Housing Commission

Tuesday, January 22, 2019 Community Room – Harborview 4:00 PM 1. Call to Order/Roll Call 1 2. Amendments to Agenda 3. Public Comments on Agenda Related Items At this time citizens who wish to comment on agenda, related items may do so. The Commission President may recognize citizens in attendance who wish to comment. The City of Manistee Housing Commission Public Comment Policy limits each individual to a three [3] minute statement. 4. Consent Agenda Agenda items marked with an [*] are on the consent agenda and considered by the Executive Director to be routine matters. Prior to approval of the Consent Agenda Commissioners may remove an item from the Consent Agenda. Items removed from the consent agenda will come before the Commissioners as stated on the agenda. Consent Agenda items include: a. Approval of Minutes i. Regular Meeting – December 11, 2018* b. Resolutions Resolutions placed on the Consent Agenda concern matters of compliance with the U.S. Department of Housing Development and federal law that requires the adoption of a policy or provision of public housing benefits. The contents of these Resolutions, items of compliance, policy, and regulation are not debatable but are required to maintain regulatory compliance. i. No Resolutions on Consent Agenda* 5. Old Business a. None 1 The Commission Secretary/Executive Director shall make a written record of Commissioner attendance. 1 6. New Business a. Resolution 2019-01 Authorization to Execute Contract for RAD Legal Services 7. Reports and Communications a. Executive Director Report i. At this time the Executive Director may review or highlight an item or items from the Executive Director Report b. Staff Reports i. At this time CMHC staff may report items to the Commissioners if there are reports to be made. c. Commissioner Reports/Comments i. At this time Commissioners may report Committee or other items to the Commission. Individual Commissioners may also offer a report or comment. d. Received Communications 8. Public Comment a. At this time citizens are provided an opportunity to comment on Housing Commission affairs. The Commission President may recognize citizens in attendance who wish to comment. Citizen comments are not limited to agenda items but should be directed to Housing Commission services, activities or areas of involvement. The City of Manistee Housing Commission Public Comment Policy limits each individual to a three [3] minute statement. The City of Manistee Housing Commission will receive public comments at this time and will respond at a later date if the Housing Commission determines a response is appropriate. 9. Adjournment 10. Announcements and Upcoming Meetings a. February Commission Meeting February 26, 2019, 4:00 PM Harborview Community Room 2  Meeting Minutes December 11, 2018 Regular Meeting Meeting Start Time: 4:04 P.M. Roll Call: Commissioner Present Absent Excused Absent Non-Excused Dale Priester ☒ ☐ ☐ Doug Parkes ☒ ☐ ☐ James Bond ☒ ☐ ☐ Krista McDougall ☒ ☐ ☐ Kelly Tomaszewski ☐ ☒ ☐ Housing Commission Staff Present: Staff Member Present Clinton McKinven-Copus, ☒ Executive Director/Commission Secretary Lindsay McIntyre, ☒ Program Director Cindy Scott, ☒ Financial Analyst/Procurement Assistant Kevin Helminiak, ☐ Maintenance Dept. Crew Leader Others Present: • None Public Comment on Agenda Related Items: • None Amendments to the Agenda: • New Business – Addition of Resolution 2018-13 Authorization for Executive Director to sign License of use of Property Located on 12th Street by the City of Manistee • Executive Director Report – Discussion of current status of fulfillment of City rental inspection Ordinance 3  DRAFT Consent Agenda: A. Approval of Minutes i. Work Session Minutes – November 27, 2018 ii. Regular Meeting Minutes – November 27, 2018 B. Financial Reports i. Public Housing Financial Statements 1. Public Housing Financial Statement, October 31, 2018 2. Public Housing Bank Reconciliation, October 31, 2018 3. Public Housing Current Year vs. Prior Year, October 31, 2018 ii. Domestic Violence Grant Program 1. Domestic Violence Program Financial Statement, October 31, 2018 2. Domestic Violence Bank Reconciliation, October 31, 2018 iii. Security Deposit Reconciliation 1. Security Deposit Reconciliation, October 31, 2018 C. Resolutions i. None Consent Agenda Motioned By: Second By: Vice-President Parkes Commissioner Bond Commissioner Yes No Absent Results Dale Priester ☒ ☐ ☐ Doug Parkes ☒ ☐ ☐ ☒ Approved James Bond ☒ ☐ ☐ ☐ Not Approved Krista McDougall ☒ ☐ ☐ Kelly Tomaszewski ☐ ☐ ☐ Old Business: • None New Business: Resolution # Title: Adoption of the 2019 Public Motion By: Second By: 2018-09 Housing Operating Budget Vice-President Parkes Commissioner Bond Commissioner Yes No Absent Results Dale Priester ☒ ☐ ☐ Doug Parkes ☒ ☐ ☐ ☒ Approved James Bond ☒ ☐ ☐ Krista McDougall ☐ Not Approved ☒ ☐ ☐ Kelly Tomaszewski ☐ ☐ ☒ City of Manistee Housing Commission Minutes Meeting Date: December 11, 2018 Page 2 of 5 4  DRAFT Resolution # Title: Adoption of the 2019 Motion By: Second By: 2018-10 Domestic Violence Grant Program Vice-President Parkes Treasurer McDougall Operating Budget Commissioner Yes No Absent Results Dale Priester ☒ ☐ ☐ Doug Parkes ☒ ☐ ☐ ☒ Approved James Bond ☒ ☐ ☐ Krista McDougall ☐ Not Approved ☒ ☐ ☐ Kelly Tomaszewski ☐ ☐ ☒ Resolution # Title: Write Off of Doubtful Motion By: Second By: 2018-11 Accounts December 2018 Vice-President Parkes Treasurer McDougall Commissioner Yes No Absent Results Dale Priester ☒ ☐ ☐ Doug Parkes ☒ ☐ ☐ ☒ Approved James Bond ☒ ☐ ☐ Krista McDougall ☐ Not Approved ☒ ☐ ☐ Kelly Tomaszewski ☐ ☐ ☒ Resolution # Title: Adoption of the Updated 125 Motion By: Second By: 2018-12 Cafeteria Plan Documents Vice-President Parkes Commissioner Bond Commissioner Yes No Absent Results Dale Priester ☒ ☐ ☐ Doug Parkes ☒ ☐ ☐ ☐ Approved James Bond ☒ ☐ ☐ Krista McDougall ☒ ☐ ☐ ☐ Not Approved Kelly Tomaszewski ☐ ☒ ☐ City of Manistee Housing Commission Minutes Meeting Date: December 11, 2018 Page 3 of 5 5  DRAFT Resolution # Title: Authorization for Executive Motion By: Second By: 2018-13 Director to Sign License of use of Vice-President Parkes Treasurer McDougall Property Located on 12th Street by the City of Manistee Commissioner Yes No Absent Results Dale Priester ☒ ☐ ☐ Doug Parkes ☒ ☐ ☐ ☒ Approved James Bond ☒ ☐ ☐ Krista McDougall ☐ Not Approved ☒ ☐ ☐ Kelly Tomaszewski ☐ ☐ ☒ Executive Director’s Report: • Executive Director, Clinton McKinven-Copus provided the Commissioners with an update on the status of the discussions with the City of Manistee paying for the City Ordinance rental inspections. Other Staff Reports: • None Finances: • Approved with Consent Agenda Committee Reports: • None Communications: • None received Public Comment: • None Commissioner Report/Comments: • None City of Manistee Housing Commission Minutes Meeting Date: December 11, 2018 Page 4 of 5 6  DRAFT Meeting Adjourned Adjournment Motion By: Second By: Time: 4:45 PM Vice-President Parkes Commissioner Bond Commissioner Yes No Absent Excused Absent Non-Excused Dale Priester ☒ ☐ ☐ ☐ ☒ Approved Doug Parkes ☒ ☐ ☐ ☐ James Bond ☒ ☐ ☐ ☐ ☐ Not Approved Krista McDougall ☒ ☐ ☐ ☐ Kelly Tomaszewski ☐ ☐ ☒ ☐ Dale Priester Clinton McKinven-Copus President Executive Director/Secretary City of Manistee Housing Commission City of Manistee Housing Commission Minutes Meeting Date: December 11, 2018 Page 5 of 5 7  RESOLUTION 2019-01 Authorization to Execute Contract for RAD Legal Services WHEREAS, the City of Manistee Housing Commission [CMHC] received from the U.S. Department of Housing and Urban Development [HUD] a Commitment to Enter into a Housing Assistance Payments [CHAP] in the Rental Assistance Demonstration [RAD] program on November 13, 2018; and WHEREAS, it is in the best interest of CMHC to have legal services prepared to represent and navigate CMHC through the laws, regulations, and requirements of both the federal government and the State of Michigan; and WHEREAS, CMHC issued Solicitation/RFP P18001 Legal Services/RAD Development on October 22, 2018; and WHEREAS, four legal firms responded Reno & Cavanaugh, PLLC Fox Rothschild, LLP Saxon Gilmore Nixon Peabody, LLP All firms were deemed responsive to the Solicitation/RFP; and WHEREAS, each proposal was evaluated and independently scored by the CMHC evaluation team. Members of the CMHC evaluation team consisted of Doug Parkes Lindsay McIntyre Clinton McKinven-Copus 8 The final ranking and scoring as determined by the CMHC evaluation team is: Average Final Points Name of Proposer Rank Awarded Reno & Cavanaugh, PLLC 1 97.3 Fox Rothschild LLP 2 91.0 Saxon Gilmore 3 87.3 Nixon Peabody LLP 4 87.0 Top-rated Responsive and Responsible Proposer NOW, THEREFORE, on the motion of Commissioner - , supported by Commissioner - , and voted upon as follows, BE IT RESOLVED, that the CMHC adopts the following resolution: The Board of Commissioners of the City of Manistee Housing Commission authorizes Clinton McKinven-Copus, its Executive Director and Contract Manager to prepare a contract between the City of Manistee Housing Commission and Reno & Cavanaugh compliant with all federal procurement regulations guaranteeing the requested services of Solicitation/RFP P18001 Legal Counsel/RAD Development. The contract shall state a not to exceed the value of $75,000.00 and provide for an additional not to exceed amount of $25,000. Funds for payment of the contract will come from a mix of Capital Funds, RAD funding and development fees. NOW, THEREFORE, IT IS HEREBY RESOLVED Commissioner Approve Against Absent Dale Priester ☐ ☐ ☐ Doug Parkes ☐ ☐ ☐ Krista McDougall ☐ ☐ ☐ Kelly Tomaszewski ☐ ☐ ☐ James Bond ☐ ☐ ☐ RESOLUTION DECLARED ☐ Passed ☐ Failed 2 9 CERTIFICATION By the signatures of the President and Executive Director below, it is CERTIFIED that on January 22, 2019, the City of Manistee Housing Commission Board of Commissioners approved Resolution 2019 – 01 and that the preceding is a true and correct copy. _________________________________ _________________________________ Dale Priester, President Clinton McKinven-Copus, Executive Director 3 10 Report of the Executive Director January 2019 Public Housing Occupancy – 2018 Review All Properties Monthly Occupancy Rate 2018 105% 100% 95% 90% 85% 80% 75% Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Harborview 96% 96% 94% 94% 98% 100% 94% 91% 89% 94% 100% 98% Century Terrace 88% 86% 88% 92% 92% 96% 96% 95% 95% 97% 96% 97% Scattered Sites 94% 96% 96% 98% 96% 98% 100% 98% 98% 98% 98% 100% All Properties 91% 91% 91% 94% 94% 97% 96% 95% 94% 97% 97% 98% We finished 2018 strong, with an overall occupancy in December of 98%. I credit the hard work of our staff and their keeping the goal of meeting the HUD requirement of an overall occupancy rate of 97%. CMHC hit HUD’s target solidly in the last quarter of the year, and that will have a definite impact on our HUD scoring. All Properties Overall Occupancy 2018 The year-end average occupancy rate also 6% finished strong at 94% occupancy. As you will see in the following charts, the property with the greatest rate of turnover is our largest and has a disproportional effect on our overall Occupied Units occupancy rate. Vacant Units 94% Page 1 of 7 11  Century Terrace Century Terrace, as our largest property, experiences the most fluidity in its occupancy rates. The property began 2018 with an occupancy rate of 88% and struggled through the first quarter. By the start of the second quarter, we started to see a rise in the occupancy rate that ended the year within HUD’s requirements. Century Terrace: 119 Units Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Occupied Units 105 102 105 110 110 114 114 113 113 116 114 115 Vacant Units 14 17 14 9 9 5 5 6 6 3 5 4 Occupancy % 88% 86% 88% 92% 92% 96% 96% 95% 95% 97% 96% 97% Occupied Units Vacant Units Occupancy % The year 2018 was a transitional year for Century Terrace as we focused on returning it to senior and disabled housing. The turnover and eviction rates for Century Terrace are the highest of our properties, not just because of its size, but because of our transition from the HUD designation of occupancy to the general population. Century Terrace finished the year with an average occupancy rate of 93%. The property realized and occupancy gain of five when we compare the number of move-ins versus move-outs. Of the move-outs for this property, 42% were due to evictions. Century Terrace Overall Occupancy 2018 CENTURY TERRACE 2018 7% 24 19 Occupied Units 8 Vacant Units Move-ins Move-outs Evictions 93% Page 2 of 7 12  Harborview Harborview with 48 units is one of our most stable properties. The population of this property is nearly all senior and disabled and rarely move out unless necessary. Harborview: 48 Units Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Occupied Units 46 46 45 44 46 47 44 43 42 44 47 46 Vacant Units 2 2 3 4 2 1 4 5 6 3 0 1 Occupancy % 98% 98% 96% 94% 98% 100% 94% 91% 89% 94% 100% 98% Occupied Units Vacant Units Occupancy % Harborview Overall Occupancy 2018 Harborview 2018 6% 13 Occupied Units 9 Vacant Units 0 94% Move-ins Move-outs Evictions A unique characteristic of the population at the Harborview property is that we rarely have an eviction case. Page 3 of 7 13  Scattered/Family Sites Our Scattered Site properties, also known as our family sites, consists of 47 units ranging from one bedroom duplexes to four bedroom single family homes. The past year has been a rather stable one for these properties. Scattered Sites: 47 Units Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Occupied Units 44 45 45 46 45 46 47 46 46 46 46 47 Vacant Units 3 2 2 1 2 1 0 1 1 1 0 Occupancy % 94% 96% 96% 98% 96% 98% 100% 98% 98% 98% 98% 100% Occupied Units Vacant Units Occupancy % Scattered Sites Overall Occupancy SCATTERED SITES 2018 2018 9 2% 5 Occupied Units 4 Vacant Units 98% Move-ins Move-outs Evictions CMHC’s properties did very well in 2018. Our Program Director, Lindsay, worked hard at filling vacant units with eligible households and retaining current residents. The Maintenance Team [Kevin, Tony, and Bob] worked hard at maintaining our properties and preparing vacant units for new residents. Page 4 of 7 14  Financial Dashboards Partial Federal Shutdown: As I prepare this report, the federal government shutdown is in full force. It is my sincere hope that by the time you read the report, or at our meeting on January 22, the shutdown has ended. Due to the shutdown, CMHC will not receive monthly operating fund support starting March 1. We have received the January operating fund support of $44,493.50 and will receive the same amount in February. Unless the shutdown ends before March 1, Projected March income and expense with shutdown remaining in force: Income [Projected Rent] $49,839.00 Operating Expense [Average] $90,000.00 Shortfall [Projected] $40,161.00 March financial shortfall will by reserves. Barring any emergency expenditures or the ending of the shutdown, the financial forecast for April is similar. In response to the shutdown and projected operating fund shortfall, the following actions have been taken: • Unit turns have been stopped unless there is an eligible household ready to move in • Work orders are limited to emergency and health and safety issues • The Resident Service Stipend Program has been suspended starting February 1 • One full-time maintenance employee has been laid off starting February 1 Other actions that to be taken between now and February 15: • Lay off of additional full-time maintenance employee • Reduction of part-time management position by 10 hours per week • Suspension of after-hours work orders [including lock-outs] other than emergency, health & safety work orders • Snowplowing and ice treatment of properties will not begin until 8:00 AM and will end at 5:00 PM weekdays; weekends will be determined as needed • Limiting front office window to three [3] hours per week [appointments will continue to be scheduled] • Public restrooms will be locked • The garbage shoots in Century Terrace and Harborview will be locked, and residents will need to take their garbage outside the dumpster. This action is required because the trash compactor for the garbage shoots produce a large bag that can weigh up to 200 pounds and require to individuals to carry and dump in the dumpster. As of February 1, CMHC will have one maintenance employee. All of these measures are subject to change if the shutdown ends or CMHC financial constraints change. I will be sending a letter to the residents about the changes. Page 5 of 7 15 Other Financial Information: The CMHC accountant will publish the November and December 2018 financial statements mid to late February due to our fiscal year-end of 12/31. There is some good news! The costs for pest management 2018 were greatly reduced in comparison with 2017. Pest Man agement C o st s 2 0 1 8 $20,000 $18,000 $16,000 $14,000 $12,000 $18,574 $10,000 $8,000 $6,000 $10,133 $8,441 $4,000 $2,000 $- General Bed Bug Total Treatment Treatment Pest Management Expense Comparison 2017 vs. 2018 2018 YTD $18,574 2017 YTD $42,750 Page 6 of 7 16  Resolutions for Consideration Resolution Consent Resolution Title Resolution Attachments Executive Director Discussion & Recommendations No. Agenda 2019-01 No Authorization to Execute • None • HUD has provided no guidance concerning the required Contract for RAD Legal Services deadlines for timelined submissions for RAD. Though it is widely thought that HUD will adjust the timeline because of the shutdown, that cannot be assumed. Therefore we must proceed as if the timelines remain in effect. • Resolution 2019-01 provides for the engagement of Reno & Cavanaugh as legal counsel, representing CMHC as we move forward in fully developing our RAD plan and partner with a private developer. • Immediate funds for the contract will come from CFP. However, those will be reimbursed with earned developer fees as we move forward with our RAD contract. • Recommendation – Approve Notices and General Information None Page 7 of 7 17