LAWRENCE-DOUGLAS COUNTY HOUSING AUTHORITY BOARD OF COMMISSIONERS MEETING December 18, 2017 AGENDA Clinton Place 5:30 p.m. Meal Site 1. Call of Roll 2. Approve Minutes of the November 27 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 November 2017 Public Housing Financial Reports B. Receive November 2017 Clinton Place Financial Reports C. Receive November 2017 Section 8/VASH Program Report D. Resolution 2017-26: Write Off Capital Inventory 5. REGULAR AGENDA

A. Executive Director’s Report B. Resolution 2017-27: Approve 2017 Public Housing Operating Budget

Revision C. Update on Crisis Center Development Project

6. CALENDAR AND ANNOUNCEMENTS

Executive Director out of office December 25 - 29 7. Adjournment

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LAWRENCE-DOUGLAS COUNTY HOUSING AUTHORITY BOARD OF COMMISSIONERS MEETING

November 27, 2017 Babcock Place 5:30 p.m. Meal Site 1. Call of Roll Chair Powers called the meeting to order at 5:33 pm. Upon call of roll, the following Com-missioners responded present:

Jamie Davison Maria Duran Ellen Paulsen Josh Powers Bronson Star

Also present were members of the public Pat Benabe, James Dunn, Wanda Hand, Jan McKenzie and Beth Parvis, and LDCHA staff members Beverly Hyatt, Ruth Lichtwardt, and Shannon Oury. 2. Approve Minutes of the October 23, 2017 Board of Commissioners meeting Vice Chair Duran moved to approve the minutes as presented. Commissioner Paulsen seconded. The motion passed unanimously. 3. Receive Comments from Tenants and Public Ms. Hand apologized in case anyone thought she was yelling when the last meeting was at Babcock Place, and explained that she had moved more toward the front at this meet-ing so she could project better. Chair Powers assured her no apology was necessary. Mr. Dunn commented that he had noticed an article in the Journal-World on a program being offered at the public library called “How to Adult: Finding and Renting Your First Apartment.” He had inquired and found it was being presented by the library’s teen de-partment. If he has time, he will attend the program to see what information is being of-fered. He also commented on certain HUD/VASH program participants. He said that as a landlord who participates in the program, he is very concerned because under the VASH program, tenants can cause damage to an apartment and move on to a new place with no consequences to themselves. They are able to engage in behavior that would get them expelled from any other voucher program. He thinks word may be getting out among the VASH participants because the issue has gotten worse over the last year. He is experi-encing more damage from his VASH voucher tenants and one person he knows of was even subletting her VASH-sponsored apartment. He wanted to bring this again to the Board’s attention. 4. CONSENT AGENDA A. Receive October 2017 Public Housing Financial Report B. Receive October 2017 Clinton Place Financial Report C. Receive October 2017 Section 8/VASH Program Report

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D. Resolution 2017-22: Write-Off Tenant Accounts Receivables (TAR) in the Amount of $21,802.54

E. Resolution 2017-23: Write-off Uncashed, Unclaimed Checks in the Amount of $6,232.65

F. Resolution 2017-24: Approve 2018 Application for HOME Tenant Based Rent Assistance

Mr. Dunn requested that Agenda Item 4C be discussed separately. Executive Director Oury explained that the final Section 8 funding had finally been allotted, although later notice had been received that a “settle-up” of embedded admin fees for 2016 will also be sent, so an additional amount will be received by the agency. The budget is running on line, and expenses year-to-date have all been reimbursed. Between what has been allot-ted and what has been spent, there is a surplus of $134,587. This amount must be spent or it will be added to the HUD-held reserves. Mr. Dunn asked if there is anything in those amounts that can be used to reimburse landlords for expenses for damages by VASH participants. Ms. Oury replied that she does not know of any funds that are allowed to be spent for that through voucher funding but she can check with the VA to see if there is funding available through their program. When VASH representatives had attended a Board meeting in early 2016, they had intimated that they would try to make things right with the landlords. Staff has followed up but she has heard of no resolution. Mr. Dunn encouraged Ms. Oury to continue the inquiry. Commissioner Paulsen moved to approve the Consent Agenda as presented. Commis-sioner Star seconded. The motion passed unanimously. 5. REGULAR AGENDA

A. Executive Director's Report Executive Director Oury summarized the HUD Cash Validation Review which she had reported on last month. The review had substantiated the LDCHA’s reported numbers and confirmed that no additional funds will need to be transferred to HUD. She reported that the finding regarding the General Depository Agreements that the agency has with its banks has been received. The reviewers had recommended that LDCHA apply to HUD to allow the minor amendments to the GDAs. The attached Corrective Action Plan will be submitted with that request to start the process. The agency is hopeful that HUD will approve keeping the amendments because they are very minor and do not alter the parts of the agreement most crucial to HUD. Chair Powers commented that this must be an issue for many housing authorities. Ms. Oury said that the reviewers had indicated that almost every MTW agency which had undergone the review had received the same find-ing. It was very difficult to get the banks to agree to the LDCHA’s GDAs even with the minor amendments that were finally negotiated. HUD’s requirement for no modifications to GDAs might not reflect the necessities of modern banking. Ms. Oury reported that the State HOME grant has been awarded in the same amount as last year, so the program in cooperation with Bert Nash will continue to operate. HUD has contracted with the Urban Institute to do an evaluation of the MTW program, and Ms. Oury will be participating in interviews for the evaluation. In addition, LDCHA had been selected for a more in-depth set of interviews being conducted for a smaller sub-set

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of agencies. Ms. Oury commented that whenever there is a study or review of the MTW program, LDCHA always seems to be picked as one of the agencies for the more detailed or in-depth questions. She thinks that might be because the agency has participated in the program from its inception and because it instituted a work requirement almost imme-diately. She is always happy to participate in these studies. A large student apartment complex is being proposed to be built on Crestline Drive, very close to Clinton Place. Ms. Oury called the Board’s attention to the maps included in their packets. She has read the traffic study and believes that the addition of several hundred additional vehicles to the intersection as it is currently configured is going to create a major problem for Clinton Place residents. Clinton Place is landlocked with only one ac-cess road, which is placed so close to the stoplight that it is already difficult to enter or exit when there is traffic stopped at the light. Ms. Oury requested the Board’s approval to attend upcoming Planning Department meetings where traffic control for the area will be discussed in order to ensure a better outcome for Clinton Place residents. Commissioner Paulsen said that after she had received the Board packet, she had driven to the area to take a better look, and was perplexed by some of the proposal. She could not visualize how some of the parking referenced in the study would work. She has delivered meals to Clinton Place and understands the already existing problems with the intersection. Ms. Oury mentioned that she was concerned that residents would begin cutting through the parking lot of the church next door in their attempts to access Crestline. There was further discussion about the current traffic plans and approval was granted for Ms. Oury to attend the traffic meetings. DCHI has been awarded a LiveWell Community Fitness grant of $7,000 which will allow the Babcock Place Senior Healthy Steps Fitness Program to continue in partnership with Lawrence Parks and Recreation. Ms. Oury gave an update on the Lawrence Memorial Hospital parking lot expansion and the sewer lines at 326 Michigan St. which were impacted by the project. The project re-placed a large portion of the manhole and public sewer line which was on the LDCHA property. Since the yard had already been dug up for that, LDCHA is taking advantage of the situation and replacing the old clay line to the house. The City also connected the sewer lines of the LDCHA’s house and the house next door to the public sewer with a new “Y” connector, so the two house lines are now separate. The whole project has ac-tually upgraded the property. Ms. Oury also gave a synopsis of the current federal budget situation. The Continuing Resolution expires December 8th and it is exceedingly difficult to predict what is going to happen, since the tax bill will likely be passed before Congress starts work on the budget. The public housing subsidy tools were due to be issued today but instead notice was sent that they will likely not be issued until January. This leaves the agency with very little to predict what the 2018 budget might be.

B. Approve Draft New Lease for Distribution for Public Comment Executive Director Oury explained as background that she had been looking at the current LDCHA lease to update the sections on the new HUD-mandated smoking restrictions and

4

updating the One-Strike policy among others. She has never liked the format of the cur-rent lease, so along with the updates she changed it to a new format based on the look of the Tacoma housing authority’s lease to make it easier to locate items. The content is substantially the same as the current lease although there are some sections with more detail, such as what the LDCHA considers a lodger. Pat Benabe had questions on some sections in the proposed lease, which Ms. Oury an-swered. The sections in question are also in the current lease. Ms. Benabe offered com-ments about wishing that tenants were required to properly dispose of their trash and is looking forward to the new cameras being installed in Edgewood Homes. Vice Chair Du-ran asked about the section on satellite dish restrictions, which Ms. Oury explained did not prevent the dishes being used, but they are not allowed to be installed ways that either impede lawn mowing or cause holes to be drilled in the buildings. Vice Chair Duran moved to approve the distribution of the draft lease for public comment. Commissioner Paulsen seconded. The motion passed unanimously.

C. Receive Report on 2017 Awards Under the Employee Performance Incen-tive Fund

Executive Director Oury outlined the history and goals of the Employee Performance In-centive (EPIF) and the agency’s status as a high performing agency. She detailed the latest HUD scores which indicate that the agency retains its status as a high performer. She gave detail on REAC inspections and the items that are backed out calculations because they were income over expenses which were not due to employee performance. One such item was the larger proration which was received than was budgeted for. She said she was very pleased that the agency was able to replace all the Babcock Place boilers, a maintenance project which will be good for 25 years, and still is in good enough budgetary shape to able to replenish the funds. She provided further history on the EPIF program, and explained how the shares are distributed. In response to a question from Commissioner Paulsen, Finance Director Hyatt outlined how the shares are determined. There was brief discussion among the Board members. Commissioner Star moved to approve the EPIF in the amount of $80,000. Vice Chair Duran seconded. The motion passed unanimously. Ms. Oury thanked the Board, and Commissioner Star requested that Ms. Oury pass on the thanks of the Board to the employees for all their hard work.

D. Resolution 2017-25: Review and Approve Criminal Trespass / Banned Per-son Policy if Appropriate

Executive Director Oury explained that there has been a recent rise of incidents at Edge-wood Homes which has caused her to review what steps the LDCHA can take to help ensure the peaceful enjoyment of its properties by the tenants. While there is a record of persons who are banned from LDCHA property for various violations going back to the 1980s, there has not been an official policy outlining the specific steps to be taken to ban an individual for their violent or illegal drug behavior. Ms. Oury prefers to have a process

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in place, and especially to be able to balance the rights of the individual with those of the collective. She reviewed several other policies in place at other public housing authorities and has spoken with a neighborhood resource officer and the police department. She outlined the policy’s provision to appeal a ban after a period of time, which does not cur-rently exist. Ms. Oury believes that this policy will aid in keeping the properties safer and the police better informed. Chair Powers asked what the process has been and Ms. Oury explained that there have only been a couple of people banned during her tenure, and both were very well docu-mented with police reports and in one case a criminal conviction. There was discussion about what the police and Mil-Spec will act on, and Commissioner Star explained that the police normally need documentation in order to act on a criminal trespass report. There was discussion about how the commission of a felony is determined. Vice Chair Duran moved to approve Resolution 2017-25. Commissioner Paulsen se-conded. The motion passed unanimously. 6. CALENDAR AND ANNOUNCEMENTS Executive Director Oury announced the staff Holiday Party on Thursday, December 14, 12:00-2:00 pm at Edgewood Homes. Invitations will be emailed to the Board. She re-minded the Board that all offices will be closed on December 7th and 8th for staff training. 7. Adjournment There being no further items of business, Vice Chair Duran moved to adjourn. Commis-sioner Paulsen seconded. The meeting adjourned at 6:33 pm.

_______________________________ ________________________________ Chair Secretary Attest

LAWRENCE-DOUGLAS COUNTY HOUSING AUTHORITY BOARD OF COMMISSIONERS MEETING

December 18, 2017

AGENDA ITEM 4A: Receive November 2017 Public Housing Financial Reports AGENDA ITEM 4B: Receive November 2017 Clinton Place Financial Reports AGENDA ITEM 4C: Receive November 2017 Section 8/VASH Program Report Due to the early date of the December Board meeting, the financial reports were not able to be prepared in time. The November reports will be presented at the January meeting. Please note that the financial reports presented in January will differ in appear-ance. The fee accountant is changing software at the end of this year.

LAWRENCE-DOUGLAS COUNTY HOUSING AUTHORITY BOARD OF COMMISSIONERS MEETING

December 18, 2017

AGENDA ITEM 4D: Resolution 2017-26: Write Off Capital Inventory CURRENT ISSUE: The LDCHA conducts an annual capital inventory and writes off any items that are lost, destroyed, broken, sold, disposed of or obsolete. The capital inventory consists of all equipment and nonexpendable property with a value of $5,000 or more. As items are purchased they are recorded into the inventory property ledger by our Fee Accountant. However, only the Board has authorization to write off capital inventory (at which time it is removed from the property ledger). The annual inventory count for 2017 was conducted beginning mid October through early December, 2017. Attached is the capital inventory to be written off in fiscal year 2017. BOARD ACTION: Adopt resolution 2017-26.

LAWRENCE-DOUGLAS COUNTY HOUSING AUTHORITY BOARD OF COMMISSIONERS MEETING

December 18, 2017

RESOLUTION 2017-26

BE IT RESOLVED that the Board of Commissioners of the Lawrence-Douglas County Hous-

ing Authority (LDCHA) approves Resolution 2017-26, Write Off Capital Inventory, as pre-

sented to the Board of Commissioners this 18th day of December, 2017.

NOW THEREFORE the Board of Commissioners does hereby approve Resolution 2017-26.

LAWRENCE-DOUGLAS COUNTY HOUSING AUTHORITY

2017 CAPITAL INVENTORY WRITE-OFF

RESOLUTION #2017-26

OFFICE FURNITURE AND EQUIPMENT

REMAINDER

ITEM# DESCRIPTION PURCHASE DATE ORIGINAL COST DEPRECIATION VALUE REASON FOR WRITE/OFF

139 Babcock Place Copier 08/25/06 5,575.00 0.00 Purchased new copier/

returned to Vendor

Totals 5,575.00 0.00

LAWRENCE-DOUGLAS COUNTY HOUSING AUTHORITY BOARD OF COMMISSIONERS MEETING

December 18, 2017

AGENDA ITEM 5A

Executive Director’s Report Funding Update Congress passed a continuing resolution which funds the government through December 22, 2017 and President Trump signed the measure into law. Congress is expected to continue appropriations work in December. Lawmakers will have to come to an agree-ment on a spending package by Dec. 22 or enact another continuing resolution to avoid a shutdown. Staff has been informed by HUD that the Section 8 funding for January and February will be based on HAP expense for September 2017, the most recent month validated in VMS. The monthly disbursement will also include an additional 2% margin. There is no infor-mation when the 2018 estimated eligibility will be announced. The lack of any information on the funding level for 2018 will make creating the 2018 budgets very difficult. Also recall that staff will bring the 2018 budgets to the Board in February rather than January in 2018. This will provide the Finance Director more time to complete year end for 2017 and get the information to our fee accountant earlier so we are able to get a draft of the Financial Data Statement (FDS) in time for us to review it. MTW Voucher Report Pursuant to the 2016 MTW Plan, the LDCHA utilized federal flexibilities granted by HUD’s Moving to Work Demonstration Project in order to create 10 transitional vouchers for the Safe Housing Program and 5 for the Next Step program. The Safe Housing Program reduced wait times for housing for LDCHA’s traditional Public Housing and Housing Choice Voucher programs from approximately 9 - 14 months to under 4 months for Safe participants. In 2016, 6 Safe vouchers were issued and the first of these households will be transitioning to a Section 8 voucher in May 2018. To date, 36 family members have been served by this program, 2 families have moved out favorably. Safe participants were actually often offered assistance and began searching for a living unit less than one month after submission of a completed referral and application. In less than a year all 10 Safe vouchers have been issued, with 9 families consisting of 29 mem-bers safely and securely housed, and another family is actively searching. The Next Step Program that provides vouchers to young adults formerly in foster care, issued 5 of the available vouchers. Three youth have been successfully housed for 1 - 7 months. Unfortunately, due to non-payment of rent, the other two have left the program unfavorably. Staff will be working on how to structure the program to improve the ability to assist this special population. New Horizons Voucher Report The New Horizons Voucher program began in 2016 with a combined grant of $50,000 from Douglas County and $100,000 from the City of Lawrence. Douglas County contrib-uted an additional $50,000 in 2017 and has authorized another $50,000 for 2018. It has

LAWRENCE-DOUGLAS COUNTY HOUSING AUTHORITY BOARD OF COMMISSIONERS MEETING

December 18, 2017

served 11 families for a total of 42 individuals, 17 adults and 25 children. Average family size has been 4.2 with an average child age of 6. Currently, 11 families are actively housed, and one household has voluntarily left the program due to moving out of state. The first of these households will exit to a Section 8 voucher in February 2018.

Update on Assessment of Fair Housing HUD accepted the Assessment of Fair Housing that was prepared and submitted with the City of Lawrence. HUD has asked the LDCHA to add more specificity in its annual plan on goal implementation (specifically metrics, milestones and timeframes). Staff will work on these to include in its next MTW Plan. Additional Affordable Housing Development Opportunities The agency has been approached by a private developer to inquire if LDCHA is interested in partnering on a project to purchase units in a development that would be rented at an affordable rate. An information session with the developer will be scheduled for the Jan-uary meeting. Attached is the development matrix. If there is any specific information that the Board wants to have included in this presentation, please let the staff know.

Affordable Housing Advisory Board (AHAB) Appointment

The Executive Director’s term on AHAB is set to end on December 31, 2017. The by-laws call for the agency to recommend a representative to serve for the Mayor and Com-mission to appoint. The AHAB is the body that will review applications for funding from the Affordable Housing Trust Fund and recommend funding for these affordable housing projects to the City Commission. Having a member on the AHAB does not prevent LDCHA from requesting funds. The City attorney has reviewed and set out how a member would recuse him or herself if their agency has an application being considered. The Executive Director would like to continue to serve. The City requests an official recommendation from the Board.

o

o

LDCHA Development / Acquisition Evaluation Matrix

Vision Statement: One of the primary missions of the Lawrence-Douglas County Housing Authority (LDCHA) is to expand affordable housing in Lawrence and Douglas County, Kansas. Goal 1: The expansion of new affordable units done in a financially sustainable manner. Goal 2: The LDCHA will endeavor to create the most units for the least cost. Goal 3: The expansion will consider special housing needs.

Criteria Importance

Rating Comments

Location 1:

Lawrence

Douglas County

_________________

Location 2: Area

Low Poverty Tract

High Poverty Tract

_________________

Deconcentration of poverty – preference for low poverty track loca-tions

Location 3: Services

Schools

Crime

Access to jobs

Access to groceries and shopping

Demographic

Ext. Low Income

Elderly/Near Elderly

Workforce

Extremely Low Income = ≤ 30% AMI

Low Income Housing = 40% - 60% AMI

Workforce housing = 60% - 80% AMI (Multi-Family defines 60%-100% AMI)

Mixed Income housing

Number of Units

1 - 5

6 - 25

26 – 50

51 – 100+

Deconcentration of poverty

Preference for lower number of units at any one location

Price / cost per Unit

Financing

Ability to reach 97% occupancy in first year

Ability to fully fund replacement reserve

Greater than 1.15 debt coverage ratio (DCR)

Subsidy Availability

Low Income Housing Tax Credit (LIHTC)

Project Based voucher

Affordable Housing Trust

Special Needs

Accessible

Transitional

Supportive

_____________

Administration / Staff Costs

Total

Importance Rating Scoring

Scale 4 3 2 1 3 2 1 Highest Lowest Excellent Good Poor

LAWRENCE-DOUGLAS COUNTY HOUSING AUTHORITY BOARD OF COMMISSIONERS MEETING

December 18, 2017

AGENDA ITEM 5B: Resolution 2017-27: Approve 2017 Public Housing Operating Budget Revision #1 CURRENT ISSUE: The attached budget revision is necessary to reflect changes resulting from the Employee Performance Incentive Fund awards approved by the Board at last month’s meeting. In addition, this revision is necessary to include final HUD approved Operating subsidy for fiscal year 2017. Finally, this revision brings income and expenses in line with budget projections. OPERATING INCOME Total Operating Income shows an overall increase of $106,951 or $2,395,540 for the 2017 budget year. Rental Income projects an estimated increase of $12,286 or $1,313,850 (in annual tenant rental income). Overall, Total Other Income projects a slight estimated increase of $3,049 or $256,160 at 12/31/17 FYE. Interest Income projects an estimated increase of $2,300 or $15,900. Interest Income is a projection based on market investment rates. Market rates on custody holding invest-ments began to increase in late CY 2014. Beginning in August, 2015 we began to see another rise in custody holding investments. Other Income Tenant Work Order, Damages and Late Fees (3690) shows an overall es-timated decrease of $6,850 or $33,150. This budget line is a projection based on current fiscal year account activity. Other Income – Capital Funds 3690.121, 3690.123, 3690.126 and Hope House 3690.122, 3690.124, 3690.125 and 3690.127 are for management operations for both grants. This includes operation reimbursements for the Executive Director, Finance Director, Business Office Assistant, Maintenance Director, Inventory Control Procurement Clerk and as-signed Maintenance Worker’s (and are for work related to these grants). Grant renewals are not a given and because of this the Hope House Year 13 grant renewal was not included as a potential income source in the original 2017 Public Housing Budget. The estimated final proration for Public Housing Operating Subsidy results in a $91,616 increase from the original budget projection. This is income over which the agency has no control. The original budget projection was based on 2016 final subsidy eligibility of $863,428 X and 85% proration level or $733,914. Final proration levels for 2017 (released by HUD in late October) is approximately 93.10% of 2017 subsidy eligibility. For LDCHA, this amount is $885,579 X 93.10% = $824,458.

LAWRENCE-DOUGLAS COUNTY HOUSING AUTHORITY BOARD OF COMMISSIONERS MEETING

December 18, 2017

Additionally, in early October HUD announced beginning with all PHA’s FY 2016 Operat-ing Funds they will be appropriated and obligated for a two-year funding period. HUD will have a “reserve hold over” for any corrections or de-obligations. HUD will continue this practice in the future. Because of this, LDCHA received an additional $1,072 for FY 2016 operating subsidy. When looking at this, final subsidy for FY 2017 is $825,530 (FY 2017 final eligibility of $885,579 X 93.10% = $824,458 plus FY 2016 adjustment of $1,072 = $825,530). Lastly, funds have all been made available and drawn down in LOCCS. OPERATING EXPENSES Total operating expenses (from all sources) show an end of year projection of $1,946,710. This is an overall decrease of $42,160 from the original projection of $1,988,870 for the 2017 budget year. Total Administrative Expense show an overall estimated decrease of $22,350 or $545,060. Administrative Salaries (4110) show an overall decrease of $19,940 or $384,850. Most of this is due to staff turnover in three administrative positions. These are the Director of Housing Assistance position which became vacant in April and filled in June. The Data Analyst position which became vacant in March and filled in June. Lastly, the Initial Occupancy Specialist became vacant in April and filled in September. In addi-tion, the initial 2017 operating budget projects merit performance increases up to a 2.5% increase. The agency’s performance evaluation rating was amended by Resolution 2014-20 (revised 10/27/14) and beginning in FY 2015 an employee was only eligible to receive (based on their overall annual performance rating) a merit increase ranging from 0% and in half step increments up to 3%. In addition, awards under the Employee Performance Incentive Fund were paid in December. Employee Benefits (4182) show an overall esti-mated decrease in the amount of $2,420 or $87,580. This is because of the decrease in total Administrative salaries (4110) as well as Employee Benefit (4182) costs paid under the Employee Performance Incentive Fund awards. Forms and Office Supplies (4190.17) shows an overall decrease of $3,750 or $5,000. Other Sundry (4190.18) shows an overall increase of $3,120 or $15,500. Staff identified the cause to be copy overage charges (as well as an increase in postage costs and con-tinues to work on ways to keep overage and postage charges down. HUD required the new Violence Against Women Act (VAWA) Notice of Rights be sent to all participants and applicants. This has significantly increase copy and postage costs that were not originally anticipated. Total Tenant Services show an overall estimated decrease in the amount of $7,470 or $84,520. Total Tenant Services Salary (4210) shows an overall decrease in the amount of $3,880 or $60,510. In addition, the Elderly Programming Line (4220.10) shows an estimated decrease of $2,520 or $3,610. This budget line is for Elderly Programming which is mostly supplies (such as ink and toner) for the Babcock Place computer lab.

LAWRENCE-DOUGLAS COUNTY HOUSING AUTHORITY BOARD OF COMMISSIONERS MEETING

December 18, 2017

Total Utilities show an overall minimal decrease of $540 or $303,290. Utilities are a pro-jection based on previous year consumption and experience including any known rate increases at the time the original budget is being prepared. Seasonal weather conditions also play a factor in increases or decreases to utility expense lines. Total Ordinary Maintenance and Operations show an overall estimated decrease in the amount of $22,560 or $712,690. Maintenance Labor (4410) shows an estimated de-crease in the amount of $25,050 or $457,170. Most of this is related to turnover in one Maintenance II as well as one Maintenance I position. Again, the other reason for the decrease is due to merit step increases as mentioned above (under Administrative Sala-ries). Finally, the rewards paid in December under the Employee Performance Incentive Fund are also included in Maintenance Labor (4410). Total General Expense show an overall estimated increase of $12,230 or $257,900. This is mostly due to the agency’s 2017-2018 commercial property and general liability pre-mium renewal. Required risk protection policies (in the 2017 budget year) are based on prior year costs and also include any known rate increases or decreases at the time of policy renewal. In addition, the agency does an annual write off of tenant accounts that are uncollectible. This budget revision includes all TAR bad debts on the books as of 10/31/17 written off at the November Board meeting (for all public housing programs only under Collection Losses budget line 4570). Most budget line items include annual projections for year-end accruals which are calcu-lated and recorded in December as part of the year end close-out in accordance with GAAP. What is not included in this budget revision are the materials inventory projection for FYE 12/31/17. Also not included in this budget revision are non-cash adjustments to the general ledger for compensated absences and doubtful accounts for tenants in resi-dency. These will be made with the 2017 year-end close-out and included on the 12/31/17 final year-end financial reports. The 2017 Public Housing Operating Budget revision projects total operating receipts of $2,395,540 and total operating expenditures of $1,946,710 with a provision for current year operating reserves of $448,830. This is $149,111 more than the original budget estimate of $299,719. Additionally, these Public Housing operating reserves are held at the PHA level. What is not included in this budget revision is the sixth annual loan repayment (approved at the 01/23/17 Board Meeting and paid on 02/28/17) in the amount of $104,024 for the Energy Performance Contract. BOARD ACTION: Approve Resolution 2017-27.

LAWRENCE-DOUGLAS COUNTY HOUSING AUTHORITY BOARD OF COMMISSIONERS MEETING

December 18, 2017

RESOLUTION 2017-27

BE IT RESOLVED that the Board of Commissioners of the Lawrence-Douglas County Hous-

ing Authority (LDCHA) approves Resolution 2017-27, Approve 2017 Public Housing Operat-

ing Budget Revision #1, as presented to the Board of Commissioners this 18th day of Decem-

ber, 2017.

NOW THEREFORE the Board of Commissioners does hereby approve Resolution 2017-27.

LAWRENCE-DOUGLAS COUNTY HOUSING AUTHORITY

FISCAL YEAR 2017 PUBLIC HOUSING OPERATING BUDGET (REVISION #1)

OPERATING INCOME:

2017 BUDGET 2017 BUDGET INCREASE/

ACCT. # ACCOUNT DESCRIPTION App 01/23/17 Rev #1 12/18/17 DECREASE

3110 Dwelling Rental 1,301,564.00 1,313,850.00 12,286.00

3110.2 Dwelling Rental - FSS 0.00 0.00 0.00

3190 Nondwelling Rental 0.00 0.00 0.00

TOTAL RENTAL INCOME: 1,301,564.00 1,313,850.00 12,286.00

OTHER INCOME:

3610 Interest Earned on General Fund/Investments 13,600.00 15,900.00 2,300.00

3690 Other Income - Tenants Damages & Late Fees 40,000.00 33,150.00 -6,850.00

3690.1 Other Income - Cell Tower and Laundry Income 30,600.00 31,080.00 480.00

3690.104 Other Income - Bert Nash (BIND Management Fees) 1,776.00 1,776.00 0.00

3690.111 Other Income - Management Fees (Clinton Place) 0.00 400.00 400.00

3690.116 Other Income - Management Fees (LEH) 1,000.00 400.00 -600.00

3690.121 Other Income - Capital Funds (CY - 2015 Grant) 16,143.00 16,143.00 0.00

3690.122 Other Income - Hope House (PM) Year 12 Mgmt Fees 1,485.00 1,485.00 0.00

3690.123 Other Income - Capital Funds (CZ) 2016 Grant 103,470.00 118,520.00 15,050.00

3690.124 Other Income - Hope House (PM) Year 12 Maintenance 0.00 264.00 264.00

3690.125 Other Income - Hope House (PP) Year 13 Mgmt Fees 0.00 4,455.00 4,455.00

3690.126 Other Income - Capital Funds (ZS) 2017 Grant 36,997.00 24,447.00 -12,550.00

3690.127 Other Income - Hope House (PP) Year 13 Maintenance 0.00 100.00 100.00

3690.11 Other Income - Donations (NA) 240.00 240.00 0.00

3690.2 Other Income - Bus Donations 2,500.00 2,500.00 0.00

3690.3 Other Income - Receipts from NonExpendable Equipment 0.00 0.00 0.00

3690.4 Other Income - Insurance Dividends 0.00 0.00 0.00

3690.60 HOME TBRA Management Fees 1,700.00 1,700.00 0.00

3690.70 Other Income - ROSS (PG - 2012 Ross Grant) 3,600.00 3,600.00 0.00

TOTAL OTHER INCOME: 253,111.00 256,160.00 3,049.00

TOTAL INCOME: 1,554,675.00 1,570,010.00 15,335.00

OTHER RECEIPTS:

8020 Operating Subsidy 733,914.00 825,530.00 91,616.00

TOTAL OTHER RECEIPTS: 733,914.00 825,530.00 91,616.00

TOTAL OPERATING RECEIPTS: 2,288,589.00 2,395,540.00 106,951.00

OPERATING EXPENSES:

2017 BUDGET 2017 BUDGET INCREASE/

ACCT. # ACCOUNT DESCRIPTION app 01/23/17 Rev #1 12/18/17 DECREASE

4110 Administrative Salaries 404,790.00 384,850.00 -19,940.00

4110.3 Experience Awards 2,730.00 2,730.00 0.00

4130 Legal Expenses 2,500.00 3,200.00 700.00

4140 Staff Training 2,340.00 1,190.00 -1,150.00

4150 Travel 3,500.00 3,500.00 0.00

4170 Accounting Fees 6,340.00 6,340.00 0.00

4171 Audit Fees 4,430.00 4,400.00 -30.00

4182 Employee Benefits - Administration 90,000.00 87,580.00 -2,420.00

4182.3 Employee Benefits - Experience Awards 470.00 470.00 0.00

4182.5 Employee Benefits - AHR Personal Benefits Account 0.00 0.00 0.00

4190.11 Publications 0.00 0.00 0.00

4190.12 Membership Dues & Fees 770.00 960.00 190.00

4190.13 Telephone 4,290.00 4,290.00 0.00

4190.15 Coll Agent Fees & Court Costs 50.00 50.00 0.00

4190.16 Fiscal Agent Fees 0.00 0.00 0.00

4190.17 Forms & Office Supplies 8,750.00 5,000.00 -3,750.00

4190.18 Postage & Miscellaneous Sundry 12,380.00 15,500.00 3,120.00

4190.19 Administrative Contracts 24,070.00 25,000.00 930.00

TOTAL ADMINISTRATIVE EXPENSES: 567,410.00 545,060.00 -22,350.00

TENANT SERVICES:

4210 Tenant Services/Salaries & Emp Ben 64,390.00 60,510.00 -3,880.00

4210.3 Tenant Services - Longevity Payments 0.00 0.00 0.00

4210.9 Tenant Services - Employee Benefits 11,080.00 10,290.00 -790.00

4210.31 Tenant Services -Longevity (Fringe) 0.00 0.00 0.00

4220 Tenant Services 0.00 -30.00 -30.00

4220.1 Tenant Services - Bus Repairs & Transportation 4,990.00 4,300.00 -690.00

4220.10 Tenant Services - Elderly Programming 6,130.00 3,610.00 -2,520.00

4220.12 Tenant Services - Edgewood Homes Events 0.00 0.00 0.00

4220.13 Tenant Service - Babcock Place Events 0.00 0.00 0.00

4220.15 RSO Custodial Services 5,400.00 5,840.00 440.00

TOTAL TENANT SERVICES: 91,990.00 84,520.00 -7,470.00

UTILITIES:

4310 Water 36,350.00 35,200.00 -1,150.00

4320 Electricity 150,000.00 153,100.00 3,100.00

4330 Gas 47,290.00 50,640.00 3,350.00

4390 Other Utility Expense 70,190.00 64,350.00 -5,840.00

TOTAL UTILITIES: 303,830.00 303,290.00 -540.00

ORDINARY MAINTENANCE & OPERATION:

4410 Labor 482,220.00 457,170.00 -25,050.00

4410.1 Experience Awards 4,060.00 4,060.00 0.00

4420 Materials 35,000.00 35,000.00 0.00

4430 Contract Costs 48,800.00 48,800.00 0.00

4431 Garbage Removal 50,400.00 50,400.00 0.00

4433 Employee Benefits - Maintenance 114,070.00 116,560.00 2,490.00

4433.1 Employee Benefits - Experience Awards 700.00 700.00 0.00

4433.5 Employee Benefits - AHR Personal Benefits Account 0.00 0.00 0.00

TOTAL MAINTENANCE & OPERATION: 735,250.00 712,690.00 -22,560.00

OPERATING EXPENSES (CONTINUED):

PROTECTIVE SERVICES:

2017 BUDGET 2017 BUDGET INCREASE/

ACCT # ACCOUNT DESCRIPTION app 01/23/17 Rev #1 12/18/17 DECREASE

4480 Protective Services 17,010.00 14,860.00 -2,150.00

4480.1 Protective Services (Extra Foot Patrol) 15,000.00 17,500.00 2,500.00

TOTAL PROTECTIVE SERVICES: 32,010.00 32,360.00 350.00

GENERAL EXPENSES:

4510 Insurance 127,900.00 137,590.00 9,690.00

4520 PILOT 99,770.00 101,060.00 1,290.00

4570 Collection Losses 18,000.00 19,250.00 1,250.00

TOTAL GENERAL EXPENSES: 245,670.00 257,900.00 12,230.00

TOTAL ROUTINE EXPENSES: 1,976,160.00 1,935,820.00 -40,340.00

2017 BUDGET 2017 BUDGET INCREASE/

ACCT. # ACCOUNT DESCRIPTION App 01/23/17 Rev #1 12/18/17 DECREASE

OTHER EXPENDITURES:

4610 Extraordinary Maintenance 2,500.00 1,300.00 -1,200.00

4620 Casualty Losses 0.00 2,250.00 2,250.00

7520.93 Replacements (Under $5,000) 0.00 0.00 0.00

7520.3 Replacements (Over $5,000) 0.00 0.00 0.00

7540.3 Betterments/Additions (Over $5,000) 0.00 581,500.00 581,500.00

7540.93 Betterments/Additions (Under $5,000) 10,210.00 10,210.00 0.00

7560.5 Proceeds from Insurers 0.00 -2,870.00 -2,870.00

7590 Operating Expense for Property - Contra 0.00 -581,500.00 -581,500.00

TOTAL OTHER EXPENDITURES: 12,710.00 10,890.00 -1,820.00

TOTAL OPERATING EXPENSES: 1,988,870.00 1,946,710.00 -42,160.00

PROVISION FOR OPERATING RESERVES/SURPLUS (DEFICIT) 299,719.00 448,830.00 149,111.00

LAWRENCE-DOUGLAS COUNTY HOUSING AUTHORITY BOARD OF COMMISSIONERS MEETING

December 18, 2017

AGENDA ITEM 5C: Update on Crisis Center Development Project

BACKGROUND: In July 2016 the LDCHA approached Bert Nash Mental Health Center about the possibility of a partnership to create a housing development located adjacent to the proposed Mental Health Crisis Center to provide housing to participants exiting the Crisis Center. This possibility was raised because the current transitional wait-ing lists had a waiting time of 13-15 months which is too long to meet the commu-nity need. The LDCHA serves the full spectrum of housing needs from homeless-ness to home ownership. With the priorities set out by the Board, the LDCHA sees part of its mission as providing housing assistance to special populations. When the proposed Crisis Center was being discussed, the agency recognized that for an optimal outcome for the individuals in that program there would need to be the opportunity to exit to a supportive housing environment. That will require access to new housing units. The Executive Directors of both agencies met with County and City officials in Sep-tember of 2016 to discuss the possibility of this project. At that point, the broad outline was that Bert Nash would donate the land and the LDCHA will purchase the units upon completion contingent on HUD and City Commission approval. As required by the LDCHA’s Authorizing Joint Resolution 00-26/6240 the property will be deeded to the City in the care of the LDCHA. The LDCHA Board received a report on this project at the November 28, 2016 meeting, and authorized the Executive Director to continue discussions developing plans and identifying funding sources for the project. Staff has explored several options for locating an ongoing subsidy for the proposed units, which will be necessary to make the project fiscally viable. To date staff has identified two possible options. One is making an application to the Continuum of Care for a permanent supportive housing grant similar to the current HOPE House grant. Secondly, in the 2018 MTW Plan the LDCHA created an MTW activity 18-1 to establish a Local Section 8 Project Based Voucher Program. This activity will allow the agency to project base vouchers to the property without a competitive process, and have a subsidy attach to the units. The 2018 MTW Plan has not yet received approval from HUD at this point but staff does not anticipate any issues. CURRENT ISSUE: In 2017 the Crisis Center project has undergone significant changes. In January a Health Leadership Council was formed to better understand the following:

LAWRENCE-DOUGLAS COUNTY HOUSING AUTHORITY BOARD OF COMMISSIONERS MEETING

December 18, 2017

Gaps in behavioral health services before, during, and after a crisis event.

Role of individual and collective community agencies in supporting individ-uals before, during and after a crisis event.

This Council includes Douglas County, Bert Nash, Lawrence Memorial Hospital, DCCCA, Health Care Access, and Heartland. Through a series of meetings and data collection efforts the Crisis Center project has significantly been modified with LMH developing a space for crisis beds in the Emergency Department and with the addition of DCCCA’s presence in the proposed Crisis Center. The Crisis Cen-ter has been downsized and redesigned based on the work of the Council. A tem-porary housing project referred to as Tier II housing has been added by Bert Nash. Last week the Affordable Housing Advisory Board recommended to the City Com-mission that $495,000 from the housing trust fund be used for the Tier II project. The housing proposed by LDCHA is permanent supportive housing and is referred to as Tier III. Attached is a first draft of a design of the units. The Agency is ready to negotiate a contract with the County and Bert Nash regard-ing the specific terms and contingencies for this project. A new site plan, that provides the location on the property for the Tier III units has been developed. See attached site plan. The County Board of Commissioners has approved the negoti-ation of a contract with LDCHA. Once that contract is drafted it will be brought to the Board for approval. At that point agency will start the work on getting approval from the City and HUD. Bert Nash is aware that the purchase is conditioned on approval by both the City of Lawrence and HUD. The Crisis Center is contingent on approval of the voters. Based on discussions with Bert Nash, however, the de-velopment of these units is not contingent on the vote due to the great need for this type of housing. BOARD ACTION: Receive update report, and provide the Executive Director guidance on the nego-tiations of terms to be brought back to the Board for approval.

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