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