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04-17-2012 1 MINUTES OF A REGULAR MEETING OF THE 2 BOARD OF COMMISSIONERS OF THE 3 MESILLA VALLEY PUBLIC HOUSING AUTHORITY 4 April 17, 2012 5 6 7 The regular meeting of the Board of Commissioners of the Mesilla Valley Public 8 Housing Authority was held in the Main Conference Room located at 926 S. San Pedro 9 Street, Las Cruces, New Mexico 88001. 10 11 1. CALL TO ORDER 12 13 Vice Chairman Ralph Chaffee called the meeting to order at 2:00 p.m. 14 15 2. ROLL CALL 16 17 18 MEMBERS PRESENT: Ralph Chaffee, Vice-Chairman 19 Felix Cordero, Commissioner 20 Arturo Marrujo, Commissioner 21 22 MEMBERS ABSENT: Art Jir6n, Chairman (Excused) 23 24 STAFF PRESENT: Robbie R. Levey, Interim Executive Director 25 Jesse Padilla, Deputy Director/Admin. Officer 26 Sharon Hansen, Accountant 27 Annettie Machuca, AMA 28 Christine Gonzalez, Executive Assistant 29 3o GUESTS: Tom Andrews, Thomas Development Group 31 Myles Kroenzel, AIA, AKS Architecture, P.C. 32 Norberto Vizcaino, AKS Architecture, P.C. 33 Vicki Simons, League of Women Voters 34 35 3. WELCOME AND INTRODUCTIONS 36 37 Vice Chairman Chaffee welcomed everyone present and informed the Commissioners 38 that Chairman Jiron was ill and had an excused absence. 39 4o 4. PUBLIC INPUT 41 42 Ms. Vicki Simons introduced herself and stated she was from the League of Women 43 Voters of Greater Las Cruces and has just completed an Affordable Housing Report and 44 was attending the meeting as an observer. 45 46 5. CONFLICT OF INTEREST 47 Vice Chairman Chaffee asked if any Commissioner or staff member had any known 48 conflict of interest with any item on the agenda. No one expressed or revealed any 49 conflicts. 50 1 1 6. APPROVAL OF REGULAR AGENDA 2 3 Commissioner Marrujo made a motion to approve the regular agenda. Motion was 4 seconded by Commissioner Cordero. 5 6 Commissioner Chaffee — aye 7 Commissioner Marrujo — aye 8 Commissioner Cordero — aye 9 l0 7. CONSENT AGENDA — Those items on the Agenda Indicated by an Asterisk (*) 11 are on the Consent Agenda and will be voted on by one motion. 12 13 Not Applicable. 14 15 8. APPROVAL OF THE MINUTES OF THE PREVIOUS REGULAR MEETING AND OF 16 SPECIAL MEETINGS, IF ANY 17 18 *Approval of the Minutes from a regular Meeting on March 22, 2012 19 20 Motion was made by Commissioner Marrujo to approve the Minutes of the Regular 21 Meeting of March 22, 2012. Motion was seconded by Commissioner Cordero. 22 23 Commissioner Chaffee — aye 24 Commissioner Marrujo — aye 25 Commissioner Cordero — aye 26 27 9. RESOLUTIONS 28 29 Resolution No. 2012-08 — A Resolution Approving an Increase in the 30 Construction Loan for Robledo Ridge 31 32 Vice Chairman Chaffee asked Ms. Levey to give a brief summary of this Resolution. He 33 also asked Ms. Levey if this Resolution is something that needs to be approved today. 34 Response from Ms. Levey was yes because the Housing Authority was notified by 35 Enterprise that if we did not close on this loan by Friday, April 20, 2012, Enterprise, the 36 equity investor, will be pulling out of this deal. Ms. Levey stated that the increase in the 37 construction loan with Citizens Bank increased from $3.0 million to $5.7 million. 38 39 Mr. Tom Andrews from Thomas Development Group then introduced Mr. Myles 4o Kroenzel and Norberto Vizcaino from AKS Architecture. 41 42 Mr. Andrews discussed the increase of the construction loan. He stated that throughout 43 2011, he was trying to set up tax credit carryover for Robledo Ridge which involved the 44 sister property of Burley Court. In order to legally and financially separate the Valley 45 Vista and Burley Court properties, we had to refinance the initial debt with Citizens Bank 46 which was a $3,000,000 loan to facilitate the payoff of the existing bond indenture for 47 Valley Vista and Burley Court properties with Wells Fargo Trust.. This action was 48 required in order for Robledo Ridge, LLLP, to purchase the Valley Vista property and to 49 meet MFA Carryover requirements for the housing tax credit program. Robledo Ridge 5o LLLP assumed the outstanding loan balance on November 9, 2011. 2 , 1 After final construction numbers with Crestline, Mr. Andrews put together a 12-month 2 projection of construction expenses based on contractor's estimated pay in expenses, 3 estimated monthly interest expenses, and estimated construction amount. 4 5 Commissioner Chaffee then stated the actual amount of the construction contract is 6 $7.1 million, and asked who is going to fill in the gap. Mr. Andrews explained that within 7 the $5.7 million is the cost of the acquisition for the property. The gap will be filled by 8 the equity provider, Enterprise. At closing they will be bringing in $1 million and at four 9 (4) months of construction, they will contribute another $1.6 million and MFA is making 10 available $500,000. Vice Chairman Chaffee then asked Ms. Levey if the Housing 11 Authority is liable for this construction loan, and Ms. Levey stated that the Housing 12 Authority is guaranteeing the loan. 13 14 Robledo Ridge LLP is preparing to admit Enterprise Community Investment, Inc. as a 15 limited partner equity investor of the Partnership and commence construction activities. 16 In order to meet the anticipated construction draw requests of the general contractor 17 and to align the pay-in of equity installments with construction draws, a construction 18 loan in the amount of $5,700,000 is needed in the construction period of the 19 development. The construction loan will be paid down and off as the timed equity 20 installments are released to the Partnership and the MFA permanent loan is available to 21 the Partnership. The Board of Directors of Citizens Bank has approved increasing the 22 construction loan for Robledo Ridge to $5,700,000 with a time extension to allow for the 23 construction period and MFA permanent loan conversion. MFA and Enterprise also 24 support the increase and extension of the construction loan. 25 26 Commissioner Chaffee asked how sure are we that this project is going to go as 27 planned. Mr. Andrews explained that there are underwriters involved, Enterprise is 28 providing $6.7 million in this transaction, MFA is providing $500,000. Ms. Levey then 29 stated that the Housing Authority has worked with Enterprise before on other 3o developments and that there is also a 15-page due diligence checklist that needs to be 31 completed before anything is finalized. Attorneys representing all parties have also 32 reviewed all documents. 33 34 Commissioner Marrujo asked if the total amount brought in by Enterprise is $6.7, loan 35 from Citizens Bank is $5.7 million and MFA is bringing in $500,000. He also asked if 36 the Board will be getting updates on what is happening. Mr. Andrews stated that there 37 will be monthly construction inspections and stated that the Commissioners are more 38 than welcome to attend the inspections. Those involved include the project architect, 39 Citizens Bank representatives, MFA representatives, and all will walk the site. 40 Commissioner Marrujo asked the architect if there will be any drastic overruns and has 41 everything been accounted for as best as he can project. The architect responded that 42 this is a LEED certified project and they are to be at a gold standard and are actually 43 reaching the platinum level. 44 45 Commissioner Cordero made a motion to approve Resolution 2012-08. Motion was 46 seconded by Commissioner Marrujo. 47 48 Commissioner Chaffee — aye 49 Commissioner Cordero — aye 5o Commissioner Marrujo — aye 3 1 Motion was unanimously approved. 2 3 • Resolution No. 2012-09 —A Resolution Approving MVPHA to take all 4 actions to facilitate the Investment in the Partnership by Enterprise by 5 Entering into any and all Agreements with Enterprise 6 7 Ms. Levey briefly discussed this Resolution stating that this was initially approved by the 8 previous Board of Commissioners last October with the former Executive Director to 9 sign everything. Enterprise is requiring that with the new Board and new Interim to Executive Director, that this Resolution be approved in order for the Interim Executive 11 Director to be able to sign documents. Commissioner Chaffee stated that his 12 understanding is that this is a standard resolution. Response was yes. 13 14 Motion was made by Commissioner Marrujo to approve Resolution No. 2012-09. 15 Motion was seconded by Commissioner Cordero. 16 17 Commissioner Chaffee — aye 18 Commissioner Marrujo — aye 19 Commissioner Cordero — aye 20 21 Motion was unanimously approved. 22 23 • Resolution No 2012-10 — a Resolution Approving a Capital Improvement 24 Loan for Robledo Ridge 25 26 Ms. Levey stated that this is a capital improvement loan which started at $700,000 and 27 Enterprise has lowered their amount to $219,000. When Burley Court received its fair 28 share of the funds, it made up the difference to $300,000. The developer and 29 contractor do not think they will use any part of that money but, if they do, part of the 30 payback will come from Thomas Development Group and NMHC. Ms. Levey stated 31 that she feels all parties are comfortable with this; however, Vice Chairman Chaffee 32 stated that he is not comfortable with it but rather accepts it. He expressed his concern 33 with the Housing Authority acting as a lender in this situation. He feels that the loan 34 should have been acquired through a bank. He stated we are moving forward with this 35 Resolution in order to expedite the completion of the project. Ms. Levey stated that as 36 discussed at the Special Meeting, if we have to use these funds, we are rationalizing 37 that this investment is a small price to pay for an $11 million development. 38 39 Commissioner Marrujo stated he also would have liked to have had the loan through a 4o bank, rather than the Housing Authority. He realizes we need to move forward and 41 feels it will be a small price to pay for a large investment. Vice Chairman Chaffee stated 42 one of the things we are depending on is there will be no surprises. Ms. Levey stated 43 that the contractor, Crestline Builders, and architect have been used on previous 44 developments, such as Cimmaron II, Falcon Ridge, Stone Mountain Place and have 45 been on schedule or completed projects sooner than required. 46 47 Commissioner Marrujo made a motion to approve Resolution 2012-10. Motion was 48 seconded by Commissioner Cordero. 49 50 4 1 Commissioner Chaffee — aye 2 Commissioner Marrujo — aye 3 Commissioner Cordero — aye 4 5 Motion was unanimously carried. 6 7 Resolution 2012-11 — A Resolution Approving Revisions to the MVPHA 8 Bylaws 9 10 Ms. Levey stated that HUD required as part of the Intergovernmental Agreement, that 11 the Housing Authority Board approve Bylaws in December 2011 for the new Board with 12 the understanding that the new Board can make amendments as they deem necessary. 13 The first recommendation from the attorney is that the Bylaws need to state a purpose. 14 Ms. Levey then discussed the changes to the Bylaws. 15 16 Commissioner Marrujo moved to approve Resolution 2012-11. Commissioner Cordero 17 seconded the motion. 18 19 Commissioner Chaffee — aye 20 Commissioner Marrujo — aye 21 Commissioner Cordero — aye 22 23 Motion was unanimously approved. 24 25 10. UNFINISHED BUSINESS 26 27 A tour of the Housing Authority's property was briefly discussed and it was decided to 28 wait to schedule a tour until the end of May when a new Commissioner might be 29 appointed. 30 31 11. NEW BUSINESS 32 33 Management Reports 34 35 Report of Accountant- Ms. Hansen discussed her Board Report dated April 10, 2012 36 which included financial statements through February 2012. Copy of report was 37 included in the Board packet. 38 39 She stated that the Mesilla Valley Public Housing Authority Conventional program 4o ended February 2012 with a net loss of$108,817.81. The Dona Ana County Housing 41 Authority Conventional program ended with a net income of $562.27. 42 43 Burley Court has a net income of $20,748.75 and Valley Vista has a net income of 44 $29,593.99 after adjusting for the Transfer In/Transfer Out line items required due to the 45 separation of the Section 8 New Construction project between Burley Court and Valley 46 Vista. 47 48 The MVPHA Section 8 Voucher program ended February 2012 with a net administrative 49 loss of$9,459.35 after adjusting for the over-expended HAP funding in the amount of 50 $684,539.14. For the same time period, the DACHA Section 8 Voucher program has a 5 1 net administrative loss of$19,189.05 after adjusting for the over-expended HAP funding 2 in the amount of$505,039.15. 3 4 The MVPHA Business Activities fund ended February 2012 with a net income of 5 $149,922.08. The DACHA Business Activities fund ended with a net loss of 6 $349,149.19 due primarily to an accounting entry made in November to transfer cash in 7 the amount of$399,400.74 from DACHA Business Activities to cover the final amount o 8 the loss in the DACHA Casas Del Quinto Sol program. Without this Transfer Out, the 9 net income through February 2012 is $50,251.55. 10 11 The MVPHA Developer's Fees fund ended February 2012 with a net income of 12 $122,814.75. 13 14 Other items she briefly discussed included: 15 16 - 218 Agreement pertaining to Social Security 17 - Budget revision resolution not being available yet 18 - Request for Proposals for FY 2012 Audit 19 20 Report of Housing Choice Voucher (HCV) Program Manager 21 22 Ms. Annettie Machuca, President of AMA, spoke briefly on the HUD Merger stating that 23 the merger of the Section 8 program was completed effective April 1, 2012 on HUD's 24 PIC database. She stated that the City and County waiting lists were merged into one 25 as MVPHA and duplicate applications were deleted and now there are a total of 3,252 26 families on the waiting list. She stated that 200 families had been selected and 27 scheduled for interviews during the week of April 9, 2012. Out of those 200 families, 77 28 responded. Ms. Machuca then stated that HUD notified her that they have 100 non- 29 elderly disabled vouchers, and her staff is working on identifying those families within 30 current participants first and will continue their efforts to complete the coding into PIC. 31 She also stated that a total of 1290 families were served in March 2012. 32 33 Interim Deputy Director 34 35 Mr. Padilla, the Housing Programs Manager and Interim Deputy Director, stated that the 36 air conditioner turn-ons are on schedule as reported in the last board report. Walnut 37 Grove, Tres Arboles, San Pedro Place, Pecos, Almendra and Oak Street developments 38 have been completed. Valley Vista and Dona Ana Villa Sereno will be completed by 39 April 20, 2012. 40 41 Interim Executive Director 42 43 Ms. Robbie Levey, Interim Executive Director, in her April 17, 2012 Board Report 44 included summaries on today's Resolutions, information on Appointment of 45 Commissioner to Downtown Ad Hoc Committee, HUD congressional briefing to take 46 place on May 23, 2012. RFP for HQS Inspections, Robledo Ridge closing date, 47 summary of Peachtree Canyon tax credit application, Burley Court Apartments, Oak 48 Street Apartments were also included in her report. She also included Refinancing of 49 MVPHA-owned Apartments, summary of Villa Sereno, staff appreciation breakfast, work 50 on the budget, the Capital fund program, audits, and access to online secure systems were all included in her report. 6 1 • Appointment of MVPHA Commissioner (CLC resident) to Downtown Ad Hoc 2 Committee 3 4 Discussion followed regarding getting a consensus of who would be serving on the Ad 5 Hoc Committee which was set up to discuss downtown parking. Vice Chairman 6 Chaffee suggested that Commissioner Cordero and Chairman Jiron meet and decide 7 who will serve on that Committee as they are the two Commissioners from the City. 8 9 • Discussion of Selection of Resident Commissioner to the MVPHA Board of 10 Commissioners 11 12 The Commissioners were informed that five applications have been received for 13 Resident Commissioner. Commissioner Chaffee stated that he wants to be sure that 14 the person selected should be very representative of clientele and have good 15 communication with clientele. Commissioner Marrujo asked if some of the applicants 16 lived in EI Paso. Ms. Levey stated that the new Resident Commissioner must live in the 17 City or County. The Intergovernmental Agreement requires that the two Commissioners 18 appointed by the Mayor and the two Commissioners appointed by the Board of County 19 Commissioners shall nominate a 5th Resident Commissioner. When the nomination or 20 recommendation is made by the Board, that decision will be sent to the Mayor of the 21 City and also to the Board of County Commissioners for their final approval. 22 Commissioner Marrujo stated that he would like to see someone very interactive with 23 residents, someone who is approachable with the residents. 24 25 After some discussion, it was decided that the Commissioners would like to meet and 26 interview the candidates. They will be invited to the next meeting in May. At that 27 meeting, they will discuss why they think they should be selected. The Board can then 28 have an executive session to discuss and make their recommendation. 29 30 12. ADJOURNMENT 31 32 There being no further business, Commissioner Cordero made a motion to adjourn the 33 meeting. Motion was seconded by Commissioner Marrujo. 34 35 Commissoner Chaffee - aye 36 Commissioner Cordero - aye 37 Commissioner Marrujo — aye 38 39 Motion unanimously approved. Meeting adjourned at 3:00 p.m. 40 41 42 43 44 SEAL APPROV BY 45 46 47 48 49 ��c ice Chairma 50 7 1 2 SUBMITTED BY 3 4 6 7 Robbie R. Levey, Interim Executi a Director 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 8