DURHAM HOUSING AUTHORITY AGENDA AND RESOLUTION FOR REGULAR MEETING OF THE BOARD OF COMMISSIONERS. January 24, 2018

Transcription

1 DURHAM HOUSING AUTHORITY AGENDA AND RESOLUTION FOR REGULAR MEETING OF THE BOARD OF COMMISSIONERS January 24, 2018 Daniel C. Hudgins Chair Anthony Scott Chief Executive Officer

2

3 January 24, :30 p.m. O R D E R OF B U S I N E S S Board of Commissioners Daniel C. Hudgins, Chairman George K. Quick. Vice Chairman Patrice Y. Nelson Thomas M. Niemann Gloria M. Nottingham Larry Yon, II Robert Glenn I. CALL TO ORDER PAGE (S) Roll Call Establish Quorum II. III. IV. PUBLIC HEARING(S) CHANGES TO THE AGENDA APPROVAL OF MINUTES BOARD OF COMMISSIONERS Minutes of the Regular Board Meeting of December 20, 2017 V. PRESENTATION None VI. VII. CHIEF EXECUTIVE OFFICER S BUSINESS REPORTS GENERAL BUSINESS ACTION ITEMS (COMMITTEE REPORTS) Development Committee Finance Committee Operations Committee Resident Services City Council Liaison Jillian Johnson Chief Executive Officer Anthony Scott VIII. RESOLUTIONS FOR APPROVAL 1. Resolution Authorizing the Write-Off of Conventional Housing Collection Losses for the Period Beginning November 1, 2017 and Ending November 30, Resolution Authorizing the Write-Off of Affordable Housing Collection Losses for the Period Beginning November 1, 2017 and Ending November 30, Resolution Authorizing the Write-Off of Conventional Housing Collection Losses for the Period Beginning December 1, 2017 and Ending December 31, Resolution Authorizing the Write-Off of Affordable Housing Collection Losses for the Period Beginning December 1, 2017 and Ending December 31, Resolution to Consider and Approve the award of Financial Auditing Services to Novogradac & Company LLP

4 Agenda Page 2 IX. INFORMATION ITEMS X. CLOSED SESSION XI. ADJOURNMENT

5 IV. Approval of the Minutes 5

6 1 MINUTES OF THE REGULAR BOARD MEETING HOUSING AUTHORITY OF THE CITY OF DURHAM Durham Housing Authority 330 E. Main Street Durham, North Carolina December 20, 2017 AGENDA ITEM I Call to Order Present: Daniel C. Hudgins Thomas M. Niemann Robert Bo Glenn Patrice Y. Nelson Larry Yon, II Jillian Johnson, City Council Liaison Absent: George K. Quick Gloria Nottingham Staff Present: Anthony Scott, CEO Barbara Newman Sabrina Sinegal Meredith Daye Elvert Dorsey Pamela Davis Denita Johnson Lorraine Erhunmwunsee Charles Lyons Robert Scott Ashanti Brown Doris Jackson Also Present: Eric Pristell, Attorney, The Banks Law Firm The meeting was called to order by the Chair, Daniel C. Hudgins at 5:38 p.m. A quorum was present and the Regular Meeting was called into session. 6

7 2 AGENDA ITEM II GENERAL COMMENTS FROM THE PUBLIC GENERAL COMMENT FROM THE PUBLIC HEARING on proposed 2018 Annual Operations Budget) Chairman Daniel Hudgins read the following regarding the proposed 2018 Annual Operating Budget. This is a public hearing regarding the Housing Authority of the City of Durham s ( DHA ) Proposed 2018 Annual Operations Budget. DHA posted its Public Hearing Notice and placed copies of it on its website for the required number of days. Also, copies of the plan were made available for review at DHA s Central and Property Management Offices during the regular business hours. Written comments about the draft plans were requested to be sent to Barbara Newman. As a result, we were asked to make three minor changes as follows: (1) On page 6 the Chairman should have been Daniel Hudgins vs. Niemann (2) On page 6 Removed the former commissioner Barbara Lofton s name and replaced with the new commissioner Patrice Nelson. (3) On page 8 staff changed under Total Positions: 5-year trend in 2018 to 96 positions vs. 98. DHA will conduct its public hearing today and these plans are scheduled to be approved at the December 20, 2017 Board meeting. Chairman Hudgins asked if there was a motion and second to open the public hearing. Motion: Commissioner Glenn; Seconded: Commissioner Nelson Approved: Unanimously Chairman Hudgins stated that the public hearing is now open. Any person who wishes to speak in favor, against or otherwise regarding the 2018 Annual Operating Budget may now come forward to the podium. Chairman Hudgins said later on the agenda there will be a full presentation on the budget. There were no additional discussions regarding this topic. Chairman called for a motion and second to close the public hearing. Motion: Commissioner Glen; Seconded: Commissioner Yon; Approved: Unanimously 7

8 3 AGENDA ITEM III -- CHANGES TO THE AGENDA AGENDA ITEM IV BOARD ACTION Approval of the Minutes of the Board of Commissioners Regular Meeting held on November 20, 2017 Motion: Commissioner Glenn; Seconded: Commissioner Nelson; Approved: Unanimously AGENDA ITEM V -- PRESENTATIONS Recognition of Retirees -- The Chair called the following retirees to come forth to receive certificates of appreciation for respective years of service: Freddie Maye (44 years) Trannie Meekins (20 years) Dwight Midgette (8 years Cynthia Watkins (39 years) Recognition of Resident Patrol -- The Chair asked Commissioner Glenn to join him, since it was his idea, to recognize DHA s resident patrol. Charles Lyon came to the podium and said that this group is part of the watch group who handles emergency crises and welcomes residents to the neighborhoods. There were representatives from Oldham Towers, Preiss Steele and JJ Henderson communities. Robert Scott joined Mr. Lyon at the podium and asked each resident patrol members to stand. Each member stood and announced their name and community. Their names were as follows: Earl Bradley, Bruce Peterson, Margo Dupree, Maurice Quick, Ernestine Ellison, Carl Williams, Lawrence Fulton, Roosevelt Williams, James Green, Lisa Haywood, and Rafiq Zaidi. Herman Bowling, Clifford Mayes and Henry Wyer names were called; however, they were not present. Each member represented received a Citizens Award Certificate on behalf of Durham Housing Authority for the outstanding duties they each perform. Commissioner Glenn said, The reason the Authority wanted to have you here today is to celebrate your great work. You are a critical link to our reaching out to the community to build the community. The good work you do is essential. You basically are ambassadors. We are hopeful that the work you do will be expanded into other communities. He emphasized that their job is to observe and report and not put themselves in danger. AGENDA ITEM VI -- CHIEF EXECUIVE OFFICER S BUSINESS REPORTS There were no additional questions or comments regarding the CEO s Executive Summary. Mr. Scott presented a video which provided an overview of DHA major accomplishments 8

9 4 and activities in Mr. Scott received applauds from the audience. Mr. Scott thanked the staff and board for their support. He said, We are excited about Tomorrow, we should be closing on Morreene Road. Last week we closed on Damar Court and as you saw in the video we closed on others. We are excited; however, we know we have a mighty, mighty, challenge ahead of us going forward. We are jazz about 2018 but it has been a good year in terms of us making continued progress. Commissioner Glenn inquired about the meeting Mr. Scott had with Donna Biederman and asked if it was about the nursing program that they provide. Mr. Scott responded that Duke was not just involved in nursing but into a variety of things. Chairman Hudgins added that they met with a graduate student who is going to do a project on what other housing authorities have done and what s happening around the country with the whole issue of health care. Chairman Hudgins said he was able to go to the Google Fiber kick-off on Saturday and that was wonderful. He said the Google Fiber is 100 times faster than regular cable and it was free. Also, computers were provided for those who did not have one. This was the first in the state to do it and they committed to working with us. Mr. Scott added that this was part of the Connect Home program that DHA has and confirmed that all 30 households signed up. There were no additional inquiries for the CEO. VII. GENERAL BUSINESS ACTION ITEMS (COMMITTEE REPORTS) Chairman Hudgins stated that this is for the purpose of receiving and approving reports from the three (3) standing committees. The information from these committees were also included in the previously distributed board package. The reports were as follows: Development Committee Report (Chaired by Commissioner Thomas Niemann) Commissioner Niemann had no additional comments to add. He recommended approval of the November 9, 2017 minutes. Motion: Commissioner Niemann; Seconded: Commissioner Glenn; Approved: Unanimously 9

10 5 Commissioner Niemann recommended acceptance of the draft December 7, 2017 minutes which would be submitted for approval at the January meeting. Finance Committee Report (Chaired by Commissioner George Quick was not present) Commissioner Hudgins recommended approval of the November 15, 2017 minutes. Motion: Commissioner Glenn; Seconded: Commissioner Yon; Approved: Unanimously Operations Committee Report (Chaired by Commissioner Bo Glenn) Commissioner Glenn made brief comments regarding the resident patrols and how resident safety is always on our minds. Also, he inquired about the police substation and the Smoke Free Policy. The Smoke Free Policy is one of HUD s new rule that all public housing authorities (PHAs) be smoke free and the communities. Staff is looking at Duke and the county to assist in making it work in the communities. The minutes from the November 16, 2017 meeting were submitted for acceptance. A motion was made to accept the minutes. Motion: Commissioner Glenn; Seconded: Commissioner Niemann; Approved: Unanimously AGENDA ITEM VIII -- RESOLUTIONS FOR APPROVAL The Chair, Daniel Hudgins, introduced the following seven (7)) resolutions: RESOLUTION NO RESOLUTION AUTHORIZING THE WRITE-OFF OF CONVENTIONAL HOUSING COLLECTION LOSSES FOR THE PERIOD BEGINNING OCTOBER 1, 2017 AND ENDING OCTOBER 31, 2017 WHEREAS, the Housing Authority of the City of Durham has determined that it has exerted all efforts to collect monies owed from former residents; and 10

11 6 WHEREAS, the property management staff has notified each former resident of the amount owed; and WHEREAS, the regulations of the U.S. Department of Housing and Urban Development require a housing authority to write off any and all monies owed that cannot be collected. NOW, THEREFORE, BE IT RESOLVED that the Board of Commissioners of the Housing Authority of the City of Durham approves the write-off of rents, utilities, repair charges, court costs and late fees owed as per the listing of delinquent accounts shown in the amount of $3, for the period beginning October 1, 2017 and Ending October 31, This resolution shall take effect immediately. Motion: Commissioner Nelson; Seconded: Commissioner Glenn; Approved: Unanimously RESOLUTION NO RESOLUTION AUTHORIZING THE WRITE-OFF OF AFFORDABLE HOUSING COLLECTION LOSSES FOR THE PERIOD BEGINNINBG OCTOBER 1, 2017 AND ENDING OCTOBER 31, 2017 WHEREAS, the Housing Authority of the City of Durham has determined that it has exerted all efforts to collect monies owed from former residents; and WHEREAS, the property management staff has notified each former resident of the amount owed; and WHEREAS, the housing authority is required to write off any and all monies owed that cannot be collected. NOW, THEREFORE, BE IT RESOLVED that the Board of Commissioners of the Housing Authority of the City of Durham approves the write-off of rents, utilities, repair charges, court costs and late fees owed as per the listing of delinquent accounts shown in the amount of $ combined total for the period beginning October 1, 2017 and Ending October 31, This resolution shall take effect immediately. Motion: Commissioner Niemann; Seconded: Commissioner Yon; Approved: Unanimously 11

12 7 RESOLUTION NO Discussion: Commissioner Bo Glenn asked how the program worked. Ms. Denita Johnson, Director of the HCV Program responded that This is Memorandum of Understanding with the Department of Social Services ( DSS ). We are uniting families in which housing is the only barrier for kids aging out of foster care. DSS provides the referrals to us. DHA has made a total of fifteen (15) available, eleven (11) has actually been utilized and most of them keep the voucher. This involves the child only not the parent. She said the child takes the voucher and find a home that they lease up themselves. Commissioner Hudgins clarified that DHA provides the housing side and DSS provides the services. Also, he said DSS work under contract to assist the youth in learning life skills, literacy skills, how to open a bank account and prepare for employment. The kinds of things that many kids grow up knowing but kids in foster care do not have the opportunity to learn these things. Commissioner Hudgins also clarified that this resolution involves two components. One is minor children who are taken by the courts and placed in the custody of the department. The barrier to get those children back home is to have a place to live. Denita Johnson confirmed that this was correct. Commissioner Hudgins said the other component is the kids aging out of foster care. Ms. Johnson confirmed that this was correct and that they both are under the same program. This is a component that DHA is doing with DSS and a private agency to help with the transition. There being no additional discussion, Chairman Hudgins introduced the following resolution: RESOLUTION TO CONSIDER AND APPROVE RENEWAL OF THE FAMILY UNIFICATION PROGRAM MEMORANDUM OF UNDERSTANDING FOR FY 2018 WHEREAS, The Housing Authority of the City of Durham, herein called the Durham Housing Authority, and the Durham County Department of Social Services have agreed to make application to the U.S. Department of Housing and Urban Development, herein called HUD, under the Family Unification Program ( FUP ); and 12

13 8 WHEREAS, the purpose of the FUP is to a) provide Housing Choice Voucher ( HCV ) rental assistance to youth between the ages of 18 thru 21 years old, who left foster care at age 16 or older to find affordable and decent housing, and b) promote family unification by providing vouchers to families for whom the lack of adequate housing is a primary factor in the imminent placement of the family s child or children in out-of-home care, or in a delay of discharge of a child or children to the family from out-of-home care ; and WHEREAS, the Durham Housing Authority will make up to 15 housing choice vouchers available (when vouchers are available) to continue housing FUP families until a notice of funding availability is announced; and WHEREAS, Durham County Department of Social Services has agreed to establish and implement a system to identify eligible families and youth who meet the criterion for the program, and refer those individuals to the Durham Housing Authority; and WHEREAS, the Durham Housing Authority will ensure the agency s Administrative Plan is updated in accordance with applicable regulations and requirements when necessary, and will administer and manage the FUP waiting list to ensure that families and individuals meeting the criterion for the FUP receive priority, in accordance with policies set forth in its Administrative Plan; and WHEREAS, the Durham Housing Authority will manage all housing related issues, including eligibility for housing assistance, housing inspections, determination of rent reasonableness, and disbursement of housing assistance payments to participating landlords; and WHEREAS, the Durham Housing Authority has executed a Memorandum of Understanding, which is attached; and WHEREAS, the Durham Housing Authority and the Durham County Department of Social Services recognize that the FUP will provide rental assistance for a maximum of 15 families/individuals when vouchers are available and will work together to complete the grant application process and needs assessment when a notice of funding eligibility is announced for FUP targeted funding. NOW, THEREFORE, BE IT RESOLVED by the Board of Commissioners of The Housing Authority of the City of Durham, as follows: 1. That the Memorandum of Understanding for the 2018 fiscal year, as outlined in the attached document, is in all respects approved; and 2. This resolution shall take effect on January 1, Motion: Commissioner Niemann; Seconded: Commissioner Glenn; Approved: Unanimously 13

14 9 RESOLUTION NO Discussion: CEO, Anthony Scott, provided an update regarding this resolution. He said We ve had discussions on this at prior meetings. This is a 20 year lease years being the first phase, a 5 year renewal at their option and then a 5 year renewal at DHA s option. This is technically a 15 year lease and we have an option to extend it another 5. We will be receiving a $10,000 annually payment for the lease of that space which is what we have been receiving from the Durham Bulls for the last 5-6 years. They are building this field for disabled children. There will be a track on the outside which will be available to our residents. They are ready to proceed with the exception of the underground pipe that the City has to repair. Mr. Scott added that DHA will have to go through the HUD SAC approval process. There being no additional discussion, Chairman Hudgins introduced the following resolution: HOUSING AUTHORITY OF THE CITY OF D U R H A M RESOLUTION APPROVING GROUND LEASE BETWEEN THE HOUSING AUTHORITY OF THE CITY OF DURHAM AND THE MIRACLE LEAGUE OF THE TRIANGLE, INC. WHEREAS, The Miracle League of the Triangle, Inc. is a North Carolina nonprofit corporation founded in 2005 whose mission is to create, through baseball, positive life experiences for both children and adults with special needs and their families ( Miracle League ); WHEREAS, Miracle League is currently meeting its mission by serving nearly 400 players with special needs each season on 30 teams that play at specialized baseball facilities located in Cary (Andy s Foundation Field at Adams Elementary School) and Raleigh (Fred Smith Company Field near the Living Arts College); WHEREAS, Miracle League, in collaboration with Capitol Broadcasting Company, Incorporated ( Capitol Broadcasting ), is interested in exploring a partnership with the Housing Authority of the City of Durham ( DHA ) to construct a Miracle League baseball facility on property currently owned by an affiliate of Capitol Broadcasting and DHA (the Miracle League Partnership ); 14

15 10 WHEREAS, the subject DHA property is located adjacent to the JJ Henderson public housing development at 473 Morehead Avenue, consists of roughly 1.5 acres of vacant land, and was recently being leased by DHA to the Durham Bulls as additional game-day parking (the DHA Property ); WHEREAS, the subject Capitol Broadcasting property boarders the DHA Property, is located at 461 Morehead Avenue and consists of roughly.25 acres of vacant land (the Capitol Broadcasting Property ); WHEREAS, the proposed baseball facility would be located at the corner of Morehead Avenue and Blackwell Streets on the DHA Property and the Capitol Broadcasting Property; and WHEREAS, in support of the Miracle League Partnership, DHA wishes to ground lease the DHA Property to Miracle League as described in that certain ground lease attached hereto as Exhibit A (the Ground Lease ). NOW, THEREFORE, BE IT RESOLVED by the Housing Authority of the City of Durham as follows: 1. The Ground Lease is hereby approved in its entirety, with such additional changes to be made by the Chief Executive Officer (or his designee), in his discretion, as may be necessary to reflect the final terms of the Ground Lease. The Chief Executive Officer shall report back to the Board of Commissioners on the final negotiated terms of the Ground Lease. 2. That the Chief Executive Officer (or his designee) is hereby authorized to execute the Ground Lease and any additional documents in connection with the Ground Lease that are consistent with this resolution. Effective this the 20 th day of December, Motion: Commissioner Glenn; Seconded: Commissioner Yon; Approved: Unanimously RESOLUTION NO Discussion: Meredith Daye, Director of Development, provided a summary regarding this resolution. She said, For the annual utility allowance, this is the allowance we give to our residents that use the utilities in the unit. It only includes our conventional public housing units and developments that are not individually metered or are not converted to resident paid utilities or are exempted because they are senior or elderly sites. Staff 15

16 11 reviews their approach and look at the prior usage over the past three (3) years. They take an average, throw out any abnormalities, look at the average user, and set that based on the kilowatts rate received from the utility provider. Lastly, they convert the results to an annual or quarterly amount. There being no additional discussion, Chairman Hudgins introduced the following resolution: RESOLUTION APPROVING THE PROPOSED UTILITY ALLOWANCES FOR THE CONVENTIONAL PUBLIC HOUSING PROGRAM WHEREAS, the Housing Authority of the City of Durham reviewed its utility allowances to ensure that they are at the proper levels considering the utility usage by the affected conventional public housing residents; and WHEREAS, in accordance with the U. S. Department of Housing and Urban Development regulations, the affected conventional public housing residents received written notice of the proposed utility allowances and had a sixty-day review period for written comments, prior to any approved changes; and WHEREAS, the Housing Authority of the City of Durham did not receive any written comments regarding the proposed utility allowances. NOW, THEREFORE, BE IT RESOLVED by the Board of Commissioners of the Housing Authority of the City of Durham, as follows: 1. That the proposed utility allowances be approved. 2. That the approved utility allowances become effective January 1, Motion: Commissioner Glenn; Seconded: Commissioner Yon; Approved: Unanimously RESOLUTION NO Discussion: Meredith Daye, Director of Development, provided brief comments regarding this resolution. She said, She believed we had a resolution back in around approving the Mechanics and Farmers line of credit to DVI and the RAD conversion. Mechanics and Farmers asked for an updated resolution. Last year an appraisal was done. It appraised for over $2 Million the line is up to $750,

17 12 Anthony Scott requested that Ms. Daye explain the reason why this line of credit is being put in place. Ms. Daye said, This line of credit with the RAD development deals and other development deals that DVI planned to pursue, we wanted to capitalize DVI so we could cover predevelopment expenses and other expenses involved with those development deals. Staff has not had to draw on the line of credit yet. She confirmed that the line of credit would only be used for predevelopment expenses, not operating expenses and that this has been HUD approved. Operating expenses are brought back into the Central Office Cost Center. An inquiry was made regarding the line of credit. Ms. Meredith responded affirmatively. She said they were looking at the predevelopment items that were on the Yadkin Bank (think they ve switched names now), line of credit and the funds that we will receive at closing will pay back those items and expenses that were billed to the Yadkin Bank line of credit. They plan to pay off the line of credit but we are paying now to maintain it. The plan is now that the M&F line of credit is in existence, it will be used and transition to close out the Yakin Bank line of credit. This will take some time until the closing is settled and some of the operating expenses are paid. Commissioner Niemann recommended that both committees look at the existing line and the new line and determine what the outlook is as to paying one off and going forward. Legal Counsel, Eric Pristell, added that on the M&F Line of Credit, the borrower is Edgemont Elms Housing, Inc. (EEHI). (Note: The borrower is Development Ventures Incorporated and Edgemont Elms development was used to collaterize the line, as indicated in the next sentence.) They pledged the property for the loan. The housing authority, the limited guarantor, pledged non-public housing assets. There being no additional discussion, Chairman Hudgins introduced the following resolution: 17

18 13 HOUSING AUTHORITY OF THE CITY OF DURHAM RESOLUTION AUTHORIZING MECHANICS AND FARMERS BANK LINE OF CREDIT CONVERSION OF EDGEMONT ELMS PHA UNITS TO RAD UNITS WHEREAS, Development Ventures Incorporated ( DVI ) is a North Carolina non-profit corporation and an instrumentality of the Housing Authority of the City of Durham ( DHA ); WHEREAS, DVI s mission is to provide affordable housing to low and moderate income persons in Durham County, North Carolina; WHEREAS, DVI is fulfilling its mission by engaging in various real estate development activities including but not limited to the acquisition, improvement and renovation of real property; WHEREAS, DVI desires to secure private financing to further its mission; WHEREAS, in order to assist DVI in furthering its mission, Mechanics and Farmers Bank has agreed to loan DVI, through a secured revolving line of credit, an amount of up to the lesser of $750,000 or 80% of the appraised market value Edgemont Elms Apartments, located at 301 South Elms Street, Durham, North Carolina, consisting of fiftyseven (57) total units, forty-one (41) of which are market rate units and sixteen (16) of which are public housing units; WHEREAS, the loan is proposed to be secured by Edgemont Elms Apartments and other pledged collateral; WHREAS, Edgemont Elms Apartments is owned by Edgemont Elms Housing, Inc., a North Carolina non-profit corporation and instrumentality of DHA; WHEREAS, DHA is proposed to be the limited guarantor of the loan; WHEREAS, the terms of the proposed Mechanics and Farmers Bank loan are specifically described in Exhibit A, attached hereto and incorporated into this resolution by reference (the Mechanics and Farmers Loan ); and WHEREAS, in connection with the closing of the Mechanics and Farmer s Loan, the sixteen (16) public housing units of the Project ( PHA Units ) will be converted from public housing to project-based Section 8 pursuant to the Rental Assistance Demonstration ( RAD ) Program. 18

19 14 NOW THEREFORE, BE IT RESOLVED BY DHA, THROUGH ITS BOARD OF COMMISSIONERS, AS FOLLOWS: 1. That the Mechanics and Farmers Loan is hereby approved and authorized. 2. The conversion of the PHA Units to the RAD Program is hereby approved and authorized. 3. That DHA is hereby authorized to be the limited guarantor of the Mechanics and Farmers Loan subject to the following restrictions: Mechanics and Farmers Bank shall not have any legal right of recourse against any: (a) Public housing project of DHA; (b) Operating receipts of DHA (as such term is defined in DHA s Consolidated Annual Contributions Contract [the DHA ACC ] with HUD); (c) Public housing operating reserve of DHA reflected in DHA s annual operating budget and required under the DHA ACC; (d) DHA projects converted from public housing to Section 8 rental assisted projects under the HUD Rental Assistance Demonstration ( RAD ) program; (e) Section 8 subsidies payable from HUD to DHA for a RAD project; or (f) Public housing operating reserves that are or will be transferred to RAD projects as reserves for such RAD projects. With respect to (a) through (c) above, DHA s obligations hereunder shall be subject to the DHA ACC, and DHA shall have no obligation to take any action hereunder violating the DHA ACC or causing any of DHA s public housing assets or projects to become encumbered. 4. That the Chairman and Chief Executive Officer (including his designees, if any) are hereby authorized, empowered and directed to do any and all other acts, and to execute, approve and deliver any and all documents, not inconsistent with this resolution which they, in their discretion, deem necessary or appropriate in order to consummate the transaction contemplated by this resolution, including, without limitation, the full execution of all documents (including but not limited to a promissory note, deed of trust, assignment of leases, assignment of developer fees, guaranty and all RAD and RAD related documents) to close the Mechanics and Farmers Loan and to convert the PHA Units to the RAD Program. 5. That all motions, orders, resolutions and parts thereof in conflict with this resolution are hereby repealed and all other acts of the Chairman and Chief Executive Officer (including his designees, if any) that are in conformity with the purposes and intent of this resolution are hereby ratified, confirmed and approved. This resolution shall be effective as of the 12 th day of December, Motion: Commissioner Glenn; Seconded: Commissioner Yon; Approved: Unanimously 19

20 15 RESOLUTION NO Discussion: Barbara Newman provided a brief video on the 2018 Annual Operating Budget. The audience provided applaud at the end of the video. Ms. Newman briefly reviewed the budget which had been previously distributed. The main changes in 2018 are -- (1) properties are now RAD; (2) one new position in the COCC; and (3) DVI administrative expenses are now in the COCC. There was an inquiry made regarding the activities in Congress regarding the bonds. Mr. Scott said the private activity bonds will remain although we are not 100% sure what that means. Also, because the tax rates have changed, we are not certain what kind of impact it is going to have on the private activity bonds to begin with the private activity markets to begin with. There being no additional discussion, Chairman Hudgins introduced the following resolution: RESOLUTION APPROVING THE 2018 ANNUAL OPERATING BUDGET WHEREAS, the Chief Executive Officer has submitted a comprehensive Operating Budget for the Housing Authority of the City of Durham for the year beginning January 1, 2018 and ending December 31, 2018; and WHEREAS, the proposed annual budget reflects operating revenues and operating expenses as presented in the Operating Budget document for the year ending December 31, 2018; and WHEREAS, the proposed revenues are estimated to be available during the fiscal year to fund the proposed expenditures. NOW, THEREFORE, BE IT RESOLVED that the Board of Commissioners finds as follows: 20

21 16 1. That the budgets as presented in the Operating Budget document are approved for the fiscal year ending December 31, 2018; 2. That the Chief Executive Officer or his designee may authorize the transfer of line item appropriations between activities, objects and line items within each fund budget; 3. That the Board of Commissioners may authorize the transfer of funds between the individual funds; 4. That any change in the budgeted expenditures or revenues which serves to change the overall budget amount in any specific fund budget may be made only by the Board of Commissioners; 5. That any operating funds encumbered as of December 31, 2017, or otherwise designated, are hereby re-appropriated for the fiscal year ending December 31, 2018; 6. That the Chairman is authorized to execute Form HUD (PHA Board Resolution Approving Operating Budget); 7. That this resolution shall take effect January 2, Motion: Commissioner Nelson; Seconded: Commissioner Niemann; Approved: Unanimously AGENDA ITEM IX INFORMATION ITEMS There were none. AGENDA ITEM X CLOSED SESSION There was none. AGENDA ITEM XI -- ADJOURNMENT The meeting was adjourned at 6:40 p.m. Motion: Commissioner Yon; Seconded: Commissioner Glenn; Approved: Unanimously (SEAL) Chair 21

22 17 Secretary 22

23 VI. CEO s Business Reports (Will be distributed prior to or during the Board Meeting) 23

24 VII. General Business Action Items 24

25 Development Committee 25

26 Durham Housing Authority Durham, NC MINUTES OF THE DEVELOPMENT COMMITTEE December 7, 2017 Attendees: Tom Niemann, Chair via Telephone Anthony Scott, CEO Dan Hudgins, Commissioner (Chaired Meeting) Bo Glenn, Commissioner Eric Pristell, The Banks Law Firm Meredith J. Daye, Director of Development Brenda Tillman, Program Specialist Elvert Dorsey, Director of Resident Services Pamela Davis, Senior Property Manager Barbara Newman, Chief Financial Officer The meeting was called to order by Dan Hudgins at 12:10 p.m. Public Comments: None Approval of September Committee Meeting Minutes Minutes for the November meeting were approved. Goley Pointe Self-Help Construction Loan Modification/NCHFA Loan Closing The NCHFA loan closed on November 30, Staff is working with HUD to close out liquidated damages and draw down remaining development funds as liquidated damages. These funds must be used for affordable housing activities such as pre-development expenses. Rental Assistance Demonstration Morreene Road Closing Update Targeted Closing December 21, 2017 The targeted date for both the RAD and FHA closing is December 21, Per Ms. Daye, comments were received from the RAD Closing Coordinator and responses will be provided today. Additionally, the escrow bond closing was approved by HUD. Damar Court Closing Update Targeted Closing Date December 14, 2017 Staff made a few minor adjustments to the sources and uses per comments received from the Closing Coordinator. The FHA package is on target to be signed off on today by HUD. The mobilization date for the contractor has not been determined, per Ms. Daye. Mr. Pristell stated that if an escrow closing is utilized, the contractor will not be able to start until FHA has closed. Damar Court closing is scheduled for December 14, HOPE VI Sites: Morning Glory, Calvert Place, Main Street Townhomes, & Holman Homes & RAD Conversion Status 26

27 The HOPE VI sites closed on November 14, TCB Staff is uploading post-closing documents. The HAP for the development began on December 1, The HOPE VI sites were converted via the Project Based Rental Assistance (PBRA) and DHA will not be administering the vouchers. There was a brief discussion regarding the difference between Project Based Vouchers (PBV) and PBRA by Mr. Scott. Edgemont Elms RAD Conversion Status Edgemont Elms is scheduled to close on December 8, After conversion, Edgemont Elms will be a PBRA development. Per Ms. Daye, the agency plans are to convert the remaining sites to PBV. Mr. Glenn inquired as to how this would affect the budget; and Ms. Newman stated that the agency will only receive management fees. There was also a brief discussion regarding how the Capital Fund Program is affected by the conversion as well. Additionally, there was a discussion regarding the effect on the agency if all sites were converted via PBRA and the impact on supportive services provided by Resident Services. The Family Self Sufficiency and Resident Opportunities and Self Sufficiency Programs would end but current participants will be able to complete the program. Plans for Laurel Oaks Ms. Daye stated that the agency plans are to move forward with converting Laurel Oaks, and advertising for an architect is on the horizon. Mr. Glenn encouraged utilizing local contractors. Mr. Scott stated that the architect would be selected via the Request for Qualifications process, and Ms. Daye added that local contractors will be encouraged to submit proposals but HUD Procurement requirements concerning competitiveness, guides the process for selection of the contractor as well as the evaluation criteria HOPE VI Few Gardens (close out) Re-solicitation for Additional Builder(s) Per Ms. Daye, solicitation for additional builders is being re-advertised. The closing date is January 9 th, Additionally, Mr. Scott stated that he recently had a conference call with Habitat for Humanity regarding getting required information prepared for submission to HUD. Other Mechanics & Farmers Line of Credit Status The Mechanics & Farmers line of credit closed will close with the RAD conversion of Edgemont Elms which is planned for December 8, Fayette Place Per Mr. Scott, development meetings for the site will be held in January, February, and March. Mr. Niemann inquired about the DHA working with Self-Help and utilizing new market tax credits on the project. Adjourn There being no further business, the meeting was adjourned at approximately 12:45 p.m. The date for the next committee meeting is scheduled for Thursday, January 11, 2018 at 12:00 p.m. Respectfully submitted, Meredith J. Daye 27

28 Durham Housing Authority Durham, NC MINUTES OF THE DEVELOPMENT COMMITTEE January 11, 2018 Attendees: Tom Niemann, Chair Dan Hudgins, Commissioner Bo Glenn, Commissioner Gloria Nottingham, Commissioner Eric Pristell, The Banks Law Firm Meredith J. Daye, Director of Development Brenda Tillman, Program Specialist Elvert Dorsey, Director of Resident Services Barbara Newman, Chief Financial Officer The meeting was called to order by Tom Niemann at 12:05 p.m. Public Comments: None Approval of September Committee Meeting Minutes Minutes for the December meeting were approved. Rental Assistance Demonstration Morreene Road Developer Fee Pay-In Schedule Ms. Daye provided a handout of the developer fee pay-in schedule for Morreene Road and Damar Court. Under the Morreene Road transaction, the total development fee is $1,166,922 with $100,860 deferred to net cash flow. DVI received $100,000 at closing. There isn t another equity payment made until 2019, at substantial completion. There was a discussion regarding the impact this could have for budgeting, reimbursable expenses, as well as restructuring the Resource Sharing agreement for Mr. Niemann questioned how the agency would cover the cash needed for expenses that DVI had to cover in 2018 according to the Resource Sharing agreement. Mr. Pristell raised a question regarding pre-development expenses incurred but not reimbursed at closing. Ms. Newman stated that this will be discussed at the next Finance Committee meeting. Mr. Hudgins inquired as to whether or not this would be reflected in the audit as a finding and that he did not want any surprises. Additionally, there was a brief discussion regarding the construction manager. The Director of Development stated that Cummings is the agency s construction manager and that they will be providing oversight on both projects. On the Morreene Road project, the projected start date is January 29 and KMW is the general contractor for the project, with Ed Heeney serving as the site superintendent. Mr. Niemann stated that he would like for the construction manager to attend the next Development Committee meeting. Mr. Niemann also stated that he would like updates as the project s progress. 28

29 Damar Court Developer Fee Pay In Schedule The total development fee for Damar Court is $1,217,944 with $336,321 deferred to net cash flow. At closing, DVI received $50,000 and will not receive another developer fee installment until The general contractor is CT Wilson and is scheduled to start January 17, 2018, per the Notice to Proceed. Justin Ramsey is the project manager, and I am unsure of the site superintendent assignment at this time (but can follow up). Per Ms. Daye, the Notice to Proceed has been issued. Mr. Glenn requested a summary of lessons learned from the Morreene Road and Damar Court RAD transactions and how we apply these lessons to other development projects. Additionally, he would like to know how much money was lost because of the lessons learned and what potential contingencies or problems currently exists in the deal, and if any exists, what can be done to address them. Mr. Glenn also inquired if the agency had burned bridges with HUD or RAD regulators that the Board should know. Meredith Daye stated that the experiences with both HUD and RAD officials had been very good and responses were very positive. Mr. Niemann also recommended that staff go on-site with the construction manager as a way to track and learn what is going on at the site. Ms. Daye shared that it is her intention to spend time with the construction manager onsite, as well as unscheduled trips to the site to assess activities during construction, so we are not solely relying on reports from the construction manager. Mr. Niemann commented that this would help establish in-house expertise, and Ms. Daye responded that her background was in construction management and appreciates his suggest and it is received. Oldham Towers & Liberty Street The Planning Advisory Partners Committee meeting was held on January 3, 2018, and the meeting scheduled for January 4 th was cancelled due to inclement weather. A kick off meeting is scheduled for January 24 th. The planning for Fayette Place will also be included in these meetings. Mr. Hudgins requested a list of partners involved with the project and stated that he has received questions regarding the project and was unaware of meetings around the downtown planning efforts. Mr. Glenn stated that the agency s mission is to develop affordable housing for low-income families and that the agency should monitor funds that are being spent for consultants while going through the development process, as well as not spend a lot of time and effort around these comprehensive plans because it is something that he has seen done over the years without anything resulting from all the time invested. Mr. Pristell stated that since the City has provided financial resources to DHA, the agency is required to participate in the planning of the downtown project development. There was a brief discussion regarding the impact on residents. Mr. Glenn expressed concern regarding meeting the Affirmatively Furthering Fair Housing requirements and to consider this when planning redevelopments for the sites. Ms. Daye stated that EJP Consulting is working on the project with the City through the OSF grant. There was some discussion regarding the need to rescind the current CHAP received for the development since the plan outlined to RAD that would DHA submit a LIHTC application in 2018, which will not happen. DHA will reapply for a new CHAP. In conjunction with the new CHAP, Ms. Daye also discussed the plan to transfer assistance of approximately 20 to 30 units from Oldham/Liberty to the planned LIHTC development at Jackson/Pettigrew Streets TOD project that s planned for a preliminary 9% LIHTC submission by DHIC/Self-Help joint venture next week. 29

30 Mr. Hudgins inquired about the status of Club Boulevard, and the Director of Development stated that the CHAP was rescinded and there currently are no plans for the development. Plans for Laurel Oaks The agency is currently soliciting for architectural/engineering services. Plans are to do minor renovations and convert under RAD in July HOPE VI Few Gardens (close out) Re-solicitation for Additional Builder(s) One additional proposal was received and is under review. This is an open solicitation and EJP is currently working with Habitat to submit required information for amending the Revitalization Plan for submission to HUD for approval. Mr. Hudgins had several questions and requested a status update before 6 p.m. on the project due to an event he was attending sponsored by Habitat. Ms. Daye stated that she would follow up with EJP and provide an update prior to his meeting. Other DHA Bond Issuance Policies Mr. Pristell distributed copies of the agency s current Bond Issuance Policy and provided a brief overview. There were discussions around the process, approvals by outside agencies for bond issuance (i.e. City of Durham, Local Government Commission, etc.), and updating the policy (last updated 2005). The commissioners in attendance suggested another presentation be done at the Board meeting and follow up with a draft of suggested changes to the policy. Mr. Pristell also commented that funds received from the issuance of bonds are non-federal and unrestrictive revenue. Adjourn There being no further business, the meeting was adjourned at approximately 1:30 p.m. The date for the next committee meeting is scheduled for Thursday, February 8, 2018 at 12:00 p.m. Respectfully submitted, Meredith J. Daye 30

31 Damar Court and Morreene Road Developer Fee Pay-In Schedules Damar Court (gross) developer fee - $1,217,944 Note - $336,321 is deferred to net cash flow. Morreene Road (gross) developer fee - $1,166,922 Note - $100,860 is deferred to net cash flow. 31

32 Finance Committee 32

33 DURHAM HOUSING AUTHORITY SPECIAL REVIEW REPORT 31 DECEMBER

34 330 E. Main Street P.O. Box 1726 Durham, NC (919) FAX: (919) TDD/TTY: (800) ext. 774 durhamhousingauthority.org A Commitment to Quality Living AGENDA FINANCE COMMITTEE MEETING Wednesday, January 17, 2018 Boardroom DHA Main Office 330 East Main Street Durham, NC 3:00 pm 1. Call to Order 2. December 2017 Meeting Minutes 3. December 2017 Special Report 4. Other Items Preliminary Review: Morreene Road and Damar Court Closings Year End Closing Schedule Auditing Firm RFP 34

35 330 E. Main Street P.O. Box 1726 Durham, NC (919) FAX: (919) TDD/TTY: (800) ext. 774 durhamhousingauthority.org A Commitment to Quality Living MINUTES FINANCE COMMITTEE MEETING Wednesday, December 13, 2017 Boardroom DHA Main Office 330 East Main Street Durham, NC 3:00 pm Attendees: George Quick, Chair of Finance Committee, Board Member Anthony Scott, Chief Executive Officer Barbara Newman, Chief Financial Officer Denita Johnson, Director of HCVP Robert Glenn, Board Member Dan Hudgins, Board Chairman David Boyd, Finance Director City of Durham Pam Davis, Senior Property Manager Eric Pristell, Attorney 1. The meeting was called to order by George Quick at 3:15 pm 2. November meeting minutes The minutes from the November meeting were approved 3. Review of Financial Reports Barbara Newman reviewed the November 2017 Financial reports, highlighting variances between budgeted and actual revenues and expenses. Operating Subsidy - In reviewing the operating subsidy funding, Ms. Nelson asked if the budget of 87.5% for operating subsidy meant that each month s budget was at that percentage. Ms. Newman explained the budget for operating subsidy was estimated based on actual eligibility for 2016 with a pro-ration of 87.5%. The total amount for each project is then divided by 12 to get a monthly expected revenue. Maintenance materials Mr. Glenn asked for a more in-depth explanation of why the high variance in maintenance materials was attributed to the incorrect allocation of materials between AMPS in a specific team. Ms. Newman explained that property management is divided into teams who are responsible for more than one AMP. Shared expenses are allocated across AMPs however, in reviewing financial reports, it was discovered that in some instances, shared 35

36 expenses were not allocated between AMPs within a team. The expenses were erroneously charged to only one AMP within the group. Property management has been informed about this and steps will be taken to review invoices prior to posting to the general ledger. Protective Services Mr. Scott asked Ms. Newman to include more clarifying language to the Protective Services contract. The expense line item showed a variance of over 90% because the budgeted amount will be utilized for the installation of security cameras. This will probably take place in Technical Services Mr. Glenn asked if there were any plans to add more staff to do centralized services. Mr. Scott explained, using an example of the Charlotte Housing Authority centralized services may or may not be the best way to handle maintenance at the public housing communities because in some cases, the costs of using contractors will be much lower than hiring specialized crews for work. The agency will continue to review contract costs and analyze the feasibility of adding more staff to the Technical Services crew. HCVP Funding Ms. Newman explained that the amount obligated for HCVP HAP funding in November was higher than the calculated need, which means that the remaining funds will be held in reserves by HUD. 4. FY 2018 Preliminary Budget Questions/Updates Ms. Newman updated attendees on a few changes that had already been made to the draft of the 2018 preliminary budget. The Chairman of the Board was incorrectly noted as Mr. Quick this has been updated. Mr. Hudgins also noted that DHA has been assigned a new liaison by the City Ms. Jillian Johnson. Mr. Scott acknowledged this and noted that an introductory meeting had already taken place between Ms. Johnson and the Executive team. Ms. Newman gave a brief summary about the main changes in the 2018 budget which included the addition of 1 new position in the Central Office Cost Center (COCC) Deputy Operations Officer, the move of DVI Administrative costs to the correct COCC department Development and the conversion of Edgemont Elms, Damar Court and Morreene Road from Public Housing to Rental Assistance Demonstration (RAD) 5. Other Items Mr. Boyd asked if the recent news about private-activity bonds will affect DHA s future RAD deals and the agency s ability to issues bonds. Mr. Pristell answered in the affirmative but also noted that no final decision has been made in Washington yet. Mr. Pristell informed the attendee s that the M&F line of credit was closed today December 13 in addition to the RAD deal for Damar Court. Mr. Quick, seconded by Mr. Glenn asked if the items charged to the Yadkin (now FNB) line of credit will be paid off since the RAD deal had closed. Ms. Newman responded that the pre-development costs that were underwritten in the deal will be reimbursed or applied as a credit at closing. This will allow DVI to pay off the line of credit. Mr. Glenn asked about FASS scoring and if there was a schedule or if there was anything DHA could do at year end to improve scores. Ms. Newman explained that the FASS scores are a part 36

37 of the total PHAS scoring system which looks at not only financials but also property management. Also, once a Contract to enter into a Housing Assistance Payment (CHAP) is received for a project that project is designated as RAD on the yearly Financial Data Schedule (FDS) and no FASS scores are calculated. Mr. Quick asked about the search of Auditors Ms. Newman explained that the published request for proposals was closed and about 4 proposals were received. The next step will be to evaluate the proposals and recommend the most qualified firm to be awarded the contract. The next meeting will be held on January 17 at 3:00 pm. The meeting was adjourned at 4:15 pm. 37

38 Special Review Report Dec 2017 Executive Summary The management of the Durham Housing Authority(DHA) presents this special review report for year-ending December This report summarizes funding for our main programs and compares those amounts to budgeted revenues for the year. Due to the year-end closing process and on-going preparations to close out the current year, there is no final data for expenses and balance sheet accounts. For the past several years, funding from the U.S. Department of Housing and Urban Development (HUD), has continued to decrease. In addition, although funding for major DHA programs have been awarded, a proration of less than 100% has been received for operations. With this information in mind, our budgets have been produced using conservative assumptions. In 2017, DHA estimated a total of $27,830,041 in funding for Low Income Public Housing (LIPH) and the Housing Choice Voucher Program (HCVP). In addition, Capital Funds were budgeted at $2,197,160. For all sources except HCVP Administrative fees, actual awarded funds were higher than expected. DHA received 3% less than expected for HCVP Administration fees. The chart and diagram below, shows a summary of actual versus budgeted awards, followed by a detail for each program area. Program Funding Budgeted Actual $ Variance % Variance LIPH Operating Subsidy 7,399, ,292, , % LIPH Capital Fund Program 2,197, ,660, , % HCVP Housing Assistance Payments 18,658, ,508, , % HCVP Administrative Fees 1,771, ,719, (52,316.00) -3% TOTAL 30,027, ,179, ,152, % 38

39 Special Review Report Dec 2017 Low Income Public Housing DHA budgeted 2017 Operating Subsidy at 87.5% of 2016 eligibility. In January and February 2017, HUD used a proration of 85% of the 2016 eligibility to fund all projects. The preliminary eligibility for 2017 was not published until March 15, Until the 2017 final eligibility was determined in September 2017, DHA continued to receive operating subsidy at different proration levels. In October 2017, to the extent that previous amounts received were less or greater than the final eligibility, HUD awarded subsidies with an adjustment to true-up cumulative totals. The final proration for Operating Subsidy in 2017 was 93.10%. The total amount received was about $892,448 more than budgeted, which is a positive variance of about 12%. DHA also received supplemental funding of $ for 2016 in THE HOUSING AUTHORITY OF THE CITY OF DURHAM LOW INCOME PUBLIC HOUSING FY2017 OPERATING SUBSIDY 2017 Annual Total 2016 Budget Eligibility Funding Supplemental 87.5% 100% 93.1% McDougald T $ 1,716,264 $ 2,056,253 $ 1,914,333 $ 2,657 Scattered Sites $ 135,727 $ 156,522 $ 145,719 $ 210 Oldham Towers $ 273,859 $ 339,674 $ 316,230 $ 423 Cornwallis Rd $ 1,020,297 $ 1,224,399 $ 1,139,893 $ 1,579 Liberty Street $ 477,125 $ 589,283 $ 548,612 $ 738 Club Blvd $ 373,654 $ 457,639 $ 426,053 $ 578 Hoover Rd $ 307,196 $ 382,742 $ 356,326 $ 475 JJ Henderson $ 416,247 $ 490,068 $ 456,244 $ 644 Morreene Rd $ 517,889 $ 562,655 $ 523,821 $ 801 Damar Court $ 426,370 $ 493,960 $ 459,868 $ 660 Oxford Manor $ 938,752 $ 1,153,210 $ 1,073,617 $ 1,453 Forest Hills $ 122,403 $ 148,127 $ 137,903 $ 189 Laurel Oaks $ 152,715 $ 182,610 $ 170,007 $ 236 Calvert Pl $ 133,341 $ 178,514 $ 166,192 $ 206 Holman $ 150,391 $ 200,281 $ 186,459 $ 232 Main St $ 72,832 $ 84,431 $ 78,604 $ 112 Morning Glory $ 41,919 $ 57,219 $ 53,270 $ 64 Edgemont Elms $ 65,840 $ 74,555 $ 69,410 $ 101 Worth Street $ 1,467 $ 1,903 $ 1,772 $ 2 Goley Pointe $ 55,440 $ 72,873 $ 67,843 $ 7,399,728 $ 8,906,918 $ 8,292,176 $ 11,360 39

40 Special Review Report Dec 2017 Capital Funds Program DHA budgeted Capital Funds at 13% less than what was received in The amount estimated to be awarded in 2017 was $2,197,160. Beginning in 2012, DHA set-aside Capital Fund amounts for development costs related to RAD conversions. To date, DHA has an estimated balance of $9,868,005 in the Capital Fund Program all obligated but not expended. THE HOUSING AUTHORITY OF THE CITY OF DURHAM CAPITAL FUND PROGRAM GRANT BALANCES CAPITAL REPLACEMENT FUNDS HOUSING FUNDS BUDGET ACTUAL FY 2011 $ 21,017 FY 2012 $ 225,000 $ 93,973 FY 2013 $ 1,019,332 $ 403,547 FY 2014 $ 1,315,466 $ 409,601 FY 2015 $ 1,697,888 $ 303,495 FY 2016 $ 1,873,006 $ 324,188 FY 2017 $ 1,862,271 $ 319,221 $ 2,197,160 $ 2,660,386 $ 7,992,963 $ 1,875,042 $ 2,197,160 $ 2,660,386 The final CFP FUNDS received in 2017 was $2,660,386, which is $463,226 more than budgeted and a variance of 21%. Replacement Housing Factor (RHF) funds are awarded for units that have been removed from inventory for the sole purpose of developing public housing units. 40

41 Special Review Report Dec 2017 Housing Choice Voucher Program The 2017 budget for the HCVP estimated an average housing assistance payment amount of $ for 31,817 unit months, which is about 2,651 units. The expected HAP amount was $18,658,761. For administrative fees, DHA expected funding of about $1,771,551 which was calculated using a proration of 82%. HAP funding for the HCVP program is subject to cash management rules. The amounts obligated each month are not equal to the amounts disbursed. HUD disburses HAP funding based on the estimated need for the program which is usually determined using data reported in the Voucher Management System. In the event that the obligated amount for a month is less than the estimated need, reserves held by HUD are used to fill the gap. On the other hand, when the obligated amounts are more than the calculated need, the overage is held in an account by HUD. These HUD-held reserves can be requested if the need arises. The final HCVP HAP funds received was 2017 is $19,508,122, which is $849,361 more than budgeted and a variance of 5%. The final HCVP administrative fee funds received 2017 was $1,719,235, which was ($52,316) less than budgeted and a variance of (3%). HUD-Held reserves at December 31, 2017 equal $756,600 It is important to note that, the final proration for HCV admin fees is unknown at this time. HUD will reconcile the awarded amounts and disburse any shortage to DHA in DHA received $41,621 in 2017 for 2016 reconciled fees. (That amount is not included in the administrative fees mentioned above. THE HOUSING AUTHORITY OF THE CITY OF DURHAM HOUSING CHOICE VOUCHER PROGRAM FY2017 FUNDING Budget Acutal Supplemental HAP $ 18,658,761 $ 2,056,253 Admin Fees $ 1,771,551 $ 1,719,235 $ 41,621 $ 20,430,312 $ 3,775,488 $ 41,621 Barbara M. Newman Chief Financial Officer January 12,

42 Operations Committee 42

43 43

44 44

45 45

46 46

47 47

48 48

49 49

50 50

51 51

52 52

53 53

54 54

55 55

56 56

57 57

58 58

59 59

60 60

61 61

62 62

63 63

64 64

65 65

66 66

67 67

68 68

69 69

70 70

71 71

72 72

73 73

74 74

75 75

76 76

77 77

78 78

79 Resident Services 79

80 Durham Housing Authority Durham, NC MINUTES OF THE RESIDENT SERVICES COMMITTEE January 11, 2017 Attendees: Gloria Nottingham, DHA Board of Commissioners Patrice Nelson, DHA Board of Commissioners Eric Pristell, Attorney Banks Law Firm Elvert Dorsey, Director of Resident Services Melvin Green, Resident Services Program Manager Tammy Jacobs, Resident Services Youth & Family Education Program Manager Call to Order The meeting was called to order by Commissioner Nottingham at 5:31 p.m. Program Overview/Updates Learning Assistance: As you are aware, the endowment for the Ruffin/Edwards Academic Development Scholarship is managed by the Triangle Community Foundation. During their audit period, it was discovered that Learning Assistance, Inc. is classified as a private foundation and can no longer be administered by Triangle Community. NOTE: Triangle Community Foundation can only handle endowments for public designated organizations. During recent discussions, DHA has provided TCF information on its pending reclassification as a public organization and is awaiting TCF s response. Commissioner Nottingham asked, how many students are you assisting now? Mr. Dorsey replied, in 2017 we assisted 4 students. Commissioner Nottingham then asked, were the total funds split between those students? Mr. Dorsey replied, no, each student is allotted up to $800 per year. Commissioner Nelson asked, who at DHA qualifies for the READS scholarship and how do they find out about it? Mr. Dorsey replied, all Public Housing residents are qualified to apply for funds. Resident Services publicizes the scholarship at Resident Council meetings and other programs that occur in DHA communities. 80

81 Commissioner Nelson asked, are HCV participants eligible for assistance through READS? Mr. Dorsey responded that the fund was originally setup to assist Public Housing residents. Commissioner Nottingham asked, do they still have to write an essay? Tammy Jacobs responded, yes they do. Grant Submissions: Resident Services submitted grant applications for Family Self- Sufficiency, ROSS and Jobs Plus. The response time to these submissions are received generally around the December or January timeframe. FSS / Homeownership Programming: The Family Self-Sufficiency / Homeownership Program have experienced a reduction in its PIC generated numbers, which resulted in a reduction in the number of coordinators for the program. With the combined help of Finance, HCV and Sherry Harris, corrections to the PIC data has much improved and our FSS numbers in Tenmast are starting to mirror the numbers in PIC as required. Commissioner Nelson asked, who benefits from the FSS coordinators? Mr. Dorsey responded, the FSS participants benefit through activities and assistance that our coordinators provide in helping them achieve their goals and increase their earned income. Wheels for Hope Program: Durham Housing Authority was accepted as a partner with Wheels for Hope of Raleigh in April of This partnership allows Resident Services to make three resident referrals per calendar year. The referral requirements are as follows: a potential Wheels4Hope recipient must be actively working with Resident Services. The resident must be employed for at least one year; must have a clean driving record and cannot have a car listed in their name. Cars are purchased for $588 (cost of the car is $500 and the tax and tags total $88). A property tax bill is sent to the car owner within 60 days of purchase. The property tax averages $35 per year. Resident Services has place (5) applicants for cars for NOTE: Resident Services is requesting placement for (5) applicants for cars for C.H.O.I.C.E.S. Program Creating Healthy Opportunities Inspiring Children to Have Everyday Success (CHOICES) offers youth a chance to learn about the life-altering consequences of criminal activity. The CHOICES program aims to give participants a realistic experience. The staff organizes tours on the third Saturday of each month from September through July. During the detention facility tour, participants remain under close supervision. They're placed in a cell alone to experience the restrictions that come with being housed in a local confinement facility. Before their release, participants get the chance to speak with detainees who willingly volunteered to caution the participants against a life of crime. 81

82 The CHOICES program is open to girls and boys between the ages of 11 and 15. A referral from a law enforcement officer, parent or guardian is required. This program will continue to be a focal point for our FAME and truancy programs. StepUp / Section 3 Program StepUp Durham offers free training, referral, and support services to unemployed and underemployed people, including those with barriers to employment like a criminal background or gaps in work history. Their entry point for partnership is a 32-hour Employment Readiness Workshop. StepUp of Durham will continue its onsite training sessions at DHA facilities for 2018 with scheduled timelines for Cornwallis Road (February), Liberty Street (April) and Hoover Road (April) communities now established. The Carolina Youth Leadership Conference Purpose To enhance the principles of leadership and personal development that can be applied in school, home and community. Participants will be exposed to knowledge and information shared by top leaders that will help them become successful citizens and ultimately reach their goals. About the Experience Participants will be inspired! Participants will be engaged! Participants will be encouraged! Participants will develop the emerging leadership skills needed to navigate the road to success. Trained professionals will conduct breakout sessions/workshops with lively conversation and instruction. They will visit college campus sites, meet new friends and learn about furthering their education and personal goals. Objectives The Carolinas Youth Leadership Conference (CYLC) seeks to engage youth aged residing in Public Housing and units subsidized by the Housing Choice Voucher Program. Our program will introduce young people to valuable leadership skills. The weekend training will enable youths to change their environment and be exposed to educational and leadership opportunities that will enhance their self-esteem and assist them in setting goals. College campus sites as hosts and/or visits to campuses are strongly encouraged. Ages: The CYLC is for boys and girls ages only. Public Comments: Community Donations for Holidays Resident Services and its community partners were successful in providing toys to two communities (McDougald Terrace and Franklin Village). Kudos go out to the following firms and organizations for making these toys available to these residents and their kids: 82

83 The Banks Law Firm Williams Law Firm Rogers Law Firm Men of Vision Women of Vision Moms on a Mission Local Radio Station 97.5 FM Rev. Ken Sealey & RISE Churches Associations Adjourn The meeting was adjourned at 6:37 pm. Respectfully Submitted, Elvert Dorsey 83

84 VIII. Resolutions for Approval 84

85 85

86 86

87 87

88 88

89 89

90 90

91 91

92 92

93 93

94 94

95 95

96 96

97 HOUSING AUTHORITY OF THE CITY OF DURHAM MEMORANDUM TO: FROM: Board of Commissioners Anthony Scott, Chief Executive Officer DATE: January 24, 2018 SUBJECT: Resolution to Consider and Approve the award of Financial Auditing Services to Novogradac & Company LLP. I. STATEMENT OF ISSUE The Housing Authority of the City of Durham ( DHA ) is interested in contracting with a financial auditing services firm to provide auditing services for its finance department; reports on compliance and internal control over financial reporting (single audit); report on compliance and internal control with requirements applicable to each major program and the filing for Tax Returns and GFOA and audited FDS. These services will include auditing financials, submitting requesting consideration and approval of the award of a contract for Financial Auditing Services to Novogradac & Company LLP ( Novogradac ). II. BACKGROUND The Housing Authority of the City of Durham (DHA), pursuant to the procurement regulations of 24 CFR 85.36, and 2 CFR 200 requested proposals from interested certified public accountants and/or accounting firms (the Firm ) for the provision of professional services to include the preparation of financial reports on compliance and internal control over financial reporting (single audit); reports on compliance and internal control with requirements applicable to each major program and the filing for Tax Returns and GFOA and audited FDS. DHA received 4 proposals from Clifton Larson Allen, Mountjoy Chilton Medley LLP, Novogradac & Company LLP, and T. Peter Oke-Bello. Evaluations were conducted and interviews with the top three proposers, Clifton Larson Allen, Mountjoy Chilton Medley LLP, and Novogradac & Company LLP. After the interviews, Novogradac was found to be the most responsive and responsible highest ranked proposer with a score of 260 points out of a maximum of 375 points or 69%. The total not to exceed amount is $208,500 for three years or $69,500 per year. 97

98 III. RECOMMENDATION It is recommended that the Board of Commissioners considers and approves the request to enter into contract with Novogradac and Company, LLC for an initial term of one year with two one year extension options for a not to exceed amount of $208,

99 RESOLUTION NO. RESOLUTION TO CONSIDER AND APPROVE ENTERING INTO CONTRACT WITH NOVOGRADAC AND COMPANY, LLC FOR FINANCIAL AUDITING SERVICES. WHEREAS, the Durham Housing Authority herein called the Durham Housing Authority, has an urgent need to procure the necessary services from a reputable and reliable source in order to maintain a productive operation. WHEREAS, the Durham Housing Authority requested proposals from qualified and interested firms using the request for proposals (RFP) process; and WHEREAS, the proposals received were reviewed and evaluated using established criteria in order to determine the most qualified firm; and WHEREAS, Novogradac and Company LLC was determined to be the highest ranked responsive and responsible proposer; and WHEREAS, The Durham Housing Authority, seeks to enter into contract with Novogradac and Company, LLC to provide financial auditing services; and WHEREAS, the term of the contract will be for one year with two one year extension options; and WHEREAS, the total not to exceed amount of the contract would be $208,500; and NOW, THEREFORE, BE IT RESOLVED by the Board of Commissioners of The Housing Authority of the City of Durham, as follows: 1. That the request to enter into a contract with Novogradac and Company LLC for financial auditing, is in all respects approved; and 2. That consistent with 24 CFR and 2 CFR 200 Procurement Standards, the Housing Authority of the City of Durham maintains records sufficient to detail the significant history of the procurement, including the basis for the selection and contract price of $208,500; and 3. That the Chief Executive Officer is hereby directed to executed all contract documents or other documents necessary to effectively negotiate this contract. 99

100 4. This resolution shall take effect immediately. Done this 24th day of January RECORDING OFFICER S CERTIFICATION I, Anthony Scott, the duly appointed Secretary of the Housing Authority of the City of Durham, do hereby certify that this resolution was properly adopted at the regular meeting of the Board of Commissioners of the Housing Authority of the City of Durham held on January 24, (SEAL) BY: Anthony Scott, Secretary 100

101 ENTITIES of Durham Housing Authority 101

102 102

103 Development Ventures Board of Directors Report AGENDA FOR REGULAR MEETING FOR THE BOARD OF DIRECTORS January 24, 2018 Thomas Niemann,Chair Anthony Scott, President 103