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02-21-2012 MINUTES OF A REGULAR MEETING OF THE BOARD OF COMMISSIONERS OF THE MESILLA VALLEY PUBLIC HOUSING AUTHORITY February 21, 2012 The regular meeting of the Board of Commissioners of the Mesilla Valley Public Housing Authority was held in the Main Conference Room located at 926 S. San Pedro Street, Las Cruces, New Mexico 88001. 1. ROLL CALL Chairman Art Jiron called the meeting to order at 2:02 p.m. MEMBERS PRESENT: Art Jiron, Chairman Ralph Chaffee, Vice-Chairman Felix Cordero, Commissioner STAFF PRESENT: Robbie R. Levey, Interim Executive Director Jesse Padilla, Deputy Director/Admin. Officer Sharon Hansen, Accountant Stephanie Fernandez, AMA Christine Gonzalez, Executive Assistant GUESTS: None 2. WELCOME AND INTRODUCTIONS Interim Executive Director Robbie Levey introduced Roger Pizarro, stating he was the new Maintenance Aide A hired and assigned to the Maintenance Department. Mr. Pizarro is the first employee of the Mesilla Valley Public Housing Authority. 3. PUBLIC INPUT N/A 4. CONFLICT OF INTEREST Chairman Jiron asked 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 Commissioner Cordero made a motion to approve the regular agenda. Motion was seconded by Commissioner Chaffee. Commissioner Jiron — aye Commissioner Chaffee — aye Commissioner Cordero — aye i 6. APPROVAL OF THE MINUTES OF THE PREVIOUS REGULAR MEETING AND OF SPECIAL MEETINGS, IF ANY *Approval of the Minutes from a Special Meeting on January 24, 2012 Motion was made by Commissioner Cordero to approve the Minutes of a Special Meeting of January 24, 2012. Motion was seconded by Vice Chairman Chaffee. Commissioner Jiron — aye Commissioner Chaffee — aye Commissioner Cordero — aye 7. RESOLUTIONS • Resolution No. 2012-01 —A Resolution Affirming Compliance with the Open Meetings Act. Commissioner Cordero made a motion to approve Resolution 2012-01. Motion was seconded by Vice Chairman Chaffee. Commissioner Jiron — aye Commissioner Chaffee — aye Commissioner Cordero — aye Motion was unanimously approved. • Resolution No. 2012-02 —A Resolution Establishing a Conflict of Interest Policy for the Board of Commissioners and Employees of the Mesilla Valley Public Housing Authority Commissioner Cordero made a motion to approve Resolution 2012-02. Motion was seconded by Vice Chairman Chaffee. Commissioner Jiron — aye Commissioner Chaffee — aye Commissioner Cordero — aye Motion was unanimously approved. • Resolution No. 2012-03 —A Resolution Approving a Cooperation Agreement Between the Mesilla Valley Public Housing Authority and the City of Las Cruces Vice Chairman Chaffee asked if the Cooperation Agreement included the County. Response from Ms. Levey was no, there would be a separate Cooperation Agreement between Mesilla Valley Public Housing Authority and Dona Ana County. Commissioner Cordero made a motion to approve Resolution No. 2012-03. Motion was seconded by Vice Chairman Chaffee. Commissioner Jiron — aye Commissioner Chaffee — aye Commissioner Cordero — aye 2 Motion was unanimously approved. • Resolution No. 2012-04 —A Resolution Determining that Members of the Board of Commissioners of the Mesilla Valley Public Housing Authority Will No Longer Serve on the Board of Directors for the New Mexico Housing Corporation Chairman Jiron stated that he had contacted an expert in the area of Robert's Rules of Order, who advised him that when there is a small board, such as the current Board of Commissioners, the Chairman can second an item. Interim Executive Director Levey then explained that it is not in the Bylaws of the Board of Commissioners of the Mesilla Valley Public Housing Authority (MVPHA) that members of the Board of Commissioners serve on the Board of Directors for the New Mexico Housing Corporation (NMHC). It is in the Bylaws of the New Mexico Housing Corporation that the Chairman and Vice Chairman of the MVPHA Board of Commissioners would serve as the Chairman and Vice Chairman of the Board of Directors for NMHC. It is not in the best interest of either MVPHA or NMHC that both Boards should be one and the same. Therefore, Resolution No. 2012-04 is being submitted in order to clarify that no member of the MVPHA Board of Commissioners will serve on the Board of Directors of the New Mexico Housing Corporation. Ms. Hansen stated that she feels that the NMHC should not be a component unit of the Housing Authority. Mr. Padilla agreed with Ms. Hansen. Although having separate Boards does not mean that NMHC is not a component unit of MVPHA, it is a step towards achieving this. Commissioner Cordero made a motion to approve Resolution No. 2012-04. Motion was seconded by Chairman Jiron. Commissioner Jiron — aye Commissioner Chaffee — aye Commissioner Cordero — aye Motion unanimously approved. 8. UNFINISHED BUSINESS A tour of the Housing Authority's property was briefly discussed and the date of Thursday, March 15, 2012 at 1 p.m. was selected as the date for the tour. It was decided that two separate tours would be conducted as there is much to be seen and the tour cannot be accomplished in one day. This first tour will consist of seeing properties in Las Cruces and properties in Anthony. A separate tour will be scheduled to tour properties in Hatch, New Mexico. Mr. Padilla will be the designated driver for the tour. 9. NEW BUSINESS Report of Accountant Ms. Hansen, Accountant, reviewed her February 15, 2012 report to the Board of Commissioners including financial statements through December 2011. She stated that the fiscal year runs from July 1 through June 30; therefore, these financials reflect the first half of the current fiscal year. Ms. Hansen also stated that it is important to note that the former Executive Director budgeted a deficit in the public housing program in 3 anticipation of HUD recapturing public housing operating reserves. Commissioner Chaffee asked about running a deficit budget. Ms. Hansen stated that the former Executive Director prepared the budget. Ms. Hansen stated that in March, the Housing Authority will be revising the budget. We still do not know how much of our public housing reserves HUD may take back. This coming fiscal year, we will be looking at preparing a responsible, prudent budget. HUD does not get a copy of our budget since we are not a troubled agency. We do not agree with the budget, but we cannot start from scratch, because this budget has already been approved by HUD. This coming fiscal year, there may be factors such as changes to the State health insurance premiums and other variables, which are concerns considering the ongoing cuts in HUD funding. Ms. Hansen also mentioned that the HACLC Conventional (Public Housing) program ended December 2011 with a net loss of $35,468.07. The DACHA (Dona Ana County Housing Authority) Conventional program ended December 2011 with a net income of $3,001.77. Ms. Hansen included that the accounting entries required to separate Burley Court from Valley Vista (Robledo Ridge) and to split the capital assets booked under the Las Cruces Housing Development Corporation between Burley and Valley resulted in complicated income statements for both Burley Court and Valley Vista. As of December 31, 2011, Burley Court has a net loss of$32,716.68 and Valley Vista has a net loss of $30,051.95 after adjusting for the Transfer In/Transfer Out line items. There was no HAP funding for these projects in December. However, in January we received the funding due for December and January. Mention was also made that when construction begins at Robledo Ridge, there will be approximately 8 units that will not be earning any rent. Eleven of the units will be market rate units and Jesse was instructed not to fill units. Ms. Hansen also informed the Board that the HACLC Section 8 Voucher program ended December 2011 with a net administrative loss of$13,475.52 after adjusting for the over-expended HAP funding in the amount of 438,352.62. For the same time period, the DACHA Section 8 Voucher program has a net admin loss of$17,976.20 after adjusting for the overexpended HAP funding in the amount of$223,525.51. Another item was that the HACLC Business Activities fund ended December 2011 with a net income of$24,375.17. The DACHA Business Activities fund ended December 2011 with a net loss of$349,003.13 due primarily to an accounting entry made in November to transfer cash in the amount of$399,400.74 from DACHA Business Activities to cover the final amount of the loss in the DACHA Casas Del Quinto Sol (CDQS) program. Without this Transfer Out, the net income through December is $50,397.61. Another point discussed was the Developer's Fees fund which ended December 2011 with a net income of$138,112.08. Ms. Hansen also discussed the RFP for Fiscal Year 2012. She stated that there are still a few issues to be worked out with the County and the State Auditor's Office before the RFP can be published. These issues include whether or not the Dona Ana County 4 auditors will audit Doha Ana County Housing Authority for the period after December 31, 2011 or whether the MVPHA auditors will audit this time period. We are also waiting for a final determination from the State Auditor as to whether we can issue one RFP and one audit contract for HACLC/MVPHA or whether we will need two separate procurements. Short discussion also held regarding the 13-14 homes sold through a realtor and which have 30-year mortgages with the Housing Authority. The Housing Authority is not maximizing our cash flow by owner-financing sold units, and will not continue to do this with future sales. Report of Housing Choice Voucher (HCV) Program Manager Ms. Fernandez, AMA, discussed her February 21, 2012 Report to the Board. She stated she is the Assistant Manager for the S8 Program and that there are currently 5,000 applicants on the waiting list. They are in the process of merging both waiting lists from the City and the County and then will have a more accurate number of families needing assistance. Ms. Fernandez also stated that the Housing Choice Voucher Program department currently manages the following Special Programs: ❖ Veterans Affairs Supportive Housing (VASH) in coordination with the VA office in El Paso. ❖ Family Unification Program in partnership with CYFD. ❖ The Shelter Plus Care 1 and 2 programs in coordination with the City of Las Cruces. ❖ The Homeownership Voucher Program, which allows a current voucher participant to become a homeowner and receive assistance from the Housing Authority with its monthly mortgage payment. Ms. Fernandez also informed the Commissioners that their department is measured on a yearly basis by HUD, based on 15 performance indicators known as SEMAP (Section 8 Management Assessment Program). Interim Deputy Director Mr. Padilla discussed PIC scores. He also stated that he and Mr. Montague, the Procurement Officer, had attended Capital Fund Program training at the Nelrod Conference in Las Vegas, Nevada. Mr. Padilla mentioned that annual inspections were conducted while they were in Las Vegas. He also praised his co-workers and stated that they were doing an excellent job. Interim Executive Director Ms. Levey stated that there were two resolutions that were not submitted at this meeting by Mr. Andrews, from Thomas Development Group, as he was still not certain on gap 5 funding and was looking at creative financing for Robledo Ridge. She also stated that HUD had advised us that home sale proceeds cannot be used for a "contingency loan." Oak Street Apartments were discussed. Ms. Levey stated that the apartments were purchased in 2004 and for the past several years, the complex has been designated as transitional housing for homeless veterans and for veterans participating in the VASH Program. More recently, the Mesilla Valley Community of Hope (MVCH) was awarded a VA Per Diem Grant which promotes the development and provision of supportive housing and/or supportive services with the goal of helping homeless veterans achieve residential stability, increasing their skill levels and/or income and obtaining greater self- determination. Discussion was also held regarding leasing of Oak Street to the Mesilla Valley Community of Hope (MVCH). Ms. Levey stated that operating expenses for Oak Street are approximately $3,700 for the mortgage and $500 for operational expenses, for a total of$4,200 a month. The Community of Hope was informed of the expenses and stated they could not afford more than $2000 a month in rent. Ms. Levey stated that the previous directors of MVPHA and MVCH had negotiated a lease agreement of approximately $6,000/month. It is not financially feasible for the Housing Authority to lease to MVCH and lose more than $2000 each month. Ms. Levey also included in her report to the Commissioners that Jesse, Sharon and she had met with representatives of Wells Fargo Bank regarding the possibility of refinancing the Oak Street Apartments, Pecos Apartments and Almendra Apartments. They are on hold because they were advised that there is a $93,000 penalty for pre- payment of the mortgage and/or refinancing of Pecos Apartments and Wells Fargo Bank thinks it is very unlikely that the underwriters would approve the Housing Authority leasing to the Mesilla Valley Community of Hope. Ms. Levey also stated that she implemented monthly staff meetings with a goal of creating an atmosphere of open communication and an environment of trust and cooperation. The managers are also using this time to recognize performance of staff, to make certain that staff is updated, and to reply to questions/concerns staff may have. Ms. Levey briefly discussed the Renter's Security Program stating that this program required more time than anticipated and the decision had been made to return the remaining money to the Las Cruces Realtors' Association. Other items in Ms. Levey's report included updates on the Peachtree Canyon Apartments, on Alameda 575, on the Villa Sereno Development in Anthony, NM, on the Construction Trades Program, on the Executive Recruitment Search, and Salary Study. She also included updates on the HUD Annual Plan, on the Family Self-Sufficiency Program, the Shelter Plus Care Grants, the VASH Program, and the Family Unification Program, as well as Training updates and other miscellaneous informational items. 10. ADJOURNMENT There being no further business, Chairman Jir6n moved to adjourn the meeting. Motion was seconded by Vice Chairman Chaffee. Meeting adjourned at 3:00 p.m. 6 SEALM1 APPROVED BY Art Jlrdff, airman SUBMITTED BY Robbie R. Levey, Interim Ex cutive Director