HOUSTON HOUSING AUTHORITY BOARD OF COMMISSIONERS MEETING

Transcription

1 Transforming Lives & Communities HOUSTON HOUSING AUTHORITY BOARD OF COMMISSIONERS MEETING AUGUST 28, 2018 KELLY VILLAGE 3118 GREEN HOUSTON, TEXAS 77020

2 2640 Fountain View Drive, Houston, Texas Phone Tory Gunsolley, President & CEO Board of Commissioners: LaRence Snowden, Chair Phillis Wilson, Vice Chair Shondra E. Wygal Tim Horan David Enrique Ruiz Kristy Kirkendoll BOARD OF COMMISSIONERS MEETING Tuesday, August 28, 2018 TABLE OF CONTENTS AGENDA 2 July 17, 2018 BOARD MEETING MINUTES 3 August 2, 2018 BOARD MEETING MINUTES 8 COMMENTS AND RESPONSES 9 NEW BUSINESS Resolution 2982 Authorizing the Development of The Standard in the Heights Apartments 11 Resolution No Authorizing the Development of The Milano Apartments 17 BOARD REPORT 23 FINANCE REPORT 38 HHA CALENDAR OF EVENTS 40

3 2640 Fountain View Drive, Houston, Texas Phone Tory Gunsolley, President & CEO Board of Commissioners: LaRence Snowden, Chair Phillis Wilson, Vice Chair Tim Horan Shondra E. Wygal David Enrique Ruiz Kristy Kirkendoll BOARD OF COMMISSIONERS MEETING TUESDAY, AUGUST AGENDA 28, 2018 AT 3:00 P.M. KELLY VILLAGE 3118 GREEN, HOUSTON, TEXAS AGENDA I. Call to Order II. III. IV. Roll Call Approval of the July 17, 2018 Houston Housing Authority Board Meeting Minutes Approval of the August 2, 2018 Houston Housing Authority Special Board Meeting Minutes V. President s Report VI. New Business a. Authorizing the Development of The Standard in the Heights Apartments (Resolution No. 2982) b. Authorizing the Development of The Milano Apartments (Resolution No. 2983) VII. Executive Session Convene an Executive Session to discuss: a. Personnel matters in accordance with Section of the Texas Government Code b. Legal issues in accordance with Section of the Texas Government Code c. Real estate matters in accordance with Section of the Texas Government Code VIII. IX. Reconvene Public Session Adjournment 3

4 2640 Fountain View Drive Houston, Texas P TTY MINUTES OF THE HOUSTON HOUSING AUTHORITY BOARD OF COMMISSIONERS MEETING TUESDAY, JULY 17, 2018 A meeting of the Board of Commissioners ( Board ) of the Houston Housing Authority ( HHA ) was held on Tuesday, July 17, 2018, at the Houston Housing Authority Central Office, 2640 Fountain View Drive, Houston, Texas Chair Snowden called the meeting to order at 3:01 p.m. and offered the use of an interpreter or translator to any in attendance. Secretary Gunsolley called roll and declared a quorum present. Present: LaRence Snowden, Chair Phillis Wilson, Vice Chair Tim Horan, Commissioner Shondra E. Wygal, Commissioner David Enrique Ruiz, Commissioner Kristy Kirkendoll, Commissioner (arrived during the President s Report) Tory Gunsolley, Secretary Absent: APPROVAL OF MINUTES Chair Snowden called for discussion or approval of the July 17, 2018, Board of Commissioners meeting minutes. Commissioner Wygal moved to adopt the July 17, 2018, Board of Commissioners meeting minutes. Vice Chair Wilson seconded the motion. The minutes passed unanimously. PRESIDENT S REPORT Secretary Gunsolley stated HHA is in the Annual Plan season and the Public Comment period will start on July 23 rd and close on September 5 th, and hopefully, we will have Board approval on September 18 th and then submit to HUD prior to the October deadline. There will be a number of changes to the Admission and Continued Occupancy Plan (ACOP) and a few changes to the Administrative Plan. He has given the Board a two-page preview of what those changes are and he encourages the Board to take a look at it, but he plans to make the full Annual Plan available to them and then we will enter into the Public Comment period to be able to talk about these changes over the coming months. Secretary Gunsolley shared that in the Board Report, he is pleased to say that it looks like, outside of one main indicator which is turnaround time, HHA is returning to normal operations post- Hurricane Harvey. Chair Snowden asked Secretary Gunsolley to explain why this is the case. Secretary Gunsolley explained that rent collection is currently at 100% YTD and occupancy is at 98%. So, those are coming back to the way they were prior to Hurricane Harvey at high performance and this is what we had always expected. He indicated turnaround time is lagging because the units that were offline for a long time were related to Hurricane Harvey

5 and so, these units counted against us. He indicated that we had a unit down for six months and then, we leased it back up again, but that turnaround time was 180 days and so, it takes a while to bring that average down with routine turns. But, we will continue to see that number go down. However, HHA has a waiver so we will not be scored this year, but it s trending in the right direction. Lastly, Secretary Gunsolley stated HHA is looking forward to applying for some additional vouchers next week for the Family Unification Program. We are hoping to see some positive results to be able to serve those residents. Commissioner Kirkendoll arrives. Secretary Gunsolley stated that this concludes his President s Report. Chair Snowden asked for any questions, concerns or comments regarding the President s Report. Chair Snowden stated on the emergency work orders, he saw a lot of N/As. He asked if there is a specific reason for this. Secretary Gunsolley responded this means that there weren t any emergency work orders by the HUD definition of what an emergency work order is and so most of the time, we won t have properties that have emergency work orders. Chair Snowden inquired, so if there are no emergency work orders, the property wouldn t get an A, but it gets an NA. Secretary Gunsolley replied that the property would get an A in the category because it s relatively the same. Commissioner Horan asked what is the significance of scoring and what do we get for it? Secretary Gunsolley replied, not a whole lot. He explained there are some grants that we get points for being a High Performer or it s a requisite criterion that we can only apply for if we are high performing. He explained, for instance, the Moving To Work Program has this as criteria. The negative of that is if you are in troubled status, it comes with all types of HUD oversight and they actually remove the Board of Commissioners and make all sorts of changes. So, we want to make sure that we never get into that territory, but in the day to day operations standpoint, the scoring doesn t have a lot of impacts. PUBLIC COMMENTS Ms. Blanca Leal, of Irvinton Village, apartment # 529, addressed the Board with concerns about the property manager at Irvinton Village being rude to her, work orders not being done or done right and the wrong date on the Board meeting posting. Ms. Leal complained the manager is behaving in a rude manner towards her. She said she asked the manager for a work order, the manager first refused to give it to her, but then later told her to do it on whatever piece of paper she wanted to. So, Ms. Leal said she completed the work order on the Spanish form, but the manager did not accept it and asked her to do it in English. Ms. Leal continued, stating that she asked the manager for an exterior screen for her bathroom window and the manager was supposed to install it but did not. And now, the manager doesn t want to give her the screen. She said the manager told her why she should have the privilege of having a screen when other tenants do not have this issue. Ms. Leal said that she had only asked for the screen as a favor. Ms. Leal said if she asks the manager to do something else, for example, the sink is stopped up, she would never do it or her staff would not do a proper job. So, she would have to go back and fill out another work order when they never finished the job. Ms. Leal also complained that on July 11 th, she asked to get a copy of this month s board meeting and that copy indicated that the meeting was held on July 1 st. She stated this is why she is here today because she sees a lot of things that don t suppose to be happening. Ms. Leal remarked that she doesn t know if the manager understands that she is being rude and it s not fair to her.

6 Lastly, Ms. Leal complained that she asked for new kitchen cabinets because her cabinets have never been replaced since she has moved into the apartment. She said the cabinets need to be replaced because they are loose and destroyed. There is always a lot of dirt behind the cabinets, a lot of roach droppings and there are a lot of spiders in her apartment that she can t get rid of even after she cleans. Chair Snowden thanked Ms. Leal for coming and speaking today. He stated staff will follow up with Irvinton Village on her concerns. OLD BUSINESS Resolution No Awarding of Contracts for Property Management Services Secretary Gunsolley stated this resolution is to award property management services contracts to Orion Real Estate, J- Allen Management and The Lynd Company. He indicated HHA posted the RFP, evaluated the firms who applied and came to the Board before with a set of recommendations, but there was some concern by the Board about why we were making changes so staff went back and re-evaluated whether now is the right time to make extra changes to our portfolio assignments to the property management companies. Because the companies met the threshold amount, we were able to award the properties in any manner that we chose, but decided, given all of what s going on with all of the post- Hurricane Harvey effort, it made sense to keep the consistency of the day-to-day management of these sites. Secretary Gunsolley stated it is recommended that HHA keeps the same property management companies at the same properties as it is today. Chair Snowden asked for any questions, concerns or comments regarding Resolution No Vice Chair Wilson asked if these are year-to-year contracts. Secretary Gunsolley replied that it s a one-year agreement with up to four, one-year extensions. He said all of the contracts have a convenience clause for terminations. So, management companies can be terminated if HHA decides at any point in time. Commissioner Ruiz asked if the 30-day convenience clause is for the HHA or does it also applies for the management company. Secretary Gunsolley replied that it applies both ways. Chair Snowden asked for any other questions, concerns or comments regarding Resolution No Chair Snowden asked for a motion to approve Resolution No Commissioner Horan moved to approve Resolution No Commissioner Wygal seconded the motion. Resolution No passed unanimously. NEW BUSINESS Resolution No Write-offs for the Period of April 1, 2018 to June 30, 2018 Secretary Gunsolley stated this resolution authorizes the HHA to write-off vacated tenant accounts in the amount of $74, This is the routine write-offs that HHA does every quarter and looking back over the last six quarters, this amount is the lowest write-off that we have had since last year. Chair Snowden asked for any questions, concerns or comments regarding Resolution No Chair Snowden asked for a motion to approve Resolution No

7 Commissioner Ruiz moved to approve Resolution No Vice Chair Wilson seconded the motion. Resolution No passed unanimously. Resolution No Award Contract to EJP Consulting for Development Consulting Services Secretary Gunsolley stated that the HHA wants additional assistance related to our development efforts. There are a number of things that HHA might do, but if we tried to do all of them, HHA doesn t have the staff to be able to accomplish this work. He indicated that an unknown factor is how much we may get in Community Development Block Grant Disaster Recovery (CDBG-DR) money and what our development plans will be. So, we thought it would be prudent to get a development consultant on board to be able to have and be charged with doing the different tasks. Some examples would be pursuing the Low Income Housing Tax Credit (LIHTC) Program with 9% applications or 4% applications, helping with the CDBG-DR Program or CDBG HOME funds from the City and if we decide to move forward with more RAD applications, the consultant would also be able to assist us with that. And this would be an extra piece in both new construction, rehabilitation or acquisition and help HHA with all facets of putting deals together. Secretary Gunsolley continued, stating HHA published a Request for Proposal (RFP) in April 2018 and four (4) firms responded with EJP Consulting scoring the highest and also having the lowest cost. He indicated that EJP Consulting is not a Minority Business Enterprise (MBE), but they are partnering with Bryant Enterprises, who is a local MBE firm. We are recommending a not to exceed amount of $400,000 annually to be able to use them as a consultant. Chair Snowden asked for any questions, concerns or comments regarding Resolution No Commissioner Ruiz asked, in regards to the not to exceed amount of $400,000 annually, how EJP Consulting would get reimbursed or paid. He asked if it would be hourly. Secretary Gunsolley responded that EJP Consulting has hourly rates for every position at their firm so they bill and it s laid out in their proposal. Chair Snowden remarked he doesn t want to see this get out of hand. He asked, how would we know when a project comes up that EJP Consulting would be used or if they need to be used? He asked, who would be in charge of making that decision. Secretary Gunsolley replied that the recommendations would come from the Real Estate and Investment Department (REID) which is Peter Clark, HHA s VP of REID, to him, and he would be making those decisions, but certainly having conversations with the Board going forward about redevelopment opportunities and whether to pursue those opportunities or not. Chair Snowden remarked he just wants to be comfortable with structuring these deals. He further asked if this is a twoyear term, with a two- year option to renew the contract. Secretary Gunsolley replied in the affirmative. Chair Snowden asked for any questions, concerns or comments regarding Resolution No Chair Snowden asked for a motion to approve Resolution No Commissioner Ruiz moved to approve Resolution No Commissioner Horan seconded the motion. Resolution No passed unanimously. EXECUTIVE SESSION

8 Chair Snowden suspended the Public session on July 17, 2018, at 3:24 p.m. to convene into Executive Session to discuss personnel, legal and real estate issues in accordance with Sections , and respectively, of the Texas Government Code. PUBLIC SESSION RECONVENED Chair Snowden reconvened Public Session at 4:08 p.m. ADJOURNMENT Chair Snowden asked for a motion to adjourn the meeting. Commissioner Wygal moved to adjourn. Vice Chair Wilson seconded. The meeting adjourned at 4:08 p.m.

9 2640 Fountain View Drive Houston, Texas P TTY MINUTES OF THE HOUSTON HOUSING AUTHORITY SPECIAL BOARD OF COMMISSIONERS MEETING TUESDAY, AUGUST 2, 2018 A Special meeting of the Board of Commissioners ( Board ) of the Houston Housing Authority ( HHA ) was held on Tuesday, August 2, 2018, at the Houston Housing Authority Central Office, 2640 Fountain View Drive, Houston, Texas Vice Chair Wilson called the meeting to order at 10:15 a.m. Secretary Gunsolley called roll and declared that a quorum is not present, but training will only be provided to the Board members in attendance today. Present: Absent: Phillis Wilson, Vice Chair Kristy Kirkendoll, Commissioner David Enrique Ruiz, Commissioner Tory Gunsolley, Secretary LaRence Snowden, Chair Tim Horan, Commissioner Shondra E. Wygal, Commissioner RENTAL ASSISTANCE DEMONSTRATION (RAD) PROGRAM TRAINING Barry Palmer, of Coats Rose, P.C., provided training to the Board on the background and operational requirements of the Rental Assistance Demonstration (RAD) Program. A thorough discussion, along with questions and answers (Q&A), was held amongst the Commissioners, Secretary Gunsolley and Mr. Palmer. ADJOURNMENT Vice Chair Wilson asked for a motion to adjourn the meeting. Commissioner Ruiz moved to adjourn. Commissioner Kirkendoll seconded. The meeting adjourned at 11:25 a.m.

10 2640 Fountain View Drive Houston, Texas P TTY RESPONSES TO COMMENTS RECEIVED AT THE TUESDAY, JULY 17, 2018 BOARD OF COMMISSIONER MEETING A Meeting of the Board of Commissioners ( Board ) of the Houston Housing Authority ( HHA ) was held on Tuesday, July 17, 2018, at HHA s Central Office, 2640 Fountain View Drive, Houston, Texas The Board received comments during the public comment period; HHA s responses to each comment are detailed below: C = Comments Received R= HHA Response PUBLIC COMMENTS C: Ms. Blanca Leal, of Irvinton Village, apartment # 529, addressed the Board with concerns about the property manager at Irvinton Village being rude to her, work orders not being done or done right and the wrong date on the Board meeting posting. Ms. Leal complained the manager is behaving in a rude manner towards her. She said she asked the manager for a work order, the manager first refused to give it to her, but then later told her to do it on whatever piece of paper she wanted to. So, Ms. Leal said she completed the work order on the Spanish form, but the manager did not accept it and asked her to do it in English. Ms. Leal continued, stating that she asked the manager for an exterior screen for her bathroom window and the manager was supposed to install it but did not. And now, the manager doesn t want to give her the screen. She said the manager told her why she should have the privilege of having a screen when other tenants do not have this issue. Ms. Leal said that she had only asked for the screen as a favor. Ms. Leal said if she asks the manager to do something else, for example, the sink is stopped up, she would never do it or her staff would not do a proper job. So, she would have to go back and fill out another work order when they never finished the job. Ms. Leal also complained that on July 11 th, she asked to get a copy of this month s board meeting and that copy indicated that the meeting was held on July 1 st. She stated this is why she is here today because she sees a lot of things that don t suppose to be happening. Ms. Leal remarked that she doesn t know if the manager understands that she is being rude and it s not fair to her. Lastly, Ms. Leal complained that she asked for new kitchen cabinets because her cabinets have never been replaced since she has moved into the apartment. She said the cabinets need to be replaced because they are loose and destroyed. There is always a lot of dirt behind the cabinets, a lot of roach droppings and there are a lot of spiders in her apartment that she can t get rid of even after she cleans. R: Public Housing Operations have consulted J-Allen Management regarding complaints presented by Ms. Blanca Leal and the finding are indicated below: 1) Manager is behaving in a rude manner. The office staff has frequent contact with Ms. Leal when she visits the office. She is treated with respect and professional at all times. However when management enforces the lease and/or declines a request, Ms. Leal perceives their actions as rude and uncooperative. Ms. Leal is treated with the highest respect that is demonstrated to all other tenants, visitors and stakeholders. A Fair Housing and Equal Employment Opportunity Agency. For assistance: Individuals with disabilities may contact the 504/ADA Administrator at , TTY or 504ADA@housingforhouston.com

11 2) Work Orders are not being done and/or not being completed correctly Works orders submitted to the office are recorded and entered in the system for processing. All requests received from Ms. Leal were completed in a timely manner. 3) Wrong Date for the Board Meeting was provided by the office staff On 7/12/18, Ms. Leal requested Management to provide information for HHA s July Board Meeting. The Assistant Manager provided her with a copy of the meeting notice provided by the HHA. Unfortunately, the English version had the correct date while the Spanish version had an incorrect date. This error was an oversight by the HHA and not the site staff. This was merely a clerical error and no deliberately intention to provide Ms. Leal with incorrect information regarding the HHA s Board of Commissioner Meetings. 4) Manager has not honored a request for new screens Management received Ms. Leals request for an exterior screen on the bathroom window. She was informed that since the window was frosted, exterior screens were not installed in the unit. Exterior screens were on units, whose bathroom windows were not frosted. This decision as established by the HHA during the site s last renovation. Ms. Leal continued reporting her dissatisfaction with Management s denial to install an exterior screen. As a compromise, Management offered to install a mini-blind in the bathroom. Currently, Management is seeking to locate the correct size mini-blind for the window. 5) Manager would not have her sink unstopped Work Order (#747511) for a clogged drain was created on 6/29/18 when Ms. Leal submitted a work order. The work order was open and closed on the same day. Ms. Leal has not reported any further concerns or issues with the sink. 6) Asked Management for new kitchen cabinets, and not response. Ms. Leal asked Management to install new cabinets because they were damaged and old. Management and Maintenance evaluated the cabinets and could not identify any damages to justify replacing the cabinets. Ms. Leal continue expressing dissatisfaction with cabinets. Management contacted the Reginal Supervisor who inspected the cabinets and arrived at the same conclusion, presented by her staff. Ms. Leal continue expressing dissatisfaction with cabinets resulting in Management contacting a third-party. A cabinet installer inspected the cabinets and was also unable to identify any deficiencies to warrant replacement. Ms. Leal was informed the kitchen cabinets will not be replaced. No other units, at Irvinton, have had the kitchen cabinets replaced.

12 Resolution No REQUEST FOR BOARD AGENDA ITEM 1. Brief Description of Proposed Item Transforming Lives & Communities Authorizing the Development of The Standard in the Heights Apartments 2. Date of Board Meeting: August 28, Proposed Board Resolution: Resolution: Authorizing the Houston Housing Authority (the Authority ) to take such actions as necessary or convenient to facilitate the development of The Standard in the Heights Apartments (the Project ) pursuant to the memorandum from Tory Gunsolley, President & CEO dated August 14, All Backup attached? X Yes No If no, what is missing and when will it be submitted: 5. Department Head Approval Signature Date: 6. Statement regarding availability of funds by VP of Fiscal Operations Funds Budgeted and Available X Yes No Source Third Party Financing Account # VP of FO Approval Signature Date: 7. Approval of President & CEO Signature Date:

13 Resolution No Transforming Lives & Communities MEMORANDUM TO: HOUSTON HOUSING AUTHORITY BOARD OF COMMISSIONERS FROM: TORY GUNSOLLEY, PRESIDENT & CEO SUBJECT: AUTHORIZING THE DEVELOPMENT OF THE STANDARD IN THE HEIGHTS APARTMENTS DATE: AUGUST 14, 2018 This memorandum recommends that the Houston Housing Authority Board of Commissioners, authorizes the President & CEO to take such actions necessary or convenient to facilitate the development of The Standard in the Heights Apartments. This resolution is accompanied by a formal resolution drafted by Counsel Representing HHA which states substantially the following. BACKGROUND The Authority has created Lakeside Place PFC ( PFC ) to assist in the development of certain multifamily housing developments such as the Project. The Authority desires for the PFC to purchase the site on which the Project will be built (the Land ). The PFC and Standard in the Heights, LP (the Partnership ) will enter into a ground lease (the "Ground Lease") granting site control of the Land to the Partnership. The terms of the Ground Lease, the Partnership is required to develop the Project in a manner so that 51% of the units are made available for rental to persons of low and moderate income. The Partnership will obtain a loan in the approximate amount of $40,000,000 ( Mortgage Loan ) from Hancock Whitney Bank ( Lender ) to finance the Project and, in connection with the making of the Mortgage Loan, Lender will require PFC to join in the execution of documents evidencing and/or securing the Mortgage Loan (collectively, the Loan Documents ). APPROVALS The Chief Executive Officer of the Authority and/or his designee is hereby authorized to review, approve and execute all certificates, affidavits, agreements, documents and other writings (collectively the "Agreements") the Chief Executive Officer shall deem to be necessary or desirable in the consummation of the transactions herein contemplated. All acts, transactions, or agreements undertaken prior hereto by the Chief Executive Officer of the Authority or his designee, in connection with the foregoing matters are hereby ratified and confirmed as the valid actions of the Authority, effective as of the date such actions were taken. The Chief Executive Officer is hereby authorized and directed for and on behalf of, and as the act and deed of the Authority, to take such further action in the consummation of the transactions herein contemplated and to do any and all other acts and things necessary or proper in furtherance thereof, as the Chief Executive Officer shall deem to be necessary or desirable, and all acts heretofore taken by the designee of the Chief Executive Officer to such end are hereby expressly ratified and confirmed as the acts and deeds of the Authority.

14 Resolution No RECOMMENDATION Accordingly, I recommend that the Board approves the attached formal resolution and the following: Resolution: Authorizing the Houston Housing Authority (the Authority ) to take such actions as necessary or convenient to facilitate the development of The Standard in the Heights Apartments (the Project ) pursuant to the memorandum from Tory Gunsolley, President & CEO dated August 14, 2018.

15 RESOLUTION NO RESOLUTION AUTHORIZING THE HOUSTON HOUSING AUTHORITY (THE "AUTHORITY") TO TAKE SUCH ACTIONS NECESSARY OR CONVENIENT TO FACILITATE THE DEVELOPMENT OF THE STANDARD IN THE HEIGHTS APARTMENTS (THE "PROJECT") WHEREAS, the Authority has created Lakeside Place PFC ( PFC ) to assist in the development of certain multifamily housing developments such as the Project; WHEREAS, the Authority desires for the PFC to purchase the site on which the Project will be built (the Land ); WHEREAS, the PFC and Standard in the Heights, LP (the Partnership ) will enter into a ground lease (the "Ground Lease") granting site control of the Land to the Partnership; WHEREAS, pursuant to the terms of the Ground Lease, the Partnership is required to develop the Project in a manner so that 51% of the units are made available for rental to persons of low and moderate income; WHEREAS, the Partnership will obtain a loan in the approximate amount of $40,000,000 ( Mortgage Loan ) from Hancock Whitney Bank ( Lender ) to finance the Project and, in connection with the making of the Mortgage Loan, Lender will require PFC to join in the execution of documents evidencing and/or securing the Mortgage Loan (collectively, the Loan Documents ); NOW, THEREFORE, in connection with the foregoing, the Board of Commissioners hereby adopts the following resolutions: BE IT RESOLVED, that the Chief Executive Officer of the Authority and/or his designee is hereby authorized to review, approve and execute all certificates, affidavits, agreements, documents and other writings (collectively the "Agreements") the Chief Executive Officer shall deem to be necessary or desirable in the consummation of the transactions herein contemplated; BE IT FURTHER RESOLVED, that all acts, transactions, or agreements undertaken prior hereto by the Chief Executive Officer of the Authority or his designee, in connection with the foregoing matters are hereby ratified and confirmed as the valid actions of the Authority, effective as of the date such actions were taken; and BE IT FURTHER RESOLVED, that the Chief Executive Officer is hereby authorized and directed for and on behalf of, and as the act and deed of the Authority, to take such further action in the consummation of the transactions herein contemplated and to do any and all other acts and things necessary or proper in furtherance thereof, as the Chief Executive Officer shall deem to be necessary or desirable, and all acts heretofore taken by the designee of the Chief Executive Officer to such end are hereby expressly ratified and confirmed as the acts and deeds of the Authority v1 1

16 This resolution shall be in full force and effect from and upon its adoption. [Remainder of page intentionally left blank for signature] v1 2

17 PASSED this day of August, ATTEST: CHAIR Secretary v1 3

18 Resolution No REQUEST FOR BOARD AGENDA ITEM 1. Brief Description of Proposed Item Transforming Lives & Communities Authorizing the Development of The Milano Apartments 2. Date of Board Meeting: August 28, Proposed Board Resolution: Resolution: Authorizing the Houston Housing Authority (the Authority ) to take such actions as necessary or convenient to facilitate the redevelopment of The Milano Apartments (the Project ) pursuant to the memorandum from Tory Gunsolley, President & CEO dated August 14, All Backup attached? X Yes No If no, what is missing and when will it be submitted: 5. Department Head Approval Signature Date: 6. Statement regarding availability of funds by VP of Fiscal Operations Funds Budgeted and Available X Yes No Source Third Party Financing Account # VP of FO Approval Signature Date: 7. Approval of President & CEO Signature Date:

19 Resolution No Transforming Lives & Communities MEMORANDUM TO: HOUSTON HOUSING AUTHORITY BOARD OF COMMISSIONERS FROM: TORY GUNSOLLEY, PRESIDENT & CEO SUBJECT: AUTHORIZING THE REDEVELOPMENT OF THE MILANO APARTMENTS DATE: AUGUST 14, 2018 This memorandum recommends that the Houston Housing Authority Board of Commissioners, authorizes the President & CEO to take such actions necessary or convenient to facilitate the redevelopment of The Milano Apartments. This resolution is accompanied by a formal resolution drafted by Counsel Representing HHA which states substantially the following. BACKGROUND The Authority has created Lakeside Place PFC ( PFC ) to assist in the development of certain multifamily housing developments such as the Project. The Authority desires for the PFC to purchase the Project and the site containing the Project (the Land ). The PFC and 2500 Woodland Park Tenant, LP (the Partnership ) will enter into a ground lease (the "Ground Lease") granting site control of the Land to the Partnership. The terms of the Ground Lease, the Partnership is required to develop the Project in a manner so that 51% of the units are made available for rental to persons of low and moderate income. The Partnership will obtain a loan in the approximate amount of $37,000,000 ( Mortgage Loan ) from Capital One, National Association ( Lender ) to finance the Project and, in connection with the making of the Mortgage Loan, Lender will require PFC to join in the execution of documents evidencing and/or securing the Mortgage Loan (collectively, the Loan Documents ). APPROVALS The Chief Executive Officer of the Authority and/or his designee is hereby authorized to review, approve and execute all certificates, affidavits, agreements, documents and other writings (collectively the "Agreements") the Chief Executive Officer shall deem to be necessary or desirable in the consummation of the transactions herein contemplated. All acts, transactions, or agreements undertaken prior hereto by the Chief Executive Officer of the Authority or his designee, in connection with the foregoing matters are hereby ratified and confirmed as the valid actions of the Authority, effective as of the date such actions were taken. The Chief Executive Officer is hereby authorized and directed for and on behalf of, and as the act and deed of the Authority, to take such further action in the consummation of the transactions herein contemplated and to do any and all other acts and things necessary or proper in furtherance thereof, as the Chief Executive Officer shall deem to be necessary or desirable, and all acts heretofore taken by the designee of the Chief Executive Officer to such end are hereby expressly ratified and confirmed as the acts and deeds of the Authority.

20 Resolution No RECOMMENDATION Accordingly, I recommend that the Board approve the attached formal resolution and the following: Resolution: Authorizing the Houston Housing Authority (the Authority ) to take such actions as necessary or convenient to facilitate the redevelopment of The Milano Apartments (the Project ) pursuant to the memorandum from Tory Gunsolley, President & CEO dated August 14, 2018.

21 RESOLUTION NO RESOLUTION AUTHORIZING THE HOUSTON HOUSING AUTHORITY (THE "AUTHORITY") TO TAKE SUCH ACTIONS NECESSARY OR CONVENIENT TO FACILITATE THE REDEVELOPMENT OF THE MILANO APARTMENTS (THE "PROJECT") WHEREAS, the Authority has created Lakeside Place PFC ( PFC ) to assist in the development of certain multifamily housing developments such as the Project; WHEREAS, the Authority desires for the PFC to purchase the Project and the site containing the Project (the Land ); WHEREAS, the PFC and 2500 Woodland Park Tenant, LP (the Partnership ) will enter into a ground lease (the "Ground Lease") granting site control of the Land to the Partnership; WHEREAS, pursuant to the terms of the Ground Lease, the Partnership is required to develop the Project in a manner so that 51% of the units are made available for rental to persons of low and moderate income; WHEREAS, the Partnership will obtain a loan in the approximate amount of $37,000,000 ( Mortgage Loan ) from Capital One, National Association ( Lender ) to finance the Project and, in connection with the making of the Mortgage Loan, Lender will require PFC to join in the execution of documents evidencing and/or securing the Mortgage Loan (collectively, the Loan Documents ); NOW, THEREFORE, in connection with the foregoing, the Board of Commissioners hereby adopts the following resolutions: BE IT RESOLVED, that the Chief Executive Officer of the Authority and/or his designee is hereby authorized to review, approve and execute all certificates, affidavits, agreements, documents and other writings (collectively the "Agreements") the Chief Executive Officer shall deem to be necessary or desirable in the consummation of the transactions herein contemplated; BE IT FURTHER RESOLVED, that all acts, transactions, or agreements undertaken prior hereto by the Chief Executive Officer of the Authority or his designee, in connection with the foregoing matters are hereby ratified and confirmed as the valid actions of the Authority, effective as of the date such actions were taken; and BE IT FURTHER RESOLVED, that the Chief Executive Officer is hereby authorized and directed for and on behalf of, and as the act and deed of the Authority, to take such further action in the consummation of the transactions herein contemplated and to do any and all other acts and things necessary or proper in furtherance thereof, as the Chief Executive Officer shall deem to be necessary or desirable, and all acts heretofore taken by the designee of the Chief Executive Officer to such end are hereby expressly ratified and confirmed as the acts and deeds of the Authority v1 1

22 This resolution shall be in full force and effect from and upon its adoption. [Remainder of page intentionally left blank for signature] v1 2

23 PASSED this day of August, ATTEST: CHAIR Secretary v1 3

24 BOARD REPORT FOR MONTH ENDING JULY 31, 2018 I. Executive Summary II. III. IV. Low Income Public Housing Housing Choice Voucher Program...33 Real Estate, Investment and Development...34 V. Addendum: Open Solicitation Log VI. VII. Addendum: Periodic...37 Addendum: Operating Statements...38

25 EXECUTIVE SUMMARY LOW-INCOME PUBLIC HOUSING The Low-Income Public Housing (LIPH) program had an adjusted vacancy rate of 1.9% on July 31, As of August 1, 2018, rent collection for July was 100.4% of rents billed on an adjusted cash accounting basis. There are currently 107,135 active applications for the public housing waiting list, which represents an increase of 8.8% in the last month. Low-Income Public Housing May June July Waiting Lists 91,576 98, ,135 Vacancy Rate 2.4% 2.2% 1.9% Rent Collection 99.0% 98.3% 100.4% Unit Turnaround Time (Days) Avg. Non-Emergency Work Order Days HOUSING CHOICE VOUCHER PROGRAM The HCV staff completed 1,603 annual re-examinations during July. The HCV department also completed 653 interims, 191 change of units (moves), 116 new admissions, and 28 portability move-in transactions. On July 31, 2018, 535 families were enrolled in the Family Self Sufficiency (FSS) program; 238 of the 441 (44%) families eligible for escrow currently have a FSS escrow balance. The PIH Information Center (PIC) reporting rate for the one-month period ending July 31, 2018 was 100.0%. Voucher Programs (Excluding DHAP) May June July Households 18,197 18,207 18,204 ABA Utilization/Unit Utilization 91.9%/99.4% 92.1%/98.9% 92.4%/98.8% Reporting Rate 100% 100% 100% Annual Reexaminations Completed 1,501 1,418 1,603 HQS Inspections 2,598 2,672 1,939 Waiting List 27,951 27,951 27,951

26 PMC PROPERTY MANAGEMENT SUMMARY Vacancy Unit Turnaround Time (YTD) May June July May June July % Grade % Grade % Grade Days Grade Days Grade Days Grade Orion 2.3 B 2.6 B 2.3 B 77.7 F 72.7 F 67 F Lynd 3.7 C 0.6 A 4.8 D 57.5 F 50.9 E 53 F J. Allen 2.5 B 1.8 A 0.7 A 46.6 E 48.5 F 47.9 E PMC Emergency Work Orders (Completed within 24 hours) Routine Work Orders May June July May June July % Grade % Grade % Grade Days Grade Days Grade Days Grade Orion 100 A 100 A 100 A 1.5 A 2.3 A 1.9 A Lynd 100 A 100 A 100 A 5.1 A 1.5 A 1.0 A J. Allen 100 A 100 A 100 A 1.6 A 1.7 A 2.1 A PMC Rent Collection May June % Grade % Grade % Grade Orion 98.7 A 97.6 B 98.9 A Lynd 99.6 A 99.1 A 98.7 A J. Allen 99.4 A A 98.1 A PHAS Score Occupancy Rate Avg. Total Turnaround Days Rent Collection Percentage Avg. W/O Days A 98 to to to B 97 to to to to 30 C 96 to to to to 40 D 95 to to to to 50 E 94 to to to to 60 F

27 PUBLIC HOUSING MANAGEMENT ASSESSMENT VACANCY RATE Goal 2.0% Actual 1.9% A 0 to 2 B 2.1 to 3 This indicator examines the vacancy rate, a PHA's progress in reducing vacancies, C 3.1 to 4 and unit turnaround time. Implicit in this indicator is the adequacy of the PHA's D 4.1 to 6 system to track the duration of vacancies and unit turnaround, including down E 5.1 to 6 time, make ready time, and lease up time. F 6.1 RENT COLLECTION (YTD) Goal 98% Actual 100.4% A 98 to 100 B 96 to 97.9 This report examines the housing authority's ability to collect dwelling rent owed by C 94 to 95.9 residents in possession of units during the current fiscal year by measuring the D 92 to 93.9 balance of dwelling rents uncollected as a percentage of total dwelling rents to be E 90 to 91.9 collected. F 89.9 EMERGENCY WORK ORDERS Goal 100% Actual 100% A 99 to 100 B 98 to 98.9 This indicator examines the average number of days that it takes for an emergency C 97 to 97.9 work order to be completed. Emergency work orders are to be completed within D 96 to hours or less and must be tracked. E 95 to 95.9 F 94.9 NON-EMERGENCY WORK ORDERS Goal 25 Days Actual 1.84 Days A 24 B 25 to 30 This indicator examines the average number of days that it takes for a work order to C 31 to 40 be completed. Implicit in this indicator is the adequacy of HHA's work order system D 41 to 50 in terms of how HHA accounts for and controls its work orders and its timeliness in E 51 to 60 preparing/issuing work orders. F 61 ANNUAL INSPECTIONS Goal 100% Actual 100% A 100 B 97 to 99 This indicator examines the percentage of units that HHA inspects on an annual C 95 to 96.9 basis in order to determine the short-term maintenance needs and long-term D 93 to 94.9 modernization needs. Implicit in this indicator is the adequacy of HHA's inspection E 90 to 92.9 program in terms of the quality of HHA's inspections, and how HHA tracks both inspections and needed repairs. F 89.9

28 Low-Income Public Housing Development Allen Parkway Village PMC ACC Units VACANCY RATE AND TURNAROUND DAYS Approv ed Units Offline Total Available ACC Units Occupied Units Vacant Units Occupancy Percentage Grade Total Vacant Days Units Turne d YTD Avg. Total Turnar ound Days YTD Orion % A E Bellerive J. Allen % A D Clayton Homes J. Allen % A F Cuney Homes Orion % C F Ewing Orion % A A Forest Green J. Allen % A D Fulton Village Lynd % A F Heatherbrook Lynd % A E Historic Oaks of APV Orion % A F Historic Rental Orion % A F Independence Heights Orion % A A Irvinton Village J. Allen % A D Kelly Village J. Allen % A F Kennedy Place Orion % A F Lincoln Park Orion % C E Lyerly J. Allen % A B Oxford Place Orion % C E Sweetwater Lynd % F A Victory Apartments Orion % A D Totals % A F Grade Section 8 New Construction Development PMC S8 NC Units Units Offline Total Available S8 NC Units Occupied Units Vacant Units Occupancy Percentage Grade Total Vacant Days Units Turne d YTD Avg. Total Turnar ound Days YTD Long Drive Tarantino % A E Telephone Road Tarantino % A B Totals % A D Grade Six Months Trailing Occupancy Rate PHAS Score Avg. Total Turnaround Days Occupancy Rate A 98 to to 20 B 97 to to 25 C 96 to to 30 D 95 to to 40 E 94 to to 50 F February March April May June July

29 TAX CREDIT APARTMENT LEASING/OCCUPANCY INFORMATION Property Manager Total Units Public Housing Units Tax Credit Units Market Units Vacant Units Occupied (%) Property 2100 Memorial Lynd % Heatherbrook Lynd % Independence Heights Orion % Mansions at Turkey Alpha Creek Barnes % Peninsula Park Orion % Pinnacle at Wilcrest Embrey % Sweetwater Point Lynd % Uvalde Ranch Hettig- Kahn % Villas at Winkler Lynd % Willow Park Embrey % PH-LIHTC Fulton Village Lynd % HOAPV Orion % Lincoln Park Orion % Oxford Place Orion % Victory Apartments Orion % 100.0% 97.0% 94.0% 6 Month Trailing Occupancy Rate 91.0% 88.0% 87.1% 87.9% 87.0% 86.3% 89.0% 89.0% 85.0% February March April May June July *EXCLUDES PUBLIC HOUSING LIHTC PROPERTIES

30 Low-Income Public Housing Development PMC Month Billed Month Collected RENT COLLECTION % Collected Grade YTD Billed YTD Collected % YTD Collected Allen Parkway Village Orion $92,556 $92, % A $653,455 $664, % A Bellerive J. Allen $49,799 $49, % A $347,749 $348, % A Clayton Homes J. Allen $50,768 $48, % C $317,084 $309, % B Cuney Homes Orion $100,062 $99, % A $679,021 $678, % A Ewing Orion $6,520 $6, % A $43,498 $43, % A Forest Green J. Allen $5,289 $4, % E $43,333 $42, % A Fulton Village Lynd $31,797 $31, % A $214,416 $226, % A Heatherbrook Apts. Lynd $10,431 $10, % A $67,890 $70, % A Historic Oaks of APV Orion $57,316 $57, % A $394,878 $400, % A Historic Rental Orion $7,386 $7, % A $54,391 $55, % A Independence Heights Orion $2,012 $2, % A $2,012 $2, % A Irvinton Village J. Allen $75,304 $73, % B $500,738 $499, % A Kelly Village J. Allen $68,430 $68, % A $449,933 $455, % A Kennedy Place Orion $31,881 $31, % B $227,319 $225, % A Lincoln Park Orion $41,189 $39, % C $276,272 $270, % B Lyerly J. Allen $48,034 $47, % A $338,280 $337, % A Oxford Place Orion $37,468 $36, % A $274,724 $273, % A Sweetwater Lynd $5,460 $5, % A $5,460 $5, % A Victory Apartments Orion $22,282 $22, % A $159,191 $158, % A Totals $743,985 $733, % A $5,049,644 $5,069, % A Grade Section 8 New Construction Development Month Billed Month Collected % Collected Grade YTD Billed YTD Collected % YTD Collected Long Drive Tarantino $24,153 $23, % B $173,020 $169, % B Telephone Road Tarantino $50,776 $50, % A $402,965 $401, % A Totals $74,929 $74, % A $575,985 $571, % A Grade PHAS Score Rent Collection Percentage A 98 to % 6 Months Trailing Rent Collection Rate 107.8% B 96 to 97.9 C 94 to 95.9 D 92 to % 100.0% 98.5% 100.2% 99.0% 98.3% 100.4% E 90 to 91.9 F % 90.0% 85.0% February March April May June July

31 Low-Income Public Housing Development Allen Parkway Village PMC EMERGENCY WORK ORDERS Emergency Work Orders Generated Emergency W/O Completed within 24 hours Percentage Completed within 24 hours Orion % A Grade Bellerive J. Allen % N/A Clayton Homes J. Allen % A Cuney Homes Orion % A Ewing Orion % N/A Forest Green J. Allen % N/A Fulton Village Lynd % A Heatherbrook Apartments Lynd % N/A Historic Oaks of APV Orion % A Historic Rental Orion % A Independence Heights Orion % N/A Irvinton Village J. Allen % A Kelly Village J. Allen % A Kennedy Place Orion % A Lincoln Park Orion % N/A Lyerly J. Allen % A Oxford Place Orion % N/A Sweetwater Lynd % N/A Victory Apartments Orion % N/A Totals % A Section 8 New Construction Development Emergency Work Orders Generated Emergency W/O Completed within 24 hours Percentage Completed within 24 hours Grade Long Drive Tarantino % N/A Telephone Road Tarantino % N/A Totals % N/A PHAS Score Avg. W/O Days A 99 to 100 B 98 to 98.9 C 97 to 97.9 D 96 to 96.9 E 95 to 95.9 F 94.9

32 NON-EMERGENCY WORK ORDERS Low-Income Public Housing Development PMC Work Orders Generated Average Completion Time (Days) Grade Allen Parkway Village Orion A Bellerive J. Allen A Clayton Homes J. Allen A Cuney Homes Orion A Ewing Orion A Forest Green J. Allen A Fulton Village Lynd A Heatherbrook Apartments Lynd A Historic Oaks of APV Orion A Historic Rental Orion A Independence Heights Orion N/A N/A N/A Irvinton Village J. Allen A Kelly Village J. Allen A Kennedy Place Orion A Lincoln Park Orion A Lyerly J. Allen A Oxford Place Orion A Sweetwater N/A N/A N/A Victory Apartments Orion A Totals A Section 8 New Construction Development Work Orders Generated Average Completion Time (Days) Grade Long Drive Tarantino A Telephone Road Tarantino A Totals A PHAS Score Avg. W/O Days A 24 B 25 to 30 C 31 to 40 D 41 to 50 E 51 to 60 F Months Trailing Non-Emergency Work Orders February March April May June July

33 ANNUAL INSPECTIONS Low-Income Public Housing Development PMC YTD Inspections Due YTD Inspections Performed Percentage Complete Bellerive J. Allen % F Clayton Homes J. Allen % C Cuney Homes Orion % F Ewing Orion % F Forest Green J. Allen % A Fulton Village Lynd % F Heatherbrook Apartments Lynd % A Historic Oaks of APV Orion % F Historic Rental Orion % F Independence Heights Orion % N/A Irvinton Village J. Allen % F Kelly Village J. Allen % F Kennedy Place Orion % F Lincoln Park Orion % A Lyerly J. Allen % F Oxford Place Orion % A Sweetwater Lynd % N/A Victory Apartments Orion % A Totals 3,368 2, % F Grade Low-Income Public Housing Development PMC Inspections Due Inspections Performed Percentage Complete Long Drive Tarantino % A Telephone Road Tarantino % F Totals % C Grade PHAS Score Inspections Performed YTD A 100% B 97 to 99% C 95 to 96.9% D 93 to 94.9% E 90 to 92.9% F 89.9%

34 HOUSING CHOICE VOUCHER HUD-GRADED SEMAP INDICATORS Score Performance ANNUAL REEXAMINATIONS REPORTING RATE Goal 96% Actual 100% to 95 This Indicator shows whether the Agency completes a re-examination for each participating family at least every twelve (12) months CORRECT TENANT RENT CALCULATIONS Goal 98% Actual 100% 5 98 to This Indicator shows whether the Agency correctly calculates the family s share of rent to owner in the Rental Voucher Program. PRECONTRACT HQS INSPECTIONS Goal 100% Actual 100% 5 98 to This Indicator shows whether newly leased units pass HQS inspection on or before the beginning date of the Assisted Lease and HAP Contract. FSS ENROLLMENT Goal 80% Actual 100% to 79 This Indicator shows whether the Agency has enrolled families in the FSS Program as required. To achieve the full points for this Indicator, a housing authority must have 80% or more of its mandatory FSS slots filled. There are currently 512 slots on the FSS Program; 642 families are currently enrolled FSS ESCROW Goal 30% Actual 44% This Indicator shows the extent of the Agency s progress in supporting FSS by measuring the percent of current FSS participants with FSS progress reports entered in the PIC system that have had increases in earned income which resulted in escrow account balances. To achieve the full points for this Indicator, at least 30% of a housing authority s enrolled families must have an escrow balance. 535 families participate in the FSS program. 238 of the 441 (44%) families eligible for escrow currently have a FSS escrow balance.