board of commissioners meeting · james dunn requested that items 4d and 4f be removed from the...

BOARD OF COMMISSIONERS MEETING May 22, 2017 Clinton Place 5:30 p.m. AGENDA Meal Site 1. Call of Roll

2. Approve Minutes of April 24, 2017 Board of Commissioners Meeting

3. Receive Comments from Tenants and Public

NOTE: The Chair will take tenant and public comment on each agenda item following the staff report on the item. Tenants and public wishing to comment on a topic not included on the agenda may do so at this time. All matters listed below on the Consent Agenda are considered under one motion and will be enacted by one motion. There will be no separate discussion on those items. If discussion is desired, that item will be removed from the Consent Agenda and considered separately.

4. CONSENT AGENDA

A. Receive April 2017 Public Housing Financial Reports

B. Receive April 2017 Clinton Place Financial Reports

C. Receive April 2017 Section 8 Program Report

D. Cancel the Regular July Board Meeting

5. REGULAR AGENDA

A. Executive Director’s Report

B. Discuss Preliminary Objectives for the 2018 MTW Annual Plan

C. Discuss Recommendations for Appointment to Fill Expiring Commissioner

Position

D. Discuss Audit Contract

E. Determine New Parameters of Smoke Free Policy

F. Discuss Use of Reserves for Boiler Upgrade at Babcock Place

6. Calendar and Announcements

Executive Director out of office May 26–June 2

Executive Director out of office June 12-13 for meeting with Secretary Carson

7. Adjournment

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MINUTES OF A REGULAR MEETING OF LAWRENCE-DOUGLAS COUNTY HOUSING AUTHORITY

BOARD OF COMMISSIONERS MEETING April 24, 2017 Edgewood Homes 5:50 p.m. Conference Room 1. Call of Roll The meeting was called to order by Chair Powers at 6:07 pm. Upon call of roll, the following Commissioners responded present:

Maria Duran Sue Hack Ellen Paulsen Joshua Powers

Commissioner Star was absent by prior arrangement. Also present were members of the public Pat Benabe and James Dunn, and LDCHA staff members Beverly Hyatt, Ruth Licht-wardt, and Shannon Oury. 2. Approve Minutes of March 27, 2017 Board of Commissioners Meeting Commissioner Paulsen moved to approve the Minutes as presented. Commissioner Duran seconded. The motion passed unanimously. 3. Receive Comments from Tenants and Public Pat Benabe commented that she had recently done her recertification and that the new form says that, per an IRS rule, deductions for over-the-counter medications are no longer allowed even if prescribed by a doctor. She said that the biennial recertification was not helping her because medical costs were not being averaged over the two years and that many seniors survive on over-the-counter medications. Executive Director Oury explained that biennial recertification for seniors and disabled residents on a fixed income had been established because there was rarely any change in their income which would alter their rent from year to year. The agency has taken on several new programs over the last few years but has not increased staff, which has been made possible by the time and cost savings of changing to biennial certification. She explained that the hardship policy allows residents with a rise in medical expenses of 10% or more to request interim recertification to have their rent adjusted. Ms. Benabe asked if following the IRS rule regarding over-the-counter medications was a HUD requirement, and Ms. Oury answered that the it was rec-ommended by HUD but not required. She said the change had been brought to the Resi-dent Advisory Council last year as part of the Admin/ACOP updates for discussion and approval. Ms. Oury also spoke about how residents had been bringing boxfuls of receipts in for office staff to sort through and that following the IRS rules to determine what was eligible saved time for the staff. Ms. Benabe made suggestions on how receipts should be organized and marked when they are turned in and spoke about how it was getting harder to live on a fixed income. Chair Powers thanked her for bringing this to the Board’s attention and said it sounded like a resource issue.

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James Dunn recommended that Ms. Benabe’s suggestions on receipt organization should be incorporated into the Renter’s Ed classes. 4. CONSENT AGENDA A. Receive March 2017 Public Housing Financial Reports B. Receive March 2017 Clinton Place Financial Reports C. Receive March 2017 Section 8 Financial Reports E. Resolution 2017-11: Approve 2017 Income Guidelines

G. Resolution 2017-12: Approve Disposition of Obsolete Computer Monitors James Dunn requested that Items 4D and 4F be removed from the Consent Agenda for further discussion. Commissioner Hack moved to approve the Consent Agenda without Items 4D and 4F. Commissioner Paulsen seconded. The motion passed unanimously. D. Receive Twelfth Year Progress Report on the HOPE Building Program and Approve Letter of Intent Executive Director Oury explained the HOPE program, which is run in a building that is leased from James Dunn. The report gives the outcomes for the HOPE year, which ended March 31st. The letter is included in the packet for pre-approval by the Board since histori-cally the grant has been announced with a very short deadline and not enough lead time to get the letter approved at the next Board meeting.

F. Receive LDCHA Quarterly Demographics Report Executive Director Oury said the report is a breakdown of participant demographics using a wide range of statistics gathered as anonymous data from the housing software and pre-sented in chart form for easier viewing. It allows a snapshot of the situations of current participants as well as tracking changes over time. James Dunn asked if it was connected with the Affirmatively Furthering Fair Housing mandate and Ms. Oury explained that the Demographics Report is separate and something the agency has been doing for a long time. Commissioner Duran asked where she would fall in the report in terms of race. Ms. Oury said that the category is voluntary and self-declared, the agency does not actually require participants to provide that information. The Board accepted the two Consent Agenda items without a motion. 5. REGULAR AGENDA A. Executive Director’s Report Executive Director Oury said she had written this report before she left for the MTW Con-ference in Washington DC at the end of last week, and that at the conference the financial news was no better. Congress has until Friday to pass one of several options to continue funding the government, and the news over the weekend that the President wants to make approval of the budget contingent on funding a border wall has complicated the issue. The word at the conference was that if a budget deal was not reached by Friday then a short-term funding resolution at 2016 levels would likely be passed. Since the agency is almost

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halfway through the fiscal year with no idea of what the actual funding is going to be, it has not been possible to know whether to plan for a month or until the end of the year. However, there will be more news on Friday. Clinton Place is the bright spot in the agency’s financial picture. The Kansas Housing Re-source Corporations has approved an automatic rent increase for Clinton Place. It does not affect what the tenants pay as their rent is income based, but HUD will send more subsidy to make up the difference. The prior Board Chair, Bronson Star, signed the request and the paperwork has been returned. The PHAS score has been received. It is a 92, which is the same as last year. The score is based on the evaluation of a large range of items. If LDCHA were not an MTW agency and were being scored as a regular housing authority, a 92 score would designate it as a High Performer agency. The LDCHA is very pleased with the score, and although the agency is automatically designated high performer status per the MTW Agreement, staff likes to operate in a manner that the agency is also independently meeting the criteria. Ms. Oury informed the Board that Director of General Housing Eric Sader has resigned and was relocating to another city. Mr. Sader had been hired after an extensive search following the retirement of the long-time General Housing Director, and in fact the first search had failed and he had been hired after it was conducted a second time. The position is critical to the smooth operation of the agency. Mr. Sader has tried to make the transition as easy as possible. He wrote extensive documentation on succession planning and has trained staff on various aspects of his duties. Ms. Oury requested that the Board approve a con-sulting contract with Mr. Sader to assist the new Director when hired. She also requested that the Board approve a waiver to the personnel policy and allow her to hire the new Di-rector at a greater level of compensation than is currently allowed. She feels this is neces-sary to attract a highly qualified candidate. The current pay grades are actually out of date, the last time a wage study was done was in 2006. Chair Powers asked several questions about Mr. Sader’s rate of pay. Ms. Oury explained that the proposed consulting contract would be at the rate of pay at which he was at when he left, and that she had received a waiver from the Board when he was first hired to start him at a higher level than policy allowed. Commissioner Hack asked if the agency could support the higher level of pay given the uncertainty of the budget, and Ms. Oury explained that the position was paid out of several budget lines and so could sustain it. If the position were paid primarily out of Section 8 then it would not be possible since that is the most problematic part of the agency budget right now. Ms. Hack said that she would prefer that the amount of hours in the consulting contract not be capped, since it is currently unknown how many consulting hours might be needed for the transition and issues might arise later which could require Mr. Sader’s assistance. Mr. Powers suggested that perhaps the per-sonnel policy should be re-evaluated and updated to allow the Executive Director more leeway in deciding compensation when hiring higher level positions. Commissioner Hack moved to approve a consulting contract with Mr. Sader at $34 per hour with no cap on the number of hours. Commissioner Paulsen seconded. The motion passed unanimously.

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Commissioner Hack moved to approve offering the new Director of General Housing, once hired, compensation up to Step 11 rather than the lower step mandated by the personnel policy. Commissioner Paulsen seconded. The motion passed unanimously. Ms. Oury gave a brief synopsis of the last item in her written report, on continuing education and vocational training that residents had received through LDCHA Resident Services in 2016, then walked on an additional item. She said the proposed Bert Nash Crisis Center is still being discussed and would probably be brought before the voters as a bond issue at some point, but that there is new urgency to the area of the project that the LDCHA would be involved in, the building of residential units adjacent to the center. At the MTW Conference, the MTW HUD office was advising the agencies to, if at all possi-ble, spend their reserves which had recently been transitioned to HUD. Ms. Oury had a conversation with County Administrator Craig Weinaug earlier in the day about moving for-ward on building the units, and would like the Board’s permission to pursue the project whether or not the Crisis Center moves forward. There is an ongoing need for extremely low income affordable housing and the agency would always be glad of the additional units. Ms. Oury said that she would much rather put the HUD-held reserves to use locally than allow the accounts to be swept, and that to do so the agency would need to move ahead on the project as soon as possible, whether in conjunction with the Crisis Center or not. The Board members unanimously gave their consent for Ms. Oury to begin the necessary conversations. She will report all progress back to the Board.

B. Receive Final 2016 Financial and Compliance Audit Report

Executive Director Oury informed the Board that the printed copies of the audit report which had been distributed to them at the meeting are the same as the electronic version which had been previously emailed. She reported that the audit contained one finding, which the agency is taking very seriously. It is highly unusual for the agency to receive a finding. The issue was that the fee accountant had performed several transactions incorrectly and the agency did not catch them. The ultimate responsibility rests with the agency. Ms. Oury explained that the FDS (Financial Data Spreadsheet) was received from the fee accountant only 24 hours before it was due for submission. Finance Director Beverly Hyatt is the only staff member qualified to check the FDS and she did not have time to go over it as thoroughly as needed before the deadline. This has been an ongoing issue and Ms. Oury has had a discussion with the fee accountant on entering into a contractual agreement that the FDS would be completed and sent to LDCHA prior to February 15th. If they are not willing to do that, the agency will search for another fee accountant. Additionally, there is a severe time crunch surrounding the beginning of each year which is especially hard on the Finance Department. It is due to the compressed deadlines of both the year-end budget reconciliations and financial reporting being due to HUD, and the new program budgets for the upcoming year being developed for approval by the Board. Ms. Oury asked for the Board’s permission to bring future program budgets before the Board in February rather than January. This would allow staff time for better oversight.

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The audit shows that all programs are in compliance and no money is missing, the issue is that some of the money was accounted for in the wrong places. The agency is pleased that there were no compliance issues. Apart from the audit, the agency has instituted more quality control measures within its departments, which Mr. Sader was instrumental in de-veloping. There was general discussion with the Board about historical and ongoing issues with Lind-sey, both with their housing software which is inadequate for several MTW functions but which is embedded in almost everything the agency does, and having used their fee ac-countants for decades. Commissioner Hack said she recalled when the fee accountant had previously missed the deadline multiple times for financial statements to be prepared in time for the Board meeting. Ms. Oury said she believes the company is short staffed, and that she has spoken with other housing authorities that have a fee accountant who is not tied to their housing software. She will begin looking for another company to provide those services accurately and on time if Lindsey does not. Several Board members stated that the agency must get the services it is paying for. The Board normally just receives the audit report but the Auditor said in his letter that the Board should vote to accept this report. Commissioner Hack moved to accept the 2016 Audit Report as presented. Vice Chair Du-ran seconded. The motion carried unanimously.

C. Resolution 2017-13: Review Section 8 Funding Issues and Approve Imple-

mentation of Appropriate Cost Saving Measures Executive Director Oury reported that the LDCHA is projecting a shortfall in the Section 8 budget. Part of it is due to a disagreement with HUD over how much has been transitioned to reserves, which appears to be an accounting error on HUD’s part but possibly could result in a significantly reduced payment to the agency for May. Once that is resolved, however, staff is expecting a lower proration than even the agency’s conservative Section 8 budget currently is based on. HUD is advising housing authorities to expect a 94% pro-ration and the budget is based on a 95% proration. On top of this deficit, HUD has told agencies that the 2017 funding will probably not be available until July. Due to sequestration and the federal budget crisis in 2013, LDCHA has had recent experi-ence in implementing emergency cost-saving measures. Staff has already stopped issuing new Section 8 vouchers and is not allowing port-outs of current vouchers to jurisdictions that have a higher payment standard. Ms. Oury is asking the Board’s approval of the measures on the attached document. Unfortunately this includes suspending the MTW ac-tivities which assist many participants with staying employed, including the vehicle repair program and child care. The agency is not going to suspend the homeownership matching grant since the LDCHA has a multi-year commitment with the residents on the homeown-ership program. She outlined more of the proposed cost-saving measures, including a hir-ing freeze and wage freeze. There are two open positions in the agency besides the ones discussed earlier in the meeting, one in Maintenance and one in General Housing, which will not be filled and which will require other staff to take on more work.

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Chair Powers had some questions on the Section 8 reserves and the timing of the release of funding. Ms. Oury explained that the Section 8 budget as approved by the Board had projected a deficit which would have been covered by excess MTW reserves. Because the proration is now expected to be less, even when the funding is released the reserves will no longer be enough to cover the deficit, and spending will need be cut in order to remain in the black. Mr. Powers asked what the scenario would be if the proration came in at 93%, and Ms. Oury replied that more radical measures, such as employee furlough days, would need to be considered. In 2013 other housing authorities had been forced to take such measures. The federal budget situation is so volatile that it appears likely it could be even worse in 2018. In that case, some major programs which do not pay staff costs and Resi-dent Services might have to be cut. This would be Ms. Oury’s last choice but the agency’s largest cost is staff so it is the budget item with the most flexibility. Commissioner Hack suggested a letter to the Congressional representatives pointing out that programs that assist residents to become economically self-sufficient is a very effective use of tax dollars as people who move off the program will become taxpayers. Commis-sioner Paulsen suggested that when the Annual Report is mailed to all the representatives that a cover letter signed by all the Board members be included. The Board members all concurred with that idea. Ms. Hack suggested asking all the City and County Commission-ers to write as well. Mr. Powers spoke of his observation as a government employee as to how highly effective calls and letters to government officials are. Ms. Oury talked about the proposed federal “skinny budget” cutting HOME and CDBG funds and the tremendous rip-ple effect it would cause throughout the community. However, she said the word at the MTW conference was that the skinny budget had very little chance of passing. The Board and Ms. Oury discussed measures that would be taken to contact officials and representa-tives if the results of the Congressional budget vote on Friday went poorly. Commissioner Paulsen moved to approve the cost saving measures outlined in Resolution 2017-13. Commissioner Hack seconded. The motion passed unanimously. 6. Calendar and Announcements Executive Director Oury announced that the first smoking ban policy meeting had taken place at Babcock Place and another meeting is scheduled at Edgewood Homes for public housing and scattered sites. The comments will be reported to the Board. There is a study on implementation of the smoking ban which is being conducted through Harvard University and which LDCHA has been participating in. Representatives from the study will be on site tomorrow to speak with staff and residents. 7. Adjournment There being no further items of business, Commissioner Hack moved to adjourn. Vice Chair Duran seconded. The meeting adjourned at 7:22 pm. _______________________________ ________________________________ Chair Secretary Attest

LAWRENCE-DOUGLAS COUNTY HOUSING AUTHORITY BOARD OF COMMISSIONERS MEETING

May 22, 2017

AGENDA ITEM 4A: Receive April 2017 Public Housing Financial Reports. CURRENT ISSUE: As of April’s reporting period, Public Housing properties are at 33% through the budget year. Operating Income Total operating receipts from all sources show we are running 5% over budget projections at 38%. Tenant Rental Income (3110) shows as running slightly over budget projections at 34%. Interest income (3610) shows as running 6% over budget projections at 39%. We re-ceived twelve (12) interest payments on custody investments through April. Recall, In-terest Income is a projection based on the past fiscal year historical market investment rates. Total Other Income shows as running 28% over budget projections at 61%. Recall, most of this is because of the annual draw totaling $119,613 made from the Capital Fund grants under its Operations budget line. This is a credit to Public Housing Other Income and is for operational reimbursements for the Executive Director, Finance Director, Maintenance Director and Business Office Assistant’s percentage of time worked under those two grants. HUD allows PHA’s to draw all eligible Operational Fund projected costs in one draw at the beginning of each fiscal year. The amount of subsidy contained in the budget, upon which this report is based, is a projection based on 2016 final eligibility reduced at an 85% proration level. Calendar year 2016 funding eligibility was $863,428 X 85% proration factor = $733,914. Congress passed a budget on May 4, however HUD has not released final proration levels. For initial funding Congress has operated under three Continuing Resolution’s (CR’s). For the months of January through April, PHA’S are continuing to receive approximately 85% of their 2017 initial funding eligibility (which is $885,579 X 85%) or $268,444 authorization in LOCCS (for four month’s). We expect it to be late summer before HUD announces final Operating Subsidy proration levels. Operating Expenses Total operating expenses from all sources show we are running 5% under budget projec-tions at 34%. Administrative expenses are running 2% under budget projections at 31%. Training (4140) shows as running over budget projections at 40%. This is because of a onetime staff registration fee for Leadership Lawrence (paid at the beginning of FY 2017). Mem-bership Dues (4190.12) shows as running over budget projections at 89%.


May 22, 2017

This is because of one-time membership dues paid. We expect this account to come in line with budget actuals as we continue throughout the fiscal year. Other Sundry (4190.18) continues to show as running 7% over budget projections at 41%. Staff has identified the cause to be copy overage charges and are working on ways to reduce the number of copies down. Administrative Contracts (4190.19) shows as running 28% over budget projections at 43%. Recall, this is because of the onetime annual payment to Siemens for the Annual Software Upgrades contract under the Energy Performance Loan Contract. We expect this budget line to come in line with actual as we continue throughout the budget fiscal year. Total utilities are showing as running 5% under budget projections at 29%. Water (4310), Electricity (4320) and Other Utility Expense (4390) all continue to run under budget pro-jections. Gas shows as running over budget projections at 65%. We expect this to be seasonal. Collection Losses (4570) shows as running over budget projections at 43% due to a cod-ing error. The expense amount of $8,314 under current month is a coding error made by the Fee Accountant. This should have been coded to PILOT (4520) and has been cor-rected. The correction will appear on May’s financials. In addition, this does not affect the bottom line total of $77,689 year to date under general expenses. Extraordinary Maintenance (4610) shows as running 19% over budget projections at 52%. Again, this is because of the purchase of ice melt at the beginning of the year. In addition, we expect this to come in line with budget actual as we continue throughout the fiscal year. Operating Surplus/(Deficit) Year-to-date Public Housing shows total operating revenues of $862,271 and total oper-ating expenses of $573,651 resulting in an operating surplus (provision for current year reserves) of $288,620. Recall, most of the reason we are seeing such a large operating surplus this early in the year is because of the one-time draw made under the Capital Funds Operations line totaling $119,613 credited to Public Housing Other Income. BOARD ACTION: Receive report.

Statement of Operating Receipts and Expenditures Page B- 1 Lawrence Housing Authority - Low Rent PHA: 1 Projects: 01,02,03,04,06,07,08 Period Ending: 04/30/2017 Fiscal Year Ending: 12/31/2017 No. of Units: 363 No. of U/M Avail. 1452 & 4356

-------Current------- --------Y-T-D-------- -------Budget-------- Budget Account Amount P.U.M. Amount P.U.M. Amount P.U.M. Status ============================================================================================================================= OPERATING RECEIPTS

RENTAL INCOME Dwelling Rental 1 3110 5 (109,638.00) (302.03) (439,578.70) (302.74) (1,301,564.00) (298.80) (861,985.30) Total Rental Income: (109,638.00) (302.03) (439,578.70) (302.74) (1,301,564.00) (298.80) (861,985.30)

OTHER INCOME Interest Earned On Genera 1 3610 5 (1,300.53) (3.58) (5,253.18) (3.62) (13,600.00) (3.12) (8,346.82) Other Income 1 3690 5 (4,817.07) (13.27) (14,414.41) (9.93) (40,000.00) (9.18) (25,585.59) Other Income - Rent For S 1 3690.1 5 (2,598.67) (7.16) (10,189.30) (7.02) (30,600.00) (7.02) (20,410.70) Other Income - Bert Nash 1 3690.104 5 (148.00) (0.41) (592.00) (0.41) (1,776.00) (0.41) (1,184.00) Transfer In From Mtw For 1 3690.11 5 (20.00) (0.06) (60.00) (0.04) (240.00) (0.06) (180.00) Other Income - Paii Manan 1 3690.116 5 0.00 0.00 0.00 0.00 (1,000.00) (0.23) (1,000.00) Other Income - Capital Fu 1 3690.121 5 0.00 0.00 (16,143.00) (11.12) (16,143.00) (3.71) 0.00 Hope House Year 12 Mgmt O 1 3690.122 5 (495.00) (1.36) (1,980.00) (1.36) (1,485.00) (0.34) 495.00 Other Income - Capital Fu 1 3690.123 5 0.00 0.00 (103,470.00) (71.26) (103,470.00) (23.75) 0.00 Other Income - 2017 Capit 1 3690.124 5 0.00 0.00 (170.50) (0.12) (36,997.00) (8.49) (36,826.50) Other Income - Other Sour 1 3690.2 5 0.00 0.00 (212.25) (0.15) (2,500.00) (0.57) (2,287.75) Other Income - Home Tbra 1 3690.6 5 (142.00) (0.39) (564.00) (0.39) (1,700.00) (0.39) (1,136.00) Other Income - 2012 Ross 1 3690.70 5 0.00 0.00 0.00 0.00 (3,600.00) (0.83) (3,600.00) Other Income - Admin Accr 1 3690.80 5 (300.00) (0.83) (1,200.00) (0.83) 0.00 0.00 1,200.00 Total Other Income: (9,821.27) (27.06) (154,248.64) (106.23) (253,111.00) (58.11) (98,862.36)

Total Income: (119,459.27) (329.09) (593,827.34) (408.97) (1,554,675.00) (356.90) (960,847.66)

OTHER RECEIPTS Operating Subsidy - Curre 1 8020 0 (80,258.00) (221.10) (268,444.00) (184.88) (733,914.00) (168.48) (465,470.00) Total Other Receipts: (80,258.00) (221.10) (268,444.00) (184.88) (733,914.00) (168.48) (465,470.00)

Total Operating Receipts: (199,717.27) (550.19) (862,271.34) (593.85) (2,288,589.00) (525.39) (1,426,317.66)

OPERATING EXPENDITURES

ADMINISTRATIVE EXPENSE Administrative Salaries 1 4110 5 29,613.86 81.58 118,520.42 81.63 404,790.00 92.93 286,269.58 Longevity Payments 1 4110.3 5 0.00 0.00 0.00 0.00 2,730.00 0.63 2,730.00 Legal Expense 1 4130 5 0.00 0.00 0.00 0.00 2,500.00 0.57 2,500.00 Staff Training 1 4140 5 409.66 1.13 940.06 0.65 2,340.00 0.54 1,399.94 Travel 1 4150 5 307.05 0.85 1,005.96 0.69 3,500.00 0.80 2,494.04 Accounting Fees 1 4170 5 528.00 1.45 1,584.00 1.09 6,340.00 1.46 4,756.00 Audit Fees 1 4171 5 0.00 0.00 0.00 0.00 4,430.00 1.02 4,430.00 Employee Benefit Contribu 1 4182 5 6,361.82 17.53 29,761.47 20.50 90,000.00 20.66 60,238.53 Employee Benefits - Longe 1 4182.3 5 0.00 0.00 0.00 0.00 470.00 0.11 470.00 Membership Dues And Fees 1 4190.12 5 457.97 1.26 688.37 0.47 770.00 0.18 81.63

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05/18/2017 Prepared by Lindsey and Company, Inc. 15:12:10


-------Current------- --------Y-T-D-------- -------Budget-------- Budget Account Amount P.U.M. Amount P.U.M. Amount P.U.M. Status ============================================================================================================================= Telephone 1 4190.13 5 249.74 0.69 1,124.47 0.77 4,290.00 0.98 3,165.53 Coll Agent Fees And Court 1 4190.15 5 0.00 0.00 0.00 0.00 50.00 0.01 50.00 Forms & Office Supplies 1 4190.17 5 622.31 1.71 1,474.19 1.02 8,750.00 2.01 7,275.81 Postage And Misc Sundry E 1 4190.18 5 1,084.15 2.99 5,027.85 3.46 12,380.00 2.84 7,352.15 Administrative Contracts 1 4190.19 5 4,384.87 12.08 14,656.05 10.09 24,070.00 5.53 9,413.95 Total Administrative Expense: 44,019.43 121.27 174,782.84 120.37 567,410.00 130.26 392,627.16

TENANT SERVICES Tenant Services - Salarie 1 4210 5 4,614.43 12.71 18,400.45 12.67 64,390.00 14.78 45,989.55 Tenant Services - Employe 1 4210.9 5 759.24 2.09 3,128.96 2.15 11,080.00 2.54 7,951.04 Tenant Services - Adminis 1 4220 5 0.00 0.00 (30.06) (0.02) 0.00 0.00 30.06 Tenant Services - Transpo 1 4220.1 5 426.87 1.18 1,207.00 0.83 4,990.00 1.15 3,783.00 Tenant Services - Program 1 4220.10 5 0.00 0.00 159.25 0.11 6,130.00 1.41 5,970.75 Babcock Place Bequest 1 4220.14 5 0.00 0.00 (360.00) (0.25) 0.00 0.00 360.00 Rso Custodial Services (1 1 4220.15 5 557.17 1.53 1,701.74 1.17 5,400.00 1.24 3,698.26 Total Tenant Services: 6,357.71 17.51 24,207.34 16.67 91,990.00 21.12 67,782.66

UTILITIES EXPENSE Water 1 4310 5 2,813.43 7.75 8,447.02 5.82 36,350.00 8.34 27,902.98 Electricity 1 4320 5 9,846.79 27.13 31,623.12 21.78 150,000.00 34.44 118,376.88 Gas 1 4330 5 5,411.29 14.91 30,794.44 21.21 47,290.00 10.86 16,495.56 Other Utility Expense 1 4390 5 5,761.55 15.87 17,370.33 11.96 70,190.00 16.11 52,819.67 Total Utilities Expense: 23,833.06 65.66 88,234.91 60.77 303,830.00 69.75 215,595.09

ORDINARY MAINTENANCE AND OPERATION Labor 1 4410 5 32,452.37 89.40 132,514.70 91.26 486,280.00 111.63 353,765.30 Materials 1 4420 5 2,362.08 6.51 10,826.11 7.46 35,000.00 8.03 24,173.89 Contract Costs 1 4430 5 3,058.97 8.43 8,727.06 6.01 48,800.00 11.20 40,072.94 Garbage Removal 1 4431 5 4,159.40 11.46 12,491.48 8.60 50,400.00 11.57 37,908.52 Employee Benefit-ord. Mai 1 4433 5 8,479.58 23.36 38,246.69 26.34 114,770.00 26.35 76,523.31 Total Ord. Maint. & Operations: 50,512.40 139.15 202,806.04 139.67 735,250.00 168.79 532,443.96

PROTECTIVE SERVICES Protective Services - Con 1 4480 5 1,288.00 3.55 4,552.00 3.13 17,010.00 3.90 12,458.00 Protective Services - Ext 1 4480.1 5 0.00 0.00 0.00 0.00 15,000.00 3.44 15,000.00 Total Protective Services: 1,288.00 3.55 4,552.00 3.13 32,010.00 7.35 27,458.00

GENERAL EXPENSE Insurance 1 4510 5 11,259.01 31.02 45,036.04 31.02 127,900.00 29.36 82,863.96 Payments In Lieu Of Taxes 1 4520 5 8,314.16 22.90 33,256.72 22.90 99,770.00 22.90 66,513.28 Collection Losses 1 4570 5 0.00 0.00 (603.52) (0.42) 18,000.00 4.13 18,603.52 Total General Expense: 19,573.17 53.92 77,689.24 53.50 245,670.00 56.40 167,980.76

Total Routine Expense: 145,583.77 401.06 572,272.37 394.13 1,976,160.00 453.66 1,403,887.63

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-------Current------- --------Y-T-D-------- -------Budget-------- Budget Account Amount P.U.M. Amount P.U.M. Amount P.U.M. Status =============================================================================================================================

OTHER EXPENDITURES Extraordinary Maintenance 1 4610 5 0.00 0.00 1,295.80 0.89 2,500.00 0.57 1,204.20 Property Betterments & Ad 1 7540.93 5 0.00 0.00 83.19 0.06 10,210.00 2.34 10,126.81 Total Other Expenditures: 0.00 0.00 1,378.99 0.95 12,710.00 2.92 11,331.01

Total Operating Expenditures, Including Prior Year Adj. And Other Deductions: 145,583.77 401.06 573,651.36 395.08 1,988,870.00 456.58 1,415,218.64

RESIDUAL BEFORE DEPRECIATION (54,133.50) (149.13) (288,619.98) (198.77) (299,719.00) (68.81) (11,099.02) =================================================================================

RESIDUAL AFTER DEPRECIATION (54,133.50) (149.13) (288,619.98) (198.77) (299,719.00) (68.81) (11,099.02) =================================================================================

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May 22, 2017

AGENDA ITEM 4B: Receive April 2017 Clinton Place Financial Reports. CURRENT ISSUE: As of April, Clinton Place is at 33% through the budget year. Operating Revenue Total operating receipts from all revenue sources show we continue running on line budget projections at 33%. Total Tenant Rent and HUD Subsidy combined shows as running slightly above budget projections at 34%. Occupancy at the end of April was 99%; budget estimates for 2017 projects a 97% occupancy rate. Operating Expenses Total operating expenses from all sources show as running 7% under budget projections at 26%. Gas (6452) continues to run 11% over budget projections at 44%; again we expect this to be seasonal. Replacement Reserves (6546.2) is running significantly over budget projections at 93%. Most of this is for unforeseen repair work to the recently broken back door at Clinton Place. This also includes installation of the Alarm Lock to the door and programming 50 key fobs. The cost for all of this work was $2,206 (not included in the original budget). Worker’s Compensation (6722) as well as Auto Insurance (6725) both show as running 5% over budget projections at 39%. Required risk protection policies in the 2017 budget are based on prior year costs. It also includes any known rate increases or decreases at the time of the policy renewal. Both Workers Compensation and Auto Insurance (05/01/17 to 04/30/18 policy renewal) had a decrease to premium costs. Because of this, both budget lines should begin to come in line with budget actuals (beginning with May’s financials). Operating Surplus/(Deficit) As of the April reporting period, Clinton Place shows total revenues of $145,075 and total expenses of $67,238 with an operating surplus of $77,837. BOARD ACTION: Receive report.

Sta tement of Operating Receipts and Expenditures Page B- 1 Lawrence Housing Authority-Clinton Place PHA: 14 Projects: ALL Period Ending: 04/30/2017 Fiscal Year Ending: 12/31/2017 No. of Units: 58 No. of U/M Avail. 232 & 696

-------Current------- --------Y-T-D-------- ------- Budget-------- Budget Account Amount P.U.M. Amount P.U.M. Amo unt P.U.M. Status ============================================= =================================================== ============================= OPERATING INCOME

Rent Revenue - Gross Pote 14 5120 5 (12,167.00) (209.78) (48,479.00) (208.96) (428, 030.00) (614.99) (379,551.00) Hud Op Subsidy 14 5121 5 (22,684.00) (391.10) (95,186.00) (410.28) 0.00 0.00 95,186.00 Interest Income - Project 14 5410 5 (26.01) (0.45) (134.28) (0.58) ( 350.00) (0.50) (215.72) Other Revenue - Laundry A 14 5910 5 (192.38) (3.32) (1,180.49) (5.09) (3, 900.00) (5.60) (2,719.51) Other Revenue - Tenant Ch 14 5920 5 (0.50) (0.01) (95.00) (0.41) (1, 000.00) (1.44) (905.00) Total Operating Income: 14 (35,069.89) (604.65) (145,074.77) (625.32) (433, 280.00) (622.53) (288,205.23)

OPERATING EXPENSE

Conventions & Meetings 14 6203 5 0.00 0.00 11.16 0.05 1, 430.00 2.05 1,418.84 Advertising & Marketing 14 6210 5 40.00 0.69 80.00 0.34 480.00 0.69 400.00 Office Salaries 14 6310 5 6,313.26 108.85 9,832.72 42.38 32, 140.00 46.18 22,307.28 Office Expenses 14 6311 5 138.05 2.38 344.56 1.49 1, 800.00 2.59 1,455.44 Management Fees - Ldcha 14 6320.1 5 0.00 0.00 0.00 0.00 100.00 0.14 100.00 Manager Or Superintendent 14 6330 5 (1,088.02) (18.76) 11,329.51 48.83 40, 470.00 58.15 29,140.49 Legal Expenses 14 6340 5 0.00 0.00 0.00 0.00 100.00 0.14 100.00 Auditing Expenses 14 6350 5 0.00 0.00 0.00 0.00 690.00 0.99 690.00 Bookkeeping Fees/accounti 14 6351 5 105.00 1.81 315.00 1.36 1, 260.00 1.81 945.00 Bad Debts 14 6370 5 0.00 0.00 0.00 0.00 700.00 1.01 700.00 Miscellaneous Administrat 14 6390 5 270.58 4.67 1,143.46 4.93 5, 560.00 7.99 4,416.54 Longevity Payment 14 6391 5 0.00 0.00 0.00 0.00 930.00 1.34 930.00 Electricity 14 6450 5 792.44 13.66 2,444.29 10.54 10, 300.00 14.80 7,855.71 Water 14 6451 5 534.37 9.21 1,681.90 7.25 6, 300.00 9.05 4,618.10 Gas 14 6452 5 295.35 5.09 1,664.25 7.17 3, 790.00 5.45 2,125.75 Sewer 14 6453 5 1,287.54 22.20 3,862.62 16.65 16, 290.00 23.41 12,427.38 Maintenance Expenses - Pa 14 6510 5 3,275.28 56.47 12,878.98 55.51 45, 950.00 66.02 33,071.02 Maintenance Materials - S 14 6515 5 107.56 1.85 862.91 3.72 4, 000.00 5.75 3,137.09 Maintenance Contracts 14 6520 5 426.57 7.35 991.43 4.27 7, 480.00 10.75 6,488.57 Garbage And Trash Removal 14 6525 5 530.13 9.14 1,579.79 6.81 6, 490.00 9.32 4,910.21 Heating/cooling Repairs A 14 6546 5 0.00 0.00 0.00 0.00 5, 000.00 7.18 5,000.00 Extraordinary Maintenance 14 6546.1 5 0.00 0.00 1,249.05 5.38 20, 000.00 28.74 18,750.95 Replacement Reserves - Ca 14 6546.2 5 2,586.00 44.59 3,528.00 15.21 3, 780.00 5.43 252.00 Operating Reserves: Staff 14 6546.3 5 270.06 4.66 283.06 1.22 1, 640.00 2.36 1,356.94 Property And Liability In 14 6720 5 863.74 14.89 3,454.96 14.89 10, 230.00 14.70 6,775.04 Fidelity Bond Insurance 14 6721 5 0.00 0.00 0.00 0.00 220.00 0.32 220.00 Workmen's Compensation 14 6722 5 293.08 5.05 1,172.32 5.05 3, 020.00 4.34 1,847.68 Medical Insurance & Other 14 6723 5 1,824.50 31.46 7,963.05 34.32 24, 890.00 35.76 16,926.95 Health Insurance Employee 14 6723.1 5 0.00 0.00 0.00 0.00 160.00 0.23 160.00 Insurance - General Liabi 14 6724 5 7.78 0.13 31.12 0.13 0.00 0.00 (31.12) Insurance - Auto 14 6725 5 65.16 1.12 260.64 1.12 670.00 0.96 409.36 Resident Programming/acti 14 6900 5 183.00 3.16 272.94 1.18 2, 610.00 3.75 2,337.06 Total Operating Expense: 14 19,121.43 329.68 67,237.72 289.82 258, 480.00 371.38 191,242.28

Net Profit: 14 (15,948.46) (274.97) (77,837.05) (335.50) (174, 800.00) (251.15) (96,962.95) --------------------------------------------- --------------------------------------------------- -----------------------------


Sta tement of Operating Receipts and Expenditures Page B- 2 Lawrence Housing Authority-Clinton Place PHA: 14 Projects: ALL Period Ending: 04/30/2017 Fiscal Year Ending: 12/31/2017 No. of Units: 58 No. of U/M Avail. 232 & 696

-------Current------- --------Y-T-D-------- ------- Budget-------- Budget Account Amount P.U.M. Amount P.U.M. Amo unt P.U.M. Status ============================================= =================================================== =============================

PREPARED WITHOUT AUDIT

--------------------------------------------- --------------------------------------------------- -----------------------------



May 22, 2017

AGENDA ITEM 4C: Receive April 2017 Section 8/VASH Program Report BACKGROUND: The LDCHA Section 8 MTW program consists of 732 Section 8 Tenant Based Rental Assistance (TBRA) units. Congress passed a budget on May 4th (after three continuing resolutions). However, the Section 8 MTW final renewal funding allocation has not yet been determined. We expect it could be early July before we know the final allocation level. HUD has funded PHA’s at a 95% proration of 2016 funding levels. For LDCHA’s HCV Program this preliminary estimated amount is $4,278,507. The estimated preliminary renewal funding is based on a formula using 2016 Per Unit Cost’s (PUC) of $573.99 multiplied by 2016’s inflation factor (1.00) = $573.99 X 732 unit’s X 12 months = $5,041,928 further reduced at a proration level of 95% or $4,789,832 less the embedded admin fee of $511,323 or $4,278,507 for CY 2017. Staff will prepare the Calendar Year 2017 budget revision for Section 8 as soon as HUD announces final funding levels. Historically, the agency had an embedded admin fee in its HCV block grant until CY 2016 when HUD began to break this out separately. The embedded admin fee in CY 2016 was $538,235. The embedded admin fee for CY 2017 (is based on CY 2016 funding levels or $538,235) further reduced at a 95% proration level or $511,323. The embedded admin fee funding is also the preliminary estimate and will be revised once HUD announces the final level for these fees. LDCHA also has three increments of VASH vouchers known as VASH 1 with 20 units, VASH 2 with 10 units and VASH 3 with 15 units. After the initial year, renewal is based on actual leasing of available vouchers based on Voucher Management Systems (VMS) prior year reported HAP costs. For 2016, this was $220,084. However, for the purpose of the 2017 budget calculation, VASH estimates for CY 2017 are $209,080. Again, this is the early estimate for VASH and this too will be part of the 2017 budget revision. Monthly disbursement of funds is in accordance with cash management procedures. Cash Management disburses funds on a basis of need, as opposed to funding years prior to 2012, disbursed at 1/12 of its annual budget authority renewal allocation. Additionally, because of cash management PHA’S are no longer able to build up significant amount of program reserves and hold them at the PHA level but held at the HUD level. Section 8 administrative expenses (are run through the Public Housing Program) and reimbursed by the Section 8 program at the end of the month. CURRENT ISSUE: The Section 8 MTW program is at 33% through the budget year with total revenues of $1,460,198 and total operating expenses of $1,716,881 (with any shortfall funding to be made up through the cash management process).


May 22, 2017

Operating Income Total operating revenues are running 4% under budget projections at 29% or $1,460,198. Most of this decrease is in HUD operating subsidy. This is because HUD funding disbursements are monthly in accordance with cash management resulting in the program only receiving a partial month disbursement for January and full month disbursements for February through April totaling $1,440,284. Operating Expenses On the expense side, total administrative expenses are running slightly over budget projections at 34% or $245,209. Administrative Training (4140) shows as running 10% over budget projections at 43%. This is because of a onetime staff registration fee for Leadership Lawrence (paid at the beginning of FY 2017). There is no additional significant training expense anticipated for the remainder of CY 2017. We expect this account should come in line as we continue throughout the budget year. Travel (4150) also shows as running 10% over budget projections at 43%. This is because of the Executive Director’s travel costs last month to attend the 2017 Annual MTW Conference in Washington, DC. Total Housing Assistance Payments (HAP) for both MTW and VASH is running slightly above budget projections at 34% or $1,412,156. The program has 3,055 Section 8/VASH units under lease as of the last day of April, 2017. This is an aggregate of 726 units under lease for Section 8 MTW and 38 for VASH. The program has spent a total of $34,846 as of April under the approved 2017 MTW LDCHA Vouchers as follows: $3,666 under the Douglas County Re-Entry Program; $21,419 under the Safe Housing Program and $9,761 under the Next Step Program. The program has spent a total of $24,670 as of April under the approved 2017 MTW Continued Activities as follows: $17,790 under the Expanded RSO & Homeownership program (RSE); $2,934 under the Homeless to Housed program (EHC) and $3,946 under the Douglas County Housing Inc (Youth) program (DCHI). These are MTW approved activities charged to the Section 8 MTW Program. Recall in March, two program participants successfully complete all requirements under the Homeownership Program. Both program participants received a $3,000 match eligibility for the down payment cost towards the purchase of their first home. Operating Surplus/(Deficit) LDCHA began to receive CY 2017 Budget Authority renewal disbursements in February and a partial disbursement in January. Recall, in CY 2016 HUD began transitioning PHA’S unspent cash reserve balances (as of 03/31/16 that originated from HAP funds). For LDCHA, this amount was approximately $2,369,400 and the transition began with the August 2016 Budget Authority renewal disbursement. LDCHA was required to spend down agency held historical reserves until it reached this amount of approximately $2.4 million. As of 12/31/16, HUD transitioned back approximately $2,173,371 (in agency held historical reserves) leaving an estimated balance of $232,029 (in historical held reserves to be transitioned back in CY 2017).


May 22, 2017

LDCHA has been disbursed a total of $1,452,506 of estimated CY 2017 Budget Authority (which includes VASH Admin Fees). Based on VMS reporting total expenses (HAP, Administrative and MTW approved LDCHA Vouchers and Activities for CY 2017) equals $1,716,881 leaving a shortfall of $264,375. The reserves to be transitioned back from HUD in CY 2017 totaling $232,029 will cover most of this shortfall funding leaving a balance due from HUD of $32,346. This has been sent to our Financial Analyst and we are waiting approval. There are three factors that are holding this payment up from being approved. The first; HUD began verification of CY 2016 Cash Management in VMS last week. The second; HUD is in the process of balancing reserve transition amounts back to HUD (for reserves transitioned back in CY 2016 as well as those remaining to be transitioned back in CY 2017). The third and final is HUD now requires PHA’s to report revenue and expense estimates for the next month following the period ending for shortfall funding requests. For the May reporting period, revenue and expense estimates show the program will receive approximately $17,508 more in operating income over expenses. As of the April reporting period, the Section 8 MTW/VASH program has earned an estimated total of $1,724,573 in operating income (adjusted for the shortfall funding through April of $264,375). This includes VASH admin fees, interest income, fraud repayments as well as administrative fees on HOME TBRA and HAP Portability. Total expenses show a total of $1,716,881. When looking at this the Section 8 HCV/VASH program has an operating surplus of $7,692. This operating surplus is the current year reserve held at the PHA level. When calculating program reserves held at the HUD level (in accordance with cash management) HUD estimated obligation eligibility for four months (Jan through April 2017 Budget Authority) total $1,666,303 and disbursed $1,704,659 (adjusted for the shortfall funding of $264,375) leaving a difference of $38,356. This $38,356 is the amount of 2017 HUD held program reserves (from the 2017 HCV and VASH Budget Authority). For LDCHA to gain access to these funds we must justify expenditures through cash management. BOARD ACTION: Receive report.

LDCHA SECTION 8 MTW/VASH - APRIL 2017 PROGRAM REPORT (33% OF THE BUDGET YEAR)

OPERATING INCOME;

ACCOUNT NAME A/C # CURRENT YEAR-TO-DATE BUDGET BUDGET STATUS % OF BUDGET YEAR

approved 02/27/17

2017 HUD MTW Budget Authority (732 Units) 2210 364,704.00 1,206,385.00 4,278,507.00 3,072,122.00 28%

2017 HUD VASH Budget Authority (45 Units) 2210 21,585.00 64,544.00 209,080.00 144,536.00 31%

2017 HUD MTW Embedded Admin Fees 3112 42,339.00 169,355.00 511,323.00 341,968.00 33%

HUD VASH Admin Fees Earned 3112 7,031.00 12,222.00 9,000.00 -3,222.00 136%

Interest Earned on Operating Reserves 3300 575.09 2,318.94 6,700.00 4,381.06 35%

Fraud Repayments 3300.1 150.00 1,278.95 1,500.00 221.05 85%

Administrative Fees Earned for Portability 3300.P 112.96 214.60 500.00 285.40 43%

Administrative Fees Earned for HOME TBRA 3300.3 1,200.00 3,880.00 13,480.00 9,600.00 29%

HUD Homeownership Fees 3300.4 0.00 0.00 0.00 0.00 0%

Insurance Dividend Returns 3300.5 0.00 0.00 0.00 0.00 0%

TOTAL OPERATING RECEIPTS 437,697.05 1,460,198.49 5,030,090.00 3,569,891.51 29%

OPERATING EXPENDITURES:

ADMINISTRATIVE EXPENSES

Administrative Salaries 4110 36,990.79 163,766.61 501,130.00 337,363.39 33%

Experience Awards 4110.3 0.00 0.00 1,840.00 1,840.00 0%

CA - Administrative Salaries 4110.75 0.00 0.00 0.00 0.00 0%

Legal Expense 4130 0.00 0.00 500.00 500.00 0%

Training 4140 164.34 1,193.94 2,750.00 1,556.06 43%

Travel 4150 605.59 2,816.78 6,500.00 3,683.22 43%

Accounting Fees 4170 930.00 3,732.00 12,240.00 8,508.00 30%

Audit Fees 4171 111.00 333.00 8,490.00 8,157.00 4%

Employee Benefits - Administration 4182 7,946.39 37,014.74 108,450.00 71,435.26 34%

Employee Benefits - Experience Awards 4182.3 0.00 0.00 320.00 320.00 0%

Office Supplies 4190.01 1,104.88 2,747.11 8,500.00 5,752.89 32%

Publications 4190.11 0.00 0.00 0.00 0.00 0%

Membership Dues & Fees 4190.12 887.31 1,333.71 1,490.00 156.29 90%

Telephone 4190.13 347.90 1,396.57 4,000.00 2,603.43 35%

Postage and Miscellaneous Sundry 4190.18 1,691.52 5,830.66 17,500.00 11,669.34 33%

Administrative Contracts 4190.19 1,352.45 4,526.92 19,270.00 14,743.08 23%

Maintenance & Operations 4400 0.00 11.56 120.00 108.44 10%

Workers Compensation Insurance 1211 19,582.92 19,582.92 21,100.00 1,517.08 93%

Administrative Fees Paid for Portability 4590.P 244.11 760.94 3,000.00 2,239.06 25%

Depreciation Expense 4800 0.00 0.00 0.00 0.00 0%

Replacements (Expendable) 7520.93 0.00 0.00 0.00 0.00 0%

Betterments & Additions - Exp Equipment 7540.93 0.00 161.19 13,270.00 13,108.81 1%

TOTAL ADMINISTRATIVE EXPENSES 71,959.20 245,208.65 730,470.00 485,261.35 34%

HOUSING ASSISTANCE PAYMENTS

Housing Assistance Payments (732 Units) 4715 338,095.00 1,335,092.30 3,965,000.00 2,629,907.70 34%

Housing Assistance Payments (45 Units) 4715 19,046.00 77,064.00 225,330.00 148,266.00 34%

TOTAL HOUSING ASSISTANCE PAYMENTS 357,141.00 1,412,156.30 4,190,330.00 2,778,173.70 34%

2017 MTW HUD APPROVED LDCHA VOUCHERS

Douglas County Re-Entry Program DRP 2,134.00 3,666.00 8,000.00 4,334.00 46%

Safe Housing Program DV 5,149.00 21,419.00 51,760.00 30,341.00 41%

Next Step Program NS 3,443.00 9,761.00 28,000.00 18,239.00 35%

TOTAL LDCHA VOUCHERS 10,726.00 34,846.00 87,760.00 52,914.00 40%

2017 MTW HUD APPROVED CONTINUED & NEW ACTIVITIES

Expanded RSO & Homeownership RSE 2,309.67 17,789.99 65,000.00 47,210.01 27%

Homeless To Housed EHC 394.76 2,933.56 5,000.00 2,066.44 59%

Douglas County Housing Inc DCHI 1,277.12 3,946.43 30,000.00 26,053.57 13%

TOTAL MTW ACTIVITIES 3,981.55 24,669.98 100,000.00 75,330.02 25%

TOTAL ALL EXPENSES 443,807.75 1,716,880.93 5,108,560.00 3,391,679.07 34%

OPERATING SURPLUS/(DEFICIT) -6,110.70 -256,682.44 -78,470.00 178,212.44

TR FR MTW HUD or Agency held Reserves for LDCHA Vouchers 264,374.93 87,760.00

OPERATING SURPLUS/(DEFICIT) 7,692.49 9,290.00

VMS PMC's through March uploaded to VMS on 05/15/17

April VMS uploaded on 05/15/17

January Disbursements (MTW and Vash Admin Fees) were received on 12/31/16


May 22, 2017

AGENDA ITEM 4D: Cancel the Regular July Board Meeting. CURRENT ISSUE: It has become the Board’s practice not to meet in July unless an urgent matter warrants. The 2017 July meeting is scheduled for July 24. At this time there are no known urgent matters and no other routine matters requiring Board action that cannot be deferred until the August meeting which is scheduled for August 28. BOARD ACTION: Approve cancelling the July 24, 2017 meeting.


May 22, 2017

AGENDA ITEM 5A Executive Director’s Report

Funding Public Housing Operating Funds Appropriators cut $100 million from the Public Housing Operating Fund partly because HUD asserts increased rental revenues and declining utility costs. According to HUD’s most recent public estimates, the current funding proration is somewhere between 85 - 92.9 % of PHAs’ anticipated formula eligibility. Although the omnibus provides less fund-ing for the Operating Fund than 2016, the proration is higher due to a decrease in formula eligibility. This decrease was caused by high formula income inflation factors and utility expense level deflation. HUD is applying inflation factors between 6 - 8% for 2017 formula (rental) income. This is significantly higher than HUD’s inflation factor for any other year, and HUD is also applying a 7.01% deflation factor for the utility expense level. This should not impact the LDCHA because our utility expense is frozen due to the Energy Perfor-mance Contract. Section 8 Funding Vouchers renewals were funded at $18.355 billion or at an approximate 97% funding proration. The LDCHA does not know what our final funding will be yet for 2017. When that is received a revised Section 8 budget will be submitted to the Board for approval.

Exemption from Asset Management As in past years, the omnibus contains language exempting PHAs that own and operate 400 or fewer public housing units from asset management requirements in connection with the Operating Fund rule. Congress has elected to continue this exemption each year since the language was first introduced. The LDCHA will continue to use this exemption. New Director of Housing Assistance Hired Nickie Daneke accepted the position and will start on June 6, 2017. She comes with fifteen years of experience in Lawrence as the Director of Stabilization for Catholic Char-ities of Northeast Kansas, and has experience working with various HUD programs. Executive Director Appointed to MTW Expansion Advisory Group HUD Secretary, Dr. Ben Carson, met with the 39 MTW Executive Directors at the MTW Conference in Washington in April 2017. The Executive Directors offered to advise Sec-retary Carson on MTW issues. I am very pleased to announce that I am one of the six Executive Directors selected to advise Secretary Carson. We will meet periodically with the Secretary. The first meeting is June 13 in Washington, D.C. The Advisory Group is:

Rick Gentry, San Diego Housing Commission Andrew Lofton, Seattle Housing Authority Greg Russ, Minneapolis Housing Authority Vivian Bryant, Orlando Housing Authority


May 22, 2017

Fulton Meachem, Charlotte Housing Authority and Shannon Oury, Lawrence/Douglas County, KS

The six advisory group members were selected to reflect great diversity within the indus-try. We also represent communities and agencies of various size and are dispersed across the country. Non-Dwelling Units In 2011 LDCHA applied for and received offline approval and full operating subsidy for non-dwelling special use status for six units: 159 & 160 (Day Care); 186 & 187 (the Res-ident Services Office), and for units 149 & 150 (the Huppee Community Facility). Prior to 2011 LDCHA had offline approval but did not receive subsidy for the Huppee Community Facility. This approval expired on June 12, 2014, it was renewed and extended to June of 2017. In April the LDCHA reapplied for an extension of the special unit status for all six units. The extension was granted indefinitely and all six units will continue to receive full operating subsidy. Notice to Terminate Lease from DCCDA for Childcare Facility at Edgewood In 2013 the LDCHA entered into a lease with DCCDA for Units 159 & 160 to operate a childcare center at Edgewood rent free in exchange for serving a minimum of sixteen children from LDCHA participating households. The LDCHA has been notified that DCCDA intends to lease a different property in the area so the pre-school can be ex-panded. We are not yet certain of the timing, because the new facility will have to be licensed prior to the program moving. There are two options for the property; 1) a Re-quest for Proposal can be issued for a new provider or 2) the units can be converted back to dwelling units. Staff is contacting several community partners who might be able to use the space for child care services to gauge their interest. Commissioner Information

Last month a Commissioner received a phone call at home from a participant who wanted to register a complaint. Several Commissioners currently have their phone number listed on our website, and each Commissioner’s email also has a link there. It is important for the public and participants to have access to the Board, however it is not necessary that Commissioners receive calls at home at all hours. If email addresses are provided, par-ticipants will still have adequate access without the Board having to deal with after-hours phone calls. Prior to removing the phone numbers from the website, I want to ask the Board members’ preference on the matter.

Request to Close the Office for the Summer Picnic Several years ago the Health, Safety and Wellness Committee began sponsoring a staff summer picnic on the back patio at Edgewood Homes. This year the committee would like to hold the picnic at Clinton Lake on Friday, June 30. The official picnic will be from 12:00 - 2:00 pm. Management would like the Board’s permission to close the offices at 12:00pm and release the staff at 2:00 pm. The plan is that most staff will stay at the lake for the afternoon, but that would not be required.


May 22, 2017

AGENDA ITEM 5B: Discuss Preliminary Objectives for the 2018 MTW Annual Plan and the Use of MTW Funds. BACKGROUND: Every year the agency is required to submit an annual plan to HUD detailing the activities and planned uses of funds for the next year. The 2018 MTW Annual Plan is due to HUD on October 17, 2017. Staff is preparing for the Plan including convening the LDCHA’s Resident Advisory Council on June 15. Staff proposes continuing all existing MTW initiatives as identified in Attach-ment 1 except as noted below. Modification:

Activity 13-1 will be drafted to include the proposed crisis center housing units. Possible New Initiatives or MTW Fund Uses:

Create an alternate Project-Based voucher (PBV) program to eliminate the requirement for a competitive process for the allocation of PBVs and permit direct allocation to units owned directly or indirectly by LDCHA. Additionally, the alternate PBV program will also eliminate the caps on PBV allocations to a single development. This activity can be limited to projects that serve special populations.

Activity on Hold:

The agency is proposing placing on hold Activity 14-1 – Biennial Housing Quality Stand-ards. This activity is not realizing the savings anticipated because our housing software system does not have the ability to track this activity. It is actually requiring more work because the eligible properties have to be manually identified.

The timeframe that the agency must follow in preparing the Plan is as follows: June 15, 2017 - Resident Advisory Council Meeting

June 26, 2017 - Take Draft of 2018 MTW Plan and Admin/ACOP amendments to Board for ap-proval to post for public comment

July 31, 2017 - Draft MTW Annual Plan and Admin/ACOP amendments distributed to public for review, opening of 30 day comment period

Aug. 28, 2017 - Board reviews and receives comments on Draft MTW Annual Plan

Aug. 31, 2017 - Public Hearing on 2018 MTW Annual Plan and amendments to Admin/ACOP

Sept. 25, 2017 - Board approves final 2018 MTW Annual Plan and amendments to Admin/ACOP

Oct. 17, 2017 - 2018 MTW Annual Plan due to HUD via electronic submission


May 22, 2017

BOARD ACTION: Discuss possible new changes to MTW activities, and planned uses of funds for inclusion in the 2018 MTW Annual Plan.


May 22, 2017

Attachment 1

Ongoing Initiatives for the 2018 MTW Plan

Activity No.

Ongoing Initiatives Description Fiscal Year

Implemented

Objective 1: Reduce cost and achieve greater cost effectiveness

17-1

Exclude asset income from income calcula-tions and allow self-cer-tification of assets

Exclude asset income from income calcu-lations for households with assets of $20,000 or less and allow self-certification of assets valued at less than $20,000 af-ter initial certification.

2017

14-1

Create a Biennial Housing Quality Stand-ards (HQS) Inspection process

Biennial inspection for existing Housing Choice Voucher (HCV) properties units that have a record of good property maintenance and have passed HQS on the first inspection for two consecutive annual inspections.

2014

14-2 Create a Landlord On-Site Self-Certification for minor repairs

Landlord Self-Certification of repairs where all deficiencies are minor non-life-threatening, non-safety-hazard deficien-cies.

2014

14-3

Change the effective dates of variables af-fecting rent calculations to January 1

Change the effective dates for changes in Fair Market Rent / Voucher Payment Standard and Utility Allowance, etc., to correspond with the beginning of LDCHA's fiscal year, January 1.

2014

10-1 Combined 12-1 / 10-1

Biennial recertification for elderly and disabled Section 8 and public housing households

Conduct biennial recertification for elderly and disabled Section 8 and public hous-ing households.

2012 & 2010

09-1 Single fund budget with full flexibility

The LDCHA combined its public housing operating and Capital fund subsidies and HCV assistance into a single authority source.

2009

09-6 Revised definition of countable income

Excluded earned income of adult children between the ages of 18 and 21.

2009

09-6.1 Revised definition of countable income

Counted income under previously disal-lowed 12:12:48 regulation.

2009

99-1 Combined public and Section 8 TBRA pro-grams and operations

Combined public housing family housing units and Section 8 TBRA into one pro-gram called General Housing with one waiting list and single organizational pro-gram structure.

1999


May 22, 2017

Activity No.

Ongoing Initiatives Description Fiscal Year

Implemented

Objective 2: Increase work and self-sufficiency among residents

11-1 Provide financial assis-tance for vehicle repair

To provide up to $500 per household for vehicle repair to assist MTW households to obtain or retain employment, employ-ment training, or attend post-secondary education.

2011

11-2

Partner with Douglas County Housing Incor-porated (DCHI), to cre-ate year round Full Cir-cle Youth Program

Use DCHI, an affiliated nonprofit, to pur-sue private and public foundation funding that is restricted to nonprofit organizations in order to expand program opportunities and activities for LDCHA youth, particu-larly the youth of parents participating in the MTW program.

2011

10-2 Expand employment related services to MTW households

Provide funding for technical training, ed-ucation, certifications, employment coun-seling, child care, and youth services to permit heads of household to seek, obtain and retain employment.

2010

09-2 Mandatory Orientation Required mandatory orientation program for all new residents.

2009

99-2 Alternative rent struc-ture

Implemented alternative rent structure with minimum and maximum annual rents applied to all non-disabled/non-elderly households.

1999

99-3 Work requirement Required all non-elderly/non-disabled adults age 50 and younger to work or be engaged in a work-related activity.

1999

Objective 3: Increase housing choices for low-income families and individuals

16-1 Safe Housing Program (SHP)

Rent Assistance for Victims of Domestic Violence

2016

16-2 Next Step Vouchers (NSV)

Rent Assistance for Youth who have Aged Out of Foster Care

2016

13-1 Affordable Housing Ac-quisition and Develop-ment Fund

Use MTW funds to support affordable housing acquisition and development to increase the supply of quality rental hous-ing that is available to low income resi-dents in Lawrence and Douglas County Kansas.

2013

09-5 Homeownership matching grant

Provided up to $3000 matching grant for MTW households that purchase a home.

2009


May 22, 2017

AGENDA ITEM 5C: Suggest Recommendations to Fill Vacancy Created by the Expiration of Commissioner Hack’s Term. BACKGROUND: Per the By-laws, a Commissioner may serve a maximum of two terms. Sue Hack’s sec-ond term expires June 30. She is a Douglas County appointee. The Board needs to identify an individual with related knowledge and skills in the pro-gram and functional areas performed by the LDCHA so that the Board collectively has the competencies to evaluate and assess agency and staff performance, and approve informed housing policy that affects not only the agency and its residents, but the com-munity as well. Board members typically identify and sometimes contact individuals that they believe will be a good choice. Those individuals are discussed at a Board meeting and the Board determines who it wants to give final consideration to. At that point the Executive Director contacts the individuals to explain the agency, role and responsibilities of Board members and to ascertain if the individual is willing to have their name recommended to the appointing body for possible appointment. CURRENT ISSUE: At this writing no individuals have been identified. BOARD ACTION: Recommend names as possible replacement for Commissioner Hack.


May 22, 2017

AGENDA ITEM 5D: Discuss Audit Contract CURRENT ISSUE: See attached Memorandum. BOARD ACTION: Approve the Executive Director and the Board Chair to execute the audit contract with Niewedde & Wiens if appropriate.

MEMORANDUM TO: LDCHA Board of Commissioners FROM: Shannon Oury, Executive Director and Contracting Officer DATE: May 22, 2017 RE: Audit contract Noncompetitive Proposal In November of 2015 the Lawrence-Douglas County Housing Authority (LDCHA) issued a RFP for Auditing Services. Staff reached out to other MTW agencies for suggestions on possible auditors and sent the RFP to eight auditing firms. The LDCHA received only one positive response, from Niewedde & Wiens (N&W), and a contract for auditing ser-vices was executed with them. The agency has worked with N&W for the past two audits. Staff has learned a great deal from N&W and has improved processes and internal controls procedures due to working with them. Due to LDCHA’s MTW status it is difficult to locate an auditor that understands the MTW program and flexibilities. Further, because the LDCHA is one of the four smallest MTW agencies, the auditors who work with the large MTW agencies are not motivated to secure our business. Finally, N&W has agreed to enter into a new contract at the same price of $13,750 for the 2017, 2018 and 2019 audits. This price is very reasonable. It is my opinion that the factors necessary to utilize a noncompetitive proposal for this contract exist pursuant to 4.5 of the LDCHA Procurement Policy, Resolution 735 as amended. Specifically, because of our MTW status this service is not available from other audit sources, and because after a solicitation 18 months ago and receiving only one positive response, competition is determined inadequate. Staff recommends execution of the contract with Niewedde & Wiens.


May 22, 2017

AGENDA ITEM 5E: Determine Parameters of New Smoke Free Policy BACKGROUND: As previously discussed, HUD recently adopted a new rule requiring all public housing authorities to implement a “smoke free” policy banning the use of prohib-ited tobacco products in all units, common areas and administrative offices. The policy must also extend to all outdoor areas up to 25 feet from all buildings, not just the entrances. Staff met with tenants at Babcock Place and at Edgewood Homes. Comments received are attached. The LDCHA’s current policy Resolution 2010-20 will need be amended to extend the distance requirement from 10 to 25 feet and prohibit Babcock Place residents from smoking on their balconies. CURRENT ISSUE: This HUD mandated policy must ban smoking within 25 feet of all buildings on all LDCHA public housing property after July 30, 2018. Additionally, the Board needs to determine the following voluntary parameters of a HUD-mandated smoke-free policy.

Determine whether Electronic Nicotine Delivery Systems (ENDS) will also be prohibited.

Staff recommends not permitting ENDS inside the buildings due to the likelihood that they will eventually also be banned once the research on second hand vapor is completed.

Determine applicability to other properties.

Clinton Place

Peterson Acres II

1725 New Hampshire

826 Oak


May 22, 2017

Staff recommend leaving the current policy in place for these properties, except Peterson Acres II. Because Peterson Acres II is directly adjacent to Peterson Acres I, staff recommend that the same policy be in place for both properties.

Evaluate the option to make the entire campus at each development smoke-free.

Staff recommends not adopting this provision because a significant number of pub-lic housing participants smoke and forcing tenants off the property is unnecessarily onerous.

Implement new Policy on January 1 or July 30, 2018. Staff recommends July 30, 2018. Staff will take the parameters selected by the Board and amend Resolution 2010-18 to add the new smoke-free requirements and create detailed amendments to the Admin/ACOP Plan. These drafts will be provided to the Resident Advisory Council and the public for an opportunity to comment on the draft policy. The Board will then adopt a final policy at the September meeting. BOARD ACTION: Determine new Smoke-free policy parameters as appropriate for the staff to draft a new policy and amend the Admin/ACOP Plan.

LAWRENCE-DOUGLAS COUNTY HOUSING AUTHORITY

BOARD OF COMMISSIONERS MEETING

May 22, 2017

PAGE 1 OF 3

Notes from Tenant Meetings

Babcock Place & Peterson Acres

Security and Smoking Policy Tenant Meeting

April 13, 2017

Staff Present: Shannon Oury, Executive Director; Lori Dalrymple, Senior Housing Director;

Heather Odell, Resident Services Director; Haleigh Koca, Senior Services Coordinator; Jerrad

Lewis, Program & Property Director; Natalie Mulryan, Management Specialist; Suzanne Kerich,

Capital Fund Coordinator

Shannon & Lori gave a summary of Mil-Spec security services; Haleigh & Suzanne passed

out Mil-Spec security magnets.

Shannon gave a summary of the HUD smoking policy.

QUESTIONS & COMMENTS:

Charlie Miller: Will e-cigarettes allowed?

Barbara Glenn: E-cigarettes have vapor, no smoke.

Roy Campbell: What research has been completed on e-cigarettes?

Shannon Oury: The Board will decide whether to allow e-cigarettes or not.

Prudy Sieg: Will there be a designated outside space for smoking?

Shannon Oury: There is no safe space for smoking at Edgewood and Peterson Acres. KU stu-

dents designed a smoking space on the south side of Babcock, but it was less than 25 feet away

from the building, so it would not comply with the HUD smoking policy.

Barbara Glenn: I propose that we have a gazebo for smoking next to the garden.

Prudy Sieg: It is unsafe at night, would the gazebo have a locked fence, and can we carry mace?

Dominic Palmero: Tenants smoke inside their apartments; we can smell it late at night.

Keith Day: Are you sure that it is smoke that you smell and not cooking smells?

Dominic Palmero: I told Sandy that you could wipe down mirrors, to find out if someone is smoking

inside, but Sandy said that would be an invasion of privacy. I also reported that I could smell

smoke in the stairwells, but I was accused of smoking in the stairwells.



May 22, 2017

PAGE 2 OF 3

Charlotte Wilks: Will smoking be stopped in tenant’s apartments?

Shannon Oury: We have a lease enforcement policy.

Linda Major: Does maintenance staff report when they see evidence of smoking?

Shannon Oury: All staff are aware of the smoking policy and report violations.

Pam Hadjisavalos: Second hand smoke is harmful; will there be no smoking in apartments and

balconies?

Shannon Oury: That is correct.

William Collier: We tolerate barking dogs, because we know dogs give our neighbors pleasure;

what else will not to be allowed here?

Virginia McClelland: Smokers are treated like second-hand citizens.

Janilee Kenney: This is a dictatorship.

Laverne Redford: Smoking is a health hazard, my neighbor smoked and I was often sick.

Virginia Day: What is the time frame for the HUD smoking policy?

Shannon Oury: The Board will review the HUD smoking policy, and the Admin/ACOP and lease

will be revised; the Resident Advisory Committee will review it. Tenants are welcome to par-

ticipate in the RAC and send their comments to the board. There will be a public notice and

Board meeting before it goes into effect either January 1 or June 30, 2018.

Yvonne Palmero: I hate to admit that I smoke, how will I kick the habit?

Shannon Oury: We will collaborate with agencies to help you quit smoking; Haleigh will be here

to help you kick the habit.

Keith Day: What do you have up front?

Shannon Oury: We have property maps with the 25 radius marked for everyone to look at.

Glenda Davis: Will smoking be allowed 25-feet away from the building?

Shannon Oury: That is the Board’s decision; they may decide to have smoke free properties.

Barbara Glenn: What about the smoking hut at Clinton Place?



May 22, 2017

PAGE 3 OF 3

Shannon Oury: The HUD smoking policy applies to public housing properties. Clinton Place is a

multi-family property.

Barbara Glenn: I will drive over the Clinton Place to smoke.

Rodney Sloan: Smoking on the balconies is a nuisance, because the smoke drifts into neighbor’s

apartments, especially this time of year, because balcony doors need to be open for air-circu-

lation. The HVAC system is a whole other problem that I will not discuss now. Will smoking

on the balconies be penalized in the meantime?

Shannon Oury: Neighbors need to work out a solution in the meantime. There will not be an

interim smoking rule. We enforce all policies. However, staff is not in the building 24/7.

Please send any complaints, comments or questions to Lori Dalrymple.

Edgewood Homes & Scattered Sites

Smoking Policy Tenant Meeting

May 3, 2017

Staff Present: Shannon Oury, Executive Director, and Jerrad Lewis, Director of Program and

Property Management

Tenants Present: Pat Benabe,1600 Haskell #106; Lisa Logan, 1600 Haskell #213; Alma Rodri-

guez, 528 Mississippi

The policy was discussed in entirety and the potential impact it could potentially have on tenants and staff. The few comments made were not in favor of the policy, in particular to elderly and handicapped tenant’s that would have to comply with the policy. The remaining comments were geared toward enforcement of the policy. Tenants were informed that the approach would be graduated enforcement and the intent is not to evict tenants. LDCHA staff will work closely with tenant and RSO staff and services to be successful.


May 22, 2017

AGENDA ITEM 5F: Discuss Use of Public Housing Reserves for Boiler Upgrade at Babcock Place BACKGROUND: The original electric boilers installed during construction of Babcock Place were con-verted to storage tanks and 17 TRIAD gas-fired boilers installed in 1979, when there was an energy crunch and electric costs were extremely high. Boilers #1-4 provide domestic hot-water. Boilers #5-17 provide pre-heat and space heating (see attached). Boiler #1 was replaced in 1994 and Boiler #3 was replaced in 1996. Boiler #1 went out a couple of weeks ago and Boiler # 3 went out a couple of years ago. A consultant with US Engineering speculates that the two newer boilers failed because they are doing the majority of the domestic hot-water work. Currently, there are 13 TRIAD boilers that are 38 years old, 1 TRIAD boiler that is 23 years old, 2 TRIAD boilers are 22 years old, and 1 TRIAD boiler that is 21 years old at Babcock. The expected useful life of a gas-fired boiler is 25 years. Siemens con-sidered replacing the boilers as part of the energy performance contract. However, the energy savings would not pay back the cost of new boilers, so they were dropped from the contract in 2010.

CURRENT ISSUE: We are currently replacing 4 domestic hot-water boilers with 2 more efficient domestic hot-water heaters with the 2015 and 2016 capital fund grants for $61,145. Staff believes it is necessary to replace the remaining 13 outdated boilers with more efficient boilers before these boilers fail. This project is estimated to cost $500,000 and will require the use of Public Housing reserve because there are insufficient funds in the Capital Fund grants to do this project and to sustain ongoing property mainte-nance. If approved the 2017 Public Housing Budget will be amended to reflect this expense and the transfer from reserves. The Public Housing reserve account contains $2.3 million in unobligated funds. These funds can only be used to support existing public housing activities, unless a specific activity is proposed and approved in a MTW plan. The LDCHA has always kept these funds segregated for use to maintain the public housing property. BOARD ACTION: Approve the use of Public Housing reserves to replace the Babcock boilers and au-thorize the Executive Director to solicit bids if appropriate.

Boiler # Manufacturer Year Built Function Certificate # Inspected By Inspection Date Expiration Date

1 Triad Boiler 1994 domestic hot water KS34210H Travelers 9/1/2016 9/1/2017




5 Triad Boiler 1979 space heating KS18760H Travelers 9/1/2016 9/1/2017








13 Triad Boiler 1979 space heating & glycol KS18772H Travelers 9/1/2016 9/1/2017



16 Triad Boiler 1995 glycol only KS34942H Travelers 9/1/2016 9/1/2017

17 Triad Boiler 1995 glycol only KS34943H Travelers 9/1/2016 9/1/2017

Babcock hot-water boiler replacement costs

2015 capital funds

vendor description costs

Associated Equipment water heaters $27,814

Associated Equipment heat timer-temper valve $1,931

Rose & Associates engineering services $4,900

total: $34,645

2016 capital funds

vendor description est. costs

US Engineering plumbing materials & labor $22,500

American Legacy electrical materials & labor $2,500

Industrial Roofing roofing materials & labor $1,500

total: $26,500

2015 & 2016 capital funds: $61,145

board of commissioners meeting · james dunn requested that items 4d and 4f be removed from the...

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