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HomeMy WebLinkAboutHousing Catalyst - Minutes - 05/19/2022 Housing Catalyst Board of Commissioners Minutes – May 19, 2022 I. Attendees Commissioners: Cathy Mathis-Chair, Jennifer Wagner-Vice Chair, David Bye, Emily Francis, Lizette Mill, Hep Wilkins Staff: Jessica Born, Julie Brewen, Michele Christensen, Justin Corey, Tonya Frammolino, Julie Francis, Rachel Gaisford, Kristin Fritz, Angelika Lintner, Traci McGraw, Carri Ratazzi, Josh Suppes, Breanne Turner Guests: Attorney Jim Martell, Joseph Penta II. Call to Order Chair Cathy Mathis called the meeting to order at 7:32 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 April 21, 2022 Board Meeting With minor revisions, Commissioner Hep Wilkins moved to approve the minutes of the April 21, 2022 meeting. Commissioner David Bye seconded, and the motion passed unanimously. VI. Action Items a. Approval of Development Committee Charter/Appointment of Development Committee Members Under New Charter Chief Real Estate Officer Kristin Fritz reported on the new Development Committee Charter. She noted that the Charter has been reviewed by the Committee and is ready for approval by the full Board. The Charter includes Committee purpose, meeting and reporting information, qualifications for membership on the Committee, the appointment process, and the responsibilities of the Committee and its members. Commissioner Wilkins moved to approve the Development Committee Charter and to appoint Committee members as follows: Cathy Mathis-Chair, Hep Wilkins-Vice Chair, Jake Arnold, Anne Nelsen, Jennifer Wagner, and Joseph Penta as a new member. Commissioner Wagner seconded, and the motion was passed unanimously. b. Approval of Audit & Finance Committee Charter/Appointment of Audit & Finance Committee Members Under New Charter Chief Financial Officer Tonya Frammolino reported that the Audit & Finance Committee Charter has been reviewed in depth with the Committee and approval by the full Board is now being requested. Commissioner Jennifer Wagner moved to approve the Finance Committee Charter and to appoint Committee members as follows: Jennifer Wagner-Chair, David Bye- Vice Chair, Ann Green, Lizette Mill and Karis Schneider. Commissioner Lizette Mill seconded, and the motion was passed unanimously. There was a question about internal controls and whether there should be someone with an IT background on the Committee. Ms. Brewen noted that Housing Catalyst’s auditors are experts and suggested that any questions on this can be directed to Alexis Odden when she presents the audit to the Board. Commissioner Mill talked about her vast experience with IT, and Ms. Brewen concurred that Commissioner Mill brings that expertise to the Committee. c. Approval of Housing Choice Voucher Administrative Plan Update Chief Operating Officer Michele Christensen explained recommended updates to the Housing Choice Voucher Administrative Plan which are a result of the Wellington Housing Authority’s desire to have a Wellington local preference. Director of Housing Assistance Programs Traci McGraw explained how project-based waitlists work and that the Wellington Housing Authority had requested a project- based waitlist local preference for people who live and work in Wellington. She recommended the use of a randomized lottery system to place names on the waitlist. Ms. Christensen noted that HUD allows for the use of local preference, however they also caution Housing Authorities to make sure there is no disparate impact. Ms. Christen and Ms. Brewen noted that they met with several people from HUD to discuss this change, after which HUD gave guidance about how to proceed, including a recommendation for annual review comparing the waitlist pool to the local demographics. Commissioner Mill moved to approve the changes to the Housing Choice Voucher Administrative Plan as laid out in the Board Action Memo. Commissioner Wilkins seconded, and the motion was passed unanimously. VII. Staff Updates a. Development Report 1. Development 5-Year Project Plans / Development Milestones 2022-2023 Ms. Fritz provided an update on the milestones since the last meeting. She pointed out the Special Limited Partnerships (SLPs) and provided an update on activity. She also provided a summary and update on developer fees coming to Housing Catalyst from the Swallow Rehabilitation project, explaining that there will be a shortfall of developer fees as a result of a downward adjustment due to CARE not meeting certain partnership milestones. Any shortfall of these fees will be owed to Housing Catalyst by CARE Housing. There have been many discussions with CARE Housing and they are aware of this potential risk. Ms. Fritz noted that this issue will be addressed in detail at a future Development Committee meeting. Ms. Fritz provided updates on current construction projects, including Oak 140 and Swallow. b. Finance Report 1. Approval of 2021 Q4 Financial Report Ms. Frammolino provided a financial summary of Quarter 4 of 2021. The full report was previously presented to the Audit & Finance Committee. Ms. Frammolino provided some key metrics from 2021: Voucher utilization at the end of the year was 93%, however the regular voucher utilization was higher with the average being pulled down by Special Purpose Vouchers. At year end Housing Catalyst managed a total of 1,093 units. Combined occupancy at the end of the year was at 94.7%, and while this is considered to be a healthy occupancy rate, was slightly below our target of 97%. Budgeted vacancy loss was on-target. Ms. Brewen clarified that there are delays from 2021 as a result of natural delays in lease-ups with the project-based vouchers assigned to the properties. There were 85.5 FTEs at the end of the year, which is in line with our budgeted FTEs for 2021. Property management staff turnover early in the year impeded the ability to significantly move forward with some initiatives. Housing Catalyst received just under $1.7 million in special purpose vouchers during 2021, with additional expected in 2022. Developments in which Housing Catalyst is a Special Limited Partner, Mercy Housing’s Northfield development and Oak 140 both closed in 2021. Ms. Frammolino reviewed Housing Catalyst's balance sheet, cash position, year-to- date profit & loss, and voucher utilization. She provided a summary of the LIHTC portfolio and the Debt Service Coverage Ratio (DSCR) on these properties. Three properties came in under target - Redtail, Elizabeth and Plum, all of which have been reviewed and approved with investors and lenders. Director of Asset Management and Property Operations Justin Corey provided an update on Section 18 disposition; staff is working hard to provide a positive experience for residents who are being relocated. Commissioner Wilkins moved to approve the 2021 Quarter 4 financials, Commissioner Bye seconded, and the motion was passed unanimously. VIII. Discussion Items a. Sabbatical Planning Ms. Brewen reported that the process of preparing for her sabbatical has been a positive experience. The first day of her sabbatical is June 1. Ms. Brewen noted that there was discussion at the Board prep meeting about communication protocols while she is on sabbatical. If an event occurs and a response is needed by a Board member, Ms. Christensen will coordinate as appropriate with Commissioners Mathis and Wagner. IX. Legislative Issues/Updates a. Colorado Legislative Update Ms. Brewen noted that several bills passed recently; she continues to watch to see how the bills will be enacted. Ms. Christensen noted that most of the funds for homeless programs are in the economic recovery bill and behavioral health bills. b. National Legislative Update There was no National Legislative update. c. Fort Collins City Council Legislative and Business Update Commissioner and Mayor Pro Tem Emily Francis reported that the Land Use Code will be discussed at City Council on June 14. This update is expected to be a long, in- depth discussion. She noted that a water advocacy determination process will begin in July. This is expected to have an effect on housing. X. Legal Issues Attorney Jim Martell noted that there are no legal issues. XI. Other Business/Upcoming Events a. Development Committee - June 6, 2022 b. Finance and Audit Committee - June 20, 2022 c. Housing Catalyst Board of Commissioners - June 16, 2022 XII. Good News a. CHFA Direct Effect Grant Ms. Christensen reported that CHFA offers a direct effect award that is presented to housing authorities and non-profits. Housing Catalyst was awarded $5,000 to be used for children at several properties. Housing Catalyst has also applied for a grant from the City of Fort Collins for “learning loss mitigation”. XIII. WORK SESSION: Strategic Plan Goal 1 - Preserve existing affordable housing As a follow up on last month's goal about being an employer of choice, Ms. Brewen noted that there will be some revisions to the goal when presented with the full plan in the fall. The title of the goal will change to reflect that Housing Catalyst is building on what is already being done. Following last month's discussion, there was also a realization that information was left off dealing with compensation and benefits. Revisions will all be reflected in the final goal presented in the fall with the full proposed Strategic Plan. Introduction to Goal 1: Ms. Brewen reviewed the overall strategic plan review process. For this goal pertaining to Housing Catalyst’s existing portfolio operations, Ms. Brewen and Mr. Corey are goal stewards. Mr. Corey discussed and explained each proposed strategy within the goal. He stressed that the idea is to maximize and expand on what is already being done, and that the goal is to exceed industry standards in all areas. Mr. Corey shared some quotes from staff supporting and praising this goal. Also, Assistant Director of Asset Management and Property Management Jessica Born discussed her background in hospitality and what she wanted to bring to the affordable housing industry when hired. She implemented the iCare model, designed by Disney, with Housing Catalyst property management staff. It was noted that this has made a big impact on customer service with our residents. Ms. Brewen noted that Justin Corey serves on NAHRO's Diversity Equity and Inclusion task force and has been able to integrate information from those discussions into this goal. Mr. Corey responded to a question from the Board by describing the process to ensure access to Wi-Fi by our residents, by working with the City of Fort Collins and Comcast to accomplish this. This goal will be included in the final full strategic plan presented to the Board for approval in October. XIV. Adjournment Ms. Brewen shared that Housing Catalyst won two awards at the recent Colorado and Mountain Plains NAHRO conference: Partnership and Project awards, both for Mason Place. Housing Catalyst has also been nominated for Housing Colorado’s Eagle Awards. Several Commissioners and staff members will be attending the ceremony in Denver this evening. Chair Mathis adjourned the meeting at 9:28 am.