04-11-2012SpecMtg r
I MINUTES OF A SPECIAL MEETING OF THE
2 MESILLA VALLEY PUBLIC HOUSING AUTHORITY
3 BOARD OF COMMISSIONERS
4 April 11, 2012
5
6 The Board of Commissioners of the Mesilla Valley Public Housing Authority held a
7 Special Meeting at their conference room located at 926 S. San Pedro Street,
8 Las Cruces, NM 88001.
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10 1. CALL TO ORDER
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12 Chairman Jiron called the meeting to order at 1:30 p.m.
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14 2. ROLL CALL
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16 MEMBERS PRESENT: Art Jiron, Chairman
17 Ralph Chaffee, Vice Chairman
18 Felix Cordero, Commissioner
19 Arturo Marrujo, Commissioner
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21 MEMBERS ABSENT: None
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23 STAFF: Robbie R. Levey, Interim Executive Director
24 Jesse Padilla, Interim Deputy Director
25 Sharon Hansen, Accountant
26 Christine Gonzalez, Executive Assistant
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28 GUESTS: None
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30 3. WELCOME AND INTRODUCTIONS
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32 Chairman Jiron thanked everyone for coming today and stated that the purpose of
33 today's meeting was to discuss Robledo Ridge and be provided with updates on the
34 project.
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36 4. PUBLIC PARTICIPATION
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38 Chairman Jir6n noted there was no one present from the public.
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40 5. CONFLICT OF INTEREST
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42 Pursuant to Resolution No. 783, Chairman Jiron inquired if any Commissioner or staff
43 member had any known conflict of interest with any item on the agenda. No one
44 expressed or revealed any conflicts.
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46 6. APPROVAL OF REGULAR AGENDA
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48 Commissioner Cordero made a motion to approve today's regular agenda. Motion was
49 seconded by Commissioner Marrujo.
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1 Commissioner Art Jiron — aye
2 Commissioner Felix Cordero — aye
3 Commissioner Arturo Marrujo — aye
4 Commissioner Ralph Chaffee — aye
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6 The regular agenda for today's meeting was approved.
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8 7. CONSENT AGENDA — Those items on the Agenda indicated by an Asterisk (*)
9 are on the Consent Agenda and will be voted on by one motion.
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11 Not applicable.
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13 8. APPROVAL OF THE MINUTES OF THE PREVIOUS REGULAR MEETING AND
14 OF SPECIAL MEETINGS, IF ANY
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16 Not applicable.
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18 9. RESOLUTIONS
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20 Not applicable.
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22 10. UNFINISHED BUSINESS
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24 Updates and discussion of Robledo Ridge/low income housing tax credit
25 development - Ms. Levey gave a brief history on Robledo Ridge, stating that the
26 Housing Authority had received tax credits for construction of Robledo Ridge in 2011
27 and there was currently a gap in financing the development. Funding sources of$1.1
28 million listed in a commitment letter with Enterprise were not actually committed: (1)
29 HOME funds (2) weatherization funds, and (3) AHP grant. An initial contingency loan of
30 $700,000 has been reduced to approximately $200,000. Ms. Levey stated that when
31 the bond closed for Section 8 New Construction, Burley Court did not get its portion of
32 the funds which were approximately $82,000; the money went directly to Robledo
33 Ridge. An agreement was recently reached where approximately $82,000 was given
34 back to the Housing Authority for Burley Court by Thomas Development Group and
35 New Mexico Housing Corporation (NMHC).
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37 Vice Chairman Chaffee stated his concern is that Attorney Mark Berry represents the
38 Housing Authority as well as NMHC. He feels that Mr. Berry has a vested interest in
39 getting this closed by the partnership, and he believes this may be a conflict of interest.
40 Vice Chairman Chaffee stated that he does not feel the attorney should be giving us
41 advice on what should be done to close on this project. Ms. Levey stated that the
42 information provided by Mr. Berry was not advice, but only a summary of what has
43 occurred.
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45 Vice Chairman Chaffee asked why the developer is using the Housing Authority funds,
46 instead of a bank for a loan. He stated the Housing Authority is not in the business of
47 lending money. Ms. Levey emphasized that Enterprise has stated, through a
48 conference call, that if this does not close by next Friday, April 20, 2012, they are pulling
49 out, resulting in a loss of approximately $1 million for the Housing Authority. Again,
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1 Vice Chairman Chaffee stated that the developer and co-developer need to go to the
2 bank for the loan. Ms. Levey stated that she feels Attorney Mark Berry's conversations
3 with Enterprise convinced them to reduce the amount of the contingency loan from
4 $375,000 to $219,000.
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6 Vice Chairman Chaffee then asked Ms. Levey if the contingency loan was actually a
7 loan or a grant. Ms. Levey replied that this is a loan with a one (1) percent interest rate.
8 The Housing Authority is negotiating a side letter agreement between NMHC, the
9 Housing Authority and Thomas Development Group. Ms. Levey stated that Mr. Berry is
to currently negotiating with the nonprofit and Thomas Development Group for them to use
11 their developer's fees before using the contingency funds. As developer fees come in,
12 they will be paying 50 percent of their developer's fees in the event that the contingency
13 loan is used. The final $95,000 that would be owed to the Housing Authority may take
14 approximately 10 years to repay. The suggestion was made that instead of having a
15 repayment plan for the final $95,000, it could be a grant instead. Vice Chairman
16 Chaffee stated that he wants to be certain that this money comes back to the Housing
17 Authority. Mr. Padilla explained that we have inherited what the former Executive
18 Director left us. Mr. Padilla stated that MFA, HUD and Enterprise make sure that
19 everything is in order to be sure the development will be done correctly. Ms. Levey
20 explained that there are weekly due diligence calls with Enterprise, attorneys, MVPHA,
21 Thomas Development Group and NMHC to make certain that this development is
22 financed correctly.
23
24 Ms. Levey stated that if we invest $95,000 in an $11 million development, it would still
25 be a good investment, considering the improvements at Robledo Ridge. Vice Chairman
26 Chaffee stated that he wants to hold firm on one thing —we want the money back and
27 not in 10 years. He questioned where the cash flow would be coming from.
28
29 After discussion, Ms. Levey was instructed to call Tom Andrews before Tuesday's
30 meeting and have him ask the bank for a loan; if not possible, then he needs to state his
31 reason why not. Ms. Levey stated that HOME funds are not available for a contingency
32 loan and cannot be used on this development. Mr. Padilla stated that if Enterprise pulls
33 out, we are still responsible for expenses to date, such as work that has been performed
34 until now, and we would end up with no development and a possible $1 million dollar
35 loss.
36
37 Commissioner Marrujo asked how this became such an issue? Mr. Padilla explained
38 that NMHC's plan was to eventually take over management of all tax credit
39 developments.
40
41 Commissioner Cordero stated that he is familiar with Robledo Ridge and that complex
42 definitely needs work done as it is falling apart and by moving forward, we will get a new
43 development.
44
45 Ms. Levey reminded the Commissioners that at next Tuesday's regular Board meeting,
46 the Housing Authority will have three Resolutions for the Board's consideration
47 regarding Robledo Ridge.
48
49 11. NEW BUSINESS
50
Not applicable
3
1 12. EXECUTIVE SESSION [CLOSED TO THE PUBLIC PURSUANT TO §10-15-
2 1(H)(7) NMSA 1978]
3
4 Commissioner Marrujo moved to close the Open Meeting and go into Closed Session at
5 2:07 p.m., pursuant to §10-15-1(H)(7) NMSA 1978, to conduct discussion on pending
6 litigation. Motion was seconded by Commissioner Cordero.
7
8 Commissioner Jir6n — aye
9 Commissioner Chaffee — aye
to Commissioner Marrujo — aye
11 Commissioner Cordero — aye
12
13 Motion was approved unanimously.
14
15 Commissioner Cordero made a motion to end the Closed Session and return to an
16 Open Meeting at 2:38 p.m. Commissioner Marrujo seconded the motion.
17
18 Commissioner Jiron — aye
19 Commissioner Chaffee — aye
20 Commissioner Cordero — aye
21 Commissioner Marrujo — aye
22
23 Motion was unanimously approved.
24
25 The matter discussed in the Executive Session was limited only to that specified in the
26 motion for closure.
27
28 9. ADJOURNMENT
29
3o There being no further business, Commissioner Marrujo moved to adjourn the meeting
31 Motion was seconded by Commissioner Cordero.
32
33 Commissioner Jiron — aye
34 Commissioner Chaffee — aye
35 Commissioner Marrujo — aye
36 Commissioner Cordero — aye
37
38 Motion was unanimously approved. Meeting adjourned at 2:40 p.m.
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41 SEAL APPROVED BY
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46 Art Jir6n, hairman
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2 SUBMITTED BY
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7 Robbie R. Levey, Interim Executi a Director
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