MINUTES

GREEN BAY HOUSING AUTHORITY

Thursday, December 18, 2008

1424 Admiral Court, Second Floor Reading Room

Green Bay, Wisconsin 54303

10:30 AM

 

 

MEMBERS PRESENT:  W. Van Ess, Chair; D. Dolan-Wallace, Vice-Chair; W. Vande Castle; D. Piton; H. Genunzio

 

OTHERS PRESENT:   R. Strong, K. Pamperin, A. Monday, M. Barron

 

APPROVAL OF MINUTES:

 

A motion was made by D. Piton, seconded by W. Vande Castle, and carried to approve the minutes of the November 13, 2008 meeting as presented.

 

COMMUNICATIONS:

 

1.    Notice of Housing Authority Insurance Group Dividends for no loss for 2007, $3670.93 from HAPI property insurance and $1,942.09 from HARRG Commercial Liability insurance. 

 

K. Pamperin reported the Authority has received a dividend check for no loss for FY 2007, in the amount of $3670.93 from HAPI Property Insurance and $1,942.09 for No Loss in liability coverage from HARRG Commercial Liability Insurance. The annual dividends for no loss substantially reduce our overall insurance costs.  

 

2.    Notice that the Mayor and Common Council will recognize William A. Van Ess for his service to the Housing Authority and the Redevelopment Authority of the City of Green Bay at the December 16th Common Council Meeting.      

 

K. Pamperin reported that the Mayor and Council congratulated W. Van Ess on his 38 years of service to the Green Bay Housing Authority and ten years of service on the Redevelopment Authority of the City of Green Bay at the December 16th Common Council Meeting with a proclamation of grateful appreciation. The Commissioners and staff congratulated Bill for the recognition and his service.          

 

ELECTION OF OFFICERS:    

 

Chair W. Van Ess turned the Chair over to K. Pamperin to conduct the Election of Officers. 

 

K Pamperin asked for nominations for the office of Chair

 

D. Piton made a motion to nominate D. Dolan-Wallace for Chair and W. Vande Castle as Vice-Chair. 

 

K. Pamperin asked three times if there were any further nominations for the offices of Chair and Vice-Chair.

 

There being none, K. Pamperin stated the Chair would accept a motion to have the Secretary cast a unanimous ballot for D. Dolan-Wallace for the office of Chair and W. Vande Castle as Vice-Chair.

 

A motion was made by D. Piton, seconded by H. Genunzio and carried to have the Secretary cast a unanimous ballot for D. Dolan-Wallace for the office of Chair and W. Vande Castle for the office of Vice-Chair.

 

A motion was made by D. Piton, seconded by H. Genunzio and carried to appoint R. Strong as Secretary of the Housing Authority of the City of Green Bay.

 

 

OLD BUSINESS:

 

3.      Notification of approved Insurance Claim by HAI totaling $9904 for base bid 1 of Security Camera System replacement and $2000 for Heartland Systems Consultant fees.   

 

K. Pamperin reported he had submitted a claim to the insurance company and the claim has been approved.

 

A motion was made by D. Piton, seconded by W. Vande Castle to receive and place on file.

 

NEW BUSINESS:

 

4.      Review and approval of the 2009 Annual Agency Plan and Certifications.

 

K. Pamperin reported he has received notice from HUD that the Agency Plan template and process has changed regarding small agency annual plans.  He stated it appears the Authoity would not have to submit an annual plan just a five-year plan, which will be due at the end of 2009.  He stated in lieu of an annual plan, the Authority will need to submit the certification and specific documentation will need to be on file for public viewing and HUD monitoring. He stated the actual process will need to be researched with the certification submitted by April 17th 2009. A motion was made by D. Piton, seconded by W. Vande Castle to hold this item.

 

5.      Review and approval of Capital Improvements to be submitted to the Department of Public Works and Purchasing for specifications and bidding in 2009.

 

K. Pamperin stated on an annual basis the Department of Public Works is advised on what projects the Housing Authority will be requesting them to be involved in during the next year.  He has prepared the listing that he is aware of and included a listing of Scattered Site projects that will need to be prepared for to receive quotes by the City Purchasing Department. He stated he prepared this listing to be available for staff and his successor following his retirement.   

 

A motion was made by W. Vande Castle, seconded by D. Piton and carried to approve the capital improvement projects as listed.

 

6.      Review and approval of Objection to Receivers Motion for Declaration Relief Victory Heights LLC d/b/a as Creek Side Senior living (“Project”). 

 

K. Pamperin presented the item.  He stated the Victory Heights/CreekSide Senior Living Development financed with Housing Authority Housing Mortgage Revenue Bonds is in receivership with Anchor Bank.  He stated a new manager has been hired.  He stated he has been advised by Bond Counsel Michael Regenfuss and Assistant City Attorney Kail Decker that if the Authority did not object to the dismissal of the Land Use Restriction Agreement the bonds could become taxable which would seriously depreciate the bond value unless the bonds were paid off. Although this does not create a financial burden on the Authority it would harm the bond investors and the Authority’s good name and future bond ratings. He stated it is recommended that the Authority object to the dismissal of the Land Use Restriction Agreement at the court hearing January 6 the 2009.    

 

D. Piton asked that this be explained in more detail and how the bonds were issued.

 

K. Pamperin stated the Housing Authority is not at any risk financially.  The bondholders are the ones at risk.  He stated the Housing Authority’s credibility regarding bonds would be compromised and the bond investors would lose on their investment.

 

W. Vande Castle stated a receivership is a state form of federal bankruptcy.  He stated that the project would continue to run until the receivership can liquidate it. 

 

D. Pinton asked who was involved in the project. 

 

K. Pamperin stated initially it was the developer and the Housing Authority.  He said now it is the developer, the Housing Authority, bank as trustee, and Anchor Bank as a court appointed receiver and investor. . 

 

D. Pinton asked if this was an opportunity for the Housing Authority to purchase the building. 

 

R. Strong stated he does not feel the Housing Authority has an option to purchase. 

 

W. Vande Castle stated the City Attorney should be consulted regarding the Housing Authority becoming a potential purchaser.  He also stated the Housing Authority members should receive a copy of the brief and any pleadings in regards to this matter.

He felt the Authority may want to bring in an outside counsel to advise them on the options for this property.

 

K Pamperin stated that Michael Regenfuss of Foley and Lardner, Milwaukee, Office acted as Bond Counsel for the Authority on issuance of the bonds and wrote the bond documents that would need to be interpreted and has provided guidance on this issue as a favor. He suggested that the Authority may want to have Michael Regenfuss provide Guidance to Kail Decker, the Assistant City Attorney who prepared this objection.     

 

K. Pamperin also informed the Authority that the annual bond fee equal to 1/10th of one percent of the bonds issued has not been paid. Pursuant to the bond agreement, the developer is to pay to the Authority an annual fee of one percent of the bonds’ value for the life of the bonds.  This annual fee has not been paid and has been accruing interest at 12% per annum.  He stated the total amount due is approximately $18,000. 

 

W. Vande Castle stated if the property cannot be sold, the receiver would likely shut down the property to limit expenses. 

 

K. Pamperin stated he and R. Strong were in communication with various buyers attempting to purchase the property before it went into receivership. Apparently the offers were not satisfactory to the owners.  

 

After further discussion, a motion was made by D. Pinton, seconded by W. Vande Castle and carried to approve the Objection to Receivers Motion for Declaration Relief Victory Heights LLC d/b/a as Creek Side Senior Living (“Project”) and to seek legal counsel from the City Attorney’s Office with guidance from the Authority’s Bond Counsel to protect the Authority’s interest. 

 

FINANCIAL REPORT AND BILLS:

 

A motion was made by W. Vande Castle, seconded by D. Piton and carried to approve the bills as submitted.

 

STAFF REPORT:

 

M. Barron updated the Authority on the review of annual recertifications for present tenants. 

 

K. Pamperin stated he met with ICS and they requested to check first reviews completed by Barron Rentals. M. Barron indicated that Rosemary Jonas from ICS reviewed the first few files and acknowledged errors had been made. K. Pamperin reported that ICS has not given him anything formally acknowledging the errors

 

M. Barron stated they have completed 10 reviews with six in progress.  She stated that approximately $11,000 is due the Housing Authority at this point. 

 

D. Piton stated that would be approximately $1,000 per review. 

 

R. Strong asked if every file had a problem.

 

M. Barron stated yes.  She also reported that three tenants have moved out and those files will not be reviewed.

 

D. Dolan-Wallace asked what ICS will do with these findings.

 

D. Piton asked if all these errors occurred during the time period when ICS indicated they wanted to terminate the contract.

 

K. Pamperin stated the Authority sent out an Request For Proposals in 2006 and ICS was the only management agency to submit a proposal which the Authority accepted.  ICS notified the Authority in approximately January 2007 that they wanted to end the contract by July 2007. The Authority requested an extension on a month to month basis and in January 2008 executed an addendum to the existing contract increasing the per unit payment from $7068 to $9700 through March 31, 2008.  ICS further agreed to a month to month continuation until June 31, 2008. During this time the Authority hired a consultant and began an analysis of the options available to the Authority regarding selling the units, vouchering them out and opting out of the public housing program etc. Following review the Authority determined it was in the best interest of the City to keep the properties in the public housing program to maintain the federal commitment of Capital Funds and Operating Subsidy with the concept of selling off one or two units for home ownership each year, and using the proceeds to acquire and substantially rehabilitate replacement units for public housing outside the City’s designated concentration of assisted housing. A request for proposals was sent out and Barron Rentals was selected to administer the Scattered Site Properties in June of 2008, and the transition to Barron Rentals occurred July 1, 2008.  Barron Rentals notified the Authority of discrepancies in rent certifications in August of 2008.                

 

W. Vande Castle stated the City Attorney should be consulted before any payments are made regarding these findings.  The City Attorney should be consulted on the steps to be taken on these issues.

 

K. Pamperin stated he would contact the City Attorney and request guidance on this issue. .

 

M. Barron indicated there were two vacancies in the Scattered Site properties.

 

Executive Director, R. Strong thanked Keith Pamperin for his nearly 38 years of service to the Authority as this is his last meeting.  He indicated interviews have taken place for K. Pamperin’s replacement.  He also indicated the Authority may want to look to K. Pamperin for possible consulting services during the transition if it possible under his retirement.

 

There being no further business to come before the Authority, a motion was made by D. Piton, seconded by H. Genunzio and carried to adjourn.  The meeting adjourned at 12:00 PM.