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HomeMy WebLinkAbout08/22/2006HOUSING AUTHORITY MEETING August 22, 2006 CITY COUNCIL CHAMBERS 5:00 P.M. A. Call Meeting to Order B. Roll Call C. Approval of the Minutes: July 25, 2006 D. Officers Reports E. Public Forum F. Unfinished Business G. New Business A. Update on potential projects H. Other I. Adjournment MINUTES OF WHEAT RIDGE HOUSING AUTHOffiTY July 25, 2006 5:00 p.m. A. CALL THE MEETING TO ORDER The meeting of the Wheat Ridge Housing Authority was called to order by Chair Brungardt at 5:00 pm. in the council chambers of the Municipal Building, 7500 West 29`h Avenue, Wheat Ridge, Colorado. B. ROLL CALL OF MEMBERS Authority members present: Cheryl Brungazdt Kent Davis Kathy Nuanes Janice Thompson Commissioners absent: Terry Womble Also attending: Alan White, Community Development Director Henry Wehrdt, Project Manager Betty Maybin, Cornerstone Realty Larry Nelson, Cornerstone Realty Ann Lazzeri, Recording Secretazy C. APPROVAL OF NIINUTES - June 27, 2006 Kathy Nuanes offered the following amendments to the minutes of June 27, 2006. Add a paragraph to Item F: "There was consensus of the Authority to contact the two sanitation districts to learn their response to the mayor's letter and to have the city attorney review the alternatives." It was moved by Kathy Nuanes and seconded by Kent Davis to approve the minutes of June 27, 2006 as amended. The motion carried 3-0 with Janice Thompson abstaining. D. OFF'ICER'S REPORTS There were no officer's reports. E. PUBLIC FORUM There was no one to address the Authority. HOUSING AUTF30RTI'Y July 25, 2006 - 1 - F. UNFINISHED BUSINESS Alan White reported that David Firmin contacted the water and sanitation districts and they agreed to use combined meters so additional tap fees will not be required for the duplex property. The city attomey also advised that there would be no liability to the Housing Authority if the duplex remained in the ownership of the Housing Authority. Larry Nelson commented that this would not be an issue because there will not be a ground lease. Larry Nelson commended David Firnun for his work with the sanitation districts. The agreement between the condominium association, water boazd and sewer board will provide that if the condominium is ever abandoned, the owners would then have to pay for a water and sewer tap. As long as the units are govemed by a homeowners associarion, there will be no need to buy water and sewer taps. This will set a precedent for future projects. G. NEW BUSINESS . Auuroval of Fee A¢reement with David FYrmin The subject agreement would provide for a$1,750 fixed fee for work on the duplex project at 3884-94 Parfet Street and would require a deposit of $1,000. At the request of Kathy Nuanes, Cheryl Brungazdt explained that David Firmin was hired because of his expertise with affordable housing and homeowner associations. Kent Davis inquired about the role of the city attorney with the Housing Authority. Alan White explained that the city attorney is responsible for reviewing matters such as bylaws and adoption of budget. David Firmin works strictly on documents that must be filed for Housing Authority projects such as condo plats. Kathy Nuanes asked what fees were chazged by David Firman for other Housing Authority projects. Larry Nelson replied that fees for other projects were $1,500; however, the addirional fee of $250 is due to the additional work with the water and sanitarion districts. Moved by Kathy Nuanes and seconded by Janice Thompson to approve the Representation and Fee Agreement and pay the $1,000 retainer fee. The motion carried 4-0. H. OTHER • HousinE Authoritv Bank Account HOUSING AUTHORITY 7uly 25, 2006 - 2 - Alan White discussed the Authority's checking account with Vectra Bank. He commented that the Urban Renewal's funds are deposited with First Bank in an interest bearing account. He asked if the Authority would prefer to have the Authority's account transfened to First Bank in order to receive a higher interest rate. Vectra is paying.25% and First Bank is paying 1%. Kent Davis suggested that Alan White contact Vectra Bank to see if they could offer a similar rate. He was in favor of doing business with Wheat Ridge businesses where possible. There was a consensus to direct Alan White to contact both banks regazding interest rates and report back to the Housing Authority at its next meeting. . BudEet Henry Wehrdt provided copies of the Development Budget for the Pazfet Street project which he believed was pretty firm and comprehensive. The budget will serve as basis for bidding the project. He reviewed details of the budget and commented that certain items could be added or deleted depending on achxal conditions when work is started. He also provided photographs of the property. In response to questions from Janice Thompson, Mr. Wehrdt explained that cedar fencing was chosen to provide privacy. The fences will have steel posts and should last for a very long time. Kathy Nuanes asked if homeowners would have the option to choose cofors and upgrades. Larry Nelson explained that previous strategy has been to pick the colors and make the units look as good as possible. Staging has a dramatic impact on marketability. In response to a question from Janice Thompson, Henry Wehrdt explained that the water beneath the house is drying out. Cheryl Brungardt mentioned that the Habitat store has new mini blinds for $5.00 but she was not sure whether they were aluminum or plastic. Cheryl Brungazdt asked if the Jefferson County grant could apply to the Parfet project. Henry Wehrdt expiained that the grant is for $150,000 and the rehab for this project would not amount to that much. He suggested it might be better to use the grant for acquisition rather than rehab. Kathy Nuanes asked if the grant could have been used for acquisition of the Parfet property. Henry Wehrdt explained that the approval process takes six to eight weeks and based upon a contract and proposal prior to expenditure. HOUSING AUTHORITY July 25, 2006 - 3 - There wasn't time in this case. They will not reimburse for funds already spent. In response to a question from Kathy Nuanes, Henry Wehrdt explained that there was a 2004 grant in the amount of $75,000 that had to be spent before the end 2006. These funds were used for Parkside. Another gant was issued in the amount of $150,000 for use on another proj ect. These funds also need to be spent by the end of 2006. If this money is not spent, the Authority would have to apply for another grant. Cheryl Brungardt asked how realistic it would be for a buyer to wait six or eight weeks in order to use grant money. Larry Nelson replied that it could be possible with a good solid contract to stretch it out that long with inspections, etc. It was moved by Janice Thompson and seconded by Kathy Nuanes to approve the development budget in order to solicit bids for interior and exterior remodeling at 3884 and 3894 Parfet Street in the amount of 97,998.00. The motion carried 4-0. Henry Wehrdt explained that if bids come in over the budget, those items will come back to the Authority for approval. • Prospective Properties Larry Nelson presented information on two prospective properties. The first was a property on 39th Avenue. Following discussion, there was a consensus that this property would serve better as a rental property than one for ownership and therefore the Authority decided not to pursue purchase. The second property just came on the market today and consists of two triplexes. Each tri-plex has one one-bedroom unit and two two-bedroom nnits. Each unit has a garage, double pane windows, newer carpet, new paint, new roof and mostly brick construction. If it is possible to acquire the units for $675,000 the total amount would be $876,000, assuming $15,000 per unit for rehab. All the units are rented at this time. All units are ranches, close to 29t' Avenue for transportation, and would work very well as housing for seniors and disabled individuals. In response to a question from Cheryl Brungazdt, Larry Nelson stated that the units are not in a flood zone. It was moved by Kent Davis and seconded by Janice Thompson to direct Cornerstone Realty to pursue the project and direct Henry Wehrdt to investigate the availability of grant money for the project. The morion carried 4-0. HOUSING AUTHORITY July 25, 2006 - 4 - . Cornerstoae Reuort Larry Nelson reported that the unit at Quail Street fell through. There is a prospective buyer for Pazkside. He also had a resolution that needed to be signed by the proper individual from the Housing Authority before the title company can issue a title policy for the duplex property. • Meetin¢ Time It was moved by Janice Thompson and seconded by Kent Davis to conduct Housing Authority meetings every fourth Tuesday of the month at 5:00 p.m. Cheryl Brungazdt, Chair Ann Lazzeri, Recording Secretary HOUSING AUTHORITY July 25, 2006 -5- 6811e10e Wheat Ridge Housing Authority Balance Sheet As of August 18, 2006 Aug 18,'06 ASSETS Curran! Assets CheckinglSevings 113 • VacVa Operating Account 649,892 Total CheckinglSavings 649,892 Other Current Asse4 151 • PerkSida ProJect Invantory 222,760 152 • Quail ProJeet Inventory 119,804 153 • Pnrfat ProJact Inventory 237,172 TotalOtherCurrantAssats 579,736 Total Current Assets 1,229,628 Other Asaets , 271 • Note Receiveble -Abel 3,000 273 • Note Receiveble - Baca 9.262 TotalOtherAssats 12,262 TOTAL ASSETS 1,247,890 LIABIL1T1E5 & EQUITY Liabilities Current Liabilities Other Current Liabilities 310 • Real Estete Taxes Due 979 Total Other Current Liabilities 979 Total Current Liabilities 979 Total Liabilities 979 Equity Net Incoma 37.847 465 • Fund Balance 1,203,064 Total Equiry 1,240,911 TOTAL LIABILITIES & EQUITY 1,241,890 Pnge 1 of 1 08118106 Wheat Ridge Housing Authority Parfet Project All Transactions Aug 16,'06 % of Income Ordinary IncomalExpense Cost of Goods Sold 555 • Purchase of Unifs 234,000 0% 562 • Acqutaitions Costs 172 0% 571 • Homeowners Associatlon 1,000 0% 399 • Ending Cost of Units -235,172 0% Total COGS 0 0% Groas Profit 0 0 % Expense 802 • Gerdening E Meintenance 490 0% 872 • Ulllitles 40 0 % Total Expenae 530 0% NetOrdinary lncoma -530 0% Netlncome 330 0% Page 1 of 1 08118/06 Wheat Ridge Housing Authority Park Side Project All Transactions Aug 31,'06 % of Ineome Ordinery lncomelExpense Incoma 500 • Snle of Units 849,900 99% 530 • Rant 9233 1 % Totallncome 859,133 100% Cost of Goods Sold 555 • Purchase of Unlts 545,000 63 % 560 • Acquisdon Appralsal Fees 1,700 0% 562 • AcqWsltlons Costs . 1,939 0% 563 • Architecture 600 0 % 565. Condo Msp 5,658 1% 567 • ConstrucNon Perlod Meintenance 4,201 0% 568 • Constructlon Managemant 17,636 2% 370 • Gnrages 43,420 5% 571 • Homeowners Associatlon 2,025 0% 573 • Rehabilitation -Appliances 12,210 1% 574. Rehabllitetlon - Cabinefs 43,121 5% 575 • Rehabilitalon - Electrical 15,950 2%a 376 • Rehabilitation - Exterior 82,409 10% 577 • Rehabilitation • Floora 31,498 4% 578 • Rehabllitaion - Plumbing 31,082 4% 580 • Rehabilitation - Various 107,545 13% 581 • SupplieslMaterials 932 0% 599 • Ending Cost of Units -222,760 -26% Tota1COGS 724,166 84% Gross Proflt 134,967 16% Expense 700 • Selling Costs 2,263 0% 704 • Buyar Incentlves 26,784 3% 705 • CIOSing COSts 4J64 0% - 710 • Commisslons 36,613 4% 750 • Accounting & Legal 365 0% 802 • Gardening & Meintenance 6,381 1% 804 • Homeowners Assoclation Dues 350 0% 807 • Insuranw 5,956 1 % 825 - Office Supplias 70 0% 832 • Postage 51 0 % Page 1 ot2 08118106 Wheat Ridge Housing Authority Park Side Project All Transactions . Aug 37,'06 Y. of Incoma 843 • Repalrs 2,590 0 % 857 • Taxes • Real Estate 300 0% 865 • Tresh Removal 851 0% 872 • Utllities 2,435 0 % TolalExpense 89•173 10% Net Ordinary Income 45,794 5% Other IncomelExpense Otherlncome 564. CDBG Grant 75,000 9% Total Other Incoma 75,000 9% Net Other Income 75,000 9% Net Income 120,794 140/6 Pnge 2 of 2