HOUSING OPPORTUNITIES COMMISSION OF MONTGOMERY COUNTY

Chair Nelson convened the meeting of the Housing Opportunities Commission at 7:25 p.m. He then called for consideration of the Consent Calendar. The Consent calendar was approved upon a motion by Commissioner Bennett, seconded by Vice Chair Cohen. Affirmative votes were cast by Commissioners Nelson, Thompson, Kator, Galloway, Piñero, Bennett and Cohen.

I. CONSENT CALENDAR

A. Approval of Minutes of March 9, 2005 - The minutes were approved as written.

B. Approval of Minutes of Public Hearing of March 9, 2005 - The minutes were approved as written.

C. Approval of Minutes of Special Session Open Meeting Conference Call of March 18, 2005 - The minutes were approved as written.

D. Authorization to Form Wheaton Metro Limited Partnership – The following

Resolution was adopted:

RESOLUTION: 05-31 RE: Authorization to Form Wheaton Metro Limited Partnership

WHEREAS, the Housing Opportunities Commission of Montgomery County has applied to the Maryland Department of Housing and Community Development for low-income housing tax credits in connection with the development of the Wheaton Metro project; and

WHEREAS, use of low-income housing tax credits requires ownership of the project by a limited partnership, with the tax credit investor acting as the limited partner and HOC acting as the general partner; and

WHEREAS, at this time, the Commission must appoint a surrogate limited partner and must, at a later date, authorize the admission of the investor limited partner upon selection of the investor and negotiation of the new limited partnership agreement; and

WHEREAS, after completion of construction of the project, the Commission will transfer the condominium interests in certain units in the project to the limited partnership; and

WHEREAS, the limited partnership must be established now in order to obtain the tax credit and other financing necessary for the development of the project.

NOW, THEREFORE, BE IT RESOLVED by the Housing Opportunities Commission of Montgomery County that:

1. Intending to create under the Maryland Revised Uniform Limited Partnership Act a limited partnership to be known as "Wheaton Metro Limited Partnership" (the "Partnership"), the Commission

(a) determines to act as general partner thereof; and

(b) authorizes and directs the execution and filing with the State of Maryland of a certificate of limited partnership and any amendment thereto, in the name of the Partnership, using the foregoing partnership name or any name substantially similar thereto accepted by the State of Maryland Department of Assessments and Taxation

2. The Commission, as general partner of the Partnership, authorizes, without further action on its part, the taking of any and all other actions necessary and proper to carry out the business of the Partnership and effectuate the public purposes recited above, including, without limitation, the admission of the Executive Director of the Commission or any other person whom he may designate as the initial limited partner of the Partnership, and to enter into a partnership agreement with the Executive Director or such designee, acting in that capacity.

E. Approval Not to Open the Housing Choice Voucher Program or Public Housing Waiting Lists in CY 2005 - The following Resolution was adopted:

RESOLUTION: 05-32 RE: Approval Not to Open the Housing Choice Voucher Program or Public Housing Waiting Lists in CY 2005

WHEREAS, the Housing Opportunities Commission must decide whether or not to open the Housing Choice Voucher Program and the Public Housing Waiting Lists annually; and

WHEREAS, the Agency Plan and the Housing Choice Voucher Administrative Plan require that the individual program waiting lists will be opened annually; and

WHEREAS, due to Federal funding limitations, the families currently on the program waiting lists have a very limited opportunity of being served in calendar year 2005.

NOW, THEREFORE, BE IT RESOLVED by the Housing Opportunities Commission of Montgomery County, that it approves the action not to open the Housing Choice Voucher Program or the Public Housing Waiting Lists during calendar year 2005.

F. Approval of Amendment to Contract for Roofs at Magruder’s Discovery- The following Resolution was adopted:

RESOLUTION: 05-33 RE: Approval of Amendment to Contract for Roofs at Magruder’s Discovery

WHEREAS, on September 1, 2004, the Commission approved a contract with Metropolitan Siding & Windows in the amount of $289,964 for installation of new roof surfaces on the buildings at Magruder’s Discovery and for wrapping the wooden trim around the windows with striated PVC trim; and

WHEREAS, the Executive Director is authorized to approve change orders and payments for required work up to a total amount that does not exceed 10% of the contract amount; and

WHEREAS, during the course of their work, the contractor has found more rotted wood (“unknown conditions”) in need of replacement on the roof subsurface than was originally anticipated; and

WHEREAS, the final cost of the project will exceed the contract amount plus the Executive Director’s 10% authority by $15,000.

NOW, THEREFORE, BE IT RESOLVED by the Housing Opportunities Commission that the Executive Director or his designee is hereby authorized to execute an amendment to the contract with Metropolitan Siding & Windows for installation of new roof surfaces on the buildings at Magruder’s Discovery and for wrapping the wooden trim around the windows with striated PVC trim increasing the amount of the contract from $289,964 to $333,960.

II. INFORMATION EXCHANGE

A. Executive Director’s Report – Mr. Minton added the following to his written report:

1) Mr. Minton stated that OMB and the County Executive have recommended HOC’s request for $2 million in revolving funds for the CIP budget. Gail Willison explained that, if approved by the Council, it would be a supplemental funding for the FY’05 budget.

2) Mr. Minton directed the Commission’s attention to the finalized Strategic Plan.

3) Mr. Minton informed the Commission that the video recordings of the Commission Meetings will be posted on the Agency’s intranet.

4) Peter Engel, Assistant Director of Real Estate, informed the Commission that CDA has approved HOC for 9% Tax Credits for the Wheaton Metro Project. He stated that the Board hearing with Park and Planning would be held on April 7^th. He noted that, after changes were made to the project design, the Planning Board staff has released a new, more favorable report on the project. He explained that five units will be lost with the re-design, and the retail space will be increased. A lengthy discussion ensued.

5) Bill Murphy, Director of Real Estate, and Stuart Raynor, Director of Housing Management, provided an update on Montgomery Arms. He stated that the building code inspector passed the interior of the units earlier that day. He stated that the contractor will be out of the units by April 8^th.

Mr. Raynor stated that a successful open house was held on the previous weekend. He explained that there are 17 newly signed leases. Staff is preparing for the Grand Opening and expecting a successful lease-up.

Chair Nelson inquired about staff contacting prior residents to notify them of the opportunity to re-lease. He directed staff to contact all previous residents who were required to move for the rehabilitation and offer them renewed tenancy.

B. COMMISSIONER EXCHANGE

Vice Chair Cohen inquired about the upcoming Affordable Housing Conference. Mr. Minton gave an overview and encouraged Commissioners to attend.

Commissioner Thompson informed the Commission that, on March 22^nd, she attended a panel meeting with the County Council. The topic was: Impact of Proposed Budget Cuts at the State and Federal levels. She noted that, as the Council is considering the County Budget, they were interested in the impact of the cuts on HOC’s programs. Vice Chair Cohen complimented Commissioner Thompson and Mr. Minton on their presentation to the Council.

Chair Nelson informed the Commission that Commissioner Kator was named Premier Manager of the Year from Montgomery Soccer, Incorporated (MSI).

Chair Nelson spoke briefly on the national efforts to combat the Housing Choice Voucher Program cuts. There was brief discussion. Mr. Minton confirmed that a meeting with landlords in the Housing Choice Voucher Program is scheduled for April 19^th at the University System of Maryland (USM) Shady Grove campus. Chair Nelson suggested setting up individual meetings with some of the larger landlords to discuss possible solutions to the funding cuts. He noted that there is some administrative flexibility and negotiation may be possible with some of the landlords that hold a large number of voucher contracts.

C. COMMUNITY FORUM

None

III. COMMITTEE REPORTS

None

IV. DELIBERATION

A. Approval of Contract for Waverly House Faćade Repairs –

A brief presentation was made by Stuart Raynor, Director of Housing Management, John McIlroy, Manager of Modernization. There was a brief discussion about the possibility of pursuing legal action against the Architect of the project. Ken Tecler, Legal Counsel, stated the need for this contractor to proceed slowly and allow photographs of the repair work to be taken.

There was a brief discussion about the price range of the bids.

The resolution was adopted upon a motion by Commissioner Bennett and seconded by Commissioner Galloway. Affirmative votes were cast by Commissioners Nelson, Thompson, Kator, Galloway, Piñero, Bennett and Cohen.

RESOLUTION: 05 - 34 RE: Approval of Contract for Waverly House Faćade Repairs

WHEREAS, the Housing Opportunities Commission (H.O.C.) issued an Invitation for Bids (IFB) for repair of areas of distress on the facade of Waverly House and related work; and

WHEREAS, six companies submitted bids in response to the IFB; and

WHEREAS, H.O.C. staff and a structural engineer determined that the lowest responsive bidder that submitted the most fair and reasonable base bid price and unit prices was Eastern Waterproof.

NOW, THEREFORE, BE IT RESOLVED by the Housing Opportunities Commission that the Executive Director or his designee be authorized to execute a contract with Eastern Waterproofing & Restoration Co., Inc. in the amount of $734,743 for repair of areas of distress on the facade of Waverly House and related work and that the Executive Director or his designee be given authority to approve change orders priced in accordance with the unit prices in the contract up to an additional total amount of $365,257.

B. Approval of FY2006 Public Housing Agency Plans –

A brief presentation was made by Stuart Raynor, Director of Housing Management, John McIlroy, Manager of Modernization, and Doug Ryan, Housing Programs Compliance Officer.

There was brief discussion about whether to utilize the 5H Funds for rehabilitation or to purchase new Public Housing units. Mr. Minton stated that staff would review the options available to the Agency and discuss the findings with the Development and Finance Committee.

Mr. Raynor informed the Commission that comments submitted by the Resident Advisory Board (RAB) related to the most recent Resident Satisfaction Survey. The comments indicated that residents are dissatisfied with maintenance in HOC properties. Chair Nelson advised staff to draft a letter to the RAB acknowledging their concerns and noting action taken.

Chair Nelson inquired about the proposed 33 % increase to Flat Rents. Mr. Ryan noted that, if the increase is a burden to any family, the family would have the option to return to an income-based rent. Chair Nelson instructed staff to research the limits on increases to Flat Rents. Mr. Ryan explained that the proposed plan does not include the proposed increases. It was noted that staff would bring to the May meeting a proposal to increase Flat Rents, with explanations on how they are set, limitations, and the impact to families if they return to an income-base rent.

The resolution was adopted upon a motion by Chair Pro Tem Galloway and seconded by Vice Chair Cohen. Affirmative votes were cast by Commissioners Nelson, Thompson, Kator, Galloway, Piñero, Bennett and Cohen.

RESOLUTION: 05 - 35 RE: Approval of FY2006 Public Housing Agency Plans

WHEREAS, the Housing Opportunities Commission must and desires to implement the mandatory Annual and Five-Year Plan requirements of the Quality Housing and Work Responsibility Act (QHWRA); and

WHEREAS, the Commission has consulted with the Resident Advisory Board and its Public Housing communities; and

WHEREAS, the Agency Plans are mandatory under law and regulation.

NOW, THEREFORE, BE IT RESOLVED by the Housing Opportunities Commission of Montgomery County that it approves the Agency Plans and their submission to HUD no later than April 15, 2005, as required by federal regulation.

C. Authorization to Extend Current Contract with Caine Mitter & Associates for Two Years –

Earl DeMaris, Chief Financial Officer, and Kayrine Brown, Assistant Director of Mortgage Finance, made a brief presentation.

The resolution was adopted upon a motion by Commissioner Bennett and seconded by Vice Chair Cohen. Affirmative votes were cast by Commissioners Nelson, Thompson, Kator, Galloway, Piñero, Bennett and Cohen.