HOUSING OPPORTUNITIES COMMISSION OF MONTGOMERY COUNTY
10400 Detrick Avenue
Kensington, Maryland 20895
(240) 773-9025
M I N U T E S
February 6, 2002
02 - 03
The Annual meeting of the Housing Opportunities Commission of Montgomery County was conducted on Wednesday, February 6, 2002 at 10400 Detrick Avenue, Kensington, Maryland beginning at 7:00 p.m. Those in attendance were:
Present
Ralph D. Bennett, Jr., Chair
Warren Lasko, Vice Chair
Richard Y. Nelson, Jr., Chair Pro-tem
Marjorie M. Harris
Norman Cohen
Y. Monroe Galloway
Charles Hopkins
Also Attending
Scott Minton, Executive Director Ken Tecler
Annie Alston Zachary Smith
Roy Appletree Patrick Maier
Earl DeMaris Bill Murphy
Lillian Durham Stuart Raynor
Vivian Benjamin Harold Kramer
Dan Sachs Andrew Oxendine
Eileen Abbey Ronnie Haber
Doug Ryan Dana Miller
Scott Ewart Gail Willison
Bobbie DaCosta Linda Mansouri
Jane Harrah Gail Gunod-Green
Douglas Long Marsha Batista
Jerry Matthews Nancy McLaughlin
Bounheng Inversin Les Kaplan
Dana Miller
Benetta Waller, Special Assistant to the Commission
Guest
Barbara Goldberg-Goldman Sister Dorothy Owen, RSCJ
Michael Goldman Joy Savage, Opening Doors
Ariel Goldman Amber Haag, Independence NOW
Gasten Fox, RAB Nancy Tenney, LWV
Lloydie Zaiser, Former HART President Fran Einsenstat, Fannie
Mae
John Nevin, Fannie Mae Lola Plees, JCC
Laura van Tosh Cymando Henley
Chairman Bennett convened the annual meeting of the Housing Opportunities Commission at 7:10 p.m. and welcomed everyone. He asked Sister Dorothy Owen of Christ the King Church to give the invocation.
Awards and Recognition
Chairman Bennett presented plaques to Ruth's Chris Steak House and HART for their outstanding volunteer work in helping HOC residents. Ms. Zaiser accepted the plaque on behalf of HART.
The 2002 Housing Honor Roll award was presented to Barbara Goldberg-Goldman for her untiring efforts of providing a balanced affordable housing supply to Montgomery County. In addition, Chairman Bennett presented her with a resolution unanimously adopted by the Commission, a plaque for her volunteer efforts with the Affordable Housing Conference, a bouquet of flowers, and placement of her name on the plaque of other Housing Honor Roll recipients. In her acceptance speech, Ms. Goldberg-Goldman stated that she was truly honored to be recognized with the Commission's highest honor.
The Year in Review
Mr. Minton reviewed the activities of the Commission during the past year. He first noted that the theme for the year has been "Housing Works for Everyone", and what better way to capture the theme than to have it expressed by residents. A video presentation was provided from various residents in HOC housing who expressed what HOC means to them. Following this, Mr. Minton reported that the aftermath of September 11th has changed the nation, changed assumptions and priorities, particularly for HOC residents. He said most of HOC's efforts focused on two areas: assisting the housing development efforts of other organizations and improving HOC's existing properties. Several development partnerships, both for-profit and non-profit, were created. HOC financed 740 housing units throughout the County - 536 units were at affordable rates. Stewartown and Georgian Court were acquired and renovated during 2001. He noted that the transformation of these properties was amazing. The interiors and exteriors of Stewartown were completely renovated. At Georgian Court, the baths and kitchens were redone and a community center was built. The County provided generous financial assistance for both developments. Renovations are also occurring at Emory Grove, Camp Hill Square, and Middlebrook Square. He pointed out that the quality of the workmanship, warranted an upgrade by HUD Inspectors.
In addition, Mr. Minton pointed out some of the major improvements that are planned for the coming year, particularly in the elderly buildings, and that a new initiative for project-based vouchers is also planned. The housing choice voucher program, formerly Section 8, was recently assessed to be a standard performer. He noted that this was a significant milestone. Also, staff has continued to work to provide homeownership opportunities among moderate and low-income residents in the County. HOC's financial programs have helped more than 400 new homebuyers in the County. Fifty of the new homebuyers were HOC residents. A pilot program has been launched for the homeownership voucher program. He said HOC continues to be dedicated to assisting residents improve their lives and achieve economic independence.
Following the Year in Review report, the Chairman turned the meeting over to the Executive Director for the election of officers.
Election of Officers
Mr. Minton opened the floor for the election of officers. For the election of Chair, Commissioner Bennett nominated Commissioner Lasko. In nominating Commissioner Lasko, Commissioner Bennett stated that Mr. Lasko has been a Commissioner for three years and has gained the confidence of all of his colleagues and many of the staff. He said Mr. Lasko has demonstrated a willingness, good humor, resilience and the knowledge and care that is demanded of good Commissioners. In addition, Mr. Lasko has exercised that knowledge with good judgement, constructive suggestions and a demonstrated willingness to ask hard questions. The nomination was seconded by Commissioner Nelson, who echoed Commissioner Bennett's comments. In addition, he took the opportunity to express appreciation to Commissioner Bennett for the excellent job he has done over the past three years as Chairman by being not only an elegant spokesman, but an effective advocate within the County and state, as well as doing an excellent job to energize the Commissioners and staff in spite of the frequent roadblocks. Chairman Bennett received a round of applause. The nominations were closed on the one name. Commissioner Lasko was elected Chairman by acclamation.
The nomination for the election of Vice Chair was opened. Commissioner Galloway nominated Commissioner Nelson to serve as Vice Chair. The nomination was seconded by Commissioner Cohen. There were no other nominations and the nomination was closed on the one name. Commissioner Nelson was elected Vice Chair by acclamation.
The nomination for the election of Chair Pro Tem was opened. Commissioner Hopkins nominated Commissioner Cohen to serve as Chair Pro Tem. The nomination was seconded by Commissioner Nelson and the nominations were closed on the one nomination. Commissioner Cohen was elected Chair Pro Tem by acclamation.
The position of Secretary-Treasurer is held by the Executive Director and reappointment was by affirmation of all Commissioners.
Chairman Lasko, before calling a recess, thanked Commissioner Bennett for an absolutely extraordinary job in serving as chairman for the past four years. He said that, at some time in the future, he wanted to recognize Commissioner Bennett more appropriately. He expressed his appreciation to the Commissioners in the vote of confidence in passing the gavel to him. He said his short-term goal was to live up to the standard that Commissioner Bennett has established and he deserves the credit for building a team of Commissioners who work effectively. He also expressed thanks to the staff and noted that he has not worked with a finer group of people and that he looks forward to working together in the future.
Following a ten-minute recess, Chairman Lasko convened the meeting at 8:30 p.m. and asked for consideration of the Consent Calendar. Commissioner Cohen moved, seconded by Commissioner Galloway and the affirmation of Commissioners Hopkins, Galloway, Cohen, Bennett, Nelson and Harris to adopt the consent calendar as presented.
I. CONSENT CALENDAR
A. Approval of Minutes of January 23, 2002 - The minutes were
approved as written.
B. Authorization for Executive Director to Execute a new Contract for Natural Gas Supply and Related Services - The following resolution was adopted:
RESOLUTION 02 - 12 RE: Authorization for Executive
Director to Execute a new Contract for Natural Gas Supply and
Related Services
WHEREAS, the Housing Opportunities Commission (HOC) has participated with other local government jurisdictions, with Montgomery College in the lead, in a cooperative aggregation group to procure competitive natural gas supply; and
WHEREAS, time will be of the essence in accepting the offer from the lowest and most responsive bidder; and
WHEREAS, the HOC will utilize a form of contract developed by Montgomery County previously identified to bidders.
NOW, THEREFORE, BE IT RESOLVED by the Housing Opportunities Commission that the Executive Director, or his designee, is hereby authorized to execute a contract for the Supply of Natural Gas and Related Services to all HOC owned and managed properties which use natural gas with the lowest responsible bidder established in accordance with the determination resulting from the Invitation for Bids issued by a consortium of Montgomery County government agencies.
C. Authorization to Submit the State Partnership Rental Housing Application - The following resolution was adopted:
RESOLUTION 02 - 13 RE: Authorization to Submit the State
Partnership Rental Housing Application
WHEREAS, the Housing Opportunities Commission of Montgomery County (HOC) has for more than ten years used the financing available under the State's Partnership Rental Housing Program (PRHP) to acquire more than 140 scattered-site units for occupancy by households earning no more than 50% of the State median; and
WHEREAS, to enable HOC to continue to acquire such units in the months and years ahead, it needs to maintain and extend PHRP financing for these purposes; and
WHEREAS, the Commission has prepared and submitted to the State an application seeking PRHP funds sufficient to acquire another 60 units under the program.
NOW THEREFORE, BE IT RESOLVED that the Housing Opportunities Commission of Montgomery County RATIFIES with the same force and effect as if such action had been taken prior hereto:
1. Submission of an application and related exhibits and documents to the State for financing under the Partnership Rental Housing Program for the acquisition of 60 units.
Execution by the Executive Director of such application and
related exhibits and documents.
D. Confirmation of 1-9-02 Executive Session Action Regarding
Stewartown Tax Credit Partnership - The following resolution was
adopted:
RESOLUTION 02 - 14 RE: Confirmation of 1-9-02 Executive
Session Action Regarding Stewartown Tax Credit Partnership
WHEREAS, the Housing Opportunities Commission is the general partner in MV Affordable Housing Associates Limited Partnership (the "Partnership"), owner of Stewartown Homes in the Montgomery Village area of the County; and
WHEREAS, the Commission, by Resolution 00-13, dated February 23, 2000, approved a proposal by Newport Partners LLP ("Newport") to syndicate the purchase of the equity in the Partnership; and
WHEREAS, Newport had in turn brought in Verizon Capital Corp. as investor, subject to execution of partnership agreement and related documents; and
WHEREAS, the Commission was advised in executive session at its meeting of December 5, 2002 that Verizon had withdrawn as investor before signing the Partnership Agreement; and
WHEREAS, further efforts by Newport to place the equity in
the Partnership were deemed unacceptable because the tenders were
by their terms not binding until the Partnership closing; and
WHEREAS, on instructions from the Commission, staff discontinued
further negotiations with Newport; and
WHEREAS, the Commission determined that there was insufficient time to readvertise the offering in order to maximize the benefits and opportunities available to the partnership; and that, for that reason, a request for proposals and notice to interested persons could not be timely completed; and
WHEREAS, for the foregoing reason, the Commission instructed the staff to solicit offers for the equity in the Partnership from First Union Bank and Allfirst Bank, both of whom have participated in previous HOC tax credit transactions; and
WHEREAS, in response to that solicitation, First Union Bank offered to buy the Partnership Interest for $2,831,767, the price that Verizon had offered to pay, and Allfirst offered to pay $2,751,789.
WHEREAS, in executive session at its meeting of January 9, 2002, the Commission directed staff to proceed toward a closing with First Union Bank at the price stated above; and
WHEREAS, The Commission now wishes to confirm in public session the action taken at the aforesaid executive session.
NOW THEREFORE, BE IT RESOLVED by the Housing Opportunities Commission of Montgomery County that:
1. The offer of First Union Bank to purchase the equity interest in the Partnership for $2,831,767 is hereby approved.
2. The Executive Director is authorized, on behalf of the Commission, to execute with First Union Bank or its designee the Partnership Agreement and related documents, on the terms stated above.
II. INFORMATION EXCHANGE
A. Executive Director's Report - Mr. Minton added the following items to his written report:
1) HOC has been invited by Senator Ida Ruben to participate in a meeting on Thursday in Silver Spring concerning her movement to declare Silver Spring as an Art's District. Developers, artists, politicians, and others will be in attendance to discuss what needs to be done to obtain that designation.
2) Staff met with OMB today to review the budget. Given the current climate, HOC did as well as could be expected. There does not appear to be any relief from the County in this year's budget.
3) On Monday, the PHED Committee reviewed the PILOT agreement and there were no great changes. HOC was able to defend against a cap on the PILOT. The option on a cap was a council staff recommendation. If there is a cap placed on the PILOT by the County Council vote, HOC would be exempt.
4) On February 26th, the Council of Governments (COG) will hold a Section 8 directors' meeting to review common area concerns. Bill Murphy will attend that meeting.
5) MAHRA will be holding an Executive Directors' meeting in New York on February 23-24, 2002 as a sign of solidarity to help New York recover from September 11th.
B. Commissioner Exchange
Commissioner Cohen reported that he recently attended a meeting and had a conversation with a Commissioner from Arlington County. He noted the enormous difference between what is done in Arlington County and what HOC does. He indicated that Arlington's Commission was almost informal and operated in more of an advisory role. He said the responsibility that the County has given HOC is quite dramatic, given what is occurring across the country.
Commissioner Bennett noted DHCD's 2001 Annual Report was on Compact Disk (CD) in the Commission's packet. After reviewing the CD, he noted that this was the most compelling argument for the agenda in Annapolis next week. He noted the asymmetry for the allocation of funds for public housing and homeownership between Baltimore and Baltimore County and the rest of the State. He urged Commissioners and staff to compare the numbers, which are quite staggering, given the fact that Montgomery County is a bigger jurisdiction than Baltimore City. Mr. Minton noted that population wise, Montgomery County is larger than six states.
Commissioner Nelson reported that he and Zachary Smith attended the Maryland Affordable Housing Coalition meeting in Baltimore on Monday. He noted the outpour of support for the Housing Day in Annapolis and how HOC was the major partner in this event. Following the conference, he met with Peter Engel from DHCD regarding the probable lack of rental housing money. It does not appear favorable that HOC will get the funds and this will need to be stressed at Housing Day.
In reference to Commissioner Cohen's comments, Chairman Lasko said it was humbling to think about how special and unique HOC is and that it is certainly a tribute to all prior Commissioners who set the goals and standards and built the institution that the current Commissioners are charged with carrying forth.
C. Community Forum - No comments were made.
III. DELIBERATION/ACTION CALENDAR
A. Briefing on Housing Day in Annapolis
Mr. Smith reported that as of today, HOC will be taking 70 people to Annapolis. He pointed out that this is the first time that there has been a statewide Housing Day in Annapolis. He said the genesis of this came from the legislative planning session held at Kensington Park with Commissioner Nelson, several staff people and people from the County looking at ways to call attention to housing needs and energize housing programs at the State level. This generated a statewide coalition that would advocate for housing in Annapolis. He said the Housing Forum galvanized and put the wheels in motion for Housing Day in Annapolis. He noted that the event is gaining momentum among participants and sponsors. The media has been interested in the event. An article appeared in Monday's Montgomery Journal, and Peter Whoriskey, a reporter for the Washington Post, called for information on a major series about housing in the Washington Metropolitan area that the Post is covering. In addition, Commissioner Nelson appeared on Cable TV to discuss the event. In all, the media coverage has been good.
Just to reiterate Commissioner Nelson's comments, Mr. Smith said it is a very sobering atmosphere in Annapolis. However, this is an opportunity for HOC to exert its political will. He stated that if this is not done, HOC will not get any funding requested. A very comprehensive briefing packet was provided, which entails the talking points on the two major priorities, when meeting with the Montgomery County delegation. The two priorities are: 1) A request that the Partnership Rental Housing program receive $15 million in funding. As of today, there is $8 million earmarked for this program, and HOC is requesting $4.7 million, and 2) Passage of House Bill 192 for a Joint Committee on Housing Policy. He emphasized that the beauty of this event was that it is not only Montgomery County advocating for housing, but it is a statewide effort.
Mr. Smith reviewed the itinerary for the event. The groups will arrive at the Parish Hall of St. Anne's Church with a continental breakfast and orientation. Those scheduled to speak will include Commissioner Lasko, Jim Upchurch from MCCD, Senator Chris Van Hollen, and Delegate Rudy Cane. The delegation will then walk over to the State House building where they will meet and greet the Senators and Delegates as they enter the Chambers. Delegate Kumar Barve would officially acknowledge the Montgomery County Delegation. Lunch would be held in the Montgomery County Delegation Conference Room where the Delegates and Senators will stop by to talk. At this point, 29 legislators have indicated that they would be at the luncheon. He said, even though this is a big challenge, there is a good group of people planning to attend, and because of the fact there are key delegates on important committees, there is a great possibility of achieving the Housing Day goals.
Commissioner Bennett asked if assignments would be made for visitation to the various delegates and senators offices. Mr. Smith said people are encouraged to call and set up appointments with your specific delegate, but that focus would be given to those delegates who are strategic key committees. He noted that Delegate Sharon Grosfeld and Senator Van Hollen have introduced legislation (Bill-192) that would establish a Joint Committee on Housing, and people should be encouraging their delegate to support this legislation.
Mr. Smith introduced the members of the Legislative Work Group, who were present that have been working hard on bringing this effort to fruition. Four Commissioners indicated that they would be attending Housing Day and riding the bus.
Commissioner Nelson acknowledged the work of Mr. Smith, Ms. Waller and the Legislative Work Group and apologized for not being able to attend, but his out-of-town commitment conflicts with his schedule. He reinforced the statement that the Legislature can increase the amount of the commitment to the Rental Housing Partnership program over and above the amount the Governor proposes.
Mr. Minton also expressed kudos to Mr. Smith and the Legislative Work Group for their efforts on Housing Day in Annapolis.
IV. INFORMATION FOR FUTURE ACTION
Mr. Minton reviewed the information for future action. The second quarter budget statements will be reviewed by the Budget and Finance Committee and reported to the full Commission. Contracts for the elevators at the elderly buildings will be on the agenda, as well as the contract for the kitchen and bath replacements at Waverly House, and fan coil replacement at Holly Hall. Also scheduled is the Oak Mill I and II refinancing.
V. EXECUTIVE SESSION FINDINGS
The Chairman reported that the items before the Commission for consideration in Executive Session involve discussion with Legal Counsel regarding a land acquisition, a legal issue, 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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