Nashua Housing and Redevelopment Authority

MINUTES OF THE REGULAR MEETING OF THE COMMISSIONERS OF THE NASHUA HOUSING AUTHORITY HELD JANUARY 23, 2015 The Commissioners of the Nashua Housing Authority (NHA) held its regular meeting at the office of the Nashua Housing Authority, 40 East Pearl Street, First Floor, Nashua, New Hampshire, at 8:00 a.m. on Friday, January 23, 2015. Chairperson James Tollner called the meeting to order, and the Recording Secretary called the roll at approximately 8:06 a.m. with the following responses: Present Absent James Tollner Eric Wilson Paul Deschenes Thomas Monahan The following persons were also present: Lynn Lombardi, Executive Director; Scott Costa, Assistant Executive Director; Lisa Cox, Section 8 Program Manager; James Floras, Property Manager; Andrea Reed-Lenane, Property Manager; Cary Soto, Finance Manager; Sheila Galligan, Recording Secretary. MINUTES: The Chairperson entertained a motion to waive the reading of the Authority’s December 19, 2014 meeting minutes and non-public meeting minutes, to accept them and place them on file. Mr. Deschenes made the motion, and Mr. Wilson seconded the motion. The Chairperson asked if there were any comments, additions/deletions, corrections, or discussion. There being none, the motion carried unanimously. COMMUNICATIONS: The Chairperson entertained a motion to waive the reading of the Communications, accept them, and place them on file. Mr. Wilson made the motion, and Mr. Deschenes seconded the motion. The Communications were as follows: Monthly Operational Reports – December 2014 – consisting of Public Housing and Section 8 Waiting List Report; Vacancy Report; Vacancy Report Compilation Sheet; Work Order Report; Rent Collections Report; Updated After-Hours Employee Phone List. The Chairperson asked if there were any questions, comments, additions/deletions, corrections, or discussion. Mr.Deschenes asked if the amount of $2,189.70 listed on the Rent Collections Report for Bronstein was a debit or credit. Ms. Lombardi explained many residents have overpaid their rent. She stated the back page of the Rent Report lists the percentage of rent uncollected at the end of the assessed period. The last line is extremely low this month, at 1.13%, which indicates that our Property Manager’s are doing a fine job of making sure our residents are paying their rent on time and adhering to payment agreements. She explained the percentage fluctuates from month to month. Sometimes it goes as high as 6%, depending upon how many residents are on payment arrangements. Ms. Lombardi stated Andi Reed-Lenane and Jim Floras did a good job managing rents. The Chairperson asked if there were any additional questions. There being none, the motion carried unanimously. EXECUTIVE DIRECTOR’S REPORT: I want to thank the Board on behalf of the staff for allowing NHA to have a holiday gathering last month. The staff enjoyed the party and the holiday classic movie. Mondadnock Securities requested, and NHA completed the change out of batteries in twenty locksets to pursue debugging the remaining issues with the wireless door lock access system. The four remaining LAN devices have been installed by Monadnock also. NHA has forwarded all existing information, reports and costs from Mondadnock to Attorney Gormley. Attorney Gormley is in agreement that Concentric provided a negligent installation, and is drafting a letter to Concentric requesting that they remedy the faulty wiring. NHA will also be requesting repayment of all costs incurred as a result of the negligent installation. I met with Peter Roche, the consultant working with Southern NH Services (SNHS) to discuss the Salmon Brook project, and NHA’s interest in providing Project-Based Vouchers. This 31-unit development has been awarded Low Income Housing Tax Credits to support the new construction of these supportive housing units. Unfortunately, SNHS was unsuccessful in securing funding from the Federal Home Loan Bank for Affordable Housing Programs. This has left them with a $400k capital gap in which they would like the NHA to consider one of two alternatives to assist them with this funding shortfall. The first option is to sign a HAP Contract at the “exception rent”, which would be 110% of the Payment Standard for one-bedroom units. I expressed significant discomfort with this strategy since it would create a precedent that might be difficult for the NHA to defend in future requests, and would result in fewer S8 Vouchers for applicants. The current Fair Market Rent for one-bedroom units is $888, and NHA set its Payment Standard at $899 in November 2014. Increasing to 110% would increase the Payment Standard to $977 for one-bedroom units at Salmon Brook. The second option is to increase the allocation of S-8 PBVs to 31 (from their original request of 20 PBVs) subject to availability and Board approval. I informed Mr. Roche that I would be speaking with the Board regarding these strategies, and would seek direction. Salmon Brook is anticipated to begin construction sometime on or before June 1, 2015, and will tentatively begin occupancy in the fall 2016. This would leave NHA with ample time to set aside Project-Based Vouchers to be used at this property. The development is comprised entirely of one-bedroom units, and will serve the elderly population working off of a waiting list through the NHA. I did speak with Mr. Roche about the possibility of receiving financial reimbursement through SNHS for the costs associated with the NHA opening a waiting list specific to the Salmon Brook development, in which he indicated he would be open to identifying reasonable costs associated with this. I recommend the Board consider the second option for PBVs at Salmon Brook.  Also before the Board is HUD correspondence mailed to the Commissioners in reference to the Late Presumptive Failure, and Troubled Performer Designation. The NHA is required to submit a plan to HUD within 30 days from the date of receipt of the letter. We th th received it on the 20 so that would bring us to Feb 19 . The Chairperson asked if there were any questions, comments, additions/deletions, corrections, or discussion. Mr. Wilson requested verification that this is the same issue discussed in prior meetings. He also asked what the physical inspection was primarily related to. Ms. Lombardi confirmed it was the same issue previously discussed. She also explained the physical inspection is the annual REAC inspection where a consultant hired by HUD comes out to conduct property inspections both inside and out of the properties. Ms. Lombardi stated the NHA actually increased its score from the previous year in this area. Mr. Monahan reserved judgment because he received his Commissioner’s packet this morning and has not had a chance to fully review the information. He will follow up with Mr. Tollner. Mr. Tollner and Ms. Lombardi confirmed they both received their HUD letters on the th 20 . Mr. Tollner asked Ms. Lombardi to draft a response to HUD and share it with the Commissioners via e-mail to compose a final response. Mr. Wilson asked Ms. Lombardi if she had an idea what the score would have been had the financials been submitted in a timely fashion. Ms.Lombardi stated she had recently requested that information from HUD. Mr. Wilson asked her to follow up. Mr. Toller asked Ms. Lombardi about changes in the Executive Director’s Report. Ms. Lombardi stated she updates the report every month before the Board meeting and sends the updated Report to the Recording Secretary to record in the minutes so that the minutes reflect the correct version of what was discussed. Mr. Monahan requested additional information and clarification on the Salmon Brook project and related vouchers. Mr. Monahan stated he is favor of the project but expressed concern there would be adverse effects on NHA vouchers. Ms. Lombardi stated there would not be adverse effects and the total amount of vouchers would not change. The same amount of families would be assisted and it would bring costs down. The program would help the elderly stay in place instead of in nursing homes. Ms. Lombardi suggested consideration of the 31 PBV’s at the current rent that NHA offers as opposed to doing an exception to the payment standard. Mr. Monahan made a motion for the 31 Project-Based Vouchers (PBV’s) at the market value, not the 110% of the market. Mr. Wilson seconded the motion. The Chairperson entertained a motion to accept the Executive Directors Report. Mr. Monahan made the motion, and Mr. Deschenes seconded the motion. The Chairperson asked if there were any further questions or comments. There being none, the motion carried unanimously. NEW BUSINESS: RESOLUTION NO. 15-2256 BY THE NASHUA HOUSING AUTHORITY APPROVING THE AGREEMENT BETWEEN ETCHSTONE PROPERTIES, INC. AND THE NASHUA HOUSING AUTHORITY TO PROCESS A LOT LINE ADJUSTMENT PLAN FOR PROPERTY OWNED BY THE AUTHORITY, AND LOCATED AT 3-34 ELEVENTH STREET, KNOWN AS MAP 87, LOT 47. THE PORTION OF LAND TOTALLING APPROXIMATELY 3,492 SQUARE FEET SHALL BE CONVEYED AT THE CLOSING OF THE ACQUISITION, BY QUITCLAIM DEED, TO ETCHSTONE PROPERTIES, INC. THE BOARD OF COMMISSIONERS PROVIDES AUTHORIZATION TO THE EXECUTIVE DIRECTOR OF THE AUTHORITY TO EXECUTE THE AGREEMENT. The attached Agreement underwent legal review on January 12, 2015 by the Nashua Housing Authority’s attorney, Arthur O. Gormley, III, Esquire. Following the legal review, it was recommended that the Agreement be presented to the Board for approval. Mr. Tollner stated he is assuming the attachment is what was agreed upon with Kevin Slattery and his attorney, Brad Westgate at the meeting held December 12, 2014 when they presented the lot line and the plan to the Board. The plan in the attachment looks exactly the same as what was presented to the Board. Mr. Tollner will assume that where the fence stands on the property line will remain the same. He assumes the resolution is only conveying the triangular piece of land to the present owners, who will turn it over to Etchstone Properties, Inc. Ms. Lombardi confirmed. The Chairperson entertained a motion to approve Resolution No. 15-2256. Mr. Wilson made the motion, and Mr. Deschenes seconded the motion. The Chairperson asked if there were any questions, comments, additions/deletions, corrections, or discussion. Mr. Wilson asked if there was a financial transfer for the property. Mr. Monahan expressed concern of passage as written. He stated he supports passage but is concerned HUD needs to sign off. Mr. Monahan was concerned about legalities preventing the Authority from executing the Deed. He requested the Deed have flexibility, including extending the dates, if need be. Mr. Wilson agreed, stating the Deed should include language that states conveyance is set aside. Mr. Monahan agreed. It was agreed the Deed must contain language that vacates the conveyance. Mr. Monahan stated he is in favor as long as it can be done legally and has flexibility of extending specific dates. He suggested the possibility of a land lease.  Mr. Wilson amended his motion for final passage to include the discussion and the requirements. Mr. Deschenes agreed. The Board requested Ms. Lombardi e-mail the Commissioners the document after the changes. The Commissioners will read it and respond in writing. Ms. Lombardi will be the signatory of the document once approved. The Chairperson asked if there was any further discussion. There being no discussion, the Recording Secretary called the roll with the following responses: AYES NAYS Thomas Monahan Paul Deschenes Eric Wilson James Tollner Motion carried unanimously. BILLS/INVESTMENTS: The Chairperson called for a motion to pay the bills as listed on the Cash Disbursement List - check numbers 53399 through 53512, and from the Supplemental Cash Disbursement List – check numbers 53371 through 53398 and from the Park View Apartments Cash Disbursement List – check numbers 4833 through 4847 and to approve the Investments as listed. Mr. Wilson made the motion to pay the bills and leave investments in place and Mr. Monahan seconded. There was a brief discussion on a deposit received for premium reimbursement from the NHA’s health insurance provider, HealthTrust. The Chairperson asked if there were any concerns or further discussion. There being none, the motion carried unanimously. PUBLIC COMMENT: None. ANY OTHER BUSINESS WHICH MAY COME BEFORE THE BOARD: None. COMMISSIONERS’ COMMENTS: Mr. Tollner requested the Board enter into Non-Public Session to discuss personnel matters at 8:45. NONPUBLIC SESSION: The Chairperson entertained a motion to enter Nonpublic Session at 8:46 a.m. to discuss personnel matters. Mr. Wilson made the motion, and Mr. Monahan seconded it. The Recording Secretary called the roll with the following responses: AYES NAYS Thomas Monahan Paul Deschenes Eric Wilson James Tollner Motion carried unanimously, and Nonpublic Session began at 8:47 a.m. At 8:54 a.m. the Chairperson entertained a motion to rise from Nonpublic Session. Mr. Tollner made the motion, and Mr. Wilson seconded the motion. The Recording Secretary called the roll with the following responses: AYES NAYS Thomas Monahan Paul Deschenes Eric Wilson James Tollner Motion carried unanimously, and Nonpublic session ended at 9:44 a.m. ADJOURNMENT: Mr. Wilson made a motion to adjourn. Mr. Monahan seconded the motion. Motion carried. The meeting adjourned at approximately 8:55 a.m. Respectfully submitted, Sheila A. Galligan Recording Secretary