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HomeMy WebLinkAbout07/17/2025 - HOUSING CATALYST - AGENDA - Regular MeetingHousing Catalyst Board of Commissioners - July 17, 2025 Agenda July 17, 2025 8:00am - 9:30am MDT In person: Housing Catalyst, 1715 W Mountain Ave, Fort Collins, CO / ZOOM: https://us06web.zoom.us/j/85448061473?pwd=0OYKbb0r6uLHjR16YB2Q7eS75LKPZw.1 I.Call to Order (8:00-8:05)Anne Nelsen a.Mindful Moment b.Citizen Input II.Approval of Minutes from June 26, 2025 Board Meeting Anne Nelsen HC BOC meeting 6.26.2025.pdf III.Committee Updates a.Development Committee Update Kristin Fritz Development Milestones (July 2025).pdf Development 5-Year Project Plans (July 2025).pdf b.Advocacy Committee Update Anne Nelsen c.Other Updates IV.Discussion Items a.Policy for Termination of Housing Choice Voucher Assistance Due to Insufficient Funding Traci McGraw Policy for Termination of Housing Choice Voucher Finalv6.docx V.Legislative and Advocacy Updates a.Colorado Legislative Update Anne Nelsen b.National Legislative Update Julie Brewen  8:00am 8:05am 8:10am 8:10am 8:20am 8:30am 8:30am 8:50am 11 Tentative  c.Fort Collins City Council Legislative and Business Update Emily Francis d.Larimer County Commission Update John Kefalas VI.Legal Issues Jim Martell VII.Other Business VIII.Good News IX.Upcoming Events Development Committee - August 4, 2025  Audit & Finance Committee - August 11, 2025  Advocacy Committee - July 21, 2025  Housing Catalyst Board of Commissioners - August 21, 2025  Wellington Community Housing Board of Directors - August 7, 2025  Care Heartside Hill Grand Opening - August 7, 2025 NAHRO's 2025 National Conference (Phoenix, AZ) - Sept 28-30, 205 X.Adjournment Anne Nelsen XI.For Your Information 9:05am 9:10am 9:15am 9:30amEND 22 Joint Meeting of the Board of Commissioners of Housing Catalyst and Villages, Ltd. DATE JUN E 26 , 2025 Attendees: Commissioners: Lizette Mill-Chair, Anne Nelsen-Vice Chair, Emily Francis, Jennifer Wagner, Karen Dunbar, Heather Clemenshaw Staff: Julie Brewen, Tonya Frammolino, Rachel Gaisford, Michele Christensen, Preston Nakayama, Carly Johansson, Attorney Jim Martell, Lisa Hernandez, Isela Orozco, (Virtual): Meaghan Overton, Steven Chapman, Traci McGraw Guests: Jake Arnold, (Virtual): Vanessa Fenley, Alexis Ogden, Jacob Carlton I. CALL TO O RDER Chairperson Lizette Mill called the joint session of the Board of Commissioners of Housing Catalyst and Villages Ltd. to order at 8:00 a.m. a. Mindful Moment The group engaged in a Mindful Moment as the meeting was called to order. b. Citizen Input There was no Citizen input. II. APPROVAL O F MINUTES F RO M MAY 1 5 , 2 02 5 BOA RD MEETIN G Commissioner Jennifer Wagner requested a revision to the draft minutes, noting that the start time should be added under Section VII: Executive Session. Commissioner Wagner moved to approve the May 15, 2025, minutes as amended. Vice Chair Anne Nelsen seconded, and the motion was passed unanimously. 3 III. ACTIO N IT EMS a. Eastbrook Bond Inducement Resolution Project Manager Preston Nakayama presented the Eastbrook Bond Inducement Resolution seeking approval to establish Housing Catalyst’s intent to issue bonds for the Village on Eastbrook development. The Board action memo with details is located in Boardable for reference. Commissioner Karen Dunbar moved to approve Resolution # HC-RES-2025-06-01 authorizing approval of the Eastbrook Bond Inducement Resolution. Vice Chair Nelsen seconded, and the motion was passed unanimously. b. Myrtle SRO Resolution Chief Strategy and Operations Officer Michele Christensen presented a resolution requesting approval for the sale to Family Housing Networkof 811 East Myrtle Street, Fort Collins, Colorado 80524 (Myrtle SRO). The Board action memo with details is located in Boardable for reference. Vice Chair Nelsen moved to approve Resolution # VIL-RES-2025-06-01 to approve the sale of 811 East Myrtle Street, Fort Collins, Colorado 80524 (Myrtle SRO). Commissioner Wagner seconded, and the motion was passed unanimously. c. Annual Comprehensive Financial Report and Single Audit Report Chief Financial Officer Tonya Frammolino introduced Alexis Odden of Eide Bailly, who presented the final FY2024 Annual Comprehensive Financial Report (ACFR). Ms. Odden reported a clean, unmodified audit with no findings, deficiencies, or compliance issues. She commended the organization for its strong internal controls, financial transparency, and management’s cooperation, especially recognizing the efforts of Director of Housing Assistance Programs Traci McGraw and RA Compliance Coordinator Debra Williams for their work in compliance. Commissioner Dunbar moved to accept the FY2024 Annual Comprehensive Financial Report (ACFR). Vice Chair Nelsen seconded, and the motion was passed unanimously. IV . CO MMIT TEE UPDATES a. Development Committee Update The 5-Year Project Plans and Milestones documents are in the Board meeting packet for reference 4 Chief Executive Officer Julie Brewen provided a brief update, noting that the Development Committee continues to monitor City Council work sessions. She also highlighted the successful grand opening of The Village on Impala, which featured remarks from Mayor Jeni Arndt, Commissioner John Kefalas, HUD Regional Administrator Tim Granger, Division of Housing Director Alison George, and CHFA Director Thomas Bryan. Staff were recognized for their dedication and perseverance in delivering high-quality affordable housing. b. Audit & Finance Committee Update Chief Financial Officer Tonya Frammolino noted the 2025 Board Report is located in the Board meeting packet for reference. Ms. Frammolino reported that the Audit & Finance Committee conducted a detailed review of the FY2024 Annual Comprehensive Financial Report (ACFR), with a focus on the MD&A and transmittal letter. Staff also presented a risk oversight summary outlining key financial risks, including investment, liquidity, interest rate, and capital risks. A planned discussion on LIHTC losses versus targets was postponed allowing for additional analysis and education, with plans to revisit the topic later this year. The committee also received a high-level Q1 business update centered on budget alignment and operational needs. It was noted that the 2025 audit firm RFP will be deferred to 2026 due to staffing capacity, with low risk anticipated in extending the current firm. Upcoming items include review of line of credit renewals for Housing Catalyst and its affiliates, and a mid-year Financial Services strategic work plan update in July. V . LEGISL ATIV E AN D ADVO CACY UP DATE a. Advocacy Update Vice Chair Nelsen provided an update on ongoing advocacy efforts. The Advocacy Committee continues to meet biweekly, focusing on monitoring legislation and providing education at the local, state, and federal levels. Ms. Brewen highlighted recent advocacy efforts included a letter to federal representatives in response to budget hearings, emphasizing the critical role of housing authorities. While a meeting with one congressional office could not be scheduled, staff are working to connect with local district staff. At the local level, follow-up meetings have been held with city council members and a council candidate to continue building support for affordable housing priorities. b. Colorado Legislative Update 5 Ms. Brewen shared that preparation is underway for the upcoming state legislative session, with Colorado NAHRO’s legislative committee. The focus will be on summer outreach and early engagement with legislators. Staff are working to connect with lawmakers currently drafting bills, particularly related to tenant protection legislation. c. National Legislative Update Ms. Brewen reported staff are monitoring federal issues, including uncertainty about the future of Emergency Housing Vouchers, which may end early due to budget authority limitations. She also noted that several staff and board members will attend the NAHRO Summer Symposium in New York this July. d. Fort Collins City Council Legislative and Business Update Mayor Pro Tem Emily Francis shared City Council will hold an executive session next week on water infrastructure in northeast Fort Collins, including the Montava development. Upcoming Council work sessions will cover land use code updates and the CCIP tax renewal, which continues to include funding for affordable housing. Final Council review of the land use code is expected in September. e. Larimer County Commission Update Ms. Christensen reported Larimer County is continuing development of its strategic plan to address homelessness. V I. LEGAL I SSUES There are no new legal issues. V II. OTH ER BUSINESS a. Special Presentation – Strategic Plan Goal 6: Build community support for affordable housing 6 Communications Manager Rachel Gaisford presented on Strategic Plan Goal 6 Community Support for Affordable Housing, highlighting ongoing efforts to build public awareness, trust, and engagement through education, advocacy, and storytelling. In 2024, staff participated in over 34 events, expanded outreach to legislators and community partners, and increased media visibility and resident involvement. Key achievements included national recognition for leadership, strengthened policy influence, and enhanced com munication tools. Looking ahead, the agency remains focused on being responsive, transparent, and aligned with its core values while preparing for future policy and funding changes. V III. ADJO UR N H O USING C ATALYST BO ARD O F CO MMISSIO NERS AND V ILLAGES , LTD. Chairperson Mill adjourned the meeting at 9:17 am. IX. UPCO MING EV E NTS Development Committee - August 4, 2025 Audit & Finance Committee - July 14, 2025 Advocacy Committee - July 21, 2025 Housing Catalyst Board of Commissioners - July 17, 2025 Wellington Community Housing Board of Directors - August 7, 2025 NAHRO Summer Symposium (New York) - July 17 - 18, 2025 Care Heartside Hill Grand Opening - August 7, 2025 7 Development Milestones 8 9 Development 5-Year Project Plans 10 Housing Catalyst Policy for Termination of Housing Choice Voucher Assistance Due to Insufficient Funding I. Purpose This policy outlines the procedures Housing Catalyst will follow when federal funding for the Housing Choice Voucher (HCV) Program is insufficient to continue providing assistance to all current participants. The goal is to ensure an equitable, transparent process that prioritizes vulnerable populations while complying with HUD regulations. II. Background HUD regulations at 24 CFR §982.454 state that a housing authority may terminate housing assistance if funding under the consolidated Annual Contributions Contract (ACC) is insufficient to support continued assistance for all families in the program. This policy provides a structured process for such terminations based on funding constraints. III. Funding Shortfall Determination Housing catalyst will conduct a financial analysis to determine whether a funding shortfall exists. If it is determined that available budget authority is insufficient to support continued assistance, Housing Catalyst will take the following steps to avoid terminations whenever possible: IV. Cost-Saving Measures Before proceeding with terminations, the Housing Catalyst may implement the following cost-saving measures, subject to reasonable accommodation requirements: 1. Lower the payment standard, if permitted by HUD (subject to waiver approval). 2. Lower the Small Area Fair Market Rents (SAFMRs) in applicable zip codes. 3. Adjust subsidy standards for determining voucher size (bedroom allocations). 4. Restrict portability to receiving Public Housing Authorities (PHAs) that will absorb the voucher or where the payment standard is at or below the current local standard. 5. Prohibit moves during the initial lease term for families in units with lease terms less than 12 months. 6. Review and reduce exception rent payments, if applicable. 11 7. Conduct thorough rent reasonableness reviews to ensure rents align with market conditions. 8. Review and adjust utility allowances if usage data indicates overestimation. 9. Delay or freeze issuance of new vouchers, including those from turnover or special purpose voucher programs if allowable. V. Notification to HUD Prior to issuing termination notices due to insufficient funding, the Housing Authority must provide written notification to the HUD Field Office and the assigned HUD Financial Analyst at the Financial Management Center (FMC). This written notice must include: - A detailed description of all cost-saving measures implemented to date, - Justification for why terminations are still necessary, - The proposed number and dates of voucher terminations. VI. Prioritization for Continued Assistance If terminations become unavoidable, Housing Catalyst will prioritize the retention of assistance in the following order: 1. Elderly Households – Head, co-head, or spouse is age 62 or older. 2. Households with a Person with Disabilities – Head, co-head, spouse, or any household member qualifies as a person with a disability under HUD guidelines. 3. Project-Based Voucher (PBV) Participants – Households residing in project-based voucher units. 4. Families with Minor Children – Households with one or more children under age 18. VII. Random Lottery for Remaining Households After applying the above priorities, remaining households will be subject to removal by a random lottery process. This ensures fairness among similarly situated families. Important Note: In the event of extreme funding shortfalls, Housing Catalyst may need to apply the lottery process progressively in reverse priority order. The retention priorities are: 1. Elderly Households 2. Persons with Disabilities 12 3. Project-Based Voucher Participants 4. Families with Minor Children If reductions are necessary, terminations will begin with the lowest-priority group (families with minor children) and proceed upward only as needed. A lottery will be conducted within each group at the point where terminations are required. For example, if funding requires cuts among families with children, a lottery will be held within that group only. If necessary, the process will move to the next higher-priority group, and so on. - The lottery will be conducted internally using an impartial, randomized process. - Results will be documented and retained for recordkeeping and audit purposes. - Affected households will be notified in writing of the outcome. VIII. Notification and Termination Process - Families selected for termination will receive written notice at least 60 days in advance, in compliance with HUD requirements. - The notice will include: - The reason for termination, - The effective date of termination, - Referrals to community resources and support services, as applicable. IX. Reinstatement When funding becomes available, families terminated under this policy will be offered assistance in reverse order of removal, consistent with their priority status and date of termination. For example, if terminations were done for families with minor children; they would be the first to be assisted as funds allow. X. Legal and Regulatory Compliance All actions taken under this policy will comply with: - The Fair Housing Act, - HUD regulations, - Housing Catalyst’s Administrative Plan. 13 Reasonable accommodations will be made for individuals with disabilities, in accordance with applicable federal, state, and local laws. 14