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03-22-2012 MINUTES OF A REGULAR MEETING OF THE MESILLA VALLEY PUBLIC HOUSING AUTHORITY BOARD OF COMMISSIONERS March 22, 2012 The Board of Commissioners of the Mesilla Valley Public Housing Authority held a Regular Meeting at the conference room located at 926 S. San Pedro Street, Las Cruces, NM 88001. 1. CALL TO ORDER Chairman Jiron called the meeting to order at 2:00 p.m. 2. ROLL CALL MEMBERS PRESENT: Art Jiron, Chairman Ralph Chaffee, Vice Chairman Arturo Marrujo, Commissioner MEMBERS ABSENT: Felix Cordero, Commissioner (Excused) STAFF: Robbie Levey, Interim Executive Director Jesse Padilla, Interim Deputy Director Sharon Hansen, Accountant Annettie Machuca, AMA Christine Gonzalez, Executive Assistant GUESTS: None 3. WELCOME AND INTRODUCTIONS Chairman Jiron asked the new Commissioner to introduce himself. Commissioner Arturo Marrujo stated that he is the current Director of the Tierra Del Sol Homeownership Program and was asked by County Commissioner Billy Garrett if he would be interested in serving on the Mesilla Valley Public Housing Authority Board of Commissioners. He stated he has worked with former Executive Director Tom Hassell and Interim Executive Director Robbie Levey in the past with Casas del Quinto Sol and would like to provide guidance to the Housing Authority. He also stated that he would like to show that in the City of Las Cruces and Dona Ana County there is a big need for affordable housing. He stated that there are three main players in this City and those are Tierra Del Sol, Habitat for Humanity and the Housing Authority. He feels we do not have adequate affordable housing for Las Cruces and hopes he can assist the Housing Authority to develop more affordable housing. Interim Executive Director Robbie Levey then introduced Ruby Aguirre as the Housing Authority's new Receptionist. Ms. Levey stated that Ms. Aguirre was working as a temporary employee and applied for this position, interviewed and was hired. She is a graduate of Mayfield High School and is currently enrolled at New Mexico State University majoring in International Business. 1 4. PUBLIC PARTICIPATION Chairman Jiron noted there was no one present from the public. 5. CONFLICT OF INTEREST INQUIRY AS REQUIRED BY RESOLUTION 2012-02. 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. 6. APPROVAL OF REGULAR AGENDA The regular Agenda for today's meeting was approved. A motion to approve was made by Vice Chairman Chaffee, and motion was seconded by Commissioner Marrujo. Commissioner Jiron — aye Commissioner Chaffee — aye Commissioner Marrujo — 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 February 21, 2012 Vice Chairman Chaffee made a motion to approve the Minutes from the Regular Meeting of February 21, 2012. Commissioner Marrujo seconded the motion. Commissioner Jiron - aye Commissioner Chaffee - aye Commissioner Marrujo — aye Motion approved unanimously. 8. RESOLUTIONS • Resolution No. 2012-05 —A Resolution approving submission of the HUD- required PHA Annual Plan for FYE 2013 and Five-Year Plan for FYE 2013-2018 Vice Chairman Chaffee asked if they could review the annual plan and Ms. Levey responded that it was kept at the front desk and it could be reviewed whenever they wished. A motion was made by Commissioner Marrujo to Approve Resolution No. 2012-05. The motion was seconded by Vice Chairman Chaffee. Commissioner Jiron — aye Commissioner Chaffee — aye Commissioner Marrujo — aye Motion approved unanimously. 2 • Resolution No. 2012-06 —A resolution approving the appointment of a representative and an alternate from the MVPHA Board of Commissioners to the City of Las Cruces Affordable Housing Land Bank and Trust Fund Advisory Committee A motion was made by Vice Chairman Chaffee to approve Resolution No. 2012-06. The motion was seconded by Commissioner Marrujo. Vice Chairman Chaffee stated that the two City representatives will serve on this Advisory Committee. Ms. Levey stated that this is one of the requirements from the City. Therefore, Chairman Art Jir6n will be the representative and Commissioner Felix Cordero will be serving as the alternate on the City of Las Cruces Affordable Housing Land Bank and Trust Fund Advisory Committee. Ms. Levey then explained that the purpose of this Advisory Committee is to enhance the City's effort to create more housing in the City that is affordable to persons at or below 80% of the area median income as established by the U.S. Department of Housing and Urban Development. Commissioner Jir6n — aye Commissioner Chaffee — aye Commissioner Marrujo — aye Motion approved unanimously. • Resolution No. 2012-07 - A resolution approving a code of professional conduct for MVPHA commissioners and staff A motion was made by Vice Chairman Chaffee to approve Resolution No. 2012-07. The motion was seconded by Commissioner Marrujo. Ms. Levey stated that a Code of Professional Conduct is required by HUD. The Commissioners and staff will each sign an Acknowledgement and the Code will be displayed in all offices. Commissioner Jir6n — aye Commissioner Chaffee — aye Commissioner Marrujo — aye Motion approved unanimously. 9. UNFINISHED BUSINESS A new date for a tour of MVPHA properties was discussed. After some dialogue, it was decided to postpone this item until all Commissioners were appointed. Final decision was made to wait until the end of April to pick a new date for the tour. Mr. Padilla was then asked if he had received any applications for the Resident Commissioner and he informed those present that fliers went out to all residents in Public Housing and Section 8. Chairman Jir6n asked Mr. Padilla if he knew any of the residents who will apply. Mr. Padilla indicated that he knows some Public Housing residents who may be interested. 3 10. NEW BUSINESS Report of Accountant Ms. Sharon Hansen, Accountant, discussed her March 14, 2012 report to the Commissioners. She stated that this month's report includes financial statements through the end of January 2012. She stated that the Mesilla Valley Public Housing Authority's Conventional (Public Housing) Program ended January 2012 with a net loss of$68,009.96. The Dona Ana County Housing Authority's (DACHA) Conventional (Public Housing) Program ended January with a net income of $506.45. As a reminder she also stated that the former Executive Director funded a deficit for the Public Housing program anticipating HUD would recapture excess cash reserves. However, HUD is recapturing reserves by decreasing funding. MVPHA received $48,823 less in HUD subsidy than it had been receiving in October through December 2011. DACHA received $1,788 for each month of October through December 2011 and no subsidy in January 2012. Ms. Hansen then stated that she will have a budget revision for the April meeting. As of January 31, 2012, Burley Court has a net income of$201.73 and Valley Vista (Robledo Ridge) has a net income of$59,336.54 after adjusting for the Transfer In/Transfer Out of line items required due to the separation of the Section 8 New Construction between Burley and Valley Vista (Robledo Ridge). In January, we did receive the December and January HAP funds for these two projects. The MVPHA S8 Voucher Program ended January with a net administrative loss of $9,297.44 after adjusting for the over-expended HAP funding in the amount of $773,203.17. For the same time period, the DACHA S8 Voucher program has a net administrative loss of$18,111.83 after adjusting for the over-expended HAP funding in the amount of$373,345.46. Ms. Hansen then continued with the MVPHA Business Activities fund which ended January 2012 with a net income of$141,317.88. The DACHA Business Activities fund ended with a net loss of$348,972.16 due 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 January 2012 is $50,428.58. Ms. Hansen stated that the MVPHA Developer's Fee fund ended January 2012 with a net income of$125,980.23. Ms. Hansen also briefly discussed the 218 Agreement stating that at the April Board Meeting, she will have a Resolution to formalize the MVPHA Board's approval to pursue an employee election regarding the 218 Agreement as discussed with Commissioners Jiron and Chaffee on February 10. This agreement states whether or not a public entity required to contribute to PERA, which includes the Housing Authority, also wishes to contribute to FICA. 4 She also stated that she had attended the State Auditor's 2012 Audit Rule training in Ruidoso on March 13 and had the opportunity to speak with State Auditor staff(SAO) regarding the delay of the MVPHA and DACHA consolidation and the audit implications thereof. SAO staff suggested that the Housing Authority write a letter to the SAO detailing the issues involved. Ms. Hansen will follow up with this in the next few days. Ms. Hansen also discussed the audit conference call at the City of Las Cruces with City staff, State Auditor's Office and HUD. An agreement was reached that the Audit would cover July through December, 2011 for the Housing Authority of the City of Las Cruces and January through June, 2012 for the MVPHA. Dona Ana County would be responsible for the DACHA audit through December, 2011. Ms. Hansen stated that the Housing Authority has a deadline to procure auditors by April 15, 2012; however, we were told that we will not be held to that deadline. HUD and the State Auditor will be providing an e-mail to us in writing that we are not being held to that deadline and will not be penalized. Report of Housing Choice Voucher Program Manager Ms. Machuca stated that for February, the PIC score was 97% for both the City and the County programs. They are still two separate entities until HUD consolidates them as one. She stated that the Housing Choice Voucher Program is assisting 1270 families in the County and the City. She also briefly discussed the Family Unification Program which is a program with Children, Youth and Families Department (CYFD) which unites children with their families. We have 50 vouchers for the Family Unification Program, and of those vouchers, approximately 27 families are being housed. She further stated that under the VASH Program for veterans, all 35 vouchers are being utilized. Under the Shelter Care Plus I and II Programs, clients are referred to us by Mesilla Valley Community of Hope and we assist with housing. The SEMAP Report is due in August. Ms. Machuca stated that they have 15 indicators which are looked at, such as HQS inspections, rent calculations, outreach to families or tenants. The certification is approved by the Board in August and submitted to HUD. Ms. Levey stated that HUD is asking that Net Restricted Assets (NRA) be spent, but there is a concern on what happens to families. HUD is asking that we continue to lease up. Ms. Machuca stated that HUD was previously taking last year's expenses to figure the following year's expenses. For that same reason, we need to distribute more vouchers and house more families, but make certain that we can provide accurate numbers to HUD, in order for HUD to continue funding us that amount for the following months. Vice Chairman Chaffee asked Ms. Machuca if the HCV Program operates on a use it or lose it basis. Her response was yes. Ms. Machuca needs to keep an accurate account of what is being spent so that accurate numbers are provided to HUD and HUD tries to keep up with us. Ms. Machuca stated that HUD recommends that we keep at least a one-month reserve account. Commissioner Marrujo then asked Ms. Machuca if HUD is doing a quarterly review and if that has helped keep closer to what is actually being spent since it is a shorter time period, rather than on a yearly basis? Ms. Machuca stated that we actually monitor every month on what is being spent and report monthly to HUD. 5 HUD wants to see an additional 350 families housed by the end of the year. Ms. Machuca then stated that we are currently adding approximately 10-15 families each month. In April, an additional 200 families will be selected from the waiting list and possibly 50 percent of those families actually will respond to our notice. Out of those 100-125 households, approximately 50%-75% may qualify and then about 50% will actually find a unit. One of the difficulties is trying to find a unit that will qualify. Vice Chairman Chaffee asked how many families are on the waiting list? Ms. Machuca stated we have merged both waiting lists for the County and the City and now have approximately 3500 families. Commissioner Marrujo asked if AMA is doing outreach to private complexes. He also asked if it was a big problem that landlords do not want to lease to Section 8 tenants. Ms. Machuca stated that the issue is families wanting a better unit and they don't qualify, so it is not a problem with the landlords. Report of Housing Programs Manager Mr. Jesse Padilla, the Interim Deputy Director/Housing Programs Manager, discussed his report. He asked if anyone had any questions. Ms. Hansen briefly discussed the PHAS Scores and reason for the substandard performer status for DACHA which is based on the MASS score which consists of three indicators. 1) Occupancy — One of six units, which is a homeownership unit, was vacant and that counted against us. 2) Tenants Accounts Receivable — Our balance is 27% of total Tenant Charges which is too high to score points. The main reason it is so high is that the former Executive Director did not want to pursue going to the Board of County Commissioners (BOCC) to get approval to write off the past due tenants account receivables. We cannot do this now, because it would require the BOCC to approve a resolution, and the County does not recognize that DACHA still exists. Vice Chairman Chaffee asked why this was not written off. Ms. Levey stated we could prepare a resolution and ask the current Board of Commissioners to sign the resolution. Vice Chairman Chaffee asked Ms. Levey to prepare a resolution, explain what we are doing and get it written off to clear up the accounts. Mr. Padilla said that he will have a resolution ready by the next Board meeting. 3) Accounts Payable/Total Operating Expenses — This indicator relates to the payable due from DACHA to HACHA for reimbursement of June 2011 expenses incurred by HACLC on DACHA's behalf. We have this payable booked at the end of every month due to the fact most of DACHA's expenses flow through our Housing Authority before being reimbursed. We were informed by Mr. Barela of the HUD field office not to be concerned about the substandard status because HUD knows that the DACHA Pubic Housing program is a homeownership program and is in transition. Although a substandard score in an ongoing public housing program would trigger an investigation, this would not occur with DACHA. 6 Mr. Padilla then asked what the Commissioners thought about buying additional apartment complexes in the future. He feels it would be beneficial to the Housing Authority. Ms. Hansen stated we would need to wait until after we see what happens with the construction loan required for Robledo Ridge. Vice Chairman Chaffee asked if the Housing Authority would be better off if they owned the units or if units were privately owned? Ms. Machuca stated that the advantage of being the owner and the landlord is that it is easier for us to manage a family and a unit. Vice Chairman Chaffee stated that ownership of the unit is to the benefit of the clientele of the Housing Authority since the clientele would benefit from this. Commissioner Marrujo asked if there were any properties on the market. Mr. Padilla stated that there are some apartment complexes but the apartments need a lot of work. Mr. Padilla stated we want to purchase units that are ready to lease. Right now we have Oak Street which is used for veterans but they can only stay two years. Having other apartment complexes may serve as units for the veterans transitioning out of Oak Street. Report of Interim Executive Director Ms. Levey discussed the Community of Hope trying to lease Oak Street Apartments for the VA Per Diem Grant for approximately $1800 a month. However, the Housing Authority's monthly expenses, including the mortgage payment and operational expenses are approximately $4200 a month, so partnership is not feasible at this time. The City of Las Cruces has plans to relocate the Child Crisis Center located on the Mesilla Valley Community of Hope campus, which would free up space to be used for the VA Per Diem Grant. Ms. Levey also stated that they have not pursued the refinancing of Oak Street Apartments and Almendra Apartments, as she is awaiting an update on the mortgage for Burley Court. Another item discussed was the community center at Villa Sereno in Anthony, New Mexico. The title to this property was to revert back to Dona Ana County and she is currently checking with Dona Ana County to see how it wants to proceed or resolve this issue. Ms. Levey also discussed the Conflict of Interest forms needed by the City to be completed by all Board members as well as all staff and contractors that have a role in the programs funded by City HOME funds or Supportive Housing Programs funds. Other items in Ms. Levey's report included the interview by Chairman Jiron in the Bulletin Newspaper, the RFP's for HQS Inspections, updates on Robledo Ridge, and Peachtree Canyon Apartments, update on the salary study, and Resident Commissioner. She also included the Annual Plan and Five-Year Plan, training and "Joinder' issues. 11. ADJOURNMENT There being no further business, Vice Chairman Chaffee moved to adjourn the meeting. Motion was seconded by Commissioner Cordero. The meeting adjourned at 3:02 p.m. 7 Commissioner Jiron - aye Commissioner Chaffee - aye Commissioner Marrujo — aye Motion approved unanimously. SEAL AP OV n, hai SUBMITTED BY Robbie R. Levey, Interim Executive irector 8