HOUSING OPPORTUNITIES
COMMISSION OF
10400 Detrick Avenue
(240) 773-9025
SPECIAL SESSION OPEN MEETING
M I N U T E S
03 - 06
A special session meeting of the Housing
Opportunities Commission of Montgomery County was conducted on
Present
Richard Y. Nelson, Jr.,
Chair
Norman Cohen, Vice Chair
Y. Monroe Galloway, Chair
Pro Tem
Ralph D. Bennett, Jr.
Michael J. Kator
Absent
LaKeyia L. Thompson
Also
Attending
Lembit Jogi
Guests
none
Chair Nelson convened the meeting of
the Housing Opportunities Commission at
I. DELIBERATION
A.
Authorization for Executive
Director to Execute Contract for Replacement of Slate Roofs and Related Work at
Holly Hall Apartments –
Mr.
Raynor stated that the lowest qualified bidder is James Meyers Company. Their bid of $711,744 is below the
consultant’s estimate of $800,000.
Mr.
Raynor presented the Commission with samples of the slate, imitation slate and
the asphalt shingle. The asphalt shingle
was immediately ruled out. Mr. Raynor
then provided background on the Majestic Slate which has been on the market for
15 to 20 years. The product has a
50-year warranty. He informed the
Commission that the consultant has expressed that he is not in favor of using
the Majestic Slate.
A lengthy discussion ensued
wherein the consultant’s concerns about color degradation were discussed. Commissioner Kator indicated that slate also
has color degradation and growth of things such as moss. Commissioner Kator informed the Commission
that there is another product which is a textured asphalt material which
closely resembles slate at a lower cost than slate. He stated that he was surprised that staff
did not investigate and price the better quality asphalt products.
Additionally, Commissioner Kator stated that, as a public agency, it would be
hard to defend utilizing $750,000 to put a slate roof on a property.
There was discussion of the
better asphalt product and speculation of the cost.
Commissioner Bennett stated
that he is favor of slate. He stated
that the rejoinder to public criticism is that the Agency is trying to protect
the quality of the asset. Commissioner Kator stated that the heavily textured
asphalt shingles are not easily identifiable.
They closely resemble slate as an installed product.
In response to a question by
Chair Nelson,
Chair Nelson stated that he
had not heard enough objections to the Majestic Slate that would justify
utilizing slate.
There was a discussion of
re-bidding or submitting a change order to get prices for the better, textured
shingle. Mr. McIlroy proposed entering
into a contract for the work and submitting a change order for the upgraded
shingle. Mr. Minton confirmed that, if
asphalt shingles were selected, the low bidder (Interstate Corporation) would
be the contractor. There was a brief
discussion about the labor costs associated with the shingles.
After a brief discussion, it
was decided staff would assess the better quality textured asphalt
shingle. Upon satisfaction with the
product for the Holly Hall roofs, the Executive Director would then have the
authority to execute a contract with Interstate Corporation. If staff is not satisfied with the product,
they would have to come back to the Commission with alternatives. It was noted that the resolution would be
revised accordingly.
Commissioner Kator moved to
adopt the revised resolution.
Commissioner Bennett seconded the motion. Affirmative votes were cast by Commissioners
Galloway, Cohen, Nelson, Bennett and Kator.
Commissioner Thompson was absent and did not participate in the vote.
RESOLUTION:
2003 – 48 RE: Authorization
for Executive
Director
to Execute
Contract
for Replacement of
Slate
Roofs and
Related Work at Holly Hall
Apartments
WHEREAS, the Housing Opportunities Commission (HOC) issued an
Invitation for Bids (IFB) for replacement of the slate roofs at Holly Hall
Apartments; and
WHEREAS, in response to the IFB three
firms submitted bids for replacement of the slate roof with slate or with one
of two other products; and
WHEREAS, HOC staff and the consultant
determined that Interstate Corporation is the lowest responsive and responsible
bidder for the installation asphalt shingles at Holly Hall.
B. Authorization for
Waiver of HOC Procurement Policy for Selection of General Contractor for the
Econo Lodge in
Lembit Jogi, of the Real Estate Division, informed the
Commission that HOC is acting as the Development Coordinator for the
acquisition and renovation of the Econo Lodge for Special Needs Housing.
Mr. Jogi reminded the Commission that a similar request
for a waiver of the procurement policy was approved for the selection of the
architect for this project. Currently,
staff is seeking a waiver of the procurement policy to select the general
contractor. He explained that staff
recommends limiting the bidding to five qualified general contractors. He listed two reasons for limiting the
solicitation of bids: 1) to expedite the process and 2) the Department of
Housing and Community Affairs (DHCA) would like to ensure that a qualified
contractor is selected.
Mr. Jogi directed the Commission’s attention to a letter
from DHCA which requests utilization of the expedited approach. He then directed their attention to the list
of qualified contractors.
In response to a question by Vice-Chair Cohen, Mr. Jogi
confirmed that the contract will contain a provision for a post-completion
audit. Mr. Jogi stated that the books
will be open and will show all of the costs of the sub-contracted costs,
materials, and labor.
Mr. Jogi stated that the lowest responsive bidder will be
selected.
Mr. Minton asked what parties would be involved in
contractor selection. Mr. Jogi stated
that the development agreement, which has not been signed, specifies that the
DHCA must approve the final selection of the general contractor.
Mr. Minton stated that he wants the development agreement
signed prior to entering into contract with a general contractor.
Chair Nelson and Mr. Minton agreed that the only requested
change to the procurement policy is the solicitation of bids from five
qualified contractors. All of the other
elements of the HOC procurement policy still apply.
It was determined that approval and authorization to
enter a contract with a general contractor must come from the Commission after
the selection has been made.
There was brief discussion pertaining to subcontractors
pricing and costs. It was confirmed that
the general contractor will include the subcontractors’ costs in their guaranteed
maximum price.
Mr. Jogi stated that the list of general contractors was
generated by the PLQ development team.
The list was mutually agreed upon.
Commissioner Bennett moved to adopt the resolution. Commissioner Galloway seconded the motion. Affirmative votes were cast by Commissioners
Cohen, Kator, Bennett, Nelson and Galloway.
Commissioner Thompson was absent and did not participate in the vote.
RESOLUTION: 2003
– 49 RE: Authorization for Waiver of HOC Procurement
Policy for Selection of General Contractor for the Econo Lodge in
NOW, THEREFORE, BE IT RESOLVED by the Housing Opportunities Commission of Montgomery County that the Executive Director is authorized to move forward with an RFP for general contractors limited to the list identified by the PLQ Team.
There being no further
business to come before this session of the Commission, a motion was made,
seconded and unanimously adopted to adjourn.
The
meeting adjourned at
Respectfully submitted,
D.
Secretary-Treasurer
/drm
HOUSING OPPORTUNITIES
COMMISSION OF
10400 Detrick Avenue
(240) 773-9025
M I N U T E S
03 - 05
A regular meeting of the Housing Opportunities
Commission of Montgomery County was conducted on
Present
Richard Y. Nelson, Jr.,
Chair
Norman Cohen, Vice Chair
Y. Monroe Galloway, Chair
Pro Tem
Ralph D. Bennett, Jr.
Michael J. Kator
LaKeyia L. Thompson
Also
Attending
Scott Minton, Executive Director Ken
Tecler
Annie Alston Joy
Flood
Lillian
Peter Engel Earl
DeMaris
Zachary Smith Harold
Kramer
Scott Ewart Patrick
Mattingly
Vivian
Benjamin Steve
Lukaczer
John
Rossbach Kayrine
Brown
William
Anderson Tom
DeBrine
Dana Miller, Special Assistant to the Commission
Guests
Jeff
Kirby, J. Kirby Development
Frankie
Blackburn, Impact
Robin
Racer, Impact
Chair Nelson convened the meeting of
the Housing Opportunities Commission at
I. CONSENT
CALENDAR
A. Approval
of Minutes of
B. Authorization for Executive Director
to Execute Contract for Site Improvements at Tobytown, Parkway Woods, Ken Gar,
RESOLUTION: 03 – 40 RE: Authorization
for Executive
Director to Execute Contract for Site Improvements at Tobytown, Parkway
Woods, Ken Gar, Washington Square, Towne Centre Place and Sandy Spring Meadow
C. Authorization for Executive Director
to Execute Declaration of Covenants and Grant of Stormwater Easement and Right
of Way for
RESOLUTION: 03-41 RE:
Authorization for Executive Director
to Execute Declaration of Covenants and Grant of Stormwater Management Easement
and Right of Way for
WHEREAS, the civil engineers
prepared a Declaration of Covenants and a Grant
of Stormwater Management Easement and Right of Way
for
WHEREAS, counsel for the Housing
Opportunities Commission has reviewed
the documents; and
NOW,
THEREFORE, BE IT RESOLVED by the Housing Opportunities
Commission that the
Executive Director, or his designee, is hereby authorized to execute a
Declaration of Covenants and a Grant
D. Authorization for Executive Director
to Execute Easement Agreement for Elizabeth House with Alexander House
Development Corporation For Emergency Ingress and Egress from Elizabeth House
- The following Resolution was adopted:
RESOLUTION: 2003-42 RE: Authorization for
Executive
Director to Execute Easement Agreement for Elizabeth House with
Alexander House Development Corporation For Emergency Ingress and Egress from
Elizabeth House
WHEREAS, the County requires that the Silver Spring Regional Senior Center to
be constructed at Elizabeth House have a second means of emergency ingress and
egress to cross into property owned by Alexander House Development Corporation;
and
WHEREAS, counsel for the Alexander House Development Corporation has prepared
an Easement Agreement.
NOW, THEREFORE, BE IT RESOLVED by the
Alexander House Development Corporation that the Executive Director of the
Housing Opportunities Commission, or his designee, is hereby authorized to
execute an Easement Agreement for Alexander House Development Corporation with
Elizabeth House for Emergency Ingress and Egress from Elizabeth House.
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 the County Department of Health
and Human Services has completed program reviews on several Resident Services
division’s programs: Housing Counseling,
McKinney III, the Service Linked Housing program at Tanglewood and the three
Emergency Assistance programs. Annual
reviews include site visits. Staff is
pleased to report that all programs have been found to be in full compliance.
2) Mr. Minton informed the Commissioners that the Commission on
Children and Youth will hold its annual awards ceremony on May 8th. He stated that Ms. Jerry Matthews, Senior
Administrator of Resident Services Programs, will be recognized for her
extraordinary contribution to children and youth of
3) On April 22nd,
William Anderson, Procurement Officer, and Gayle Mealy, Buyer,
participated in a
small-business fair at HUD headquarters.
The purpose of the fair was to present HUD’s vision for small businesses,
HUD’s procurement activities and introduce business opportunities for small
business, disadvantaged businesses, minority and / or women owned business, and
service disabled owned firms. Approximately 1,000 people attended the event.
4) Mr. Minton informed the
Commission that a budget hearing was held earlier that day with the full
Council on HOC’s budget requests. He
stated that, at that time, $80,000 is on the reconciliation list for the Family
Resource Centers. There is $12,000 on
the reconciliation list to partially underwrite HUD’s community service
requirement. The Parent Resource Centers
(PRC) are on the reconciliation list with three options: keep all five open, keep three open, or keep
two open. He explained that the option
of keep all five open was submitted that day by Councilmember Perez. Mr. Minton
concluded by stating the outcome will be determined in the coming weeks.
Ms.
Frankie Blackburn and Ms. Robin Racer of Impact Silver Spring gave a
presentation on the organization’s role in the community. Ms. Blackburn stated that the organization
was formed to create a community leadership initiative to provide training and
support for the diverse members of the
Impact
Ms. Blackburn explained that
Impact Silver Spring is working with the public schools in
Ms. Blackurn and Ms. Racer
outlined several ways that HOC could become involved with Impact Silver
Spring. They stated that they welcomed
HOC staff, residents or Commissioners participation in the program. Also, they offered to assist residents by
providing facilitators, staffing or mentorship for them to develop programs and
community leadership opportunities.
Chair Nelson stated that HOC
is involved in a number of projects in
Commissioner Bennett stated
that it would be helpful to understand the community’s perception of HOC. He stated that it is harder to organize
tenants in a community than it is to organize property owners. He noted that activism in
Commissioner Bennett made
several observations and asked for their assistance in informing her members
about services provided by HOC such as the
B. COMMISSIONER
EXCHANGE
Vice-Chair
Cohen informed the Commission that he attended a recognition dinner for 80
senior residents who volunteer at HOC.
The residents received an award from the Governor’s Office on Community
Service and Volunteerism. The program
was held at
On behalf of the Commission,
Chair Nelson congratulated Stuart Raynor and Paulette Dudley for their recent
Chair Nelson informed the
Commission that the grand opening of the
Chair Nelson noted that a
resident of
C. COMMUNITY FORUM - no comments made.
III. COMMITTEE REPORTS
Development and Finance Committee - Commissioner Bennett stated that
Middlebrook is slated for renovation which will entail elimination of a small
number of units, decreased bedroom counts in a small number of units and
construction of a new community building.
He explained that the project was priced by an estimator hired by the
architect at $4.5 million. The only
construction bid on the project was $5.8
million.
Commissioner Bennett
explained that, although the item before the Commission on this night pertains
to funding the gap in construction pricing for the project, staff is also
working to determine why the estimate and the bid were so far out of line with each
other. He pointed out that the project
is being re-bid.
Earl DeMaris, Chief
Financial Officer, introduced Kayrine Brown, Portfolio Manager. Mr. DeMaris explained that HUD is allowing
public housing authorities to essentially sell bonds and receive capital funds
up-front. He further explained that the
bonds would be paid by future capital funds.
In an effort to fund the gap, HOC could pledge future capital funds for
Middlebrook to raise approximately $2.5 million. He stated that the bonds would be outstanding
for 20 years.
Mr. DeMaris stated that
Maryland CDA is coordinating the bond issue on behalf of most of the housing
authorities in
Commissioner Bennett asked
if any excess bond proceeds could be used for other projects. Ms. Brown explained that funds could not be
transferred from one project to another.
Projects must have prior approval from HUD to be included in the bond
issue.
Mr. Minton explained that
$1.5 million has been authorized by the Housing Initiative Fund for
Middlebrook. Mr. Minton stated that HOC
could ask for DHCA’s approval to transfer those funds to another project.
In response to a question by
Commissioner Kator, Mr. Minton explained that the renovation plan is complete;
however, the costs have still not been finalized. Mr. Minton further explained that, after the
project has been re-bid, staff will return to the Commission in September with
the final cost estimate and bid. Mr.
DeMaris explained that staff is before the Commission at present to meet the
State’s deadlines.
Commissioner Bennett stated
that he would expect the new bids to be returned before September. Stuart Raynor, Director of Housing
Management, stated that the re-bid will take approximately 90 to 120 days.
In response to Mr. Minton’s
suggestion about reducing the amount of HIF funds slated for the project, he
stated that the Turnkey debt forgiveness could be reduced. Mr. Minton agreed. Chair Nelson stated his preference to reduce
the Turnkey debt forgiveness.
Commissioner Bennett moved to adopt the resolution. Vice Chair Cohen seconded the motion. Affirmative votes were cast by Commissioners Thompson, Kator, Galloway, Nelson, Bennett and Cohen.
RESOLUTION: 03-43 Re: Authorization to
Capital
Funding Program
Bond
Issue for
WHEREAS, the feasibility study for
the renovation of Middlebrook Square Apartments has been ongoing and
anticipates the demolition of eight existing units and the construction of four
replacement units; and
WHEREAS, the total renovation cost
was initially estimated at $4,508,923 and later revised to $5,884,410 and,
after considering available sources of funds, yielded a financing gap,
initially of $1.4 million and revised to $2.8 million; and
WHEREAS, the Development and Finance Committee, at its meeting on
WHEREAS, the staff has subsequently identified an alternate source of gap
financing and now has the opportunity to participate in CDA’s Capital Fund
Securitization Revenue Bond Issue which provides capital funds now but
obligates future Capital Program grants from HUD of up to $235,000 annually for
20 years; and
WHEREAS, the Development and Finance Committee, on April 29, 2003, authorized
staff to continue to participate in the bond issue that would raise $2,500,000
of renovation proceeds plus costs related to the issuance of the bonds; and
WHEREAS, there are no risks to the Commission, but the benefits include
raising funds for immediate public housing needs and availing the OHRF for use
in other affordable housing developments that do not have alternative sources
of gap financing.
NOW, THEREFORE, BE IT RESOLVED by the Housing Opportunities
Commission of Montgomery
County, that it hereby authorizes the staff to proceed with the review and
processing of the necessary documents that allows it to raise $2,844,500 as gap
financing for the renovation Middlebrook Square Apartments and authorizes the
Executive Director to execute loan documents directly related to the
transaction.
Chair Nelson recused himself
from the next items before the Commission.
Mr. DeMaris explained that staff was seeking approval of two projects
for inducement. He introduced the
developer for both projects, Jeff Kirby.
Mr. DeMaris explained that
staff is seeking inducements for Randolph Manor and Olney Manor
Apartments. He stated that both
developments are 100% affordable and 100% tax credit elderly developments. He stated that both projects serve a broad
and deep public purpose. Mr. DeMaris
stated that staff is enthusiastic about the projects because a lack of bond cap
has prevented them from seeking inducements for approximately one year.
In response to a question by
Vice-Chair Cohen, Vivian Benjamin, Senior Underwriter, stated that amounts of
the bond issues are $5.5 million and $7.2 million for Randolph Manor and Olney Manor respectively.
Mr. DeMaris explained that these projects would not have been brought forward
were it not for the additional bond cap provided to HOC by Governor Ehrlich.
Commissioner Bennett stated that the projects were
brought to the Development and Finance Committee and the Committee was
enthusiastic about them. He noted that
the County is short on affordable housing for the elderly and the
RESOLUTION: 03-44 Re: Adoption of Inducement
Resolution for
WHEREAS, one of the public purposes of the Housing Opportunities Commission of
Montgomery County, ("the Commission") is to promote the construction
of and acquisition of multifamily rental housing developments in Montgomery
County to be occupied by eligible persons and families; and
WHEREAS, the Commission is authorized to issue tax‑exempt bonds to
provide the acquisition, construction and permanent financing for such
developments; and
WHEREAS, the Commission has been asked to consider the issuance of tax-exempt
bonds to finance the construction and permanent loan for a multifamily rental
housing development, Randolph Manor Apartments (an 83 unit development located
at 601 East Randolph Road, Silver Spring, Montgomery County, Maryland) which is
intended for occupancy in substantial part by eligible persons (the “Project”);
and
WHEREAS, the Commission sees this financing arrangement as an opportunity to
further its goals in meeting said public purposes.
NOW, THEREFORE, BE IT RESOLVED by the Housing
Opportunities
Commission of
BE IT FURTHER RESOLVED that it is the intention of the Commission to issue
tax‑exempt bonds in the maximum principal amount of $6,050,000 to provide
financing for the acquisition, construction, improvement and permanent
financing of the development project.
The foregoing represents an expression of intent in order to satisfy the
provision of Section 1.150-2 of the United States Income Tax Regulations, and
is not a commitment by the Commission to issue said bonds. Issuance of said bonds shall 1) be at the
discretion of the Commission and 2) shall be subject to the final satisfactory
underwriting and approval of all documents, provisions, covenants, and all
other provisions as may be required by the Commission and 3) shall be subject
to final acceptance of same by the Owner of the Project.
RESOLUTION: 03-45 Re: Adoption
of Inducement
Resolution for Olney Manor Apartments
WHEREAS, one of the public purposes
of the Housing Opportunities Commission of Montgomery County, ("the
Commission") is to promote the construction of and acquisition of multifamily
rental housing developments in Montgomery County to be occupied by eligible
persons and families; and
WHEREAS, the Commission is
authorized to issue tax‑exempt bonds to provide the acquisition,
construction and permanent financing for such developments; and
WHEREAS, the Commission has been
asked to consider the issuance of tax-exempt bonds to finance the construction
and permanent loan for a multifamily rental housing development, Olney Manor
Apartments (a 100 unit development located at 18301 Georgia Avenue, Olney,
Montgomery County, Maryland) which is intended for occupancy in substantial
part by eligible persons (the “Project”); and
WHEREAS, the Commission sees this
financing arrangement as an opportunity to further its goals in meeting said
public purposes.
NOW, THEREFORE, BE IT
RESOLVED by
the Housing Opportunities
Commission of
BE IT FURTHER RESOLVED that it is the intention of the Commission to issue tax‑exempt bonds in the maximum principal amount of $7,920,000 to provide financing for the acquisition, construction, improvement and permanent financing of the development project. The foregoing represents an expression of intent in order to satisfy the provision of Section 1.150-2 of the United States Income Tax Regulations, and is not a commitment by the Commission to issue said bonds. Issuance of said bonds shall 1) be at the discretion of the Commission and 2) shall be subject to the final satisfactory underwriting and approval of all documents, provisions, covenants, and all other provisions as may be requir