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Home My WebLink About04/23/2003HOUSING AUTHORITY MEETING Apri123, 2003 CITY HALL, LOBBY CONFERENCE ROOM 7:00 P.M. A. Call Meeting to Order B. Roll Call C. Approval of the Minutes: January 22 & March 12, 2003 D. Officers Reports E. Public Forum F. Unfinished Business G. New Business 1. Proposal to hire JR Matthews, PC to provide accounting services 2. Discussion of Rehabilitation Alternatives for 6410 W. 44`h Place H. Other 1. Adjournment - to May 28, 2003 CITY OF WHEAT RIDGE HOUSING AUTHORITY Minutes of Meeting January 22, 2003 A. CALL THE MEETING TO ORDER The meeting was called to order by Chair DiTullio at 7:00 p.m. in the Lobby Conference Room of the Municipal Building, 7500 West 29th Avenue, Wheat Ridge, Colorado. B. ROLL CALL Authority Members Present: Cheryl Brungazdt Mary Jo Cavarra (arrived at 7:55 p.m.) Kent Davis Jerry DiTullio Kathryn Fulton Others Present: Alan White, Planning Director Larry Nelson, Comerstone Realty Betty Maybin, Comerstone Realty Ann Lazzeri, Recording Secretary C. APPROVAL OF MINUTES It was moved by Cheryl Brungardt and seconded by Kathryn Fulton to approve the minutes of December 11, 2002. The motion passed 3-0 with Kenf Davis abstaining. D. OFFICERS REPORTS There were no officer reports. E. PUBLIC FORUM There were none present to address the Authority. F. There was no unfinished business to come before the Authority. G. NEW BUSINESS Ouail Sauare Proiect Summarv Alan White reviewed the sununary of acquisition and rehabilitation costs for the Quai] Square condominiums. The summazy was also contained in the Housing Authority packet. There was some concem ihat the proj ect came in at a loss. However, there were opinions that, for the first Housing Authority project, it was successfizl in providing affordable housing to people who might not otherwise be able to own their residence. Further, much knowledge was gained in the process which should prove valuable in Housing Authority Page 1 January 22, 2003 future projects. The Authority reviewed costs involved and sales figures for the project and discussed ideas that could be applied to a future housing project. Jerry DiTullio suggested that there should be a sepazate spreadsheet for the project that shows grants, city contributions, sales tax rebates and CDBG funds. There was a consensus that this information should be sepazate from the spreadsheet that shows acquisition and rehabilitation costs. Larry Nelson commented that the units sold well due to the rehab work which was done and the fact that the units were priced fairly. There aze two remaining contracts on Quail Square that are scheduled to close in February and there are four people on a waiting list for future projects. H. OTHER • It was moved by Cheryl Brungardt and seconded by Kathryn Fulton that Alan White be directed to submit an award application to NAHRO for the Quail Square project. The motion p$ssed 4-0. Another housing project is under consideration by the Authority. Several members have taken a tour of the property along with Henry Wehrdt who provided a preliminary estimate of rehab costs. Larry Nelson and Betty Maybin provided property comparisons, affordability and loan qualification information and other information regazding the property. The tenants aze not awaze of the possible sale of the building, therefore the matter requires a degree of confidentiality. It was moved by Kathryn Fulton and seconded by Cheryl Brungardt to authorize Cornerstone Realty to make an offer to the seller in the range of $700,000-750,000. The motion passed 4-0. (Mazy Jo Cavarra azrived at 7:55 p.m.) Alan White reminded the Authority that CDBG funds aze available which could be applied to the project which was discussed earlier in the meeting. Jerry DiTullio agreed to update Mary Jo after the meeting. She did express some concern about buying property at this time when rental property prices seem to be falling. Alan White advised the Authority that the rental unit on the Richards-Hart estate has been rented. . Kent Davis thanked the Authority for the card sent in expression of sympathy for the loss of his mother. • Housing Authority members will review information received at the meeting regazding the possible new project. It may be necessary to call a special meeting of the Authority to give authorization for purchase of the property. Housing Authority Page 2 January 22, 2003 I. ADJOURNMENT It was moved by Kent Davis and seconded by Kathryn Fulton to adjourn the meeting to February 26, 2003 unless it is necessary to hold a special meeting before that time. The motion passed 5-0 and the meeting was adjourned at 8:05 p.m. Jerry DiTullio, Chair Ann Lazzeri, Secretazy Housing Authority Page 3 January 22, 2003 CITY OF WHEAT RIDGE HOUSING AUTHORI'I'Y Minutes of Special Meeting March 12, 2003 A. CALL THE MEETING TO ORDER The meeting was called to order by Chair DiTullio at 5:00 p.m. in the Lobby Conference Room of the Municipal Building, 7500 West 29th Avenue, Wheat Ridge, Colorado. B. ROLL CALL Authority Members Present: Cheryl Brungazdt Mary Jo Cavarra Kent Davis Jeny DiTullio Kathryn Fulton Others Present: Alan White, Planning Director Larry Nelson, Cornerstone Realty Betty Maybin, Comerstone Realty Jim Bills, Vectra Bank Alan Feinstein, Jefferson County Housing Authority Ann Lazzeri, Recording Secretazy C. CONSIDERATION OF PROPERTY PURCHASE Larry Nelson submitted two marketing proposals for a property located at 6410 West 44'" Avenue. One proposal showed costs with carports; the other proposal showed costs with gazages. Proposed sales prices for the first alternative would be approximately $120,500 for eight units and $115,500 for two units. The second alternative (with gazages) would be approximately $123,300 for eight units and $118,200 for two units. These prices would include washers and dryers. It was his suggestion to go with the proposal which includes the gazages. These units could be sold for lower prices than the Quail Square project. The property could be paid for with cash using a loan to cover rehab costs. Following discussion of the proposals, it was moved by Kent Davis and seconded by Mary Jo Cavarra to authorize Comerstone Realty to offer a contract to purchase property at 6410 West 44th Avenue in the amount of $789,000. The motion passed 5-0. It was moved by Kathryn Fulton and seconded 6y Cheryl Brungardt to authorize the issuance of a$10,000 check for earnest money. The motion passed 5-0. D. ADJOURNMENT The meeting was adjourned at 5:35 p.m. Jerry DiTullio, Chair Mazch 12, 2003 Ann Lazzeri, Secretary rage i J. R. Matthews, p.c. certified public accountants 4465 Kipling, Suite 103 Wheat Ridge, CO 80033 303-424-7763 Fax 303-424-1301 Mazch 14, 2003 Wheat Ridge Housing Authority City of Wheat Ridge 7500 West 29'h Avenue Wheat Ridge, CO 80033 Attn: Alan White Re: Proposed Accounting Services Deaz Commissioners: Thank you for considering our firm for your accounting needs. Our fees are based on hourly rates that vary from $43 to $125 per hour depending on the expertise needed for a particular segment of the engagement. One Time Set Uv: We would do the following: Transfer your chart of accounts into Quickbooks, Transfer December 31, 2002, balances into the computer, Record 2003 uansactions to date, Set up vendors, and Prepare amortization schedules on installment loans. One Time Fee You would provide us: $ 500 Copy of December 31, 2002, trial balance. Copy of 2002 final Financial Statement. Wheat Ridge Housing Authority March 14, 2003 Page 2 We will also need to have access to your files that contain: Files on all lease contracts. Files on a(l loans payable. FIles on all loans receivable. Monthly Accountine: We would do the following: Write and record checks, Deposit and record receigts, Maintain accounting files, Reconoile bank account, Assist in coding checks, and Assist staffin preparing reports as requested. You would provide: Invoices approved for payment, Receipts stamped for deposit, and Various other information as requested. December 31. Year End: We would do the following: Prepaze accounting records and files for the auditors, Prepaze letter on accounting suggestions, Prepaze Fonn 1099's. Wheat Ridge Eiousing Authority Mazch 14, 2003 Page 2 We would not prepaze formal &nancial statements however we would assist the staffto provide reports as requested by the Authority. Our engagement would not be for the purpose of discovering misuse of funds; however, if we became aware of any, we would report them to you. Our work wi1T comply with the rigid and rather cumbersome accounting procedures required by law for governmental units. However, wewill not Forget that the primary purpose offinancial reports is to communicate. We will be prompt and accurate with our services. We will return telephone calls promptly. We aze very interested in being a part of your management team. Please contact us to discuss any portion ofthis prooosal. Thank you again. Sincerely, I&NA& Richazd Matthews Certified Public Accountant JRM/bms CORNERSTONE REALTY, INC. 9150 WEST JEWELL AVENUE SUIT'E #7 LAKEWOOD, COLORADO 80232 MEMO To: Wheat Ridge Housiug Authority From: Larry Nelsou & Betty Maybin Date: 4/15/2003 Subject: 6410 W. 44t° Pl. Construcrion Costs/Affordability Attached aze Preliminary Development Budgets and associated Affordability/Loan Qualifications for 4 alternatives in ternu of construction. A profit of approximately $50,000 is buih in for each ahernative. The following is a summary of the enctosed material: Alternative #1 - Alt proposed improvements i Price/2 Story Price/Ranch Mo. Payments/Z Story Mo. Payments/Ranch Income required to qualify (no debts)/2 Story Income required to qualify (no debts)/Ranch ncluding gazages 126500 121500 833 806 24991 24181 Alternative #2 - All proposed improvements including carports Price/2 Story 123250 Price/Ranch 118250 Mo. Payments/2 Story 815 Mo. PaymernslRanch 789 Income required to qualify (no debts}/2 Story 24465 Income required to qualify (no debts)/Raach 23656 Atternative 43 - All proposed improvements offstreet parking only Price/2 Story 120700 Price/Ranch 115700 Mo. Payments/2 Story 802 Fax (303) 987-1434 ^ A Division of Cornerstone Financia! & IR Phone (303) 987-8812 Z-~ Real Estate Corporation ~...oR Mo. Payments/RancH 775 Income required to qualify (no debts)/2 Story 24052 Income required to q[talify (no debts)/Ranch 23243 Alternative #4 - Limited improvemems offstreet parldng only Price/2 Story 108000 Price/Ranch 103000 Mo. Payments/Z Story 733 Mo. Payments/Ranch 706 Income required to qualify (no debts)/2 Story 21997 Income required to qualify (no debts)/Ranch 21188 Preliminary Development Budget 6410 W. 44th PI. Altemative #1 - AII improvements proposed (with garages) Costs Acquisition 789000 Constructiort Costs 317020 * Construction Interest 3000 Closing Costs 2000 Loan Fees 4000 Appraisal 2000 Phase t Environmentat 2000 Survey/Condo Map 3000 Legaf 2500 Project Approval 1500 Marketing 62750 Titfe 6000 Home Warranties 2250 Misc. 2500 Contingency 5000 Total Costs 1204520 Revenues 8 tlnits @ 2 Units @ Total Revenues Profit 128500 1012000 121500 243000 1255000 50480 Not Considered: Rental income and operating expenses durtng devetopmerrt HOA fees prior to tuming over associa6on to homeowners Taxes Buyout existing leases 'includes 10,000 for demising/fire walls 44th Ptace 7awnhomes Affordability/loan Qualirication (Altemative #1) 2 Storv UnR with. Caroort w/H20 Financina Cost 128500 tst Mtg. 121175 Closing CosFs 2000 2nd Mtg. 6325 Down Pmt 1000 Total 128500 Tota4 128500 Monthly Annual P&1 688 5.500°k Income Rqd. 0 debt 2083 24991 Taues 45 debt= 100 2333 27991 HOA 100 debt = 200 2583 30991 deM = 300 2833 33991 Total Pmt 833 Ranch Unit Nrith Carport wM20 Financing Cos( 721500 1st Nkg. 116425 Clostng Costs 2000 2nd Mtg. 6075 Down Pmt 1000 Total 123500 Total 723500 P&l 661 5.500% Income Rqd. 0 debt 2015 24181 Taxes 45 debt= 100 2265 27181 HOA 100 debt = 200 2515 30181 debt = 300 2765 33181 Total Pmt 806 Preliminary Development Budget 6410 W. 44th Pt. Alternative #2 - Att improvements proposed (with carports) Costs Acquisition 789000 Construction Costs 286020 ` Construction fnterest 3000 Closing Costs 2000 Loan Fees 4000 Appraisai 2000 Phase i Environmentat 2000 Su[vey/Condo Map 3000 Legal 2500 Project Approval 1500 Marketing 61125 Title 6000 Home Warranties 2250 Misc. 2500 Contingency 5000 Total Costs 1171895 Revenues 8 Urtits @ 2 Units @ Total Revenues Profit 123250 986000 118250 236500 1222500 50605 Not Considered: Rentaf income and operating expenses during devetopment HOA fees prior to tuming over association to homeowners Taxes Buyout existing leases *includes 10,000 for demising/fire walls 44th Place 7ownhomes Affordabilitylloan Qualification (Altemative #2) 2 Storv Unit with Carport w/H20 FinancinQ Cost 123250 1st Mtg. 118087.5 Closing Costs 2000 2nd Mtg. 6462.5 Down Pmt 1000 Total 125250 Total 125250 Monthry Annual p&I 670 5.500°k Income Rqd . U debt 2039 24465 Taxes 45 debt= 100 2289 27465 HOA 100 debt = 200 2539 30465 debt = 300 2789 33465 Total Pmt 815 Ranch Unit with Carport wlH20 Financing Cost 118250 1 st Mtg. 113337.5 Closing Costs 2000 2nd Mtg. 5912.5 Down Pmt 1000 Total 120250 Total 12tT250 P&l 644 5.5009k Income Rqd . 0 debt 7971 23656 Taxes 45 debt= 100 2221 26656 HOA 100 deM = 200 2471 28656 debt = 300 2721 32656 Total Pmt 789 Pretiminary Development Budget 6410 W. 44th Pl. Altemative #3 - Atl improvements proposed (ofE street parking onty) Costs Acquisition 789000 Construction Costs 262020 * Construction fnterest 3000 Closing Costs 2000 Loan Fees 4000 Appraisal 2000 Phase 1 Environmentat 2000 Survey/Condo Map 3000 Legat 2500 Project Approval 1500 Marketing 59850 Tftle 6000 Home Warranties 2250 Misc. 2500 Contingency 5000 Total Costs 1146620 Revenues 8 Units @ 2 Units @ Total Revenues Profit 120700 985800 115700 231400 1197000 50380 Not Considered: Rentat income and operating expenses during development HOA fees prior to tuming over association to homeowners Taxes Buyout existing leases 'includes 10,000 for demising/fire walis 44th Place Townhomes Affordability/loan Qualifrcation (Altemative i!3) 2 Storv Unit with CarLOrt w/1420 Financinn Cost 120700 tst Mtg. 115665 Closing Costs 2000 2nd Mtg. 6035 Down Pmt 1000 Totai 122700 To4a{ 122700 Monthry Annual P&I 657 5.500°k Income Rqd. 0 debt 2004 24052 Taues 45 debt= 100 2254 27052 HOA 100 debt = 200 2504 30052 debt = 300 2754 33052 Total Pmt 802 Ranch Unit with Carport wl1-120 Financing Cost 115700 1st Mtg. 410815 Closing Costs 2000 2nd Nttg. 5785 Down Pmt 1000 Totaf 117700 Total 117700 P&l 630 5.500% Income R4d. 0 deb[ 1937 23243 Taxes 45 debt= 100 2487 26243 HOA 100 debt = 200 2437 29243 debt = 300 2687 32243 Tatal Pmt 775 Preliminary Development Budget 6410 W. 44th Pt. Alternative #4 - Exterior & minimaf unit improvements only (offstreet prkg.) Costs Rcquisition Construction Costs Construction Interest Closing Costs Loan Fees Appraisal Phase t Environmentat SunreylCondo Map Legal Project Approval Marketing Title Home Warranties Misc. Contingency Total Costs Revenues 8 Units @ 2 Units @ Total Revenues Profit 1070000 50630 Not Considered: Rentat income and operating expenses during devetopment HOA fees prior to tuming over association to homeowners Taxes Buyout existing leases 789000 141120 ' Inctusions 3000 GF( breakers/outfets 2000 Hard wire smoke alarms 4000 New locks 2000 Laundry hookups 2000 Cleanllube bath fans 3000 2500 Oations 1500 New kitchens/baths 6600 53500 New appliances 1600 6000 New carpeUhardwood refin. 2500 2250 New interior doors 390 2500 New window coverings 250 5000 Pain4 interior 750 Total Option package 12090 1019370 108000 894000 103000 206000 'includes 10,000 for demising/fire walls 44th Place Townhomes Affordability/loan Qualirication (Akemativeli4) 2 Storv Unit with CarpoR wM20 Financirta Cost 108000 tst Mtg. 103600 Closing Cosis 2000 2nd Mtg. 5400 Down Pmt 1000 Totai 110000 Tota{ 140000 Montttry Annuai p&I 588 5.500% Income Rqd. 0 debt 1833 21997 Taxes 45 debt= 100 2083 24997 HOA 1 00 debt = 200 2333 27997 debt = 300 2583 30997 Total Pmt 733 Ranch Unit with Carport wM20 Financing cost 103000 1st Mtg. 98850 Ciosing Costs 2000 2nd Mtg. 5150 Down Pmt 1000 Total 105000 Tota1 105000 pg► 561 5.500°k lncome Rqd . 0 debt 1766 211$$ Taxes 45 debt = 100 2016 24188 HOA 100 debt = 200 2266 27188 debt = 300 2516 30188 Total Pmt 706