NAHRO.+MO Maybe Pacific ld1 2012 Subtotal $ GUN 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 work plan 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. The proposed adjustments to accommodate MTW are: Postponement of capital improvements work at Kalmia Postponement of redevelopment planning at Walnut Place Moving North Haven and 101 Pearl later in the year, and engaging the Development staff in the North Haven redevelopment Concentrate the Development staff's time on their major projects and go "light" on defining new opportunities and re-building the acquisition program Learning from our peer MTW agencies: As we continue to grow our capacity to take on MTW initiatives, we've been actively learning from our peers. We've established a connection with Lexington, KY, the other agency awarded MTW status this year. We've been able to connect with Tacoma, a newer MTW agency, and they had many helpful suggestions for negotiating our contract with HUD. In June, Willa Johnson will visit with the Housing Authorities of Keene, NH and Cambridge, MA, both of which have been very active MTW innovators. We have also attended an MTW Yardi users group, which will help us plan for how our finance and 4 property management software can be best utilized in our Year 1 activities such as rent reform. Rent Reform evaluation metrics Per HUD's requirement that our rent reform data be collected with a control group and in a controlled data environment, we have drafted a job description for an academic research associate to design and implement our baseline study. We are in the process of meeting with various CU departments to begin advertising the position. Q12 Employee Engagement Survey Results Attached for your review are the results of this year's Q 12 Employee Engagement Survey. These 14 multiple choice research-based questions are designed to help gauge whether employees feel engaged in their work. Research shows that when employees are engaged they enjoy their jobs and perform at higher levels than if they merely "show up" and employee engagement correlates directly with a positive impact on key benchmark metrics. We are pleased to report that the 2011 survey yielded a 93 % response rate and, as you can see, a very high level of engagement overall. We'll be repeating this survey on an annual basis so that we can both trend the information and stay informed about the engagement of our staff from year-to-year. Results will be distributed, and supervisors will be asked to use this information to work with their teams to create the best possible working environment and in turn, to provide the most exceptional service possible to members of our community. 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 /Z 2011 Employee Survey 1 know what is expected of me at work. Q~ Answer Options Response Response 39 Percent Count Strongly Agree 72.2% 39 Somewhat Agree 24.1% 13 Neither Agree nor Disagree 1.9% 1 13 Somewhat Disagree 1.9% 1 Strongly Disagree 0.0% 0 1 1 - 0 answered question 54 skipped question 0 Strongly Agree Somewhat Neither Agree Somewhat Strongly Agree nor Disagree Disagree Disagree I have the materials and equipment I need to do my work right. Q2 Answer Options Response Response 32 Percent Count Strongly Agree 59.3% 32 Somewhat Agree 31.5% 17 17 Neither Agree nor Disagree 3.7% 2 Somewhat Disagree 5.6% 3 , 2 3 Strongly Disagree 0.0% 0 D answered question 54 skipped question 0 Strongly Somewhat Neither Somewhat Strongly Agree Agree Agree nor Disagree Disagree Disagree I At work I have the opportunity to do what t do best every day. Answer Options Response Response Q Percent Count Strongly Agree 45.30% 24 Somewhat Agree 34.0% 18 24 Neither Agree nor Disagree 11.3% 6 tg Somewhat Disagree 9.4% 5 Strongly Disagree 0.0% 0 answered question 53 6 skipped question 1 --a Strongly Somewhat Neither Agree Somewhat Strongly Agree Agree nor Disagree Disagree Disagree }1 W In the last seven days, I have received recognition or praise for doing good work. Answer Options Response Response Percent Count Q4 Strongly Agree 46.3% 25 25 Somewhat Agree 24.1% 13 Neither Agree nor Disagree 22.2% 12 Somewhat Disagree 3.7% 2 Strongly Disagree 3.7% 2 13 12 answered question 54 skipped question 0 2 2 Strongly Somewhat Neither Agree Somewhat Strongly Agree Agree nor Disagree Disagree Disagree My supervisor, or someone at work, seems to care about me as a person. Answer Options Response Response Q5 Percent Count Strongly Agree 73.6% 39 Somewhat Agree 15.1% 8 39 Neither Agree nor Disagree 9.4% 5 Somewhat Disagree 0.0% 0 Strongly Disagree 1.9% 1 answered question 53 skipped question 1 $ 5 ~ D 1 Strongly Somewhat Neither Agree Somewhat Strongly Agree Agree nor Disagree Disagree Disagree There is someone at work who encourages my development. Answer Options Response Response Q6 Percent Count 28 Strongly Agree 51.9% 28 Somewhat Agree 33.3% 18 Neither Agree nor Disagree 7.4% 4 18 Somewhat Disagree 5.6% 3 Strongly Disagree 1.9% 1 answered question 54 skipped question 0 4 3 1 Strongly Somewhat Neither Agree Somewhat Strongly Agree Agree nor Disagree Disagree Disagree r At work, my opinions seem to count. Answer Options Response Response Q7 Percent Count Strongly Agree 40.7% 22 22 22 Somewhat Agree 40.7% 22 Neither Agree nor Disagree 11.1% 6 Somewhat Disagree 5.6% 3 Strongly Disagree 1.9% 1 answered question 54 6 skipped question 0 3 Strongly Agree Somewhat Neither Agree Somewhat Strongly Agree nor Disagree Disagree Disagree The mission or purpose of BHP makes me feel my job is important. I ~ Answer Options Response Response Q8 Percent Count Strongly Agree 73.6% 39 Somewhat Agree 15.1% 8 39 Neither Agree nor Disagree 11.3% 6 Somewhat Disagree 0.0% 0 Strongly Disagree 0.0% 0 answered question 53 skipped question 1 8 6 0 0 M Strongly Agree Somewhat Neither Agree Somewhat Strongly Agree nor Disagree Disagree Disagree My fellow employees are committed to doing quality work. Answer Options Response Response Percent Count Q9 Strongly Agree 51.9% 28 Somewhat Agree 37.0% 20 28 Neither Agree nor Disagree 3.7% 2 Somewhat Disagree 5.6% 3 20 Strongly Disagree 1.9% 1 j answered question 54 skipped question D 2 3 Strongly Somewhat Neither Agree Somewhat Strongly Agree Agree nor Disagree Disagree Disagree I have a best friend at work. Answer Options Response Response Percent Count Q10 Strongly Agree 31.5% 17 Somewhat Agree 20.4% 11 17 16 Neither Agree nor Disagree 29.6% 16 Somewhat Disagree 9.3°% 5 11 Strongly Disagree 9.3% 5 answered question 54 skipped question 0 5 5 Strongly Agree Somewhat Neither Agree Somewhat Strongly Agree nor Disagree Disagree Disagree In the last six months, someone at work has talked to me about my progress. i Answer Options Response Response Percent Count Q11 Strongly Agree 64.8°% 35 35 Somewhat Agree 18.5°% 10 Neither Agree nor Disagree 13.0% 7 Somewhat Disagree 3.7% 2 Strongly Disagree 0.0°% 0 answered question 54 skipped question 0 iD 7 ■ ■ 2 0 ti Strongly Somewhat Neither Agree Somewhat Strongly This last six months, I have had opportunities at work to learn and grow. Answer Options Response Response Q12 Percent Count Strongly Agree 64.2°% 34 34 Somewhat Agree 26.4% 14 Neither Agree nor Disagree 7.5% 4 Somewhat Disagree 1.9% 1 Strongly Disagree 0.0% 0 14 answered question 53 skipped question 1 4 _ 1 0 Strongly Agree Somewhat Neither Agree Somewhat Strongly Agree nor Disagree Disagree Disagree I am able to maintain a healthy balance between my work and personal life. Answer Options Response Response Q13 Percent Count Strongly Agree 35.8% 19 2.1 Somewhat Agree 39.6% 21 19 Neither Agree nor Disagree 9.4% 5 Somewhat Disagree 13.2% 7 Strongly Disagree 1.9% 1 answered question 53 skipped question 1 Strongly Agree Somewhat Neither Agree Somewhat Strongly Agree nor Disagree Disagree Disagree 1 am motivated to go above and beyond what is required. Answer Options Response Response Q14 Percent Count Strongly Agree 55.6% 30 Somewhat Agree 35.2% 19 Neither Agree nor Disagree 5.6% 3 Somewhat Disagree 0.0% 0 lg Strongly Disagree 3.7% 2 answered question 54 skipped question 0 3 2 Stronglyngree Somewhat Neither Agree Somewhat Strongly Agree nor Disagree Disagree Disagree Please select your department: (Helpful, but not required) _ Answer Options Response Response i Percent Count Q15 Maintenance 34.3% 12 Leasing 28.6% 10 12 Admin 14.3% 5 10 Finance 11.4% 4 Development 2.9% 1 Resident Services 8.6% 3 answered question 35 5 skipped question 19 3 Maintenance Leasing Admin Finance Development Resident Services ATTACHMENT Summary of Current City Issues Affecting Affordable Housing New Fair Market Rent Data for Boulder The National Low Income Housing Coalition (NLIHC) published new fair market and wage data on all market areas throughout the country. NLIHC is an organization out of Washington D.C. that advocates for policy supporting the needs of low-income households. Please visit www.nlihc.orR for more information. Below please find their fair market rent report for the Boulder market area. This data continues to prove the dramatic need for affordable rental housing within the City of Boulder: In Boulder MSA, the Fair Market Rent (FMI2) for a two- bedroom apartment is $1,102. In order to afford this level of rent and utilities, without paying more than 30% of income on housing, a household must earn $3,673 monthly or $44,080 annually. Assuming a 40-hour work week, 52 weeks per year, this level of income translates into a Housing Wage of $21.19. In Boulder MSA, a minimum wage worker earns an hourly wage of $7.25. In order to afford the FMR for a two-bedroom apartment, a minimum wage earner must work 117 hours per week, 52 weeks per year. Or, a household must include 2.9 minimum wage earner(s) working 40 hours per week year- round in order to make the two bedroom FMR affordable. In Boulder MSA, the estimated mean (average) wage for a renter is $13.26 an hour. In order to afford the FMR for a two- bedroom apartment at this wage, a renter must work 64 hours per week, 52 weeks per year. Or, working 40 hours per week year-round, a household must include 1.6 worker(s) earning the mean renter wage in order to make the two-bedroom FMR affordable. Monthly Supplemental Security Income (SSI) payments for an individual are $674 in Boulder MSA. If SSI represents an individual's sole source of income, $202 in monthly rent is affordable, while the FMR for a one-bedroom is $878. A unit is considered affordable if it costs no more than 30% of the renter's income. Update on Diagonal Plaza Diagonal Plaza, the aging shopping center at 30t" St. and Iris Ave. and next door to our Diagonal Court public housing community, has been at the center of discussion in the past few months. The City began considering its role in the future of Diagonal Plaza during 2010. The City utilized a development feasibility analysis and an Urban Land Institute technical assistance panel (TAP) to generate a recommendation for moving forward with a City-initiated redevelopment. In 2011, the City Council included the Diagonal Plaza redevelopment issue as one of its top five work priorities. As a first step, the City staff recommended conducting a blight study of the site to determine its eligibility for redevelopment through eminent domain and City tax-increment financing. At its April 26 meeting, the City Council decided not to move forward with a blight study, indicating its preference to encourage incremental change on the site by owners, commercial tenants, and developers. Since April 26, BHP and City staff have met to discuss BHP's role in catalyzing development at Diagonal Plaza. Because we will be rehabilitating the Diagonal Court public housing community as part of our Moving to Work initiatives, it is possible we could encourage new connectivity and incremental development as part of the rehabilitation, using our eminent domain authority and development experience. We will update the Board as new opportunities emerge through these discussions with the City. Considering Youth Within Boulder's Homeless Population Addressing homelessness in Boulder has generated significant community and official dialogue and attempts to provide for the needs of the homeless members of our community. Recently, an Informational Item was provided to City Council about the presence, characteristics, and needs of homeless youth (aged 18 and younger) in Boulder. The information is intended to be used in generating a City strategy for supporting these youth. This report indicated that a 2009 point-in-tim6 purvey counted more than 200 homeless children and youths within the city. Although many of these youth belong to homeless families, about 10% were discovered to be unaccompanied. These unaccompanied youth are often homeless because they ran away from home, were discharged from foster care or incarceration, and some of them face the additional pressures of parenthood. Often these unaccompanied youth cannot access supportive services due to their age. In fact, the report indicated that Attention Homes was the only community organization that provided emergency shelter to homeless youth, although a few more organizations provide non-housing services to these youth. The City's Ten-Year Plan to Address Homelessness indicates that strategies for ending homelessness should target those of all ages. To that end, the City has offered Attention Homes the opportunity for funding and technical assistance to serve more homeless youth according to their specialized outreach and support model. lam/ Update on New City Board Appointees On March 15, the City Council appointed several new members to its Boards and Commissions. Of note, John Wyatt of Wyatt Construction (our contractor at Red Oak Park) was appointed to the Boulder Urban Redevelopment Authority (BURR). Also, our long-time friend Aaron Brockett (Holiday Neighborhood HOA president) was appointed to the Planning Board. Update: Orchard Grove Mobile Home Park Land Use Designation During its joint hearing about changes to the Boulder Valley Comprehensive Plan (BVCP), the Planning Board voted down a proposed land use designation change for the site of the Orchard Grove Mobile Home Park (at 30th St. and Valmont Rd.) The Orchard Grove Mobile Home Park had requested that its BVCP land use designation be changed from Medium Density Residential to Manufactured Housing. City Council will vote on the BVCP changes at its June 7 hearing. 0`~4 MEMORANDUM To: Board of Commissioners From: Management Staff Subject: Report of Activity Date: June 6, 2011 This month's Management report includes: Consent: None Action: April 2011 Financial Summary Resolution #7: Sage Court Note Receivable Resolution # 8: Approval of the 2010 Audit North Haven Redevelopment Options Updates: Occupancy Status and Net Rental Income Red Oak Park lease up Bridgewalk Phase 2 and Phase 3 Renovation Update Resident Services update Attachments: 2011 April Financials North Haven Financial Analysis Red Oak Park Lease Up CONSENT ITEMS: None at this time ACTION ITEMS: Apri12011 Financial Summary April 2011 Boulder Housing Partners year-to-date revenues of $6,1101,886, expenses of $5,651,293 and extraordinary gains from the settlement of an insurance claim and debt forgiveness of $424,016, results in net income of $874,609 versus a budgeted income of $628,373. The positive variance is explained as follows: Statement of Activities Total Operations Revenue of $1,957,346 (A) continues in line with budget. HCV Revenues of $2,261,099 (BI) are unfavorable to budget by $44,045. This relates to underfunding by 1 2/ HUD of the 81 new vouchers. This is more than offset by the favorable I-ICV Expense variance of $171,898 (B2) which relates to the slower than budgeted lease up of the 100 new vouchers. Non Federal Grants and Donations variance of $87,595 (C1) and Federal Capital Grants variance of $106,227 (C2) are timing differences between the budget and actual spending on capital projects. Federal Service Grants Revenue variance of $63,615 (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. Miscellaneous Revenue positive variance of $167,957 (E) includes a rebate from Xcel Energy for the solar system installed on Walnut Place. This cash will be used to complete the Northport Solar system. Extraordinary Maintenance of $107,543 (F) includes expenditures for electrical work at Madison and Hayden Pl.; hazardous materials testing across all sites; rental license inspection fees; HVAC repair work at Sanitas Pl. and bedbug work across the portfolio. We will be reviewing these expenses in detail in June to insure treatment as extraordinary is appropriate. This may result in a reclassification of a portion of this expense from Extraordinary to Contract Labor and Repairs in the June statements. Water and Sewer positive variance of $34,420 (G) includes $22,000 from the Public Housing Properties which is reflective of the Energy Performance work to reduce consumption. Amortization expense variance of $20,440 (H) 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 (I) 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 $321,420 (J) 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 ($468,052) (K) results from the collection of grant revenues and developer fees from Broadway East and West. Restricted Cash (L 1) 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 Energy Performance Contract. There is a corresponding increase in Capital Assets (L2). The Canyon Pointe project was completed in April. The Public Housing project will be completed in June. ZZ Accounts Payable declined by $840,342 (M) 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 $5,340,150 (N) reflects the entire balance due of $5,048,000 on the Bridgewalk Loans. When we complete the refinance of this loan, this balance will again reflect only the amount due in the next 12 months. The decline in Notes Payable of $252,000 (01) and Accrued Interest Payable of $70,728 (02) relate to the forgiveness of the Woodlands note by the City of Boulder. The increase in Mortgages Payable of $337,546 (P) relates to additional draws made against the Mercy Loan for Bridgewalk construction work offset by normal amortization payments. Statement of Cash Flows The Statement of Cash Flows provides detail on the overall year-to-date increase in Cash and Cash equivalents of $321,420 (Q). The significant items year-to-date are the collection of receivables (R) and the reclassification of the restricted cash for Red Oak Park to unrestricted (S). Portfolio Analysis Report Overall performance of the portfolio remains strong with BHP debt service coverage at a combined 1.43 and the Tax Credit entities at 1.40. Bridgewalk remains strong during the rehab process at 1.51 and Canyon Pointe is still covering the additional debt load from the reallocation from Midtown, Glen Willow and North Haven. The portfolio analysis now shows the 4 properties that support the single loan at First Bank separately from the rest of the Workforce properties. The subtotal represents the actual totals for all 4 properties and indicates a Debt Service Coverage Ratio of .91 for the loan. This is substantially affected by the rehab work currently underway at Arapahoe East. As each unit becomes vacant, we are completing modernization of the kitchens and bathrooms and installing new flooring. This extended vacancy is resulting in lower than budgeted rental income. Without this vacancy, Arapahoe East would have a debt service coverage ratio of approximately 0.98 and the consolidated loan would be at approximately 1.05. Resolution #7: Sage Court Note Receivable Background: BHP developed the property at 2965 Valmont Road ("Sage Court") in the late 1980s using money raised from various sources. BHP intended to "project base" some HCV vouchers at the property but HUD at the time did not allow a HA to manage a project using their own project based vouchers. To resolve this voucher issue, BHP created a shell corporation to hold the property. HUD still would not allow this project based voucher management unless the Corp. was truly "arm's length." As a result, the Corporation created by BHP recruited a separate board of directors, filed as a 50103 and used this asset as the seed project to become independent, thus creating Thistle Community Housing, Inc. 3 -713 The BHP Board at the time (1989) directed staff to create a note for the amount owed to BHP. The original loan dated March 22, 1989 was secured by a deed of trust. The original principal balance was $240,000. This was revised to $215,000 in an amended note dated January 12, 2000. Interest on the note accrues at a higher rate than the payments thus the current loan now has principal due of $215,000, unpaid accrued interest due of approximately $228,000. Current Status: • The existing note matures on June 20, 2011. • Thistle has requested an extension of the maturity to align with the first mortgage maturity date of July 15, 2019 and a reduction in the rate of interest accrual. • BHP's objective is to be paid-in-full for all outstanding principal and accrued interest when the property refinances the first mortgage in July, 2019 and earn interest at least equal to our current borrowing rate in the interim period. • BHP's security interest in the property will not change as a result of the amendment and restatement of the note. • We are not making a new loan simply restating the terms of the existing loan to accommodate Thistle while improving the cash flow to BHP. In order to accommodate Thistle we are proposing that we: (1) Add the exiting accrued interest to the principal balance of the note resulting in an Amended and Restated Note balance of $443,561.56; (2) Reduce the interest accrual rate to 4.25%; (3) Require the full amount of interest be paid annually; and (4) Require all principal to be due in one balloon payment on the maturity date of July 15, 2019. This will result in annual interest payments to BHP of $18,851.37. This is approximately $10,000 more than previous has been paid. Based on the facts as outlined above, the Finance Committee brings the following recommendation for the Amended and Restated Note and recommends approval of Resolution #7: Principal balance: $443,531.56 Interest rate: 4.25% Maturity date: July 15, 2019 Interest Payments: Annually Principal Payment: Balloon on maturity date Resolution #8: Approval of 2010 Audit for submission to HOD Audit Partner Linda Yudasz from Plante and Moran presented the Audit of the 2010 financial statements at the Finance Committee meeting on June 6, 2011. She reported that the opinion expressed in the Independent Auditors Report was a clean opinion with no exceptions. The Boulder Housing Partners financial statements are presented fairly, in all material respects, and in conformity with accounting principles generally accepted in the United States of America. She reported that their Report on Internal Control over Financial Reporting and Compliance did not disclose any deficiencies in internal control over 4 z~ financial reporting that they considered to be material weaknesses. Finally she reported that their Report on Compliance with Requirements Applicable to Each Major Program indicated that in their opinion, BHP complied in all material respects with the compliance requirements that could have a direct and material effect on each of its major federal programs. Linda complimented all the BHP staff for its diligence and control procedures that have resulted in no material audit findings for the 2nd year in a row. This will result in BHP becoming a low risk auditee in 2011 resulting in a reduction in the amount of testing they will be required to perform. Based on the opinion issued by Plante & Moran and their review of the 2010 Financial Report with Supplemental Information, the Finance Committee recommends approval of the report for submission to HUD pursuant to Resolution 48. North Haven Redevelopment Options Exploring redevelopment options for North Haven was identified as a work plan item for 2011. With this memo, we bring our first round of thinking for Board discussion and feedback. We are seeking Board approval to notify CHFA that we might opt out of our HAP contract in 2012. We would be back to the Board with further follow-up and thinking later this year. Background North Haven (NH) is a two-story apartment building located in the Newlands neighborhood that was built in the 1960s and acquired by Boulder Housing Partners (BHP) in 1991. The building consists of 8 units: 1 one bedroom unit, 4 two bedroom units, and 3 three bedroom units. All units are rent restricted as part of a Section 8 contract. NH is intended for families, with a preference given to families that are victims of domestic violence. When appropriate, tenants are assigned case managers from Safehouse Progressive Alliance for Nonviolence (SPAN). Currently five of the eight households are working with SPAN. While the property is currently financially stable, and carries no debt, staff has concerns about its long term sustainability, based on four factors: • High operating expenses • Deferred capital needs • High vacancy rate • New thinking about housing this population NH offers adequate transitional housing, however the interiors and exteriors are outdated; the building and its systems are old and the building has significant structural repairs required for which there isn't funding. These factors have made it difficult to attract tenants and have led to unusually high operating expenses and a substantial need for capital expenditures in the foreseeable future. Furthermore, demand for the specific type of housing that NH provides is sporadic and when a tenant transitions out of NH it often takes an extended period of time to re-lease vacant units. NH is currently at 87% occupancy compared to 98% for the BHP portfolio. Months often go by before an appropriate tenant can be found and vacant units can be re- leased: North Haven Occupancy (2008-2011) i zoo. 110% - - - - - - - . - - - - - 100%.1 9DS - % Occupied 80X 7D% 6D% cA4 atA$ ash e4A~ o~~~ a A~ ac~~ aye eQp~ a°A~ acy0 ac,YO av~O ,J\10 e~ti0 o,.p acti, ~a d' is ~ s c• ~ d` ~ ~ 5 ~ S ~ ~ ~ ~ Historic Operating Expenses NH's operating expenses are unusually high. We compared NH with the other two properties under Section 8 contracts - Canyon Pointe and Glen Willow. NH's Net Operating Expenses on a per unit per annum (PUPA) basis are more often than not above those for Canyon Pointe and Glen Willow: Net Operating Expenses (PUPA) $9,000 - - - - - - - - - $8,000 f $6,000 -North Haven $5,000 - J -Canyon Pointe* --Glen Willow' $4,000 $3,000 2007 2008 2009 2010 2011 *Canyon Pointe and Glen Willow are comparable to North Haven in that they are part of the same Federal Affordable Housing Program 6 ~r Other BHP properties that share similar characteristics of size and age include Arapahoe East, Midtown, and Sanitas Place. (Arapahoe East has a spike in expenses in 2011 because we are doing major renovation work.) Again, operating expenses at NH are often significantly higher than these comparable properties: Net Operating Expenses (PUPA) $11,000 $10,000 $9,000 $8,000 $7,000 -North Haven $6,000 Arapahoe East' Midtown's $5,004 - -Sanitas Place` $4,000 $3,000 2007 2008 2009 2010 2011 *Arapahoe East, Midtown, and Sanitas Place are comparable to North Haven in that they are similar in size Finally, looking at properties that are similarly service enriched, NH's expenses are on par with Woodlands, and considerably higher than Broadway East: Net Operating Expenses (PUPA) $9,000 $8,000 $7,000 - - - - - $6,000 $5,000 $4,000 ! g North Haven $3,000 - Broadway East* ---Woodlands* $2,000 - $1,000 - - 2007 2008 2009 2010 2011 *Broadway East and Woodlands are comparable to North Haven in that they are both "Service Enriched" 7 27 When looking at the above graphs, it would appear that NH's operating expenses are coming down in 2011. While this is true, it is important to note that operating expenses (PUPA) for all properties in 2011 are only based on four months of data and will fluctuate as the year goes on. Future Expenses As mentioned above, NH is old and will require substantial capital expenditures in the future. When compared to similar BHP properties, planned capital expenditures over the next eight years for NH, on a PUPA basis, are well above many of BHP's existing properties: Total Capital Needs (PUPA) $90,000 $80,000 $70,000 $60,000 $50,000 $40,000 ■ North Haven $30,000 4 Canyon Pointe` Glen Willow* $10,000 _r ~ 1. 8 Year Total *Canyon Pointe and Glen Willow are comparable to North Haven in that they are part of the same Federal Affordable Housing Program Total Capital Needs (PUPA) $90,000 - $so,000 $70,000 $60,000 $50,000 ■ North Haven $40,000 a Arapahoe East* $30,000'K+c - ®Midtown* $20,000 ■ Sanitas Place* $10,000 - 8 Year Total *Arapahoe East, Midtown, and Sanitas Place are comparable to North Haven in that they are similar in size 8 z8 Total Capital Needs (PUPA) $90,000 - - - - - - - $80,000 $70,000 $60,000 $50,00o $40,000 ■ North Haven $30'000 Woodlands* $20,000 $10,000 8 Year Total *Woodlands is comparable to North Haven in that they are both "Service Enriched" Options going forward We've reviewed the past property operations, the concerns of staff and our partner Safehouse Progressive Alliance, and identified these potential options (listed in rough order of staff preference): 1. Sell the property 2. Redevelop the site 3. Renovate the building All of the options present some level of challenge. Boulder House Inc., a BHP entity, is the current owner of North Haven, and in the bylaws the Corporation must sell all assets to a 501(c)3 or equivalent. When selling this asset, we could market the property to a non- profit buyer for a determined period, or amend the bylaws if a non-profit buyer is not forthcoming. This amendment would need to be voted on by the BHP Board of Commissioners. The most recent appraisal we have on the site is from 2003 and it appraised at $850,000 for market value. There are no recorded covenants on the property through the county recorder's office. The second option would be to redevelop the site. The current building is non-conforming to today's zoning requirements, so we would only be able to build one unit in place of the current eight units. The next steps in this process would be to meet with the city staff to discuss the options of a conditional review process to keep the current density. We are not recommending rehabilitation of the property due to the current state of the building and foundation. We have done minor renovations to this site over the past few years, and the overall condition of the property continues to decline. 9 SPAN Partnership Tim Beal, Lindsey Moss and Karen Kreutzberg met with Anne Tapp, Executive Director of SPAN, last month. In a previous conversation, Anne had shared that some elements of the NH program are not a perfect fit with their current transitional housing philosophy. Under the current agreement, SPAN selects eligible clients to lease units at NH and receive case management services. However, once a unit is rented, housing is no longer linked to participation in SPAN's program. A resident may stay as long as she wishes, provided she is lease compliant. The two -three year transitional program has also lost some favor in the support services world, based on a new preference for short term emergency housing during crisis (stays can range from a few days to a few months) followed by permanent stable housing. We have discussed possibilities for replacement housing, the physical condition of North Haven, the possibility of disposing of the asset, and how we would communicate with the residents. SPAN is open to exploring other options to better serve this population, including an expanded version of our new master lease partnership at Twin Pines. If we decide to change the current use of North Haven, we will work closely with SPAN and the residents in order to assure a smooth relocation with housing assistance from some source. We have plans to meet again with SPAN in August and bring in more staff to explore issues, concerns, options, commuzucation strategy, etc. Opt-out timing and process Currently, we renew the Section S Project Based Contract on a yearly basis. The contract runs from December 1 through November 30 each year. We must give CHFA a written request to renew the North Haven contract 120 days before contract expiration (on or before August 1 each year). Additionally, we are required to give the North Haven residents notice of what our intent is concerning the contract at least 12 months in advance. Therefore, every year on December 1, we deliver a notice to the residents informing them that the intent of BHP is to renew the contract when it expires in 12 months. In order to opt out of the contract, we must give CHFA notice in August 2011 that: 1) We wish to renew the contract for one more year, and 2) After November 30, 2012, we wish to opt out of the contract Once we have given CHFA notice of our intent to opt out, we have until August 1, 2012 to change our decision and renew the contract. CHFA will request replacement vouchers from the Office of Public and Indian Housing for the residents assisted under the contract. The request to administer those vouchers would go to the local Housing Authority, which in this case would be BHP. The replacement vouchers are dependent on funding from HUD. Our recommendation is that on August 1, 2011, we would give CHFA notice that we intend to renew the contract for one more year (through November 30, 2012), as well as notice that we would opt out of the contract as of November 30, 2012. We would give notice to the residents on December 1, 2011 that we would not be renewing the contract with HUD for assistance when it expires November 30, 2012. 10 30 Questions for the Board: • Are we going down the right track with our proposed options for the property? • If we were to pursue sale, does the Board support the approach of marketing to 501(c)3 for a fixed period of time? • Is the Board comfortable with opting out of the current HAP contract, in anticipation of a change to the site in 2012? • Do you have feedback on the draft guiding principles (below)? Draft Guiding Principles 1. Assist in providing a better living environment for the current residents a. Using replaceable vouchers; on site or elsewhere 2. Create a stable asset, through redevelopment or reinvestment of asset proceeds 3. Find a financially feasible solution for the property 4. Recognize the best qualities of the site a. Location b. Proximity to Safehouse c. Current density 5. Work with our partner to better serve clients 6. Simplify reporting burden 7. Link services and housing more effectively UPDATES: Occupancy Status and Net Rental Income The combined net rental income for all of BHP properties through April was $1,957,346 compared to a budgeted net rental income of $2,003,790 which is a negative variance to budget of $46,444 (-2.32%). The combined net rental income for all of the Tax Credit Properties through April was $768,167 compared to a budgeted net rental income of $746,509 which is a positive variance to budget of $21,658. Several of the BHP property groups are showing negative net rental income at the end of the April. The variances in Public Housing income are still 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 a result of a large number of vacancies at Bridgewalk and Arapahoe East. Staff has deliberately held units out of the rental pool for substantial rehabilitation at Bridgewalk and Arapahoe East. These rehabs are taking longer than anticipated. At the end of April there were 14 units under rehab at Bridgewalk and 4 units under rehab at Arapahoe Court. Staff anticipates higher than normal vacancy at Bridgewalk during this construction period which will run through the end of 2011. We have been mitigating vacancy loss through 11 rental concessions when possible. The refinance in August will provide approximately $100,000 in vacancy loss reimbursement to make up for some of the financial vacancy loss experienced during construction. We anticipate that this reimbursement funding will help us meet our 2011 budget goals at the property. The BHP year-to-date occupancy through April was 96.58%, compared to a budgeted occupancy rate of 97%. The combined physical occupancy rate for the Tax Credit portfolio year-to-date through April was 98.86%, 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 II is comprised of the two senior sites. Public Housing I properties Arapahoe, Diagonal, Iris/Hawthome, 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 (under construction) Vistoso - 267 units Total units combined - 995 April 2011 Net Rental Net Rental Net Rental Physical Occ Physical Occ Variance to Income - Income - Income - YTD Budget BudZet YTD Budget Variance Public 97.84% 97% 0.84% Housing - I $357,415 $369,320 ($11,905) Public 96.78% 97% -0.22% Housing - U $225,679 $235,008 ($9,329) PB Sec. 8 97.97% 97% 0.97% properties $414,944 $419,272 ($4.328) Work Force $955,978 $979,150 ($23,172) 94.89% 97% -2.11% BIIP 96.58% 97% -0.42% Portfolio combined $1,_957,_346 $2,003,790 ($46,444) Broadway 98.09% 97% 1.09% East $174,238 $166,332 $7,906 Broadway 97.19% 97% 0119% West $84,707 $82.743 $1,964 Foothills $306,918 $297,090 $9,828 100.00% 97% 3.00% Holiday $155,245 H$46,256 154,088 $1,157 98.83% 97% 1.83% Vistoso $47,059 $803 98.45% 97% 1.45% TC portfolio 98.86% 97% 1.86% combined $768,167 $746,509 $21,658 12 ,~3z Red Oak Park lease up The Red Oak Park lease up process is going very well. We have leased up 34 of the 35 units required in the Partnership Agreement, and 34 of the 39 available units as of the end of May. We anticipate having all 59 units available to lease by the end of June. The Partnership agreement states that we should have the site fully leased by the end of August. We currently anticipate having the majority of units leased by the end of July, which will catch us up on a very small "units months leased" deficit as of today. There are currently 11 former BMM families that have moved back into the neighborhood after residing somewhere else for the last couple of years. There is one additional BMM family that we anticipate moving into their new unit next month which will give us a total of 12 returning families. The majority of the BMM families were housed in BHP properties for the last couple of years. The turnover of these units has also contributed to higher then normal vacancy across the portfolio through April. Bridgewalk Phase 2 and Phase 3 Renovation Update Phase 2 BHP continues to manage the Phase 2 renovation work at Bridgewalk which includes re- grading, landscaping and structural repairs as well as the re-paving of the drive paths at the site. The project has been significantly delayed in recent weeks due to the wet rainy weather. We are working with the contractor on a variety of solutions to mitigate the delay. The hope is to have the project make up time and still be completed in early August. Grading and structural work is complete. Landscape work will proceed until late June. A new playground will be installed in mid July. Phase 3 We are well underway with the procurement of a General Contractor for the Phase 3 work. Phase 3 will include new siding, new windows, new roofs, new interiors, and new HVAC including central air conditioning for Bridgewalk. Construction drawings are complete. We have received pre-qualification submissions from General Contractors. Those that pass our minimum qualification requirements will be asked to bid the Phase 3 work. We will select a General Contractor by mid-July based on low bids and sign a construction contract concurrently with the release of the refinance proceeds. Resident Services Update The Resident Services Department received a NAHRO Award of Excellence for the innovative Learn to Earn Program at Kalmia. This program employs a volunteer tutor to teach basic computer skills and financial literacy skills in the new computer lab at the community center. After successful completion of the program, participants receive a refurbished computer for their home. Five residents completed the program in its first session. 13 3~ The Temple Hoyne Buell Foundation awarded the Boulder Housing Partners Foundation a grant in the amount of $10,080, for the Three-Step Parents Making a Difference early childhood education program for BHP low income families. This program is a partnership with the Colorado Statewide Parenting Coalition, which will train two residents to be trainers of their peers. Approximately 12-15 parents will participate in a 10-week parenting class that will teach them in-home activities to help prepare their children, age five and under, to be successful in school. US Bank has approved the use of the use of the $4,500 grant, received last year, to support a soccer field project that has been proposed by the youth of Kalmia. Last fall, a group of 10 youth, ages 8-12 years, presented a plan to the BHP Foundation for a soccer field at the Kalmia site. The project is moving forward and additional funding is being sought. BHP has received year 5 funding from HUD for the Public Housing Family Self- sufficiency Grant. The funding will allow BHP to continue this important program with some creative improvements that will fit in nicely with our MTW strategies for working with families. 14 BHP Statement of Activities April 30, 2011 YTD YTD Ref _ Actual Budget Variance $ % Var Revenue Operations Revenue Tenant Dwelling Rental $ 1,563,981 $ 1,586,377 $ (22,396) -1.4% Non Dwelling Rental Income 5,629 3,340 2,289 68.5% Rental Write-offs (15,751) (8,863) (6,888) 77.7% HUD-Operating Subsidy 15D,826 163,960 (13,134) -8.0% HAP Project Based Assistance 252,661 258,976 (6,315) -2.4% Total Operations Revenue A 1,957,346 2,003,790 (46,444) -2.3% Fee Revenue Asset Fee Revenue 29,120 29,120 0 0.0% Property Mgmt & Bkkpg Fee 186,242 187,068 (826) -0.4% Development Fees 30,000 37,500 (7,500) -20.0% Mgmt Fees - Tax Credits & S8 114,327 108,899 5,428 5.0% Total Res Svc Fee Income 80,820 72,979 7,841 10.7% Total Fee Revenue 440,509 435,566 4,943 1.1% Grants and Subsidies HCV-HAP Revenue B1 2,261,099 2,305,144 (44,045) -1.9% Non Federal Grants and Donations C1 162,405 250,000 (87,595) -35.0% Federal Capital Grants C2 348,03D 454,257 (106,227) -23.4% Federal Service Grants D 96,254 159,869 (63,615) -39.8% Total Grants and Subsidies 2,867,788 3,169,270 (301,482) -9.5% Other Revenue Tenant Late Fees 6,640 5,772 868 15.0% Tenant Work Order Charges 2,821 4,420 (1,599) -36.2% Tenant Reim - Utiiities 22,640 13,064 9,576 73.3% Interest Income 208,072 193,369 14,703 7.6% Total Laundry 21,833 22,740 (907) -4.0% Community Center Revenue 1,200 1,916 (716) -37.4% Maint Charges to Prop 401,630 365,000 36,630 10.0% Miscellaneous Revenue E 171,407 3,45D 167,957 4868.3% Total Other Revenue 836,243 609,731 226,512 37.1% Total Revenue 6,101,886 6,218,357 (116,471) -1.9% Expenses Salaries and Benefits Total Salaries 1,258,844 1,254,684 (4,16D) -D.3% Total Salaries and Benefits 1,258,844 1,254,684 (4,160) -0.3% Property Costs Management Fees 62,169 62,543 374 0.6% Maintenance Materials 72,850 82,294 9,444 11.5% Contract Labor & Repairs 166,999 234,878 67,879 28.9% BHP Contract Labor 336,705 287,800 (48,905) -17.0% Extraordinary Maintenance F 107,543 51,000 (56,543) -110.9% Garbage and Trash Removal 45,296 38,260 (7,036) -18.4% Water and Sewer G 59,913 94,333 34,420 36.5% Electricity 59,810 61,960 2,150 3.5% Gas 87,533 106,972 19,439 16.2% PILOT 35,123 33,040 (2,083) -6.3% HOA Fees 4,940 1,550 (3,390) -218,7% 1 Of 2 5171201111:47 AM BHP Statement of Activities April 30, 2011 YTD YTD Ref Actual Budget Variance $ % Var Total Property Costs 1,038,881 1,054,631 15,750 1.5% Operating Expenses Amortization Expense H 30,620 10,180 (20,440) -200.8% Asset Management Fee 29,120 29,120 0 D.D% Audit Fees 15,916 15,916 0 D.0% Background Checks 2,571 3,014 443 14.7% Bank Fees 1,843 2,120 277 13.1% Board Expense 2,371 2,084 (287) -13.8% Community Center Exp 440 440 0 0.0% Consultants 3,000 14,170 11,170 78.8% Depreciation 450,869 482,745 31,876 6.6% Dues and Fees 14,487 16,146 1,659 10.3% Expendable Equipment 1,483 14,482 12,999 89.8% HCV-HAP Expense B2 1,936,602 2,108,500 171,898 8.2% Insurance Expense 62,463 67,280 4,817 7.2% Interest Expense 1,126 2,800 1,674 59.8% Legal Expense 4,794 3,788 (1,006) -26.6% Mileage 2,193 3,738 1,545 41.3% Miscellaneous - Expense 7,367 7,628 261 3.4% Mortgage Interest Expense 345,469 335,473 (9,996) -3.0% Non-Salaried Personnel 9,280 14,800 5,520 37.3% Advertising/Marketing 2,971 5,158 2,187 42.4% Office Supplies 9,887 10,820 933 8.6% Phone Expense 16,596 20,424 3,828 18.7% Postage Expense 5,597 4,720 (877) -18.6% Printing Expense 11,658 10,400 (1,258) -12.1% Property Mgmt & Bkkpg Fee Exp 186,242 187,088 846 0.5% Publications - 39D 390 100.0% Resident Relocation 1,895 (1,895) 100.0% Res Svc/Strategic Planning Fee Exp 67,612 68,352 740 1.1% Staff Training 14,270 24,615 10,345 42.0% Service Grant Expense 90,755 118,391 27,636 23.3% Vehicle Expense 21,304 20,020 (1,284) -6.4% RRC Allocation 2,767 2,768 1 0.0% Total Operating Costs 3,353,568 3,607,571 254,003 7.0% Total Expenses 5,651,293 5,916,885 265,592 4.5% Net Income before Sale of Assets 450,593 301,472 149,121 49.5% Gain (Loss) on Disposition of Property 7,115 7,115 100.0% Extraordinary Income (Expense) 1 416,901 326.901 90,000 0.0% TOTAL NET INCOME (LOSS) $ 874,609 $ 628,373 $ 246,236 39.2% Note: Full year budget was adjusted by moving $715,000 from Federal Capital Grants to Non Federal Grants and Donations to reflect City of Boulder money designated from CHAP rather than CDBNG as anticipated. No net effect on budget 2 of 2 65120111147 AM ~6 BHP Balance Sheet April 30, 2011 and December 31, 2010 Actual Actual Net Change Ref April-11 December-10 YTD ASSETS Current Assets Unrestricted Cash and Cash Equivalents J $ 2,389,776 $ 2,068,356 $ 321,420 Reserved Cash - Replacements 687,106 731,270 (44,164) Accounts Receivable K 802,657 1,270,709 (468,052) Accounts Receivable-Tax Credits 46,186 108,187 (62,001) Prepaid Expenses 42,066 71,121 (29,055) Supplies-inventory 26,061 24,331 1,730 Total Current Assets 3,993,852 4,273,974 (280.1221 Restricted Cash Restricted Cash - Other L1 830,800 1,791,724 (960,924) Restricted Cash - Section 8 853,366 721,195 132,171 Restricted Cash - Tenant Security Deposits 387.917 368.795 (878) Total Restricted Cash 2,072,083 2,901,714 (829,631) Capital Assets Construction in Progress 3,195,094 4,493,040 (1,297,946) Furniture Fixtures and Equipment 493,914 465,941 27,973 Real Estate Assets-Land and Buildings 53,640,779 51,042,321 2,598,458 Less: Accum Depreciation Real Estate Assets (28,784,931) (28,334,063) (450,868) Total Capital Assets L2 28.544.856 27.667.239 877.617 Other Assets Notes Receivable 9,757,205 9,757,205 0 Interest Receivable Notes 3,372,843 3,222,076 150,767 Partnership Investments 432.625 432,625 0 Net Amortized Costs 822,512 853,683 (31,171) Total Other Assets 14,385,185 14,265,589 119,596 TOTAL ASSETS $ 48,995,976 $ 49,108,516 $ (112,540) LIABILITIES & EQUITY LIABILITIES Current Liabilities Accounts Payable M S 193,604 $ 1,033,946 $ 840,342 Accrued Payroll 141,664 66,922 (74,742) Accrued Payroll Taxes Payable 13,904 26,626 12,722 Accrued Compensated Absences 259,553 254,754 (4,799) Other Accrued Expenses 240,262 346,383 106,121 Deferred Revenue 203,568 283,665 80,097 Current Portion of Long Term Debt N 5,340,150 5,406,271 66,121 Prepaid Rent 39,586 12,683 (26,903) Security Deposits 386.357 389.365 3,008 Total Current Liabilities 6,818,648 7,820,615 1,001.967 Long-Term Liabilities Notes Payable 01 99,171 351,171 252,000 Accrued Interest Payable 02 9,342 60,070 70,728 Mortgages Payable P 14,321,614 13,984,068 (337,546) Bonds Payable 1,564,386 1,564,386 0 Total Long-Term Liabilities 15.994.513 15.979.695 (14,818) TOTAL LIABILITIES 22,813,161 23,800,310 987,149 EQUITY Total Equity 26,182,815 25,308,206 (874,609) TOTAL LIABILITIES AND EQUITY S 48,995,976 $ 49,108,516 $ 112,540 7 of 1 1517!2Q91'. 1-47 AM BHP Statement of Cash Flows for the Month and Year to Date Ending April 30, 2011 Ref Month to Date Year to Date Reconciliation of Net Income to Net Cash Provided (Used) by Operating Activities Net Income (Deficit) $ 456,703 $ 874,609 Adjustments to Reconcile Net Income to Net Cash Provided (Used) by Operating Activities Increase (Decrease) Accum Deprec/Amort 117,138 482,039 (Increase) Decrease in Accounts Receivable R (72,260) 530,053 (Increase) Decrease in Prepaid Expenses 13,110 29,055 Increase (Decrease) in Prepaid Rent and Security Deposits 7,400 23,895 (Increase) Decrease in Supplies/inventory (1,875) (1,730) (Increase) Decrease in Reserved Cash 61,624 44,164 (Increase) Decrease in Restricted Cash S 68,305 829,631 Increase (Decrease) in Payables and Accrued Expenses (86,668) (879,644) Increase (Decrease) in Deferred Revenue (49,813) (80,097) Total Adjustments 56,961 977,366 Net Cash Provided (Used) by Operating Activities 513,664 1,851,975 Cash Flows from Investing Activities (Increase) Decrease in Construction in Progress 509,146 1,297,946 (Increase) Decrease in Furniture Fixtures and Equipment (11,454) (27,973) (Increase) Decrease in Real Estate Assets (1,161,869) (2,598,458) (Increase) Decrease in Notes and Interest Receivable (54,422) (150,767) Net Cash Provided (Used) by Investing Activities (718,599) (1,479,252) Cash Flows from Financing Activities Increase (Decrease) in Current Portion of Long Term Debt (16,663) (66,121) Increase (Decrease) in Notes Payable 0 (252,000) Increase (Decrease) in Mortgages and Bonds Payable 307,198 266,818 Net Cash Provided (Used) by Financing Activities 290,535 (51,303) Net Increase (Decrease) in Cash and Cash Equivalents Net Increase (Decrease) in Cash and Cash Equivalents Q 85,600 321,420 Unrestricted Cash and Cash Equivalents - Beginning 2,304,176 2,068,356 Unrestricted Cash and Cash Equivalents - Ending $ 2,389,776 $ 2,389,776 1 of 1 6171201111:47 AM Boulder Housing Partners Cash Report April & March 2011 CASH NEEDED FOR OPERATIONS AND RESERVES Apr-11 Mar-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 $ 159,295.31 $ 159,239.47 $ 55.84 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 $ 70,000.00 $ 70,000.00 $ Landscaping Escrow - Set Aside $ 72,885.53 t _ 72,892.53 $ (7.00) Total cash needed $ 2,502,180.84 $ 2,502,132.00 $ 48.84 Total Unrestricted Cash Available for Operations $ 925,600.54 $ 793,053.33 $ 132,547.21 Restricted Cash for ROPJBMM $ 159,295.31 $ 159,239.47 $ 55.84 Unrestricted Cash Targeted for Woodlands Rehab $ 477,039.28 $ 470,858.48 $ 6,180.80 Unrestricted Cash Avail. for Replacements - Proj. Based only $ 24,940.53 $ 24,090.53 $ 850.00 Unrestricted Cash Available for Replacements $ 289,886.85 $ 331,732.88 $ (41,846.03) Development Funds Set Aside (Landscaping Escrow) t 72,885.53 1 72,892.53 $ (7.00) Total Cash available for Operations, Replacement and Set Asides _L1,949,648.04 $ 1,851,867.22 $ 97,780.82 Overage (Shortage) $ (552,532.80) $ (650,264.78) $ 97,731.98 IMPACT; We continue to run short of the Board designated targets for operations and reserves. The impact is 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. For example, beginning in May, we the Wodlands reserve shown above will be loaning Bridgewalk up to $250,000 to fund the rehab work pending the closing of the new Bridgewalk loan in August. CASH NEEDED FOR PUBLIC HOUSING AND PROJECT BASED PROPERTIES Apr-11 Mar-11 Change Restricted Cash - Public Housing & Project Based - Target $ 650,000.00 $ 650,000.00 $ - Restricted FSS Escrow $ 5,135.71 $ 4,639.71 $ 496.00 Restricted Cash - Public Housing & Project Based - Actual $ 1,158,517.26 $ 1,108,649,55 $ 49.867.71 Total PH and Project Based Cash $ 1,163,652.97 $ 1,113,289.26. $ 50,363.71 Overage (Shortage) $ 513,652.97 $ 463,289.26 $ 49,867.71 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 Apr-11 Mar-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 $ 355,250.95 $ 402,374.29 $ (47,123.34) Restricted Funds Available for Use on HAP and FSS escrow 5 893,062.66 4 854,310.62 5 38,752.04 Total Section 8 Cash S 1,246,313.61 $ 1,256,684.91 S (8,371.30) Overage (Shortage) $ 723,313.61 $ 731,684.91 $ (8,371.30) 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 181 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 BoulderHousin Parhrers - PorifoliaAnahisis 2011 Months in 4 Annualized Adjusted PAPA PUPA PUPA PUPA Adjusted Property Address Units EGI OpEx N01 Debt DSCR YTD Arapahoe Court 951,953 Arapahoe 14 $ 5,302 $ (7,275) $ (1,973) $ Diagonal Court 3265-3273 30th St. 30 $ 6,022 $ (4,943) $ 1,079 $ - Iris Hawthorne 1650-1690 Iris Ave. 14 $ 6,113 $ (4,835) $ 1,277 $ - Kalmia 3500 Nottingham 53 $ 6,56B $ (6,014) $ 494 $ Madison 1130-1190 35th St. 33 $ 5,670 $ (5,749) $ (79) $ Manhattan 660-690 Manhattan 43 $ 5,479 $ (6,161) $ (682) $ Public Housing I Sub Total: 187 $ 5,926 $ (5,835) $ 90 Northport 1133 Portland Place 50 $ 4,763 $ (5,746) $ (983) $ Walnut Place 11940 Walnut Place 95 $ 9,582 $ (5,125) $ 4,457 $ - Public Housing 11 Sub Total: 145 $ 7,920 $ 5,339 $ 2,581 Canyon Pointe 700 Walnut 82 $ 9,757 $ (5,597) $ 4,161 $ 3,915 1.06 Glen Willow 301-333 Pearl St. 34 $ 10,900 $ (7,631) $ 3,269 $ - - North Haven 2550 9th St. 8 $ 12,099 $ (6,875) $ 5,224 $ - - Project Based Sub Total: 124 $ 10,222 $ 6,237) $ 3,985 $ 2,589 1.54 Arapahoe East 4610 Arapahoe 11 $ 7,133 $ (7,216) $ (83) $ 3,631 (0.02) TL Dakota Ridge 4900 10th St. 13 $ 12,649 $ (3,633) $ 9,017 $ 7,643 1.18 TL Sanitas Place 3640 Broadway 12 $ 8,202 $ (4,452) $ 3,750 $ 4,498 0.83 TL Twin Pines 1700 22nd St. 22 $ 8,754 $ (4.831) $ 3,923 $ 3,635 1.08 TL TL Sub Total: 58 $ 9,205 $ (4,936) $ 4,269 $ 4,711 0.91 101 Pearl 101 Pearl 6 $ 13,052 $ (4,323) $ 8,729 $ - - Bridgewalk 602-698 Walden Circle 123 $ 11,706 $ (4,667) $ 7,039 $ 4,664 1.51 Hayden Place 34th & Hayden Place 24 $ 8,107 $ (6,912) $ 1,195 $ 3,873 0.31 HP Midtown 83720th St. 13 $ 9,374 $ (4,242) $ 5,131 $ - - Orchard House 1 $ 78 $ (3,009) $ (2,931) $ - - Whittier 1946 Walnut St. 10 $ 9,405 $ (5,051) $ 4,354 $ 3,113 1.40 Woodlands 2600 Block of Mapleton 35 $ 13.849 $ (7.498) $ 6.351 $ 3.405 1.87 Workforce Sub Total: 269 $ 101956 $ 5,280) $ 5,677 $ 4,053 1.40 Portfolio Totals: 725 $ 8,926 $ (5,599) $ 3,327 $ 1,946 1.43 DSGR Net Mcluding PH 2011 Tax Credit Properties Address Units PUPA PUPA PUPA PUPA Adjusted EGI OpEx NOI Debt DSCR Broadway East 3160 Broadway 44 $ 12,289 $ (5,823) $ 6,466 $ 3,276 1.97 Red Oak Park 27th & Valmont 59 $ 1,286 $ (2,457) $ (1,172) $ - - Foothills 4500 block of 7th/8th 74 $ 12,575 $ (3,879) $ 8,696 $ 6,385 1.36 Holiday 1500 Lee Hill 49 $ 9,813 $ (4,637) $ 5,176 $ 3,629 1.43 Vistoso 4500 Baseline 15 $ 9,77D $ (5,818) $ 3,952 $ 2,768 1.42 Broadwav West 3120 Broadway 26 $ 10.646 $ (5.427) $ 5,219 $ 3,232 1.61 Tax Credit Sub Total. 241 $ 8,708 $ 3,559 $ 5,149 $ 3,297 1.40 Properties in Transition Address Bluff Street 2232 Bluff St index of terms BMMIRed Oak Park 27th & Valmont PUPA - Per Unit Per Annum Orchard House 1603 Orchard St. EGI - Effective Gross Income = (Total Revenue - Grant Revenue) Op Ex - Operating Expenses = (Total Expenses-Capital Expenses-Extraordinary Maintenance and Non-Op Ex) NO[ - Net Operating Income = (Net Income + Non OpEx) DSCR - Debt Service Coverage Ratio = NOUDebt ADJUSTED - For Capital Grants, Capital Exp. and Extrodinary Maint Thistle Sage Court Loan Modification June 20 Principal Balance $ 215,000.00 Pry 1 2011 Interest Accrued on Principal $ 4,031.25 Terms 2011 Additional Interest on Principal $ 3,225.00 12/31/2010 Interest due $ 225,978.14 Proposed Interest Rate 30/360 convention 4.25% Expected Payment $ (8,062.50) 8 Years - Interest Only Annual Payment 96 $ - 2011 Interest on Accrued Interest $ 3,389.67 Balloon Payment due: July 15, 2019 1 $ - Total Balance due at June 20, 2011 Total Monthly Term 97 $ 443,561.56 Total Expected Balance due at June 20, 2011 Amortizing Balance $ 443,561.56 Total Payments Interest Principal Totals over life of loan 595,681.61 152,120.05 443,561.56 Annual Payments Year Required July 15, 2011 1,309.12 Interest July 15, 2012 18,851.37 Interest July 15, 2013 18,851.37 Interest July 15, 2014 18,851.37 Interest July 15, 2015 18,851.37 Interest July 15, 2016 18,851.37 Interest July 15, 2017 18,851.37 Interest July 15, 2018 18,851.37 Interest July 15, 2019 462,412.93 Principal and Interest S:1FinancelFinancials1201112011-04\Finance Committee Report\Apr 2011 Fin Stmts.xls ADDITIONAL FINANCIAL ANALYSIS OF NORTH HAVEN Effective Gross Income When analyzing income for BHP properties, we can look at two metrics: Effective Gross Income (EGI) and Net Operating Income (NOI). NH's EGI, which doesn't take expenses into account, appears healthy when compared to similar properties. For example, NH's EGI is well above other Section 8 properties. However, EGI for Section 8 properties is largely driven by subsidies that vary by unit size and property. As such, a property like Canyon Pointe, which is all one bedroom units, will almost always have a lower EGI on a PUPA basis because one bedroom units receive fewer subsidies than two, three, or four bedroom units. Effective Gross Income (PUPA) $14,000 - $13,000 $12,000 $11,000 -North Haven - - Canyon Pointe* $10,000 - Glen Willow* $9,000 $8,000 2007 2008 2009 2010 2011 *Canyon Pointe and Glen Willow are comparable to North Haven in that they are part of the same Federal Affordable Housing Program When compared to properties that are similar in size, NH's EGI is once again well above similar properties. However, it is important to note that, again, the difference is largely the result of subsidies, which account for the majority of NH's EGI, but account for very little of the other properties' EGI. I5 ~l 7 Effective Gross Income (PUPA) $14,000 $13,000 $12,000 $11,000 $10,000 -North Haven $9,000 Arapahoe East* Midtown* $8,000 -5anitas Place* $7,000 $6,000 2007 2008 2009 2010 2011 *Arapahoe East, Midtown, and Sanitas Place are comparable to North Haven in that they are similar in size When compared to other "service enriched" properties, NH's EGI is average: Effective Gross Income (PUPA) $16,000 - - - - - - $14,000 $12,000 - $10,000 $8,000 . _ . - -North Haven $6,000 -Broadway East* $4,000 W oodlands* $2,000 - - - - - - - 2007 2008 2009 2010 2011 *Broadway East and Woodlands are comparable to North Haven in that they are both "Service Enriched" 16 T~ While NH's EGI is above average, it is important to note that Section 8 contracts must be renegotiated from time-to-time and there is no guarantee NH's EGI will remain at such a high level in the future. Net Operating Income The other metric we can use to analyze income is Net Operating Income (NOI), which, unlike EGI, is affected by operating expenses. Based on the same comparable properties used throughout, NH's NOI is as follows: Net Operating Income (PUPA) $7,000 $6,500 $6,000 $5,500 $5,000 -North Haven $4,500 f 1~ ~---Canyon Pointe* $4,000 Glen Willow* $3,500 $3,000 2007 2008 2004 2010 2011 *Canyon Pointe and Glen Willow are comparable to North Haven in that they are part of the same Federal Affordable Housing Program 17 Net Operating Income (PUPA) $8,000 - $6,000 $4,000 $2.000 1 ---North Haven Arapahoe East* Midtown* ~Sanitas Place* $(2,000) $(4,000) 2007 2008 2009 2010 2011 *Arapahoe East, Midtown, and Sanitas Place are comparable to North Haven in that they are similar in size Net Operating Income (PUPA) $8,000 $7,000 - $6,000 ~.f f $5,0W - - - $4,000 North Haven $3,000 - - _ - Broadway East* $2,000 - Woodlands* $1,000 2007 2008 2009 2010 2011 *Broadway East and Woodlands are comparable to North Haven in that they are both "Service Enriched" NOT is largely dependent on the rate in which EGI and operating expenses change over time. As you can see in the EGI graphs above, NH's EGI has remained relatively stable 18 over the past four years. As a result, NH's NOI has been driven by operating expenses. Assuming NH's EGI remains relatively stable, but operatinc, expenses increase, which is likely, NH's NOI will continue to go down as it did from 2008 to 2010. While it appears that NTII's NOI is currently increasing, it is important to note that we only have four months of data for 2011 and it is in no way certain that NOI will continue to increase tliroughout the year. 19 f ~(D 5/31/2001 Red Oak Park Update May 2011 January February March April May June July August September October November December Total Unit lease up schedule per Partnership 0 4 8 12 11 9 7 B 0 0 0 0 SA Months reaming In the year 11 10 9 8 Monthly total 44 80 108 Be 320 YTD Running total 44 124 232 320 Actual unit Lease u 0 6 8 8 12 34 Months remaining In the year 11 10 9 8 Monthly total 66 80 72 96 314 YTD Running Total 66 146 218 314 Unit month variance cumulative 22 22 -14 -6 Occupancy 0 10% 240/6 37% 580/0 I 2011 Budget Revenue Total Net Operations Revenue 0.00 3,163.00 9,292,OD 18,583.00 27,676.00 34,792.00 40,328.00 43,194.00 43,194.00 43,194.00 43,194.00 43,194.00 349,604.00 YTD Actual Rental Income 5,090.00 6,822.0D 12,509.D0 23 486.00 47,907.00 Variance Actual to Budget 1921.00 (2,470.00) (6,074.00) 4,190.00 f 14 661.00 Projections - Rental Income 5 090.00 6,822.00 12,509.00 23 486.00 37,792.00 40 328.00 43,194.00 50177.00 50,177.00 50177.00 50,177.00 369 929.00 Returning BMM families 12 Transfers from other BHP ro erdes 12 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: June 7, 2011 This month's development report includes: Consent: None at this time Action/Discussion: Lee Hill Housing: adoption of concept plan Updates: High Mar Redevelopment Red Oak Park Attachments: Lee Hill Housing: Concept plan renderings Neighborhood Outreach Plan Project Tracking Form and Timeline CONSENT ITEMS None at this time 7C ACTION/ DISCUSSION ITEMS LEE HILL HOUSING Previous Board Meeting: At the last meeting, we provided the following information: • An update on the Guiding Principles which were adopted by the Board; • An update on the conceptual design process; • An overview of the soils investigation results, which were positive and will not require an expensive or complicated foundation system; An update on the neighborhood outreach process, including the retention of Portell Works, a public relations firm based in Denver, to assist with communication and outreach; and • An updated project schedule, which outlines major milestones culminating in a March 2012 LIHTC application submittal and third quarter 2012 construction start date. Concept Plan: Over the last six weeks, we have reviewed multiple Concept Plan iterations developed in cooperation with the architect team of Humphries Poli and Steven Walsh. Our analysis of these plan iterations focused on several key issues, including: building massing (particularly in relation to the corner of Lee Hill and Broadway), privacy (for residents and neighbors), open space, parking, and storm water detention. Our recommended Concept Plan is attached to this memo and accommodates 31 one-bedroom units, the maximum allowed under the zoning. Six of the 31 units meet the code definition for "efficiency dwelling unit," that is, they are less than 475 sf in size although they are designed to a one-bedroom configuration. This two-story elevator-serviced building will have usable square footage underground. Our intention is to maximize the underground square footage; however, the actual size will be dictated by what the project can afford. The main floor includes 14 units, a community room for residents with direct access to the outdoor patio, two restrooms, a janitor's closet, six staff offices, and a staff conference room. The open, two-story lobby is large enough to accommodate a security desk, if needed. The second story includes 17 units and access to a rooftop terrace overlooking the patio below. The basement will house the common laundry room, two overflow offices, and storage for staff to use as they see fit. An area currently labeled as "flex space" opens onto a terraced, sunken courtyard that is accessible from the outdoor patio on the main level. Code requires the provision of 31 parking spaces. Through a combination of a parking reduction and a parking deferral, we will provide 15 parking spaces with the ability to add 16 more spaces in the future, if necessary. We recommend that the Board approve the recommended Concept Plan for Lee Hill, which has been reviewed at a meeting of the Boulder Homeless Shelter (Shelter) and the BHP Board's Development Committee at their meeting on May 23; 2011. The revised plan was reviewed by BHP's Development Committee on June 6, 2011. Issues concerning security, the creation of additional common space and basement square footage, as well as continents regarding the two- story overhang facing Broadway were discussed and addressed at the Development Committee meeting. It will be reviewed by Shelter at their Board meeting on June 21, 2011. The final approved plan will be used in the submittal to the City of Boulder in July for zoning review and approval. A week prior to the zoning submittal, an informational update will be provided to the City and the plan will be presented to the neighborhood for feedback and discussion. If major neighborhood concerns necessitate a change to the plan, we will postpone the submittal to the City and incorporate the changes, as needed. Neighborhood Outreach: We are currently developing public relations materials in coordination with Portell Works, the Denver-based firm we retained to provide communications strategy and assistance with the neighborhood outreach process. The materials, which include talking points for project spokespersons, a list of frequently asked questions and answers, and infornnation for the website, will be ready for review by the Development Team by in early June. Our intention is to host the neighborhood outreach event in late July, which will coincide with our Conditional Use Review application submittal to the Planning and Development Services department. Postponing the outreach event until July allows us ample time to develop not just the design of the community but also the operations plan, which includes clearly defined policies and procedures related to eligibility and ineligibility, lease agreements; and security. We anticipate that those who attend the outreach event will ask questions pertaining to Lee Hill's operations. Additionally, presenting schematic drawings to the neighbors will allow us to solicit detailed feedback on the building's design without precluding us from incorporate feedback, if needed. Schedule: Upcoming design/entitlement schedule milestones include: June, 2011: Concept plan adoption; September, 2011: Conditional use approval; January, 2012: Technical document approval; and June, 2012: Building pen-nit approval. Financing: We have begun the application process for capital and operations funds under HUD's McKinney-Vento program, as well as for Veteran's Administration Supportive Housing (VASH) and begun our internal process to project-based Section 8 vouchers. Deadlines to secure the remaining financing sources align with key design/entitlement milestones. Funding solicitations from key private foundations (Boettcher, Gates, El Pomar, etc.) will begin after the design development cost estitnate is complete; these foundations do not have fixed application dates. An application for low income housing tax credits (LIHTC) will be submitted March 1, 2012 along with a letter of intent from the Division of Housing to provide HOME funds for capital construction costs. If a funding gap exists, we will apply for additional Worthy Cause dollars from Boulder County in May 2012. Please see the more detailed schedule below: 15-0 Design/Entitlement 4111 5111 6111 _7/1.1 8/I1 951 10111 11/11 12111 1Q/12 2Q/12 3 112 Concept Process Public Outreach I Use Review Process Tee Doc Process Bldg Pmt Process Begin Construction Financing i~f~C S/ll 6/11 1 7/11 8111 ~ 9111 10/11 ' ' : "t2n1- Z 112 3 :'7iZ- McKinnev-V ento VASH vouchers 7,2. .t PBS8 vouchers Private Foundations LIHTC Process Division of HousE Worthy Cause Next steps: • Complete schematic design package; and • Begin schematic design pricing exercise. UPDATE ITEMS HIGH MAR REDEVELOPMENT Previous Board Meeting: At the last meeting, we provided the following information: • A report that the technical documents package was approved by the City; • A commitment to increase our Owner's Hard Cost Contingency budget line item up to 10%; • A design development construction cost estimate of $8.78 million had been received and was under review; and • The Colorado Housing Finance Authority (CHFA) did not award 9% low income housing tax credits to the project. Progress since Previous Board Meeting: Design Process: The design team will complete the project's construction documents (CD) and prepare a building permit package for submittal to the City by early July. Submittal of the building permit package will be postponed until a low income housing tax credit (LIHTC) allocation is secured. After the CD package is complete, the design team will be requested to stop all work until further notice. LIHTC Application: CHFA staff has strongly advised us to postpone any further LIHTC applications for this site until Josephine Commons, the Boulder County Housing Authority's (BCHA) LIHTC senior project in Lafayette, has reached at least the lease up phase and preferably operating stabilization. It is CHFA's intention to allow Josephine Commons to achieve full lease-up without competition for residents from High Mar, enabling Josephine Commons to fulfill its LIHTC financing requirements. This recommendation is based on CHFA's Qualified Allocation Plan which clearly states: "Recently approved projects should be afforded the opportunity to lease-up without direct competition from another tax credit project. " BCHA anticipates beginning construction in July, 2011 and completing lease-up by December 2012. Based on this schedule, CHFA recommended that we don't reapply for LIHTCs until March, 2013. CHFA's primary concern is that we not compete during Josephine Commons' lease up period. Based on that, BHP staff believes that a July, 2012 application will be competitive if BCHA's construction schedule projections are met especially given High Mar would still need a year to complete closing and construction; our lease up periods would be offset by a minimum of several months. In other news, the Traditions, a senior housing development being privately developed in Lafayette, was recently denied 221(d)3 funding by HUD. It is our understanding that the Traditions' entitlement process will be placed on hold until another source of funding can be secured. Next steps: • Complete construction document package. RED OAK PARK Previous Board Meeting: At the last meeting, we provided the following information: • A budget update where we indicated that 76% of our construction budget had been expended; • A construction update where we reported completion of 38 homes, an update on resident protection from the construction area, and that the construction team was prepping for the last lift of asphalt to complete the roads; and • An update on leasing progress through April that confirmed we had 22 homes occupied. Progress since the Previous Board Meeting: Budget Update: In May, our lender funded our eleventh construction draw of $560,000. Last month we also submitted an updated budget to our investor and lender that included the additional solar tax credit equity and grants that we inserted into the project when we amended the partnership agreement for the solar installations. With these new sources, our total expenditures now make up 79% of the budget. At this stage of construction we remain under budget. The additional room in the budget has allowed us to include a few additional items on our original wish list, including a playground that will be located on the community center lot. 4-a Construction and Leasing Update: In May, we completed I 1 additional units on the east side of Littleleaf Lane, increasing our total finished homes to 49. We now have only 10 residential units and the community center left to complete. We expect the remaining homes to be complete near the end of June and the community center shortly thereafter. If that schedule holds, we will complete construction six weeks earlier than our original projections. We now have 34 of the 59 homes occupied and missed our investor commitment in May by just two units. Our leasing staff is confident that we can make up for that in June and July when several prospective residents' leases terminate and more residents throughout town will be seeking housing. Our May 13m, 2011 Open House was very productive and generated many leads for new residents. Solar Update: The solar installations were slightly delayed in May due to the wind and rain, but have now resumed at a rapid pace. We expect the installation crew from Lighthouse Solar to be complete by mid-June. Next steps: • Complete construction of the final ten residential units and the community center; • Oversee completion of all other development matters and receive Red Oak Park's final Certificate of Occupancy as soon as possible; • Ramp up leasing activities to meet our investor's expectations; • Complete procurement and installation of playground and sun shelter; and • Finish solar installations and have Xcel install appropriate meters. 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 63 Landscape/Site Plan Development '+"~'ty - -vl'„~': ~ f"9r''""~y .-j~ . _ - - - - - + v'+ --7{-g,•.~ - ~ - ~.._.~.ti -z{.•~y.-.~: r•~v-~, 1~. ~.i ~ ~i~ 15 PARK N d Y S f lCj~ 4' J f I SPACES f 9 10 11 12 tiff 14 HC S ~Y a'f i t t 1 Vn, ' ` --INN ~'ti` 'rrr.4'! fl ~j ` i f :011 1 14 View from Broadway, looking southwest Ir ' g ~ rl ~ r' Ali r f r~~. ~i~ A j r ~ .N ~ Ali _ ti it 7~, ~1*~4 ~i p=+ ~ 1 ! NO ~ ',r ~ •4 •L - - .",{~~',1~~ y I. J ~I CI ~1 t~ ~ " h~I ~ i.l .1-~ 1 ~.~y~ ~ _ - ~I.RavJi 7idfs 1 4~a~ 1~u_ - yl~ Y 11 ~'i1 F -.-r limp r~`I w ~~~If II _ - i - ~ I - ~ ~ y `-ter - ~ i - - - View from Broadway/Lee Hill intersection, looking northwest ti . 41 ONE IL y. C _y r,_ L~- 7F a7i OUT, L2Q 2385 Glencoe Street kto PortellWorkS 016,46 Denver, CO 80207 720.810.3906 ]Marie@portellworks.com Boulder Housing Partners/Boulder Shelter for the Homeless Lee Hill Community Community Outreach Plan May 18, 2011 BACKGROUND & PURPOSE In 2000, the National Alliance to End Homelessness released an innovative strategy to end homelessness in the United States. Their Ten Year Plan inspired the U.S. Department of Housing and Urban Development, the White House and other agencies to follow suit. The U.S. Interagency Council on Homelessness then challenged cities to create plans to end homelessness. The momentum has grown, and to date there are 240 completed plans to end homelessness across the country. The Boulder County 10-Year Plan to End Homelessness was completed in April, 2010. It sets forth six goals to addresses all facets of homelessness through a more cost-efficient, effective and coordinated service delivery system and provision of housing options. The plan identifies three targeted populations: at-risk, temporary and chronic homeless. One of the six goals is to "provide permanent housing with supportive services to meet the long-term needs of chronically homeless individuals. " Boulder Housing Partners (BHP) and the Boulder Shelter for the Homeless (BSH) launched the Boulder County Housing First Program in 2006. Housing First, based on national models, provides chronically homeless people with permanent housing, case management and support services. The Boulder County 10-Year Plan calls for 100 Housing First units to be provided in Boulder County. There are currently 26 units in the program, scattered throughout the County. The planned Lee Hill project will add 31 more units in North Boulder. In recent months, there has been considerable community dialogue about homelessness related to the no- camping ordinance and the proposed relocation of the Carriage House. There is a need for accurate information about homelessness and local services. North Boulder is also home to a large amount of affordable housing, in the Holiday and Dakota Ridge neighborhoods, three new high density developments in the vicinity of Broadway and Yarmouth (approximately 100 units), the Shelter, and Emergency Family Assistance Association. The local community is generally comfortable with these uses but some will likely have specific fear-based concerns or a sense that the neighborhood has "more than its fair share." The Lee Hill project site plan will undergo Conditional Use Review by city planning and development staff to ensure that the project is in code compliance. Conceptual plans will be submitted in June. A public hearing is not required. However, Boulder Housing Partners and the Boulder Shelter wish to be good neighbors and to implement the project in a transparent manner. To that end, they will conduct a neighborhood outreach effort to educate and inform the community about the Lee Hill Community. ] Lee Hill Community-Draft Community Outreach Plan 5115111 A37 GOALS 1. As a good neighbor, continue to act in a trustworthy and transparent manner with community members. 2. Support Lee Hill project planning and review process by providing accessible, accurate information to area neighbors, elected officials, media and the public at large, 3. Raise awareness of the Lee Hill project as a partial solution to chronic homelessness in Boulder County in accordance with national best practices and the Boulder County 10 Year Plan to End Homelessness. GENERAI. APPROACH • Act in a trustworthy, transparent manner. This is a credible project that will address a pressing need in the community. It is being implemented by the most experienced affordable housing developer and homeless housing provider in the City of Boulder. • Ultimately, you want people to feel that the project has been planned thoughtfully, based on national best practices, and the partners have thought of everything-if an answer for every question is not currently available, do your best to provide it. • Get ahead of the ball. Reach out to your neighbors and key stakeholders first--then provide information to the greater community. Give them the courtesy of a dialogue, rather than seeing it in the newspaper and feeling like things are a "done deal." People get more irritated if they feel overlooked or helpless. • Focus on the people-both your neighbors and future Lee Hill residents. All should be treated with dignity for their needs and concerns. This is consistent with both organizational missions and core values. • Don't get distracted by critics--but do respond factually if they raise an issue that can and should be addressed. Focus on educating everyone else in a transparent, trustworthy manner. • Determine under what circumstances you will modify your plans in response to neighborhood input. Sometimes people raise concerns that you don't see from your perspective. You may want to compromise in some areas, particularly those related to safety concerns. 2 Lee Hill Community-Draft Community Outreach Plan 5115111 j8 STRATEGIES/TACTICS Identify and Prepare Project Spokespersons (Complete) • It is important to manage communications about the project, especially when plans are evolving and there is a backdrop of misinformation about homelessness in general. This will make it easier to manage the key messages and response to any criticism. • Recommend Betsey Martens, Executive Director, BHP; Greg Harms, Executive Director, BSH; Shannon Cox Baker, Project Manager, BHP; Ruth Becker, BSIi Board President. • Develop key talking points for spokespeople to use in community outreach meetings, events and interviews. Name the Project (In Process) Planning documents currently refer to the project as "Lee Hill Housing" or "Lee Hill Permanent Supportive Housing." Ideally, the project should have a name that helps it blend in with the surrounding community and does not stigmatize residents or prompt immediate stereotypes. It appears that "Lee Hill" is not used by many, if any, other entities in the area. Perhaps researching the history of the hill, the name Lee, and nearby names like "Old Stage Road" would yield insight. Develop Community Outreach Tools (June) Draft Project Overview and Questions & Answers fact sheets Provide succinct, informative content for BHP website • Project overview, Q's and A's, as downloadable pdfs. • Live links on fact sheets to credible industry sources (National Alliance to End Homelessness, Housing First info, Metro Denver Homeless Initiative, Boulder County Ten Year Plan, Boulder Homeless Shelter Housing First page, etc.) • Neighborhood meeting notice • Lee Hill site plan, rendering (when available) • Links to other successful Housing First projects (Renaissance, Fourth Quarter, Cornerstone) • Email link for inquiries Enlist Support of Local Project Partners/Advocates (June) Provide personal briefings with individuals who will be integral at this stage of the project's development. In the event of local opposition, these people will ideally be advocates. The group might include: • BHP Board of Commissioners: to provide agency credibility (ongoing) • BSH Board of Directors: to provide agency/case management credibility (ongoing) • City Councilwoman who is on the BHP board: to provide political support (ongoing) • City Council member who represents Lee Hill district (1-2 weeks before meeting notice goes out) • Boulder Planning and Development director (ongoing) • Boulder Housing and Human Services director (ongoing) 3 Lee Hill Community-Draft Community Outreach Plan 5115111 59 • Lee Hill area neighborhood police officer: to respond to any safety concerns, especially in lieu of the current shelter and area programs (1-2 weeks before meeting notice) • Neighborhood leaders, business association director (1-2 weeks before meeting notice, unless already briefed). Note that some neighborhood leaders are not organizational leaders, but rather long-time residents that others trust and look to. It could be as simple as a phone call to offer information. Reach out to Three Active Neighborhood Associations and Major Businesses (July) • Offer to come to their next monthly meeting, either before or after the open house, to present plans and answer questions (Shannon Cox-Baker, Greg Harms) • This will provide a personal, nonthreatening opportunity to visit "on their time and on their turf.", • Similarly, meet with the Holiday Inn, the Armory, Bus Stop and industrial users across the street. Invite Lee Hill Neighbors to Community Open House (July) Provide a convenient opportunity for neighbors and interested stakeholders to meet project team members, learn about the project and ask questions. • Coincide with submittal of concept plans to city for Conditional Use Review, 3 weeks in advance of the meeting. • Invite all property owners in a geographic area to encompass Holiday and Dakota Ridge developments, businesses and industrial users adjacent to the site. (114-mile or 1/2 radius?) Include project advocates listed above. • Hosted by BHP in their conference room on the Northwest side of the building, on a weeknight between 5:30 and 7 p.m. This is a friendly, smallish room where people can meet and talk as neighbors. • Guests are personally welcomed by Betsey Martens and Ruth Becker, who explain the format and provide Project Overview and Questions & Answers fact sheets. Information tables around the room to include: Development Overview: short comments by Shannon Cox- Baker. Role of BHP for the project. Present the site plan and development process, funding partners, etc. Offer a "window tour" while walking people through the site plan. Answer questions. • Exhibits: Large site plan exhibit on easel; large exhibit with photos/captions about other development projects. • Materials: BHP brochures, Guiding Principles Programming: short comments by Greg Harms. Role of BSH for the project. What is chronic homelessness, why Housing first is a more effective approach, what services will be provided by case workers, exhibit board of client photos and copy from BSH Housing first web page. Answer questions. 4 Lee Hill Community-Draft Community Outreach Plan 5115111 • Exhibits: Humphries Poli photos/renderings of other projects • Materials: BSH brochure, newsletter, Housing First collateral Management: short comments by (BHP representative) regarding resident intake, rules/regulations, safety, maintenance. Answer questions. • Materials: samples of standard rules for residents in BHP properties? Refreshments: if possible, offer finger sandwiches, crackers/cheese, and fruit. Healthy snacks in the event that people come right after work. Brief the Boulder Daily Camera and KGNU, Boulder Public Radio (week of Outreach event) • The week of the open house, or before if requested, invite Boulder Daily Camera reporter to BHP for a project briefing with spokespeople and invitation to open house. Suggest Heath Uric or Erica Meltzer, who have covered local homeless issues in a fairly balanced way. Try to schedule a separate meeting with KGNU. FUTURE ACTIVITIES Maintain Web Page • Update the Questions & Answers fact sheet on the website weekly, if needed, or monthly. Post short announcement when plans are approved and what will happen next. Post building elevations when available, new funding, groundbreaking news/events, opening news/events. Provide milestone updates to neighborhood leaders and other stakeholders • If there is sufficient interest, offer to brief neighborhood leaders (HOA presidents, business association president) at development milestones. Examples might be when design/development documents are finalized, when the project breaks ground and when it will officially open. This could be done in small group format by Shannon Cox-Baker and Greg Harms. • As planning progresses, brief other community partners, such as the Boulder Community Hospital, Boulder County Commissioners, Boulder Police Department, Mental Health Partners, Peoples' Clinic, Addiction Recovery Center, The Carriage House, Office of U.S. Representative Jared Polis. Create an internal feedback loop to respond to community concerns • If specific concerns are raised during project planning or development, share them with the design and/or development teams. Some concerns may have merit and can be acted upon. Others may not. Either way, neighbors can receive thoughtful, factual responses in a timely manner. Groundbreaking Ceremony 5 Ixe Hill Conununity-Draft Community Outreach Plan 5/15/11 61 • DHP and D5H should consider a groundbreaking ceremony involving key partners, fenders, stakeholders and neighborhood leaders. This plight be an ideal time to involve Governor Hickenlooper to endorse the project and profile it as part of a statewide initiative or plan to end homelessness. Grand Opening • A grand opening could involve a formal ceremony involving all stakeholders as well as building tours. 6 Lee Hill Cunmunity-Draft Community Outreach Plan 115111 ~z Q evelo p m e n I T r a c k i n~ June 2011 Research, Pre Construction Transition/ Leased-Up/ Evaluation, Development Lease-Up Completed On Hold or Red Oak Park Tracking Red Oak Park (Phase 1, 2,3,4) Existing Unit Acquisition Bridgewalk Wallace Acquisition Lee Hill Housing 28th Kalmia NoBoYarmo Valmont (ROP II) High Mar Armory Redevelopment Pancost Transit Village (RTD) Hogan Palo Park Iris Hawthorn Moving to Work - Public Housing Public housing disposition Conversion Tax Exempt Partnerships Infeasible Technical Landmark Lofts Assistance Junior Academy Roaring Fork Orchard Grove Lee Hill: Adoption of Concept Plan RESOLUTION # 7 SERIES OF 2011 A RESOLUTION FOR THE PURPOSE OF AUTHORIZING AN AMEDMENT AND RESTATEMENT OF THE PROMISSORY NOTE FROM BOULDER HOUSING PARTNERS TO MY BACK YARD, LLC, A SUBSIDIARY OF THISTLE COMMUNITY HOUSING RELATING TO THE PROPERTY AT SAGE COURT. WHEREAS, Boulder Housing Partners loaned Thistle Community Housing, hic. ("Thistle") $240,000 pursuant to an original note dated March 22,1989 secured by a deed of trust on the Sage Court property; located at 2965 Valmont Road, Boulder, Colorado 80302 and WHEREAS, the original note was amended as of January 12, 2000 (the "Amended Note"); and WHEREAS, the Amended Note is maturing on June 20, 2011; and WHEREAS, Thistle transferred the property and the Amended Note to a subsidiary LLC, My Back Yard, LLC; and WHEREAS, Thistle has requested an extension of the term of the Amended Note and a reduction in the interest accrual rate; and WHEREAS, Boulder Housing Partners has considered Thistle's request and is willing to extend the term of the Amended Note and modify certain other terms pursuant to an Amended and Restated Promissory Note. NOW, THEREFORE, be it resolved that the Board of Commissioners approves the extension of the maturity of the Amended Note to July 15, 2019 with interest at 4.25% and a principal balance of $443,561.56 pursuant to a new Amended and Restated Promissory Note which will be accompanied by an Amended Deed of Trust on the Sage Court property. Adopted this 13th day of June 2011. (SEAL) Angela McCormick, Chair, Board of Commissioners Housing Authority of the City of Boulder ATTEST: BETSEY MARTENS Executive Secretary RESOLUTION #8 Series of 2011 A RESOLUTION FOR THE PURPOSE OF APPROVING SUBMISSION OF THE 2010 AUDIT FOR PUBLIC HOUSING, CANYON POINTE, GLEN WILLOW, NORTH HAVEN, SECTION 8 VOUCHER, AND ALL OTHER HOUSING AUTHORITY PROGRAMS TO THE DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT AND ANY OTHER REGULATORY AGENCIES AS NECESSARY. WHEREAS, the Board and staff have reviewed the 2010 Audit; and WHEREAS, the audit showed the financial statements of BHP to be fairly presented and in conformity with generally accepted accounting principles; and WHEREAS, there were no findings or recommendations by the auditors. NOW, THEREFORE, be it resolved that the Board of Commissioners of the Housing Authority of the City of Boulder approves submission of the 2010 Audit to HUD and any other regulatory agencies as necessary Adopted this 13th day of June, 2011. SEAL Angela McCormick, Chair, Board of Commissioners, Housing Authority of the City of Boulder ATTEST: BETSEY MARTENS Executive Director 200% 2010 2011 2012 2010 ScP Oc3 I Goi: Ji F Mo' 4'.ay Jun Jul sec. Dtl Nov Doc Jan Feb Moe Apr rdb Jue Jnl Aug Sao O[I Hgv etc Jan Felt Mar Apr Moy Jun Jal Avg S!p Oer Nev 011c Jon Feb Ida, AOr May Jun Jul eon ar,~.r Red Oak Park a. 4". 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