A regular meeting of the Housing Opportunities Commission of Montgomery County was conducted on Wednesday, May 15, 2002 at 10400 Detrick Avenue, Kensington, Maryland beginning at 7:15 p.m. Those in attendance were:

Present
Warren Lasko, Chairman
Richard Y. Nelson, Jr., Vice Chair
Norman Cohen, Chair Pro-tem
Ralph D. Bennett, Jr.
Y. Monroe Galloway (late arrival)

Absent
Marjorie M. Harris

Also Attending

Scott Minton, Executive Director Ken Tecler
Annie Alston Roy Appletree
Patrick Maier Bill Murphy
Lillian Durham Stuart Raynor
Harold Kramer Andrew Oxendine
Zachary Smith Earl DeMaris
Scott Ewart Jim Atwell
Doug Long Angela Russell
Gail Willison Marsha Smith
Linda Mansouri Margaret Blassingame
Saundra Boujai Jerry Matthews
Bill Anderson Lembit Jogi
Mark Looney Willa Reaves
Pat Walters Vivian Benjamin
Dana Miller, Acting Special Assistant to the Commission

Guests
Portia Lee, Moody's Investors Services
Wendy Berry, Moody's Investors Services

Chairman Lasko called the meeting to order at 7:15 p.m. Chairman Lasko then asked for consideration of the Consent Calendar. Commissioner Bennett moved, seconded by Vice-Chairman Nelson and the affirmation of Commissioners Cohen and Lasko to adopt the Consent Calendar. Commissioners Harris and Galloway were absent and did not participate in the vote.

I. CONSENT CALENDAR

A. Approval of Minutes of May 1, 2002 - The minutes were approved as written.

B. Acceptance of 3rd Quarter FY02 Budget to Actual Statements - the following resolution was adopted:

RESOLUTION 2002- 35 RE: Acceptance of Third Quarter
FY'02 Budget-to-Actual Statements

WHEREAS, the budget policy for the Housing Opportunities Commission of Montgomery County states that quarterly Budget-to-Actual Statements will be reviewed by the Budget, Finance and Audit Committee; and

WHEREAS, the Budget, Finance and Audit Committee reviewed the Third Quarter FY'02 Budget-to-Actual Statements during its May 15th meeting.

NOW, THEREFORE, BE IT RESOLVED by the Housing Opportunities Commission of Montgomery County that it hereby accepts the Third Quarter FY'02 Budget-to-Actual Statements.

C. Authorization to Submit SuperNofa Application - Supportive Housing Program - the following resolution was adopted:

RESOLUTION 2002- 36 RE: Authorization to Submit SuperNofa Application - Supportive Housing Program

WHEREAS, the Housing Opportunities Commission of Montgomery County has operated the McKinney III Transitional Housing Program and McKinney IX Permanent Housing Program since 1990 and 2000 respectively; and

WHEREAS, HUD funding for McKinney III and McKinney IX will expire on June 1, 2003 and June 30, 2003 respectively; and

WHEREAS, these two programs are important elements of Montgomery County's Continuum of Care for the Homeless; and

WHEREAS, HUD has issued a Super Notice of Funding Availability (SuperNofa) to fund renewal applications for these two programs which are due to the County by May 22, 2002 and to HUD by June 21, 2002; and

WHEREAS, renewal funding amounts will total $349,259 for one year.

NOW THEREFORE BE IT RESOLVED by the Housing Opportunities Commission of Montgomery County that renewal funding application proposals be submitted to HUD for a one-year renewal of McKinney III and IX.

D. Authorization to Submit SuperNofa Application - Family Self-Sufficiency Program - the following resolution was adopted:

RESOLUTION 2002 - 37 RE: Authorization to Submit SuperNofa Application - Family Self-Sufficiency Program

WHEREAS, HUD has recently published the Super Notification of Funding Availability (SuperNofa) for program coordinators/case managers in the FSS Program for FY 2002 funding awards and for new staff for homeownership programs; and

WHEREAS, the Housing Opportunities Commission of Montgomery County has operated the Family Self-Sufficiency (FSS) Program since 1993; and

WHEREAS, current HUD funding for the Family Self-Sufficiency Program Coordinators will expire on December 31, 2002; and

WHEREAS, the FSS Program Coordinators provide invaluable case management services to FSS participants; and

WHEREAS, the FY 2002 funding round allows for the inclusion of a Homeownership Coordinator to exclusively assist FSS voucher participants with homeownership opportunities and this activity will be a significant addition to the FSS Program; and

WHEREAS, FY 2002 funding application grants funds for up to seven Coordinators and one Homeownership Coordinator at an amount not to exceed $399,695, and

WHEREAS, the application is due to HUD by May 21, 2002.

NOW THEREFORE BE IT RESOLVED by the Housing Opportunities Commission of Montgomery County that staff is authorized to submit an application for funding to HUD not to exceed $399,695 in response to the SuperNofa to include seven FSS Coordinators and one Homeownership Coordinator.
E. Confirmation of Action Taken in Executive Session on May 1, 2002 to Proceed With Bozzuto Development Company on Certain Development Activities - the following resolution was adopted:

RESOLUTION 2002-38 RE: Confirmation of Action Taken in
Executive Session on May 1, 2002
To Proceed With Bozzuto
Development Company on Certain
Development Activities

WHEREAS, the Housing Opportunities Commission of Montgomery County
convened an Executive Session on May 1, 2002 to discuss potential development activities with Bozzuto Development Company; and

WHEREAS, the Housing Opportunities Commission stipulated to Agency staff the requirements of proceeding with certain transactions with Bozzuto Development Company; and

WHEREAS, the Executive Director and staff of the Housing Opportunities Commission of Montgomery County agreed to abide by the stipulated requirements; and

WHEREAS, the Commission has approved the proposed Memorandum of Understanding governing certain transactions with Bozzuto Development Company and the Housing Opportunities Commission of Montgomery County.

NOW, THEREFORE, BE IT RESOLVED by the Housing Opportunities Commission of Montgomery County that the Executive Director may sign the Memorandum of Understanding with Bozzuto Development Company and enter into certain development activities as outlined in the Executive Session minutes of May 1, 2002.

BE IT FURTHER RESOLVED that the Executive Director is authorized to expend $250,000 in connection with start-up costs to proceed with the aforementioned development activities.

F. Delegation of Authorization to Select MPDUs - the following resolution was adopted:

RESOLUTION 2002-39 RE: Delegation of Authorization
to Select MPDUs

WHEREAS, in 1978, the Housing Opportunities Commission of Montgomery County established the MPDU Selection Review Committee and gave it authority to act on behalf of the Commission in determining whether or not available MPDUs will be purchased; and

WHEREAS, the Commission desires to delegate the MPDU selection
responsibility to the Development and Finance Committee.

NOW, THEREFORE, BE IT RESOLVED that the Housing Opportunities Commission of Montgomery County authorizes the Development and Finance Committee to undertake the duties of the former MPDU Selection Review Committee and to act on behalf of the Commission in the selection of MPDUs
to be purchased.

FURTHER, BE IT RESOLVED that the MPDU Selection Review Committee is hereby dissolved as its duties will be henceforth performed by the Development and Finance Committee.

II. INFORMATION EXCHANGE

A. Executive Director's Report - Mr. Minton added the following items to his written report:

1) Mr. Minton informed the Commission that he met with the County Council on Monday, May 13th to review the FY03 operating budget. He stated that funds will be provided to fully reimburse rental license fees. Mr. Minton stated that the Agency has several items on the reconciliation list which he is doubtful will receive funding. He added that the discussions led him to believe that very few (if any) items from the reconciliation list would be funded. Mr. Minton added that the Council did not make any additional cuts to the HOC budget.

Mr. Minton stated that Councilman Subin inquired about programs targeted at teachers, firefighters, or police officers. Mr. Minton explained that Councilman Subin requested that HOC look into developing such a program to target essentially, young working couples and people trying to make a start in the County and are having a tough time. Mr. Minton stated that he told Councilman Subin that while the Agency did not currently have a program of that nature in place, staff would work to develop such a plan. He added that it was discussed in the Budget, Finance and Audit Committee meeting held earlier that evening.

2) Mr. Minton directed the Commissioner's attention to two letters from NAHRO regarding awards of merit for Housing and Community Development that HOC will be receiving. He explained that in addition to the award he wrote about in his written report, HOC will be receiving another award for enriching parents via the Parent Resource Center. He stated that HOC will be recognized at the NAHRO Summer Conference in New York and at the MARC conference at MAHRA next week.

3) Mr. Minton stated that the finance division has arranged for KPMG to conduct the audit of Community Partners on a Pro Bono basis.

4) Mr. Minton directed Commissioner's attention to their advanced copy of the latest edition of Housing Stories. He noted the new look of the publication and told the Commission that their feedback would be welcomed.

5) Mr. Minton informed the Commissioners of two items and asked that Commissioners contact staff if they have an interest in either or both of the following:
(a) the Housing Association of Nonprofit Developers (HAND) 11th annual meeting and HAND Housing Achievement Awards for 2001; (b) Montgomery County Chamber of Commerce workshops and / or committee participation.

Chairman Lasko inquired about a letter from residents of Stewartown regarding a 33.5% rent increase. Mr. Minton stated that the rent increase letter to residents was an error on the part of the staff at the site. He explained that a letter of apology has been sent to residents along with the correct rent increase rates. Mr. Minton stated that staff would furnish copies of the letters to the Commission. There was a brief discussion about the issue. Chairman Lasko expressed his concerns and Mr. Raynor explained that the actual increase is 4.7%. Mr. Raynor further explained that the management company acted without permission or approval from HOC. He reiterated that letters of apology along with notice of the correct rent increase had been sent out.

Commissioner Bennett commented on the HAND Housing Achievement Awards. He stated that it is a very good organization. He added that he attended the event last year. He encouraged staff and others to attend. Mr. Minton stated that several staff members had already committed themselves to attend.

Presentation - Resident Services - Scattered Sites and Housing Choice Voucher Programs

Ms. Durham introduced herself and Saundra Boujai, Program Coordinator for the Scattered Sites Counseling Program. Ms. Boujai stated that the Scattered Sites Counseling program is staffed by five resident counselors, one emergency assistance counselor, and one part-time administrative aide who are all housed at the East Deer Park office.

Ms. Boujai stated that the complement of 1,623 units served is comprised of several different programs which are currently dispersed as follows: Holiday Park (20), MPDUs (146), Pomander Park (24), State Rental Partnership (150), McKendree (28), Tax Credit (507), McHome (4), Public Housing (707). She added that the units are scattered throughout the County. Ms. Boujai stated that the Scattered Sites Program is involved with approximately 250 Homeowner Associations within the County.

Ms. Boujai explained that caseloads are assigned geographically. She stated that each resident counselor is assigned a caseload of approximately 350 units. She added that, on average, each counselor has an active caseload of approximately 100 resident families per month. Ms. Boujai went on to give details of the work that is done and pointed out three main areas of service provided by the resident counselors. Those service areas are identified as: crisis intervention, rent and utility delinquency counseling and complaint intervention and resolution. She went on to provide information on home visits, case conferences and formal office conferences which are held to attempt resolution of client issues.

Two other programs are coordinated in the Scattered Sites Program, Ms. Boujai stated. She first discussed the Resident Temporary Assistance Program (ReTAP) and explained that the program is open only to Opportunity Housing residents. Ms. Boujai stated that ReTAP provides a grant in the form of rent reduction (for up to a 12-month period) to eligible participants facing a financial hardship or life crisis. She stated that since its inception in 1997, the program has awarded grants to 90 residents and the average grant is $1,099.

Ms. Boujai then discussed the Emergency Assistance Program which is administered in both the Scattered Sites Counseling unit and the Housing Choice Voucher Counseling unit. She stated that the Program is a partnership between HOC and the Montgomery County Department of Health and Human Services (DHHS) Emergency Services Unit. She explained that the program provides financial assistance to prevent evictions due to delinquent rental payments, utility disconnections, security deposits, aid with moving expenses, and first month's payment for storage space if eviction is eminent. Three assistance counselors are located in the HOC Kensington, HOC East Deer Park, and Silver Spring DHHS offices. She stated that 840 households were served in FY01 with the total expenditures on behalf of residents for FY01 being $375,855 or approximately $450 per household.

Ms. Boujai then introduced Marsha Smith, Program Coordinator for the Housing Choice Voucher Counseling Program. Ms. Smith stated that the Program is staffed by three full-time resident counselors, one part-time resident counselor, two emergency assistance counselors, one opportunity housing counselor and one shared administrative aide. She stated that the Program serves Housing Choice Voucher Program participants through a variety of avenues. She provided figures for the clients served last year: 719 walk-ins, 25 requests for applicant hearings, 24 service agreements were executed as a result of compliance issues, 177 home visits in efforts to resolve complaints, 1,898 transportation tokens were distributed, and 90 emergency food vouchers were distributed. Ms. Smith went on to explain that HUD abolished both the guarantee of security deposits and damage claims in October of 1995. However, claims prior to 1995 continue to be filed against participants. Ms. Smith went on to say that her office has collected $10,655 in outstanding damage claims over the past 12 months.

Ms. Smith stated that she and her staff provide the following services: information and referrals, crisis intervention, short-term counseling and specialized services. She gave examples of the types of assistance that fall under each category. She further explained that specialized services included the Revolving Security Deposit Loan Program (RSDLP). Ms. Smith stated that RSDLP served 94 families over the last 12 months. She added that the average grant has been approximately $500. Two other programs which were presented by Ms. Smith are the Family Unification Program (FUP) and the Service Linked Housing Program.

Ms. Smith stated that the Service Linked Housing Program is a state-funded program for families living in Tanglewood Apartments. She stated that information and referrals are provided for up to 50 families per month and case management is provided for approximately 30 families per month. She added that the Program staff also coordinate activities operated at the Tanglewood Resource Room. Ms. Smith listed such activities as Reading is Fundamental (RIF), an after-school homework club in collaboration with the County Recreation Department, an on-site Girl Scout troop, and a resident advisory group.

Ms. Smith stated that the Family Unification Program is a collaborative program with the County's Child Welfare Services to provide specialized vouchers to families at risk of losing their children or needing housing in order to re-unify families. She stated that there are 185 subsidies available to FUP families of which 126 are currently being utilized. She stated that case management is provided for these families through the County Department of Health and Human Services by one full-time case manager and a full-time community case aide. A joint committee of HOC and Child Welfare staff selects families for participation.

Commissioner Bennett inquired about the extent of the damages claimed by landlords (on account of the actions of our residents) and how staff attempts to recover the damages. Mr. Murphy explained that the Section 8 program discontinued damage claim payments in 1995 and, as such, HOC had to stop offering contracts with that provided. He stated that the damage claim recoveries that Ms. Smith spoke of were under old contracts and they either moved out or new contracts were put in place. Mr. Murphy explained that under the old regulations, which permitted damage claims, the landlords were limited to two months Housing Assistance Payments. He pointed out that the monies recovered by Ms. Smith's unit are in fact payments from families to "re-pay" HOC for a damage claim paid on the families' behalf. A lengthy discussion ensued in which Mr. Murphy discussed a possible indemnification, from County funds, to serve as an incentive to landlords. Commissioner Bennett stated that he felt it would be essential to provide landlords with an avenue to recoup losses due to damages.

Chairman Pro Tem Cohen asked Ms. Boujai about the effectiveness of the Program, in light of the large caseloads and the small staff. Ms. Boujai responded that she and her staff find themselves being more reactive than proactive. She stated that because the units are scattered throughout the county and the counselors are not on the property, she and her staff are made aware of issues concerning residents by the resident, the Home Owners Associations, or other means. She added that, if they are not made aware of an issue, problems may go unresolved.

Chairman Lasko commended staff on the presentation. Vice-Chairman Nelson stated that the Agency has so few demonstrable problems within the residents served due to the work that the staff does. He added that their efforts do not go unnoticed.

B. COMMISSIONER EXCHANGE

Vice-Chairman Nelson stated that he attended the Family Self-Sufficiency Day on Saturday, May 11th. He stated that the event was held at Wheaton Regional Park. He added that this 6th Annual event was supported by the Southern Maryland Life Underwriters Association. He stated that there were 200 families in attendance and the event was enjoyed by all. Vice-Chairman Nelson added that there is a potential opportunity to get additional help for programs from someone who attended the event.

Chairman Lasko stated that he attended the Senior Volunteer Recognition event last week. He congratulated Ms. Durham, Ms. Matthews and Ms. Gail Gunod-Green for all the work they do. He stated that 81 awards were given to the senior residents who volunteer.

C. COMMUNITY FORUM - no comments made.

III. COMMITTEE REPORTS

Budget, Finance and Audit Committee - Committee Chair, Vice-Chairman Nelson, stated the third quarter budget to actual statements had been accepted under the Consent calendar. He explained that a budget revision was not needed, which meant that the Agency is operating within the approved budget. He added that at the end of the year, the Agency will do better that projected in the budget. He stated that the staff should be given credit for managing the finances in what has been a volatile year for interest rates. He stated that the Agency depends a great deal on interest income and the staff has paid close attention to that.

He stated that a preliminary discussion was held on exit strategy for Tax Credit I. He stated staff has explored a number of available options for exit strategy and will bring it to the Commission. He added that the final meeting on the budget has been held and the FY03 budget will be coming to the Commission in June. He stated that there were good discussions in all of the meetings and issues were discussed pertaining to how the Agency can continue to do more with what appears to be less.

Community Relations Committee - Chairman Lasko announced that Commissioner Harris was unable to make the meetings, thus there was no report.

IV. DELIBERATION / ACTION CALENDAR

A. Presentation of Management Quality Rating - Moody's Investors Services
Mr. Appletree introduced Portia Lee and Wendy Berry of Moody's. He stated
that it had been an enjoyable few months working with them. He added that this was the first review they had done. He stated that he personally had an opportunity to learn a lot about the agency. Mr. Appletree added that he was impressed with the look that they took. He commented on the participation from many staff members. He added that while the review reflects the entire Agency, he wanted to acknowledge the work and participation of Linda Mansouri and Gail Willison. He stated that he is very proud of the rating.
Ms. Lee stated that Moody's released an MQ1 for HOC, which is the highest rating on their scale. She thanked the Commission and the staff for their time and assistance during the analysis. In particular, she stated that she wanted to highlight the work of Mr. Appletree, Ms. Mansouri and Ms. Willison. She stated that, in the numerous calls and meetings, they were a pleasure to work with and helped them to gain insight into the management of the agency.
Ms. Lee stated that she found the breadth of activities undertaken by the Agency very striking. She commented that the Agency is unique for the range of housing it supplies and the roles it plays in the County as housing finance agency, public housing authority and developer. She commented on the supportive environment of the County and the interest the County takes in providing affordable housing. She also commented on the commitment of the Agency to high-quality housing and services for the residents. She stated that the commitment is found across the range of residents and programs.
Ms. Lee stated that often times, public housing brings about negative stereotypes. She explained, however, that HOC has made its public housing blend into the community. She stated that the large amount of scattered site housing aids the integration into the community. She further stated that HOC has avoided the stereotypes because of its small, public housing family developments.
She stated that they reviewed four broad categories: management, portfolio, operations and financials. With regard to management, she credited the strong and active board as a testament to the real involvement with policy, direction and strategic planning. With regard to the portfolio, she stated that the curb-appeal and high-quality housing was noted. She then spoke of the operations and stated that the Agency had very favorable operating indicators (occupancy rate, rent collection). Ms. Lee then discussed the financials and stated that the Agency is in the "enviable position" of having a very strong combined fund balance as well as a very strong general fund. She stated that this is unlike most housing authorities, because traditionally they only deal with public housing and Section 8. She explained that the Agency has other means of generating income and that income generation puts the Agency in a very good position to provide high-quality to housing and high-quality services to residents.
She noted that the public housing operates with a fairly consistent deficit and stated that in the future the Agency should explore ways to deploy some of the resources to areas where resources have been used in the past.
She stated that, overall, HOC, because of its resources, is in a position that housing authorities across the nation are trying to move into. She noted one challenge for the future would be to develop a portfolio segmentation that would enable the Agency to identify and balance the competing financial needs of the properties. She added that the breadth of the portfolio requires the categorization of resource deployment in light of the competing needs. Other challenges she mentioned were operational in nature, such as Section 8 utilization. She suggested approaching HUD for a waiver of FMR level based on the high cost in this area. She also pointed out that the unit turn-around times in the public housing program is "pretty long". She noted that those times should be improved.
She concluded her presentation by stating that Moody's was very impressed with the work of the Commission and noted the sophistication and complexity of all that is done by the Agency. She thanked the Commission for the opportunity to work with staff and the Commissioners throughout the process.
Vice-Chairman Nelson noted that a good deal of portfolio segmentation has been done in the recent FY03 budget meetings. Ms. Willison explained how the segmentation was done. A lengthy discussion ensued.
Commissioner Bennett congratulated the staff on the Moody's rating. He stated that the Agency has an extraordinarily clever and entrepreneurial staff. He stated that the Moody's report should be distributed to the entire staff so that they can understand how others view the Agency. He also recommended that it be distributed to the elected officials.
Commissioner Bennett asked where market rate units are classified in the mixed income properties. Mr. Appletree stated that most of them are reflected in the numbers of Opportunity Housing. Mr. Bennett pointed out that, while the graph on page nine diplomatically represents the properties owned by HOC, it is also important to show that nearly half of the Agency's units operate above the usual subsidy levels. He added that it is helpful for others to understand that some of the units not only are not subsidized but subsidize the Agency.
Chairman Lasko asked how the reviewers came to the rating decision since this is the first rating they have done. Ms. Lee stated that Moody's is working on a number of ratings internally. She explained that their approach reviewed each of the component areas. She stated that they rate state housing finance agencies and have essentially applied the same categories to housing authorities. She added that with housing authorities, they chose to put the emphasis on management.
Chairman Lasko stated that the rating is a high-quality document. He asked if Moody's would be distributing the document. Ms. Lee stated that the rating document is available on their website and that they would make the document available to other housing authorities and trade associations. She stated that ratings of other housing authorities would be available to HOC in the future.
A. Authorization to Renew Line of Credit Agreement With Allfirst Bank
Mr. DeMaris introduced himself and Linda Mansouri, the Controller for the Agency. He stated that the line of credit was originally established in 1993 and several extensions have been granted. He explained that the requested renewal will extend the $10 million line of credit for two years - through June of 2004. He further explained that the primary anticipated usage would be for interim financing for the Rockville Housing Enterprises MPDU Purchase Program. He stated that the line of credit would also be available for the Agency's own MPDU purchases and HOC capital expenditures. Mr. DeMaris stated that the terms have not changed since the last amendment.

Commissioner Bennett inquired about the bank's rating due to a recent embezzlement scandal. Mr. DeMaris stated that the bank has been cleared of the charges and its standing has been ratified. Ms. Mansouri stated that staff met with bank staff who assured the agency that the corrective actions have been taken. Mr. DeMaris stated that information regarding the embezzlement is on the Allfirst website including the corrective actions.

Chairman Lasko stated that an organization that rates banks has downgraded Allfirst bank's letters of credit. Additionally, he stated that, for a few days, some of the Agency's bond issues did not trade well due to the Allfirst connection. Mr. DeMaris confirmed that the Agency does not use letters of credit with Allfirst. Chairman Lasko explained that the issues he reported did not affect the line of credit renewal request.

Commissioner Nelson moved to adopt the resolution. Commissioner Bennett seconded the motion. Affirmative votes were cast by Commissioners Galloway, Cohen, Lasko, Nelson and Bennett. Commissioner Harris was absent and did not participate in the vote.

RESOLUTION 2002- 40 RE: Authorization to Renew
Line of Credit Agreement
with Allfirst Bank

WHEREAS, the Housing Opportunities Commission of Montgomery County, has entered into a Line of Credit with Allfirst Bank (formerly First National Bank of Maryland); and

WHEREAS, the Line of Credit Agreement has been amended eight (8) times previous to this request; and

WHEREAS, the amount of the Line of Credit Agreement was increased to $10,000,000 on June 28, 1996; and

WHEREAS, the current agreement expires June 30, 2002.

NOW, THEREFORE, BE IT RESOLVED by the Housing Opportunities Commission of Montgomery County, that the Commission approves Amendment No. 9 of the Line of Credit Agreement, extending the maturity date to June 30, 2004, and authorizes the Executive Director to finalize the necessary documentation, including execution and delivery of the required contract, subject to appropriate legal review.

V. FUTURE ACTION ITEMS

Mr. Minton stated that on June 5th there would be a Single Family Program workshop, followed by a public hearing on the Housing Choice Voucher Administrative Plan. He stated that he expected the hearing to be pro forma and would only last a few minutes. He stated that the business meeting would cover changes to the Administrative Plan for the Housing Choice Voucher Program (as discussed in a prior meeting and addressed at the public hearing). He stated that other items would include the Tax Credit I exit strategy and approval of the FY03 adopted budget.

Mr. Minton stated that staff would bring to the Commission a request to apply for a SuperNofa for Resident Opportunities for Self-Sufficiency, which he explained is counseling for persons looking for housing. He added that the Agency is eligible for up to $500,000 over three years. He stated that the final items for the June 5th meeting would be a contract for windows and doors and a resolution to eliminate the inter-fund debt.

VI. NEW BUSINESS

A. Waiver of the Procurement Policy for Renovation of Housing Choice Voucher Program Facility
Mr. Minton explained that Commissioners had received a blanket request to waive the procurement policy for the renovation of the facility being leased for the Housing Choice Voucher Lease-Up Program. He explained that staff could not wait two weeks (for the next meeting) to move forward. He added that the request is for a limited time and for a specific purchase.
Commissioner Bennett asked what the parameters were on the rent. Mr. Murphy explained that the $240,000 is not for rent, but rather for tenant finish work to be done on the office space. He stated a letter of intent has been signed on space and he hoped to get the lease shortly. He went on to say that, of the $240,000 for tenant improvements or finish work, approximately $150,000 to $180,000 would be an allowance from the landlord. He further explained that the tenant finish allowance equates to approximately $15.00 per square foot.
Commissioner Bennett asked how many square feet he was seeking. Mr. Murphy stated that the current floor plan is 14,000 square feet. He explained that the landlord at North Bethesda Office Park has a second floor space which would soon be available. He added that the space would accommodate the lease-up effort as well as the potential future move of other staff to the location.
Commissioner Bennett inquired about the ground floor space as a "walk-in" facility. Mr. Murphy stated that a store front location was the original intent, however, staff has had to make a compromise between location and having a store front location. He explained that the location will be recognizable on Rockville Pike, however families will utilize an elevator to reach the second floor location.
Chairman Lasko inquired about external signage. Mr. Murphy stated that staff is still working on external signage. He noted that both Mr. Minton and Mr. DeMaris have pointed out the importance of visibility of the office. He stated that the building is easily identifiable to families and parking will be available to them. He added that the building is easily accessible to anyone traveling by car, bus or Metro, from Rockville Pike.
Chairman Pro Tem Cohen asked if staff is planning on an office in Silver Spring. Mr. Murphy stated that another office is not planned at the current time. Mr. Minton stated that he is not opposed to another site, however, he is currently focused on getting a site and getting the lease up effort underway.
Chairman Pro Tem Cohen asked what is the normal procedure in contracting with firms to do the tenant finish work. Mr. Minton explained that normally an RFP would be sent out; bids would be reviewed and then brought back to the Commission. In response to Chairman Pro Tem Cohen's question regarding the difference in procedure, Mr. Murphy confirmed that, in an effort to speed things along, staff would contact three firms and solicit bids from them. Mr. Murphy further explained that the firms being contacted have been recommended by the architect. He stated that he would like to be in contact with several of the firms to present the work to be done and to get feedback from the firms on their ability to do the work as quickly as possible.
Chairman Lasko asked if there were County rules that would prohibit the Agency from waiving the procurement policy. Mr. Tecler stated that the Agency has its own procurement policy. Vice-Chairman Nelson asked if the proposal is consistent with Federal procurement policy, in the event that HOC seeks reimbursement from HUD. Mr. Murphy stated that it was not his belief that the Federal government establishes federal procurement policy for administrative fees.
Vice-Chairman Nelson expressed his concerns about seeking reimbursement, if HAP money is used for the tenant finish work. Mr. Minton stated that he believed that in recent years HUD changed the informal contracting rules to $100,000. He added that any contracts under $100,000 can follow the informal bid procurement guidelines rather than the formal bid. He added that he was not stating it definitively.
Commissioner Bennett stated that he hoped that visibility would be achieved. Mr. Minton stated that he has directed staff to find another location if the landlord would not allow signage.
Chairman Lasko asked if staff is restricting themselves by stating that they will select the lowest bidder. Mr. Tecler stated that procurement policy usually states "lowest responsive bidder". Mr. Anderson stated that by soliciting bids from contractors recommended by the architect, staff has essentially pre-qualified the bidders. Vice-Chairman Nelson stated that adding "responsive" should be added into the recommended waiver of the procurement policy.
Vice-Chairman Nelson moved to adopt the resolution with the wording change to the policy. Commissioner Bennett seconded the motion. Affirmative votes were cast by Commissioners Galloway, Cohen, Lasko, Bennett and Nelson. Commissioner Harris was absent and did not participate in the vote.
RESOLUTION 2002 - 41 RE: Waiver of Procurement
Policy for Renovation of the
Housing Choice Voucher
Program Facility

WHEREAS, the Housing Opportunities Commission of Montgomery County has embarked on a program to utilize an additional 1500 Section 8 Vouchers in the next twelve months, through the implementation of the Housing Choice Voucher Program; and
WHEREAS, the Housing Opportunities Commission and its clients may lose the benefit of those vouchers if they cannot be utilized within the time frame which is established by the Department of Housing and Urban Development; and
WHEREAS, the complete implementation of the Commission's Procurement Policy will make it impossible for the Commission's staff to prepare the leased space which will house the Housing Choice Voucher Program in accordance with the required schedule.
NOW, THEREFORE, BE IT RESOLVED by the Housing Opportunities Commission of Montgomery County, that the HOC Procurement Policy is waived for the procurement of renovation services at the new facility for the Housing Choice Voucher Program, and the Executive Director is authorized to modify the Procurement Policy requirements as needed to meet the project schedule and budget.
B. Pet Policy
Chairman Lasko stated that he served on the Hearing Board for a case in which a woman and her 12- year-old son had lived in the unit since 1992 and had always paid their rent and kept the apartment well-maintained. He stated that the woman and her son lived in opportunity housing in a condominium where the Agency owned relatively few units.
He stated that approximately two years ago, the woman and her son acquired a dog. He stated that the family received several notices of eviction. He explained that at the Hearing Board session, the woman explained how they acquired the dog. Chairman Lasko relayed that the boy had been beaten up by some kids. Following a long recovery, the boy's father (whom they had not seen for quite some time) got him a dog for Christmas. He stated that the woman expressed how the boy had bonded with the dog over the years, and it caused them great distress to part with the dog or lose their apartment.
He stated that the strict constructionists on the Hearing Board took the lease to be more important than the human element and upheld the decision to evict them unless they gave up the dog. He stated that he was struck by the human part of the case.
Chairman Lasko stated that he understood the importance of leases and also understood the importance of the pet policy, while there is a significantly different pet policy in Public Housing. He noted that there were many other dogs in the condominium complex, including large breeds.
Chairman Lasko asked Mr. Minton to have staff take an open-minded look at the pet policy in non-public housing properties and return to the Commission with some options and pros and cons to the options.
Chairman Pro Tem Cohen asked how the case was resolved. Mr. Oxendine stated that the case was indeed sensitive and staff hesitantly moved forward to maintain consistency with the policy. He stated that the woman notified the office that she would remove the pet and the eviction was subsequently lifted.
Commissioner Bennett stated that he supported the Chair. He added that it illustrates why the Commissioners serve on the Hearing Board.
Mr. Minton stated that staff would review the Pet Policy and bring back the options. Commissioner Bennett pointed out that the cornerstone of the Policy regarding tenant behavior is related to the context in which the tenants find themselves. He stated that the Agency advises tenants to respect the behaviors of their neighbors. He noted that, in the aforementioned case, pets were permitted and the residents were not acting inappropriately in the development in which they lived. He stated that the policy might recognize that possibility.

VII. EXECUTIVE SESSION FINDINGS

The Chairman reported that the item before the Commission for consideration in Executive Session involved discussion with Legal Counsel regarding land acquisition and personnel matters. According to Section 10-508 (a)(3) of the State Government Articles of the Annotated Code of the State of Maryland, these items can be discussed in closed session.

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 and then go into Executive Session.

The meeting adjourned at 8:50 p.m.

Respectfully submitted,

D. Scott Minton
Secretary-Treasurer
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