MINUTES OF A REGULAR MEETING

OF THE

LAWRENCE-DOUGLAS COUNTY HOUSING AUTHORITY

BOARD OF COMMISSIONERS

October 24, 2005                                                                                            Babcock Place     

5:30 p.m.                                                                                                          Meal Site      

1.         Call of Roll.

            The meeting was called to order at 5:30 p. m. by Chair, Mark Gonzales.  Upon call of roll the following Commissioners answered present:

               Wes Smith

               Brenda O’Keefe

               Mark Gonzales  

               Willie Amison

            Also present were James Dunn, Section 8 landlord; Adam Tilser, KLWN radio news reporter; Beverly Hyatt, Vickie Butler and Barbara Huppee, LDCHA staff members. 

            Absent with prior approval:  Commissioner Johnson.

2.         Approve Minutes of September 26, 2005 Board of Commissioners Meeting.

            Commissioner O’Keefe moved to accept the September board meeting minutes as presented.  Commissioner Smith seconded the motion.  The motion carried.

3.          Receive Comments from Tenants and Public.

            Mr. Dunn commented on his HQS inspection results being mailed on a federal holiday resulting in a one-day delay in notification.  The notice was a failed re-inspection informing him that subsidy was being abated.  He stated this resulted in him losing one day’s subsidy.  He questioned the scheduling of inspections on holidays when LDCHA staff works but mail is not delivered.  Ms Huppee explained that since this was a re-inspection of a failed unit Mr. Dunn was informed when he received the inspection report 30 days earlier that his subsidy payment would be abated if the unit did not pass at the re-inspection. Consequently Mr. Dunn had previous notice of this eventuality.  The holiday mail schedule had no bearing on this information. It is the landlord’s responsibility to make repairs within 30 days of the date of the annual inspection. If they fail to do this, federal regulations require that the housing subsidy be abated. This is stipulated in Mr. Dunn’s contract with the housing authority.

            After discussion, Ms. Huppee stated that a full report on the federal requirements for scheduling inspections will be presented to the board at next month’s meeting. 

4          Receive Financial Reports.

            A.        Receive September 2005 Financial Report.

            Ms. Huppee reported that September brought the agency 75% through the budget year.  Total rental income remained over budget projections at 81%.  Total income was over budget at 82%.  Operating subsidy was on line at 75%.  The approved final authorized subsidy level is $469,564.  This reflected an 88.8% of the amount the agency was eligible to receive which is based upon congressional appropriations. Total administrative expenses were running 2% over budget projections at 77%. Tenant services were running over budget projections at 94%.  This is because expenses for the continuation of some of the resident services programs through December have shifted from grant funding to the operating and Section 8 budgets.  Water and sewer continued to run under budget.  Electricity was 1% under at 74%.  Gas continued to run over at 91%.  Total operating expenditures were at 64% through the budget year.  With the final subsidy adjustment made in the financial reports the agency will end the year with $17,604 in income over expenses instead of the $41,960 contained in the budget.  Based on the new figure the agency is at $130,020 in income over expenses.  This is $112,416 more than the projected amount of $17,604.   

            B.         Receive Section 8 3^rd Quarter Program Report.

            As of the 3^rd quarter 2005 the Section 8 program has earned $267,601.20 in earned administrative fees.  This is an aggregate total of 5,380 units under lease on the first day of the month for January through September.  The program has earned $8,700 in hard-to-house fees.  This is a total of 116 units.  Fees earned under the FSS and Homeownership Coordinator positions are $51,193.52.  Interest earned in operating reserve investments to date is $66,370.67.  Expenses under the Section 8 program are those directly related to administrative expenses for operational costs to run the program.  As of September a total of $352,295.31 has been spent in administrative expenses.  A total of $1,896.23 has been paid through September for Housing Assistance Payments (HAP).  As of this reporting period the Section 8 program has earned $393,882.39 in total operating receipts and $352,295.31 in total operating expenses.  Year-to-date operating reserves are $41,587.08.

            Commissioner Amison moved to approve the financial reports as presented.  Commissioner Smith seconded the motion.  The motion carried.

            C.        Distribute September Accounting Summary.

5.         CONSENT AGENDA

            A.        Receive Report on Federal Home Loan Bank Application.

            B.         Receive Information on the LDCHA Employee Performance Incentive Program.

            C.        Receive Information on Peterson Acres Expansion Project.

            D.        Receive Report on Boardwalk Fire Victims Housing Clearinghouse.

            Mr. Dunn asked for items B. and D. to be removed from the Consent Agenda for his information.  Chairman Gonzales moved the items to the Regular Agenda. Commissioner Smith moved to approve items A. and C.  Commissioner Amison seconded the motion.  The motion carried. 

6.         REGULAR AGENDA

            5B.       Receive Information on the LDCHA Employee Performance Incentive Program.

            Ms. Huppee reported that since 1999 the board has been rewarding employees at the end of the year for the achievement of financial and program goals that were established in the annual budget and management performance standards.  The rewards are similar to profit sharing in the private sector. The amount of the award is determined by the amount of income that exceeds the residual receipts established in the public housing operating budget for the given year.  That amount is then matched with Section 8 funds.  The board has capped the amount that could into the fund in any given year at $40,000 thus creating a maximum fund of $80,000 when the Section 8 match is added.  The board determines the fund in November of each year. Employees receive equal shares times the number of hours worked in the year.  The maximum number of shares is 2080.  Last year each share was worth $1.13.  The awards are distributed in December.  Mr. Dunn asked if any of the HAP money went into the fund.  Ms. Huppee responded definitely not, HAP money remains in the budget and is reallocated for rent subsidies.

            5D.      Receive Report on Boardwalk Fire Victims Housing Clearinghouse.

            The October 7 Boardwalk Apartments fire destroyed 76 apartments, three of which were occupied by Section 8 housing assistance recipients.  The agency made contact with those three people and proceeded to help them find new housing.  All have found replacement housing. 

            Ms. Huppee also reported that in September the Board discussed a broader role the LDCHA might play in the community by serving as a clearinghouse for individuals/families in need of housing when disaster occurs.  In view of the fire and housing victims, the agency established a clearinghouse on its web site after contacting landlords and apartments.  Over 35 units were listed in the clearinghouse.  In addition to this, several displaced households have applied for assistance.

             A.       Receive Report on Brookcreek Child Care Center Reviewing Annual Enrollment Agreement.

            Ms. Huppee reported that Brookcreek Child Care Center has a lease in perpetuity to use Edgewood Homes apartments 159 and 160 for the operations of its toddler and preschool child care programs.  The lease permits the use of the units and provides rent and utilities free, so long as it continually serves at least 22 children across its sites who are public housing residents. The lease requires that the Brookcreek director make a report to the board each year on the public housing children it serves to document compliance.  Esther Kottwitz, Brookcreek Director, provided a report and was scheduled to attend the meeting.  The report showed that there are six public housing children enrolled across all its sites.  Since the enrollment of public housing children was significantly below the required number Ms. Kottwitz asked to address the board in November on this matter.  Therefore she was not present at the meeting.

            Ms. Huppee gave the board background information on the Brookcreek Child Care Center since its beginning in 1981. Most recently in the summer of 2003, Brookcreek requested and the board approved expansion of Brookcreek’s Edgewood unit 159 into adjacent unit 160. After staff conducted a cost-benefit analysis which showed the amount of lost rent revenue and maintenance and utility expenses that the LDCHA would incur the Board executed a new contract which stipulated that 22 children must be continually enrolled across its sites.  Today Brookcreek has three sites with 91 slots for child care.  In the public housing population at Edgewood and Scattered Sites there are 137 children age 5 and under that could be drawn from for enrollment at Brookcreek.  Eighty of the current 137 are at Edgewood Homes. 

            The board discussed the seriousness of the current situation. The commissioners stipulated that Brookcreek should be put on immediate notice and be given a specific period of time to correct.  In addition the Board should amend the lease to report monthly public housing enrollment to the Executive Director and to include out of compliance actions requiring the Center the pay the established market rate for a 4-bedroom and a 2-bedroom Edgewood unit every month the public housing children enrolled fall below the required 22.  Currently the 4-bedroom rate is $776 and the 2-bedroom rate is $517 for a total of $1,293 monthly. 

                        Ms. Kottwitz will be present at the November meeting to present her report to the Board.  The Board deferred final action until after Ms. Kotttwitz reports.   

            B.         Receive Report on Assistance to Displaced Hurricane Katrina Individuals.

            Last month the Board established a housing disaster assistance program for gulf coast families displaced by Hurricanes Katrina and Rita who were not federal housing recipients at the time of their displacement.  The program is limited to ten families and is open for 90 days from the date of Board approval. The Board selected previously non-assisted displaced families because HUD is providing assistance to households who were federal housing recipients at the time of their displacement.  Six applications have been taken from gulf coast households.  None were from families with previous housing assistance.  One family has returned to the gulf coast, one has not provided a FEMA registration number making them ineligible for the program but is being processed for the General Housing waiting list.  The remaining four families have been processed and issued disaster vouchers.  Three families are looking for units and one family has found a unit and is in the process of finalizing contracts.

            C.        Resolution 903:  Approve 2006 Public Housing Operating Budget if Appropriate.

            The 2006 operating budget presented expenses at $1,925,420 and revenues at $1,637,930.  Revenues include rental income at $1,024,070, other income at $144,300 and operating subsidy at $469,560. Operating subsidy is based on the 2005 final authorized approved subsidy. Operating expenses are projected at $375,170 with 19% of this in non-routine expenses attributable to the maintenance facility new addition and renovation.  The remaining expenses are increases in utilities, salary and fringe which contain a 3% COLA and 2.5% merit increase for all personnel.  Because of the maintenance facility project the overall budget shows a deficit of $287,490.  This addition and renovation will be financed through the public housing reserve account. When this expense is removed from the budget it will then show a surplus of $2,760 in routine operating expenses. The Board was presented with budget worksheets and notes explaining expenditures in each account as well as a comparison of each account to the 2005 operating budget. 

            After board discussion Chairman Gonzales moved to approve the 2006 operating budget to include a 3% COLA but without a 2.5% merit increase until the 2006 operating subsidy is known. Commissioner Smith seconded the motion.  The motion passed unanimously.  

7.         Calendar and Announcements.

            A.        Review Board Meeting Schedule.

8.         Adjournment.

            There being no further items of business, Commissioner Amison moved to adjourn.  Commissioner O’Keefe seconded the motion.   The meeting was adjourned at 6:30 p.m.

_____________________________                                 _____________________________

Chair                                                                                   Secretary                                 Attest