2013-01-22 HRA Agenda PacketAGENDA
MOUND HOUSING & REDEVELOPMENT AUTHORITY
REGULAR MEETING
TUESDAY, JANUARY 22, 2013 6:50 P.M.
MOUND CITY COUNCIL CHAMBERS
Page
1. Open meeting
2. Action approving agenda, with any amendments
3. Action approving January 8, 2013 regular meeting minutes
4. Action approving claims 2-5
5. Catherine Pausche, Finance Director/Clerk/Treasurer, presenting the 6-15
proposed Recovery Plan to be submitted to HUD
6. Adjourn
MOUND HOUSING AND REDEVELOPMENT AUTHORITT
JANUARY 8, 2013
The Mound Housing and Redevelopment Authority in and for the City of Mound, Minnesota, met
in regular session on Tuesday, January 8, 2013, at 6:55 p.m. in the council chambers of city
hall.
Members present: Chair Mark Hanus; Commissioners Kelli Gillispie, Ray Salazar, Heidi Gesch
Members absent: Vacant Commissioner Seat (David Osmek)
Others present: Community Development Director Sarah Smith, Finance
Director/Clerk/Treasurer Catherine Pausche, Ken Perbix, Debbie Salazar, Christel Salazar
1. Open meeting
Chair Mark Hanus called the meeting to order at 6:55 p.m.
2. Approve agenda
MOTION by Salazar, seconded by Gesch to approve the agenda. All voted in favor. Motion
carried.
3 Approve minutes
MOTION by Salazar, seconded by Gesch to approve the minutes of the December 11, 2012
regular meeting. All voted in favor. Motion carried.
4. Approveclaims
MOTION by Salazar, seconded by Gesch to approve the claims in the amount of $24,230.72.
All voted in favor. Motion carried.
5. Appointment of Acting Chairperson
MOTON by Hanus, seconded by Salazar to adopt the following resolution. All voted in favor.
Motion carried.
RESOLUTION NO. 13-OIH: RESOLUTION APPOINTING HEIDI GESCH AS ACTING
'CHAIRPERSON FOR THE HRA FOR 2013
6. Statutory Tort Limits
MOTION by Salazar, seconded by Gesch to adopt the following resolution. All voted in favor.
Motion carried.
RESOLUTION NO. 13-02H: RESOLUTION MAKING A SELECTION NOT TO WAIVE THE
STATUTORY TORT LIMITS FOR LIABILITY INSURANCE PURPOSES
7. Agjoum
MOTION by Salazar, seconded by Gesch to adjourn at 6:57 p.m. All voted in favor. Motion
carried.,",
Attest: Catherine Pausche, Clerk
0
Chair Mark Hanus
aCON lK I'll I
•
YEAR BATCH NAME
IN
S:\FINANCE DEPT\AP\HRA MTG CLAIMS LISTING.xlsx
$3y272.841
MY OF MOUND
Batch Name 2012HRA-AP2
Payments
Current Period: Closing 2012
User Dollar Amt $727.34
Computer Dollar Amt $727.34
$0.00 In Balance
01/17/13 8:48 AM
Page 1
Refer
2 CSCE S SIGNS
Operating Supplies
IKM HALLWAY DIRECTIONAL SIGNS
$232.99
AP Payment
E 680-49800-210
Invoice 5722
1/3/2013
1/16/13 Due 12/31/2012
20
Accounts Payable 20200 Total
$232.99
Transaction Date
_
Refer hmro
_
3 MULTIHOUSING CREDIT CONTRO
E 680-49800-475 Tenant Related Services
IKM TENANT
TIICEMBER
$220.00
AP Payment
201VE BACKGROUND
CHECKS
invoice 12120344 12/31/2012
1/1612013 Due 12/31/2012
Total
Accounts Payable 20200µ
$220.00
Transaction Date
Refer �..-4.
SUN PATRIOT NEWSPAPER -CITY
UNIT VACANCY ADVERTISING IKM 12-29-12
$261.96
AP Payment
E 680-49800-340 Advertising
Invoice 1139444
12/29/2012
1/16/2013 Due 1 2/3112 01 2
Accounts Payable 20200 Total
$261.96
Transaction Date
Refer
1 TRUE VALUE MOUND (IKM) _
E 680-49800-220 Repair/Maint Supply
NYLONADDUSTABLE LOOR
$12.39
AP Payment
SCREWS, NUTSFBOLTSGUIDE-IKM
invoice 100862
12/21/2012
1/15/2013 Due 12/31/2012
Accounts Payable 20200 Total
$12.39
Transaction Date
Fund Summary
680 HRA PUBLIC HOUSING
Pre -Written Check
Checks to be Generated by the Computer
Total
20200 Accounts Payable
$727.34
$727.34
$0.00
$727.34
$727.34
In
MOUND, MN 01/16/13 1:44 PM
Page 1
Payments
i \
ITT F R40UND
Current Period: January 2013
r,'„ , t
Batch Name 0122COMBOND User Dollar Amt $1,595.89
Payments Computer Dollar Amt $1,595.89
$0.00 in Balance
Refer
1 COMMON BOND COMMUNITIES _
Cash Payment
E 680-49800-101 F T Empl Regular
PAYROLL REIMS 1-11-13 OFFICE SALARY
$980.30
Invoice 083321
1/11/2013
Cash Payment
E 680-49800-111 Other IKM Maint
PAYROLL REIMB 01-11-13 MAINTENANCE
$297.00
SALARY
Invoice 083322
1/11/2013
Cash Payment
E 680-49800-122 FICA
PAYROLL REIMS 1-11-13 OFFICE ER TAX
$102.81
Invoice 083323
1/11/2013
Cash Payment
E 680-49800-130 Employer Paid Ins (GEN
PAYROLL REIMB 1 -11-13 MAINTENANCE ER
$31.54
TAX &INSURANCE
Invoice 083324
1/11/2013
Cash Payment
E 680-49800-131 Employer Paid Health
PAYROLL REIMB 1-11-13 OFFICE ER
$105.21
INSURANCE
Invoice 083325
1/11/2013
Cash Payment
E 680-49800-121 PERA
PAYROLL REIMB 1-11-13 OFFICE ER 401K
$34.61
MATCH
Invoice 083327
1/11/2013
Cash Payment
E 680-49800-321 Telephone & Cells
OFFICE STAFF CELL ALLOWANCE 1/11/13
$25.23
Invoice 083326
1/11/2013
Cash Payment
E 680-49800-430 Miscellaneous
AMERPRIDE MT/CT UNIFORMS 12/12 #6590
$19.19
Invoice 083248
1/11/2013
Transaction Date
1/16/2013
Wells Fargo HRA 10120 Total
$1,595.89
Fund Summary
10120 Wells Fargo NRA
680 HRA PUBLIC HOUSING
$1,595.89
$1,595.89
Pre -Written Check $0.00
Checks to be Generated by the Computer $1,595.89
Total $1,595.89
in
CITY OF MOUND
Batch Name 012213HRA
Payments
Current Period: January 2013
User Dollar Amt $949.61
Computer Dollar Amt $949.61
$0.00 In Balance
01/17/13 9:11 AN
Page
Refer 1ALPHA RUG AND CARPET CLEANI-CARPET CLEANING |KMUNIT #300 $69.47
Cash Payment E 680-49800-402 Building Maintenanc EFFICIENCY 1-10-13
invoice 2824
1M012013
�� UaFo�oHRA 10120 Total
o694/
Transaction Date
1/161201318
Refer
^ ''`E~''—F PAINTING -
PAINT WALLS & CEILINGS UNIT #3OV
$273.00
Cash Payment
^`— --- 02 Building Maintenance
STUDIO 1/3/13
invoice 244
1111C2013
EOVV�88nO402BuiNingM��enonoo
;����&�\UN���#�1B�
$376.00
Cash
1/4/13
invoice 244
1/11/2013
Fargo HRA 1(�2O Total
$84960
Trannm��n�a�
1116/2013VvvU
Rn�'
^ CILITIES MAINTEN-
*5418
Cash Payment
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yyH��1^AL��|NU��|N|8UND.STEELBY'
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WARDROBE DOOR GUIDE HARDWARE |0N
#1O9
invoice 9119751079 1/4/2013
10120 Tn�|
�
$541O
Transaction Date
1/16/2013YVa�F��oHRA
&498nO4r5T�nm�Re|�e�8erM�s
JANUARY 2u`oCALL ^E.".="=.~E..,.,
$43.00
~~~^''~'''--
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|KM
Invoice 0290378
111/2018
��UsFa�oH�A 1O12O Total
$43.00
Tra aacUonD�e
1116/2013
Refer 19 L"''L^'`COMPANIES, -
'�—�' in-
|K0COPIER OVERAGE CHARGES BALCK&
*52�47
Cash Payment
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WHITE 1U-20-12THRU1-18'18
Invoice 1509033
1/8/2013
VVeU Fargo HRA 10120 Total
$52.47
Transaction Date
1�7�O 3
Refer
5 WILMAR
Repair/Maint Supply
CHROME DRIP PANS-IKM
$80-91
Cash Payment
E 680-49800-220
Invoice 279892137 1/3/2013
Wells Fargo HRA 10 1 2 0 Total
$80.91
Transaction Date
1/16/2013
r
Fund SummarY
O8VHRA PUBLIC HOUSING
Pre -Written Check
Checks toboGenerated by the Computer
Total
HUD requested a proposed recover plan be submitted within 30 days of their January 2, 2013
letter. An earlier letter designating the Mound HRA as troubled offered the following
suggestions on how to improve the occupancy rate. The Mound HRA responses are included
below
The January 2, 2013 letter made suggestions in the following four areas:
Financial —Accounts receivable and payable as of 12/31/11 had a negative impact and those
issues have been resolved. HUD suggests that we consider obtaining approval to sell non-
performing Public Housing property or contracting for property management.
The Mound HRA will evaluate its option to sell the public housing when HUD approves the sale
of Columbia Heights public housing to AEON. The process is not fully developed at this point.
Mound has contracted with Common Bond Communities as of May of 2011 to manage its public
housing and is working through transition issues. The property breaks even and cost reduction
strategies have been a focal point since 2009.
01
HUD Recommendation
Management Response
Status
1
Evaluate wait list, selection and certification
ACOP updated in May 2012. Need to
process, update ACOP
increase numbers on wait list by
advertising locally, outreach. CB to
provide wait list monthly.
2
Assess marketing efforts including free
Refer to Common Bond Marketing Plan,
websites
verify follow-through
3
Intake policies efficient?
Believed to be adequate
4
Limit transfers if vacant units more
Transfers are optional but a $400 fee is
marketable... problem with moves to other
charged which discourages demand.
housing sites
IKM units are smaller than other
options in the area.
5
Minimize turn -around time on vacant units,
CB to provide mgmt report of punch list
ensure PIC is updated on a timely basis.
and timeline to get it done. Mgmt
monitors PIC.
6
Assess marketability of units and location
Great location but smaller units that
have not been completely
updated.... need new woodwork and
cabinetry. Studios are unpopular.
7
Any units taken off line currently?
No
8
Tenant Accounts Receivable
Issues at year-end have been resolved.
9 1
Accounts Payable I
Issues at year-end have been resolved.
The January 2, 2013 letter made suggestions in the following four areas:
Financial —Accounts receivable and payable as of 12/31/11 had a negative impact and those
issues have been resolved. HUD suggests that we consider obtaining approval to sell non-
performing Public Housing property or contracting for property management.
The Mound HRA will evaluate its option to sell the public housing when HUD approves the sale
of Columbia Heights public housing to AEON. The process is not fully developed at this point.
Mound has contracted with Common Bond Communities as of May of 2011 to manage its public
housing and is working through transition issues. The property breaks even and cost reduction
strategies have been a focal point since 2009.
01
Management — Occupancy rates continue to be the major challenge and therefore the focal
point of our proposed recovery plan. The emphasis needs to be on reducing turnover and
improving the marketability of our units. More will be done to grow the wait list by increasing
marketing and outreach efforts. There has been an increase in senior housing developments,
all of which have an affordable component, so we have lost many of our senior tenants who
were able to upgrade to new, larger units with no change in rent.
At the December 11, 2012, HRA Board Meeting, representatives of Common Bond presented
their action plan to improve occupancy rates. The marketing/outreach plan includes:
• Advertising in local newspapers
® Keeping Common Bond Website updated with availability
® Use of other websites (non -profits) that promote affordable housing
® Make contact with churches and social service agencies to let them know of availability
® Contracting with Level 1 to provide 24/7 phone service coverage that will schedule
showings on behalf of management, increasing customer service and reducing wait
times
® Add a sandwich sign to indicate when management is in office, to complement the "Blow
Leasing" banner that hangs prominently on the building
• Increase reporting to HRA Board on traffic, applications approved and denied.
The plan to reduce turnover includes:
0 Live-in caretaker position filled as of 2-1-13. Position critical to keeping the peace and
serves as a conduit between tenants and management.
0 Offer social worker services once rental revenues increase and can fund it
Respond quickly to complaints and enforce lease violation rules to weed out problem
tenants
® Hold periodic tenant meetings to give updates on capital improvements and
management issues and allow for questions from tenants and face time with staff from
the housing authority, in addition to Common Bond management.
The first report on occupancy is included with this recovery plan. Management has put on hold
any discussion of combining studio units into 2 bedrooms per HUD's request. The Finance
Director will submit the 2012 data for the PHAS score by the end of February and request HUD
to update the score. We know the occupancy score for 2012 will continue to be poor, but the
Financial score should increase moving us from "troubled" back to "standard" performer. Every
effort will be made to raise and maintain the occupancy rate to a target of 94% or better at all
times.
-7-
2013 -Jan -16 08:34 AM CITY OF MOUND 199524725699
* occupancy, see attached vacancy report
wait list as of 12/81/12
o Studio
® 0 on wait list
® offering immediate openings
o one bedrooms
Through list -23 total on list, ail offered units available and declined
offering immediate openings
o Two Bedroom
a 9 Total Households
Applicant History as of 1.2/31/12
o Showings In month of December
12/7/12 one bedroom unit to applicant who cannot move in until 4/1/13;
applicant added to wait list
12/17/12 one bedroom unit to applicant who began move in verification
process
12/17/12 one bedroom unit to applicant who began move in verification
process
12/17/12 studio unit to applicant who was later denied for criminal background
12/19/22 one bedroom unit to applicant who began move in verification
process
12/19/12 studio unit to applicant who declined to be added to the waiting list,
Indicated Mound was too far from the Cities for him
® 12/19/1.2 studio unit to applicant who was later denied for UDs on record
id 12/21/12 studio unit to applicant who began move In verification process
a 12/21/12 studio unit to applicant who was later denied for criminal background
x 12/21/12 studio unit to applicant who declined unit indicating it was too small
12/27/12 studio unit to applicant who began move in verification process
a 12/28/12 studio unit to applicant who began move In verification process
In
2/6
2013 -Jan -16 08:34 AM CITY OF MOUND 199524725699 3/6
rr nt Va e SJUXALWI-011
o Studios units 6 applicants all Indicating studios or one bedrooms
1
ti
I bedrooms 26 applicants "7 �L c�t 1111, 64
2 bedroom 13 applicants
at Pres=
® occupancy: please see attached vacancy report
lection s
of 2
* occupancy: please see attached vacancy report
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2013 -Jan -16 08'34 AM CITY OF MOUND 199524725699
Indian Kna11
PIROP$RTY
VWITa : Zll;b
Decambcr 31114 2012
(MONTHIDAYIYEAR)
VACANCY CODES
I -DEATH
36-NURSINO ROME
3 -OTHER SUBSIDIZED ROUSING
4 -NON -SUBSIDIZED HOUSING
8 -UNIT TRANSFER
6 -RELOCATION
yw$VICrION
s -OTHER
P -PURCHASED HOME
0
DUE EVERT' MONDAY
Please Email To Regional Manager
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VACANCY CODES
I -DEATH
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3 -OTHER SUBSIDIZED ROUSING
4 -NON -SUBSIDIZED HOUSING
8 -UNIT TRANSFER
6 -RELOCATION
yw$VICrION
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Board of Commissioners
c/o The Honorable Mark Hanus, Board Chair
HRA of the City of Mound
5341 Maywood Rd.
Mound, MN 55364
Dear Commissioners:
U.S. Department of Housing and Urban Development
Minneapolis Field Office
920 Second Avenue South
Minneapolis, Minnesota 55402
http://www.hud.gov/
JAN - 2 9013
On December 12, 2012, the Mound HRA was designated Troubled by HUD based on a
failing Public Housing Assessment System Audited /Non A-133 financial score of 9 (out of 25),
a management score of 1 (out of 25), and an overall score of 57 (out of 100) for the fiscal year
ending 12/31/11, as shown in the enclosed PHAS Score Report.
Based on your troubled status:
0 All existing open Capital Fund grants open will be placed on "auto review" in HUD's
Line of Credit Control Systems (LOCCS). This means that you will not be able to draw
down funds unless HUD has reviewed your plan and backup documentation. Requests
without sufficient justification will be rejected.
0 All future Capital Funds will also be subject to auto review until further notice from
HUD.
0 All plans for modernization/unit conversions should be suspended until HUD completes a
more comprehensive assessment of your financial status. Our next letter will include a
records request to complete the assessment.
As a reminder, HUD's communic,
Executive Director and/or Board Chair, as designated in the Public Housing Information Center
(PIC) database. All letters related to your Troubled status will be sent to the Board Chair, with
courtesy copies to the Appointing Official, Board Members, and Executive Director. If the HRA
Board Chair wants to a oint another Commissioner to be the liaison to HUD for this matter,
please provide official notification of this change. If the change will be permanent, update the
HRA's bylaws and PIC.
The Board of Commissioners of the HRA of the City of Mound should take immediate
action to identify the sources(s) of the performance deficiencies and develop and implement a
plan to recover its PHAS score and ensure long-term sustainability at an acceptable level of
performance.
The following list of actions is offered as common suggestions to the Board to use in self -
SH
diagnosing the source(s) of its deficiencies and identifying solutions to recover its performance
for long-term sustainability.
Financial
Typically, when a public housing agency becomes financially substandard, it must either:
(1) increase revenue; (2) decrease expenses; or (3) implement a combination of both.
Revenue
® Evaluate tenant screening, lease enforcement, and rent collection policies and actions to
increase tenant rental revenue.
• Consider establishing or raising minimum rents.
Consider obtaining approval from HUD to sell non-performing Public Housing property
or non-residential property covered under a HUD Declaration of Trust.
• Consider selling unencumbered property.
® Consider obtaining supplemental funding from State or local government agencies to
cover budget deficits and cost overruns of its Public Housing or non-federal programs.
® Consider reducing the scope of non-federal programs to operate within their financial
means.
Determine whether all portability revenue is being collected from the issuing public
housing agencies in the Housing Choice Voucher program.
Expenses
® Consider reducing salaries and employee benefits to levels that stay within budget
parameters.
• Consider reducing management and line staffing levels.
• Evaluate utility consumption, energy policies, and consider implementation of energy
conservation measures and agreements to reduce energy costs.
• Evaluate all existing contracts for cost and necessity.
• Evaluate and re -price insurance costs.
• Evaluate the need and usage of fleet vehicles.
® Consider contracting property management or maintenance of Public Housing to another
entity or public housing agency.
Management
Generally, when a public housing agency becomes management substandard, it has failed
to maintain an acceptable occupancy level in its developments.
• Evaluate waiting list, tenant selection, and initial certification processes to ensure
coordination with property managers and timely preparation for move -ins.
• Assess existing new tenant intake policies and practices and consider implementing those
that would contribute to quicker lease up, such as starting the certification process earlier
or limiting the number of unit -offer turn -downs for new tenants.
® Assess existing continued occupancy policies and practices and consider implementing
those that would reduce the frequency of move -outs, such as educating tenants on lease
enforcement and how to be good renters or limiting transfers for existing tenants.
® Evaluate the turn -around time of vacant units for occupancy, including the time it takes
maintenance to make-ready units and the time it takes property managers to lease up
units.
• Assess the feasibility and desirability of under -occupied developments, e.g. physical
condition and configuration, rehabilitation costs and lifespan, neighborhood factors such
as crime and proximity to employment, transportation, and services, etc., and consider
repositioning options if appropriate.
® Ensure that units taken off line for modernization, special use, or other allowed reasons
have been approved by HUD, do not exceed their permissible time limitation (e.g. three
years maximum for modernization units), and are correctly classified in HUD systems.
• Consider contracting property management of Public Housing to another entity or public
housing agency.
Please provide our office with a�� ®posse recovery playa within 34 days of the rece
of this letter. Your plan will be reviewed by a Recovery Team of subject matter experts to
determine further assistance to be provided by HUD and actions to be taken.
Please also be advised that HUD is initiating actions to develop and execute a binding
Recovery Agreement and Action Plan with the HRA of the City of Mound as required by federal
statute, to document and ensure that recovery efforts have been put in place. If you have any
questions or need assistance in developing your plan, please contact me at
Lucia.M.Clausen@hud.gov, or 612-370-3000, ext. 2221.
.ncerely,
t
ucia M. Clausen, Director
office of Public Housing
Enclosure
cc:
Ms. Heidi Gesch, Board Member
HRA of Mound
2459 Chateau Ln
Mound, MN 55364
Ms. Kelli Gillispie, Board Member
HRA of Mound
5361 Baywood Shores Drive
Mound, MN 55364
Mr. Ray Salazar, Commissioner
HRA of Mound
4558 Island View Dr.
Mound, MN 55364
Mr.Vavid Osviek, Commissioner
HRA'6f. the ity of Mound
Mound ' Hall
5341 od Rd.
Mo , MN 364
Ms. Kandis Hanson, Executive Director
HRA of the City of Mound
Mound City Hall
5341 Maywood Rd.
Mound, MN 55364
Sn
{(¢, U. S. Department of Housing and. Urban Development
*('f OFFICE OF PUBLIC AND INDIAN HOUSING
REAL ESTATE ASSESSMENT CENTER
Report Date: 9/24/2012
!PHA Code: MN074
PHA Name: HRA OF THE CITY OF MOUND, MINNESOTA
,Fiscal Year End. 12/31/2011
PHAS Indicators
Score
Maximum
I
-1.01
Score
Physical
37
40
Financial
9
25
Management
1
25
Capital Fund
10
10
rae Penalty Points
0
AS Total Score
57
100
PHAS Designation
Troubled..
Initial PHAS score issued date: 4/30/2012
Financial Score Details
Maximum
Score
A S Score before deductions
10.06
25.00
2. Audit Penalities
-1.01
(Total Financial Score Unrounded (FASS Score - Audit Penalties)
9.05
25.00
I Capital Fund Score Details
Score
Maximum
Score
Timeliness of Fund Obligation:
1. Timeliness of Fund Obligation %
90
2. Timeliness of Fund Obligation Points
5
5
Occupancy Rate:
I
3. Occupancy Rate
92
4. Occupancy Rate Points
5
5
Total Capital Fund Score (Fund Obligation + Occupancy Rate):
10
10
Notes:
1. The scores in this Report are the official PHAS scores of record for your PHA. PHAS scores in other
systems are not to be relied upon and are not being used by the Department.
2. Due to rounding, the sum of the PHAS indicator scores may not equal the overall PHAS score.
3. "0" FASS Score indicates a late presumptive failure. See §§ 902.60 and 902.92 of the Interim PHAS
rule.
4. "0" Total Capital Fund Score is due to score of "0" for Timeliness of Fund Obligation. See the Capital
Fund Scoring Notice.
5. PHAS Interim Rule website - http://www.hud.gov/offices/reac/products/prodphasintrule.cfm
M