Housing & Redevelopment Authority - June 13, 2017 Minutes

The regular meeting of the Board of Commissioners for the Housing and Redevelopment Authority of the City of Fargo, North Dakota was held May 9th, 2017 at 1 :30 PM in the Main Conference Room, 325 Broadway, and Fargo, North Dakota.

FHRA Staff Present
Lynn Fundingsland, Amy Rissmann, Scott Noeske, Jill Elliott,Steve Eickhoff, Reed Sabbe

FHRA Board Members Present
Karen Moore, Ken Krajsa, Thomas Jefferson (via phone), Tonna Horsley

Consent Agenda
Motion to approve the consent agenda.

Resolution #2017-06-01
BE IT RESOLVED, the FHRA June Consent Agenda is approved. Krajsa/Horsley

Addendums to the meeting agenda
There were no addendums to the agenda.

Reports

Financials
Mr. Noeske presented the financial reports. He reviewed the income statement actual to budget and discussed the differences. Mr. Noeske also reviewed the balance sheet actual to last month and discussed the changes in cash position for April 2017.

Travel costs for the year are running higher than anticipated. This is due to there being some good opportunities for employee training in maintenance, administrative and property
development.

Capital Projects
Additional capital remodels are underway. For Capital Fund, work on RAD continues. HUD has approved a one year extension of use of the 2015 Capital funds. The final bid documents and Scope of Work is being completed by EACP architects for the New Horizons project. There is no ACC amendment for 2017 Capital Fund from HUD yet.

Deputy Director
Ms. Elliott summarized the status of various program audits going on with FHRA. The auditor implied there would be no findings other than we do not have a CPA on staff to generate financial statements.

Old Business

Progress/issues with New Horizons RAD
FHRA should have a bid packet for a construction project by July and begin construction in August or September. A relocation consultant was considered to assist but the budget will not allow for the higher than expected fees. Mr. Fundingsland talked to CLS to possibly assist tenants with relocation counseling during the remodel and we will look to doing the relocations internally.

Insurance claim dismissed
A claim was submitted to our liability insurance as a tenant's dog had bitten another dog. The vet bill was submitted to our insurance and the claim was dismissed.

PHAS score appeal
FHRA received a sub-standard rating due to our vacancy rate. This year the scoring was done differently and just the scattered sites were included in the vacancy rate numbers. FHRA submitted an appeal to adjust the scores. Since our historically higher scoring properties were taken out of the equation and not considered to still be public housing, we disagree.

Transfer of LIHTC properties
FHRA is currently working with BSI for this potential transfer. BSI has requested that all future communication for this topic be done through their attorney. FHRA has hired an attorney who specializes in tax credit properties to draft a counter-proposal to BSI. This draft is to be done within the next couple of weeks. Mr. Fundingsland asked that the board give FHRA authorization to negotiate a deal with BSI then bring a final version to the board for review.

Motion to allow FHRA to send a draft of counter deal drafted by attorney to BSI.

Resolution #2017-06-02
BE IT RESOLVED, the motion to allow FHRA staff to send a draft counter proposal from FHRA's attorney to BSI is approved. Krajsa/Jefferson

President Moore asked that Mr. Fundingsland communicate to the board the on-going status of this counter proposal.

New Business

Independent audit on-site work completed
The final findings have not been communicated to FHRA. Auditors have had additional questions for FHRA staff. One of the suggestions the auditors had was to establish a peer
review of tenant files.

Regional Conference recap
Ten FHRA employees attended the conference to learn updates on housing topics. FHRA received an award for the FHRA Homeless Medical Respite Program. There was much information on advocacy, marketing, homeless programs, and tax credit development and compliance. Several of the FHRA employees assisted with the breakout sessions during the conference.

Continuum of Care items
FHRA has some audits coming up. The no alcohol rule in our SRO facility is proving to be a barrier to tenants. Jill asked for board to consider changing this and allowing alcohol as she feels that the Continuum of Care grant auditor will show the rules as the stand as a barrier. The auditor and State will be here in July. The board asked for more information on this topic before changing any rules.

Ms. Elliott presented a draft Program Policy and Procedure manual for Continuum of Care to the board for consideration. The board will review it and discuss it at July's board meeting. A copy of the manual will be included in the July board packet.

Update on ED, 32-hour week
Mr. Fundingsland shared that his reduced work week of 32 hours is not working and that more hours have been required and put in every week since the trial period began. He requested to revert back to the original contract. President Moore will review this arrangement with the board and consider it with the entire board during the July review planned for Mr. Fundingsland, per his current employment contract.

There being no further business, the meeting adjourned. The next meeting is scheduled for July 11, at 1:30 PM.