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HomeMy WebLinkAboutHousing Catalyst - Minutes - 06/16/2022 Housing Catalyst Board of Commissioners Minutes – June 16, 2022 I. Attendees Commissioners: David Bye, Emily Francis, Ann Green, Cathy Mathis, Jennifer Wagner, Hep Wilkins Staff: Michele Christensen, Tonya Frammolino, Julie Francis, Kristin Fritz, Tara Gaffney, Rachel Gaisford, Traci McGraw, Nichole Rex Guests: Maggie Bolden (citizen), Attorney Jim Martell, Anne Nelsen (Development Committee member) II. Call to Order Vice Chair Jennifer Wagner called the meeting to order at 7:32 am. III. Citizen Input Vice Chair Wagner welcomed Maggie Bolden, who introduced herself as a local citizen supporter of affordable housing. IV. Approval of Minutes from May 19, 2022 Board Meeting Commissioner Hep Wilkins moved to approve the minutes of the May 19, 2022 meeting, Commissioner and Mayor Pro Tem Emily Francis seconded, and the motion was passed unanimously. V. Action Items a. Village on Bryan Renovation Funding Update and Request Senior Project Manager Nichole Rex provided an update on the scope of work for the renovation of Village on Bryan, describing the work to be done to update the property and buildings. Ms. Rex addressed the increased costs associated with the added project scope and discussed current anticipated funding sources for the project. There is a budget gap of approximately $633,000, so potential sources are being sought. She noted that if additional funding is not approved, the scope of work will need to be pared down. Nichole reviewed the project timeline, with anticipated completion in 2023. Chief Real Estate Officer Kristin Fritz explained that these projects require a significant funding commitment. An effort is made to add 20 years of life to renovated/rehabilitated projects. She noted that this project is not eligible for tax credits, so other financing sources need to be found. It was suggested that one option is to use Villages Ltd unrestricted funds to cover the gap in this project. Chief Financial Officer Tonya Frammolino addressed the issue of the gap funding noting that there is a healthy amount of cash in the Villages portfolio. She has researched the potential effect on our S&P rating she feels confident that there is not an issue with funding the initial equity already committed, as well as the additional $633,000. The total funding from Villages Ltd would be $1.9 million. She does not anticipate any negative material impact resulting from the use of these funds. Ms. Fritz noted that the positive input and feedback received from the residents has been greatly appreciated. It is recommended that, with Development Committee support, the Board approve an additional commitment of $633,000 from Villages Ltd unrestricted cash to complete the renovations at the Village on Bryan. Attorney Jim Martell noted that Ann Green needs to recuse herself from a vote on this issue as she is a resident at Village on Bryan. Attorney Martell also noted that, upon adjournment of this Board, a meeting of the Villages Ltd Board should be called to order to approve this funding. Commissioner Wilkins moved to approve the additional funding request of $633,000. Commissioner Francis seconded, and the motion was passed unanimously. VI. Staff Updates a. Development Report 1. Development 5-Year Project Plans Ms. Fritz provided an update to the 5-year project plan. She noted the exciting news that Traunche 1 of the sale to Elevation Community Land Trust, comprised of 12 units, has closed. The second application is making its way through the approval process and approval is expected in July. Traunche 2 is expected to close in September. The work on Village on Impala is moving forward. The tax credit application will be submitted shortly. Ms. Fritz noted that work will begin at 2555 West Plum. Currently in public housing, this property will be moved into the Housing Catalyst portfolio. A capital needs assessment will be undertaken later this year. Ms. Fritz noted that we have an option on the Remington parking lot site and potential uses are being studied and discussed. Ms. Fritz reported that Housing Catalyst is working with the City on the leasing up of Oak 140. 2. Development Milestones (June 2022) Ms. Fritz noted that we submitted Form 8609 on Mason Place. By the next meeting of this Board, this should be finalized. Ms. Fritz reported that Housing Catalyst is officially under contract for the Remington Row property. Her group will be spending the next 120 days on due diligence and will make a decision on whether to move forward with closing on this property. b. Finance Report Ms. Frammolino announced that Tara Gaffney has been promoted to the position of Director of Accounting. Ms. Frammolino provided an update on the 2023 budget process. This year, budgets will be prepared in the computer system, no longer on Excel spreadsheets, and noted that the necessary modules have been purchased in order to accomplish this. The 2023 budget will be presented in September to the Audit & Finance Committee, then to the full Board in October. c. Operations Report Acting Chief Executive Officer Michele Christensen reported that Housing Catalyst received two Eagle Awards from Housing Colorado, both for Mason Place. A group of Board and staff members attended the awards ceremony in Denver in May. Ms. Christensen provided an update on summer hours for employees. Between Memorial Day and Labor Day employees can reduce their work hours from 80 hours per two-week pay period to 72 hours with pay remaining the same. Staff has been excited and appreciative of this extra time off to enjoy summer activities. d. 2021 Annual Report Ms. Christensen noted that the 2021 annual report has been finalized and is available. VII. Legislative Issues/Updates a. Colorado Legislative Update There were no updates b. National Legislative Update There were no updates. c. Fort Collins City Council Legislative and Business Update Commissioner Francis provided an update from the recent City Council meeting, noting that the land use code updates were well received. She noted that the current code is 400 pages long and difficult to read and understand. One objective is to reorganize the code to make it easier for people to use and understand. Housing capacity, diversity, and ways to use remaining land were discussed, along with the issues of housing and affordability. City staff is currently planning community engagement events and will bring this back to City Council in the fall. Ms. Francis noted that this is the first time the code has been updated since 1997. City Council hopes to adopt the new code prior to the November elections. VIII. Legal Issues Attorney Jim Martell noted that there are no legal issues. IX. Other Business Ms. Fritz responded to a question regarding the CARE Housing shortfall for Village on Swallow noting that her team continues to track progress. There is a completion date of August 15 which is about 60 days behind schedule. CARE Housing understands that they will need to find the fees owed to the investor as a result of the delay. Another partnership request has been received from CARE Housing, which is currently being evaluated. X. Upcoming Events a. Development Committee – July 11, 2022 b. Finance and Audit Committee - June 20, 2022 c. Housing Catalyst Board of Commissioners – July 21, 2022 XI. Good News a. Government Finance Officers Association (GFOA) Award Ms. Frammolino reported that Housing Catalyst received GFOA's Certificate of Achievement for Excellence in Financial Reporting, considered the highest form of recognition in governmental accounting and financial reporting. Ms. Frammolino expressed appreciation to her team, which contributed to this award. XII. WORK SESSION: Strategic Plan Goal 4 – Achieve business/organizational excellence As a follow up to last month's discussion of draft Goal 1, Ms. Christensen noted that no changes will be made to the goal; it will be a part of the full Strategic Plan to be presented to the Board in the fall. Ms. Frammolino led the discussion on Goal 4. She reminded Board members of the process for review and revision of the Strategic Plan and provided a reminder of the timeline to review goals over the next months. Ms. Frammolino and Ms. Christensen are the goal stewards for this goal. Although this goal applies to the entire organization, Ms. Frammolino highlighted her team as they are fully involved across the organization in supporting the organization's business activities. She noted that there are three open positions and she is looking forward to building her team. Ms. Frammolino noted that updated wording in the goal provides more specific guidance than current language. She noted the purposeful stress on independent judgement by individual staff members. The updated goal language stresses the increased use of information technology in improving business efficiency and effectiveness. Responding to a question from a Board member, Ms. Frammolino noted that annually and throughout the year, Leadership reviews the mission and Strategic Plan to determine how to meet the goals and strategies, and specific tactics are laid out. She also noted that the strategic plan is routinely integrated into employee discussions, so that employees are aware of how they contribute to the mission and Strategic Plan. Commissioner Wilkins noted that the strategy on empowering employees to go above and beyond is important, and also that acknowledging the issue of training is a great improvement over the current goal. Vice Chair Wagner requested that there be an effort to ensure that the talent piece is consistent across goals. Vice Chair Wagner requested a summary of the use of Yardi as the materials provided in the Board packet were quite extensive. Ms. Frammolino will provide this summary to the Board. XIII. Adjournment Vice Chair Wagner adjourned the meeting at 9:19 am. XIV. Call to Order – Villages Ltd. Vice Chair Wagner called the meeting to order at 9:20 am. a. Village on Bryan Renovation Funding Update and Request Commissioner Wilkins moved to approve the additional funding request of $633,000. Commissioner Francis seconded, and the motion was passed unanimously. XV. Adjournment Vice Chair Wagner adjourned the meeting at 9:19 am.