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Meeting Packet - Housing - 10/10/2011 BOULDER HOUSING PARTNERS REGULAR MEETING OF THE BOARD OF COMMISSIONERS OCTOBER 10, 20112:30 PM BHP OFFICE 4800 N. BROADWAY, BOULDER COLORADO Our primary mission is to provide drrcrlity affordable housing that is developed and managed ti0th respect for the dignity of all involved. We also seek to create a sense of coninn.mio) strength and spirit that supports resident efforts to realize success in their lives. REGULAR A G E N D A 1. Call to order II. Determination of Quorum III. Partnership Awards IV. Public Participation* V. Board Announcements- V1. Board Development- Tax Credits 201 VII. Committee Reports 1. Governance 2. Finance/Audit 3. Resident Representative Council 4. Boulder Housing Partners Foundation 5. Development VIII. Approval of the Agenda IX. Consent Agenda 1. Minutes from September 12, 2011 X. Action and Discussion Agenda Directors Rel ort 1. 2011 Third Quarter Work Plan Management Report 1. 2011 August Financial Summary Development Report 1. 1175 Lee Hill Neighborhood Outreach Next Steps 2. Updates XIL Adjourn Any member of the public is invited to address the Board on any topic that is on, or not on, the agenda during Public Participation. Anyone wishing to speak will have the floor for a maximum of 3 minutes. BOULDER HOUSING PARTNERS ANNUAL MEETING OF THE BOARD OF COMMISSIONERS SEPTEMBER 12,2011,2:30 PM 4800 BROADWAY, BOULDER COLORADO Commissioner Topping Betsey Martens Kathy Haddock, CAO Commissioner Eckert Jim Koczela Commissioner McCormick Tim Beal Public: Commissioner Ageton(absent) Lindsay Moss John Wesley Commissioner Holton Liz Wolfert Commissioner Klerman Shari Owen Commissioner Hempel Greg Harms Commissioner Lawrence Commissioner Mitchell 1. Call to order Commissioner McCormick called the regular meeting of the Board of Commissioners to order at 2:33 pm. II. Determination of Quorum A quorum was declared. III. Public Participation John Wesley, a resident at Walnut Place, passed out a letter to Commissioners explaining the unforeseen consequences of Boulder Housing Partners' energy improvements at Walnut Place that eliminated his excess utility charge. The effect is that Mr. Wesley's food stamp allotment has been reduced. BHP is working on a consensual resolution to this problem with HUD. The Commissioners asked the staff to stay on top of the situation and report back about the final decision by HUD. IV. Board Announcements Commissioner Mitchell announced that she won't be able to attend the Commissioners' retreat. Commissioner Topping acknowledged staff for setting up the presentations by the City of Boulder and Excel in regard to the ownership of utilities and Boulder's energy future. He asked if the Betsey would draft a letter describing BHP's interests in the discussion for review at the retreat. 1 Commissioner Holton distributed and read a letter to all Commissioners disclosing a potential conflict of interest he has related to a property at 1000 Alpine. Betsey reminded the Commissioners about upcoming conference opportunities. V. Board Committee Reports Governance COMMISSIONER LAWRENCE MADE A MOTION NOMINATING COMMISSIONER MCCORMICK AS CHAIR AND COMMISSIONER KLERMAN AS VICE CHAIR OF THE BOARD OF COMMISSIONERS FOR BOULDER HOUSING PARTNERS. THE MOTION WAS SECONDED BY COMMISSIONER TOPPING. THE SLATE OF NOMINATIONS WAS UNAMIMOUSLY APPROVED BY ACCLAMATION. Finance Commissioner Topping, reporting for the Finance Committee, reported on the compensation analysis done by staff. The Development fee for ROP will be recorded in September, with cash coming in next year. Finance also discussed the budget impact of the Moving to Work Program and the conversion of the Public Housing units. RRC There was no report from the Resident Representative Council as Commissioner Hemple was absent. Foundation Commissioner Holton, reporting for the Foundation Board, reported that the fundraising at the ROP grand opening brought in $3,000. Their annual goal is $15,000, and currently the focus of their agenda is fundraising. Commissioner Klerman asked if the Foundation would share their budget with the Commissioners. Commissioner Holton will bring a copy. 2 Development Commissioner Eckert, reporting for the Development Committee, stated that the Committee supports moving forward with the 4600 Broadway project. The Committee had also discussed the Lee Hill project. The neighborhood meeting to introduce the project is scheduled for Sept 29'h at the Armory building. Differing options for financing the funding of High Mar were discussed. VI. Approval of the Agenda Consent agenda items: 1. Minutes from July 11, 2011 COMMISSIONER ECKERT MOVED TO APPROVE THE CONSENT AGENDA. COMMISSIONER TOPPING SECONDED THE MOTION. The motion passed unanimously. VII. Action Agenda Director's Report Betsey reported that BHP had received the MTW contract, but clarification is still needed about how the block grant is to be renewed. Betsey clarified the funding fundamentals of MTW to the Board. It is not a contractual amount and it can vary based on annual appropriation. The Board discussed the upcoming Board retreat and the materials that are needed for their review. Commissioner Mitchell said that the Community Foundation has issued their Annual Trends Report. The Community Foundation is scheduled to present the findings from the report at BHP on October 10' from 10:30-11:30arn. Betsey announced that the negotiations with Wells Fargo and the City have been finalized. Kathy Haddock thanked BHP for their efforts in the negotiations. Betsey informed the Board of HUD's budget projections for 2012, stating that the budget is showing a decrease in funding for all federal housing programs. 3 Management Report Julv 2011 Financial Suirunary Jim K. presented the Julv financials and answered ouestions from the Board. Commissioner McCormick asked where the government stands on HAP and PH reserves. Betsey said that public housing reserves are currently shown as an offset against a lower appropriation, but the Section 8 reserves are not. Development Report Resolution #12: Private Activity Bonds Liz Wolfert presented Resolution 412 to the Board and added that the total amount shown on the resolution was a typo and gave the corrected one to Commissioner McCormick. Commissioner Lawrence added that the Private Activity Bonds were good for three years. COMMISSIONER TOPPING MOVED TO APPROVE AMENDED RESOLUTION #12. COMMISSIONER KLERMAN SECONDED THE MOTION. The motion passed unanimously. 1175 Lee Hill The primary action item was a review of eligibility. Following a long discussion, the Board decided to make no change in the current rules regarding ineligibility of applicants with convictions or arrests related to sex offense or methamphetarnine use. Staff will return next month with guidance about language for a case-by-case review of other criminal charges. The Board directed staff to initiate a pilot program at the tenant-based Housing First program (NOT 1175 Lee Hill) regarding sex offenders. Staff will return with language on that program. Betsey said the neighborhood meeting is scheduled for September 29,11. So far, BHP has heard from four neighbors about their concerns for the development. 4 COMMISSIONER TOPPING MADE A MOTION TO RECESS INTO EXECUTIVE SESSION AT THE CLOSE OF THE MEETING AS PER COLORADO STATUTE CRS-24-6-402 4{f} TO DISCUSS REAL ESTATE MATTERS. COMMISSIONER KLERMAN SECONDED THE MOTION. The motion passed unanimously. VIII. Adjourn COMMISSIONER TOPPING MADE A MOTION TO ADJOURN THE REGULAR MEETING OF THE BOARD OF COMMISSIONERS. COMMISSIONER KLERMAN SECONDED THE MOTION. The motion passed unanimously. The regular session of the Board of Commissioners adjourned at 5:00 pm SEAL DATE: 9/12/11 ANGELA MCCORMICK,CHAIR Boulder Housing Partners BETSEY MARTENS Executive Director TEENA WELLS Recording Secretary 5 i MEMORANDUM To: Board of Commissioners From: Betsey Martens, Executive Director Subject: Director's Report Date: October 4, 2011 This month's Director's report includes: Consent: None at this time Action: Partnership Awards 2011 Third Quarter Work Plan Updates: Board Development NAHRO Updates City Issues Affecting Affordable Housing Attachments: Board Retreat Summary Conflict of Interest and Ethics in Procurement Policy Board Governance Document 2011 Work Plan -Third Quarter report 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: Volunteer Partner: Elvia Villalobos, Sewing Instructor Elvia began volunteering with BHP by teaching sewing to residents on June 1 st. A professional seamstress, Elvia commutes by bus from Lyons each week to share her skills with five Kalmia women, who requested a sewing class after their sewing group had taught each other everything they luiew. Elvia has taught them how to draw a pattern, use a sewing machine, and sew their own skirts and blouses. She is a positive role model for self- sufficiency and brings to her role professionalism, dedication, and an inspiring life story. lid Non- Profit Partner: Claudia Urrutia, Safelouse Progress Alliance for Nonviolence Claudia Urrutia is a non-violence educator with the Safehouse Progressive Alliance for Nonviolence. Last spring Claudia was invited to speak to parents of children and youth who live in BHP housing and participate in the Youth Services Initiative after-school and summer progranuning. Her presentation increased parents' understanding of bullying and how to identify and support their child if he or she is being bullied or is bullying. This summer, BHP invited Claudia to bring her expertise to children in the Madison apartments. Approximately 20 children participated in six weeks of anti-bullying progranuning, learning more about bullying and increasing their ability to respond to it effectively and non-violently. With her gentle and caring nature she connected well with the participants. Community Partner: Crestview Church Crestview Church has contributed to our conununity in two important ways. Crestview allows their church and facility space to be used by the Madison community for different purposes, including conununity meetings, classes, and parties. And, Crestview members organize volunteer projects to help and improve our community at Madison. Their contributions and involvement have really strengthened the Madison community. Government Partner: Boulder County Housing Authority Family Self-Sufficiency Team The Boulder County Housing Authority Family Self-Sufficiency team (Ann Harris, Katie Frye, Cindy DeLeon and Jennifer Franklin, Angela Lanci-Macris) has been nominated for an award for their partnership with BHP in implementing the Public Housing Family Self- sufficiency program. They have worked very closely with many of our residents, providing case management support to help them be successful in pursuing their educational and career goals. Their caring and compassionate support has helped the FSS participants set and reach their personal goals. In addition, they have provided emergency financial support to keep these participants on track. Their partnership has been invaluable in malting the program a success. Board Development: The Board development topic this month is an intermediate level presentation on Low Income Housing Tax Credits. Let us know if you missed the Tax Credits 101 presentation and/or want the slides as a refresher. We can email them to you. Third Quarter Work Plan Attached is a summary of the progress to date on the 2011 Work Plan. Project plans or goals that have been modified in any way are identified in red, and are summarized here for your convenience: Kalmia capital improvements are on hold until the MTW conversion 101 Pearl planning has been moved into 2012 Updating the portfolio plan will follow after MTW planning 2 7 Boulder Transit Village and Wallace/Valmont have been added as projects High Mar goals have been modified The acquisition goal was modified in the first quarter to be more opportunistic The Kaboorn playground at Red Oak Park was tabled due to better than expected project savings We decided not to use Yardi to manage capital grants Everything else is tracking along as planned. We welcome your comments and questions. Board Retreat Summary Thank you all for an engaging and productive retreat. We have attached a summary of your direction on work plan and budget. Please take a look to make sure we've captured, and captured correctly, your thoughts. We'll bring the first draft of the work plan and budget to the November meeting. UPDATES: Requirement to post salaries; salary compensation study On September 20, 2011 HUD issued a notice requiring housing authorities to post salary information to HUD's website. Further, it requires Boards of Commissioners to conduct salary comparability studies. This notice, and the requirement, has been the subject of much discussion in the industry. HUD's notice follows: "Public Housing Agencies (PHAS) that administer HUD-assisted public housing and housing choice voucher programs will be required to report to HUD annually the compensation provided to each of their five highest compensated employees, which will then be posted on I-IUD's website with job titles but without employee names. This will serve as a valuable transparency and oversight tool and a point of comparison for local PHA boards in determining appropriate compensation levels. To that end, all PHA boards will also be required to conduct comparability analyses when determining executive director compensation levels and certify that such an analysis has been performed." We have submitted the requested information to HUD and the Board has historically done a comparability Study when making decisions about Executive Director compensation. We are fully in compliance with this new requirement. In related news, you may have heard that the House Appropriations Committee included a provision in their 2012 budget draft that no Housing Authority Director can be paid more than a federal Level IV employee which is approximately $155,000. Between these two actions, you can see the mood of the country shifting on the question of public employee compensation. 3 Hold the Date The Boulder Community Foundation will present its 2011 Boulder County Trends report here at the BHP offices on October 14 at 10:30. All Board members are welcome to attend. Ethics Training Thard,cs to Commissioner Mitchell for representing the Board at the Ethics Training on September 16, 2011 here at BHP. The training was presented by NAHRO's faculty and was well received. The two faculty members reviewed the ethics provisions in our Board policy documents and were very complimentary of our high standards. As an important reminder, below are the written ethical standards for the Board. Ethical Standards of the Board L Board members agree to conciuct the business of the BHP Board with integrity and respect for each other, for the staff, for the residents of BHP, and for the public. 2. Board members agree to commit the attention and time that is needed to fulfill their responsibilities. 3. Board members agree to support the mission of BHP. 4. Board members agree to adhere to the provisions of the Colorado laws concerning Open Meetings. The Colorado Legislature first passed its "Sunshine Law" in 1973 requiring disclosure of private interests by public officials; regulating lobbying, and requiring open meetings of all meetings of two or more members of any board, committee, commission, or other policy malting or rule making body of any state agency or authority. The law was revised in 1977 to provide more guidance about executive sessions. The Board implements these provisions as follows: a. Interest: According to the conflict of interest policy adopted by the Board in August 2003, if any member who owns or controls an interest, direct or indirect, in any property included or planned to be included in any project, lie or she shall immediately disclose the same in writing to the authority, and such disclosure shall be entered upon the minutes of the authority. If there is any question in the member's mind about interest, he/she should consult immediately with general counsel for BHP. The interested member or officer shall thereafter: l) refrain from voting upon or otherwise acting in an official capacity in such transaction; 2) physically absent himself or herself from the room in which the matter is being considered; and 3) not discuss the matter with any other member of the council, board, authority, or commission of which the person is a member. Failure to disclose such interest or to comply with these provisions shall constitute misconduct in office. b. Notice: Any meeting at which the adoption of any proposed policy, position, resolution, rule, regulation or formal action occurs shall be held only after full and timely notice (no less than 24 hours) to the public. The posting shall include the Daily Camera and the BHP web site, at a minimum. The Resident Representative Council is provided a schedule of meetings. c. Executive Sessions: Executive Sessions may be convened by a vote of the Board. Each request for Executive Session must include the citation fi•om the Open Records Law. Executive Sessions may be held only to discuss the following matters: ■ Real and personal property 4 ~l ■ Attorney conferences ■ Confidential matters under state or federal law ■ Security Arrangements or investigations ■ Negotiations ■ Personnel matters ■ Documents protected under the Open Records Act d. Use of and limitations on phone polls: In the event that Board members must act quickly on, for example, a real estate decision, phone polling by staff is allowed as long as the decision is included on the agenda and ratified on the record of the next regular meeting. e. Use of email: An e-mail exchange between more than two of the members of the Board would be considered a meeting under the provisions of the Colorado Open Meetings law. Legitimate use of e-mail includes: polling, as described above; notification from staff that does not require a response; and e-mail exchange between two or fewer members. We've also attached the following BHP adopted policies that also relate to the Board: 1. BHP Ethics in Public Contracting and Conflict of Interest Policy 2. BHP Board Governance Document NAHRO You should have received an email directing you to a website used for voting in the national election. If you have any questions about the candidates, please feel free to call me. I know quite a lot about one of them. 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 O C O _O N 0 nl c O O u c 3 0 o 0 s m E o Y ~T N vE, a' o p U rtl b Ol C p ~ O c N c E c o a o c ° o E o' c v v c E m n Lc $ 5 S nl v c W N > l_ M ~ O c ~ t m 0 a m c IO. c a m C c ti C N O J vi C ~ Q L 4q N m c v. v qqc. m m m c i. m m E 7o c v d n c 'D 0 o m p a o 0 0 o c { c c S rv O yZ = u cn u ? a O .r O' o . > > > CY c °1 m c a ao u C p O C) C U a+ N N O N t! c N N n CL o, Co p V o a r r, o o m E a c = c m V O O N 3 c C ip m ~ ~ O N ~ ~ ~ i❑ COI m N w N Qj O Q r O o N w a 2 U C n O t' p U7 O U m a O O u C 0 al r_ a - m m ~ V ah C Y U ~ c L In 3 "o aci a I° m m N W ¢ u N m O E N N IL C i0+ C n > O ;O I QI d x m O C 'E C c m ' v o a ° E 2 in >F E o c v a o Y z E c m m f0 c n = D d m w c c m m E m v s E ° c CL cn v o _ m v E > t C3 m n 1 x m o n N = a n m n N E 3 .0 3 v o m m u o n E v al ¢ c n v M o o ° o E 3 ^ ❑ a a Z o c c a m ci 3 L❑ ~ rn E w 75 ` f0 N x E a E rn o c ° o rn w c N ° o n c 7 o N m o~ m c aci n c p °u v - co a w c v c u E c E o 00 c N y o E n W E n E a c ' n v v 1O al .~c°. 0 3 a 10 c 'n o v w w `0t o~ 'x m o m v w - o Y . lu ❑ E E El n m o n c Q u E M m a o0' n W n E N s 0 [ ° a io z N > N w .o u v E o m O c c W c !g > w m o m a n y u a 3 3 v FI O E o o. a m •o c a c m w 0 x ~o m vl i m a m O N v u m O .t .OU v ❑ lil ~ v E ¢ m v a w N a v al m > m v a Cn m n c a o c N n - i❑ Co o 0 C o Z U E 'm a E - n ° i+ E i❑ iv m c y a - d , a ~ o, N n O N C O N 7 0 W N Gl O C C C O 'E a u m u u g u'S S z u ¢ ¢ ¢ u ul u u'S g z O u N N M V lN M rl N M R Ill a ti N M V Ill N H r1 N N 0 N 71 ~ C N yf t N }i C fO C ~ E ~ V .O N ~ O f° L' O C pP W Ot d Q C c v a o N C .r C y O m p Q tC Y C s 3 p E w a v ~ 3 ~ ° w mo y u= b 0 c 2i o. B fL Y n °a E 3 a o, v D m o n -Y fn 3 = .0 1O ° L L Dl N Ot .Y y 2' .C V N Y E m d. CN c o .G C CL 'o ° $ v n~ rn m v Na o m p ~ a`, ~ c N c c v w r ,i7 m FwF c p, ~i v 'aa 'N n u O ~O L Z ~ ~ C~~ W U N d 1 .O a o N L C c n C J O t N V N L N 17 n °f m a~ p) N p C p NC, Y U o Cn CT N U J ~Ini N 3 ° °T N v~1 C V p T C C O D L U) O a - N N M w❑ a.' v -E ° b N 3 v 11, m 12 > 71 -0 .1 o= aa 3 N v a u Ec, O U V N N o m N u g c .N s t = E u v o a '.°e a 3 '3 a °i c c n w m rn a 1212 o m ' v m m ~ c p Y m o o v fo - ~n ¢ a, Y E w rn 3 'co u n 3 m v c n o x v $ o a cp° w 0+ a a o o c E N d N .O O 'p O a u E xN C N rtx~ r .c u O J-+ C N ~ N E o u, w J 2 + uV C N d t fJ 'O N N O E c v " ° N ° ~ J Y ~ irl y d C ~ ~ N a O D , N N Y J O n ° N u kl w b `a E C N n C C ut of 4 EN ~y E 1O 7 o C O C .4, o in N O f` O O 1v C a 1- 6 N -°u o o E N w E ri O J f N J C O N L° N u c N N O' v d O 11 N t O C E N m O C 'O L 10 C N C N LJ D. 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N O Q rL C CO v is O 9 16 U C U .c } o o VI m N ICO N C 01 'tn O 'O p T 01 E c N N C LO O N O L C N j= 13 2 Ot w N 7 C C N C N L O C E ty N O C_1 N ] Dl G p N N C N _N O j N N U C C d N = O d .S E N C ~ N N D_ N N N EO ~ C "6 o ~ io u, € E S ~ u o uNi " N N ~ 0 0 0 'ot m m O a o a E c 'O N d O C Q o C m d O O O d O a L N 'NO U c N n o w m y w E w w w C N Z Z, ro E N a v c v a o m o` N c v m O V C N E ut C N C P O U U E C O N U U O T v o C 7 in m w N d C N v C E u° n u M o o E ° c o u o o m C j >O fV0 O (O > j m m N 2 N to v O .O E a Z' E io N ° is v z io m ° N n'". w o N m it c o N 'u u c '0 0 z x ^ Ti N ~n ca 0 1, N t to o a v p~j a c D C t v c N d.4~ W v N X ut V N t', v O 'O N tG V N 7 m n N o o f'n o ° > > c E E a > j3 v E c a o o c a E a c ° > u E C L O O O O O O C D N N O M rJ N M d' M + N M V N N n ~ - N M d' lfl ~O d' d' d' BHP Commissioner Retreat Highlights September 23, 2011 Commissioners Present: Angela McCormick, Jim Topping, Suzy Ageton, Phil Lawrence, Karen Klerman (by phone), Valerie Mitchell (by SKYPE), Morten Hempel Staff Present: Betsey Martens, Stuart Grogan, Penny Hannegan, Jim Koczela, Willa Jol-inson Agenda: 1) 2012 Work Plan and Budget preview 2) Framing questions for the organization 3) Assets discussion 4) Review of municipalization letter Work Plan and Budget preview discussion: a. Work Plan Goal 1: o Add goal to increase operational strength by retiring debt for 4800 - 0 101 Pearl: o Board discussion early in 2012 with options presented and final decision made o Dccouple 101 Pearl and 4800 in work plan o North Haven discussion at Nov. Board mtg o Create set of basic standards and list of desirables for energy efficiency upgrades o Share MTW baselines with the Board so they can help keep the organization accountable to goals. Goal 2 o Bring High Mar discussion back to the Board in November with staff recommendation about whether to wait for 4% tax credits or move more quickly with alternative financing strategy 0 2.2: Work with real estate professional to look for receiving sites for 40-60 seniors o Look for method to hack learning from private management at 4600 Goal 3 o Add reference to fiscal literacy o Look into financial literacy curriculum developed by Junior Achievement o Create a goal for expanding the relationship with IIIAD as part of MTW 0 3.2: Create early childhood education goal o Support and encourage partnership with BVSD- o Track number of preschoolers living with BHP and participating in early childhood education programs o Encourage attendance of 3-4 yr olds in BVSD preschool programs 1 o ID barriers to attendance: transportation, cultural, reluctance? o Explore keeping voucher recipients in the same school when relocating families o Long range planning for RRC o Resident voice essential o Create resident working group to help inform MTW o Valerie to help Mort with transition o1'RRC and recruitment o Incentive plan for residents that participate in RRC-rent credit? Goal 4 o Add goal to 4.5: All our databases are linked and talking to each other o Acknowledge "resident upset" as a theme and increasing challenge o Hire relocation coordinator a Consider informal update meetings with 1-2 council members at a time o Keep city council apprised of MTW activities o Bring auditors in early in 2012 to make sure they understand MTW o Goal 4.6: Invest in Board development o Working session to educate board about PUPA and asset analysis of' project specific assets o Provide MTW quarterly updates o Implications to BHP of national political and financial trends o Continue to include opportunity for professional training and networking o Recruitment calendar o Colorado Housing Now, NANRO, Board Development topics b. Budget Implications and Preview: o How are we budgeting reductions in federal funds o Watch that we don't rob S-8 program o Budget reduced admin fees for section 8 o Budgeting for average 3.5% salary increase might be high in this economy o MtW baseline of participation o Use external auditor earlier in the year or consultant to help Other • Board would like a tour of North Haven • Suzy - Suggested more educating of the community at large on what we do 2 BOULDER HOUSING PARTNERS GOVERNANCE BY THE BOARD OF COMMISSIONERS Adopted by the BLIP Board, January 26, 2004 Purpose of the Board of Commissioners The Board of Commissioners ol'Boulder I-lousing Partners serves a public purpose, which is to fulfill the legal and fiduciary obligations of Boulder Housing Partners, as required by HUD and by the Boulder Housing Authority (BHA) charter and to set policy and strategic direction that will fulfill the mission of Boulder Housing Partners, namely: (hu prirncrry rnission is to inrovide qucrlity, crfforclable housing, cleveloped acrd Inun rged ivith respect for the dignity of all involved PJ"e also seek to create a sense of connrnunity str°englh and spirit that s11j)por'ls r°e,tiidew efforts to realize SI/ccessy in their lives. Roles and Responsibilities Board of Commissioners 1. The Board focuses on governance of the organization. To this end, the Board sets policies which: • Provide the vision and purpose of what needs to be done • Define what good will be done for whom at what cost • Are required by the law and by ftinding agencies • Set priorities (and re-orders them if there is an opportunity of sufficient importance or urgency) • Provide strategic direction for management of BHP properties and programs • Provide strategic direction on major development efforts • Clarify the criteria that will be used in giving approval of an action (such as setting guiding principles for a particular project) • Ensure that BHP is acting legally and with integrity in its operations 2. The Board oversees the financial welfare of the organization. To this end, the Board approves budgets and reviews actual performance in comparison to the budget, sets policies regarding reserves, serves as guardian of BHP assets, and makes legally required and/or significant financial decisions. 3. The Board monitors the performance of BHP in comparison to Board-approved plans and the BHP mission by receiving monthly feedback from the Executive Director(s) on progress toward the goals and plans 1 4. The Board makes real estate decisions, including the sale or purchase of property. 5. The Board hires the Executive Director(s) and delegates to the Executive Director(s) the responsibility for implementation of policy within the strategic, legal, and financial frameworks set by the Board. The Board's task is to demand organizational achievement in a way that empowers the staff, leaving to their creativity and innovation as much latitude as possible. The Board monitors performance of the Executive Director(s) in carrying out organizational goals and, at a mininnim, annually provides feedback to the Executive Directors regarding their performance. Executive Director(s) The Executive Directors implement policy and the direction set by the Board, through the deployment of BIIP staff, finances, and assets. The Executive Directors are responsible to the whole Board, but not responsible to each individual Board member. When delegating to the Executive staff, the Board speaks with one voice. The executive is a valuable resource to the Board on all issues and often the leader and expert on many issues that come before the Board. The Executive Director sits at the Board table and should be expected to make well-supported recommendations on all issues. There should rarely be an occasion when the Board meets without the Executive Director as part of the meeting. Chairman of the Board The Chairman of the Board serves as the liaison between the Board and the Executive Directors and provides advisory support to the Executive Directors in keeping with Board policies. This liaison role is conducted through regular meetings with the Executive Director(s), especially to preview and finalize agendas and prepare for Commissioner Meetings. In addition, the Chairman conducts the meetings of the Board and ensures that Board members have an opportunity to ask questions, express their views, and vote on issues before them. The Chair is charged with signing all minutes, resolutions and final documents of the Board. Keys to Success of the Board/Executive Director Relationship Boulder Housing Partners has enjoyed an excellent, respectful, and productive relationship between the Board and the Executive Director(s) for many years. This has come from: 1. A relationship of high trust and high expectation. The Board has maintained a high trust that the Executive Directors and the staff they (the Executive Directors) supervise will produce the results that the Board expects. Such expectations are 2 articulated annually in the work plan approved by the Board when they adopt the annual budget. The Executive Directors, their staff, and fellow Board members have high expectations that the Board: • will maintain constructive and professional working relationships among themselves • will focus its deliberations on the policy level • will maintain an interest in and commitment to the broad mission of Boulder Housing Partners • will be prepared so they are sufficiently knowledgeable to make informed decisions • will take a problem-solving approach • Will indiVidually support the decisions made by the Board in addition, there is an expectation that on occasion when particular help is needed, individual Board members will offer and use their talents appropriately in service of the organization. 2. An understanding that the Board collectively makes decisions and gives direction to the Executive Directors. This direction comes from Board action taken in Board meetings and documented in the minutes of the meeting. Therefore, Board members refrain from acting unilaterally in giving direction to the Executive Directors or any individual staff member. Individual Board members may communicate with the Exceutive Directors to provide or request information, and the Executive Director may refer the Board member to a staff member in order to obtain such inforimation. Board members further understand that they do not go directly to staff with requests in order to avoid the appearance of providing direction to staffor disrupting priorities carefully established. 3. Board respect for the Executive Directors' responsibility for and authority over the staff. Although the Executive Directors may inform the Board or individual members of the Board, especially the Chairman, of" personnel situations and may seek the advice of the Board member(s), decisions related to the staff are made by the Executive Directors. Keys to Success in Accomplishing Board Work 1. The Board works as a team. 1. Board work is accomplished through its meetings, during which time the Board members take public comment, listen to presentations from staff and outside experts, learn together, contemplate and deliberate together, and decide together. 2. The Board speaks with one voice or not at all. This means that the Executive Director is responsible to the whole Board, but not responsible to each member. One voice does not require unanimity. The Board voice arises from respectful 3 expression and consideration of a diversity of viewpoints, followed by a vote to render a decision. Consideration of an issue includes the opportunity for Board members to ask questions and express their views. Decisions are documented in the meeting minutes and/or the language of Resolutions. Once a vote has been taken, the Board abides by the group decision. No Board member has any authority as an individual (unless the Board delegates certain issue-specific authority to an individual Board member or conunittee of the Board), and Board members avoid trying to exercise individual power or influence outside the collective Board direction. 3. Executive Directors' respect for the Board members' time and attention. The agendas for the Board meetings and the Board packets are designed to give the Board members the information they need to confirm that their direction is being implemented and to make decisions, without a distraction of irrelevant or unnecessary information. The Executive Directors identity the issues that need to come before the Board for review or for deliberation and decision. The issues are framed in a way that focuses the Board's attention on the question or decision at hand. Through the packet and/or through presentations at the meetings, the staff makes reconunendations or lay out options for Board considerations. There often is an exchange of thinking that leads to decision making: the staff shares what it knows and brings choices to the Board; the Board adds its own thinking to the issue at hand; the Board gives direction to the Executive Directors, based on the opportunity and choices that are available. 4. Board members who wish to raise an issue for discussion and/or decision-malting at a meeting do so by (a) requesting the Board chairman to place the item on the agenda for the meeting or (b) identifying the issue in a meeting and obtaining consent of the Board, by a vote, to include the item on that, or a fixture, meeting's agenda. Ethical Standards of the Board 1. Board members agree to conduct the business of the BHP Board with integrity and respect for each other, for the staff, for the residents of BHP, and for the public. 2. Board members agree to commit the attention and time that is needed to fulfill their responsibilities. 3. Board members agree to support the mission of BHP. 4. Board members agree to adhere to the provisions of the Colorado laws concerning Open Meetings. The Colorado Legislature first passed its "Sunshine Law" in 1973 requiring disclosure of private interests by public officials; regulating lobbying, and requiring open meetings of all meetings of two or more members of any 4 board, committee, commission, or other policy making or rule making body of any state agency or authority. The law was revised in 1977 to provide more guidance about executive sessions. The Board implements these provisions as follows: a. Interest: According to the conflict of interest policy adopted by the Board in August 2003, if any member who owns or controls an interest, direct or indirect, in any property included or planned to be included in any project, lie or she shall immediately disclose the same in writing to the authority, and such disclosure shall be entered upon the minutes of the authority. If there is any question in the member's mind about interest, he/she should consult immediately with general counsel for BHP. The interested member or officer shall thereafter: 1) refrain from voting upon or otherwise acting in an official capacity in such transaction; 2) physically absent himself or herself from the room in which the matter is being considered; and 3) not discuss the matter with any other member of the council, board, authority, or commission of which the person is a member. Failure to disclose such interest or to comply with these provisions shall constitute misconduct in office. b. Notice: Any meeting at which the adoption of any proposed policy, position, resolution, rule, regulation or formal action occurs shall be held only after hill and timely notice (no less than 24 hours) to the public. The posting shall include the Daily Camera and the BLIP web site, at a minimum. The Resident Representative Council is provided a schedule of meetings. c. Executive Sessions: Executive Sessions may be convened by a vote of the Board. Each request for Executive Session must include the citation from the Open Records Law. Executive Sessions may be held only to discuss the following matters: ■ Real and personal property ■ Attorney conferences ■ Confidential matters under state or federal law ■ Security Arrangements or investigations ■ Negotiations ■ Personnel matters ■ Documents protected under the Open Records Act d. Use of and limitations on phone polls: In the event that Board members must act quickly on, for example, a real estate decision, phone polling by staff is allowed as long as the decision is included on the agenda and ratified on the record of the next regular meeting. 5 e. Use of email: An e-mail exchange between more than two of the members of the Board would be considered a meeting tinder the provisions of the Colorado Open Meetings law. Legitimate use of e-mail includes: polling, as described above; notification from staff that does not require a response; and e-mail exchange between two or fewer members. Board Leadership The Board Chair and Vice Chair are selected annually but we recognize that BHP is best served with a board chair serving Fora minimum of two years and that the Vice Chair wi II be "in training'" for the position of Chair when that opening occurs. There are no term limits for officer positions, but we also recognize that rotation in office is a good thing, but its applicability should be determined as the Board exercises its judgment through the annual election. Removal of a Board member A Board member whose behavior is consistently contrary to the policies and principles described in this document may be removed from office for inefficiency or neglect of duty. Every effort will be made to resolve the problem informally. Failing that, a written notification will be provided and the charges described. The notification will be followed by a meeting with the Chair and Vice-Chair of the Board. If these actions fail to remedy the situation, the Board, by majority vote, may reconunend to the Mayor that the Board member be removed. Board Meeting Procedures 1. Agenda: The standing agenda for the meetings proceeds as follows: a) Call to order b) Determination of quorum c) Public Participation d) Board announcements e) Approval of the agenda and requested changes to consent agenda f) Consent agenda g) Action agenda h) Board development i) Evaluation of the meeting j) Future Agenda Items k) Adjoui7ninent Additions to the Agenda: Staff provides a packet of information for every Board meeting that describes agenda items that have been initiated by the staff. Any Board member wishing to add an item to the Board agenda may do so during the 6 "I'Llture Agenda items" discussion and must have the Support of two other Board members in order to be scheduled. 2. Role of the chair in moderating the meeting: The Chair moderates the meeting by assuring that all points of view are fairly heard. Roberts Rules of Orders provide [lie framework for meeting conduct, and are applied generally rather than dogmatically. 3. Call for cxecLitive session: The provisions are as stated above. Board Committees There are currently two standing committees of the Board and two ad-hoc committees. Two members are appointed to the Finance/Audit Committee and two members are appointed to a Governance Committee. The governance committee recruits and nominates new board members, and trains and evaluates the Board. The Finance/Audit Committee reviews the annual audit in detail with the auditor, participates in the procurement process for the auditor and advises on financial condition as needed. The Chair and liis/her appointee serve as the Personnel Committee, charged with overseeing the annual review of the Executive Director(s). The Development Committee meets on an as-needed basis to consider the finer details of a project as requested by the full Board. Public Participation The Board strives to maximize public understanding of, and participation in, housing authority matters. This public engagement is implemented by: • Public notice of meetings • Maintenance of a current and user-friendly web site • Meeting notification of regular meetings to all residents via the resident newsletter and the resident councils • Scheduling a minimum of one meeting each year at one of the three elderly buildings • Providing an agenda item for public participation at all regular meetings Public comment - Any member of the public in attendance is invited to address the Board on any topic that is on, or not on, the agenda during "Public Participation". It is the policy of the board to hear public comments as the first agenda item at the regularly scheduled Board of Commissioners meeting. Anyone wishing to speak will have the floor for a maximum of 3 minutes. The board is not expected to respond to, or answer, questions raised during public participation. The board will note requests and may respond at a later appropriate time after board members have an opportunity to consider and deliberate about the request. 7 Intended Attachments: Consideration of previous decisions and previously adopted policy How the Board evaluates itself How the Board evaluates the Executive Director How the Board provides training and support to itself 8 Excerpt from BHP's Procurement Policy: IX. ETHICS IN PUBLIC CONTRACTING A. GENERAL BHP shall adhere to the Conflict of Interest policy approved by the Board of Commissioners on August 25, 2003, the City of Boulder Conflict of Interest policy as adopted by BHP's and re-stated in BHP's Policy and Procedure Manual, and the following. B. CONFLICT OF INTEREST No employee, officer or agent of this PHA shall participate directly or indirectly in the selection or in the award or administration of any contract if a conflict, real or apparent, would be involved. Such conflict would arise when a financial or other interest in a firm selected for award is held by: 1. An employee, officer or agent involved in making the award; 2. His/her relative (including father, mother, son, daughter, brother, sister, uncle, aunt, first cousin, nephew, niece, husband, wife, father-in-law, mother-in-law, son-in-law, daughter- in-law, brother-in-law, sister-in-law, stepfather, stepmother, stepson, stepdaughter, stepbrother, stepsister, half brother, or half sister); 3. His/her partner, or, 4. An organization which employs, is negotiating to employ, or has an arrangement concerning prospective employment of any of the above. C. GRATUITIES, KICKBACKS, AND USE OF CONFIDENTIAL INFORMATION PHA officers, employees or agents shall not solicit or accept gratuities, favors, or anything of monetary value from contractors, potential contractors, or parties to subcontracts, and shall not knowingly use confidential information for actual or anticipated personal gain. D. PROHIBITION AGAINST CONTINGENT FEES Contractors shall not retain a person to solicit or secure a PHA contract for a commission, percentage, brokerage, or contingent fee, except for bona fide employees or bona fide established commercial selling agencies. ATTACHMENT Summary of Current City Issues Affecting Affordable Housing Harper Hollow Annexation Harper Hollow is a proposed project at 3015 Kalmia Ave. to annex an existing roughly 10 acre site between existing single-family development and the mixed-density Northfield Commons project and develop it with 57 attached and detached units. ail , _ IJ T1 IT 1 Palo Park - X11 - - - a -L - The project was recommended for annexation by the Planning Board. The site design and density of the project, which includes a total of 57 homes, (29 single family, 16 duplex units and 12 four-plex units) were supported by staff and the Board. The Planning Board approved 47.4% of the units as permanently affordable. The annexation agreement proposed at this time requires 45.6% of the units as permanently affordable. City Council considered the annexation on September 6, 2011 but did not adopt a final decision stating that the amount of affordable housing was too low to meet the community benefit test. Washington Village Wonderland Hill Development Company has requested a subdivision of the three acre Washington School property consistent with the Site Review; approved on February 25, 2009. The subdivision is proposed for the dedication of a 13,173 square foot public park on the corner of Cedar Avenue and 13th Street. i RH•2 side R1,1 side - D3 approved approved for for multi- r six single- .x family homes family homes. t l ter. -------------a E ai 7 m tl di I Outlot fi for eventual .L dedication to city Outlot C ~I - - h i,.- Outlot A - Subdivisions are subject to call up by Planning Board only to the extent they are inconsistent with an approved Site Review or where waivers have been requested. Boulder County TRENDS: Every two years, the Community Foundation issues its "Boulder County Trends" report on key indicators regarding quality of life in Boulder County. The Trends report has proved to be a reliable source of information about the changing issues affecting the Boulder community. A summary of the information presented in this year's Trends report is attached. The Board is also invited to the BHP offices at 10:30 on Friday, October 14 to attend a presentation on the Trends report by the Community foundation; more information can be lound at www.coiiirnfound.org US 36 Last month, Mayor Osborne reported that the Colorado Department of Transportation (CDOT) closed on the $54,000,000 TIFIA loan for the reconstruction of US36 - two new managed lanes for bus, high occupancy vehicles and tolled vehicles; facilities for bus rapid transit(BRT); and a beautiful, long distance bikeway. The project will eventually be bid in two phases, with the second phase making improvements all the way to the Table Mesa part: and ride. Planning and scheduling is in process. MEMORANDUM To: Board of Commissioners From: Management Staff Subject: Report of Activity Date: 10/3/2011 This month's Management report includes: Consent: None at this time Action: 2011 August Financial Summary Updates: Occupancy Status and Net Rental Income Resident Services 2012 Work Plan Current initiatives Foundation budget Attachments: 2011 August Financials CONSENT ITEMS: None at this time ACTION ITEMS: August 2011 Financial Summary August 2011 Boulder Housing Partners year-to-date revenues of $13,668,978 expenses of $11,798,949 and gains from the sale of Bluff of $487,523, the settlement of an insurance claim for $90,000 and debt forgiveness of $326,901, results in net income of $2,774,453 versus a budgeted income of $848,091. The positive variance of $1,926,361 is primarily a result of the recognition of the Red Oak Park development fees one month earlier than budgeted. The significant variances are explained as follows: 1 Statement offfai'iries Tenant Dwelling Rental Income of $3,105,548 is unfavorable to budget by $76,405 (A) primarily due to the increased vacancies at Arapahoe East and Bridgewalk resulting from the rehabilitation work on each of these properties. Rental write-offs are unfavorable to budget by $20,460 (B) as a result of'a cleanup of the outstanding receivables list and changing our accounting to establish a reserve for Bad Debt during the remainder o4'201 1. As a result ofthis change, 2011 will have an additional unbudgeted expense of approximately $25,000 through the remainder of 2011. Development Fees are favorable to budget by $1,230,892 (C1) as a result oftlle recognition of $1,140,104 from Red Oak Park in August. This income was budgeted for September so the variance will be significantly reduced in September's report. It is important to note that while the income has been earned, we are not expecting to receive the cash until 2012 with potentially $245,000 fiirther deferred until the project produces excess cash flows. The remainder of the positive variance is offset by the negative variance of $113,434 (C2) in Capital Improvement Grant Management Fees. Similarly, Resident Services Fee Income positive variance of $66,663 (D1) includes $52,478 management fees from Federal Service Grants. This is partially offset by the Service Grant Expense negative variance of $32,767 (D2). These two offsetting variances (C & D) result from accounting changes for both development fees earned from capital grants and management fees earned from service grants to accommodate HUD reporting. These items will be eliminated in the year end consolidated financial statements. The 2012 budget will take this into consideration. Federal Capital Grants unfavorable variance of $279,413 (E) is a timing di fference between the budget and actual spending on capital projects. A portion of the 2011 allocation of Capital Funds for Public Housing is now being targeted to MTW use in 2012 so the variance is expected. Interest Income s positive variance of $85,305 (F) relates to additional interest on the new Sage Court note and to the interest subsidy received from the Federal Government for the Qualified Energy Conservation Bonds (QECB) and Build America Bonds (BAB) that were used to finance the Energy Performance Contract. The Treasury refiinds 70% of the interest charged on the QECB and 35% of the interest on the BAB resulting in a significantly lower effective interest rate. Our auditors have confirmed that we are required to classify this subsidy as income rather than reducing the interest expense. The Miscellaneous Revenue positive variance of $219,223 (G) includes a rebate of $161,000 from Xcel Energy for the solar system installed on Walnut Place. This cash was used to complete the Northport Solar system. In addition, we have received unbudgeted income from Section 8 fraud recoveries and FSS forfeitures totaling $50,000. Of this amount only $18,000 is available for Section 8 administrative expenses. The remainder is restricted to future HAP. 'As a reminder, we budgeted 2011 interest income under the assumption that Thistle would pay the note on Sage Court in full at Maturity. In fact we refinanced the note and rolled the unpaid accrued interest into the Principal amount. We will be earning $1,570 per month on this note. 2 Extraordinary Maintenance of $185,902 (H) was reduced in August by $53,000 reclassified to ordinary Contract Labor & Repairs. This was the result of a clarification of the definition and a detailed review of this account. Items still included as extraordinary maintenance are expenditures for siding repairs at Kalmia; electrical work at Madison, Manhattan and Hayden P1.; hazardous materials testing across all sites; rental license inspection fees; and bedbug work across the portfolio. Water and Sewer has a positive variance of $54,303 (I) which includes $40,000 from the Public Housing properties and Gas has a positive variance of $23,059 (J) which includes $19,000 from the Public Housing properties. This savings is attributed to the Energy Performance Contract work to reduce energy consumption at these sites. Selling expenses of $20,096 (K) relate to the sale of the property on Bluff Street which was completed in June. Amortization expense unfavorable variance of $162,814 (L) includes the write-off in March of $13,469 related to an old, paid-off loan secured by 101 Pearl. The associated loan costs were never removed from the books. As reported last month, in July we discovered the Bridgewalk loan costs 1-or the maturing US Bank loans had been amortized over the 30 year loan amortization life rather than the 15 year maturity. This resulted in a July write-off of $52,546. These discoveries resulted in a complete audit of the amortization schedules across the entire portfolio in August. As a result of the audit we recorded additional expense of $50,000 to correct the errors. Finally, in July we expensed the remaining $28,255 of costs of the Mercy Loan for Bridgewalk which was paid off prior to maturity. Depreciation favorable variance of $135,215 (M) results from the delay vs. budget in delivery of various construction projects such as the EPC and Bridgewalk. HCV-HAP Expense positive variance of $270,198 (N) relates to the slower than budgeted lease up of the 100 new vouchers for non-elderly disabled individuals. Gain on Disposition of Property of $487,523 (O) is from the sale of the Bluff Street property and Extraordinary Income of $416,901 (P) 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 year-to-date increase in unrestricted cash of $455,355 (Q) is more frilly explained on the monthly cash report however the major items contributing to the increase are the receipt of $268,000 in developer fees from Broadway West, 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 decrease in Accounts Receivable $1,007,751 (R1) and increase in Accounts Receivable - Tax Credits results from a reclassification of developer fees receivable from Accounts Receivable to Accounts Receivable - Tax Credits. This conforms to our internal reporting to the presentation in the audit report. The AR Tax Credits now reflects all amounts due from related parties. 3 Restricted Cash declined by $1,328,695 (S 1) as we spent money borrowed to complete the work at Public Housing sites for the Energy Performance Contract. There is a corresponding increase in Capital Assets (S2). Notes receivable increase of $368,562 (T) relates to a $140,000 note from Red Oak Park for funds loaned to the project. We expect this to be repaid in early 2012. In addition there is an increase of $228,561 related to the restatement of interest to principal at maturity of the Sage Court note to Thistle refinanced earlier this year. Accounts Payable declined by $610,766 (U) as we paid invoices on our construction projects that were accrued at year end 2010. 'rhe large decline of Current Portion of Long Term Debt of $5,120,622 (VI) reflects the entire balance due of $5,048,000 on the Bridgewalk Loans that were paid off in July. This decline is offset by the increase in Mortgages Payable of $6,101,300 (V2) as the refinanced loan is classified long term. The amount of Long term Mortgages will continue to increase as the funds are drawn for the Bridgewalk property improvements. ,Slatemenl of Cash Flows The Statement of Cash Flows provides detail on the overall year-to-date increase in Cash and Cash equivalents of $455,355 (W). The significant items in August are the increase in Account Receivable (X) from the Red Oak Park developer fee and the reduction in Construction in Progress (Y) which resulted in an increase in Real Estate Assets (Z). Porlfblio Anal )sis Report Overall performance of the portfolio remains strong with BHP debt service coverage at a combined 1.57 and the Tax Credit entities at 1.46. Bridgewalk remains strong during the rehab process at 1.47. This will be affected by the increasing balance of the debt as construction proceeds and by increasing rents on the remodeled units. Canyon Pointe at 1.17 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 for all 4 properties combined and indicates a Debt Service Coverage Ratio of .87 for the loan. This is substantially affected by the rehab work currently underway at Arapahoe Fast. 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, the consolidated loan would be at approximately 1.10. Sanitas Place is operating in accordance with budget. Improvements are not expected until the rehabilitation is completed in 2012. Twin Pines was affected be several unit turns this month. Red Oak Park achieved a 1.35 ratio fi•om July 1 when we reached full occupancy. 4 UPDATES: Occupancy Status and Net Rental Income The combined net rental income for all of BHP properties through August was $3,894,817 compared to a budgeted net rental income of $4,017,825 which is a negative variance to budget of" $123,008 (-3.1 The combined net rental income for all of the Tax Credit Properties through August was $1,542,493 compared to a budgeted net rental income of $1,499,902 which is a positive variance to budget of $42,591. (d-2.84%) Several of BHP property groups were showing negative net rental income at the end of the August. The variances in Public Housing income are improving but still primarily due to a funding delay because of the federal budget process. The variances in Section 8 Project Based Properties are improving but still due to lower revenue at Canyon Pointe and higher than normal vacancy at North Haven. The variance in the Workforce portfolio income is the result of a large number of vacancies at Bridgewalk and Arapahoe East and Hayden Place related to renovation. Staff has deliberately held units out of the rental pool for substantial rehabilitation at these three properties. This trend will continue through March 2012 as we continue taking approximately 20 units per month off line at Bridgewalk for additional rehab over the next few months. When all portfolios are rolled up, NOI is negative to budget. However, with the refinance of Bridgewalk in August, we are not currently paying debt service. We anticipate finishing the year in a positive cash position. The BHP year-to-date occupancy through August was 96.17%, compared to a budgeted occupancy rate of 97%. The combined physical occupancy rate for tine Tax Credit portfolio year-to-date through August was 98.77%, compared to a budgeted occupancy of 97%. Red Oak Park update - Red Oak Park was frilly leased as of August 2, 2011. Net rental income for the property through August is right on budget ($177,310 compared to a budgeted net rental income of $177,028) Occupancy for August is 99.45%. We anticipate the property will meet or exceed our standard property occupancy goal of 97% fi•om here forward. Staff will add the Red Oak inforination to the monthly combine Occupancy Status and Net Rental Income report starting in January of 2012. 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 ofall the family sites and Public Housing II is comprised of the two senior sites. Public Housing I properties - Arapahoe, Diagonal, h•is/i-Iawthorne, Kalmia, Madison and Manhattan. - 187 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 Last, Bridgewalk, Dakota Ridge, Hayden Place, Midtown, Orchard House, Sanitas Place, Twin Pines, Whittier and Woodlands- 270 Tax Credit properties - Broadway East, Broadway West, Foothills Community, I loliday Neighborhood, and Red Oak Park, Vistoso - 267 units 5 Total units combined - 993 August 2011 Net Rental Net Rental Net Rental Physical Physical Variance Income - Income - Income - Occ Oce to YTD Bud et Variance YTD Bud Ct Budeet Public 98.39% 97% 1.39% Housing - 1 $721,000 $738,640 Public is 97.71% 97% 0.71% flOUshig - 11 $454,483 $470,016 PB Sec. 8 ~ 98.20% 97% 1.20% properties $824,594 $838,544 Work force $1,892,008 $1,970,625 (575.3:93.40% 97% -3.60% 131-11' 1)01.tfolio $3,894,817 $4,017,825 " i 96.17% 97% -0.83% combined Broadway $350,356 $333,519 $16,837 98.12% 97% 1.12% Fast Broadway $170,457 $167,023 $3,434 98.33% 97% 1.33% West Foothills $615,070 $596,927 $18,143 99.77% 97% 2.77% Holiday $312,481 $309,821 $2,660 98.46% 97% 1.46% Vistoso $94,128 $92,612 $1,516 97.55% 97% 0.55% TC portfolio $1,542,492 $1,499,902 $42,590 98.77% 97% 1.77% combined Resident Services - Current initiatives As we transition from summer programing at the Family sites to holiday programing at the senior sites, as well as beginning to think about 2012 budget and workplan, it feels like a good time to provide an update on Resident Services department work this year. Currew slaf in and 2012 ivork plan The department is currently staffed with 3.75 FTE working directly with residents on service coordination, advocacy, and self-sufficiency initiatives. With the award of MTW status, we have taken the opportunity to look again at the structure of the department. MTW plays an important role in our planning for three reasons - (1) through our MTW application, we have made bold commitments to investing in resident self-sufficiency and the services to support residents' economic and academic success; (2) with the Conversion Of public housing, we will lose eligibility for two grants that we currently receive; the 6 requirements of which shape our program significantly; and (3) MTW fimding will allow us greater flexibility to fund stalling and programs to best meet our local needs, both From a resident and a staff perspective. Our proposal is to re-organize our 2012 goals around four initiatives: 1. Keeping residents housed appropriately (all sites) 2. Promoting and supporting economic success (family sites) 3. Promoting and supporting academic success (family sites) 4. Providing advocacy and service coordination (senior sites) Our Health and Safety Coordinator (whose work has been primarily with management, education, and prevention around bed bug infestations) was originally hired in the Resident Services department in 2009. This has been a very successful hire', and she has recently transitioned to the maintenance department and taken on new responsibilities for coordinating integrated pest management. Our Resident Services Manager position is currently open, with /Anna Kay Johnson having transitioned into the role of family Site Service Coordinator. She is managing the Public Housing Family Self Sufficiency grant responsibilities and service coordination for Red Oak Parlc, Broadway East, and Glen Willow. We anticipate posting for a replacement Resident Services Manager before the end of 2011. In the draft budget, we also anticipate an internal hire in lease compliance, and one additional hall time FTE to support services at the senior sites. Currew initiatives cn tl uptlaics For Families • The PI-I-FSS program has been brought in-house, with case management being provided by Am1a Kay Johnson. This program will provide a vehicle for transition into an MTW program to promote self sufficiency for all "work able" residents. • Red Oak Park programming is underway with a selection process for a partner to share the Community center space and provide afterschool programming nearly complete. We also have a highly motivated group of residents who want to start a resident council and ESL classes beginning in October. Plans are underway for a computer lab and training program. • Fund raising and grant writing have paved the way for additional programming, such as computer classes, early childhood parent training classes, anti-bullying trailing, and ESL classes at family public housing sites. • Community meetings at all the family sites have provided an avenue for residents to identify community issues and discuss common solutions. We have tailored the agendas to address the particular concerns at each site, and we have also visited all the sites to discuss MTW rent reform and conversion of public housing. The two grants are the PI-I FSS Year 6 funding, and the ROSS Service Coordinator Grant, both of which were awarded this summer. We have been working to understand the exact timing and impact of when we will loss those funds; we are confident the increased finicling from public housing conversion is more than adequate to cover the lost grants. 3 We have managed pest issues with much greater ease on staff; and lower cost per infectecl unit. BI-IP received the HARRI (Housing Authority Risk Retention and Innovation) Award from Housing Authority insurance for our innovation in risk control through the program. 7 • We have conducted resident surveys and outreach on energy conservation with the help of a CU intern this past Summer. For Early Childhood • We have surveyed all public housing families to understand if children are enrolled in BVSD's programs. We learned that there are 28 three- and four-year-old children currently living in our public housing family sites. Nineteen (68%) are enrolled in preschool (Columbine, Creekside, UniHill, Headstart, New Horizons). Three families are exploring preschool options with the BHP resident services coordinator Karin Stayton. Two families are waiting until their children turn four to enroll them. Four families with three-year-olds have not yet been reached to assess preschool enrollment; the resident services coordinator will continue to provide outreach to these families. It is our intention to conduct an annual push to Support enrollment. • We have 14 clients enrolled in a three step parenting class to support school readiness for 0-5 year olds. For seniors and persons with disabilities • We continue to provide service coordination and advocacy for our senior and disabled residents. These programs are staffed with 1.5 FTB, serving approximately 260 households. On average we provide 35 unduplicated contacts per month. Current initiatives include: o A benefit resources overview training at each site and for staff o Participation on the local Adult Protection Team o Quarterly check ins with law enforcement and other community partners o One on one outreach, assessments, and follow-up support o Distribution of emergency preparedness kits o Coordination of resident activities and councils o Coordination with partners such as Meals on Wheels and Special Transit. o Creation of a database to track residents' use of community resources; lead by MSW intern from CU Denver. With Volunteers • We have facilitated and tracked 3,583 total volunteer hours, including: 0 1,512 BHP resident hours 0 2,071 hours worked by non-BHP residents of the community o Completed 12 group volunteer projects 8 BHP Statement of Activities August 31, 2011 YTD YTD Ref Actual Budget Variance $ % Var REVENUE Operations Revenue Tenant Dwelling Rental A $ 3,105,548 $ 3,181,953 $ (76,405) -2.4% Non Dwelling Rental Income 7,929 7,765 164 2.1% Rental Write-offs B (38,225) (17,765) (20,460) 115.2% HUD-Operating Subsidy 309,028 327,920 (18,892) -5.8% HAP Project Based Assistance 510,537 517,952 (7,415) -1.4% Total Operations Revenue 3,894,817 4,017,825 (123,008) -3.1% Fee Revenue Asset Fee Revenue 58,200 58,240 (40) -0.1% Property Mgmt & Bkkpg Fee 373,690 374,136 (446) -0.1% Development Fees C1 1,288,292 57,400 1,230,892 2144.4% Mgmt Fees - Tax Credits & S8 230,412 230,976 (563) -0.2% Res Svc Fee Income D1 212,621 145,957 66,663 45.7% Total Fee Revenue 2,163,215 866,709 1,296,506 149.6% Grants and Subsidies HCV-HAP Revenue 4,655,528 4,626,416 29,112 0.6% Non Federal Grants and Donations r'r 620,979 645,000 (24,021) -3.7% Federal Capital Grants E 552,894 832,307 (279,413) -33.6% Federal Service Grants 264,101 306,274 (42,173) -13.8% Total Grants and Subsidies 6,093,502 6,409,997 (316,495) -4.9% Other Revenue Tenant Late Fees 13,834 11,594 2,240 19.3% Tenant Work Order Charges 8,205 8,840 (635) -7.2% Tenant Reim - Utilities 41,964 30,508 11,456 37.6% Interest Income F 472,044 386,739 85,305 22.1% Total Laundry 42,652 45,480 (2,828) -6.2% Community Center Revenue 2,400 3,832 (1,432) -37.4% Maint Charges to Prop 700,113 730,000 (29,888) -4.1% Miscellaneous Revenue G 236,233 17,010 219,223 1288.8% Total Other Revenue 1,517,444 1,234,003 283,442 23.0% Total Revenue 13,668,978 12,528,534 1,140,444 9.1% EXPENSES Salaries and Benefits Total Salaries 2,436,227 2,509,368 73,141 2.9% Total Salaries and Benefits 2,436,227 2,509,368 73,141 2.9% Property Costs Capital Improvement Grant Mgmt. Fees C2 113,434 0 (113,434) -100.0% Management Fees 125,232 130,547 5,315 4.1% Maintenance Materials 159,483 172,363 12,880 7.5% Contract Labor & Repairs 519,915 552,296 32,381 5.9% BHP Contract Labor 565,057 575,600 10,543 1.8% Extraordinary Maintenance H 185,902 80,000 (105,902) -132.4% Garbage and Trash Removal 89,549 76,520 (13,029) -17.0% Water and Sewer 1 134,463 188,767 54,303 28.8% Electricity 122,156 123,920 1,764 1.4% Gas J 124,781 147,840 23,059 15.6% PILOT 72,673 66,080 (6,593) -10.0% I-IOA Fees 4,940 3,100 (1,840) -59.4% Selling Expenses K 20,096 0 (20,096) -100.0% 1 of 2 10/4/20118:23 AM BHP Statement of Activities August 31, 2011 YTD YTD Ref Actual Budget Variance $ % Var Total Property Costs 2,237,680 2,117,032 (120,647) -5.7% Operating Expenses Amortization Expense L 183,174 20,360 (162,814) -799.7% Asset Management Fee 58,200 58,240 40 0.1% Audit Fees 31,832 31,832 (0) 0.0% Background Checks 7,107 6,028 (1,079) -17.9% Bank Fees 4,630 4,240 (390) -9.2% Board Expense 3,840 2,868 (972) -33.9% Community Center Exp 880 880 0 0.0% Consultants 3,904 35,410 31,506 89.0% Depreciation M 938,820 ",074,035 135,215 12.6% Dues and Fees 24,902 30,812 5,910 19.2% Expendable Equipment 60,410 67,014 6,604 9.9% HCV-HAP Expense N 3,946,802 4,217,000 270,198 6.4% Insurance Expense 124,975 134,560 9,585 7.1% Interest Expense 2,672 5,600 2,928 52.3% Legal Expense 25,439 9,576 (15,863) -165.6% Mileage 5,801 7,476 1,675 22.4% Miscellaneous - Expense 12,287 16,806 4,519 26.9% Mortgage Interest Expense 699,634 686,611 (13,023) -1.9% Non-Salaried Personnel 26,725 30,600 3,875 12.7% Advertising/Marketing 15,444 8,416 (7,028) -83.5% Office Supplies 25,485 21,640 (3,845) -17.8% Phone Expense 36,623 40,848 4,225 10.3% Postage Expense 11,382 9,440 (1,942) -20.6% Printing Expense 19,102 20,800 1,698 8.2% Property Mgmt & Bkkpg Fee Exp 373,690 374,176 486 0.1% Publications - 480 480 100.0% Resident Relocation 1,865 - (1,865) -100.0% Res Svc/Strategic Planning Fee Exp 136,152 136,704 552 0.4% Staff Training 33,098 51,681 18,583 36.0% Service Grant Expense D2 264,001 231,235 (32,767) -14.2% Vehicle Expense 42,495 40,040 (2,455) -6.1% RRC Allocation 3,668 5,536 1,868 33.7% Total Operating Costs 7,125,042 7,380,943 255,901 3.5% Total Expenses 11,798,949 12,007,344 208,394 1.7% Net Income before Other Items 1,870,029 521,190 1,348,839 258.8% Gain (Loss) on Disposition of Property O 487,523 - 487,523 100.0% Extraordinary Income (Expense) P 416,901 326,901 90,000 0.0% TOTAL NET INCOME (LOSS) $ 2,774,453 $ 848,091 $ 1,926,362 227.1% 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 CDBG as anticipated. No net effect on budget. 2 of 2 10/4/20118:23 AM BHP Balance Sheet August 31, 2011 and December 31, 2010 Actual Actual Net Change Ref August-11 December-10 YTD ASSETS Current Assets Unrestricted Cash and Cash Equivalents Q $ 2,523,711 $ 2,068,356 $ 455,355 Reserved Cash - Replacements 733,696 731,270 2,426 Accounts Receivable R1 262,958 1,270,709 (1,007,751) Accounts Receivable-Tax Credits R2 1,416,078 108,187 1,307,891 Prepaid Expenses 73,565 71,121 2,444 Supplies-Inventory 25,028 24,331 697 Total Current Assets 5,035,036 4,273,974 761,062 Restricted Cash Restricted Cash - Other S1 463,029 1,791,724 (1,328,695) Restricted Cash - Section 8 1,067,911 721,195 346,716 Restricted Cash - Tenant Security Deposits 388,393 388,795 (402) Total Restricted Cash 1,919,333 2,901,714 (982,381) Capital Assets Construction in Progress 2,968,897 4,493,040 (1,524,143) Furniture Fixtures and Equipment 541,594 465,941 75,653 Real Estate Assets-Land and Buildings S2 55,887,780 51,042,321 4,845,459 Less: Accum Depreciation Real Estate Assets (29,082,570) (28,334,063) (748,507) Total Capital Assets 30,315,701 27,667,239 2,648,462 Other Assets Notes Receivable T 10,125,767 9,757,205 368,562 Interest Receivable Notes 3,127,448 3,222,076 (94,628) Partnership Investments 432,625 432,625 0 Net Amortized Costs 658,398 853,683 (195,285) Total Other Assets 14,344,238 14,265,589 78,649 TOTAL ASSETS $ 51,614,308 $ 49,108,516 $ 2,505,792 LIABILITIES & EQUITY LIABILITIES Current Liabilities Accounts Payable U $ 423,180 $ 1,033,946 $ 610,766 Accrued Payroll 111,324 66,922 (44,402) Accrued Payroll Taxes Payable - 26,626 26,626 Accrued Compensated Absences 261,815 254,754 (7,061) Other Accrued Expenses 221,798 346,383 124,585 Deferred Revenue 16,664 283,665 267,001 Current Portion of Long Term Debt V1 285,649 5,406,271 5,120,622 Prepaid Rent 36,658 12,683 (23,975) Security Deposits 396,671 389,365 (7,306) Total Current Liabilities 1,753,759 7,820,615 6,066,856 Long-Term Liabilities Notes Payable 99,171 351,171 252,000 Accrued Interest Payable 28,966 80,070 51,104 Mortgages Payable V2 20,085,368 13,984,068 (6,101,300) Bonds Payable 1,564,386 1,564,386 0 Total Long-Term Liabilities 21,777,891 15,979,695 (5,798,196) TOTAL LIABILITIES 23,531,650 23,800,310 268,660 EQUITY Total Equity 28,082,658 25,308,206 (2,774,452) TOTAL LIABILITIES AND EQUITY $ 51,614,308 $ 49,108,516 $ (2,505,792) 1 of 1 10(4120118:23 AM BHP Statement of Cash Flows for the Month and Year to Date Ending August 31, 2011 Ref Month to Date Year to Date Reconciliation of Net Income to Net Cash Provided (Used) by Operating Activities Net Income (Deficit) $ 1,153,888 $ 2,774,453 Adjustments to Reconcile Net Income to Net Cash Provided (Used) by Operating Activities Increase (Decrease) Accum DepreciAmort 160,703 943,792 (Increase) Decrease in Accounts Receivable X (1,195,704) (300,140) (Increase) Decrease in Prepaid Expenses (30,734) (2,444) Increase (Decrease) in Prepaid Rent and Security Deposits 9,550 31,281 (Increase) Decrease in Supplies/Inventory 1,619 (697) (Increase) Decrease in Reserved Cash (10,716) (2,426) (Increase) Decrease in Restricted Cash 165,688 982,381 Increase (Decrease) in Payables and Accrued Expenses 161,171 (710,514) Increase (Decrease) in Deferred Revenue (9,836) (267,001) Total Adjustments (748,259) 674,232 Net Cash Provided (Used) by Operating Activities 405,629 3,448,685 Cash Flows from Investing Activities (Increase) Decrease in Construction in Progress Y 1,529,213 1,524,143 (Increase) Decrease in Furniture Fixtures and Equipment 0 (75,653) (Increase) Decrease in Real Estate Assets z (2,243,356) (4,845,459) (Increase) Decrease in Notes and Interest Receivable (50,296) (273,934) Net Cash Provided (Used) by Investing Activities (764,438) (3,670,903) Cash Flows from Financing Activities Increase (Decrease) in Current Portion of Long Term Debt (0) (5,120,622) Increase (Decrease) in Notes Payable 0 (252,000) Increase (Decrease) in Mortgages and Bonds Payable 411,735 6,050,196 Net Cash Provided (Used) by Financing Activities 411,735 677,574 Net Increase (Decrease) in Cash and Cash Equivalents Net Increase (Decrease) in Cash and Cash Equivalents W 52,925 455,355 Unrestricted Cash and Cash Equivalents - Beginning 2,470,786 2,068,356 Unrestricted Cash and Cash Equivalents - Ending $ 2,523,711 $ 2,523,711 1 of 1 10/4120118:23 AM Boulder Housing Partners Cash Report August 31, 2011 CASH NEEDED FOR OPERATIONS AND RESERVES Aug-11 Jul-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 $ 163,507.67 $ 164,762.40 $ (1,254.73) 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 $ Landscapinq Escrow - Set Aside $ 72,857.81 $ 72,871.62 $ (13.81) Total cash needed 2,506,365.48 $ 2,507,634.02 $ (1,268.54) TDtal Unrestricted Cash Available fo- Operations $ 1,439,785.49 $ 1,355,018.54 $ 84,766.95 Restricted Cash for FH and BMM $ 163,507,67 $ 164,762.40 $ (1,254.73) Unrestricted Cash Tarqeted for Woodlands Rehab $ 501,682.94 $ 453,774.87 $ 47,908.07 Unrestricted Cash Avail. for Replacements - Proj, Based only $ - $ - $ - Unrestricted Cash Available for Replacements $ 253,010.12 $ 306,457.39 $ (53,447.27) Development Funds Set Aside (Landscaping Escrow) $ 72,857.81 $ 72,871.62 $ (13.81) Total Cash available for Operations, Replacement and Set Asides 2,430,844.03 $ 2,352,884.82 $ 77,959.21 Overage (Shortage) $ (75,521.45) $ (154,749.20) $ 79,227.75 IMPACT: p -ontinue to run short of the Board designated targets for operations and reserves. The impact is that rehabilitation projects may be delayed -.nd ~f>'t r-Hr'+I'nor mvo !hr fir, .1'I%.'-Ir~ nr~nr n ~~.«t!i~ifL_n n_.npnrhiniY- r ^i,.inc CASH NEEDED FOR PUBLIC HOUSING AND PROJECT BASED PROPERTIES Aug-11 Jul-11 Change Restricted Cash - Public Housinq & Project Based - Tarqet $ 650,000,00 S 650,000.00 $ - Restricted FSS Escrow $ 7,043.71 s 6,049.71 $ 994.00 Restricted Cash - Public Housinq & Project Based - Actual $ 852,069.37 s 1,096,210.16 $ (244,140.79) Total PH and Project Based Cash 859,113.08 $ 1,102,259.87 $ (243,146.79) Overage (Shortage) $ 209,113.08 $ 452,259.87 $ (244,140.79) 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. CASH NEEDED FOR SECTION 8 Aug-11 3ul-11 Change Cash Needed for 1 month of HAP and Admin - Tarqet $ 525,000.00 S 525,000.00 $ Restricted Cash Available for Section 8 Operations - Actual $ 363,303.13 $ 370,886.10 $ (7,582.97) Restricted Funds Available for Use on HAP and FSS escrow $ 1,104,710.16 5 971,594.54 $ 133,115.62 Total Section 8 Cash $ 1,468,013.29 $ 1,342,480.64 $ 125,532.65 Overage (Shortage) $ 943,013.29 $ 817,480.64 $ 125,532.65 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 is building due to full funding received for the 181 new vouchers which are still in the lease-up process. This will be drawn down in 2012. $300,000 Line of Credit Terms: If drawn on, terms are interest only variable rate of approx 5%, payment in full due November 2011 BoulderHoush Partners - PortfolioAnahjsis 2011 Months in 8 Annualized Adjusted PUPA PUPA PUPA PUPA Adjuster! Property Address Units EGI OpEx NO[ Debt DSCR Yf'D Arapahoe Court 951,953 Arapahoe 14 $ 5,625 $ (7,269) $ (1,644) $ - - Diagonal Court 3265-3273 30th St. 30 $ 6,198 $ (5,364) $ 834 $ - Iris Hawthorne 1650-1690 Iris Ave. 14 $ 6,613 $ (6,072) $ 542 $ - - Kalmia 3500 Nottingham 53 $ 6,772 $ (6,571) $ 201 $ - - Madison 1130-119035th St. 33 $ 5,910 $ (6,184) $ (274) $ - - Manhattan 660-690 Manhattan 43 $ 5,666 $ 6,439 $ 774 $ - - Public Housing I Sub Total: 187 $ 6,176 L_(6,294$ 118 Northport 1133 Portland Place 50 $ 5,088 $ (5,624) $ (536) $ - - Walrut Place 11940 Walnut Place 95 $ 7,647 $ 4,983 $ 2,664 $ - - Public Housing II Sub Total: 145 $ 6,764 $ 5,204 $ 1,561 Canyon Pointe 700 Walnut 82 $ 9,717 $ (5,143) $ 4,575 $ 3,915 1.17 Glen Willow 301-333 Pearl St. 34 $ 10,871 $ (7,419) $ 3,452 $ - - North Haven 2550 9th St. 8 $ 11,843 $ 8,123 $ 3,720 $ - - Project Based Sub Total: 124 $ 10,171 $ 5,959 $ 4,212 $ 2,589 1.63 Arapahoe East 4610 Arapahoe 11 $ 7,498 $ (6,957) $ 541 $ 3,631 0.15 TL Dakota Ridge 4900 10th St. 13 $ 13,332 $ (4,445) $ 8,888 $ 7,643 1.16 TL Sanitas Place 3640 Broadway 12 $ 8,264 $ (5,377) $ 2,888 $ 4,498 0.64 TL Twin Pines 1700 22nd St. 22 $ 8,499 $ 4,826 $ 3,673 $ 3,635 1.01 TL TL Sub Total: 58 $ 9,344 $ (5,259 $ 4,085 $ 4,711 0.87 101 Pearl 101 Pearl 6 $ 13,457 $ (5,012) $ 8,445 $ - - Bridgewalk 602-698 Walden Circle 123 $ 11,579 $ (4,731) $ 6,848 $ 4,664 1.47 Hayden Place 34th & Hayden Place 24 $ 8,161 $ (6,037) $ 2,124 $ 3,873 0.55 HP Midtown 837 20th St. 13 $ 9,343 $ (4,517) $ 4,826 $ - - Orchard House 1 $ 65 $ (4,758) $ (4,694) $ - - Whittier 1946 Walnut St. 10 $ 9,065 $ (6,618) $ 2,447 $ 3,113 0.79 Woodlands 2600 Block of Mapleton 35 $ 13,747 $ 7,412 $ 6,335 $ 3,405 1.86 Workforce Sub Total: 269 $ 10,915 $ 5,376 $ 5,538 $ 4,053 1.37 Portfolio Totals: 725 $ 8,735 $ (5,678) $ 3,057 $ 1,946 1.57 2011 Tax Credit Properlies Address Units PUPA PUPA PUPA PUPA Adjusted EGI O ?Es NO[ Debt DSCR Broadway East 3160 Broadway 44 $ 12,402 $ (5,483) $ 6,919 $ 3,214 2.15 Red Oak Parkes 27th & Valmont 59 $ 10,157 $ (4,956) $ 5,201 $ 3,857 1.35 Foothills 4500 block of 7thl8th 74 $ 12,640 $ (4,498) $ 8,142 $ 6,385 1.28 Holiday 1500 Lee Hill 49 $ 9,787 $ (4,546) $ 5,240 $ 3,629 1.44 Vistoso 4500 Baseline 15 $ 9,808 $ (5,941) $ 3,867 $ 2,768 1.39 Broadway West 3120 Broadway 26 $ 10,346 $ 5,035 $ 5,311 $ 3,232 1.64 Tax Credit Sub Total: 267 $ 11,146 $ (4,904) $ 6,242 $ 4,288 1.46 `Red Oak Park numbers annualized as of July 2011 when full lease-up Properties in Transition Address occurred and operations where stabilized Bluff Street 2232 Bluff St. Index of terms BMM/Red 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) NOI - Net Operating Income = (Net Income + Non OpEx) DSCR - Debt Service Coverage Ratio = NOIIDebt ADJUSTED - For Capital Grants, Capital Exp. and Extrodinary Maint. MEMORANDUM TO: Board of Commissioners PROM: 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: October 4, 2011 This wouth's development rej)ort includes: Consent: None at this time Action/Discussion: Lce Hill Updates: Public Housing Conversion High Mar Red Oak Park Project Tracking Form and Timeline Attachments: Project Tracking Form and Timeline CONSENT ITEMS None at this time ACTION/ DISCUSSION ITEMS LEE HILL HOUSING Previous Board Meeting: At the last meeting. we provided the following information: • We provided background inlormation on the federal and local requirements that would eliminate a potential resident from consideration for a Housing First unit; • We provided an update about the neighborhood outreach event; and • That we have postponed application of the zoning review application. Progress since Previous Board Meeting: Neighborhood Outreach: On September 29, 2011, from 6 - 8 pm at the Armory, we hosted a public meeting, which was the first step in our neighborhood outreach process. We spent two months planning the logistics and content for that meeting. Tile agenda consisted of the following: • Open house for attendees to meet and talk with staff and other local agency representatives; • Powerpoint presentation that included; 0 opening remarks by Betsey; o a summary of case management from Mike Block from the Shelter; and o a summary of the design and planning effort to date by Shannon; • Responses to written questions from the audience; and • Resumption of the open house. We estimate that over 300 people attended the meeting including residents from Holiday, Dakota Ridge and Northbriar Estates, and beyond. Reactions to the meeting program were mixed. It was clear, after the power point presentation, that the Q&A period was not productive. We closed that portion of the meeting at a little after 7 pm, and returned to the Open House format. The Armory doors were closed a little after 8 pm. Issues: In conversation, testimony and in written format, we have identified the following areas of neighborhood concern: • The public's limited role in the development approval process; • The concentration of affordable housing in the north Boulder sub-conununity; • Neighborhood safety and security associated with locating PSH next to an overnight homeless shelter; • Whether the project meets the City's "use" definition for Transitional Housing; • Consideration of alternate locations; • Impacts of Housing First Communities on surrounding neighborhoods i.e., (property values, safety, etc.); • Impacts ol'the homeless population on area residents and how/whether these impacts are being addressed; • Whether the project will increase the number of homeless in the neighborhood • Safety of children and others riding the SKIP; • Screening criteria for potential residents; • Building operations and security; and • Architecture and site design. As noted in the presentation, we collected all of the emails and comments from the participants. We are transcribing these comments and questions and will post responses on our website shortly. Research: Also as part of the meeting, there were several subjects for additional research that we identified: • Research from other I IOUSing first communities and protects to document the success of these programs; • Potential sites that serve a similar community that could be visited; and ° Zoning analysis. We understand that City staff has been asked to research some issues and we will coordinate with HI-IS staff to support their efforts. Process: As we reported at the meeting and in our letter to City Council, we plan to implement the following steps as planned in the continuation Of our outreach process: • Provide regular project updates via our website and an email database; • Post responses to questions and concerns on our website; • Maintain an email list of interested persons who can be notified of project developments; • Post accurate and current information on our website; and • Host additional sub-neighborhood, small group, and/or individual meetings as needed or requested. For the discussion at the Board meeting, we would like your input and guidance on these three topics: are there any additional issues or questions you would like to add to the list of concerns, any other issues that you would like us to research; and whether or not we have identified the right steps in the continuing outreach process. Next steps: 0 Continue implementation of the neighborhood outreach process. UPDATE ITEMS PUBLIC HOUSING CONVERSION Previous Board Meeting: • We provided background information on the proposed public housing conversion and the application requirements for HUD; and • The Board reviewed and approved a resolution regarding the assignment and the delegation of Private Activity Bonds. Progress since Previous Board Meeting: For the past several months, the development team has begun assembling the information necessary for the application to HUD for the conversion and rehabilitation of all the public housing sites as part of the Moving to Work activities. This is the same model we successfully used to convert, refinance, and rehabilitate the 44 units at our Broadway East property. We intend to submit one application for all eight of the public housing sites. However, implementation would occur in several phases over two to five years as needed. The standard application consists of several narrative explanations and outside pieces of documentation as listed below: • Environmental review; • Letter of aclaiowledgement from the Mayor; • Site maps and legal descriptions; • Appraisals for each site; • A narrative explanation describing the use of any proceeds; • A narrative justification for the disposition of these properties; • Estimated development costs; • A description of the consultation with residents; • A description of advisory services and relocation assistance to be provided ; • A resolution from the Board of Commissioners. Staff has begun drafting this application and will request consideration of the resolution by the Board in November. Next steps: • Final review of the draft application for disposition; and • Review and selection of capital needs assessments for the either properties. HIGH MAR Previous Board Meeting: At the last meeting, we provided the following information: • An update of staff s research for alternatives to finance the High Mar project so that we can break ground sooner than the 9% tax credit program would permit. Progress since Previous Board Meeting: We are currently reviewing five alternatives to close the nearly $4 million gap in funding if we use a 4% low income housing tax credit approach. We have completed some of the requested due diligence and plan to return to the Board with a recommendation in November. Next steps: • Continue to conduct due diligence on the 4% LIHTC financing scenario. RED OAK PARK Previous Board Meeting: At the last meeting, we provided the following information: • The completion of construction and leasing activities including receipt of the Certificates of Occupanev; • A budget update at which point we had 14 draw requests funded and were in the process of preparing our final construction draw; • A solar update stating that we were only missing a net meter at the community center; and • A list of post-construction activities that staff was in the process of completing including tax credit compliance, the final tax credit application, conversion of debt from a construction loan to a permanent mortgage and fulfilling our partnership commitments to allow for the pay-in of the tax credit equity. Progress since the Previous Board Meeting: Budget Update: Our fifteenth draw was fielded by the bank which will be the last request that includes any construction payments to the General Contractor. Since our budget remains in a healthy position we were able to include some of the predevelopment costs in that requisition that were previously written off and also received payment for the development fee we earned from the solar installations. There will be additional expenses that we will continue to submit to the bank including some lingering expenses and on-going interest costs before we convert to the permanent mortgage in January. Solar Update: Xcel installed the last remaining net meter we had been waiting for at the community center so now the solar project is complete. We have a pretty impressive monitoring system hooked up to the PV system at the community center that allows for real time tracking of energy production and consumption at that building that can be seen here: http://1g598.d.lighthousesolar.com To date the system has produced about 60% of the energy used in the community center which is quite impressive considering the electric washers, dryers and water heaters in the building. Also of note are two recent site visits by the community. The first was a visit by 20 or so members of the Polk Family Foundation who donated $50,000 for solar energy features at the site. The second is that Red Oak Park was able to show off its green building features as a participant in Boulder's Sustainable Homes Tour on October 2, 2011. Post-Construction Activities: The project team is currently working with our outside accountants on finalizing the cost certifications that will detail all project expenses. These will allow for the equity pay-in for both the energy tax credits we will receive as well as the LIHTC equity which will be used to pay ofl'our construction loan at conversion. Next steps: • Continue the draw process to pay interest payments on the loan as well as other outstanding expenses; • Finalize cost certifications and submit all solar data so that we can receive our energy tax credit equity during October; and • Continue the final tax credit application process that we are intending to have substantially complete by the begimiing of November. 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 -0=; -0 2D<ZNssrn a" Zn' Q O Q O Q x Z5- (D C r" m n' Q -Q Q 0 p O S Q Q X 3. 7 N 2❑ Q Q n cQ o Q Q o c s O (D 3. 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