HOUSING OPPORTUNITIES COMMISSION OF MONTGOMERY COUNTY Detrick Avenue Kensington, Maryland (240) Minutes November 4,

Transcription

1 HOUSING OPPORTUNITIES COMMISSION OF MONTGOMERY COUNTY Detrick Avenue Kensington, Maryland (240) Minutes November 4, The monthly meeting of the Housing Opportunities Commission of Montgomery County was conducted on Wednesday, November 4, 2009 at Detrick Avenue, Kensington, Maryland beginning at 4:15 p.m. Those in attendance were: Present Michael Kator, Chair Roberto Piñero, Vice Chair Norman Dreyfuss, Chair Pro Tem Jean Banks Norman Cohen Pamela Lindstrom Sally Roman Also Present Annie Alston, HOC Executive Director Ken Tecler, HOC Counsel Kayrine Brown Maryann Dillon Lillian Durham Scott Ewart Joy Flood Les Kaplan Tedi Osias Jerry Robinson Gail Willison Bill Anderson Jim Atwell Vivian Benjamin Patrice Birdsong Scott Cataline Tom DeBrine Peter Desjardins Terri Fowler Barbara Galloway Cornelia Kent Crystal King Sharon Marbley Patrick Mattingly John McIlroy Patrick McMahon Jim Miller Diane Morrison Lena Nazarian Andrew Oxendine Marsha Smith Kisha Webb Eileen Hartnett Special Assistant to the Commission IT Support: Irma Rodriguez Guests O. Dasent Jen Drganc, Jubilee Association of MD, Inc. Stacie West, Student, UMCP Tim Wiens, Jubilee Association of MD, Inc.

2 Minutes 11/04/09 Page 2 of 11 Chair Kator convened the monthly meeting of the Housing Opportunities Commission at 4:15 p.m. The Consent Calendar was approved upon a motion by Commissioner Roman and seconded by Vice Chair Piñero. Affirmative votes were cast by Commissioners Kator, Piñero, Banks, and Roman. Commissioners Dreyfuss, Cohen, and Lindstrom were temporarily away and did not participate in the vote. I. CONSENT ITEMS A. Approval of Minutes of the Public Hearing of October 7, The minutes were approved as submitted. B. Approval of Minutes of October 7, The minutes were approved as submitted. II. INFORMATION EXCHANGE A. Report of the Executive Director Ms. Alston added the following items to her written report: Doug Ryan, Assistant Director for Federal Programs, participated in the County s One-Stop Fair Housing training on October 22 nd to discuss fair housing in the voucher program and general lease activities for property owners. The County Executive and County Council President participated with over 200 people in attendance. The Village at King Farm had eleven perspective buyers in their first drawing which allowed them to select their unit. It is likely a number of them will close by the end of the month. HUD has scheduled a remote session with HOC staff to review the grant approval process, environmental compliance, procurement policy and how HOC is performing in the Recovery Grant Process. A site visit will follow as HUD monitors the activities. The County Executive s 2010 Savings Plan was distributed to the Commission. The County Executive is recommending a Savings Plan of $30 million. HOC receives $6.1 million from the County. During the previous Commission meeting, HOC returned $30,680 to the County at their request. The Executive Director and staff met with OMB to discuss FY CIP Budget. This year, the submission is emphasizing the importance of maintaining the funding for the sprinklers in public housing and continuing with the $1.25 million HOC receives annually for public housing improvements. Planning Board member Jean Cryor passed away after a brief illness. B. Commissioner Exchange Chair Kator acknowledged the passing of Ms. Cryor and her contributions to affordable housing in Montgomery County.

3 Minutes 11/04/09 Page 3 of 11 Commissioner Banks reported on the Family Self Sufficiency graduation which was very inspiring. Chair Pro Tem Dreyfuss spoke on the Commission s behalf during the ceremony. Commissioner Roman stated she testified on the White Flint Master Plan. The Council had two sessions and did not have any questions following her testimony. Commissioner Roman also reported she has learned that the County Council has removed the benefit for affordable housing from the growth policy. C. Community Forum - None III. COMMITTEE REPORTS and RECOMMENDATIONS FOR ACTION A. Development and Finance Committee Commissioner Piñero 1. Authorization to Select General Contractor and Enter into Construction Contract for Jubilee House Maryann Dillon, Director of Real Estate Development, Lena Nazarian, Housing Acquisitions Manager, and Scott Cataline, Construction Manager, made a brief presentation regarding the selection of a general contractor and the RFP process for a single family home for use by Jubilee House residents. Vice Chair Piñero stated construction costs are being funded through the Maryland Department of Health and Mental Hygiene. The three residents will each have a project based voucher which will cover the rent and ongoing expenses. Mr. Cataline explained the renovations will include complete replacement of the roof, adding a sprinkler system, new drywall, kitchen cabinets, plumbing fixtures and adding a new bath and bedroom and new accessible features. The residents are expected to occupy the unit in the second quarter of The following resolution was adopted upon a motion by Vice Chair Piñero and seconded by Commissioner Roman. Affirmative votes were cast by Commissioners Kator, Piñero, Dreyfuss, Banks, Cohen, and Roman. Commissioner Lindstrom was temporarily away and did not participate in the vote. RESOLUTION: RE: Authorization to Select General Contractor and Enter into Construction Contract for Jubilee House WHEREAS, on May 7, 2008, the Housing Opportunities Commission of Montgomery County approved the purchase of a single family home located at 2305 Hermitage Avenue in Wheaton, Maryland for use and operation by Jubilee Association of Maryland, Inc. (Jubilee); and WHEREAS, the home will be renovated to house three, low-income developmentally disabled adults and one live-on aide; and

4 Minutes 11/04/09 Page 4 of 11 WHEREAS, HOC will serve as the owner/landlord of the property and Jubilee will be the social service provider; and WHEREAS, on August 28, 2009, a Request for Proposals for the complete renovation of 2305 Hermitage Avenue (RFP #1664) was released by HOC s Procurement Office; and WHEREAS, five proposals were submitted by the due date; and WHEREAS, a project selection committee was formed to recommend the highest scoring respondent with the best combination of qualification factors and price; and WHEREAS, OMF Contractors, Inc. was the highest scoring respondent. NOW, THEREFORE, BE IT RESOLVED by the Housing Opportunities Commission of Montgomery County that: 1. OMF Contractors, Inc. is approved to be the selected general contractor for the renovation of 2305 Hermitage Avenue; and 2. The Executive Director is authorized to take any and all actions and to execute any and all documents necessary to enter into a construction contract with OMF Contractors, Inc. in an amount not to exceed the bid price of $349,000 plus 25% contingency. 2. Authorization to Accept Funding and Proceed with Identification of Two Homes for Developmentally Disabled Adults Lillian Durham, Director of Resident Services, gave a brief overview of the grant award to purchase and renovate two single-family homes for developmentally disabled adults. Ms. Durham explained the search for these two homes will begin once the Commission approves this action. The residents are not expected to require a mobility accessible unit which reduces the renovation costs. The following resolution was adopted upon a motion by Vice Chair Piñero and seconded by Commissioner Cohen. Affirmative votes were cast by Commissioners Kator, Piñero, Dreyfuss, Banks, Cohen, Lindstrom and Roman. RESOLUTION: RE: Authorization to Accept Funding and Proceed with Identification of Two Homes for Developmentally Disabled Adults WHEREAS, HOC is the recipient of a new grant from the Maryland Department of Health and Mental Hygiene (DHMH) Administration-Sponsored Capital Program; and WHEREAS, the grant award, up to $1 million, is to be used for the purchase and renovation of two single-family homes that would each house three developmentally disabled single adults and one live-on aide; and

5 Minutes 11/04/09 Page 5 of 11 WHEREAS, as a condition of accepting the award, HOC must obtain a firm commitment from the Montgomery County Department of Housing and Community Affairs (DHCA) for matching funds in the amount of $334,000; and WHEREAS, HOC will serve as the owner/landlord and will provide three efficiency Project-Based Vouchers for each home; and WHEREAS, Jubilee Association of Maryland, Inc. (Jubilee) will serve as the principal partner agency and service provider. NOW, THEREFORE, BE IT RESOLVED by the Housing Opportunities Commission of Montgomery County that: 1. The Executive Director is authorized to accept a grant award of up to $1 million from DHMH for the purpose of acquiring and rehabilitating two single family homes to serve developmentally disabled residents and is further authorized to execute any and all necessary documents in connection with obtaining and closing on such funding; and 2. The Executive Director is authorized to pursue a firm commitment and thereafter accept required matching funds and any bridge loans from DHCA for the same purpose and is further authorized to execute any and all necessary documents in connection with obtaining or closing such financing. 3. The Commission authorizes up to $10,000 from HOC s General Fund Operating Account for earnest money deposits to be repaid upon closing on approved acquisitions. 3. Authorization to Select General Contractor and Enter into a Construction Contract for Magruder's Discovery Maryann Dillon, Director of Real Estate Development, and Scott Cataline, Construction Manager, explained the development plan was approved previously and now the capital market is favorable for issuing bonds. A RFP was issued in August and Hamel Builders is most qualified. Mr. Cataline reviewed the selection criteria. Vice Chair Piñero inquired about selecting minority and women owned firms and Bill Anderson, Procurement Officer, explained the RFP states that the selected contractor must meet the 10% goal that is established for this project. Overall, HOC achieves its goal of 25% annually. The following resolution was adopted upon a motion by Vice Chair Piñero and seconded by Commissioner Cohen. Affirmative votes were cast by Commissioners Kator, Piñero, Dreyfuss, Banks, Cohen, Lindstrom and Roman. RESOLUTION: RE: Authorization to Select General Contractor and Enter into a Construction Contract for Magruder s Discovery

6 Minutes 11/04/09 Page 6 of 11 WHEREAS, the Housing Opportunities Commission intends to renovate Magruder s Discovery using the proceeds of a tax-exempt bond financing and a mortgage insured under the FHA Risk Sharing program; and WHEREAS, on August 18, 2009, an RFP for the complete rehabilitation of Magruder s Discovery (RFP #1635) was released by HOC s Procurement Office to all entities under the renovation and general contractor categories of the bidders list and posted on Montgomery County s RAPID Website. Eleven proposals were submitted by the due date. Ten proposals met the criteria outlined in the RFP; and WHEREAS, a project selection committee was formed to recommend the highest scoring respondent with the best combination of qualification factors and price; and WHEREAS, Hamel Builders was the highest scoring respondent as determined by the project selection committee who reviewed the responses and scored the bidders. NOW, THEREFORE, BE IT RESOLVED by the Housing Opportunities Commission of Montgomery County that Hamel Builders is approved as the general contractor for the rehabilitation of Magruder s Discovery and the Executive Director is authorized to execute any and all documents necessary to enter into a construction contract with Hamel Builders in an amount not to exceed the bid price of $2,693,769 plus 10% contingency. B. Budget, Finance and Audit Committee Commissioner Cohen 1. Approval of Additional Operating Deficit Guarantee for the MetroPointe Development Corporation Transaction Kayrine Brown, Director of Mortgage Finance, and Peter Desjardins, Asset Manager, made a brief presentation. Ms. Brown acknowledged members of her staff, Vivian Benjamin, Patrick McMahon, and Kisha Webb, for their assistance in this transaction. Additionally, Jim Miller and Peter Desjardins from Housing Management, Gail Willison and Terri Fowler from the Finance Division, Maryann Dillon and Lena Nazarian from the Real Estate Division were also acknowledged for their assistance in this transaction. Due to the collapse in the financial markets last year, a permanent financing plan could not be put in place for MetroPointe. The project still needs the general obligation support of Montgomery County which is being requested for an additional two years. It is hopeful that the markets will improve and HOC can continue with a long term plan. Because of the operating deficits that are expected from the property in the next two years, a commitment from the OHRF for up to $750,000 is being requested. Mr. Desjardins stated the occupancy is currently at 90% which is expected to rise throughout the month. Mr. Desjardins explained the budget impact that the construction delays placed on the property. Many residents moved in during the winter months, and residents leases are expiring and renewing leases has been difficult without concessions. The retail space has been challenging to rent due to the loss of the Metro temporary entrance. Chair Kator cautioned staff about future projections in renting retail spaces.

7 Minutes 11/04/09 Page 7 of 11 Ms. Brown responded to Chair Pro Tem Dreyfuss question about $750,000 from the OHRF. The funding is not necessarily a direct draw from the OHRF; it could be funded through the budget process and if there is not a source through that process the OHRF would be used as a loan to the project. Ms. Brown explained that the financing issue with this project is liquidity and issuing a short term note is the better alternative at this time. There was a lengthy discussion regarding the long-term effect of rent concessions, low occupancy and income projections on the property. The following resolution was adopted, as revised, upon a motion by Commissioner Cohen and seconded by Chair Pro Tem Dreyfuss. Affirmative votes were cast by Commissioners Kator, Piñero, Dreyfuss, Banks, Cohen, Lindstrom and Roman. RESOLUTION: RE: Approval of Additional Operating Deficit Guarantee for the MetroPointe Development Corporation Transaction WHEREAS, the construction of MetroPointe Apartments which began in 2006 was substantially completed September 2008 using the proceeds raised from the issuance of taxable two-year Bond Anticipation Notes that were backed by the Triple A full faith and credit of Montgomery County; and WHEREAS, the residential portion of the 173-unit development is leased and is currently 97% occupied, but the construction delay as well as rental market and national economic factors have forced the management to offer concessions to attract and retain tenants. This plus the difficulty in leasing the retail space has resulted in an overall reduction in operating revenues and increased operating deficits; and WHEREAS, the permanent financing plan anticipated the issuance of Variable Rate Demand Obligation bonds supported by a liquidity facility, pursuant to which, the Commission authorized the issuance of these bonds in September 2008, immediately preceding the national and global financial market disruption in the fall of This has resulted in the postponement of the permanent financing and a request for continued support from Montgomery County for an additional year; and WHEREAS, the permanent financing plan also included mortgage insurance to be provided by FHA under its Risk Sharing Program. The mortgages for the property are now fully insured; and WHEREAS, the bond market has improved but the market for liquidity is still restrictive, making this support difficult and expensive to obtain. The project still needs the general obligation (GO) support of Montgomery County which is being requested for an additional two years; and WHEREAS, to obtain approval of the continued use of the County s GO support, HOC must prove that the project is self-supporting. If not, it must demonstrate that the Commission has committed its financial resources to fund any operating deficits.

8 Minutes 11/04/09 Page 8 of 11 NOW, THEREFORE, BE IT RESOLVED by the Housing Opportunities Commission that an operating deficit guarantee from the Opportunity Housing Reserve Fund for up to $750,000 as its demonstration to Montgomery County that the Commission is financially committed to the MetroPointe Apartments development and that any draw on the County s GO pledge is remote, be approved. BE IT FURTHER RESOLVED that in the event that the operating deficit guarantee is drawn upon, the loan would be payable from future project cash flows and bear interest at the opportunity cost of funds for the OHRF. 2. Ratification of Calendar Year (CY) 10 Tax Credit Partnership Budgets Gail Willison, Chief Financial Officer, and Terri Fowler, Budget Officer, made a brief presentation. In response to Vice Chair Piñero s question, Ms. Fowler explained several of the properties are projecting income and two properties are projecting a loss. The following resolution was adopted upon a motion by Commissioner Cohen and seconded by Commissioner Roman. Affirmative votes were cast by Commissioners Kator, Dreyfuss, Banks, Cohen, Lindstrom and Roman. Chair Pro Tem Piñero was temporarily away and did not participate in the vote. RESOLUTION: RE: Ratification of Calendar Year (CY) 10 Tax Credit Partnership Budgets WHEREAS, the Housing Opportunities Commission of Montgomery County is the General Partner who manages the business and is liable for the debts of 14 Tax Credit Partnerships; and WHEREAS, the limited partners in these 14 Tax Credit Partnerships have contributed money and share in profits, but who take no part in running the business and incur no liability with respect to the partnership beyond their contributions; and WHEREAS, the Tax Credit Partnerships are unique within the Housing Opportunities Commission s property portfolio since they are not HOC entities but managed properties and have no separate Boards; and WHEREAS, since the Housing Opportunities Commission has a financial obligation to cover all debts, it has an interest in the successful performance of these partnerships and as such should review their performances and approve their budgets; and WHEREAS, the budgets were due to the limited partners by November 1, 2009, the Budget, Finance and Audit Committee reviewed and approved the CY 10 Budgets at the October 13, 2009 meeting. NOW, THEREFORE, BE IT RESOLVED by the Housing Opportunities Commission of Montgomery County that it hereby ratifies the CY 10 Operating Budgets for the 14 Tax Credit Partnerships shown on Attachment 1 of this resolution.

9 Minutes 11/04/09 Page 9 of Acceptance of HOC FY 09 Audited Financial Statements, Single Audit Report (A-133), and Management Letter Commissioner Cohen introduced the item and explained that this was an unqualified audit. Gail Willison, Chief Financial Officer, and Cornelia Kent, Controller, explained there were a number of deficiencies found in the certification documentations in the Housing Choice Voucher program and Public Housing program. Chair Kator suggested that future presentations by the auditor may be of interest to the Commission and suggested consideration in holding a worksession for the FY 10 audit. The following resolution was adopted upon a motion by Commissioner Cohen and seconded by Commissioner Roman. Affirmative votes were cast by Commissioners Kator, Piñero, Dreyfuss, Banks, Cohen, Lindstrom and Roman. RESOLUTION: RE: Acceptance of HOC FY 09 Audited Financial Statements, Single Audit Report (A-133), and Management Letter WHEREAS, the independent auditors, Clifton Gunderson, LLP, presented their report for FY 09 to the Budget, Finance and Audit Committee; and WHEREAS, at a meeting held on November 2, 2009, the Budget, Finance and Audit Committee reviewed the FY 09 Audited Financial Statements, Single Audit Report (A-133), and Management Letter and recommended Commission acceptance. NOW, THEREFORE, BE IT RESOLVED by the Housing Opportunities Commission of Montgomery County that the Commission accepts the FY 09 Audited Financial Statements, Single Audit Report (A-133), and Management Letter prepared by Clifton Gunderson, LLP. IV. NEW BUSINESS A. Approval of Revisions to the Housing Choice Voucher Program Administrative Plan to Respond to HUD NOFA for New Family Unification Program Vouchers Joy Flood, Director of Federal Programs, and Lillian Durham, Director of Resident Services, gave an overview of the grant that will allow families to reunify who do not have appropriate housing or families who are trying to avoid having children go into the foster system. The NOFA requires the Administrative Plan to be updated to include additional language in the Special Admissions section. The following resolution was adopted upon a motion by Commissioner Roman and seconded by Commissioner Banks. Affirmative votes were cast by Commissioners Kator, Piñero, Dreyfuss, Banks, Cohen, Lindstrom and Roman.

10 Minutes 11/04/09 Page 10 of 11 RESOLUTION: RE: Approval of Revisions to the Housing Choice Voucher Program Administrative Plan to Respond to HUD NOFA for New Family Unification Program Vouchers WHEREAS, the Housing Opportunities Commission of Montgomery County is responding to a HUD Notice of Funding Availability; and WHEREAS, the HUD applications require HOC revise the Housing Choice Voucher Program Administrative Plan; and WHEREAS, the changes are limited to activity surrounding the Family Unification Program funds. NOW, THEREFORE, BE IT RESOLVED by the Housing Opportunities Commission of Montgomery County that it approves the stated modifications to the Housing Choice Voucher Program Administrative Plan. V. FUTURE ACTION ITEMS Ms. Alston informed the Commission of the following scheduled events: November 16 th and 17 th, Executive Staff Retreat/Strategic Plan November 19 th, Development and Finance Committee November 23 rd, Budget, Finance and Audit Committee December 2 nd, Longevity Awards Reception and Awards Ceremony VI. Briefing The Commission took a brief recess before reconvening. A. Update on U.S. Treasury, Fannie Mae, Freddie Mac and Housing Finance Agency (HFA) Initiative Kayrine Brown, Director of Mortgage Finance, and Vivian Benjamin, Assistant Director of Mortgage Finance, updated the Commission on the recent announcement from the U.S. Treasury to assist housing finance agencies. The Commission was briefed on the New Issue Bond Program (NIBP) and the Temporary Credit and Liquidity Program (TCLP). The NIBP program will allow Fannie Mae and Freddie Mac to buy bonds at a reduced interest rate which makes transactions more doable for multi-family and single family. HOC has requested $55 million for the single family program and $143 million for the multi-family program. HOC has requested $70 million for single family and $120 million for multi-family through TCLP. The U.S. Treasury has not determined the local housing authority s allocation.

11 Minutes 11/04/09 Page 11 of 11 This briefing was for information purposes only. No action is necessary from the Commission at this time. Based upon this report and there being no further business to come before this session of the Commission, a motion was made, seconded and unanimously adopted to adjourn. The meeting adjourned at 6:50 p.m. Respectfully submitted, Annie B. Alston Secretary-Treasurer /meh

12 HOUSING OPPORTUNITIES COMMISSION OF MONTGOMERY COUNTY Detrick Avenue Kensington, Maryland (240) Special Session/Conference Call Minutes November 20, A Special Session of the Housing Opportunities Commission of Montgomery County was conducted on Friday, November 20, 2009 at Detrick Avenue, Kensington, Maryland beginning at 10:05 a.m. Those in attendance were: Present (via teleconference) Michael Kator, Chair Roberto Piñero, Vice Chair Norman Cohen Pam Lindstrom Sally Roman Not Present Norman Dreyfuss, Chair Pro Tem Jean Banks Also Present Annie Alston, Executive Director Ken Tecler, HOC Counsel (via teleconference) Kayrine Brown Gail Willison Vivian Benjamin Tom DeBrine Paulette Kee-Dudley Cornelia Kent Diane Morrison Acting Special Assistant to the Commission Guests None Chair Kator convened the Special Session of the Housing Opportunities Commission at 10:05 p.m. I. Deliberation A. Approval of a New Bond Resolution Providing for the Issuance of Single Family Mortgage Bonds of the Housing Opportunities Commission of Montgomery County

13 Special Session Minutes November 20, 2009 Page 2 of 6 Kayrine Brown, Director of Mortgage Finance explained the US Treasury has announced its program to assist housing finance agencies. There are some benefits to the bond program and an application was placed for liquidity and bond purchase. An allocation of $101 million was received for bond purchase and $191 million for liquidity. Tom DeBrine, Manager of Single Family Programs, explained the new bond resolution would allow HOC to issue single family bonds and take advantage of the Treasury s initiative. The bond resolution provides for the use of bond proceeds for the purchase of mortgage loans insured by FHA, VA or private mortgage insurance and up to 100% loan to value. It does not require additional pool insurance for conventional mortgages. The proposed rating for the 2009 Bond Resolution will be Aa3. Moody s is expected to notify HOC shortly regarding their issuance of the rating. The total funding necessary for this bond resolution will come from the existing 1979 Single Family Bond Resolution. The Commission has authorization and discretion to use excess revenues from the Single Family Program. The following resolution was adopted upon a motion by Commissioner Cohen and seconded by Commissioner Roman. Affirmative votes were cast by Commissioners Kator, Piñero, Cohen, Lindstrom and Roman. Commissioners Dreyfuss and Banks were necessarily absent and did not participate in the vote. RESOLUTION: RE: Approval of a New Bond Resolution Providing for the Issuance of Single Family Mortgage Bonds of the Housing Opportunities Commission of Montgomery County Due to its length, the resolution has not been printed. A copy of the resolution is on file in the office of the Commission. The following resolution was adopted upon a motion by Commissioner Cohen and seconded by Commissioner Lindstrom. Affirmative votes were cast by Commissioners Kator, Piñero, Cohen, Lindstrom and Roman. Commissioners Dreyfuss and Banks were necessarily absent and did not participate in the vote. RESOLUTION: RE: Approval to Transfer Assets from the 1979 Single Family Bond Resolution to the 2009 Single Family Bond Resolution WHEREAS, the Housing Opportunities Commission of Montgomery County has adopted a (new) 2009 Bond Resolution for the Issuance of Single Family Housing Revenue Bonds; and WHEREAS, initial funding for the 2009 Bond Resolution is required to cover expenses for cost of issuance, potential negative arbitrage and provide the requisite level of assets necessary to comply with rating agency requirements; and

14 Special Session Minutes November 20, 2009 Page 3 of 6 WHEREAS, the initial level of funding is estimated at $1.6 million; and WHEREAS, Caine Mitter and Associates, Incorporated, the HOC Financial Advisor, has confirmed that the 1979 Bond Resolution may be used and has the assets to provide the initial funding for the 2009 Bond Resolution. NOW, THEREFORE, BE IT RESOLVED by the Housing Opportunities Commission of Montgomery County that it authorize a transfer of up to $1.6 million from the 1979 Single Family Bond Resolution to the 2009 Single Family Bond Resolution to be effective immediately. The Commission further authorizes the Executive Director or other approved officer of the Commission to execute any documents necessary to affect the transfer. A. Approval of Amendment to the Authorizing Resolution for 2009BCD Single Family Bond Issue (Resolution 09-91) Kayrine Brown, Director of Mortgage Finance, and Tom DeBrine, Manager of Single Family Programs, provided detail of the request to increase the bond issue in Resolution from not to exceed $50 million to not to exceed $105 million. Mr. DeBrine highlighted the three variances from Resolution The original $50 million has not been issued. Ms. Brown explained that a portion of the $105 million would be issued and available for mortgages. The remainder would be issued in escrow as convertible option bonds. During 2010, the bonds would be converted into permanent long term bonds. The second resolution relates to the authority to borrow on the PNC line of credit. Ms. Brown responded to Commissioner Lindstrom s question regarding the various bonds by stating the short and long term bonds will be fixed rate, not floating rate. The following resolution was adopted upon a motion by Commissioner Roman and seconded by Commissioner Cohen. Affirmative votes were cast by Commissioners Kator, Piñero, Cohen, Lindstrom and Roman. Commissioners Dreyfuss and Banks were necessarily absent and did not participate in the vote. RESOLUTION: RE: Approval of Amendment to the Authorizing Resolution for 2009BCD Single Family Bond Issue (Resolution 09-91) WHEREAS, the Housing Opportunities Commission of Montgomery County approved Resolution 09-91, Approval of Authorizing Resolution for 2009BCD Single Family Bond Issue Single Family Program, on September 2, 2009; and WHEREAS, Resolution approved a maximum bond issue size of $50 million to be issued pursuant to the Single Family Bond Resolution adopted on March 29, 1979 and subsequently amended; and WHEREAS, a federal government program known as New Issue Bond Program (NIBP) was announced on October 19, 2009 and which the Commission has deemed to have benefit to the Single Family Program; and

15 Special Session Minutes November 20, 2009 Page 4 of 6 WHEREAS, use of the NIBP causes changes in the 2009BCD Single Family Bond Issue construction originally contemplated by the Authorizing Resolution 09-91; and WHEREAS, the Commission has approved a new Bond Resolution Providing for the Issuance of Single Family Housing Revenue Bonds on November 20, NOW, THEREFORE, BE IT RESOLVED by the Housing Opportunities Commission of Montgomery County that Resolution is amended as follows: 1. The maximum amount of the bond issuance authorization is changed from $50 million to $105 million. 2. The Commission authorizes the Executive Director to select without further Commission approval the issuance of the 2009 Bonds under either or both Single Family Bond Resolutions. 3. The Commission identifies US Bank Corporate Trust Services as trustee for the 2009 Single Family Bond Resolution. The following resolution was adopted upon a motion by Commissioner Cohen and seconded by Vice Chair Piñero. Affirmative votes were cast by Commissioners Kator, Piñero, Cohen, Lindstrom and Roman. Commissioners Dreyfuss and Banks were necessarily absent and did not participate in the vote. RESOLUTION: RE: Authorization to Use Line of Credit to Preserve Remaining Single Family Bonus Cap WHEREAS, the Housing Opportunities Commission of Montgomery County received an allocation of volume cap (known as bonus cap ) pursuant to the Housing and Economic Recovery Act (HERA) of 2008; and WHEREAS, the HERA requires the use of the bonus cap before December 1, 2009; and WHEREAS, $197,936 of bonus cap remains in the former single family draw down bonds, which are owned by the Commission; and WHEREAS, a proposed 2009 Single Family Bond Issue refunding the single family draw down bonds will not be closed prior to December 1, 2009; and WHEREAS, the Commission wishes to use the remainder of the bonus cap for the purchase of qualified mortgage loans; and WHEREAS, Commission Bond Counsel and Financial Advisor have recommended the use of the Commission s line of credit to purchase a qualified mortgage loan which line of credit will be reimbursed from the draw down bonds.

16 Special Session Minutes November 20, 2009 Page 5 of 6 NOW, THEREFORE, BE IT RESOLVED by the Housing Opportunities Commission of Montgomery County that the Executive Director is authorized to approve a loan of $197,936, the Commission s line of credit with PNC Bank, N.A., to purchase a qualified mortgage loan prior to December 1, The loan will be repaid in December 2009 from bond proceeds. B. Approval of Amendment to the Structure for the 2009BC Single Family Bond Issue (Resolution ) Kayrine Brown, Director of Mortgage Finance, made a brief presentation regarding the amendment to the structure of the 2009BC Single Family Bond Issue. Ms. Brown outlined the two options being considered for issuing single family bonds. The decision will be made on which option to use once the US Treasury determines whether these draw down bonds can be used in their program. Ms. Brown and Mr. DeBrine answered questions regarding the two options and mortgage rates. It is anticipated the bond purchasing agreements will be signed on December 9, 2009 and the funding will take place on December 23, HOC Legal Counsel Ken Tecler suggested changes to the resolution for clarification purposes. The following resolution was adopted as revised upon a motion by Commissioner Cohen and seconded by Vice Chair Piñero. Affirmative votes were cast by Commissioners Kator, Piñero, Cohen, Lindstrom and Roman. Commissioners Dreyfuss and Banks were necessarily absent and did not participate in the vote. RESOLUTION: RE: Approval of Amendment to the Structure for the 2009BC Single Family Bond Issue (Resolution ) WHEREAS, one of the goals of the Housing Opportunities Commission of Montgomery County is to provide below market first mortgage financing to first time homebuyers of moderate income in Montgomery County; and WHEREAS, funds from the 2009A Single Family Bond Issue have been fully reserved and the Commission previously authorized the processing of a new single family bond issue for up to $50 million and subsequently increased to $105 million; and WHEREAS, the Housing Opportunities Commission of Montgomery County wishes to participate in the New Issue Bond Program approved by the Treasury Department that would allow the issuance of Single Family Housing Revenue Bonds under a new 2009 Bond Resolution; and WHEREAS, two alternative structures have been presented to the Commission for consideration, both of which serve to achieve the goals of the single family program; and WHEREAS, one of the two options may be more advantageous to the Commission based on the final determination of a few outstanding issues by the US Treasury Department.

17 Special Session Minutes November 20, 2009 Page 6 of 6 NOW, THEREFORE, BE IT RESOLVED by the Housing Opportunities Commission of Montgomery County that Resolution is hereby amended and the Executive Director is authorized to select from the two options presented to the Commission the method that best satisfies the single family program goals within the parameters of the amended Authorizing Resolution. Based upon this report and there being no further business to come before this special session of the Commission, a motion was made, seconded and unanimously adopted to adjourn. The meeting adjourned at 10:55 a.m. Respectfully submitted, /meh Annie B. Alston Secretary-Treasurer

18 HOUSING OPPORTUNITIES COMMISSION OF MONTGOMERY COUNTY Detrick Avenue Kensington, Maryland (240) Minutes December 2, The monthly meeting of the Housing Opportunities Commission of Montgomery County was conducted on Wednesday, December 2, 2009 at Detrick Avenue, Kensington, Maryland beginning at 4:50 p.m. Those in attendance were: Present Michael Kator, Chair Roberto Piñero, Vice Chair Norman Dreyfuss, Chair Pro Tem Jean Banks Norman Cohen Sally Roman Not Present Pamela Lindstrom Also Present Annie Alston HOC Executive Director Ken Tecler HOC General Counsel Kayrine Brown Maryann Dillon Lillian Durham Scott Ewart Joy Flood Les Kaplan Tedi Osias Jerry Robinson Gail Willison Bill Anderson Jim Atwell Vivian Benjamin Patrice Birdsong Tonya Clark Tom DeBrine Terri Fowler Barbara Galloway Matt Husman Cornelia Kent Marion Lay Sharon Marbley Patrick Mattingly Patrick McMahon Guests David Miller Jim Miller Diane Morrison Ninette Patrick John Poyer Charnita Robinson Kisha Webb Eileen Hartnett Special Assistant to the Commission IT Support: Irma Rodriguez O. Dasent Patrick J. Gniadek, Avalon Bay Communities, Inc. Laura Murray Sarah Pretragallo, Ballard Spahr, LLP Roger D. Winston, Ballard Spahr, LLP

19 Minutes 12/02/09 Page 2 of 17 Prior to the convening of the Commission meeting, Longevity Service Awards were presented to the following staff members: Thirty Years Michele Henderson- Scates Twenty-Five Years Milca Acevedo Vivian Benjamin Tocque Peyton Kenneth Thomas Silvia Zaldivar Twenty Years William Anderson Timothy Bess Paul Byrne Dennis James Tonjua Julius Paulette Kee-Dudley Fifteen Years John Cooley Dorothy Douglas Mary Ellison Linh Pham Karen Wang Ten Years Varun Chawla Tonya Clark L. Scott Ewart Joy Flood Isabel Flores Valentine Fontem Nyoka Foster Rita Grotsky Gail Gunod-Green Betty McCollum- Tate Hieu Nguyen Martina Tina Pree Dora Reyes Douglas Ryan John Vass Alexander Zegarra Five Year Timothy Beckett Carolyn Bugnot Melissa Burger Nancy Davachi Peter Desjardins Scott Ellinwood Terri Fowler Donna Jackson Phillip James Cesar Lopez April Long Valeria McGhee Tedi Osias Ninette Patrick Christopher Smith Diane Thomas Ruth Vu Denise Weber Michelle Wright Chair Kator convened the monthly meeting of the Housing Opportunities Commission at 4:50 p.m. The Consent Calendar was approved upon a motion by Commissioner Roman and seconded by Vice Chair Piñero. Affirmative votes were cast by Commissioners Kator, Piñero, Dreyfuss, Banks, Cohen and Roman. Commissioner Lindstrom was necessarily absent and did not participate in the vote. I. CONSENT ITEMS A. Approval of New Lender for the Mortgage Purchase Program The following resolution was approved. RESOLUTION: RE: Approval of New Lender for the Mortgage Purchase Program WHEREAS, the Housing Opportunities Commission of Montgomery County approves lenders to participate in the Mortgage Purchase Program; and WHEREAS, such participation is continuous and for multiple programs; and WHEREAS, the Commission has approved an ongoing process for adding new lenders to the Mortgage Purchase Program; and

20 Minutes 12/02/09 Page 3 of 17 and WHEREAS, NFM, Inc. has applied for participation in the Mortgage Purchase Program; WHEREAS, NFM, Inc. has satisfied the required criteria for admittance to the Mortgage Purchase Program. NOW, THEREFORE, BE IT RESOLVED by the Housing Opportunities Commission of Montgomery County that NFM, Inc. is approved for participation in the Mortgage Purchase Program effective immediately. II. INFORMATION EXCHANGE A. Report of the Executive Director Ms. Alston added the following items to her written report: Ms. Alston acknowledged those who received Longevity Awards and looks forward to working with each of them in the future. The Village at King Farm had its first Workforce Housing Homeownership settlement. Several other units are close to settling as well. The 2009 Series A Single Family Bond Issue was priced on November 30 th and over $22 million in orders were received for the $10 million in bonds. Series B and Series C will be sold to Fannie Mae and Freddie Mac. The total issue will be $65 million. HOC will offer 5% fixed rate mortgages to first time homebuyers. HOC recently received the GFOA Distinguished Budget Presentation award. This is the sixth year HOC has received this award. Ms. Alston thanked Gail Willison and Terri Fowler for their efforts. Last month, Ms. Alston reported on the County Executive s saving plan. It is likely another savings plan will be announced. The County Council elected new officers and Nancy Floreen is the new President of the Council and Valerie Ervin was elected Vice President. B. Commissioner Exchange Commissioner Roman reported she testified on behalf of the Commission on the Housing Element of the General Plan. It was well received by the County Council. Vice Chair Pinero attended the Thanksgiving dinner sponsored by Ruth s Chris Steak House at Waverly House. Also attending were Commissioners Dreyfuss and Banks and HOC staff person Andrew Oxendine. C. Community Forum Roger Winston, an attorney with Ballard Spahr, spoke on behalf of Gables Residential which is the current owner of the Gables Rothbury Square which is under contract with Avalon Bay Communities pursuant to Chapter 53A. HOC has expressed an interest in the property and Gables Residential s goal is to be able to sell the property. There is a firm contract with Avalon Bay which can settle immediately on this property. It has been 2½ months since HOC was provided the ROFR materials and due diligence. It is the Gables Residental s desire to close by March 17, If there is any hesitancy in HOC to purchase this property, Avalon

21 Minutes 12/02/09 Page 4 of 17 Bay is ready to go forward and is willing to keep the same affordability on the property. Mr. Winston explained that the Gables Rothbury Square was built as a condominium. When it is sold to a new buyer, the contract will have a provision in it that states that the Gables Residential will be indemnified if the units were ever to be sold as condominiums. Patrick J. Gniadek, Vice President, Avalon Bay Communities, read a prepared statement regarding the Avalon Bay Communities. Avalon Bay will consider extending the affordability on the 15 units that are set to expire in 2020 for an additional period of 84 years. This would allow all the current 41 affordable units to remain affordable until Avalon Bay has also committed not to convert the property to condominiums for a minimum period of five years. This proposal will allow HOC to commit its resources to other areas of the County where affordable housing does not exist. D. Status Report Integrated Workflow Information Network (IWIN) System Update Briefing (TD-252) Jerry Robinson, Director of Housing Management, reported the new IWIN software affects every functional area of property management. It will improve the accuracy and efficiency of recordkeeping, response time and customer service. A full report will be presented during the January 13, 2010 Commission meeting. Mr. Robinson acknowledged Ninette Patrick and Matt Husman for their work with IWIN. III. COMMITTEE REPORTS and RECOMMENDATIONS FOR ACTION A. Development and Finance Committee Commissioner Piñero 1. Adoption of a Resolution Authorizing the Issuance and Sale of Short-Term Notes to Refinance the MetroPointe Development and Ratifying and Approving the Amendment of the 2008 Bond Financing Plan for the MetroPointe Development to Secure An Additional Two-Year Montgomery County Guarantee of the Short-Term Notes Kayrine Brown, Director of Mortgage Finance, and Vivian Benjamin, Assistant Director of Mortgage Finance, made a brief presentation regarding the approval to amend the financing plan at MetroPointe and proceed with the issuance of short term notes for an additional two years. Previously, the Commission had approved the issuance of long term bonds but the market has not improved enough to proceed. The two year notes will be issued at a 1% rate with an option to terminate in the event that liquidity is available in the market. In response to Commissioner Roman s question, Ms. Brown explained that the FHA insurance is on the mortgages for the tax credit side and the market side. That insurance is in place for the entire term of the mortgage which is 40 years.

22 Minutes 12/02/09 Page 5 of 17 Prior to approval of the resolution, bond counsel was contacted for review of the resolution and to make corrections and edits as necessary. The following resolution was adopted as amended upon a motion by Vice Chair Piñero and seconded by Chair Pro Tem Dreyfuss. Affirmative votes were cast by Commissioners Kator, Piñero, Dreyfuss, Banks, Cohen, and Roman. Commissioner Lindstrom was necessarily absent and did not participate in the vote. RESOLUTION: RE: Adoption of a Resolution Authorizing the Issuance and Sale of Short-Term Notes to Refinance the MetroPointe Development and Ratifying and Approving the Amendment of the 2008 Bond Financing Plan for the MetroPointe Development to Secure An Additional Two-Year Montgomery County Guarantee of the Short-Term Notes Due to its length, the resolution has not been printed. A copy of the resolution is on file in the office of the Commission. 2. Amendment of Resolution to Amend the Designation of Bonds to be Issued in Connection with the Magruder s Discovery Development and Ratifying and Confirming, in all Other Respects, Resolution Kayrine Brown, Director of Mortgage Finance, and Patrick McMahon, Portfolio Manager, explained that, in 2008, the development plan, financing plan and the authorizing resolution were approved for Magruder s Discovery but due to the dislocation in the bond market, it precluded the issuance of the bonds at that time. Ms. Flood, Director of Federal Programs, explained the process for project-based vouchers in the unlikely event the HAP contact was not extended. The bonds were rated based on the HAP contract. The following resolution was adopted upon a motion by Vice Chair Piñero and seconded by Chair Pro Tem Dreyfuss. Affirmative votes were cast by Commissioners Kator, Piñero, Dreyfuss, Banks, Cohen, and Roman. Commissioner Lindstrom was necessarily absent and did not participate in the vote. RESOLUTION: RE: Amendment of Resolution to Amend the Designation of Bonds to be Issued in Connection with the Magruder s Discovery Development and Ratifying and Confirming, in all Other Respects, Resolution 08-99

23 Minutes 12/02/09 Page 6 of 17 Due to its length, the resolution has not been printed. A copy of the resolution is on file in the office of the Commission. 3. Authorization to Amend Development and Financing Plan for Pooks Hill High Rise Maryann Dillon, Director of Real Estate Development, and John Poyer, Housing Acquisition Manager, reviewed the history of the Pooks Hill High Rise development plan. Additional work is required due to the International Existing Building Code. There are also a number of items that staff has identified during the course of the renovation. The recommended sources of funds to cover these additional costs will come from a number of sources including to reallocate savings within the existing Development Plan and through restructuring the replacement reserve. Additionally, the funds for the mortgage were raised through a bond offering with a variable interest rate which to date has been significantly less than the fixed rate. Staff proposes to apply up to $750,000 of the savings in the multiple purpose bond indentures to cover cost overruns. The following resolution was adopted upon a motion by Commissioner Roman and seconded by Vice Chair Piñero. Affirmative votes were cast by Commissioners Kator, Piñero, Dreyfuss, Banks, Cohen, and Roman. Commissioner Lindstrom was necessarily absent and did not participate in the vote. RESOLUTION: RE: Authorization to Amend the Development and Financing Plan for Pooks Hill High Rise WHEREAS, the Housing Opportunities Commission of Montgomery County is the owner of Pooks Hill High Rise, a 189-unit mixed-income apartment building located in Bethesda, Maryland; and WHEREAS, as a result of aging and continuing deterioration, staff developed a two-phase moderate rehabilitation plan which included a scope of work essential to maintaining the building s physical integrity and market competitiveness; and WHEREAS, on June 7, 2006, the Commission adopted a two phase development plan (the Initial Plan ); and WHEREAS, during the first phase of the renovation, staff analyzed and revisited the Initial Plan and made adjustments that enabled more extensive and efficient rehabilitation; and WHEREAS, on February 6, 2008, the Commission adopted a revised development plan (the 2008 Plan ) to reflect the adjustments proposed by the staff during the first phase of renovation; and WHEREAS, on November 24, 2009, HOC s Development and Finance Committee reviewed an amendment to the 2008 Plan to add work required by the adoption of the International Existing Building Code by Montgomery County and to cover the cost of the required work.

24 Minutes 12/02/09 Page 7 of 17 NOW, THEREFORE, BE IT RESOLVED by the Housing Opportunities Commission of Montgomery County that: 1. The amendment to the 2008 Plan for Pooks Hill as described in the attached Memorandum dated December 2, 2009 (the 2009 Plan ) is approved and the Commission shall proceed in an expeditious manner to execute; and 2. The Executive Director is authorized to take any and all actions and to execute any and all documents necessary to carry out the 2009 Plan; and 3. To implement the 2009 Plan, the Executive Director is authorized to reallocate $750,000 from the Commission s Multiple Purpose Bond Indenture and $250,000 from the existing replacement reserve for Pooks Hill to cover the cost of the required work as proposed in the 2009 Plan. 4. Adoption of a Resolution to Decouple the Collateral for Oak Mill II, Canterbury Apartments, Paradise Ridge and Amberton Apartments Kayrine Brown, Director of Mortgage Finance, and Vivian Benjamin, Assistant Director of Mortgage Finance, provided a brief history of the issuance of tax-exempt bonds in 1985 to finance Wynnfield Apartments (now Canterbury) and a separate issuance to finance the Oak Mill II Apartments. The owners of the developments (limited partnerships formed by The Artery Group) declared bankruptcy. The bonds on two other bankrupt multifamily housing projects, Paradise Ridge and Amberton Apartments, were cross-collateralized with Canterbury and Oak Mill II. Staff has visited Canterbury Apartments and Oak Mill II and agrees that each property is in reasonable physical condition, is operationally strong and is estimated to have substantial equity to support the outstanding bonds. The following resolution was adopted upon a motion by Chair Pro Tem Dreyfuss and seconded by Commissioner Roman. Affirmative votes were cast by Commissioners Kator, Piñero, Dreyfuss, Banks, Cohen, and Roman. Commissioner Lindstrom was necessarily absent and did not participate in the vote. RESOLUTION: RE: Adoption of a Resolution to Decouple the Collateral for Oak Mill II, Canterbury Apartments, Paradise Ridge and Amberton Apartments Due to its length, the resolution has not been printed. A copy of the resolution is on file in the office of the Commission.