HOUSING AUTHORITY

P.O. Box 324 City of Milwaukee Milwaukee, WI 53201-0324 Meeting Minutes HOUSING AUTHORITY MARK WAGNER, CHAIR Sherri L. Daniels, Vice Chair Brooke VandeBerg, Ald. Milele Coggs, and Rep. Kalan Haywood, II Wednesday, February 9, 2022 1:30 PM Virtual Mtg Call-in: 1-877-309-2073 Access Code: 416-097-773# The mission of the Housing Authority of the City of Milwaukee (HACM) is to foster strong, resilient and inclusive communities by providing a continuum of high-quality housing options that support self-sufficiency, good quality of life, and the opportunity to thrive. To view the meeting materials electronically, please go to: https://milwaukee.legistar.com/MeetingDetail.aspx? ID=930033&GUID=0EB6A860-EE87-48CF-ADB7-72E5AA004554&Options=info|&Search= Upon reasonable notice, efforts will be made to accommodate the needs of persons with disabilities who cannot access the meeting via phone. For additional information contact the Housing Authority ADA Coordinator, Patricia Schmidtknecht at 286-5100, (FAX) 286-3456, (TDD) 286-3504 or by writing to the Coordinator at 650 West Reservoir, Milwaukee, WI 53212. Call to Order Meeting called to order at 1:30 p.m. Roll Call Present: 3 - Wagner, Reed Daniels, VandeBerg A. APPROVAL OF THE CONSENT AGENDA Commissioner VandeBerg requested Items A.3., R13290, A.4., R13291, A.5., R13292 and A.6., R13293 be moved of Consent Agenda and into Reports and Discussions Items CONSENT AGENDA – ITEMS RECOMMENDED FOR APPROVAL (All items listed under the Consent Agenda will be enacted by one motion unless a Commissioner requires otherwise, in which event, the item will be removed from the Consent Agenda and considered separately.) 1. R13289 Approval of the minutes of the regular meeting held on January 12, 2022 Sponsors: THE CHAIR Attachments: January 12, 2022 HACM Minutes City of Milwaukee Page 1 HOUSING AUTHORITY Meeting Minutes February 9, 2022 A motion was made by Sherri Reed Daniels, seconded by Brooke VandeBerg, that this Motion be APPROVED. This motion PREVAILED by the following vote: Aye: 3- Wagner, Reed Daniels, and VandeBerg No: 0 2. R13296 Approval of the minutes of the special meeting held on February 3, 2022 Sponsors: THE CHAIR Attachments: February 3, 2022 HACM Minutes - Special Mtg A motion was made by Sherri Reed Daniels, seconded by Brooke VandeBerg, that this Motion be APPROVED. This motion PREVAILED by the following vote: Aye: 3- Wagner, Reed Daniels, and VandeBerg No: 0 B. REPORTS AND DISCUSSION ITEMS R13290 Resolution approving the execution of a Real Estate and Membership Interest Purchase Agreement by and among the Housing Authority of the City of Milwaukee, Friends of Housing Corporation and Convent Hill 202, Inc. Sponsors: THE CHAIR Attachments: HACM-Friends Purchase & Sale Agreement Fernando Aniban, HACM’s Chief Financial Officer, summarized the purpose for the purchase agreement, and answered Commissioners’ questions. Commissioners discussed how purchasing the interests will be advantageous to HACM and how those assets will be used once HACM completes the negotiations. Commissioners also discussed the timeline and if there were any risks with these transactions, to which Mr. Aniban affirmed that this proposed agreement is only to document HACM’s intent. The final agreement will come back to the Board for approval. A motion was made by Sherri Reed Daniels, seconded by Brooke VandeBerg, that this Housing Authority Resolution be ADOPTED. This motion PREVAILED by the following vote: Aye: 3- Wagner, Reed Daniels, and VandeBerg No: 0 R13291 Resolution approving staff to enter into negotiations with Friends of Housing Corporation for HACM to provide property management services for Convent Hill Gardens Limited Partnership Sponsors: THE CHAIR Fernando Aniban, HACM’s Chief Financial Officer, explained that Friends of Housing Corporation (FOH) is in the process of liquidating their business and that the units in City of Milwaukee Page 2 HOUSING AUTHORITY Meeting Minutes February 9, 2022 question are the additional 40 units that are in the Convent Hill building, which FOH currently owns. HACM will manage the properties for FOH as a limited partner until the purchase of the interests. Mr. Aniban did note that HACM will need approval from the investor and the U.S. Department of Housing and Urban Development in order to assume management of the property. A motion was made by Mark A. Wagner, seconded by Sherri Reed Daniels, that this Housing Authority Resolution be ADOPTED. This motion PREVAILED by the following vote: Aye: 3- Wagner, Reed Daniels, and VandeBerg No: 0 R13292 Resolution approving amended and restated Bylaws of Travaux, Inc. Sponsors: THE CHAIR Attachments: Travaux Amended Bylaws 02-02-22 Travaux Amended Bylaws Redline 02-02-22 Fernando Aniban, HACM’s Chief Financial Officer, spoke on the amended Bylaws for Travaux, Inc. stating the amendment clarifies some ambiguous language in the Bylaws discovered when preparing for the upcoming Travaux Board elections. The intent of the changes is to clarify the process of the appointment of the officers. Commissioners discussed the purpose for the amendments, the duties of each elected position, how they will delegate duties, and who can hold those positions in the Travaux Board. A motion was made by Brooke VandeBerg, seconded by Mark A. Wagner, that this Housing Authority Resolution be ADOPTED. This motion PREVAILED by the following vote: Aye: 3- Wagner, Reed Daniels, and VandeBerg No: 0 R13293 Resolution approving amended and restated Bylaws of Crucible, Inc. Sponsors: THE CHAIR Attachments: Crucible Amended Bylaws 02-02-22 Crucible Amended Bylaws Redline 02-02-22 Commissioner VandeBerg asked that this item be held over until further internal discussions with Crucible Board members regarding amendments to the Bylaws. A motion was made by Brooke VandeBerg, seconded by Mark A. Wagner, that this Housing Authority Resolution be HELD IN COMMISSION. This motion PREVAILED by the following vote: Aye: 3- Wagner, Reed Daniels, and VandeBerg No: 0 1. R13294 Presentation of the Fourth Quarter Financial Reports for the period ending December 31, 2021 City of Milwaukee Page 3 HOUSING AUTHORITY Meeting Minutes February 9, 2022 Sponsors: THE CHAIR Attachments: HACM Quarterly Financial Report Discussion Points 12-31-21 HACM Quarterly Financial Report Period Ending 12-31-2021 Rick Koffarnus, HACM’s Finance Director, presented the financial reports for the Fourth Quarter of 2021, summarizing documents included with the agenda. Commissioners requested, that year end Utilization Data be provided at the next month’s Board meeting if possible. Commissioners also requested that the Discussion Points include quarterly charts comparing the previous year, and also budget versus actual. 2. R13295 Report from the Acting Secretary-Executive Director Sponsors: THE CHAIR Attachments: Recovery Plan Monthly Update Early Actuarial Contribution Section 3 New Final Rule Overview 12.2.21 Greg Anderson, Travaux’s Vice President of Asset Management, spoke on the Housing Authority’s acquisition of units from Friends of Housing Corporation. The Housing Authority now manages over 5,000 units, which includes market rate units, tax credit units, and over 2300 public housing units. Mr. Anderson noted that staff has been assessing the properties’ conditions, financial ledgers, and evaluating staff to determine if any training is needed. Mr. Anderson stated that there have been some challenges with staffing, however he commended HACM’s Human Resource department for their efforts in obtaining the new hires. Other challenges include obtaining materials for repairs, supplies and appliances in order to get units ready for leasing. Currently HACM’s managers are focusing on the back rents owed and setting up repayment agreements to help residents stay in housing and avoid evictions. Several resources have been made available to residents, such as the Social Development Commission (SDC), a social service nonprofit that provides monies toward security deposits and rents to families in need. Mr. Anderson also stated that residents have been encouraged to use technology to submit documents for applications, recertification packets and income verification via fax, emails and scanning their documents on their phones. Lastly, Mr. Anderson delivered an update on the Monthly Recovery Plan, summarizing the document included with the agenda. Commissioner VandeBerg commended Mr. Anderson on all the additional efforts and services he and staff have provided to the residents. Fernando Aniban, HACM’s Chief Financial Officer, referred to the document provided in the agenda, the Early Actuarial Contribution, and summarized the Employes’ Retirement System payments for the estimated January 1, 2022 Actuarial Valuation, highlighting the challenges to contributions that are due by January 31, 2023. Acting Secretary-Executive Director Hines directed the Board to the Section 3 attachment and asked Kent Britton, HACM’s Procurement Director, to speak on Section 3 and introduce HACM’s new Section 3 contractor, J. Keith Swiney of Motivation, Inc. Mr. Swiney will serve HACM as a third-party vendor to assist HACM in policies and reporting. Mr. Swiney summarized the information attached regarding HUD’s old by-hire format and elaborated how the new reporting rule will be implemented going forward. Commissioners expressed interest in learning more about the new rule City of Milwaukee Page 4 HOUSING AUTHORITY Meeting Minutes February 9, 2022 and want further discussions or workshops on how HACM will proceed. 3. The Board may receive a motion to convene in closed session in consideration regarding employee hiring or promotion, pursuant to Section 19.85 (1)(b) Wis. Stats. to consider dismissal, demotion, licensing or discipline of any public employe or person licensed by a board or commission or the investigation of charges against such person, or considering the grant or denial of tenure for a university faculty member, and the taking of formal action on any such matter; provided that the faculty member or other public employe or person licensed is given actual notice of any evidentiary hearing which may be held prior to final action being taken and of any meeting at which final action may be taken, and that such person has the right to demand that the evidentiary hearing or meeting be held in open session, and pursuant to Section 19.85 (1)(c) Wis. Stats. to consider employment, promotion, compensation or performance evaluation data of any public employee over whom the Board has jurisdiction or exercises responsibility. The Board may then reconvene in open session concerning any such item following the Closed Session, however it is expected that the Board will adjourn the meeting in the Closed Session. Vice Chair Daniels motioned to convene in closed session at 3:30 p.m. and Commissioner VandeBerg seconded the motion. There being no objections, the motion carried. Chair Wagner convened the Housing Authority in closed session in consideration regarding employee hiring or promotion, pursuant to Section 19.85 (1)(b) Wis. Stats. to consider dismissal, demotion, licensing or discipline of any public employe or person licensed by a board or commission or the investigation of charges against such person, or considering the grant or denial of tenure for a university faculty member, and the taking of formal action on any such matter; provided that the faculty member or other public employe or person licensed is given actual notice of any evidentiary hearing which may be held prior to final action being taken and of any meeting at which final action may be taken, and that such person has the right to demand that the evidentiary hearing or meeting be held in open session, and pursuant to Section 19.85 (1)(c) Wis. Stats. to consider employment, promotion, compensation or performance evaluation data of any public employee over whom the Board has jurisdiction or exercises responsibility. The Board may then reconvene in open session concerning any such item following the Closed Session, however it is expected that the Board will adjourn the meeting in the Closed Session. Adjournment Upon reasonable notice, efforts will be made to accommodate the needs of persons with disabilities through sign language interpreters or auxiliary aids. For additional information or to request this service, contact the Housing Authority ADA Coordinator, Patricia Schmidtknecht at 286-5100, (FAX) 286-3456, (TDD) 286-3504 or by writing to the Coordinator at 650 West Reservoir, Milwaukee, WI 53212. Persons engaged in lobbying as defined in s. 305-43-4 of the Milwaukee Code of Ordinances are required to register with the City Clerk's Office License Division. Registered lobbyists appearing before a Common Council committee are required to identify themselves as such. More information is available at http://city.milwaukee.gov/Lobbying. City of Milwaukee Page 5 HOUSING AUTHORITY Meeting Minutes February 9, 2022 Be hereby notified that three (3) members of the Crucible, Inc. Board of Directors may be present at the meeting of the HACM Board of Commissioners, as some members serve on both boards. While a quorum of the Crucible, Inc. Board may be present at the HACM meeting, they will not exercise the responsibilities, authority, or duties vested in the Crucible, Inc. Board of Directors. City of Milwaukee Page 6