HOUSING OPPORTUNITIES COMMISSION OF
10400
Detrick Avenue
(240) 773-9025
M
I N U T E S
02
- 21
A regular meeting of the Housing Opportunities
Commission of Montgomery County was conducted on
Present
Richard Y. Nelson, Jr., Vice
Chair
Norman Cohen, Chair Pro-tem
Ralph D. Bennett, Jr.
Y. Monroe
Michael J. Kator
LaKeyia L. Thompson
Absent
Warren Lasko, Chairman
Also
Attending
Scott Minton, Executive Director Ken
Tecler
Annie Alston Bill
Murphy
Lillian
Lembit Jogi Earl
DeMaris
Zachary Smith Andrew
Oxendine
Harold Kramer Scott
Ewart
Jerry Matthews Les
Kaplan
Jane Harrah Linda
Mansouri
Gail Willison
Dana Miller, Special Assistant to the Commission
Guests
Elizabeth
Davison, Department of Housing and Community Affairs
Prior
to the convening of the Commission meeting, service awards were presented to
the following staff members:
25 Years of Service – Gregory Frazier, Sharon
Marbley and Kay Masood
20 Years of Service – Sandra Barnes
15 Years of Service –
Agnes
Adebona, John Colbert, Lillian Durham, Jill Friedman,
Jerrilyn Matthews, Kenneth Miller, Joseph Pierre,
Juan Puente, Antoinette Walker, and Ellen Brown
10 Years of Service –
Bobbie DaCosta, Reginald Epps, Robin Feller,
Jacqueline Ghunaim, Maudese
Jeffries, Amy Justice, Sandy Kozak, Miguel
Perez, Edward Polite, and Stuart Raynor
5 Years of Service –
Lillian
Busch, Barbara Cohen, Terri Copman, Walid Eltayeb, Rachel Genus, Arthur Owens, Harold Kramer, Lester
Kaplan, Steven Lukaczer, Rose Matthews, Patrick Mattingly, Michael McGinn, Simone Obeid, Irma
Rodriguez, Angela Russell, Jill Matthews-Smith, Zachary Smith, and Zulma Sum
Vice-Chairman
Nelson called the meeting to order at
I. CONSENT CALENDAR
A.
Approval of Minutes of
B.
Authorization for Executive
Director to Execute Contracts for Interior Painting at HOC-Managed Properties
RESOLUTION: 02 – 106 RE:
Authorization for Executive
Director
to Execute Contracts for Interior Painting
at HOC- Managed Properties
WHEREAS, HOC issued an Invitation
for Bids (IFB) for interior painting and drywall repair services for all
properties and units managed in-house by HOC staff; and
WHEREAS, twenty firms submitted
bids in response to the IFB; and
WHEREAS, HOC staff determined that
the lowest responsive bidders are responsible bidders.
NOW,
THEREFORE, BE IT RESOLVED by the Housing Opportunities Commission that the Executive Director,
or his designee, is hereby authorized to execute eight contracts totaling
$301,000 as follows:
Group 1 – Elderly Properties
1.
Primary Contractor:
2.
Secondary Contractor: Independent
Cleaning $ 16,000
Group 2 – Multifamily Up
3.
Primary Contractor: Camco,
LLC $ 20,000
4.
Secondary Contractor: Colossal
Contractors $
9,000
Group 3 – Scattered Site Properties
5.
Primary Contractor: Camco,
LLC $134,000
6.
Secondary Contractor: j.j.d. Painting and Construction $ 58,000
Group 4 – Multifamily
7.
Primary Contractor: Colossal
Contractors $ 18,000
8.
Secondary Contractor:
C.
Adoption of Pet Policies for Non-Public Housing Units
RESOLUTION: 02 – 107 RE: Adoption of Pet Policies for
Non-Public Housing Units
WHEREAS, on September 18, 2002,
staff presented a proposed Pet Policy for Non-Public Housing Units to the
Commission for “Deliberation” under which the decision as to whether or not
pets are to be allowed at HOC multifamily properties would be made on a
property-by-property basis as determined by each property’s characteristics;
and
WHEREAS, the Commission directed
staff to resubmit for “Consent” a Pet Policy for Non-Public Housing Units which
is consistent (not property specific) and which contains a proviso under which
pets currently allowed in certain properties will be “phased out”; and
WHEREAS, the HOC Resident Advisory
Board was consulted with regard to staff’s recommended policy and concurred
with staff’s recommendation.
D.
Approval of Renewal of
Single Family Draw Down Indenture with Merrill Lynch
RESOLUTION: 02 – 108 RE: Approval of Renewal of Single
Family Draw Down Indenture
with Merrill Lynch
WHEREAS, the Commission has
participated in a draw down agreement (Trust Indenture) with Merrill Lynch
since January 2000; and
WHEREAS, that agreement expires on
WHEREAS, Merrill Lynch desires to
renew the draw down agreement with an option to terminate the agreement with
notice and has requested that the investment not be collateralized; and
WHEREAS, the Commission desires to
continue the draw down process in order to achieve savings in the Single Family
Mortgage Purchase Program.
NOW,
THEREFORE, BE IT RESOLVED that the Housing Opportunities Commission of Montgomery County
approves the renewal of the draw down agreement with Merrill Lynch & Co.
subject to certain revisions and authorizes the Chairman, or Vice Chairman or
Chairman Pro Tem or Executive Director to execute the necessary documents to
implement the renewal of the agreement.
E.
Approval of Lenders and Pool
Insurer for 2002ABC Mortgage Purchase Program
RESOLUTION: 02 – 109 RE: Approval of Lenders and Pool
Insurer for 2002ABC Mortgage Purchase Program
II. INFORMATION EXCHANGE
A.
Executive Director's Report - Mr. Minton added the
following items to his written report:
1)
Staff has received notification that HOC will be awarded a $500,000
ROSS grant. The grant will cover three years of employment-related services to
Public Housing residents which will include: skills training, educational
opportunities, and case management.
2)
Mr. Minton directed the Commission’s attention to copies of the
Montgomery Arms relocation plan. He
explained that the plan was distributed to the residents of the property. A resident meeting is scheduled for December
16th to go over the plan in detail.
3)
The Maryland Association of Housing and Redevelopment Agencies (MAHRA) has agreed to co-sponsor the Housing Day in
4)
An award application has been submitted to NAHRO for the work that
Rockville Housing Enterprises (RHE) and HOC has done on the Tax Credit
Program. The application was submitted
jointly with RHE.
DHCA:
Elizabeth Davison, Director of DHCA, presented the
proposed development and revitalization in
Ms. Davison estimates that the proposed new
developments will yield approximately 1,400 housing units. She noted that there will be a fairly
balanced mix of housing types serving varying income levels.
Commissioner Bennett commended Ms. Davison on the energy put into redevelopment of the area. He pointed out that streetscaping is both important and welcomed.
Housing
Choice Voucher Lease-Up Initiative
Bill
Murphy, Director of the Rental Assistance Division, informed the Commission
that the Lease-Up Initiative has resulted in over 4,996 leased units to
date. He explained that the HUD-imposed
minimum goal is 5,017. He stated that
HOC has approximately three and one half months to achieve, if not exceed, that
goal.
In
response to a question by Commissioner Bennett, Mr. Murphy stated that the
Agency currently has enough funding to support 100% utilization (5,575 leased
units). There was a lengthy discussion
about the budget and funding for the next year.
Vice-Chairman
Nelson congratulated Mr. Murphy and his staff on the success of the Lease-Up
effort. He stated that, despite the
housing market, staff has made considerable progress. Mr. Murphy stated that his staff has worked
very hard.
Chairman
Pro Tem Cohen inquired about new landlords to the program. Mr. Murphy stated approximately 166 landlords
joined the Program since
Mr. Murphy stated that the Lease-Up Initiative will reach its goal ahead of schedule and under budget.
B. COMMISSIONER
EXCHANGE
Vice-Chairman
Nelson introduced new Commissioner LaKeyia Thompson
and welcomed her to the Commission. He
read a portion of her letter of interest to County Executive Doug Duncan and
stated that Ms. Thompson has a commitment to giving back to the Agency and
participating in the affordable housing process.
Chairman
Pro Tem Cohen directed the Commission’s attention to copies of the book Nickel
and Dimed.
He explained that the book was recommended to him by former
Councilmember Blair Ewing. He asked
Commissioners to read it and to pass it along to others who work or volunteer with
HOC.
C. COMMUNITY FORUM – no comments made.
III. COMMITTEE REPORTS
Budget, Finance
and Audit Committee –
Vice-Chairman Nelson reported that the Committee met earlier that
evening to review the FY04 Operating Budget and the FY03 County Operating
Budget Savings Plan.
1.
Authorization to Submit FY04
County Operating Budget –
Vice-Chairman Nelson
explained that, in recent years, the Council has begun the process with
directed cuts. This year the directive
was to reduce HOC’s base budget by 3%. As a result, a budget will be submitted that
is 3% less than last year’s budget.
Vice-Chairman Nelson explained that a request to restore items, which
have been cut to meet the 3% reduction, will be submitted as well. The budget submission is due on
Vice-Chairman Nelson stated
that it is a difficult time for the County.
However, he noted that the County must find an answer to assist HOC
continue its work. He stated that the
Commission will be working over the next few months to prepare a budget for
FY04. He explained that each time an
activity is cut, it hurts the program and the overall
effort of the Commission. He stated
that, although it will be more difficult than recent years, the Commission will
continue to work to maintain the programs and activities with limited
funding. He stated that the Committee
talked briefly about projections that Public Housing operations may be
under-funded by the federal government in the coming year. Vice-Chairman Nelson stated that this added
challenge will require supplementing the federal funding budget. He went on to state that Commission approval
of the FY04 County Operating Budget is the first step in meeting the budget
challenges ahead.
There was a brief discussion
about the list of items above the base budget for which the Agency is requesting
funding. Mr. Minton explained that there
will be ample opportunity to amend the list or make a strong case for the items
as staff reviews the budget with the Council and the Office of Management and
Budget (OMB).
Chairman Pro Tem Cohen moved
to adopt the FY04 County Operating Budget. The motion was seconded by
Commissioner Galloway. Affirmative votes
were cast by Commissioners Bennett, Galloway, Kator,
Cohen, Thompson and Nelson. Commissioner
Lasko was necessarily absent and did not participate in
the vote.
FY04
County Operating
Budget
WHEREAS, the Housing Opportunities Commission of Montgomery County wishes to
submit a request for County funds for FY’04; and
WHEREAS, the County has instructed HOC to submit a budget with a 3% proposed
reduction in funding for FY’04 by
WHEREAS, the HOC also has various over the “MARC” budget requests totaling
$526,020.
NOW, THEREFORE, BE IT RESOLVED by the Housing Opportunities Commission of
Montgomery County that it hereby submits a request for FY’04
2.
Authorization to Submit FY03
County Operating Budget Savings Plan –
Vice-Chairman
Nelson explained that a request has been made by the County Chief
Administrative Officer to reduce the FY03 budget by three percent or
$131,540. He explained that staff has
identified areas to reduce in compliance with the request. He further explained that the items are “hard
cuts” which will not be replaced.
Commissioner
Bennett asked whether the Agency pays rental license fees. Mr. Minton explained that, although the
Agency pays the fees, in recent years the Council reimburses the cost. To reach
the three percent cut, HOC will forego the reimbursement of those fees for the
remainder of the year. Mr. Minton
further explained that the Agency has a very limited number of options with
regard to the areas of reduction.
Commissioner
Bennett moved to adopt the FY03 County Operating Budget Savings Plan. The
motion was seconded by Chairman Pro Tem Cohen.
Affirmative votes were cast by Commissioners Galloway, Kator, Cohen, Thompson, Bennett and Nelson. Commissioner Lasko
was necessarily absent and did not participate in the vote.
RESOLUTION: 02 - 111 RE:
Authorization to Submit
FY03
County Operating
Budget
Savings Plan
WHEREAS, the Housing Opportunities
Commission of Montgomery County has to submit a County Operating Budget Savings
Plan for FY’03; and
WHEREAS, the County has instructed
HOC to submit a proposed savings plan for the HOC County Operating Budget of 3%
or $131,540 for FY’03 by December 19, 2002; and
WHEREAS, the County has instructed
HOC to submit a proposed savings plan for the Closing Cost Assistance Program
of 3% or $6,450 for FY’03 by
NOW,
THEREFORE, BE IT RESOLVED by the Housing Opportunities Commission of Montgomery County that it
hereby submits a FY’03 County Savings Plan totaling $137,990.
Legislative and Regulatory Committee – Commissioner Galloway reviewed the proposed
HOC 2003 Legislative Agenda. She noted
two additions which were incorporated into the revised agenda. Commissioner Galloway thanked Vice-Chairman
Nelson for his input. She stated that
the staff has done an excellent job, over the last year, preparing the
Agenda. She further stated that
Commissioners will play a vital role in advocating the Agenda with the County
Council, the Maryland General Assembly and the United States Congress.
There
was a brief discussion about the County Legislative Priority to advocate for
funding for resident services linked to self-sufficiency. Commissioner Bennett stated that this
particular Priority needed to be clarified for the public. He further explained that, in light of the
recent economic downturn and Welfare reform, it is especially critical for
continued assistance with daycare, job training and programs which enable
County residents to fully participate in the workforce.
Commissioner
Galloway moved to adopt the resolution.
Chairman Pro Tem Cohen seconded the motion. Affirmative votes were cast by Commissioners Kator, Cohen, Thompson, Bennett, Nelson and Galloway. Commissioner Lasko
was necessarily absent and did not participate in the vote.
RESOLUTION: 02 - 112 RE:
Adoption of 2003 Legislative
Agenda
WHEREAS, there is a need for developers in the County to be able to voluntarily
build MPDUs in developments with 35 or fewer units;
and
WHEREAS, there is a need for additional funding in the County’s Housing
Initiative Fund to build more affordable housing; and
WHEREAS, there is a shortage of developable land in the County and a need for an
inventory of County-owned land and for surplus land to be made available for
the new construction of affordable housing; and
WHEREAS, there is a need for adequate funding for daycare, job training and
programs which enable HOC residents to fully participate in the workforce; and
WHEREAS, the establishment of a Joint Committee on Housing Policy in the
Maryland General Assembly is needed to facilitate legislation and information
on housing-related bills and resolutions; and
WHEREAS, there is a need to maintain the current funding level for the State
Partnership Rental Housing and Rental Housing Production programs; and
WHEREAS, there is a need for Montgomery County to have additional authority from
the State of Maryland to issue bonds in order to preserve and create affordable
housing; and
WHEREAS, there is a need for the U.S. Congress to identify a funding source for
the creation of a National Affordable Housing Trust Fund; and
WHEREAS, an adequate U.S. Congressional appropriation is needed in the U.S.
Department of Housing and Urban Development’s Fiscal Year 2003 and 2004 budgets
to prevent the permanent loss of vouchers through the Housing Choice Voucher
Program.
NOW, THEREFORE BE IT RESOLVED by the Housing Opportunities Commission that it
hereby adopts and promotes these items as the Agency’s 2003 Legislative Agenda
and Work Program.
Planning Committee – Chairman
Pro Tem Cohen stated that the Commission and staff met on Saturday, December 7th
to discuss the final draft of the Strategic Plan for the Agency. He explained that staff and Commissioners
began work on the Plan during the summer months and the work has resulted in
what he considers to be the best Plan to date.
Chairman Pro Tem Cohen
stated that staff will submit the Plan to the Strategic Planning Committee for review.
The finalized Plan will be submitted to the Commission for adoption at the January meeting.
IV. DELIBERATION / ACTION CALENDAR
A.
Approval of Financial
Software Acquisition
Scott Ewart, Director of
Information Technology, introduced Earl DeMaris, Chief Financial Officer. Mr. Ewart stated staff has gone through an
extensive search for core business systems software for approximately the past
year and a half. He went on to state
that staff has reviewed most of the major significant products in the housing
industry as well as leading financial products utilized in the private sector. He directed the Commission to a written
description of the process and names of the products evaluated.
Mr. Ewart stated that the product and company that staff
is recommending is Yardi – the leading software
provider in the property management field.
Yardi was established in 1982 and served over
18,000 companies with products serving property, asset and financial management
needs. He stated that Nan McKay’s Public
Housing software development division joined Yardi in
August 2000, which added credibility and strengthened Yardi’s
position in public housing software. Mr.
Ewart went on to state that Yardi offers technology
that is not only current but also lends itself as a product that will best
serve HOC going forward. He went on to
state that, HOC will be better able to utilize the technology offered by Yardi to improve staff operations and reporting ability.
Mr. Ewart stated that technology was not the leading
factor in making the recommendation. He
stated that Finance Division staff spent a considerable amount of time
reviewing the functionality of this product and other products. He stated that the cost of the software is
approximately $375,000. Full
implementation of the software will cost the Agency nearly $500,000.
Mr. Ewart stated that staff recommends utilizing an outside
project manager to insure that the implementation is done correctly and on
time. He explained that staff has worked
out a timeline with Yardi that will have the new
system operational by
There was a brief discussion in which Mr. DeMaris stated
that the Finance Division staff has evaluated the product and are doing field
testing. He went on to state that staff
is very pleased and positive about the recommend software. Mr. DeMaris explained that staff evaluated
two other software products and found Yardi to be the
most appropriate – especially for financial reporting.
Mr. Ewart pointed out that Yardi
was a private property management system prior to adding the Nan McKay public
housing component to their software. He
explained that, because HOC does so much more than Public Housing, the
limitations imposed by CCS will no longer exist once the Agency has made the
switch to Yardi.
Commissioner Bennett inquired about technical support for
the product. Mr. Ewart stated that
reference checks have revealed positive feedback from other housing
authorities. He further explained that HOC’s IT staff is trained in the technology utilized by Yardi and will be better able to support the product. Yardi utilizes
current technology, whereas CCS utilizes technology developed in 1976, to which
staff has had to learn and adapt.
Chairman Pro Tem Cohen inquired about the cost for
services. He asked if the quoted fee of
$200 per hour was reasonable. Mr. Ewart
stated that the fees are in line with what the industry is paying today. He went on to state that staff intends to
hire an outside project manager in an effort to save the Agency money. He added that the amount saved will not
likely be a significant savings.
Commissioner Bennett moved to adopt the resolution. Commissioner Kator
seconded the motion. Affirmative votes
were cast by Commissioners Galloway, Nelson, Cohen, Thompson, Kator, and Bennett.
Commissioner Lasko was necessarily absent and
did not participate in the vote.
RESOLUTION: 02 - 113 RE:
Approval of Financial Software
Acquisition
WHEREAS, the Housing Opportunities Commission of Montgomery County continues
to experience problems with the CCS financial system; and
WHEREAS, external auditors continue to find deficiencies with the CCS
financial reporting package; and
WHEREAS, the Information Technology Division briefed the Commission in March,
2001 regarding the intent to convert to a new software system for HOC’s core business products; and
WHEREAS, the Information Technology Division conducted an extensive evaluation
of financial software systems on the open market; and
WHEREAS, the Finance Division evaluated the functionality of the various
software systems; and
WHEREAS, based on the evaluation and references, the Finance Division
ultimately selected the Yardi Financial and Property
Management system.
NOW, THEREFORE, BE IT RESOLVED by the Housing Opportunities Commission of
Montgomery County that it authorizes the purchase and implementation of the
software conversion utilizing the Yardi Financial and
Property Management system.
B.
Approval of Series Bond
Resolutions and Cost of Issuance for
2002A, 2002B, 2002C Single Family Bonds
Earl DeMaris, Chief
Financial Officer, introduced Tom DeBrine, Manager of Single Family
Programs. Mr. DeMaris explained that the
series resolutions would be incorporated in the master indenture. The resolutions detail the terms of the
agreement with the bondholders and the trustee.
He stated that a cost of issuance budget was included with the briefing
materials to the Commission.
Mr. DeMaris stated
that there may be a change to the bond structure. He reminded the Commission that the Series C
bonds have a variable rate structure. He
further explained that it is a Pre-Ullman product in
which a variable rate is used to keep the Agency’s costs down. To protect the Agency, an interest rate swap
will be utilized.
Mr. DeMaris stated
that, in the initial proposal to the Commission, a 15-year interest rate swap
was recommended. However, rates have
gone up since that time and a 15-year swap is no longer appropriate. Staff now recommends a ten-year swap – a
fixed rate for ten years and an option to lock into a permanent rate or redeem
the bonds after that time.
Mr. DeMaris explained
that rates have again gone down since the briefing materials were
prepared. He explained that initial
estimates indicated that the Agency would earn approximately $110,000 per year
for the indenture with the ten-year swap.
The funds would be used for future Public Purpose. At the current rate, the Agency would lock in
at approximately 4.1 %. At that rate,
the Agency would earn approximately $160,000 per year (accruing $1.6 million
over ten years).
Mr. DeMaris explained
that staff recommends the ten-year swap because of the strength of the
indenture. He stated that, if inflation
and interest rates have dramatically increased, the Agency would have the
financial ability to redeem the bonds within one year. He went on to state that the interest rate
exposure on the back end is justified by the future Public Purpose which can be
built up in the indenture during the first ten years.
Mr. DeMaris stated
that the Agency will not lock into a rate until tomorrow (December 12th)
morning. He stated that, if rates drop
further by that time, staff will explore the 15-year swap as an option.
In response to a
question by Vice-Chairman Nelson, Mr. DeBrine explained that there are three separate resolutions
which require Commission approval to move forward.
Chairman Pro Tem Cohen
moved adoption of the resolution approving the cost of issuance budget for the
2002ABC Mortgage Purchase Program.
Commissioner Galloway seconded the motion. Affirmative votes were cast by Commissioners
Bennett, Kator, Thompson, Nelson, Cohen and
Galloway. Commissioner Lasko was necessarily absent and did not participate in the
vote.
RESOLUTION: 02 – 114