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HOUSING OPPORTUNITIES COMMISSION OF MONTGOMERY COUNTY
10400
Detrick Avenue
Kensington, Maryland 20895
(240) 773-9025
M I N U T E S
July 17, 2002
02 - 13
A regular meeting of the Housing Opportunities
Commission of Montgomery County was conducted on Wednesday, July 17,
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
Ralph
D. Bennett, Jr.
Y.
Monroe Galloway
Michael Kator
Absent
Norman Cohen, Chair Pro-tem
Marjorie M. Harris
Also Attending
Scott Minton, Executive
Director
Ken Tecler
Annie
Alston
Roy Appletree
Bill
Murphy
Harold Kramer
Lillian Durham
Earl DeMaris
Zachary Smith
Andrew Oxendine
Tom
DeBrine
Joy Flood
Vivian
Benjamin
Dan Sachs
Stuart
Raynor
Les Kaplan
Doug
Ryan
Todd Thompson
Walter Lees
Annette
Hackey
Delores
Cole
Sandy Tuttle
Scott
Ewart
Minna Simmons
Patrick
Maier
John Vass
Paula
Phillips
Kay Masood
Robin
Feller
Ursula Brinkley
Charlotte
Andrews
Mary Phillips
Dana Miller, Acting Special Assistant to the
Commission Kayrine Brown
Guests
Scott Reed,
Magruder/Reed Communities, LLC
Dean Packard,
Magruder/Reed Communities, LLC
Rob Goldman,
Montgomery Housing Partnership
Blanca Ortiz
Delia Rodriguez
Ida Lawrence
William Veclow
Gwen Brooks
Jimmy Wong
Robert Andrews
Barbara Galloway
Vikki Jean
Baptiste
Sharon Simmons
Bernice Gibbs
Chairman Lasko called the meeting to order at 7:15 p.m. Chairman
Lasko then notified Commissioners that the Consent Calendar had been
modified to reflect separate consideration of retirement
Resolutions. He then called for consideration of the modified
Consent Calendar, which included only items A, B, and C from the
Agenda. Vice-Chairman Nelson moved, seconded by Commissioner
Galloway, for adoption. Affirmative votes were cast by Commissioners
Kator, Nelson, Bennett, Galloway, and Lasko. Commissioners Harris
and Cohen were absent and did not participate in the vote.
I. CONSENT CALENDAR
A.
Approval of Minutes of June 26, 2002 – The minutes
were approved as written.
B. Approval to Issue a RFP to Solicit Professional
Underwriting Services – the following resolution was
adopted:
RESOLUTION: 02 -54
RE:
Approval to Issue a RFP to Solicit for
Professional Underwriting Services
WHEREAS, the
Commission selected professional services providers for housing
finance activities in 1996, and 1999; and
WHEREAS, the
time period for members of the underwriting team: Merrill Lynch,
Legg Mason Wood Walker, Ferris Baker Watts, The Chapman Company, and
Wheat First Securities will expire in February 2003; and
NOW THEREFORE, BE
IT RESOLVED that the Commission authorizes the issuance of a RFP
to solicit for underwriter services in August 2002, and
NOW THEREFORE, BE
IT RESOLVED the Commission will designate who will serve on the
Evaluation Committee.
C. Authorization of the Formation of Ownership Entity
for the Montgomery Arms Apartments– the following resolution
was adopted:
RESOLUTION: 02 - 55
RE: Authorization of the Formation of Ownership Entity for
the Montgomery Arms Apartments
RESOLUTION: 02 - 56
RE: Retirement Resolution for
Minna Simmons
WHEREAS, Minna
Simmons began her career with the Housing Opportunities Commission
of Montgomery County in June, 1981 as the Resident Manager of
Elizabeth House Apartments, a senior rental community located in
downtown Silver Spring; and
WHEREAS, while at Elizabeth House, Minna readily accepted
additional responsibilities on her own initiative (Sheltered Housing
Meals, voter registration transportation, interdenominational
religious services, in-house banking services); and
WHEREAS, in July, 1987, Minna became a Scattered Site
Manager managing approximately 350 Moderately Priced Dwelling Units
located in Wheaton, Olney, Silver Spring, Bethesda and Gaithersburg;
and
WHEREAS, over
the years, Minna was very successful in filling vacant units,
performing interior and exterior inspections and monitoring lease
compliance; and
WHEREAS, Minna
was a key staff person for administering the Commission’s successful
Turnkey III and Section 5(h) homeownership programs; and
WHEREAS, Minna
represented the Commission at numerous homeowner association and
community meetings in a professional manner; and
WHEREAS, Minna
served on the Police Chief’s Community Advisory Board and was
instrumental in the placement of a police substation at the Parkway
Woods Public Housing property.
NOW, THEREFORE BE
IT RESOLVED that the Housing Opportunities Commission of
Montgomery County extends its thanks and appreciation for the many
contributions Minna Simmons made during her career to the Housing
Opportunities Commission and its residents; and
Be It Further
Resolved that the Commission wishes Minna Simmons the best of
health and happiness upon her retirement on July 31, 2002.
Chairman Lasko
called forth retiring staff member Charlotte Andrews and asked her
to introduce the guests who accompanied her. Ms. Andrews introduced
her husband, Robert Andews and her neighbor of 31 years, Mrs.
Gibbs. After reading the proposed Resolution, Chairman Lasko called
for a motion for adoption. Commissioner Kator moved, seconded by
Vice-Chairman Nelson, to adopt the Resolution. Affirmative votes
were cast by Commissioners Lasko, Nelson, Kator, Bennett, and
Galloway. Commissioners Cohen and Harris were absent and did not
participate in the vote.
RESOLUTION: 02 -
57 RE: Retirement
Resolution for Charlotte Andrews
WHEREAS, the
Housing Opportunities Commission is indebted to Charlotte Andrews,
Payroll Specialist, for her contribution to the Agency and for her
eleven and one-half years of invaluable and committed service from
December 13, 1990 through July 31, 2002; and
WHEREAS,
Charlotte began her career with the Housing Opportunities Commission
as an Accounting Clerk in the Finance Department and was
subsequently promoted to Payroll Specialist on May 5, 1993, where
she quickly rose to the challenge of the continually changing
payroll responsibilities; and
WHEREAS, due
to Charlotte’s excellent job performance she was awarded the
Supervisor’s Award. She also participated in the conversion to the
Liberty Payroll System, the creation of the Time and Attendance
Policy, and the Pay for Performance Team; and
WHEREAS,
Charlotte continued to rise to the ever increasing demands of the
job of payroll for the Housing Opportunities Commission, she
continued to grow. In recognition of her unwavering commitment to
excellence, Charlotte was awarded several Executive Director’s
Awards over her years of service; and
WHEREAS,
Charlotte spent eight years as the sole member of the Payroll
Department while the number of employees continually grew. Her
dedication can be measured by the fact that during those eight years
Charlotte never missed a deadline and no employee ever missed a
paycheck. Charlotte was finally given the benefit of an assistant
in May 2001.
NOW THEREFORE BE
IT RESOLVED, that the Housing Opportunities Commission extends
sincere thanks to Charlotte Andrews for eleven and one-half years of
loyal service and wishes her much success, health and happiness on
the occasion of her retirement.
II. INFORMATION EXCHANGE
A.
Executive Director's Report - Mr. Minton added the following
items to his written report:
1)
Mr. Minton acknowledged both Ms. Simmons and Ms. Andrews and
stated to each that they would be missed by himself and the staff.
He noted that Ms. Andrews husband, Robert, also retired from HOC
several years ago.
2) Mr. Minton announced that Ms. Benetta Waller has
submitted her resignation. He stated that Ms. Waller has been on a
leave-of-absence to care for her aging parents. She wrote in her
letter that her parents continue to need her assistance and she
planned to remain in Tennessee to care for them. Mr. Minton stated
that staff would start the process of finding a replacement.
3) Mr. Minton informed the Commission that Kenneth Reese,
the man convicted of murdering Tony Davis, was sentenced to 50 years
in prison. According to the Montgomery Journal, the accomplice will
be sentenced as an accessory after the fact. Mr. Minton noted that,
with the forthcoming sentencing of the accomplice, the case will be
brought to a close.
4) Mr. Minton directed the Commission’s attention to an
article in the Fort Worth Star and stated that the Agency is very
favorably mentioned with regard to its approach to mixed income
housing. He stated that the article is part of a series surrounding
a controversy over mixed-income housing proposed by the Fort Worth
Authority as part of the HOPE VI program.
6) On Monday July 22nd, the PHED and HHS
committees of the County Council will meet jointly to discuss
special needs housing. Mr. Minton stated that HOC, DHCA, HHS and
the Coalition for the Homeless will participate. He added that
another joint session will be held to discuss use of excess County
land for affordable housing. He noted that it appears that the
first priority for excess land is special needs housing, with
affordable housing following as a secondary priority. HOC, DHCA and
HHS will participate in the second joint session. The joint
session will be followed by action on the new MPDU requirements.
7) Mr. Minton stated that, earlier that same day, he and
Tyrone Hill of the Human Rights Commission, taped a 15-minute
segment of Montgomery County Comments, as a follow-up to the July 16th
Housing Choice Voucher Kick-off. He stated that items discussed
were why outreach efforts are needed, changes to the program, and
the source of income law. An appeal was made to property owners to
participate in the program. The segment will be shown several times
in the coming weeks.
Resident Services Core Services – Elderly and Family Services
Ms. Durham introduced Les Kaplan, Resident Services Supervisor. Mr.
Kaplan outlined the presentation and introduced Ms. Hackey, Resident
Counselor at Middlebrook Square and Mr. Vass, Supportive Services
Manager, who delivered the presentation.
Ms. Hackey and Mr. Vass provided the Commission with background
information on the many services available to residents at the
elderly and family sites. They stated that the counselors at these
sites provide and coordinate these services to promote housing
stability, self-sufficiency, independence, and assimilation into the
broader community with the underlying goal of helping people
maintain their housing.
They provided information on the resident demographics at the
Elderly/Disabled sites and the Family sites. Additionally,
information was provided on proactive interventions, move-in visits,
advocate services, information and referrals, counseling/ crisis
intervention and community partnerships.
Finally, information was provided on the rent delinquency counseling
and lease violation counseling. It was explained that, from July
2001 to July 2002, 495 Writs were filed due to rent delinquency at
the elderly and family sites. Because of the interventions and
counseling provided, only six evictions resulted in that time
period.
At
the end of the presentation, elderly and family site counselors
introduced themselves. Todd Thompson, Resident Counselor at Arcola
Towers, introduced residents who also volunteer at the property.
The residents presented a basket of vegetables they had grown in the
garden at Arcola Towers to the Commission. Mr. Thompson informed
the Commissioners that the garden is also attempting to raise money
for a new fence.
Vice-Chairman Nelson stated that it is very impressive and staff
should be congratulated for the work they do and success they have
achieved. Chairman Lasko concurred.
Chairman Lasko presented Ms. Durham with an award from NAHRO for the
Parent Resource Center. He stated that although the award is for
one program, it reflects all of the work done by Ms. Durham and all
of the Resident Services staff and volunteers. He congratulated Ms.
Durham and her staff.
Vice-Chairman Nelson stated that HUD Assistant Secretary Liu was
very impressed with the level of services provided by HOC. He noted
that, during his visit, Mr. Liu spent a good deal of time speaking
with staff about the types of services the Agency provides. He,
too, commended the staff for the work they do.
B. COMMISSIONER
EXCHANGE
Commissioner Galloway stated that she attended a meeting with Dr.
James Williams, Deputy Superintendent of Montgomery County Schools,
on June 29th. She stated that Ms. Jerry Matthews and Mr.
Tocque Peyton of the Resident Services Division, not only attended
the Saturday meeting, but also brought residents to the meeting so
that they could participate in the meeting. Commissioner Galloway
commended Ms. Durham and thanked her staff for continuing to
facilitate a relationship with the Agency and the County schools.
Vice-Chairman Nelson thanked Ms. Flood and staff for taking action
on an anonymous letter he received, which alleged fraud by an HCVP
participant.
Vice-Chairman Nelson also thanked staff for a report on Kensington
Park and the impact on federal long-term care insurance. He stated
that the report was done very well.
Vice-Chairman Nelson asked for an explanation for the decision to
delay the conversion to the new HCV software system. Mr. Ewart
stated that a conversion to the new system would possibly hinder the
lease-up effort. He stated that, although the best product has been
selected, moving forward with the conversion would possibly create
problems and slow down the lease-up initiative.
Mr. Minton stated that, rather than attempting the conversion and
possible malfunctions, staff determined that is was better to employ
IT resources for training new staff on the existing system and
support. Mr. Ewart stated that, over the next year, staff would use
the time to ensure that the new software will work in the ideal
fashion once it is installed.
Chairman Lasko stated that he attended the official Housing Choice
Voucher Kick-off. The event was covered by the local papers. He
stated that it was a wonderful event, at which former Redskin
football player Larry Brown attended.
C. COMMUNITY FORUM
- no comments made.
III. COMMITTEE REPORTS
Legislative and Regulatory Committee – Committee Chair
Galloway stated that the planning for the Commissioners’ Lunch
with the Candidates is going well. The event will be hosted in
conjunction with the League of Women Voters and held on Monday, July
29th at Bauer Park Apartments. She stated that the
luncheon will last from noon to 2 p.m.
Commissioner Galloway stated that event will be a forum to share
with gubernatorial, state delegation, and 8th District
Congressional candidates the services and programs HOC provides to
the County. A demonstration of the new voting machines will be
provided. She stated that candidates Van Hollen, Shapiro and
Vollmer have committed to attend. Staff members from the offices of
Councilmember Blair Ewing and Senator Mikulski will also attend.
Commissioner Bennett directed the Commission’s attention to the Go
Montgomery publication. He stated that it is the County Executive’s
transportation policy. Mr. Minton pointed out that Mr. Art Holmes
has been appointed to lead the Go Montgomery Task Force.
Commissioner Bennett stated that he attended the NAHRO summer
conference in New York City. He stated that he was approached by
Mr. Conrad Egan, Chairman of the
Fairfax County Redevelopment and Housing Authority (FCRHA),
about having a joint meeting of the FCRHA and the Commission. At
the conference, Mr. Egan gave a presentation on the Millennial
Housing Commission (MHC). Mr. Bennett stated that there is no
follow-up strategy for the MHC. Congress did not create such a
function for it and no one in Congress has championed the report.
He stated that it is up to housing agencies to ensure that the
issues raised by the report are acted upon.
Mr. Bennett also attended a session on the Olmstead decision. He
stated that the decision is essentially an unfunded mandate from the
judiciary. Mr. Bennett stated that he would rely on the Resident
Services Division to guide the Agency through the required actions
generated by the decision.
Mr. Bennett reported that a meeting of the Development and Finance
Committee was held on July 9th. He informed the
Commission that several items were discussed and will be brought to
the full Commission in the coming months. The items include: an
aggressive and interesting proposal for Pooks Hill, which requires
obtaining a variance from the Planning Board; a project at the Dry
Cleaning Institute in Silver Spring; and the role of Master Plans in
the zoning capacity of the County. He pointed out that the Master
Planning process in the County systematically reduces the zoning by
approximately 50% from what is actually allowable. He stated that
the Agency must work to identify strategies for advancing more
affordable housing in an atmosphere which “downzones” at the outset.
Chairman Lasko commented on the role of the Committees in previewing
complex proposal and offering guidance to the full Commission when
action is necessary.
IV. DELIBERATION / ACTION CALENDAR
A.
Request for Certification as Affordable Housing Pursuant
to Annual Growth Policy – Layhill Village East
Vice-Chairman Nelson moved to approve the resolution. Commissioner
Bennett seconded the motion. Affirmative votes were cast by
Commissioners Nelson, Bennett, Lasko, Galloway and Kator.
Commissioners Cohen and Harris were absent and did not participate
in the vote.
RESOLUTION: 02 - 58
Re: Request for Certification as “Affordable Housing” Pursuant to
the Annual Growth Policy – Layhill Village East
WHEREAS, the
Montgomery County Annual Growth Policy provides a process for a
proposed housing development in an area closed to new residential
development to obtain a Special Ceiling Allocation in order to
construct affordable housing; and
WHEREAS, such
a development first must be certified as an affordable housing
development by the Housing Opportunities Commission (HOC) in order
to apply for a Special Ceiling Allocation; and
WHEREAS,
Magruder/Reed Communities, LLC, has applied to HOC for certification
of a proposed for sale residential development as affordable
housing; and
WHEREAS, the
proposed for sale residential development to be known as Layhill
Village East will be located on the east side of Layhill Road north
of Queensguard Road and will contain 6 affordable housing units
(20.6%), for sale to households with incomes below 50% of the area
median; and
WHEREAS, the
six affordable units will be offered for sale at a price not to
exceed $117,513 and will contain 3 bedrooms with 2 ½ baths each and
be comprised of 1,400 square feet of finished space with an
unfinished basement; and
WHEREAS, the
proposed for sale residential development complies with the
guidelines set forth in Montgomery County’s Annual Growth Policy, by
requiring that occupancy be limited to households with incomes not
exceeding 50% of the area median.
NOW, THEREFORE, BE
IT RESOLVED that the Housing Opportunities Commission of
Montgomery County, certifies the proposed for sale residential
development of Layhill Village East as affordable housing.
B.
Adoption of a Resolution to Refinance Dring’s Reach and
Insure the Loan Under the FHA Risk Sharing Program
Mr. DeMaris introduced Vivian Benjamin, Senior Underwriter for
Multi-Family Programs, and Mr. Rob Goldman, President of the
Montgomery Housing Partnership. Mr. DeMaris stated that bonds were
originally issued in 1991 and 1992 to finance a loan to the
Montgomery Housing Partnership, Inc. (MHP). MHP is a 501(C)(3)
non-profit and has asked HOC to refinance the property to take
advantage of lower interest rates.
Mr. DeMaris stated that staff has proposed refinancing the property
under the FHA Risk Sharing Program. However, after discussion with
the Maryland Housing Fund (MHF), the MHF has verbally agreed to
re-insure the Agency’s risk on the transaction. He stated that
staff seeks approval of the Resolution, which has MHF insuring the
risk, as a condition of refinancing.
Chairman Lasko stated that, as a matter of principle, a valuation
based on tax-exempt financing is not truly representative of value.
He pointed out that the only party that would consider purchasing
the property under those terms would be HOC. He went on to say
that, in the case of a default, there would be no private market for
the property at the appraised “value”, with conventional financing.
He stated that this valuation approach is not one with which he
agrees. He explained that, in the case of private investors in the
future, he would express his concern.
Ms. Benjamin addressed Chairman Lasko’s concerns and there was brief
discussion on the valuation and financing.
Commissioner Bennett moved to adopt the Resolution. Commissioner
Galloway seconded the motion. Affirmative votes were cast by
Commissioners Nelson, Kator, Lasko, Bennett and Galloway.
Commissioners Harris and Cohen were absent and did not participate
in the vote.
RESOLUTION: 02-59
RE:
Adoption of a Resolution to
Refinance Dring’s Reach
Apartments and Insure
the Loan Under the FHA
Risk Sharing Program
Risk Sharing Program
WHEREAS, the
Commission intends to issue tax exempt bonds in September 2002, to
finance certain multi-housing projects to assist persons of eligible
income (the "bond issue"); and
WHEREAS,
Montgomery Housing Partnership, Inc. ("MHP"), has requested that the
Commission include in the bond Issue a loan to refund the current
outstanding bonds for Dring's Reach Apartments, finance improvements
to the property, and pay certain transaction costs; and
WHEREAS, as a
means of credit enhancement, it is proposed that the Commission and
FHA insure the new mortgage for Dring's Reach Apartments pursuant to
the FHA Risk Sharing Program; and
WHEREAS, while
the Commission generally does not utilize financing under the FHA
Risk Sharing Program for properties it does not own or otherwise
control, it recognizes that the mission of MHP, as a non-profit
corporation, is similar to the Commission's role and is willing to
consider such financing in this situation; and
WHEREAS, the
Commission desires to obtain reinsurance of its portion of the
insurance to be provided under the FHA Risk Sharing Program; and
WHEREAS, the
Maryland Housing Fund has expressed an interest in reinsuring the
Commission's risk for Dring's Reach Apartments, but has not issued a
written commitment for such reinsurance at this time; and
WHEREAS, the
Commission desires to provide the loan to MHP in its bond issue
subject to a satisfactory commitment from the Maryland Housing Fund
for reinsurance and compliance with the Commission's standard
underwriting requirements for such loans.
NOW, THEREFORE, BE
IT RESOLVED by the Housing Opportunities Commission of
Montgomery County, that the refunding of the Dring's Reach
Apartments loan for MHP be included in the bond issue subject to
receipt of a written commitment to reinsure the Commission's
insurance risk by the Maryland Housing Fund and final underwriting;
and
BE IT FURTHER
RESOLVED by the Housing Opportunities Commission of Montgomery
County, that the inclusion of the refunding of the Dring's Reach
Apartments loan is further subject to issuance of a written
commitment for financing and receipt of a final approval letter from
FHA under the Risk Sharing Program.
C.
Authorization to Submit FY2002 Section 8 Management
Assessment Program Certification to HUD
Vice Chairman Nelson moved to approve the Resolution. Commissioner
Bennett seconded the motion. Affirmative votes were cast by
Commissioners Kator, Galloway, Bennett, Nelson and Lasko.
Commissioners Harris and Cohen were absent and did not participate
in the vote.
V. FUTURE ACTION ITEMS
Mr. Minton informed Commissioners that agenda items for the August
14th meeting include: adoption of a Pet Policy for
non-public housing units, the Middlebrook Square renovation plan,
and a market study for the Wheaton Metro development. Mr. Minton
stated that final decisions for the sales agreement for Wheaton
Metro will come before the Commission in September. He explained
that a short time extension may be necessary.
Other items for the August 14th meeting will include Sole
Source Restrictions for the Executive Director. Mr. Minton
explained that a recommendation will be brought to the Commission to
establish approval restrictions in the Procurement Policy.
Staff will also bring to the Commission a request for authorization
of the 2002 bond issue,) the Foulger Pratt and Drings Reach bond
issue, and approval of the electrical upgrade contracts for
Tanglewood and Sligo Hills. Additionally, there will be a report on
the status of preservation properties.
VI. NEW BUSINESS
Chairman Lasko stated that the Gazette reported that the Planning
Board rejected a proposal by Rosedale Park to buy their way out of
the MPDU requirement. Chairman Lasko requested that a letter be
written to the Planning Board expressing our appreciation of their
action.
VII. EXECUTIVE SESSION FINDINGS
The
Chairman reported that the items before the Commission for
consideration in Executive Session involved discussion with Legal
Counsel regarding a legal matter. According to Section 10-508 (a)(3)
of the State Government Articles of the Annotated Code of the State
of Maryland, this item 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 8:40 p.m.
Respectfully
submitted,
D. Scott Minton
Secretary-Treasurer
Drm
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