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HomeMy WebLinkAboutHousing Catalyst - Minutes - 02/17/2022 Housing Catalyst Board of Commissioners Minutes – February 17, 2022 I. Attendees Commissioners: Jennifer Wagner-Vice Chair, David Bye, Ann Green, Hep Wilkins Staff: Julie Brewen, Michele Christensen, Tonya Frammolino, Julie Francis, Kristin Fritz, Rachel Gaisford, Brian Heckart, Carly Johansson, Angelika Lintner, Tracy McGraw, Carri Ratazzi Guests: Jacob Carlton (Gilmore & Bell), Attorney Jim Martell, Anne Nelsen (Development Committee member), Meaghan Overton (City of Fort Collins) II. Call to Order Vice Chairperson Jennifer Wagner called the meeting to order at 7:34 am. III. Mindful Moment Chief Executive Officer Julie Brewen led the group in a Mindful Moment. IV. Citizen Input There was no citizen input. V. Approval of Minutes from January 20, 2022 Board Meeting Commissioner Hep Wilkins moved to approve the minutes of the January 20, 2022 meeting. Commissioner Ann Green seconded, and the motion was passed unanimously. VI. Action Items a. Bond Resolution - Northfield Commons Chief Financial Officer Tonya Frammolino discussed the information regarding the Northfield Commons (Mercy) Resolution. She noted that Jacob Carlton of Gilmore & Bell has joined this meeting to assist in the discussion and to answer questions. Mercy Housing has been working for some time to put together the financing for an 84-unit affordable family apartment project in Fort Collins within a metro district formed by Landmark Homes known as the Northfield Filing. Mercy intends to utilize 4% low- income housing tax credits and private activity bonds to finance the project. Mercy has asked Housing Catalyst to be the issuer for the bonds that will finance the project. Mercy is seeking approval of, not to exceed, $20 million in bond financing. The closing is anticipated to occur in mid- to end of March. The recommendation is for the Board of Commissioners to approve Resolution HC-RES- 2022-02-01 to allow Housing Catalyst to enter into this transaction with Northfield Commons (Mercy). Commissioner Wilkins moved to approve Resolution HC-RES-2022-02-01 with noted minor revisions. Commissioner Green seconded, and the motion was passed unanimously. VII. Staff Updates a. Development Report 1. Development 5-Year Project Plans Chief Real Estate Officer Kristin Fritz noted that there are no major updates since the last meeting of this group. She reported that work is being done to finalize the IRS Form 8609 which is the “final cost certification” and a key milestone for completion of Mason Place. There is also an effort to be sure the Swallow renovation project stays on schedule. 2. Development Milestones 2022-2023 Ms. Fritz reported that there is a search for an artist to do two murals on Oak 140. The murals would be funded by the Downtown Development Authority (DDA), which will conduct the search for an artist. Housing Catalyst is working closely with the DDA on this. Oak 140 remains on schedule. The Swallow renovation project is two weeks behind schedule and there is an effort to regain some control in order to make sure the project is done on time. Ms. Fritz noted that the Development Committee continues to receive detailed updates on the Oak 140 and Swallow projects. 3. Update on Memorandum of Understanding for Remington Parking Lot A Memorandum of Understand (MOU) between Housing Catalyst and the City of Fort Collins, which gives Housing Catalyst the ability to work with the City and to pursue funding to develop the Remington Parking Lot, was presented to City Council this week. The MOU was placed on the consent agenda at the Council meeting and was approved. Ms. Brewen expressed her appreciation and noted that this was a culmination of many years of hard work building Housing Catalyst's reputation with the City. Ms. Brewen noted that Communications Manager Rachel Gaisford will create a set of official talking points to assist Board members and staff to answer questions about this issue. The main message is that Housing Catalyst is happy to be able to invest in our downtown work force and increase neighborhood engagement. b. Finance Report 1. Finance Updates Chief Financial Officer Tonya Frammolino reported that there has been a lot of work by the Finance team and Finance & Audit Committee on establishing a Finance & Audit Committee Charter. This Charter includes a review of Committee responsibilities and expectations, a schedule of meetings, how meetings will be run, etc. Another draft of the Charter will be reviewed at the next meeting of the Finance & Audit Committee; the final document and recommendations will be presented to the full Board in March. The final document will be sent to the Board ahead of time for review. Ms. Frammolino shared that Housing Catalyst Financial Services staff successfully completed the necessary tax forms and filings to secure our annual bond cap carryover. This is an annual process that is required for us to keep bond cap that is unused and earmarked for future projects. Ms. Frammolino reported that the more than $4 million of bond cap that got missed in the 2021 year-end tax form and filing for the annual bond cap process was successfully re-secured via amendments and requests with the IRS. This oversight has officially been resolved and bond cap for future projects secured. VII. Discussion Items Ms. Brewen shared a Moving to Work (MTW) video with the group. Chief Operating Officer Michele Christensen has been participating with 28 other Housing Authorities who will go through the implementation process together. She described the timeline for the process and commented that Housing and Urban Development (HUD) has a very well laid out process, as well as a menu of items to potentially implement. A resolution will be brought to this Board in March to approve Housing Catalyst going forward with the process. At that same meeting, there will be discussion on the Strategic Goal concerning housing assistance, and MTW will be included in that discussion. a. Approval of Development Partnership Objectives/Criteria Ms. Fritz reported that with an increasing number of partnership requests for Special Limited Partnerships (SLP) in Low-Income Housing Tax Credit (LIHTC) deals, Housing Catalyst is updating the objectives and criteria for formal partnership. She provided a summary of the high-level revisions being made to the document. One of the key additions is a section with Threshold Criteria that need to be met in order to move forward with further consideration. A section on General Guidance and Considerations lays out specific criteria in order to maximize the use of local resources. Another important addition is a section on Developer Capacity Requirements, which matches HUD requirements for developer capacity to implement the project. Once finalized, this document will be available to the public through the Housing Catalyst web site and will ensure that potential partners know and understand the criteria prior to any contract and proposal. The recommendation is for the Board to approve the updated document. It was agreed that there will continue to be revisions going forward, but that the Board approves the document in substance. Commissioner Wilkins moved to approve the updated Housing Catalyst Partnership Objectives/Criteria, with the note that revisions can be made as needed in the future in order to further clarify issues and information. Jim Martell noted that there is nothing legally binding in this document, that it simply lays out a process, and so this approval is appropriate. Commissioner Green seconded, and the motion was passed unanimously. IX. Legislative Issues/Updates a. Colorado Legislative Update Ms. Brewen noted that a Housing Colorado bill tracker will be sent to this Board. Ms. Brewen also reviewed bills currently making their way through the Colorado State Legislature. Also State Representative Cathy Kipp and other legislators are planning an affordable housing conversation on February 26 which Ms. Brewen helped organize. Ms. Brewen noted that several issues did not end up in the final draft of the Governor's Transformational Housing Task Force document. Ms. Brewen will send additional information to this Board. b. National Legislative Update Ms. Christensen noted that Congress is currently making decisions on what to include in its appropriations bill, and we are continuing to watch as the Build Back Better Bill progresses. There is hope for legislation to provide affordable housing. c. Fort Collins City Council Legislative and Business Update There was no City Council update. X. Legal Issues Attorney Jim Martell noted that there are no legal issues. Other Business/Upcoming Events a. Development Committee - March 7, 2022 b. Finance Committee - February 28, 2022 c. Housing Catalyst Board of Commissioners - March 17, 2022 XII. Executive Session Commissioners, Julie Brewen and Attorney Jim Martell went into Executive Session. XIII. Action Items Commissioners, Julie Brewen and Attorney Jim Martell returned from Executive Session and rejoined staff and guests in the Regular Session. a. Chief Executive Officer Compensation Approval Commissioner Wilkins moved to approve Julie Brewen's compensation increase. Commissioner Green seconded, and the motion was passed unanimously. Commissioner Wilkins moved to approve Julie Brewen's three-month sabbatical, as outlined in the approval memo. Commissioner Green seconded, and the motion was passed unanimously. Ms. Brewen publicly thanked the Board for approving her compensation increase and sabbatical. XIV. Adjournment Vice Chairperson Wagner adjourned the meeting at 9:14 am.