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 and Ald. Milele Coggs Wednesday, April 13, 2022 1:30 PM Virtual Conference Call-in: (877) 309-2073 Access Code: 966-346-677# 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=965284&GUID=B2B27C70-CD81-4E1B-8838-0FE577006E36&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 414-286-5100, (FAX) 414-286-3456, (TDD) 414-286-3504 or by writing to the Coordinator at 650 West Reservoir, Milwaukee, WI 53212 Call to Order Meeting called to order at 1:38 p.m. Roll Call Present: 3 - Wagner, Reed Daniels, VandeBerg Excused: 1 - Coggs A. APPROVAL OF THE CONSENT AGENDA 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. R13315 Approval of the minutes of the regular meeting held on March 10, 2022 Sponsors: THE CHAIR Attachments: HACM Meeting Minutes for 03-10-2022_Final A motion was made by Sherri Reed Daniels, seconded by Brooke VandeBerg, that this Motion be APPROVED. This motion PREVAILED by the following vote: City of Milwaukee Page 1 HOUSING AUTHORITY Meeting Minutes April 13, 2022 Aye: 3- Wagner, Reed Daniels, and VandeBerg No: 0 Excused: 1- Coggs B. REPORTS AND DISCUSSION ITEMS 1. R13316 Resolution endorsing the Community Development Alliance’s Collective Affordable Housing Strategic Plan Sponsors: THE CHAIR Attachments: Collective Affordable Housing Strategic Plan Support letter Collective Affordable Housing Strategic Plan Gina Stilp, Executive Director with the Zilber Family Foundation, gave a presentation on the Community Development Alliance’s (CDA) Collective Affordable Housing Strategic Plan, asking the HACM Board of Commissioners to endorse the proposal. Ms. Stilp explained that the purpose of the plan is for more Black and Latino families to become homeowners by allowing renters that earn less than $15.00 per hour to pay $650.00 in rent, or no more than 30 percent of the net income, on housing costs. Commissioners discussed the causes for the decline in homeownership and the challenges of affordable rentals. Commissioners also discussed strategies to align the CDA’s Housing Plan with HACM as a road map to attack the challenges and provide affordable housing. Willie L, Hines, Jr., HACM’s Secretary Executive Director, thanked Ms. Stilp for her report and commented that he is a part of the executive team for CDA and looks forward to the continued efforts of the partnership 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 Excused: 1- Coggs 2. R13308 Presentation of the 2020 Audited Financial Statements Sponsors: THE CHAIR Attachments: Executive Summary 2020 Audit Presentation - Baker Tilly HACM Audit Report Financial Statements 12-31-20 FS FINAL HACM Audit Baker Tilly - FINAL Kimberly Schult, CPA and Audit Partner with Baker Tilly, presented the 2022 Audit of HACM’s Financial Statements. Ms. Schult summarized the audit results in the Executive Summary provided with the agenda and explained that the objective of the audit is to express an opinion on HACM’s financial statements based on risk assessment. The audit opinion was stated to be an “unmodified” opinion or a “clean audit”, which means that the financial disclosures were fairly presented according to accounting principles. Ms. Schult also made mention of an “emphasis of matter.” A City of Milwaukee Page 2 HOUSING AUTHORITY Meeting Minutes April 13, 2022 restatement was recorded in 2019 of a net position due to grant revenues that should have been recorded as a receivable from HUD. Also reported in the audit results was a material weakness regarding the internal controls over financial reporting. However, included in the last page of the financial statements, HACM staff has provided a response and a corrective action plan related to that weakness. Ms. Schult commented, as part of the audit, management tested four federal programs for compliance; Housing Choice Voucher, Public Housing Capitol Funds, Public Housing Operating Subsidy and the Choice Neighborhood Implementation Grants, and found no findings. Ms. Schult stated that Baker Tilly is looking forward to the 2021 overall plan and scope of the next audit. 3. R13317 Resolution approving an award of contract to increase the amount to Travaux, Inc. (Milwaukee, WI) to be the Construction Manager as Constructor for the Townhomes at Carver in an amount not to exceed $ 7.4 million Sponsors: THE CHAIR Attachments: Carver - Project Description 4.1.22 Carver Detailed Statement Forecast and Uses _9%_S U-2022.03.23 Carver - G703 Fernando Aniban, HACM’s Chief Financial Officer, gave a summary of the Rental Assistance Demonstration (RAD) Project Description for the Townhomes at Carver, provided with the agenda. Mr. Aniban informed the Board that this project will be closing at the end of May 2022 and construction to begin in late June 2022. A motion was made by Sherri Reed Daniels, seconded by Mark A. Wagner, that this Housing Authority Resolution be ADOPTED. This motion PREVAILED by the following vote: Aye: 2- Wagner, and Reed Daniels No: 0 Excused: 1- Coggs Abstain: 1- VandeBerg 4. R13318 Resolution approving the Housing Authority of the City of Milwaukee to take all action necessary in connection with the rehabilitation and Rental Assistance Demonstration (RAD) conversion of the Townhomes at Carver, including serving as Guarantor for all loans related thereto and as developer for the Townhomes at Carver Sponsors: THE CHAIR Fernando Aniban, HACM’s Chief Financial Officer, stated that the resolution is related to Townhomes at Carver to ensure that Housing Authority covers all legal requirements in order to close on the contract. A motion was made by Sherri Reed Daniels, seconded by Mark A. Wagner, that this Housing Authority Resolution be ADOPTED. This motion PREVAILED by the following vote: City of Milwaukee Page 3 HOUSING AUTHORITY Meeting Minutes April 13, 2022 Aye: 2- Wagner, and Reed Daniels No: 0 Excused: 1- Coggs Abstain: 1- VandeBerg 5. R13319 Resolution authorizing the Secretary-Executive Director to enter into a contract with the City of Milwaukee for the implementation of the American Rescue Plan Act (ARPA) grant for Westlawn Sponsors: THE CHAIR Attachments: ARPA Planned Use ARPA Grant Att - Westlawn - 3.18.22 Willie L. Hines, Jr. HACM’s Secretary-Executive Director, thanked the HACM staff for working diligently in securing the $9 million American Rescue Plan Act (ARPA) funds from the City of Milwaukee. Mr. Hines noted that the attachment provided with the agenda outlines how the funds are to be used for the continued revitalization of Westlawn Gardens. In addition, the resolution allows HACM to enter into negotiations with the City of Milwaukee for their remaining ARPA monies. Fernando Aniban, HACM’s Chief Financial Officer, added that HACM is at the point of finalizing the contract and expected to close in the later part of May 2022. Mr. Aniban further stated that, in addition to the $9 million awarded from the City, a further $6 million in ARPA funds has been awarded to HACM from the State, for a total amount of $15 million, and there are hopes for future funding opportunities. Mr. Hines let the Commissioners know that members of the Common Council, the Mayor’s office, and staff from Governor’s office toured Westlawn and are very excited about the redevelopment. Chair Wagner added his appreciation to the excellent work from staff. 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 Excused: 1- Coggs 6. R13320 Report from the Secretary-Executive Director Sponsors: THE CHAIR City of Milwaukee Page 4 HOUSING AUTHORITY Meeting Minutes April 13, 2022 Attachments: 2022 Approved Fed Budget - Comparative Funding Chart (002) 2022 Approved Fed Budget - FY23 HUD Budget Proposal (002) Recovery Plan Monthly Update Housing Performance for PHA Occupancy Rate 3.31.2022 Housing Performance for Selected Property of Unit Availability 04_05_2022 (1) Housing Performance for - Berryland Northlawn Southlwan Occupancy Rate 3.31.2022 Housing Performance for LLC Occupancy 3.31.2022 Mr. Hines discussed the attached items and made note of particular items of interest for the Board, including highlighting funding approved in the 2022 HUD budget and the initial 2023 budget proposal from the White House. Greg Anderson, Travaux’s Senior Asset Manager, discussed several attachments summarizing various housing components, including the unit availability and occupancy rates. Mr. Anderson also directed the Board to the Monthly Recovery Plan Update, summarizing the document included with the agenda. Mr. Anderson thanked Shirley Wong from the U.S. Department of Housing and Urban Development and her staff for their valuable guidance through the recovery plan. Mr. Hines thanked everyone for their efforts and guidance. Chair Wagner wished everyone a safe holiday and thanked the Board and Mr. Hines for their leadership. 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. 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 5