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HomeMy WebLinkAboutHousing Catalyst - Minutes - 03/17/1977DATE: TO: FROM: RE: MEMORANDUM April 5, 1977 Fort Collins Housing Authority Mary Ann Kennaugh, Secretary Minutes of the March 17, 1977 Special Meeting The Special Meeting was called for discussion of remaining agenda items from the adjourned meeting of March 10, 1977. I. Call to Order Called to Order by Chairman Sanchez at 4:15 p.m., in the Community Building, 1715 West Mountain Avenue, Ft. Collins. II. Role Call Members Present: Pete Sanchez, Chairman Nancy McComb Mary Klopfenstein Al Kruchten Charlie Muenzberg Staff: John D. McGraw, Executive Director Mary Ann Kennaugh, Secretary Guests: James McCord, CSU Handicapped Program Lou Stitzel, Neighbor -to -Neighbor III. McGraw suggested remaining agenda items be covered in the following order: IV. C, F, H, and V. Other Business, including: 1) Maximum Fair Market Rents, 2) Miles Lantz billing, 3) Office rearrangement, 4)Social Service report, 5) Notification of modernization funds, and 6) the Housing Assistance Plan. - Chairman Sanchez agreed and asked guest James McCord to give his presentation. - McCord: (Representing a special program at CSU serving the handicapped.) The handicapped involved in the program very uniquely meet the low-income criteria for eligibility in the Section 8 Housing Assistance Program. The handicapped category includes 3-4,000 individuals County -wide, and approximately 2,000 individuals within the City. Current participation in the program is 50 individuals. A survey collecting data on the handicapped is currently being conducted. Survey results and letter of support for the Section 8 Program will be sent to the Housing Authority. The handicapped need: 1) rehabilitative support, 2) equal opportunities, and 3) housing. - Sanchez: What is the current housing status for these individuals? - McCord: Apartments, foster homes, dorms, parents' homes. - Sanchez: It sounds as if they would require Section 8 New Construction. Would they require special construction to accomodate their handicap? The Fort Collins dousing Authority Minutes of the March 17, 1977 Meeting Page Two - McCord: Approximately 10% of those involved in the program are in wheelchairs, the rest of them are ambulatory. The program deals with both physically and mentally handicapped individuals. Out of eight programs offered, there have been no dropouts. - Muenzberg: A standard apartment is feasible for these people? - McCord: Yes. Examples of some of the handicaps involved are speaking and walking disabilities. (Do any of them need other supervision?) Yes. e.g. transportation problems, with some needing supervision for overall living situations. (Sanchez: How do we handle these people?) The ideal situation is a group home,:e.g. five handicapped individuals are living in a group home in Loveland. Housing is only one part of their problem. (Muenzberg: Do they receive any other housing assistance?) S.S.I. However, the $167 and $17 state monies must cover all expenses. - Kruchten: I don't see any reason why we can't cooperate, except for those individuals in wheelchairs (they would require special construction, e.g., wider doorway, accessible light switches, safe stoves, etc.) McCord: Limited first floor facilities are a possibility for these people. - McCord: All recipients of federal funds are required to have an affirmative action plan which provides non-discrimination in housing the handicapped. McGraw: We can work with you and the state and federal governments to see if we are required to, or can establish a requirement to provide a certain number of units for the handicapped. - McCord: We (the handicapped group) would like to write letters to H.U.D. supporting the funding for this type of program (Section 8 Housing Assistance). McGraw is to send the appropriate names and addresses to McCord. IV. C. Notice of Availability ef-Sectioh 8 Exiktinq Rent Subsidles to 60 units - McGraw gave a brief review of the March 10, 1977 meeting regarding the notice of availability of subsidies for 60 units of Section 8. It was indicated at the last meeting that no other housing authority had expressed an intent to apply for these units. It has since been learned that Greeley may apply for 30 of the units. (Greeley has only been able to fill 50 of their current 74 Section 8 Existing Rent units).Motion of the last meeting (3/10/77) to amend the Section 8 application to include an additional 10 units in the application failed. Board member McComb had requested that the question of whether the Housing Authority should apply for the 50 units be con- sidered at this meeting. - Muenzberg: What would happen if no housing authority applied for the available Section 8 units? (McGraw: The available subsidies would go back to H.U.D. Total units available to this region is 60 - Sanchez: (Referring to Section 8 financial reports and '77-'78 Program Options sheet) Just by the figures, it's pretty close (in terms of financial stability of the program.) The Fort Collin4ousing Authority • Minutes of the March 17, 1977 Meeting Page Three - McGraw: Yes and it will continue to be close until we reach 200-250 units or until we decide not to provide any additional needed housing or social services and reduce staff to an operating necessity level. In Ft. Collins we do not have enough low-income housing to have meet the need. Therefore, we have been and are involved in a major effort to secure additional low-income housing. Initially the resources needed to initiate this effort were pro- vided by the city. Later, resources were provided by HUD via the "front end" or development period funding for Project Colo. 41-1. The "front end" for Colo. 41-1 involved a period of over two years and more than $24,000.00 in administrative subsidies. The effort resulted in the new construction of 50 units of Housing Authority owned housing and the reduction of housing need by 50 families. More recently, the resources needed to sustain the effort to obtain more low-income housing to more adequately meet the need, have been provided via the Section 8 Existing Rent Subsidy Program. The "front end" or rent up period for the first 50 Section 8 subsidized existing units was less than one year. The "front end" administrative subsidy for the program amounted to roughly $13,000. As needed housing is developed we must add management and maintenance to our efforts to secure more needed housing. A part time Executive Director and Secretary provided sufficient manpower to secure our first project. However, management and maintenance require additional manpower if we are also to sustain our efforts to secure additional needed housing. The operating budgets allowed for small projects provide for the cost of admin- istration sufficient to meet only the operating necessities and are not sufficient to meet administrative costs incurred in securing additional needed housing or in providing social services above those which can be provided by one or two persons or part time operating staffs. As more needed housing is developed, more operating income will become available. At the 200 to 250 unit level, the administrative cost of providing management, maintenance, social services and additional needed housing development can be provided under the allowable operating budget. - Muenzberg: What happens (to the front end administrative subsidy) if, after a year, we have only 10% of the units filled? (McGraw: There is no obligation to repay. It works the same way the public housing does, administrative dollars would not be retracted.) - Kruchten: (Reference to number of leases in Section 8 Program) Why are there only 46 units filled in January and February? (McGraw: Turnover of participants in the program and one landlord withdrew from the program. We are now full again.) - Muenzberg: What additional expenses would we have with 50 more units? (McGraw: Program Option 1977A (on sheets distributed) gives you the figures.) - Sanchez: The $10,000 (front-end money) bothers me. What if we run out? - Kruchten: With the Section 8 Program, you "get on and slide. The fee paid for maintaining the program is so low that we can't maintain without continually getting more Section 8. My view has always been that we are using the Section 8 Program as a bridge until we get more public housing. (McGraw: (reference to Section 8 Program), There is a break-even point.) We have never been able to test this, The Fort Collinaousing Authority Minutes of the RWch 17, 1977 Meeting Page Four as we have never had enough units to do so. My concern is not 100 units vs. 110 units, rather, 50 units vs. 100 (or 110) units. (Reference to '77-'78 Program Option sheet) Without the additional units, we would need a City subsidy to keep the program going? (McGraw: Yes.) - Klopfenstein: We need to apply for this? (McGraw: Yes.) - McComb: One of our largest remaining responsibilities is financial. In talking with Tom (McComb) and Ron Woods, I find that we are paying $9,000 more per year than we are making for salaries. The problem is, when does it stop. If we get the additional 96 units of new construction, it would require full- time maintenance and we would have to hire additional staff, e.g. maintenance mechanic, social worker. - McGraw: The $9,000 has been covered by the $13,000 fron end ad- ministrative subsidy under Section 8 (which .is income). I would like us to separate the two issues. (The proposal for 96 units of new con- struction vs. the proposal for 50-60 additional Section 8 Existing Rent units.) - Kruchten: I think we are using Section 8 as a bridge until we get more permanent public housing and we can then drop some Section 8 or consider its value or need at that time. What we need to.do is to carry the organization like this (through the Section 8 Program) if we can, until we get more units. - Muenzberg: What are our Section 8 maintenance responsibilities? (McGraw: None, we have only administrative function, e.g. taking applications, verifying eligibility, writing the subsidy checks, housing inspections, handling the leases, etc.) - McComb: The 96-unit decision will be made on April 1st? (McGraw: That is the date prescribed by the State Housing Finance Authority. The eventual developer won't necessarily come to us for management and maintenance.) 41-1 does not cover staff expenses beyond operation (of the 50 unit program itself). (McGraw: That's correct.) - Kruchten: We need more units. - McComb; I apologize. I just didn't realize we were spending $30,000 in salaries. - Bigger isn't better. - McComb: Maybe we better get our house in order before we get more units. - Klopfenstein: We need a minimum staff whether we have 50 units or more. - McGraw: 100 units will more than cover additional maintenance; we will not need to add additional administrative staff. Kruchten: We don't have any choice but to continue; there is no way to cut back expenses to make 50 units viable. (Addressing McComb) What do you suggest? (McComb: I don't know. I have not been making decisions based on the total financial picture. Figures in various financial reports are not the same? Muenzberg: Which figures are not the same? McComb: "I don't want to take your time." Sanchez: (Financial) reports are all made based on ideal conditions. Kruchten: The front end money is recognition by H.U.D. that you need money to fill the units. Muenzberg: Where do you cut expenses if only 25 units are filled? McGraw: Cut critically needed staff or find other resources. Lou Stitzel: I don't think you are going to be without housing (Reference to housing units eligible under Section 8). Section 8 is the only viable way to help some of these low-income people. (You need to keep the program going) for the sake of humanity. The Fort Collinlousing Authority • Minutes of the March 17, 1977 Meeting Page Five The Housing Assistance Plan has shown that there is no available housing. (Klopfenstein: Is the housing there?) We can make it available through negotiations if necessary; because of the need, there are going to be enough people who will reduce rents. - Sanchez: The people are there, but the houses aren't. - Lou Stitzel: The Section 8 Program has a good reputation and good administration. Under the program, people (landlords) are guaranteed a certain percent of the rent, they can recognize the need, etc. - Sanchez: You're saying it's going to be easy. - Lou: I am not. It takes a lot of effort and hours (e.g. inter- agency coordination, trailer parks that are willing to participate, etc.) It is not easy, but it is possible because there are enough people who care. - Board member Kruchten moved that the Housing Authority apply for subsidies for 60 units of Section 8 Existing Rent. Board member Klopfenstein seconded. Discussion followed. - McComb: I would like better accounting of finances before a decision is made. - Kruchten: There is no reason why you can't come down (to the Housing Authority office) and go over the books. I believe the records are correct. - McComb: I can't understand the figures. If I had a better feeling about the Housing Authority financial situation, I could make better decisions. I am not necessarily against it (60 additional units), but I don't feel comfortable with it. - Sanchez: The 60 units were voted down at the last meeting. - Muenzberg: Let's vote on the motion on the floor, we have the right to backtrack. Motion approving application for 60 units passed with the following vote: Ayes: Board members Kruchten, Klopfenstein, and Muenzberg; Nays: Board members Sanchez and McComb. IV. F. Proposed Late Rent Collection Policy McGraw reviewed his memorandum to the Housing Authority regarding this matter (Distributed at the March 10, 1977 meeting), outlining some of the problems experienced with the Consumer Credit Counseling Program. - Sanchez: Did we continue to pay them? - McGraw: They performed well during the period of the contract. (The agreement between Virginia Neal Blue and the Housing Au$hority for consumer counseling, terminated 12/15/76). The proposed Late Rent Policy has been review by Housing Authority staff, legal staff, and Credit Counseling staff. (See Exhibit "A" attached hereto) - Sanchez: Do we have a problem? - McGraw: Yes. We need a written, legal procedure to deal with the situation. We need to avoid a chain reaction effect whereby, if one tenant is late with his/her rent and "gets away with it" for an extended period of time and other tenants (through word-of-mouth) find out about it and they are late with their rent. I don't con- sider it adviseable to just kick the tenants out on the spot. - Sanchez: What is the worst case? - McGraw: One tenant owes about $500 (over a three month period). - Sanchez: What has Wayne been doing? The Fort Collin4ousing Minutes of the March 17, Page Six Authority .1977 Meeting - McGraw: The first action in such cases has been to assign the tenants to work with credit counseling staff. As per the memo regarding administrative changes in the Credit Counseling Program, informal agreements were made with the staff and tenants which proved to be non-functional. - Sanchez: You could have come to us a lot sooner. - McGraw: We were not aware of the impact of Credit Counseling's transition. This (the proposed policy) is the most functional way to immediately deal with the situation. - McComb: Was there resistance? (Reference to tenant participation in the Credit Counseling Program) - McGraw: No. (McGraw summarized an example of problems encountered in one case). Written agreements have been made to make up back rent owed. Total back rents owed are approximately $1,800. Four tenants are substantially behind; others are only a portion behind. When you're talking about low-income people, they sometimes get caught (in financial problems). - McComb: Is there any final time a decision is made? (Reference to the proposed policy and possible eviction). (McGraw: Yes. 24 days. The agreements (payment schedules as outlined in the policy) can go on as long as necessary.) Are we (The Housing Authority) paying for credit counseling? (McGraw: Through City contracts paid with revenue sharing funds, Virginia Neal Blue is obligated to extend credit counseling to all Fort Collins residents who may require it. The funding under city contracts continues through December, 1977.) - Sanchez: What are you doing in the social services area? - McGraw: (Referred the Housing Authority to the Social Services report distributed.) The tenants are refered to appropriate agencies for their needs. The following procedure was outlined for those tenants needing consumer counseling: 1) the social worker finds out who needs the counseling (checking arears) and asks them to meet with the Credit Counseling staff, 2) the social worker meets with a Credit Counseling staff representative to set up a conference with the tenant, 3) the Credit Counseling representative meets with the tenant and develops a budget program, and 5) with the inactment of the new policy a formal legal agreement will be executed by the tenant and the Authority to pay according to a schedule set up by the tenant and Credit Counseling. - Sanchez: How do we find out if these people (tenants) aren't intentionally ripping us off? (McGraw: Essentially through the Credit Counseling.) - Board member Muenzberg moved approval of the Late Rent Policy as distributed. Board member Klopfenstein seconded the motion and motion passed with the following vote: Ayes: Board members Sanchez, McComb, Klopfenstein and Muenzberg. - McComb: (Reference to the loaning of a security deposit back to a tenant) There were justifiable circumstances, but there will always be those circumstances. - McGraw: We made every attempt (in this particular case) to get funds from other sources but just couldn't do it. (Sanchez: I would not like this to happen again.) It will not happen again. The Fort Collins Housing Authority Minutes of the March 17, 1977 Meeting Page Seven IV. H. Proposal to hire a half-time Maintenance Mechanic and - McGraw: We have an extension from CETA for the Social Worker until September. We have made preliminary (not final) arrangements to subsidize 25% of the Social Worker's salary and receive a 75% match through HEW. Having only a half-time maintenance mechanic will create a savings of $350 per month. The CETA Social Worker subsidy ends September 30, 1977. The savings this year via the half-time maintenance funding can be used to fund the Social Worker through the end of the year if no final agreement for the match can be arranged with HEW or the savings this year and in the future can be used to extend the position indifinately. (Reference to half-time maintenance mechanic) Summer will be the toughest time but I think we can handle it with only a half-time maintenance person. - McComb: You can't do it with a half-time maintenance mechanic (based on McComb's communications with tenants and the degree of maintenance they need.) You need to consider preventive maintenance. - McGraw: Finances are budgeted for outside contractual services. We also have additional maintenance resources through the Summer Youth Employment Program. - Muenzberg: Is it the responsibility of this Board to question these functions (administrative duties) of John? - McComb: "He (McGraw) brought it to us." - Sanchez: "I -think we should be questioning it." - McComb: I don't think he can get the job done" (with a half-time maintenance person). - Muenzberg: "I don't think it's our responsibility." I question the philosophy of how we sit here and question everything that John does. Matters like this (the proposed half-time maintenance mechanic) should be a five-minute discussion. We need more cooperation. If we find that John is not doing his job, then we should question him. - Klopfenstein: We (the Housing Authority Boardmembers) are the policy setters: John is the administrator. The management of the outfit is John's responsibility. - Lou Stitzel: You can accomplish a lot of preventive maintenance through the Social Worker. - McGraw: I just wanted to let you know what I was planning to do. If it's not functional, we can change. - McComb: Daily work and preventive maintenance takes time. Would the half-time maintenance person be on call 24-hours a day. (McGraw: Yes.) - Sanchez: We can try it... (By consensus it was agreed that a vote was not necessary and that John McGraw would proceed with the plans for a half-time maintenance person.) V. Other Business Sanchez: I am concerned about a possible conflict of interest with Charlie Muenzberg and his bank's possible handling of a loan for the proposed 96-unit development. He will benefit directly from the project if it goes through his bank. Muenzberg:. I will abstain from voting on any motion related to any project in which the bank may have a vested interest. VI. Meeting adjourned at 6:15 p.m.