HOUSING AUTHORITY OF NEW ORLEANS BOARD OF COMMISSIONERS REGULAR MEETING
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1 I. STATEMENT BY GENERAL COUNSEL HOUSING AUTHORITY OF NEW ORLEANS BOARD OF COMMISSIONERS REGULAR MEETING PRESIDENT DWAYNE G. BERNAL VICE PRESIDENT ALICE RIENER COMMISSIONER TONI HACKETT ANTRUM COMMISSIONER GLEN M. PILIÉ COMMISSIONER VONDA RICE HELEN W. LANG MEMORIAL BOARDROOM, BUILDING B 4100 TOURO STREET, NEW ORLEANS, LA MONDAY, JULY 27, 2015 at 4:00 P.M. AGENDA II. III. CALL TO ORDER ROLL CALL IV. APPROVAL OF THE MINUTES OF THE REGULAR MEETING HELD ON MAY 26, 2015 V. COMMITTEE REPORT(S) VI. ITEMS FOR APPROVAL AUTHORIZATION(S) Resolution # Authorization to Submit HANO s Public Housing Agency (PHA) Plans to HUD Resolution # Capital Fund Plan Submission Resolution # Change Order No. 6 to Florida Redevelopment Resolution # Donation of Property Located at 2226 and 2234 Thalia St. to Guste Homes Resident Management Corporation RATIFICATION(S) Resolution # Ratification of Amended Bylaws of Crescent Affordable Housing Corporation VII. VIII. COMMENT(S) Public Comment(s) Board of Commissioners Comment(s) ADJOURNMENT Page 1 of 1
2 July 27, 2015 MEMORANDUM To: Through: From: Board of Commissioners President Dwayne G. Bernal, Vice President Alice Riener, Commissioner Glen Pilié, Commissioner Toni Hackett Antrum, and Commissioner Vonda Rice Gregg Fortner Executive Director Shelley Smith Director, Strategic Planning RE: Authorization to Submit HANO s Public Housing Agency (PHA) Plans to HUD The Quality Housing and Work Responsibility Act (QHWRA) of 1998 and accompanying HUD regulations require the nation s housing authorities to develop 5-Year and Annual Public Housing Agency (PHA) Plans. The 5-Year Plan, which is prepared every fifth fiscal year, delineates the PHA s mission, goals, and objectives. The Annual Plan describes the Agency s immediate operations, policies, services, and programs. During this HANO planning cycle, a new 5-Year Plan was developed for Fiscal Years (FYs) along with the corresponding Annual Plan for Fiscal Year Under the November 2013 Capital Fund Program (CFP) Final Rule, the CFP 5-Year Action Plan is decoupled from the PHA Plan such that these Plans must be separately submitted to HUD. HANO s PHA and CFP Plans, however, were developed under a concurrent preparation schedule and through a combined stakeholder engagement process. The Plan drafts were posted for the required 45-day public comment on April 24, 2015 and made available for review in two formats: the full format includes all PHA Plan template components while the condensed format contains only those elements required for submission to HUD pursuant to Notice PIH The draft PHA Plans were reviewed by the Resident Advisory Board (RAB) at a consultation meeting on May 13, 2015 and a report containing HANO s responses to the RAB s recommendations was subsequently prepared and appended to the Plan document. On May 21, 2015, the PHA Plan was transmitted to the City Administration for review and certification of consistency with the Consolidated Plan. An Agency Plans Stakeholder Workshop was held on May 27 th and a June 9 th Public Hearing was conducted at the end of the 45-day comment period. On June 16 th, the PHA Plans were presented to the Development, Asset Management & Operations Committee of the HANO Board of Commissioners. All comments were carefully considered before finalizing the Plans.
3 It is requested that the HANO Board of Commissioners adopt the HANO s FY Year Plan and the FY 2016 Annual Plan and provide authorization to submit the Plans and related certifications to HUD in the condensed format required under Notice PIH Page 2
4 HOUSING AUTHORITY OF NEW ORLEANS BOARD OF COMMISSIONERS REGULAR MEETING JULY 27, 2015 RESOLUTION NO WHEREAS, the 1998 Quality Housing and Work Responsibility Act (QHWRA) was passed by Congress and implemented by the U.S. Department of Housing and Urban Development (HUD) under, which requires the development of a Public Housing Agency (PHA) Plan with Annual and 5- Year components; and, WHEREAS, HUD issued final rules under 24 CFR Part 903 and developed a standardized template(s) for preparation of the PHA Plan; and the Housing Authority of New Orleans (HANO) prepared its PHA 5-Year Plan for Fiscal Years (FYs) and its FY 2016 Annual Plan in accordance with HUD requirements; and WHEREAS, the Housing Authority of New Orleans issued public notice and made drafts of the PHA 5-Year and Annual Plans available for 45-day comment on April 24, 2015; held a consultation meeting with the Resident Advisory Board on May 13, 2015; provided the draft Plans to the City Administration for review and certification on May 21, 2015; held a Stakeholder Workshop on May 27, 2015; conducted a Public Hearing on June 9, 2015; and discussed the Plans at the Development, Asset Management & Operations Committee of the HANO Board of Commissioners on June 16, 2015; and WHEREAS, the Housing Authority of New Orleans considered comments from the Resident Advisory Board, HANO residents at-large, advocacy organizations, and the general public before finalizing the Plan documents; and WHEREAS, in accordance with Notice PIH , HANO compiled the 5-Year Plan and specified portions of the Annual Plan in the prescribed condensed template format for submission to HUD. THEREFORE, BE IT RESOLVED that the Board of Commissioners hereby adopts HANO s 5-Year Plan for FYs and the FY 2016 Annual Plan and authorizes their submission with the requisite certifications to HUD. APPROVAL: Executed this 27 th day of July, DWAYNE G. BERNAL PRESIDENT, BOARD OF COMMISSIONERS
5 July 27, 2015 MEMORANDUM To: Through: From: Re: Board of Commissioners President Dwayne G. Bernal, Vice President Alice Riener, Commissioner Glen Pilié, Commissioner Toni Hackett Antrum, and Commissioner Vonda Rice Gregg Fortner Executive Director Shelley Smith Director, Strategic Planning Capital Fund Plan Submission The Housing Authority of New Orleans (HANO) has prepared its Capital Fund Program (CFP) 5- Year Action Plan (Plan) describing capital improvements needed to ensure long-term viability of the HANO s public housing developments. The Plan covers Federal Fiscal Years (FFYs) and will be updated yearly on a rolling basis. The November 2013 Capital Fund Program Final Rule decoupled the CFP Plan from the PHA Plan. Therefore, HANO s CFP 5-Year Action Plan will be separately transmitted to the U.S. Department of Housing and Urban Development (HUD). HANO s PHA and CFP Plans, however, were developed under a concurrent preparation schedule and through a combined stakeholder engagement process. Funding for the Plan is essentially derived from two HUD formula grants: Capital Fund Program (CFP) grants, and Replacement Housing Factor (RHF) grants which can only be utilized for redevelopment purposes. Under the revised formula, RHF grants are being phased-out and replaced with Demolition and Disposition Transitional Funding (DDTF) which is added to the CFP grants calculation. As permitted by regulations, HANO allocates limited portions of these grants for administration, operations, and management improvements and the remaining funds are dedicated to capital work items. Budgeted work items for all five years of the CFP Action Plan are outlined in the HUD prescribed format. Project cost estimates are based on HANO s historical cost for similar projects and will be finalized once the Agency engages with Architectural and Engineering firms. In the spring of this year, HANO received notification of its FFY 2015 capital grant allocations and those amounts, along with anticipated funding formula changes, were used as the basis for the CFP 5-Year Action Plan projections. As captured in the table below, the Action Plan contemplates an average of approximately $11.5 million annually in capital funding bringing the total projected 5-year budget to approximately $57.4 million.
6 Also in the spring, HANO was required to submit an FFY 2015 CFP original budget based on the activities in its prior approved CFP 5-Year Action Plan. Due to the addition of DDTF in the CFP grant and a large reduction in RHF grants in FFY 2015, the newly proposed Action Plan includes a significant amendment to the FFY 2015 capital budget, encompassing HANO s continuing commitment of funds for the ongoing redevelopment work at Iberville. The Plan also allocates funding for Scattered Sites demolition and redevelopment activities and minimal development costs for the Guste III, Lafitte Senior, and Lafitte Homeownership projects. HANO CAPITAL FUND 5-YEAR ACTION PLAN PROJECTED FFY 2015 FFY 2016 FFY 2017 FFY 2018 FFY 2019 FUNDING Year 1 Year 2 Year 3 Year 4 Year 5 TOTALS CFP 10,997,903 10,396,585 10,530,062 10,726,585 11,046,585 53,697,720 RHF - Tier 1 1,470, , , ,505,433 RHF - Tier 2 1,134,866 33,321 32, ,201,147 TOTALS 13,603,758 11,359,996 10,667,376 10,726,585 11,046,585 57,404,300 *All grant amounts projected in the Plan are subject to Congressional Appropriation. The need for capital repairs at existing sites where HANO has public housing units far outweighs the projected allocation of capital funding. Thus, the properties owned by HANO and its affiliates were given top priority (e.g. Fischer, Guste, and Scattered Sites) and next-level priority was given to the oldest of the mixed-finance sites (River Gardens and The Estates). Over $5.4 million is budgeted for these sites within the 5-Year Plan period. In the latter part of the Plan period, $3.2 million is allocated to B.W. Cooper Phase 2 and $1.2 million is budgeted for PHA-wide line item for repairs and rehabilitation. The draft CFP 5-Year Action Plan was posted for the required 45-day public comment on April 24, 2015 and reviewed by the Resident Advisory Board (RAB) at a consultation meeting on May 13, A report containing HANO s responses to the RAB s recommendations was subsequently prepared and appended to the Plan document. On May 21, 2015, the CFP Plan was transmitted to the City Administration for review and certification of consistency with the Consolidated Plan. An Agency Plans Stakeholder Workshop was held on May 27 th and a June 9 th Public Hearing was conducted at the end of the 45-day comment period. On June 16 th, the CFP Action Plan was presented to the Development, Asset Management & Operations Committee of the HANO Board of Commissioners. All comments were carefully considered before finalizing the Plan. It is requested that the HANO s Board of Commissioners adopt the HANO CFP 5-Year Action Plan for FFY and provide authorization to submit the Plan and related documents and certifications to HUD. Page 2 Page 2
7 HOUSING AUTHORITY OF NEW ORLEANS BOARD OF COMMISSIONERS REGULAR MEETING JULY 27, 2015 RESOLUTION NO WHEREAS, the Housing Authority of New Orleans (HANO) has prepared its Capital Fund Program (CFP) 5-Year Action Plan for Federal Fiscal Years (FFs) describing capital improvements needed to ensure long-term viability of the Agency s public housing developments; and WHEREAS, the November 2013 Capital Fund Final Rule decoupled the CFP Plan from the PHA Plan and therefore, HANO s CFP Action Plan will be separately transmitted to HUD upon authorization by the HANO Board of Commissioners; and WHEREAS, HANO s CFP Action Plan contemplates, subject to Congressional Appropriation, approximately $11.5 million in annual HUD capital grants bringing the total projected 5-year budget to approximately $57.4 million, and all proposed work items are outlined in the HUD prescribed format in the CFP 5-Year Action Plan document; and WHEREAS, funding for the Plan is essentially derived from two HUD formula grants: Capital Fund Program (CFP) grants and Replacement Housing Factor (RHF) grants which can only be utilized for redevelopment purposes; and WHEREAS, as permitted by regulations, HANO has allocated limited portions of its projected CFP and RHF grants for administration, operations, and management improvements with the remaining funds dedicated to capital work items; and WHEREAS, under HUD s revised formula, RHF grants are being phased-out and replaced with Demolition and Disposition Transitional Funding (DDTF) which is added to the CFP grants calculation; and WHEREAS, due to the addition of DDTF in the CFP grant and a large reduction in RHF grants in FFY 2015, HANO s newly-developed 5-Year Action Plan includes a significant amendment to the prior approved FFY 2015 capital budget, encompassing HANO s continuing commitment of funds for the ongoing redevelopment work at Iberville; and WHEREAS, the Housing Authority of New Orleans issued public notice and made a draft of the CFP 5-Year Action Plan available for 45-day comment on April 24, 2015; held a consultation meeting with the Resident Advisory Board on May 13, 2015; provided the draft Plan to the City Administration for review and certification on May 21, 2015; held a Stakeholder Workshop on May 27, 2015; conducted a Public Hearing on June 9, 2015; and discussed the Plan at the Development, Asset Management & Operations Committee of the HANO Board of Commissioners on June 16, 2015; and WHEREAS, the Housing Authority of New Orleans considered comments from the Resident Advisory Board, HANO residents at-large, advocacy organizations, and the general public before finalizing the CFP 5-Year Action Plan; 3 Page
8 Resolution No July 27, 2015 Page 2 THEREFORE, BE IT RESOLVED that the Board of Commissioners hereby adopts HANO s CFP 5-Year Action Plan for FFYs and authorizes its submission with the requisite documents and certifications to HUD. APPROVAL: Executed this 27 th day of July, DWAYNE G. BERNAL PRESIDENT, BOARD OF COMMISSIONERS Page 2
9 July 27, 2015 MEMORANDUM To: Through From: Board of Commissioners President Dwayne G. Bernal, Vice President Alice Riener, Commissioner Glen Pilié, Commissioner Toni Hackett Antrum, and Commissioner Vonda Rice Gregg Fortner Executive Director Jennifer Adams Director, Development and Modernization Re: Change Order #6 to Florida Redevelopment The Housing Authority of New Orleans (HANO) executed contract # with Parkcrest Builders, LLC on March 4, 2013 to build 51 public housing units and 1 common space unit at the site roughly bounded by Law, Congress, N. Dorgenois, and Alvar Streets known as the Florida Redevelopment. Due to the contractor s failure to deliver units more than six months after the contractual completion date in September 2014, the contract was terminated on April 10, HANO simultaneously requested that the bonding company, Liberty Mutual Insurance, fulfill its obligations under the performance and payment bonds to complete the project. On June 9, 2015, the Takeover Agreement between HANO and Liberty Mutual took effect, leaving Parkcrest Builders in place under the control of Liberty Mutual and its consultants. During completion of the original scope of work, it was determined that ventilation must be added to the attics in order to maintain the roof warranty. This work must be carried out immediately in order to allow tenants to occupy the units in late August. This change order cost is $113, The Board of Commissioners approved the original contract with Parkcrest Builders for the Florida Redevelopment in an amount not to exceed $11,288, Previous change orders have resulted in a net decrease of $15, to the contract. The contract amount after execution of this change order will be $11,386,238.00, which exceeds the prior authorization of the Board. The change order will be funded with FEMA and RHF funds. HANO requests that the Board of Commissioners to authorize the increase in the project budget to $11,386, and to authorize the Executive Director to execute change order #6 to the contract for the Florida Redevelopment in the amount of $113, for the addition of roof vents to each building.
10 HOUSING AUTHORITY OF NEW ORLEANS BOARD OF COMMISSIONERS REGULAR MEETING JULY 27, 2015 RESOLUTION NO WHEREAS, the Board of Commissioners authorized the Housing Authority of New Orleans (HANO) to execute contract # with Parkcrest Builders LLC (Parkcrest) for the Florida Redevelopment in the amount of $11,288,000 to be funded with Replacement Housing Factor funds and FEMA funds to build 51 public housing rental units and one common space unit; and WHEREAS, HANO terminated the contract on April 10, 2015 due to the contractor s inability to deliver units in the contract period; and WHEREAS, HANO executed a Takeover Agreement with Parkcrest s bonding company, Liberty Mutual Insurance (Liberty Mutual), to complete the contract, which allows Parkcrest to perform the work of the original contract under the supervision and financial responsibility of Liberty Mutual and its consultants; and WHEREAS, in order to maintain the roof warranty contemplated in the original scope of work, it was determined that Change Order #6 in the amount of $113, was necessary which adds roof ventilation to each building; and WHEREAS, previous change orders have resulted in a net decrease of $15, to the contract, and the contract amount after execution of this change order will be $11,386,238.00, which exceeds the prior authorization of the Board; and WHEREAS, the cost has been review and negotiated by the project architect and HANO staff and has been found to be fair and reasonable; and WHEREAS, funding for Change Order #6 will be provided by FEMA and RHF funds. THEREFORE, BE IT RESOLVED, that the Board of Commissioners of the Housing Authority of New Orleans hereby authorizes the increase in the contract cost to $11,386, and authorizes the Executive Director to execute Change Order #6 to contract # between HANO and Parkcrest for the Florida Redevelopment in an amount not to exceed One Hundred Thirteen Thousand Eight Hundred and Seventy Three dollars ($113,873.00). Executed this 27 th day of July, 2015 APPROVAL: DWAYNE G. BERNAL PRESIDENT, BOARD OF COMMISSIONERS Page 2
11 July 27, 2015 MEMORANDUM To: Through From: Board of Commissioners President Dwayne G. Bernal, Vice President Alice Riener, Commissioner Glen Pilié, Commissioner Toni Hackett Antrum, and Commissioner Vonda Rice Gregg Fortner Executive Director Jennifer Adams Director, Development and Modernization Re: Act of Donation to GHRMC Square 322 Lot B, Lot 13, Lot 14 In 2004, the Guste Homes Resident Management Corporation (GHRMC) purchased three lots in Square 322 (Lot B, Lot 13 and Lot 14) near the intersection of South Liberty Street and Thalia Streets in Central City. These lots are directly across the street from the Guste Highrise, which contains 385 public housing rental units, and Guste I, which contains 82 mixed-income units. In 2013, the GHRMC donated the property to the Housing Authority of New Orleans (HANO) in anticipation of the construction of a community center that would serve the entire Guste community. Board Resolution # accepted the donation and provided for an operating reserve for the Guste community center. A Memorandum of Understanding (MOU) executed in conjunction with the donation required HANO to deed the property back to the GHRMC if, for any reason, the community facility was not built. When the donation was accepted in 2013, HANO anticipated that the cost to build a community center would be part of the Guste III redevelopment and funded through Low Income Housing Tax Credit (LIHTC) equity. When certain issues regarding the community center assemblage, including outstanding tax liens, delays in resubdivision, and restrictive LIHTC regulations regarding the adjacency of property to the redevelopment site began to delay the financial closing of the Guste III project, the community center portion was removed from the Guste III redevelopment financing transaction. The effect was a loss of the capital funding and operating subsidy for the community center. Anticipated developer fee from the redevelopment of Guste III has been delayed and is expected to be reduced due to the delays in the construction of units. Consequently, the community center project remains unfunded. In accordance with the MOU, HANO seeks to return the deed and maintenance of the property to GHRMC. HANO requests the Board of Commissioners authorize the Executive Director to execute any and all documents to effectuate the transfer of ownership of the property to the GHRMC.
12 HOUSING AUTHORITY OF NEW ORLEANS BOARD OF COMMISSIONERS REGULAR MEETING JULY 27, 2015 RESOLUTION NO WHEREAS, the Housing Authority of New Orleans (HANO) accepted the Act of Donation from Guste Homes Resident Management Corporation (GHRMC) for the property more specifically identified in the attached Exhibit A (the Property ) through Board Resolution # ; and WHEREAS, HANO and GHRMC entered into a Memorandum of Understanding (MOU) dated April 24, 2013 that stipulated that the donation would be made to HANO for use in the construction of a community center to serve the Guste residents; and WHEREAS, due to certain delays in funding the construction of the community center, the community center portion was removed from the Guste III redevelopment financing transaction resulting in a loss of the capital funding and operating subsidy for the community center; and WHEREAS, the community center remains unfunded and therefor HANO desires to return the donated Property to GHRMC in accordance with the terms of the MOU. THEREFORE, BE IT RESOLVED, that the Board of Commissioners of the Housing Authority of New Orleans authorizes the Executive Director to execute any and all documents necessary to effectuate the transfer of ownership of the Property to the GHRMC. Executed this 27 th day of July, 2015 APPROVAL: DWAYNE G. BERNAL PRESIDENT, BOARD OF COMMISSIONERS Page 2
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26 July 27, 2015 MEMORANDUM To: Through: From: Board of Commissioners President Dwayne G. Bernal, Vice President Alice Riener, Commissioner Glen Pilié, Commissioner Toni Hackett Antrum, and Commissioner Vonda Rice Gregg Fortner Executive Director Shelley Smith President, Crescent Affordable Housing Corporation RE: Ratification of Amended Bylaws of Crescent Affordable Housing Corporation Crescent Affordable Housing Corporation (CAHC), amended its Bylaws at the Corporation s meeting on May 4, 2015 and is hereby requesting ratification of said Bylaws by the Housing Authority of New Orleans (HANO) Board of Commissioners. Prior to enactment, the amended Bylaws must be ratified by HANO acting in its capacity as sole Member of CAHC. As background, CAHC was formed by HANO in 2003 as a 501(c) 3 non-profit subsidiary to serve as a development arm of HANO and to facilitate the HANO s affordable housing mission. Over the years since its creation, CAHC has participated in a variety of HANO redevelopment projects and partnerships. CAHC has also supported HANO s client services initiatives through the annual Summer Youth Employment Program which, since 2010, has provided critically needed work opportunities for over 680 youth between the ages of The CAHC Board is comprised of three Directors whose appointments were confirmed by HANO s Board of Commissioners at its meeting on July 29, 2014, Resolution No : Shelley Smith (President); Cynthia Wiggins (Vice President), and Sieglinde Chambliss (Secretary/Treasurer). In an effort to strengthen operational management of the Corporation, the CAHC Board has reviewed and revised its Bylaws, adding both new and clarifying provisions. The revised Bylaws specify that the Member (HANO) appoints CAHC s Directors and require that CAHC Directors be residents of Orleans Parish, where previously the only requirement was that each Director be at least 18 years of age and need not be a resident of Louisiana. They also bring the CAHC Bylaws into greater alignment with the Code of Governmental Ethics with respect to conflicts of interest, apparent conflicts, as well as property interest stating that no CAHC Director shall have any right, title, or interest to any property or asset of the Corporation. Compensation of Directors is limited to actual out-of-pocket expenses. The revised CAHC Bylaws stipulate that the Corporation shall at all times be operated on a nonprofit basis. With regard to financial transactions, tightened provisions have been incorporated to ensure that all projects, expenditures, and obligations shall be subject to approval by the CAHC
27 Board of Directors. Signatory controls have been expanded so that checks, drafts, or other forms of payment shall be signed by the CAHC Treasurer and countersigned by a second Officer of the Corporation. Although CAHC audits have been routinely performed, specific language was embedded into the revised Bylaws to ensure that an audit of the Corporation s operations shall be conducted annually by an independent third-party. This memorandum outlines key provisions contained in the amended CAHC Bylaws, however, a full copy of the revised CAHC Bylaws is appended to the attached Resolution No for the Board s consideration. Collectively, these provisions are designed to strengthen operations and improve CAHC s organization and management. It is hereby requested that the HANO Board of Commissioners ratify the amended Bylaws of Crescent Affordable Housing Corporation. Page 2
28 HOUSING AUTHORITY OF NEW ORLEANS BOARD OF COMMISSIONERS REGULAR MEETING JULY 27, 2015 RESOLUTION NO WHEREAS, Crescent Affordable Housing Corporation (CAHC) was formed by the Housing Authority of New Orleans (HANO) in 2003 as a 501(c)3 non-profit subsidiary to serve as a development arm of HANO and to facilitate the HANO s affordable housing mission; and WHEREAS, since its creation in 2003 CAHC has participated in a variety of HANO redevelopment projects and partnerships; and WHEREAS, since 2010 CAHC has also supported HANO s client services initiatives through the annual Summer Youth Employment Program which, to date, has provided critically needed work opportunities for over 680 youth between the ages of 14-21; and WHEREAS, in order to strengthen CAHC s operational management, the CAHC Board has reviewed and amended its Bylaws; and WHEREAS, the amended Bylaws encompass both new and clarifying provisions that will improve CAHC s organization and management; and WHEREAS, an executed copy of the amended CAHC Bylaws as adopted by the CAHC Board at its meeting on May 4, 2015 is attached to this Resolution; and WHEREAS, prior to enactment the amended CAHC Bylaws must be ratified by HANO acting in its capacity as sole Member of CAHC; THEREFORE, BE IT RESOLVED that the amended CAHC Bylaws are hereby ratified by the HANO Board of Commissioners. APPROVAL: Executed this 27 th day of July, DWAYNE G. BERNAL PRESIDENT, BOARD OF COMMISSIONERS
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