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THE FORT COLLINS HOUSING AUTHORITY
E` -M-440- R I-N- D U- M
DATE: May 2, 1978
TO: Fort Collins Housing Authority
FROM: John D. M craw, Executive Director
RE: Minutes of the April 10, 1978 Regular Meeting
I. Call to Order
The meeting was called to order at 4:45 p.m, in the Housing Authority confer-
ence roan at 1715 West Mountian Avenue by Chairwanan Mary Klopfenstein.
II. Roll Call
Present: Staff:
Mary Klopfenstein John McGraw, Executive Director
Charlie Muenzberg Donald Young, Accounting Technician
Ray Hale Jack Dolan, Housing Production Coordinator
Ken Franzen Alicia Schiager, Secretary
Pete Sanchez
Guests:
Carl Glaser, Consulting Architect, COLA. 41-2
Rebecca Elliot, Housing Authority Attorney
III. Consider Approval of the March 13, 1978 Regular Meeting Minutes
Ken Franzen moved approval of the Monday, March 13, 1978 regular meeting
minutes. Ray Hale seconded and the motion carried with the following vote.
Ayes: Cc mdssion Members Klopfenstein, Franzen, Hale, Muenzberg, Sanchez.
Nays: None.
IV. Status of Negotiations Toward Assignment of Oakbrook II to the Housing Authority.
Don Young, Accounting Technician, referred to his April 13th man to the Board
100% Recycled Bond
Fort Collins Housing thority
'Minutes of the Apri]e, 1978 Regular Meeting •
Page Two
regarding the Board's March 13th decision not to finance American Develop-
ment Corporation 's Oakbrook II elderly project and direction to negotiate
toward assignment of the project to the Housing Authority. Don indicated
that American Develop not Corporation wishes to proceed on their own.
V. Selection of Bond Underwri
Charlie Muenzberg expressed concern that Housing Authority/Housing Finance
Authority bond financing of projects was an unproven method and that "CHFA"
is available to bond finance. "Why should we be the pioneers when
offers a proven method.
Don Young indicated that lh% interest could be saved via the Housing Authority/
Housing Finance Authority method. John McGraw expressed concern that HUD
allowed FMR's have presented a barrier to the construction of needed housing
because they do not equate with actual costs of development, but that re-
duced interest cost could save ;i million dollars on a 2.5 million dollar
Project and, therefore, make projects feasible even under the allowable FMR's.
It was further noted that each project would be reviewed for Housing Authority
consideration of the need in each case to use the Housing Finance Authority
method of financing.
Don Young presented information on Boettcher and Company, the most recent bidder
for underwriting Housing Authority/Housing Finance Authority bonds. However,
Boettcher's bid is to provide financial consultation rather than underwriting.
The consultant approach is less expensive but does not provide the security of
the underwriter's quarantee to buy the bonds. However, Don indicated that
the current bond market virtually assures sale of the bonds.
Other proposals were contained in the March 13th agenda packet.
Charlie Muenzberg moved approval of the Boettcher proposal based on their local
orientation, conservative reputation, and less costly approach. Ken Franzen
seconded the motion and it carried 5 - 0. Ayes: C'cnmission Makers Klopfenstein,
Muenzberg, Franzen, Sanchez, and Hale.
Charlie Muenzberg moved approval of the Boettcher proposed agreement subject
to staff and legal counsel review and inclusion of a section providing the option
to underwrite and designating a fee for same, and the addition of a termination
clause. Pete Sanchez seconded and the motion carried 5 - 0. Ayes: Commission
Menbers Klopfenstein, Sanchez, Mienzberg, Hale, and Franzen. Nays: None.
VI. Waiver of P=
John McGraw indicated that City legal consel will have an opinion for the next
Housing Authority meeting.
•Fort Collins Housing0thority •
Minutes of the April 10, 1978 Regular Meeting
Page Three
John McCraw indicated that the staff response to the HUD management staff
audit recmuendations (previously distributed to the Board) would be mailed
to the Board nenbers. He canmented that the review was generally favorable,
criticisms were constructive and that some criticisms were better directed
at HUD's own operations. The staff response indicates our willingness and methods
to comply, as well as a few recmmendations for HUD correction.
VIII. Executive Director's Report:
A. Financial reports were accepted as submitted. John McGraw noted that the
1974-1977 audit is cacplete and all was found in good order, and all funds
are accounted for.
B. Tenant arrears and collection of losses were briefly discussed and the
report accepted as submitted.
C. Status of project applications:
John McGraw indicated that 40 units of the 80-unit Section 8 Existing
Rent Program proposed have been approved by HUD. We expect to receive the
funds by early May and should be assisting 40 additional families within
two months of receipt of funding. We also received an approval on the
36-unit proposal for Public Housing Rehabilitation. The ACC development
conference will be held at HUD on Wednesday, April 19, 1978.
Dick McCoy's 24-unit West Wind Section 8 New Construction Project will be
reviewed by Planning and Zoning Board for approval tonight.
D. The housing counseling report will be held over for the May 8, 1978 meeting.
E. The tenant newsletter was received.
F. Various news articles were received
G. Ray Hale moved and Charlie Muenzberg seconded a motion to purge the waiting
list semi-annually rather than quarterly because of the cost (roughly $100
per quarter) and because the changes in the list do not appear to warrant
the cost of the quarterly purge. The motion carried 5 - 0. Ayes: Conn
mission Members Sanchez, Klopfenstein, Muenzberg, Hale, and Franzen. Nays:
None.
IX. other Business
A. Consulting Architect Billing:
CCW. 41-2 Architect Carl Glzser clarfified his request for $1218.50 of the
$1430 total flat fee for consulting architectural services per the contract.
Fort Collins housing iLrity
Minutes of the April 10, 1978 Regular Meeting
Page Four
Mr. Glaser indicated that he would cmply with his contract by completing the
remainder of the consulting work within the flat fee, but that he was re-
questing the majority of the fee for his work on the developer packet be-
cause it will have taken the majority of his consulting assigrmient time.
Executive Director McGraw expressed concern over what he considered to be a
continuations of the architect's negative attitude as previously demonstrated
by his projections to developers of the nos -viability of Project 41-2, i.e.,
the architect may be requesting all but $212 of the flat fee because he
doesn't expect the project to progress beyond the preliminary phase, and
wants to be sure he is paid.
Ray Hale moved payment to the Architect per his last billing with a letter
from the Chairwoman expressing Housing Authority concerns about the Architect's
enthusiasm and renuxiiing him that he is a representative of the Housing
Authority, and that he should provide interested developers with factual
information about the project, let the developers decide whether or not to
submit proposals and the Housing Authority would decide based on developer
Proposals and consultation with the Architect whether or not the project
is viable. Pete Sanchez seconded the motion. The Executive Director
indicated that he would consult further with the Architect about available
funding compared to potential costs and other factors regarding the
viability of the project to assure consistent facts, and to determine if
additional funding should be sought to assure project viability.
The question was called and the motion carried 4 - 1. Ayes: Casimission
Mm3mbers Hale, Sanchez, Muenzberg, and Franzen. Nays: Cammission Mwber
Klopfenstein.
X. The meeting was adjourned at 7:15 p.m.