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01-24-2012SpecMtg MINUTES OF A SPECIAL MEETING OF THE MESILLA VALLEY PUBLIC HOUSING AUTHORITY BOARD OF COMMISSIONERS January 24, 2012 The Board of Commissioners of the Mesilla Valley Public Housing Authority held a Special Meeting at the conference room located at 926 S. San Pedro Street, Las Cruces, NM 88001. 1. ROLL CALL Acting Chairman Jiron called the meeting to order at 2:03 p.m. MEMBERS PRESENT: Art Jiron, Acting Chairman Ralph Chaffee, Vice Chairman Felix Cordero, Commissioner MEMBERS ABSENT: None STAFF: Robbie Levey, Interim Executive Director Jesse Padilla, Interim Deputy Director Sharon Hansen, Accountant Christine Gonzalez, Executive Assistant GUESTS: Tom Hassell, Executive Director/CEO, New Mexico Housing Corporation Tom Andrews, Thomas Development Group 2. WELCOME AND INTRODUCTIONS Acting Chairman Jiron asked the new Commissioners to introduce themselves. Mr. Ralph Chaffee stated that he is retired and pleased to be serving on the Mesilla Valley Public Housing Authority Board. Mr. Felix Cordero introduced himself stating that he is a Facilities Manager for Sitel and had been asked by the Mayor to serve on this Board. 3. PUBLIC PARTICIPATION Chairman Jiron noted there was no one present from the public. 4. CONFLICT OF INTEREST Chairman Jiron inquired if any Commissioner or staff member had any known conflict of interest with any item on the agenda. No one expressed or revealed any conflicts. 5. APPROVAL OF REGULAR AGENDA The regular Agenda for today's meeting was approved. 1 6. ELECTION OF OFFICERS The election of officers was then discussed. Commissioner Chaffee nominated Commissioner Art Jir6n to serve as the Chairman of this Board. The motion was seconded by Commissioner Cordero. A nomination was then made by Commissioner Cordero that Commissioner Chaffee serve as the Vice Chairman. This motion was seconded by Commissioner Jir6n. Commissioner Jir6n - aye Commissioner Chaffee - aye Commissioner Cordero — aye Motion approved unanimously. 7. APPROVAL OF THE MINUTES OF THE PREVIOUS REGULAR MEETING AND OF SPECIAL MEETINGS, IF ANY *Approval of the Minutes from the Regular Meeting on December 20, 2011. Vice Chairman Chaffee made a motion to approve the Minutes from the Regular Meeting on December 20, 2011. Commissioner Cordero seconded the motion. Commissioner Jir6n - aye Commissioner Chaffee - aye Commissioner Cordero — aye Motion approved unanimously. 8. NEW BUSINESS Mr. Tom Andrews, Thomas Development Group discussed proposed tax applications for 2012. He introduced John Moscato from Sierra Norte Landholding Corporation. Mr. Andrews provided an update on Robledo Ridge. He stated that the application for Robledo Ridge was submitted at the end of January, 2011 and it has taken over one year to get to construction. Mr. Andrews stated that this has been a difficult project due to the age and size of the site. Construction permits and other requirements have been approved and construction is now ready to begin. He stated this project will consist of rehabilitating all 60 units, and tearing down everything in the inside of the units. He also stated that this site is located off North Valley, is walking distance to Mayfield High School, and sits on 15 acres. It consists of 60 units and will be adding 11 more units to the site, in addition to green areas and playgrounds. These units are one to five bedrooms and will be occupied by families. Mr. Andrews also discussed the size of the units, as well as adding accessibility. Some units will increase in size to two bedrooms, and all units will be getting new roofs. He also showed pictures of the `before and after.' By building and remodeling this affordable housing project, Mr. Andrews stated that Robledo Ridge will have platinum LEED certification. Vice Chairman Chaffee asked how much of the funding is tax credits? Mr. Andrews responded that $6.7 million in tax credits was awarded to the project. 2 Tom Andrews then discussed the proposed tax credit applications for 2012. 1) Peachtree Canyon Apartments - John Moscato informed the Commissioners that he had made a commitment for an affordable housing component in the area known as Metro Verde South and had discussed this previously with Tom Hassell and Tom Andrews. He stated he is looking forward to working with the Housing Authority on a mixed income development. Mr. Andrews stated that this project consists of 72 units including 60 affordable units and 12 market rate units. The development team includes the general contractor, accountant, architect, etc. The total development cost for this project is $11.9 million dollars. He anticipates receiving $9.6 million in tax credits. The project would be located at the corner of Peachtree and Jornada, would consist of two- and three-bedroom units, an office, common building, and allows an area for a bus stop. Buildings will be 1- and 2-story, 8-plex or 6-plex, and the design includes a court area. He stated that the 2-bedroom consists of 944 square feet and the 3-bedroom consists of approximately 1,275 square feet. The project will include laundry facilities, a meeting room, a maintenance building, tot areas, picnic areas, and units will meet MFA design guidelines. Mr. Andrews stated that last year MFA received 22 tax applications and only 6 were selected. [Robledo Ridge was the highest scoring application.] He also briefly discussed the Charrette for Peachtree Canyon that was held in December, 2011. In attendance were the architect, the developer, representatives from the City of Las Cruces, as well as Housing Authority representatives. Chairman Jiron asked all in attendance if anyone had any questions or comments. No one had any further comments. 2) Pecos Apartments - Mr. Andrews stated that the Pecos Apartments were purchased by the Housing Authority in 2005. The property was built in 1979 and no major work or renovation has been done. This property consists of 20 units and the Housing Authority has been working with the Veterans VASH Program Coordinator who coordinates services to the veterans to be more independent and eventually transition to live on their own. Mr. Andrews stated that he feels this would be a good tax credit application, and an additional 16 new units would be built on an adjacent site. Mr. Andrews stated that the current loan amount owed to Wells Fargo Bank on this property is $323,000. After checking comparable sales in the area, he feels the property would be worth about $700,000 to $800,000 or approximately $40,000 per unit. The Housing Authority is trying to purchase an adjacent property currently owned by George Rawson, and has reached an agreement on one piece of property and is still working on acquiring the second piece of property. The new units would be 1- and 2-bedroom units and an office, common building, and open area. The architect is AKS Architecture and this project's total cost would be $3.8 to $4 million dollars. This project is not a mixed income property; it would be 100% affordable housing. Vice Chairman Chaffee asked about the cost of acquiring the adjacent properties from George Rawson. Mr. Andrews mentioned this would cost approximately $150,000. 3 Again, it was emphasized that the tax credit applications must be submitted by 5 p.m. on January 31, 2012 in order to make the deadline. Applications would be reviewed and notifications on who will receive the tax credits are usually announced by late April or early May. Vice Chairman Chaffee asked if the application is due by January 31, 2012, why was this not approved by the previous Board? Mr. Andrews explained that since there are several things that have to happen before submission, it typically seems that applications are put together at the last minute. He did state that the final Qualified Allocation Plan does not come out until December of each year. Vice Chairman Chaffee commented that he checked the information and it does not seem that there were any major changes from last year's QAP to this year's, so he still is not clear on why there is a hold-up. Mr. Hassell, NMHC, stated that this has been in the works for some time and the overall concept was that NMHC would need the developer's fees and that affordable housing is needed in Las Cruces. There was a lot of thought put into this so we could proceed with the application. Tom Andrews stated that as the developer, he would like to get everything done quicker and that everyone has been working overtime to get to this point. Chairman Jiron asked Mr. Padilla for comments on Peachtree and Pecos. Mr. Padilla stated that he feels we should move forward with the Peachtree tax credit application but would hesitate on submitting Pecos, and requested that we slow down. He feels that we have too many questions related to the management of Robledo Ridge and staff is not yet prepared to handle the Pecos development. For example, he stated that we are still having difficulty with MFA in determining rents and correct utility allowances, compliance requirements for tax credit files, eligibility requirements, etc. Until Robledo Ridge is completed, he feels adding another project would be difficult on his staff as they are still in the learning process with Robledo Ridge and have received little if any guidance. Mr. Padilla stated that we also do not have software to be able to manage a tax credit development. He feels the Pecos Project should be held for review until next year and then reconsidered at that time. Commissioner Cordero asked when we would learn if Peachtree is awarded tax credits. Mr. Andrews replied that if we are awarded the credits this April/May, completion would probably be in 2014. Vice Chairman Chaffee asked if similar problems would not occur with Peachtree. Staff replied that since Peachtree is new construction and does not involve rehab or HAP subsidy, it would not be as difficult as Robledo Ridge. After discussion, Commissioners arrived at consensus to move forward with the Peachtree tax credit application and defer the Pecos Project tax credit application until a later date. Chairman Jiron agreed, stating this would be better so that the Board has a chance to understand the process. Mr. Hassell discussed the possibility that the Peachtree tax credit application may not be awarded, and he 4 felt by submitting two tax credit applications, we would have a better chance of receiving at least one award. Commissioner Cordero asked if it would have a big impact if we do not go forward with Pecos. Interim Executive Director Levey stated that the units at Pecos are occupied, and feels that Mr. Padilla and his staff feel there are still too many unanswered questions with Robledo Ridge, especially the management aspect of the property. Development Services Agreement - After some discussion, Vice Chairman Chaffee requested that Commissioners defer approval of the Development Services Agreement for Peachtree until the Housing Authority's legal counsel had a chance to review the document. Interim Executive Director Levey stated that legal counsel had reviewed the Development Services Agreement and approved the document in concept but not as presented in the packet. The attorney has made some corrections which need to be incorporated into the document. Mr. Andrews stated that he agrees that the Housing Authority's counsel should review the document; however, he did state that this is the same agreement used on Robledo Ridge and the Cimmaron II Projects. He also mentioned that he needs to be confident that Development Services Agreement will be signed before next Tuesday, January 31, 2012. Vice Chairman Chaffee stated that the Board members could be available to meet and approve documents, as needed. MVPHA Board Serving on NMHC Board of Directors - The next item of discussion was the MVPHA Board of Commissioners serving as the Board of Directors on the New Mexico Housing Corporation (NMHC). Mr. Hassell, NMHC, explained that under the current Bylaws for NMHC, the Chairman and Vice Chairman for the Housing Authority Board of Commissioners also serve on the nonprofit organization. The intention was to have communication between the two entities, the Housing Authority and NMHC, so that the non-profit would continue to work with the Housing Authority and not become independent. Mr. Hassell stated that NMHC is not able to take any action since it does not have a Board; the NMHC Board of Directors was dissolved at the end of December, 2011. Mr. Hassell then added that Commissioner Jir6n is the only remaining member on the NMHC Board, adding that since MVPHA Board had elections today, Art Jir6n would be the Chair and Ralph Chaffee the Vice Chair on the NMHC Board. If the newly elected officers opt not to continue on both Boards, then they would need to resign their position on the NMHC Board at the next meeting and come forward with a slate of new Directors for consideration. Vice Chairman Chaffee asked that this item be deferred to a future date so that the Commissioners could get a better understanding of the NMHC Board. Mr. Hassell did go on to say that because Chairman Jir6n is the Chairman for the Board of Commissioners as of today's date, he is considered the Chairman for NMHC, and wants to know if he would be willing to sign Schedule H and certain other documents in order to submit the tax credit application for the Peachtree Project. The decision was made that they will remain on the NMHC Board until further notice. 5 9. ADJOURNMENT There being no further business, Vice Chairman Chaffee moved to adjourn the meeting. Motion was seconded by Commissioner Cordero. Commissioner Jiron - aye Commissioner Chaffee - aye Commissioner Cordero — aye Motion approved unanimously. The meeting adjourned at 3:23 p.m. SEAL APPROVED BY Art Jiron, Chairman SUBMITTED BY Robbie R. Levey, Interim Exec tive Director 6