HOUSING OPPORTUNITIES
COMMISSION OF
10400 Detrick Avenue
(240) 773-9025
M I N U T E S
03 - 09
A regular meeting of the Housing Opportunities
Commission of Montgomery County was conducted on
Present
Richard Y. Nelson, Jr.,
Chair
Y. Monroe Galloway, Chair
Pro Tem
Ralph D. Bennett, Jr.
Michael J. Kator (late)
LaKeyia L. Thompson
Absent
Norman Cohen, Vice Chair
Also
Attending
Lillian
Jane Harrah
Guests
none
Chair
Nelson called the meeting to order at
I. CONSENT
CALENDAR
A. Approval
of Minutes of
B. Authorization to Submit FY2003 Section
8 Management Assessment Program Certification to HUD - The following
Resolution was adopted:
RESOLUTION: 03-79 RE: Authorization
to Submit
FY2003 Section 8 Management Assessment Program
Certification to HUD
WHEREAS, HUD regulations require that the Housing
Opportunities Commission submit the Section 8 Management Assessment Program
certification annually; and
WHEREAS, the certification, which measures the status of HOC’s administration of the Section 8 Program for Fiscal
Year 2003, must be submitted to HUD within 60 days of the end of the fiscal
year.
NOW,
THEREFORE, BE IT RESOLVED by the
Housing Opportunities Commission of Montgomery County, that staff is hereby
authorized to submit the FY 2003 SEMAP Certification to HUD.
C.
Authorization of Renewal of
Lupine Partners Contract for Yardi Conversion -- The following Resolution was adopted:
RESOLUTION: 03-80 RE: Authorization of Renewal of Lupine Partners Contract for Yardi
Conversion
WHEREAS, the
Housing Opportunities Commission (HOC) authorized implementation of Yardi as a replacement for CCS; and
WHEREAS, in response to the RFP for
project management services, six companies responded; and
WHEREAS, HOC staff selected Lupine
Partners as the most qualified company to handle project management services
for Phase I; and
WHEREAS, HOC staff determined that
Lupine Partners should provide project management services in Phase II based on
their knowledge of the software product, relationship with the vendor (Yardi) and their experience with HOC during Phase I.
D.
Authorization for Executive
Director to Execute Contract for Construction of
RESOLUTION: 03-81 RE: Authorization for Executive
Director
to Execute
Contract
for Construction
of
WHEREAS, the Housing Opportunities Commission (HOC) issued an Invitation for
Bids (IFB) for construction of the Silver Spring Regional Senior Center at
Elizabeth House (the center); and
WHEREAS, the
center is a joint venture of the state, the county and Holy Cross Hospital (the
consortium); and
WHEREAS, the state and the county are providing all funding required for
construction of the center; and
WHEREAS, HOC is providing space in Elizabeth House for the center; and
WHEREAS, HOC is providing construction management services for construction of
the center and will have a contract with the consortium as its agent; and
WHEREAS, in response to the IFB nine firms submitted bids for construction of
the center; and
WHEREAS, HOC
staff and the architect determined that EMSI Engineering James is the lowest
responsive and responsible bidder for construction of the center and related
work.
NOW, THEREFORE, BE
IT RESOLVED by the Housing Opportunities Commission that the Executive
Director or his designee is hereby authorized to execute a contract subsequent
to approval by the consortium and as agent for the consortium with EMSI
Engineering in the amount of $474,519.00 for construction of the Silver Spring
Regional Senior Center at Elizabeth House and related work and to approve
contract modifications that do not exceed ten percent (10%) of the original
contract amount in accordance with the Housing Opportunities Commission
Procurement Policy.
E. Adoption
of Resolution of Appreciation for Charles A. Moose- The following
Resolution was adopted:
RESOLUTION : 03 - 82 RE:
Resolution of
Appreciation
for
Charles
A. Moose
WHEREAS, during his tenure, Chief Moose strongly supported the
Housing Opportunities Commission (HOC) and its residents; and
WHEREAS, Chief Moose’s support of on-site police coverage and
live-on police in public housing communities led to a substantial decrease in
crime; and
WHEREAS, under Chief Moose’s
leadership, officers were community-minded and assumed leadership of
several youth programs within HOC communities; and
WHEREAS, Chief Moose personally intervened to maintain these
programs when federal funding was eliminated.
NOW, THEREFORE, BE IT RESOLVED BY the
Housing Opportunities Commission of Montgomery County, that it hereby presents
this Resolution of Appreciation to former Chief Charles A. Moose for his
dedicated service to the Commission and its residents.
BE IT FURTHER RESOLVED that the
Commission takes this opportunity to extend best wishes, success and happiness
to former Chief Moose in his future endeavors.
F. Authorization
to Submit FY2003 Public Housing Assessment System (PHAS) Management Operations
Certification to HUD- The following Resolution was adopted:
RESOLUTION : 03 - 83 RE:
Authorization to Submit
FY2003
Public Housing
Assessment
System
(PHAS)
Management
Operations
Certification to
HUD
WHEREAS, the U.S. Congress mandated and HUD implemented a
Public Housing Assessment System (PHAS) as a national set of performance
indicators for Public Housing Authorities; and
WHEREAS, Management Operations is one of the four components of
PHAS; and
WHEREAS, by HUD regulations, the Commission is required to
certify its performance concerning Management Operations 60 days after the end
of its fiscal year on HUD Form 50072; and
WHEREAS, by memorandum dated
NOW, THEREFORE, BE IT RESOLVED by the Housing Opportunities
Commission of Montgomery County that the Executive Director or his designee is
authorized to certify and submit the FY2003 Public Housing Assessment System
(PHAS) Management Operations Certification (HUD Form 50072).
G. Adoption
of Resolution Recognizing Zachary D. Smith- The following Resolution
was adopted:
RESOLUTION :
03 - 84 RE:
Resolution Recognizing
Zachary
D. Smith
WHEREAS,
Zachary D. Smith began his career
with the Housing Opportunities Commission in 1997 as the Director of the Public
Affairs Division (later to be renamed the Office of Legislative & Public
Affairs); and
WHEREAS,
Zachary D. Smith brought the concept
of proactive public relations to HOC, arrived at a time when HOC was searching
to become more involved with the community at large; and
WHEREAS, Zachary D. Smith
initiated the Good Neighbor Program at HOC, which was
formulated to maintain two-way communications with the agency’s customers and
stakeholders.. The Good Neighbor Program was formulated on
the premise that it is better to work at preventing problems than solving them. Highlights of the program were the
establishment of the Housing Resource Service (for customer service), the HOC
website and a program of quarterly Good Neighbor newsletters
and luncheons; and
WHEREAS, Zachary D. Smith initiated property profile sheets to
be included in HOC information packets and used HOC properties for luncheons
and other events to garner additional media exposure; and
WHEREAS, Zachary D. Smith was the driving force behind the HOC
sponsored Annual Housing Day in Annapolis, HOC’s
Housing Forum, HOC’s Candidates Forum
and the Legislative Work Group; these activities resulted in the Public Affairs
Division being converted to the Legislative & Public Affairs Division; and
WHEREAS, under Zachary D. Smith’s direction, and in
conjunction with the Rental Assistance Division, HOC completed the Housing
Choice Voucher lease-up advertising initiative, which
successfully recruited more than 200 new
landlordsMontgomery County.; and
WHEREAS, Zachary D. Smith played an integral
role in HOC’s receipt of
an additional $20 million in bond cap from the State of Maryland during 2003,
the development of the HOC Strategic plan for 2003 – 2008, and in successfully
advocating for the creation of a Statewide Study Commission on Housing for
Maryland earlier this year.
NOW,
THEREFORE, BE IT RESOLVED, that the
Housing Opportunities Commission of Montgomery County extends sincere thanks
and appreciation for the many contributions Zachary D. Smith has made during
his six years of loyal service to the Commission and the citizens of
II. INFORMATION EXCHANGE
A. Executive
Director's Report -
1)
The Executive
Director has appointed
2)
Two residents
have been selected to receive MAHRA scholarships. The $500 scholarships were awarded to Nancy
Wilson and Karla Simms. The funds can be
used for any activity that supports enrollment and completion of educational
course work. Ms. Simms, an FSS
participant, will use her funds to further her LPN training. Ms. Wilson, a Housing Choice Voucher participant,
will use the funds to continue her college education.
3)
The County’s
agricultural fair will begin on August 8th. HOC will have a booth featuring the Agency’s
Mortgage Purchase Program and Public Affairs will disseminate general
information about HOC’s programs and policies. The
fair will run for one week. Ms. Alston
encouraged
4)
The 2003
President’s Day snow storm (February 14th -17th) caused
the State to petition the Federal Office of Emergency Management (FEMA) for
“official disaster” status for 18 of
5)
Ms. Alston stated
that HOC received a 2003 Award of Merit from NAHRO for its partnership with
Rockville Housing Enterprises (RHE) which enabled RHE to expand its
entrepreneurial program to include purchasing MPDUs
using tax credit financing.
6)
On August 5th,
Emory Grove,
B. COMMISSIONER EXCHANGE
Chair
Nelson stated that he and Commissioner Bennett (Chair of the Development
Committee) met with Elizabeth Davison, Director of the Department of Housing
and Community Affairs (DHCA) on August 5th. He stated that they met to discuss items on
the agencies’ mutual agendas. He stated
that the meeting resulted in a good exchange of ideas and information to
continue ongoing efforts to maintain a good relationship with DHCA.
C. COMMUNITY FORUM - no comments made.
III.
COMMITTEE REPORTS
Legislative and Regulatory Committee – Chair
Pro Tem Galloway informed the Commission that the Legislative Committee met
earlier in the week to discuss the Fourth Annual Housing Forum, which will be
held on September 24th. She
stated that notices will be mailed during the following week. She explained that participants will be able
to register on the web. This year’s
theme is “Make Room for Affordable Housing”.
Liaison to Resident Advisory Board – Commissioner Thompson presented the results
of the RAB survey of Housing Choice Voucher Program participants. She noted that the RAB conducts surveys of
various resident populations on a bi-annual basis. The surveys attempt to ascertain resident
satisfaction levels for various services provided by HOC. Commissioner Thompson explained that this is
the first time that the HCVP participants have ever been polled. She noted that the majority of respondents
are very satisfied with their individual landlords or management firms and with
the services provided by HOC staff. The
respondents rated the social services programs as “very satisfactory” and FSS
received the most favorable rating.
Commissioner Thompson stated that the only noteworthy concern was with
“ease of communication” which received only a 49% satisfactory rating.
Commissioner
Thompson stated that the Commission will soon be receiving notification of the
results of the recent RAB election of officers and the names of the new members
who will join the RAB.
In response
to a question by Chair Nelson,
There
was a brief discussion about a question on the survey related to moving. Ms. Durham explained that the question was
poorly worded and may have been confusing to the respondents. She stated that the responses are reflective
of that.
IV. DELIBERATION
A.
Adoption of a Bond
Authorizing Resolution for
Chair
Nelson recused himself. Chair Pro Tem Galloway noted that revised
materials had been distributed.
Ms.
Benjamin stated that the total estimated construction time is approximately 14
months, with the project reaching sustaining occupancy in 2005. She stated that the property will add to the
County’s stock of housing for the elderly.
Ms.
Benjamin stated that the bonds will be privately placed with CharterMac, which means that they will have limited
distribution and will only be sold to qualified investors. She stated that the public purpose is very
good – 20% of the units will be made available to families at or below 40% of
AMI and 80% of the units will be made available to families at or below 60% of
AMI. The entire development will be
supported through the Low Income Housing Tax Credits. Ms. Benjamin stated that the development has
support in the County.
Ms.
Brown presented the Commission with an updated bond cap matrix. The matrix compares the efficiency of bond
cap usage to finance each transaction.
The matrix shows a comparison of the debt service savings to the
developer to the amount of bond cap over the life of the loan and the amount of
market rate rent that is given up by the developer by using bond cap. Ms. Brown stated that the higher the index,
the more public purpose is achieved which results in more efficient use of bond
cap. Ms. Brown explained that, for
Randolph Manor, for each dollar of savings to the developer, there is a gain of
$1.33 of public purpose. For each dollar
of bond cap used, the Agency gains approximately $2.47 in public purpose. With regard to market rent, for each dollar
of market rent given up by the developer, the Agency achieves $.35 in public purpose.
Ms.
Brown explained that several qualitative variables are considered in the
decision-making process. She stated that
the need for affordable housing for seniors and the location of the property
are such qualitative variables. Ms.
Brown stated that market studies and studies conducted by the Park and Planning
Commission indicate the need for affordable housing for seniors and that over
the next ten years, the County will need to produce 200 -250 units per year to
fulfill the needs of seniors. With
regard to location, it is estimated that there are approximately 14,000 seniors
residing in that market area. However,
there are only two properties in that area which target the need for seniors.
With
regard to project design and amenities, Ms. Brown stated that the building will
be a three story building with two elevators.
She noted that the amenities package outperform similar properties in
the market area. She also noted that the
rent will be approximately $400 to $500 below general market rent for
independent living for seniors.
Ms.
Brown concluded by stating that staff strongly believes that the financing
decision to use bond cap is appropriate.
In
response to a question by Commissioner Bennett, Ms. Brown stated that 4% tax
credits will be used. There was a brief
discussion about the competition for tax credits.
Commissioner
Bennett moved, seconded by Commissioner Thompson, to adopt the resolution. Affirmative votes were cast by
RESOLUTION:
03 – 85 RE: Adoption of a Bond Authorizing Resolution for
Due to its
length, the text of the resolution is not printed here. A copy of the resolution is on file in the
office of the Commission.
There was a lengthy
discussion about the bond cap matrix and comparisons of properties.
B. Amendment of Calendar Year 2003
Georgian Court Operating Budget -
Ms.
Willison stated that there is no change in the income, the expenses, or the
non-operating income. She explained that
the revised chart more clearly groups the expenses and show how the $64,000 of
cash flow will be distributed. She
stated that the budget amendment will reduce net cash flow before distributions
to $64,058.51. Ms. Willison stated that
the amount is consistent with the pro forma, HUD requirements and the
expectations of the limited partners.
Although there is a reduction in cash flow, there is no budget impact
because all of the cash flow from the property was restricted to this property.
Ms.
Willison stated that, in order to meet the projected budget, a projected rent
increase was eliminated and expenses for resident services, replacement
reserves, and various maintenance line items were increased. She reminded the Commission that, in June
2003, the Commission approved an amendment to the Georgian Court Partnership
Agreement to bring the distribution requirements of the Partnership Agreement
in line with the regulatory agreement.
The regulatory agreement ensured that the property would continue to operate
as a 236 (non-profit) and receive the interest reduction payments. She explained that approval of this budget
amendment is the second and final step necessary to allow the property to
operate in compliance with the regulatory agreement and the HUD agreement.
Commissioner
Kator moved to adopt the resolution. Commissioner Bennett seconded the
motion. Affirmative votes were cast by
RESOLUTION:
03 - 86 RE: Amendment of Calendar Year 2003 Georgian
Court Operating Budget
C. Authorization of
Increase in Architect’s Contract for Seneca Heights -
Mr.
Jogi explained that he is the project manager for
Mr.
Jogi stated that the original contract amount approved by the Commission in
January 2003 was approximately $131,000.
Due to the additional scope, the contract will need to be increased by
approximately $58,000. Mr. Jogi stated
that staff requests authority to increase the contract to a total of $189,549.
Commissioner
Bennett asked if the increase covers the design phase and construction. Mr. Jogi stated that the construction phase
was covered in the original contract. He
explained that the contract covers the design and all approval processes such
as a sprinkler system required by the City of Gaithersburg, due to change of
use policy. He explained that the
sprinkler system was not included in the original contract.
In
response to a question by Commissioner Kator, Mr.
Jogi stated that the contract will be paid by DHCA. He further explained that DHCA has agreed to
pay the contact, but HOC will initially fund it.
There
was discussion about the name of the property.
Commissioner
Bennett moved, seconded by Commissioner Galloway to adopt the resolution. Affirmative votes were cast by
RESOLUTION: 03 - 87 Re: Authorization
of Increase
in Architect’s
Contract for