[0:01] We will start the meeting, let's please have the row

[0:08] call.

[0:31] I just wanted to complement all of the efforts that have

[0:36] been made especially during last week affordable housing

[0:37] week.

[0:38] we had some wonderful events which executive director

[0:39] will be reporting on.

[0:40] I brought in the editorial and the article regarding our

[0:42] 15 anniversary.

[0:59] it was a wonderful timing.

[1:00] the article was great.

[1:02] I want to thank everyone who contributed either to the

[1:07] events who attended the event and also who made these

[1:10] articles happen.

[1:14] it's not often that we get prominent notice sometimes

[1:22] you get not so good notice on the mercury news.

[1:25] I had to pay attention to this one.

[1:34] I want to make sure that everyone, all the commissioners

[1:35] know that they have to turn off the microphone after the

[1:36] speak.

[1:40] so the we don't have chatter going on in the recording.

[1:46] we will get to comments from the public on an item that

[1:47] it's not on the agenda.

[1:49] I do have a few people who want to speak on the item

[1:54] that is not on the agenda I will call them forward.

[2:03] I'm sorry?

[2:07] yes.

[2:08] stephanie?

[2:09] stephanie shaw?

[2:19] >> good morning my name is stephanie shaw I have been a

[2:24] housing authority employee for 24.

[2:27] 085 years.

[2:34] as a housing program specialist, I'm a member of scei

[2:44] you 521 and a contract action team member.

[2:45] when I first came to the housing authority I was just

[2:50] amazed.

[2:51] I had no intentions of staying this long.

[2:59] I decided, I'll come for four years and in all leave but

[3:00] I didn't.

[3:01] what I found was employees would been here for 15, 10,

[3:10] 20 years and when I inquired I said, are you here?

[3:13] because they felt that they were very committed to the

[3:16] organization and their mission.

[3:18] after that I thought, maybe allstate a couple of more

[3:28] years.

[3:29] plus there were job offers on the table for me to go but

[3:30] I decided I wanted to stay here and make a difference

[3:32] and I feel that I have.

[3:37] as you know, we are in our contract negotiations.

[3:39] we have set clear goals we won a contract that addresses

[3:47] fair concentration that retains and recruits a

[3:49] cutting-edge workforce.

[3:54] we would like to look at a work standard, medical

[3:55] benefits and most importantly we won a contract that

[4:13] recognizes employees years of committed service.

[4:14] earlier this month, management gave us her comprehensive

[4:15] proposal that would only lead to a high turnover which

[4:16] has a negative impact on the quality of service that we

[4:18] provide to our community.

[4:19] based on this proposal, over 50% of the imports would

[4:23] not have wage princes, around 90% of the employees will

[4:32] receive a wage increase while only get a 1-2% way to

[4:44] increase.

[4:45] it's an insult because this is not even cover inflation.

[4:46] management propose to put the burden on any changes in

[4:47] medical expenses on the employees and employees

[4:49] contribute the full cost of their pension.

[4:59] with this proposal, we do not see any improvements

[5:00] always see his takeaways.

[5:12] management has proposed to weakening our unit by

[5:13] proposing to remove the it coordinator, computer system

[5:14] technicians and database analysts from our union.

[5:16] the message we want to bring to you today is, we want to

[5:17] contract that will recruit, retain qualified and a

[5:21] committed force.

[5:25] recognize and value employees years of service and your

[5:32] loyalty.

[5:33] more dates and longer sessions of negotiations.

[5:53] we are not a throw away, we wish to be heard.

[5:54] and a contract and ensures that our employees will be

[5:55] paid a salary that allows them and their families to

[5:56] live in santa clara valley with dignity and respect.

[5:57] thank you.

[5:58] >> thank you.

[6:06] I would like to thank michel and say, she kept it to two

[6:07] minutes and I'm requesting everyone to do the same.

[6:20] si?

[6:25] when would you like to come, I will put you on the

[6:26] bottom?

[6:28] >> good morning.

[6:30] I vanessa and I a program specialist for almost 7 years.

[6:47] what I wanted to discuss today is the recent issue of

[6:48] customer service.

[6:49] it seems it's been a hot button topic lately.

[6:50] and I myself kind of feel that the finger has been

[6:51] pointed on the specialist and housing assistance but, I

[7:09] think we should think about what the recent changes that

[7:10] occurred that have cost this outcry from the community

[7:11] about this lack of service that they feel they are

[7:12] receiving.

[7:13] many of the people in her agency have been here for five

[7:14] years and this is a new issue.

[7:20] and since the majority of staff has not change I would

[7:25] like to think of what has teams that may have

[7:26] contributed?

[7:27] one thing we do not longer have manager, supervisor

[7:32] meeting.

[7:39] the goal of that change to stop all meetings was to

[7:40] improve customer service meetings.

[7:43] we need to think, has that goldman achieved?

[7:48] our work process have changed, we've begun the

[7:49] implication of the process meaning that, housing program

[7:56] specialist now process a file from beginning to end when

[8:06] the applicant is determined to be eligible to become to

[8:07] the program all the way that they determined, for

[8:08] whatever reasons they are not eligible.

[8:18] it was anticipated that this change would decrease a

[8:19] workload on staff, however, the majority of my

[8:20] colleagues to not agree that this has happened.

[8:25] when I calculated this outcome of the case lowes has

[8:26] decreased by 30-40 families.

[8:31] it may sound a lot but when you handle 400 families, and

[8:32] does not make that large of an impact.

[8:41] initially, it sounds like a decrease but what has

[8:42] occurred is large task to take up a lot of time and have

[8:43] been shifted to specialist.

[8:52] and then the additional new referrals have committee

[8:53] created --mitigated any referrals.

[8:54] we do not have the ability to retain staff.

[8:58] new personal come into the staff there giving full case

[9:14] load and given responsibility without training.

[9:15] these changes have been over wyoming for the season

[9:16] staff I cannot imagine how the new staff must feel.

[9:17] apparently the lack of retention tells us how they feel.

[9:18] they are leaving the agency.

[9:19] >> this is two minutes.

[9:20] thank you.

[9:21] >> thank you.

[9:36] hi, thank you for letting me address your name.

[9:37] my name is john and I've been here around 19 months.

[9:38] I've earned two college degrees.

[9:56] I also worked at two housing authorities at a couple

[9:57] hosteling nonprofits.

[9:58] the reason why bring this up is because a housing

[9:59] authority has stated that they wanted to obtain and

[10:00] retain qualified and experienced workers.

[10:01] but going beyond the rhetoric and looking at what's on

[10:02] the papers looking with the action, actions such as

[10:15] proposing cuts to a benefit, attacking our requirements

[10:16] and retirements.

[10:17] undercutting her wages and more importantly denying the

[10:18] most experienced worker a cost-of-living increase.

[10:23] to state the obvious, we live in one of the most

[10:24] unaffordable places in the united states.

[10:29] to me, this does not spell out the competitive nor even

[10:40] retaining people.

[10:41] I also wanted to share with you guys in the last two

[10:42] weeks we have lost five housing specialist from her

[10:43] agency.

[10:50] requesting that the board can involved, too, ask

[10:51] questions and three, help us achieve a fair contract.

[10:52] we also are requesting that management provide us

[11:02] additional days to negotiate the contract as of now

[11:03] we'll have one schedule contract negotiation date which

[11:04] is in june.

[11:05] thank you very much.

[11:09] >> susan cartwright, no shaun cartwright.

[11:41] the current all the way home program causes to secure

[11:42] homelessness.

[11:43] it causes displacements and perhaps even death just

[11:44] based on the information that we've tracked down

[11:45] ourselves from the family alone at four properties in

[11:46] san jose and three in santa clara have cleared about 60

[11:47] units not people units.

[11:48] two men that's the majority of these fats were not

[11:53] homeless, they came from other homes they knew they were

[11:54] moving into the units for 3 to 5 months and now these

[11:55] fats --and they replace people who are rent-controlled

[12:01] or painted long run for the area.

[12:06] now these fats are caught in the middle.

[12:07] they're terrified to go to loser housing again.

[12:08] some of them are the maximum level and there are afraid

[12:25] that the rent will be raised and they will be homeless

[12:26] once again.

[12:27] we spoken to catherine and her counterpart mona at the

[12:28] va and both seem unable or unwilling to change the

[12:29] system which is why we are here today and doing media.

[12:34] on behalf of paul mayer the 92 veteran been evicted and

[12:35] who we all feel may die because of the stress of force

[12:36] leave his home of 44 years, I ask you to close a

[12:43] loophole that allows people like the greedy the males to

[12:44] profit out of other people's pain and plight.

[12:45] >> thank you.

[12:49] corey?

[13:02] >> good morning.

[13:03] I'm here because of the d my old family and their greed.

[13:04] I homeless because of this family and their great.

[13:05] it's that simple.

[13:12] the impacted my entire apartment complex on this war

[13:13] they would not do that, they came in give us also today

[13:14] notices and then refuse to give us our deposits back of

[13:17] the eventually dad we had to fight for the couple next

[13:20] to me they have a special needs daughter who had they

[13:29] had to concentrate on and find a new place for her, they

[13:30] couldn't find anything they just had to get out and get

[13:31] a new place and start over again.

[13:40] none of this had happened it wasn't for the greed of

[13:41] this family.

[13:42] it's not about housing, homeless veterans is about them

[13:43] making more and more money and because of them, I'm not

[13:45] homeless.

[13:46] I'm working, but I'm homeless.

[13:58] you can change that, not my situation but their

[13:59] situation and hopefully family situation because I'm

[14:00] single and I don't have kids.

[14:01] there's family out there and shelter due to this family.

[14:02] it's up to you to change that, I can only do so much I

[14:04] work full-time but like I said, I homeless and I'm

[14:09] trying to change that as we speak.

[14:14] being single without kids is a little bit easier on me

[14:17] but there are plenty of families out there that are

[14:18] struggling there now living in shelters that should be

[14:26] but are because of this family.

[14:27] thank you.

[14:28] >> thank you.

[14:38] I'm sorry by men's pronounces last name.

[14:41] it's okay.

[14:56] good morning I live in san jose as part of the

[14:57] investigative team that was looking into the this family

[14:58] properties, we initially starting looking into it

[14:59] because of the claim that they were renovating the

[15:02] properties and that's why they were evicting all the

[15:03] tenants.

[15:05] we were talking to the folks and a lot of them had no

[15:06] idea that these veterans knew that they were taking the

[15:09] place of someone who had been affected.

[15:13] they thought that they were coming into clear units when

[15:19] we started 10 him what happened, they felt bad.

[15:26] they heard about the 92-year-old veteran being kicked

[15:27] out and they themselves as veterans felt bad because

[15:30] they know how hard it is.

[15:32] it was shocking because I used to work for --in the

[15:38] partner project all for all the way home project and I

[15:48] was proud because I think it's a very good mission it's

[15:49] important for veterans to come back and have that you

[15:50] know, confidence at the will be house.

[15:57] but to displace other people were not accomplishing

[15:58] anything.

[15:59] I think this is something I need to be closed and this

[16:11] happened prior to the alice act and the know cause a

[16:12] bitches those just passed by san jose.

[16:13] it's important to kind of do this retroactively and stop

[16:14] this once for all.

[16:15] and really fix the problem of housing people and prevent

[16:16] homelessness.

[16:17] thank you.

[16:20] thank you.

[16:22] jamie.

[16:28] thank you.

[16:42] I jamie and I'm an homeless advocate and I was with the

[16:43] abyss a good team we were actually there on the first

[16:44] property where we figured that the veterans were being

[16:45] put in and other people are being displaced.

[16:53] the lead to other properties and I was at the second

[16:54] property is on really poor living conditions.

[16:55] there was glass outside there were doing some

[16:56] construction without permits and really young children,

[16:59] there were nails of the gutter was falling off and it

[17:00] was really important condition.

[17:01] it was kind of sad to see these families they had to be

[17:20] in a hotel over a month, thank goodness for set jos

[17:21] housing department they put them up in a hotel but

[17:22] that's because of our connections but the family that

[17:23] did not have the connection they could of been living in

[17:24] a car or shelters.

[17:25] it's important that we fix this loophole also, with the

[17:26] trump cuts, we really hope that there is any cuts to

[17:28] housing.

[17:29] I grew up on section 8 and I'm working and I'm working

[17:30] in the committee and it's really important the families

[17:38] have homes and my mom is currently on housing now with

[17:39] my nine-year-old sister and thank goodness for that.

[17:59] thank you kathy.

[18:00] I have not been here for a long time but as jamie

[18:07] mentioned --we have mr. Jamie we really felt ignored

[18:08] actually.

[18:11] >> trust me, I'm going to do a lot better for the months

[18:12] coming up because actually what jamie mentioned about

[18:24] the cuts they're extremely serious there more serious

[18:25] documents which are coming out in our more serious and

[18:26] what we heard about even before we had a big event at

[18:27] the college were catherine presented about the cuts and

[18:34] what can be done about them.

[18:40] the main answer that people came up with is that we got

[18:41] to come together.

[18:47] we got to come together with the tenants, the tenants

[18:48] got to get organize which is my job and that's

[18:49] uncommitted to do but we also need the cooperation of

[18:52] the commissioners and all the agencies that we work

[18:56] with.

[18:57] I would like to thank you for participating and that I

[19:06] think this issue is extremely important.

[19:07] it's kind of a scandal that's been going on for a while

[19:08] and I don't think that it's over yet.

[19:13] I think it's important for the housing authority to find

[19:14] a way to address it.

[19:15] I do not know the legalities of it but something needs

[19:18] to be done.

[19:19] you cannot house some people by making other people

[19:34] homeless, that the pizza purpose.

[19:35] part of our whole process here as I said, we need to

[19:36] bring people together and to bring people together, we

[19:37] cannot allow the perception that we are cooperating with

[19:38] these bad actors.

[19:45] the family is so bad we were discussing this in san jose

[19:46] and our discussions of just cause.

[19:47] some of the landlords even said, when we pass, they

[19:54] wanted to have a was called a tenant protection act they

[19:55] said we passes active, will call it the de mayo tenant

[20:00] protection act because they are so notorious.

[20:02] I think it's important to take whatever action is

[20:06] practical to put a stop to this.

[20:09] thank you very much.

[20:13] thank you.

[20:16] so, I have been involved in my role with the campaign

[20:23] and I want to say to shaun and your colleagues at you

[20:24] really did a lot of work to make this issue public and

[20:35] in the forefront and you help me understand things that

[20:36] I did not know and I'm really grateful to your advocacy.

[20:40] we and I take this seriously and we've already been

[20:41] talking about this.

[20:43] just know I grateful to you.

[20:54] so, we need to I can die this for a future meeting?

[20:55] yes.

[20:56] I have already asked for that in a previous meeting.

[21:00] with the city of san jose of you recall when patrick

[21:01] reported last month about the just cause there was every

[21:03] quest to bring that back and also report on how would

[21:06] work with her voucher leasing system and frankly there

[21:14] is a set of landlord incentives there are part of all

[21:18] the way home campaign and there's another one that we

[21:22] have just approved as part of a move to work activity.

[21:36] putting that all together and having the city

[21:37] participate and I would anticipate that I'll probably in

[21:38] august board date.

[21:39] we have budget in june, nobody july so it's probably

[21:40] gonna be august the best opportunity for us to collect

[21:41] information.

[21:42] it would also give the city time to get their

[21:45] enforcement up and running.

[21:54] I will have a motion for approval of the minutes.

[21:58] one second, before you go to that we heard some

[22:02] statements about retention, can we get that on her next

[22:06] meaning I would like to get some facts if we have a

[22:14] retention issue and what it looks like it's and what the

[22:18] rates are you now by unit chris mark we have actually

[22:21] pull that data will happy to provide it to commissioner

[22:29] anderson is addressing employee retention.

[22:35] I want to start with the facts so, I need some factual

[22:36] information and you can compare it to the retention or

[22:46] whatever you want to compare it to.

[22:47] I would like to have something that gives me some

[22:48] information about it's an allegation.

[22:52] absolutely we, we can do that.

[23:01] >> do we have a report on the negotiations?

[23:02] at the end of the board meeting we were going to talk to

[23:03] you about scheduling a special meeting on the operating

[23:13] budget and that would be a good opportunity for us to go

[23:14] back in a close session.

[23:15] at this point, we did not schedule a close session

[23:16] because we have not received a proposal from labor.

[23:17] we are kind of waiting for things.

[23:26] for things to mature.

[23:27] people made specific suggestions and I do not want to

[23:28] comment on the two minute but I concerned about some of

[23:34] the things that they said.

[23:35] at some point, I would like either a close session we

[23:36] can discuss what's going on.

[23:38] at the end of the board meeting we can do this.

[23:43] thank you.

[23:44] any other comments regarding the employees or regarding

[23:48] our rental loophole?

[23:54] >> is there a way, can we get those comments submitted

[23:57] that people presented today?

[24:02] >> I'm not sure what you mean?

[24:08] >> those that came forward and had their two minute

[24:09] presentation is her way we can have those submitted

[24:18] four--

[24:19] >> everything that is in the board meeting is a recorded

[24:20] on audio.

[24:21] you can go back and listen to it if you like.

[24:22] >> thank you.

[24:23] >> okay, anymore discussion discussing our public

[24:38] comments?

[24:39] I will go to the approval of the minutes is there a

[24:40] motion?

[24:41] >> move approval.

[24:42] >> second.

[24:43] commissioner anderson the motion was made and who

[24:44] seconded?

[24:45] all right, commissioner loving.

[24:46] mine.

[24:48] all in favor say yes?

[24:49] motion passes.

[24:54] we will have our verbal report from the executive

[24:55] director.

[25:10] >> good morning I going to try to move this along.

[25:11] I just want report that last month the board gave us

[25:12] authority to put in a bid on a small parcel of property

[25:13] nearby.

[25:14] with the hope so we can secure some additional parking

[25:15] spaces.

[25:25] the actual bit that one was twice, more than twice of

[25:26] what the asking price was.

[25:27] we did not win it.

[25:28] secondly I want to let you know that may 11 was bike to

[25:30] work day, and we can pass at around.

[25:31] this is a photo of the participating employees,

[25:39] stephanie shaw usually participates and I missed her

[25:40] this year I don't know why.

[25:50] I wanted to highlight the affordable housing week

[25:51] events, the housing authority was a sponsor the event we

[25:52] also participated in other events.

[25:55] we had the breakfast, we shorter faces of affordable

[25:56] housing video and I was on the panel that afternoon

[25:59] regarding measure a with supervisor chavez and wayne.

[26:06] we also attended at one of our senior facilities, there

[26:13] was a health trust presentation with life steps on the

[26:24] food security issues.

[26:25] if you can pass it around, this is a handout.

[26:26] specifically, would senior population trying to resolve

[26:34] food insecurities and life steps has been working with

[26:35] health trust under some pilot projects to organize the

[26:36] seniors, our residents to go and become kind of a second

[26:38] harvest food bank center.

[26:40] it's been very successful.

[27:00] I was on a panel with sandy perry on federal funding

[27:01] cuts choose a night, and then we also attended an event

[27:02] with west valley community services.

[27:03] one of our staff attended that amount unfortunately it

[27:04] was a rumor circulating that people, batches are going

[27:06] to be available.

[27:07] our staff member had to answer 100 people and say no,

[27:16] I'm sorry you receive some bad information.

[27:17] that one was not so good.

[27:18] finally we had a movie night and we show time out of

[27:19] mind which is a story a street homelessness in new york

[27:24] city.

[27:25] it was a really moving story.

[27:32] I think that concludes our week events that we as an

[27:33] agency participated in and then I wanted to echo the

[27:37] thanks to the commissioner for helping me and organizing

[27:38] our newspaper coverage of our 50th anniversary.

[27:49] >> it was really a wonderful week.

[27:50] I really thank all of you who attended those events.

[27:52] the breakfast was really well attended and I really

[27:55] enjoyed the whole event.

[28:04] okay, we have a verbal report from the county of santa

[28:05] clara.

[28:06] mr. Kitty.

[28:09] >> good morning.

[28:10] over the last few months the county of santa clara has

[28:11] been working with the housing authority to begin to

[28:18] implement measure eight which is really setting the

[28:19] stage for how we achieve the counting's housing parties

[28:27] and the club goals that we all as a community have

[28:28] adopted.

[28:31] surely there's some technical pieces which conclude,

[28:40] what are kind of the guidelines for our investments what

[28:41] is the minimum number of supporting housing units for

[28:44] development etc.

[28:45] pick another piece that is often overlooked is this

[28:49] development of a share set of goals.

[29:03] when all the jurisdictions endorse a plan, there was a

[29:04] goal of creating 6000 housing opportunities and among

[29:05] those there was a goal of new development a total number

[29:10] of new units.

[29:18] with the passage of measure a, we have begun to revise

[29:19] our production targets and one of those key targets is

[29:23] to the creation of between 1800-2000 units of permanent

[29:34] supportive housing for homeless persons with disabling

[29:35] conditions and other persons who are at risk of homeless

[29:39] and who are disabled.

[29:43] even before the proposed budget from the trump

[29:49] administration, we all face a lot of uncertainty.

[29:53] uncertainty from budget cuts, tax credit pricing,

[29:59] availability of impact fees a bell ability of land so

[30:12] even though we set these goals we have to work towards

[30:13] him and it takes a lot of effort.

[30:14] now, now that we have measure a this extreme partnership

[30:18] with the housing authority and the city path --san jose,

[30:26] now is our one opportunity to achieve those goals and I

[30:27] think that we all have to try to adopt and endorse those

[30:29] goals and then try to manage the resources that we have

[30:41] now and try, if necessary, get back in the future in

[30:42] order to meet those goals.

[30:49] we are thinking about 1900 units of permanent supporting

[30:50] housing.

[30:51] but more broadly, we think that there will be 4800 units

[30:56] of housing affordable to extremely low housing and

[31:02] persons and we think that over the next 10 years, we

[31:03] will have to finance or construct 120, hundred 40 new

[31:10] developments.

[31:15] our goal is to finalize the goals and finalize the

[31:20] program guidelines by the end of june an issue a notice

[31:26] of fighting ability and have the first issuance of the

[31:27] pound in 2017, while we can make commitments of the bond

[31:31] funds prior to september 2017 the first ability to

[31:35] convey funds will be in the fall.

[31:38] I am happy to answer any specific questions you have

[31:43] about the bond implementation or maybe come back on

[31:47] another time, talk to individual board members about

[31:55] what we are doing with our program in conjunction to the

[31:56] housing authority.

[32:00] >> okay.

[32:01] how you formulate the 1900, is that also include the

[32:07] state of the budgets as we speak, as of today?

[32:15] the budget cuts, the federal budget cuts?

[32:18] >> the goals are based on the numbers we set forth

[32:27] initially in the committee plan adjusted for the

[32:28] additional funding that we have to measure a.

[32:30] the question is, do we have enough money?

[32:40] I'm not sure, do have enough money at the state and

[32:41] federal levels?

[32:42] not sure.

[32:49] but I think, we have to set the goal and move towards it

[32:50] versus tronic calculate how much money we have and then

[32:51] setting the goal.

[32:52] because, well--

[32:58] >> we understand the uncertainty.

[33:00] I would like to have it's possible and perhaps another

[33:02] meeting if you would be willing to take 30 minutes or so

[33:07] and actually agenda highs a little tutorial on what's

[33:11] going on.

[33:13] you've covered a lot of ground and shame on me have not

[33:18] been doing my homework what's going on with the county

[33:21] but I would like to know more about the different moving

[33:24] parts your 1900 looks like, something about the bond

[33:38] issue and so on.

[33:39] as context for us to be able to make informed decisions

[33:40] about what is it we want to do and can do to help you

[33:41] get, all of us could from here there.

[33:45] >> sure I'm happy to work with catherine and her staff.

[33:57] >> yes, that would be an opportunity for us to really

[33:58] put our arms around it because right now I not sure

[33:59] exactly how we arrived, how we get to that point.

[34:11] >> thank you.

[34:12] mdm.

[34:13] chair, I was wondering if we could move to the items for

[34:14] discussion b1 and b2 and postpone the house and

[34:15] department report because I know that we have one

[34:19] commissioner who has got to catch a flight at 11

[34:20] o'clock.

[34:21] >> okay.

[34:30] we are going to amend it and take items be one right now

[34:31] so we can make sure that we have a full contention of

[34:32] commissioners voting on this.

[34:33] I move approval.

[34:39] >> do we have a second?

[34:40] >> second.

[34:41] it's been moved and second any discussion on when a

[34:43] vista mobile home per park purchase?

[35:03] we are talking about --it's page 41 in your packet a

[35:04] goes through 113.

[35:05] it's the entire purchase and sale agreement.

[35:06] it was a lot of work on everyone's part including our

[35:07] general counsel because our real estate council left the

[35:08] country.

[35:15] he got the fun part of finalizing the exhibits and on

[35:16] the last nips and tax.

[35:17] it was a lot of work.

[35:18] >> commission anderson moved, drive a second?

[35:19] commissioner o'neil.

[35:20] we are not into discussion any questions?

[35:24] >> just by way of comment we've heard a lot about this

[35:25] already so I don't really need for any further

[35:29] information myself.

[35:34] I can go further and say that I think that this was a

[35:36] very skillful piece of work very well executed those a

[35:47] lotta dragon to slave from here to there to make this

[35:48] happen it's a good thing it's a right thing to do.

[35:49] the numbers right I'm not a number sky and this number

[35:52] six we just fine.

[35:53] I'm happy to make the motion and see the purchase go

[35:55] forward.

[35:59] >> okay.

[36:00] anymore discussion?

[36:04] okay.

[36:05] >> I would like to say thank staffing catherine.

[36:07] when this first came up and they raise issue and look

[36:22] like we were never going to get there and so again,

[36:23] kathryn, brian iyer staff that worked on it an amazing

[36:24] job.

[36:25] it's really a good result in a makes a housing authority

[36:26] person separate dissipated in this look pretty good.

[36:31] city of palo alto, that's amazing.

[36:32] >> it was a collective effort and the commissioner is an

[36:37] amazing ally.

[36:38] >> I also wanted to comment, during the week affordable

[36:51] housing celebrating that with this purchase agreement

[36:52] was amazing.

[36:53] it was a timing, the location, everything.

[36:54] I want to commend staff as well on this entire process.

[36:58] it was not easy.

[36:58] >> this problem, the issue of when a beast a goes back

[37:01] so long ago and it's amazing to have, to be able to

[37:05] witness a solution.

[37:13] it's just amazing.

[37:14] I want to thank all of our allies and I want to thank

[37:15] supervisor for taking charge and releasing this through

[37:21] and really being a great ally for the housing authority.

[37:29] >> I'm not a religious man but I want to thank god that

[37:30] hud will give us a research for this to make up the

[37:37] difference between the city.

[37:38] >> we will need a roll call vote I believe on this.

[37:59] okay.

[38:01] we are now, on one, one for we will look at the except

[38:07] the report on the executive director.

[38:14] and improve recommendation for the hundred and 80 day

[38:17] expiration date.

[38:19] >> thank you.

[38:23] on page 5 the report on earth funding use.

[38:30] we are currently serving 94% of a prorated baseline and

[38:36] we are using let me turn the page, 96% of the funding

[38:46] that we currently receive from hot.

[38:54] we have 571 households with what we call a shopping

[38:55] voucher currently looking for housing and if we lease

[38:57] this up tomorrow we release-happen that's a little too

[39:01] close to comfort for us.

[39:06] and additional budget cuts which we do not know what the

[39:07] federal budget is going to land that we all are

[39:13] cognizant of the fact that we have a federal debt and

[39:20] interest payment on the tap that compete for the

[39:21] different budget priorities of this country.

[39:26] if you have a presidential agenda that wants to support

[39:27] defense expenditures that wants to support

[39:30] infrastructure expenditures we have seen the headlines

[39:37] that in 2018 the proposal is that we cut social service

[39:39] and the safety net dollars.

[39:44] one of the measures that we are recommending we did an

[39:47] analysis of the folks with the shopping voucher's and

[39:58] their people who had the voucher and have been looking

[39:59] for more than a year.

[40:00] burp folding it to full strategy number one that the

[40:01] board approve an agreement to provide housing search

[40:03] services for these folks who been looking for a very

[40:04] long time and that we also reinstitute the expiration of

[40:16] the voucher.

[40:17] in other words, every household cannot locate housing,

[40:18] we will take the voucher back and either give it to

[40:19] somebody else so we just take about your back because we

[40:25] don't have money to support that voucher.

[40:26] usually, when you have a radical coal cutting you can

[40:32] look at every shopping and pull that back.

[40:33] that's one of the first things that you would do.

[40:40] I don't know will have consensus in the federal level

[40:41] for extreme budget cut but this is just one of those

[40:42] things that we can put in place to get ready.

[40:48] what this measure does, it appointed disruptive cut down

[40:49] the line when the funds are cut just cutting off the

[40:50] voucher.

[40:59] instead, were proposing that we use our current

[41:00] resources to do what we can to help those find housing.

[41:01] our suspicion is that these folks have had their voucher

[41:09] for more than a year probably have some other barrier

[41:10] that is preventing them from being able to lease up were

[41:11] hoping that they'll be able to respond to that on two

[41:16] levels.

[41:17] number one, help them find housing because they been

[41:18] doing it and number two help to work through whatever

[41:19] barriers that may be preventing them from sealing the

[41:26] deal with the landlord.

[41:27] we are proposing, the standard hud limit is 60 days.

[41:48] where proposing 180 days.

[41:49] right now have no libido at all.

[41:50] every 60 days a household be required to check in on the

[41:51] housing search efforts which is a required to do now to

[41:52] keep their voucher, but after hundred 80 days their

[41:53] voucher would expire unless they have a reasonable

[41:54] accommodation request or some kind of mitigating

[41:55] circumstance.

[41:58] the proposed admin plan change is attached on pages

[42:05] 118-122.

[42:20] if you have any questions, we have a policy staff here

[42:21] but we will try to answer them.

[42:22] >> can you comment on affordability?

[42:23] >> yes.

[42:24] it is possible if somebody has a housing voucher and

[42:25] they been searching for a very long time that they can

[42:26] use the voucher and poured out of the county and

[42:33] contract with another house already for housing

[42:34] resources may be more available.

[42:35] if the voucher is being issued to someone on the

[42:36] waitlist who is currently out of county, there's a

[42:38] requirement that they find an apartment in santa clara

[42:41] and live here for one year?

[42:50] yes, when year so that would be a portability

[42:51] restriction for those families but what we are focused

[42:52] on is a folks have been looking for a year.

[42:56] >> okay.

[42:57] any discussion?

[42:58] do we have a motion?

[42:59] sure.

[43:05] >> the number was in here, what was percent of the

[43:06] people who are looking that have been had a voucher for

[43:09] more than a year.

[43:15] janine would you like to come up?

[43:23] >> I think it's on page 116 is on page 11750 that are

[43:36] more than six months old.

[43:38] and I think of that amount about 50 or more are a year

[43:50] old.

[43:51] lesson 50.

[43:52] >> and I recall the first at this we had quite a few

[43:53] people from the community talking to us with a problem

[43:55] when there are landlords willing to rent and we should

[44:02] be taken the voucher away.

[44:03] we had to three meetings where that was an issue.

[44:08] and then we came to this proposal that we have now.

[44:12] I'm not sure, are we going to go back to people coming

[44:13] in.

[44:24] people that cannot find a place?

[44:25] >> that's a good question but a few things have changed.

[44:26] our payment standard is increase over competitive.

[44:28] our rental market is softening a little but it is

[44:29] softening.

[44:30] the county and I think the county adopted an ordinance

[44:37] against discrimination on source of income and I think

[44:46] other cities and other communities are looking to also

[44:47] reinforce that and then we also have the issue of just

[44:48] cause evictions now being local ordinances that will

[44:52] support the retention voucher.

[44:53] we've had some change, I cannot tell you that people,

[44:56] complain but there is a point if we don't have money, we

[45:05] do not have money.

[45:06] if people are not using these funds there may be

[45:07] somebody waiting in line who can.

[45:12] >> the way I understand it if somebody was at the six

[45:13] month.

[45:14] then what they be assigned to help them with this help

[45:17] them before they had their six months?

[45:28] >> the idea is for those people who already have about

[45:29] your more than six months, they will get another 60 day

[45:30] extension and we wouldn't just cut them off because they

[45:34] had the six months.

[45:35] during that time that will work to try to get help and

[45:37] find a house.

[45:41] moving forward, if the board adopts is, the bad men plan

[45:45] moving forward any new vouchers issued would have a six

[45:52] month maximum.

[45:53] >> nobody would just have their voucher pulled out

[45:54] getting notice or opportunity to work to find a place

[46:04] and work with some of our stuff?

[46:05] >> that is correct.

[46:06] >> commissioner, I'm good have to leave but I in support

[46:07] of trying this I would like us to understand after we

[46:10] implemented.

[46:11] shall we approve it after about six months to understand

[46:19] this is disproportionately affecting special needs

[46:20] population?

[46:21] I would like to know what these barriers are we should

[46:26] know for example if it's people that have severe mental

[46:40] illness that that makes using this voucher.

[46:41] I think it would be worth monitoring and reporting back.

[46:42] I do not know when you're going to vote but I don't know

[46:43] I can say yes right now.

[46:48] >> it may make a comment.

[46:49] go ahead commissioner anderson.

[46:54] >> I just wanted to say what jennifer just said and even

[46:57] further and say wanting to get feedback as to how

[47:06] effective you going to pay that amount to have folks

[47:14] assisted.

[47:15] we want to know is that rules along whether or not it's

[47:17] working or not.

[47:22] how much bank are we getting for our buck.

[47:23] having said that they asked some good questions to me

[47:27] and that is that a, there's a good reason to do it.

[47:34] we got a limited resource and there's always folks who

[47:35] are fine for the resource.

[47:39] how long is long enough to have no limit seems to me

[47:44] does not make any sense at all given the changes in the

[47:45] marketplace and going hundred 10% of the numbers and all

[47:50] that.

[47:52] it feels to me that this is another skillful effort to

[47:58] look at a hard question and come up with something that

[48:00] makes sense.

[48:05] it could be difficult for some people but then at the

[48:06] same time off from a hand in finding a place to stay.

[48:11] and then some metrics as we look over the shoulder.

[48:17] I move that we go along.

[48:30] >> you move approval?

[48:31] do we have a second?

[48:32] >> we will still continue the discussion.

[48:33] okay, commissioner o'neill seconds.

[48:36] commissioner gardner?

[48:37] >> I just wanted to comment and bring forth the idea I

[48:38] guess the question is are a landlord incentives can they

[48:43] be applied to the hundred and 50 recipients?

[48:51] >> our landlord incentive is if the landlord leases from

[48:52] one section to another section tenant, were encouraging

[48:59] aren't senate tip is to encourage ongoing leasing to

[49:00] section 8 that's the way it works.

[49:13] I think we start going into other kinds of landlord

[49:14] incentives to make connor other consequences which we

[49:15] heard a lot about this morning.

[49:16] I would be cautious to start throwing those out there.

[49:20] the thing about this, they been working in the community

[49:21] on some county projects to serve very difficult, special

[49:28] need population will have a little difficulty

[49:29] navigating.

[49:31] I think that they have contacts are landlords they

[49:35] specialize in the mom-and-pop and I hopeful if there is

[49:41] a path forward for these folks that this is the

[49:44] organization that can help them get there.

[49:48] >> the conclusion to that would be, it would be

[49:52] interesting and helpful to understand that relationship

[50:02] between the search in the landlord and possibly getting

[50:03] some idea of what that difficulty was in the permanent

[50:06] housing, between the shopper and finding that right fit

[50:15] for the landlord.

[50:16] >> when we bring the report back in six months perhaps

[50:21] we can have them come to the meeting and describe what

[50:22] they seem.

[50:25] >> I have one other question.

[50:40] are all the people with vouchers now shopping, not just

[50:41] want to have had them for a year or even six months but

[50:42] are all the people who have certificates now regardless

[50:43] of the time that the panel are they going to be able to

[50:44] access this?

[50:49] >> the way we have a currently is that we are going to

[50:57] have them focus on the people who have their voucher for

[50:58] six months or longer.

[50:59] and then moving forward anybody who gets their voucher,

[51:04] once it hit that hundred and 20 day mark they have 60

[51:05] days ago and that 60 days to be concentrated with this

[51:14] access.

[51:15] >> one thing that you bear in mind the summer is a big

[51:16] moving month.

[51:21] there's a lot of activity in the summer months and there

[51:22] will be a lot of families would shopping vouchers were

[51:23] going to be moving because that's what they do.

[51:26] we are targeting those that have had their voucher for a

[51:27] very long time.

[51:32] >> all right, it's been with second and we ready for the

[51:33] question, all in favor first of all it's two-part.

[51:39] reinstate the hundred 80 expiration date as well as

[51:46] delegate authority to our executive director to contract

[51:47] with a not to exceed $650,000.

[51:53] that's the two-part motion all in favor say I?

[51:57] that passes.

[52:01] now let me just ask you this.

[52:07] we have a time certain at 11.

[52:08] I was wondering if we can, we have a time certain at 11.

[52:16] were going to take a five-minute break and that will

[52:17] take up the consent calendar and after that the video

[52:23] before 11?

[52:24] okay, can we do the video?

[52:26] >> you have three other things on your business

[52:29] calendar.

[52:30] >> I know.

[52:32] >> we can do the video any time.

[52:34] >> can we do the video-- I guess after.

[52:46] >> that is three business items shouldn't take too long.

[52:47] if you want to finish the condor.

[52:50] >> then we can do the other three quickly and then the

[52:51] video?

[52:57] you think we can do it till 11 o'clock?

[52:58] >> the thing about a time certain you cannot stop

[53:05] earlier but you have to start 11.

[53:06] it we starting 11:10 that would be okay.

[53:07] >> were going to have a five-minute break.

[53:15] okay.

[53:16] we will call the meeting back to order and will take up

[53:17] the consent calendar.

[53:19] any questions on the consent calendar so we can

[53:26] entertain a motion.

[53:27] >> we can take two minutes we have amanda gallo one of

[53:30] our policy and less and she wanted to highlight the

[53:34] baseline and funding utilization.

[53:42] >> good morning board.

[53:43] >> what page, what item?

[53:44] >> it starts on page 5.

[53:46] good morning.

[53:47] I amanda gallo I'm a senior analyst and you might

[53:55] recognize my name I'm usually the one that submits a

[53:56] housing department reports each month.

[54:10] we made a few changes based on what we found out from

[54:11] the hot proration of our yearly budget.

[54:14] under and tw agreement had the term is what we are

[54:21] provided yearly for funding and this amount is reduced

[54:25] or prorated based on congressional each year.

[54:31] four 2017, were projecting to be probated at 94% of

[54:35] funding.

[54:38] if we look at her baseline including the project base

[54:45] bouncer project at full funding is 16,671.

[54:48] they we take 94% of this baseline, we will have 15,670.

[54:57] we wanted to do this to get a realistic picture of what

[55:02] our actual lease rate is based on the proration.

[55:10] it will use a prorated baseline our lease separate

[55:11] including project base vouchers is 91%.

[55:16] also, wanted to highlight --bam I'm sorry.

[55:19] I was trying to do the math.

[55:22] the numbers you gave us-- I seem different numbers.

[55:41] >> usually we try to put in our special program report.

[55:42] you will notice the numbers are little lower in the

[55:43] first section but to give an overall I guess a view of

[55:47] what the housing choice voucher is we wanted to at the

[55:48] project base voucher.

[55:51] it just goes up if you remove the hundred and 30, the

[55:54] project base vouchers are prorated lease separate is

[56:05] 90%.

[56:06] if you add them in a goes up to 91%.

[56:07] >> thank you.

[56:11] we also wanted to highlight, we are at 96%, using 96% of

[56:17] our monthly hat funding, it release up to 571 shopping

[56:23] vouchers will be at 100% of the funding.

[56:26] this is something to be aware of in the upcoming month.

[56:32] this, just in case of a kos agency has some curb.

[56:35] any questions?

[56:38] >> no.

[56:39] thank you.

[56:42] we look at this on the review but I didn't say anything

[56:57] and I did leave the room confused but now I get it.

[56:58] >> one of the reasons why this is important, one of our

[56:59] requirements as a moving to work agency's that were

[57:00] required under the law the federal law, to serve

[57:09] substantially the same number families as we would if we

[57:10] did not have a single fund flexibility.

[57:11] the single fun flexibility allows us to make up for some

[57:12] of the deficits that comes to us as a result of the very

[57:16] low proration on the administrative fee side.

[57:31] what amanda didn't highlight is that while congress may

[57:32] appropriate 94% on the rental side, they're only

[57:33] appropriating 77% on the admin fee side.

[57:34] and then you only are entitled to those funds once the

[57:35] household is lease.

[57:37] there is a lot of work to be done.

[57:43] in the last motion we approve expenditure of funds to

[57:44] help family search for housing.

[57:50] that is something that we pull out a rental funds in

[57:51] order make that happen.

[57:52] we will be highlighting this more and we talked about

[57:59] the possibility of sketching-I've been scheduling a

[58:00] special meeting and we'll talk about this more at that

[58:01] time.

[58:04] the second thing I want to highlight is what were

[58:05] operating under a 94% proration the appropriation for

[58:10] 2017 was finally made hud is currently paying us under

[58:15] that 94% proration but based on the budget that was

[58:19] approved for 2017 we do not have by final numbers we

[58:22] think it may inch up a pointed to seward waiting to get

[58:29] those numbers in.

[58:30] we will not even talk about 2018.

[58:38] >> okay, do have it any other questions regarding the

[58:39] consent and the house and report?

[58:44] >> I like this report we asked for more information a

[58:45] long time ago when you expand the report and because the

[58:48] math is something a little complicated if you're not top

[58:58] of it it but you give us enough information so we do our

[58:59] homework we can read this memo and forget was going on

[59:00] and were following it month-to-month for getting in a

[59:02] real time you get some good graphics and here.

[59:07] this is your product primarily good on you amanda.

[59:16] >> I did have a question as far as the page 7.

[59:21] are we going to want to that.

[59:28] >> we normally don't discuss this report in detail but

[59:29] it a question?

[59:37] >> on april and reading this, is that as of april or

[59:38] actually in the month of april.

[59:39] >> during the month of april, yes.

[59:46] >> I wanted to commend the finance reports as well.

[59:47] it was a really thorough description of where we are and

[59:53] I know the future we may not have these wonderful

[1:00:01] figures but I commend you.

[1:00:02] I think the figures are great and looks like we are in a

[1:00:03] solid financial, good financial ground here.

[1:00:04] thank you.

[1:00:10] and thank the staff also for pulling that together.

[1:00:16] okay.

[1:00:17] I will entertain a motion for the consent calendar?

[1:00:18] okay, we move approval do we have a second?

[1:00:27] commissioner anderson seconds all in favor of approving

[1:00:28] the consent calendar say I?

[1:00:33] it passes.

[1:00:34] we will move on to items be three.

[1:00:41] starting on page 123.

[1:00:44] the bylaws.

[1:00:48] >> good morning.

[1:00:53] this is a result of previous direction by the board,

[1:01:01] first item will be asking is to adopt a resolution 17

[1:01:08] 07 which would amend and restate the bylaws.

[1:01:09] it's a complete restatement.

[1:01:11] the changes to the bylaws are set forth on page 124 the

[1:01:18] principal reason for bringing at this time was at the

[1:01:21] board's direction, we were told that we were renaming

[1:01:25] the agency and the name of the agency is in the bylaws.

[1:01:33] the first and foremost changes to santa clara county

[1:01:37] housing authority that change becomes effective

[1:01:52] immediately upon your vote.

[1:01:53] all documents brought forth from that time will now be

[1:01:54] in the name of the new agency and then other changes

[1:01:55] that need to be made with the name change will be rolled

[1:01:57] out accordingly with the various outside parties over

[1:01:58] the next several months.

[1:02:04] in terms, there's a couple of changes to the agenda.

[1:02:16] the names of the agenda and some the structure on the

[1:02:17] agenda at the other kind of significant change for the

[1:02:18] way you do business, you no longer will need to do a

[1:02:19] rollcall vote unless it's at the chairs discretion if

[1:02:33] the chair would like a rollcall vote or if you try a

[1:02:34] voice vote and it appears that there is some no votes

[1:02:35] and you want to make sure you want to know what the

[1:02:36] count of the vote is then you can say, let's do this as

[1:02:37] a rollcall vote.

[1:02:38] once you do this, you won't do a rollcall vote to adopt

[1:02:40] a resolution.

[1:02:44] that will make a little bit more streamlining.

[1:03:00] the next resolution is amending your previous yearly

[1:03:01] resolution that sets the schedule of meetings that

[1:03:02] resolution set all the meetings on tuesdays which been

[1:03:03] the tradition for a very long time here but, you have

[1:03:08] previously directed that we should look at go forward

[1:03:09] with moving it to thursdays.

[1:03:11] this'll formalize that in the new dates are in the

[1:03:13] resolution.

[1:03:27] the fourth thursday of every month beginning august.

[1:03:28] >> we will work, we gave you a calendar last year and I

[1:03:29] do not know be used it but hasn't blocks that show you

[1:03:30] when were open and close.

[1:03:31] do you have a great we have one ready.

[1:03:34] >> great.

[1:03:35] that is very useful.

[1:03:42] thank you.

[1:04:00] >> the final actual rescue to take his adoption of the

[1:04:01] resolution which adopts a public record access policy

[1:04:02] for the board itself.

[1:04:03] this is for you, and this is in response to california

[1:04:04] supreme court case which clarified that the duties of

[1:04:08] public officials when you get a public richard-haven't

[1:04:11] what is considered a public record act versus not and

[1:04:20] basically the supreme court has decided that it doesn't

[1:04:21] matter where the record resides whether it's in your

[1:04:22] personal device or e-mail if it involves a public

[1:04:31] business, some matter before you then it really is a

[1:04:32] public record that may be subject to disclosure.

[1:04:35] there's rules of what's exempt from disclosure it's just

[1:04:38] for the have to look to find public records.

[1:04:42] we have a full policy that basically gives you a device

[1:04:50] and you are receiving an ipad, we encourage you to keep

[1:04:51] all your records related to this commission on that

[1:04:53] device e-mail and whatever other communications you may

[1:04:59] have.

[1:05:00] that way, if you receive something let's say on your

[1:05:05] home e-mail we encourage you to just forward it to your

[1:05:08] commission e-mail and then all the records that you have

[1:05:22] pertaining to this commission should all be the same

[1:05:23] place and then we can find that were not have to go ask

[1:05:24] you to look for your personal stuff.

[1:05:27] >> okay.

[1:05:28] let's open up the discussion anyone have any discussions

[1:05:35] regards to the bylaws or changes?

[1:05:36] >> I have a recommendation.

[1:05:37] on page 129, section 5 that first paragraph that talks

[1:05:41] about basically, how to

[1:05:49] >> is removing a commissioner without a cause?

[1:05:54] >> I would like to delete it.

[1:05:55] it's repetitive and already stated

[1:06:03] >> mme.

[1:06:04] chair if I may offer a letter background for the rest

[1:06:05] the board.

[1:06:06] this was when I was serving as general counsel outside

[1:06:07] counsel.

[1:06:12] there was some discussion on the commission about the

[1:06:13] ability to have a commissioner removed for failure to

[1:06:15] attend meetings.

[1:06:25] only the board of supervisors as you point authority has

[1:06:26] the ability to remove a commissioner and you can only be

[1:06:29] removed for cause.

[1:06:46] at that time, it was the will of the commission that you

[1:06:47] added an extra layer and you would only make a referral

[1:06:48] to the board of supervisors if due process had been

[1:06:49] afforded here.

[1:06:50] it actually adds a second layer of due process and it

[1:06:51] would take longer if you have a problem and you need to

[1:06:58] remove a commissioner it would take a longer.

[1:06:59] time for the commissioner to be removed.

[1:07:00] I not sending that attendance would be a reason because

[1:07:03] I don't know if that would be a cause but I suggesting

[1:07:04] that if you have a problem with inappropriate conduct,

[1:07:10] this would actually lengthen the time and have more due

[1:07:21] process as opposed to perhaps the board chair or

[1:07:22] somebody approaching the board of supervisors and saying

[1:07:23] I think we have an issue.

[1:07:24] I wanted to let you know the kind of a background for

[1:07:25] that language it was added but it is covered in state

[1:07:30] law.

[1:07:31] if you want to remove it, that is fine.

[1:07:33] >> I agree with you.

[1:07:35] the state law does make it for cause before the board of

[1:07:44] supervisors.

[1:07:45] and I think it could go several ways.

[1:07:53] if there was a perception that someone wasn't doing

[1:07:54] their job or someone had a psychotic break or something

[1:07:55] like that then there's a lot of ways we can do it but

[1:08:00] the chair can discuss it to the board of supervisors or

[1:08:05] whatever enemy commissioner felt that was inappropriate

[1:08:17] action I suppose a commissioner could asked them to look

[1:08:18] at it or whatever.

[1:08:19] I do not think we need a rule for it.

[1:08:20] I don't like the role I prefer something it's ever

[1:08:21] happened but if somehow-- maybe not doing their job but

[1:08:30] that some significant problems.

[1:08:35] you gotta go to the county anyway.

[1:08:36] and I trust just go do it.

[1:08:45] >> commissioner o'neill?

[1:08:46] >> we did not talk about this that much had bylaws

[1:08:48] meeting.

[1:08:51] I do see actually see a benefit here and that it allows

[1:08:55] this board to have that discussion about, let's say lack

[1:09:06] of attendance.

[1:09:07] before he goes to the county board of supervisors it was

[1:09:14] an opportunity to sort of may be clean up our own house

[1:09:15] issues before it becomes a public issue.

[1:09:16] once a goes to the board --whichever commissioner were

[1:09:22] suggesting perhaps my not had fully attended the

[1:09:28] meetings and prevented us from getting a quorum, perhaps

[1:09:34] might be supported by whichever county board member that

[1:09:35] appointed him and then it would lead to kind of a

[1:09:38] dysfunction whereas it we didn't here at first it would

[1:09:46] go to the board supervisors with our recommendations

[1:09:47] commissioner so-and-so had not be intending.

[1:09:48] I do see, much you want to vote on it right now having

[1:09:54] doing it much thought but as I read it and try to think

[1:10:00] about problems that we've had on this board or other

[1:10:02] boards I kinda like something like this because it might

[1:10:10] resolve the problem.

[1:10:13] I'm not sure that this is the actual language.

[1:10:26] I'm sure that there's something here that might be

[1:10:27] beneficial.

[1:10:29] >> if you want to take some time and look at section 5.

[1:10:42] what I would say, it gives the commissioner a right to a

[1:10:43] notice of hearing before this commission and I am saying

[1:10:45] in my view is that I do not want to deal with that.

[1:10:50] if the commissioner doesn't like what's happening in the

[1:10:52] commissioner can put it on the agenda and other

[1:11:00] commissioners can hear it.

[1:11:01] I don't like being bound to some kind of a notice

[1:11:02] hearing process here before it goes.

[1:11:13] I think it without that we still have the opportunity.

[1:11:14] I can go either way.

[1:11:15] I take your point that's think about it and I prefer to

[1:11:18] talk about it some more.

[1:11:51] actually it didn't have anything to do with that it had

[1:12:07] to do, my point is that we do not have it's an

[1:12:08] unnecessary procedure whereas we do not have the right

[1:12:09] to recommend any removal.

[1:12:10] it's up to the board of supervisors.

[1:12:14] yeah, to the board of supervisors.

[1:12:21] >> what I was going to suggest, I really don't feel that

[1:12:26] this type of thing belongs in the bylaws and I'm

[1:12:32] thinking that perhaps if you want to have some kind of

[1:12:33] procedure or policy with regard to this issue then why

[1:12:48] don't we just bring back a policy and you can have that

[1:12:49] as a separate discussion?

[1:12:50] >> I really don't believe that, this is more a procedure

[1:12:51] than a policy procedure not a bylaws.

[1:12:55] >> I accept that.

[1:12:56] >> let's do that.

[1:12:57] then I would move approval subject to the removal of

[1:12:59] section 5 with the direction to staff bring back a

[1:13:05] policy to handle this kind of thing.

[1:13:09] the more I think about it I think you're right.

[1:13:14] when you do something that's a policy rather than just

[1:13:17] having sort of nothing.

[1:13:25] >> right because it be no stopping it we had a

[1:13:26] dysfunctional board the chair would go but some other

[1:13:31] would go pretty soon you have the supervisors involved

[1:13:32] in our battles.

[1:13:38] I'm not saying any of that would happen I think were all

[1:13:39] mature but I've been on boards where that type of

[1:13:40] dysfunction, happens and it's hard to stop.

[1:13:49] >> my problem with the commissioner did have to do with

[1:13:51] the labor but the way he dealt with it.

[1:13:56] well, there was that and also something else.

[1:13:57] >> it was an action abs-haven't absent commissioners

[1:14:05] personality.

[1:14:06] anyway I want to go through that again because it

[1:14:07] reminds me of horrible, horrible experiences.

[1:14:10] commissioner anderson has moved and commissioner gardner

[1:14:22] is second.

[1:14:23] we will have a rollcall vote.

[1:14:24] any other discussion or question before we take the

[1:14:25] rollcall vote?

[1:14:26] okay.

[1:14:27] we will go ahead and have the rollcall vote.

[1:14:47] this is our last rollcall vote.

[1:14:58] >> that you approve the other two resolutions?

[1:14:59] >> yes, all three.

[1:15:00] >> I'm sorry, was that also with the technology that

[1:15:10] were improving?

[1:15:11] >> yes.

[1:15:12] >> do you have a question about that?

[1:15:13] >> yes.

[1:15:14] >> is it technology?

[1:15:15] policy?

[1:15:16] >> policy.

[1:15:17] brian, did we forward all our former emails I wasn't

[1:15:19] sure?

[1:15:20] >> I don't think that's necessary.

[1:15:23] but if you feel like it, you can do that.

[1:15:29] >> we can save this for another discussion but I had

[1:15:30] questions as far as the actual use and it's the property

[1:15:38] of the housing authority and technology and how is that

[1:15:46] a protection on that as far as, is it insured?

[1:15:51] >> it is not insured and we can give you those in a

[1:15:52] private conversation training use the technology.

[1:15:55] >> awesome.

[1:16:02] any more questions before I take the vote?

[1:16:03] okay let's have the rollcall vote on all three.

[1:16:09] >> I just thought you took the rollcall vote?

[1:16:23] >> do we have to do it again?

[1:16:24] >> no.

[1:16:25] what you cook, if you feel that you weren't sure that

[1:16:26] you took a vote on the other two resolutions you cannot

[1:16:27] do that by voice vote.

[1:16:30] >> the clerk confirmed that she understood your prior

[1:16:31] rollcall to be all three actions.

[1:16:35] >> for the record, that was intent of my motion.

[1:16:41] >> and the other section 5 will be brought back asked

[1:16:42] policy.

[1:16:46] we are at 11 o'clock so we're going to have to take e6

[1:16:54] >> we can quickly dispose, I think four and five should

[1:16:55] be fairly housekeeping items.

[1:17:08] before is adopting a resolution and housing authority to

[1:17:09] change providers for our dental and vision insurance.

[1:17:10] this is the housekeeping matter this is just no change

[1:17:11] to the employees.

[1:17:12] it does offload some of the administration of the

[1:17:17] benefits because this organization provides more

[1:17:18] administration support so premium wise there is a big

[1:17:22] difference but is can be significant from an operational

[1:17:25] standpoint.

[1:17:29] >> we went through the-- that was my concern.

[1:17:37] the question was at the cost more or what.

[1:17:50] that is myself when the mic background.

[1:17:52] the second piece --that is my cell phone and the

[1:17:58] background.

[1:18:03] 's so, if you take into account that were saving

[1:18:09] administrative cost because the --the program provider

[1:18:15] will do something with that.

[1:18:18] it felt like it was more or less neutral and it would

[1:18:22] take some of the burden off staff.

[1:18:29] I would move approval.

[1:18:30] >> okay.

[1:18:31] we have a motion to approve is her second?

[1:18:35] second commissioner o'neill seconds.

[1:18:36] all in favor say I?

[1:18:38] great.

[1:18:39] it passes.

[1:18:41] now, let's take on item b-five.

[1:18:50] >> yes this is the last business item.

[1:18:51] again, this is under our program regulations there are

[1:19:02] two mandatory items that we have to screen applicants

[1:19:03] for.

[1:19:04] when I is lifetime six offender registration status and

[1:19:05] the second is a manufacturer at method of remedying's

[1:19:06] circumstances.

[1:19:07] we were not to bid on this contract kind of refresh it--

[1:19:13] meta- --were asking for board approval.

[1:19:16] >> any discussion?

[1:19:29] >> I think it's a hard requirement that we do it so we

[1:19:30] have the right mentor and all that's why move approval.

[1:19:31] >> commissioner anderson was approval to we have a

[1:19:32] second?

[1:19:33] >> second.

[1:19:34] commission there lorie second.

[1:19:39] any other questions?

[1:19:40] all in favor of approving this agreement signify by

[1:19:42] saying I?

[1:19:46] it passes.

[1:19:47] now, we have --bam I wanted to introduce consultants who

[1:19:56] have been working with us for a few maybe a year now.

[1:20:00] they are call the tax credit asset management

[1:20:03] corporation?

[1:20:06] is that correct?

[1:20:08] we know them by that name.

[1:20:24] what they been working with our stephan is not only

[1:20:25] fully transitioning us an agency that manages property

[1:20:26] to one that manages assets and part of that involves the

[1:20:27] training of you are board members, you have a role

[1:20:28] respect to our housing authority portfolio and we want

[1:20:36] you to better understand your role so they're good to go

[1:20:37] into some of the basics of what your role is with

[1:20:40] respect of our 29 different affordable housing

[1:20:41] properties.

[1:20:44] I will let you all introduce yourself.

[1:20:45] >> thank you.

[1:20:46] hello everyone I ellen sally's army managing director.

[1:20:52] I'm joined by my colleague elaine magill who zone of our

[1:20:55] lead consultants and prosthetic manager.

[1:21:02] as catherine mentioned, we had the pleasure of working

[1:21:03] with them on their asset management function and that is

[1:21:09] really going to be the focus of this presentation.

[1:21:12] to keep it clean and simple talk about asset management

[1:21:18] were talking about how do we take care of the properties

[1:21:21] that we own and invest in.

[1:21:29] in this presentation, we brought to you today, we will

[1:21:30] talk about the roles and responsibilities of folks who

[1:21:32] work day today on asset management responsibilities.

[1:21:46] and throughout the industry really, and how those

[1:21:47] responsibilities defer from rules and responsibilities

[1:21:48] of those who are at the board level.

[1:21:53] we are an organization that has done a lot of work in

[1:21:54] the country with other housing authorities and other

[1:21:57] capital providers, we learned a lot from these

[1:21:58] experiences and we are trying to bring that introduce

[1:22:04] that best practices to them in this area.

[1:22:11] I am going through the first few slides and then I will

[1:22:12] turn it over to elaine who will take us to the rest of

[1:22:15] the presentation.

[1:22:24] and then perhaps, we can do some questions and answers

[1:22:25] afterwards.

[1:22:26] so, this is our agenda.

[1:22:27] the first thing that were going to talk about which

[1:22:31] should be quite familiar to the group here is that this

[1:22:32] understanding the work that you do as a housing

[1:22:33] authority we think it's important to start with this

[1:22:39] just to set the stage so we can understand the rest of

[1:22:40] the presentation as we get into your relationship to

[1:22:42] your properties and the key rules with respect to asset

[1:22:46] management.

[1:22:52] number two, we will talk about your inherent

[1:22:53] relationship to your properties.

[1:23:00] and how that typically works across housing authorities

[1:23:01] and then we will end with this sort of a situation of

[1:23:13] today.

[1:23:14] how does a well oiled asset management function work and

[1:23:15] what are the key rules and responsibilities.

[1:23:17] the scope into number one.

[1:23:18] understanding what you do.

[1:23:20] much of this is not all should be familiar to this

[1:23:22] group.

[1:23:27] we think it's important to start here and get the basics

[1:23:28] down and lay a foundation.

[1:23:30] this illustration starts with those areas that, most of

[1:23:39] us know are important to the housing authority which is

[1:23:40] providing a social good for the community that you serve

[1:23:46] and administering housing finance programs.

[1:23:50] example 8 for exam goal and other ones that have more

[1:23:54] public housing that they're administrating and again

[1:24:00] providing social support.

[1:24:01] in addition to all of that, there is a host of

[1:24:04] responsibilities and work that you as an owner as an

[1:24:20] operator of real estate of multifamily developments have

[1:24:21] to worry about so you own and you develop, you operate a

[1:24:22] department billings for low income individuals.

[1:24:24] and often as is the case, you will use low income house

[1:24:27] tax credits which are administered by your state monitor

[1:24:33] agency and funded by the irs.

[1:24:37] the portfolio or the properties that you're managing and

[1:24:45] operating are often funded or financed by this important

[1:24:46] tool.

[1:24:51] your mission is very critical this is your guiding light

[1:25:01] here this is very familiar to all of you is to provide

[1:25:02] and inspire affordable housing solution to enable low

[1:25:09] income people and santa clara county to achieve

[1:25:10] financial stability and self-reliance.

[1:25:11] as I mentioned, and addition to trying to fulfill this

[1:25:17] mission you're also owners of real estate and that

[1:25:18] brings a host of responsibilities.

[1:25:23] that ownership itself is done in support of your

[1:25:24] mission.

[1:25:34] in this illustration, what were trying to communicate

[1:25:35] with you is the complexity of the properties that you

[1:25:36] develop own, and manage.

[1:25:44] and all the different stakeholders involved in these

[1:25:45] transactions.

[1:25:46] as you can see, it's a variety of capital providers,

[1:25:56] investors, stakeholders and perhaps the most important

[1:25:57] stakeholder in this illustration in any of these

[1:25:58] properties are the residents the committees that you're

[1:25:59] trying to serve but you also have lenders who provide

[1:26:08] loans and those loans have to be service.

[1:26:09] on the other hand, you may have a tax credit investor

[1:26:15] and you may be familiar with the term syndicator the

[1:26:16] middleman that brings the developers and investors

[1:26:17] together.

[1:26:19] on that and there try to get tax benefits from these

[1:26:20] properties the part here that relates to you is the

[1:26:26] owner developer side.

[1:26:33] you are mostly responsible for ensuring that these

[1:26:34] properties get billed or rehabilitated and that they get

[1:26:37] well-maintained over time and you have your own

[1:26:47] incentives in addition to profits and fees you're also

[1:26:48] trying to fulfill your mission as a public agency.

[1:26:52] a complex sort of array of actors in each of these

[1:26:53] properties.

[1:27:00] I will turn it over to elaine who will talk about your

[1:27:01] role in property ownership.

[1:27:05] >> thank you.

[1:27:06] hi everyone.

[1:27:07] we will talk about the role as a corporation in the

[1:27:13] ownership of these properties and what is the

[1:27:18] corporation responsible and how do you fit into the

[1:27:19] bigger picture.

[1:27:21] this little graphic, they own quite a few little kind of

[1:27:27] shell corporations that are the organizations that have

[1:27:32] built this properties this is how they are involved in

[1:27:38] the properties.

[1:27:39] but, each of these affiliates each of them are pretty

[1:27:46] much self-contained little companies and they operate

[1:27:47] pretty well on their own.

[1:27:49] the each have their own board of directors.

[1:27:58] I don't know what's happening here.

[1:27:59] they have their own boards of directors they oversee and

[1:28:01] monitor those properties of these entities which are

[1:28:07] their purview.

[1:28:10] I don't know what's going on with this-- they contract

[1:28:24] with property management so they are closely involved in

[1:28:32] how they operate at those properties social services and

[1:28:33] really again they are self-contained little company.

[1:28:35] they are watching their own income and expenses that

[1:28:40] they are solvent and feasible as companies.

[1:28:41] what is it with them?

[1:28:44] what does that mean?

[1:28:55] okay.

[1:28:56] here's two examples.

[1:28:57] these are two properties from the portfolio that you

[1:28:58] guys own.

[1:29:02] if you can see, let's see?

[1:29:07] this is the name of the company that owns it and again

[1:29:08] this, this is the entity from the slide before that is

[1:29:15] how they are involved.

[1:29:16] that's a little company that is involved in this

[1:29:17] property.

[1:29:23] down here, this is a name of who owns a property but

[1:29:24] this is how we are involved.

[1:29:27] so, the city is one of those, one of the owners.

[1:29:35] a place that owns the building is been door drive

[1:29:42] partnership again, one of those companies is one of the

[1:29:45] partners that owns the property and the board of them,

[1:29:52] remember its own board is regularly monitoring

[1:29:53] performance.

[1:29:54] it was really looking at how is they operating and

[1:29:55] performing.

[1:30:05] >> we are a member of that board?

[1:30:06] >> they had their own membership.

[1:30:14] it has its own board but in operates internally.

[1:30:20] no one, but most of the people in the board of

[1:30:21] commissioners are not member of this board.

[1:30:24] >> either way, it's not a fiction it's a natural fact

[1:30:29] that there's a separate company, we are not that company

[1:30:36] and we don't want to be the company.

[1:30:37] what we do and the way it works it's a little tricky.

[1:30:45] if you looked up at the board of directors of each of

[1:30:46] the smaller companies there are staff often times with

[1:30:51] other people on that board and some, you may have some

[1:30:57] from the tax credit folks that have an interest in the

[1:30:58] property.

[1:30:59] basically the control of those companies is through our

[1:31:02] staff.

[1:31:22] we are actually in their it's a good presentation

[1:31:30] because even for me and I was present when they were put

[1:31:31] together and have thought this but sometimes I'm

[1:31:36] confused and what our role is this, as your old the

[1:32:08] housing authority owns via san pedro incorporated.

[1:32:18] the board of directors are established according to that

[1:32:19] corporation and bylaws.

[1:32:39] >> I think that brace said down.

[1:32:45] and I don't want to get us caught up in the legal stuff

[1:32:46] but yeah.

[1:32:47] >> of those eight properties are those part of our

[1:32:49] portfolio?

[1:32:50] of the properties?

[1:32:54] >> the aeg these are acronyms for generally, it sounds

[1:32:59] for housing development corporation and a lot of our

[1:33:00] corporate names have hdc at the end but they are

[1:33:13] corporation and not properties within each of these

[1:33:14] corporations they have responsibility formation

[1:33:15] --managing.

[1:33:16] there will be more than one property like one of them

[1:33:28] has around six properties under its purview.

[1:33:29] because those are all properties that had to have the

[1:33:30] arms length transaction.

[1:33:34] these corporations as was noted on the slide right here

[1:33:41] these corporations actually have the contracts with a

[1:33:42] property management company they manage of those

[1:33:44] contracts because they are the general managing partner

[1:33:54] for the limited partnership.

[1:33:55] if you go back to the next slide, you will see how

[1:33:56] owners been door drive, that's the ownership entity and

[1:33:58] the ownership entity is controlled by san pedro hdc.

[1:34:06] the rest of the partnerships is a tax credit investor

[1:34:15] that's kind of in the background saying I'm giving you

[1:34:16] this money, this is what I want back and this is what

[1:34:17] you will too.

[1:34:20] >> yes, very well explained.

[1:34:29] I think the question that you're asking, what is her

[1:34:30] involvement more directly?

[1:34:31] yes, they make a small to be able to get the building

[1:34:32] financed, these buildings are expenses and they need

[1:34:39] money.

[1:34:40] one of the ways that the building was paid for was them

[1:34:44] saying, we found all the money we can get from the state

[1:34:49] and investor whistle have a little gap okay, will fill

[1:34:55] back so them as a corporation made a loan sort of to

[1:34:56] itself but that loan is to-having given by them.

[1:35:01] in that way, there directly involved.

[1:35:05] they also a guarantor some these bigger loans that the

[1:35:17] property holes.

[1:35:18] it has a loan to the bank, that bank want someone to

[1:35:19] guarantee that loan.

[1:35:20] also the investor want a guarantor of the benefits they

[1:35:21] have.

[1:35:22] just another example, a nida is a way that they are

[1:35:26] involved.

[1:35:32] but also, they made a small loan and holds a lease on

[1:35:33] the land that cypress garden was built on.

[1:35:43] they were involved directly but on a more daily basis

[1:35:44] sort of managing the property, there is this kind of

[1:35:48] means her --that operates on its own.

[1:35:55] and they may have other affiliations that are direct but

[1:35:56] the daily stuff is done through this structure.

[1:36:07] we have talked about this a bit but, you know as

[1:36:08] commissioners you are, your responsibility to the

[1:36:09] agency.

[1:36:11] you have fiduciary responsibilities and wondering what

[1:36:14] is on the balance sheet and certainly these projects are

[1:36:18] underneath that.

[1:36:23] but, the way this program was structured the affordable

[1:36:24] housing program recognize the complexity of these types

[1:36:30] of projects.

[1:36:31] their $14 million 20 million with multiple stakeholders

[1:36:41] and dozens of not hundreds of residents and oversight

[1:36:42] from a number of different places and the reality of

[1:36:43] managing that level of exposure and complexity, that is

[1:36:50] not where our board can fit in.

[1:36:51] a board is really intended to again have oversight from

[1:37:02] the agencies.

[1:37:03] you have a mandate to look what is relevant.

[1:37:04] if you have this corporation is kind of managing its

[1:37:05] affairs there's really no need or reason to be caught up

[1:37:12] in the stuff that they are doing.

[1:37:13] your involvement is in the things where it costs is

[1:37:14] over.

[1:37:15] the guarantees and feel the loans.

[1:37:17] the three kind of primary ways that they are directly

[1:37:20] involved as we saw before is as a guarantor.

[1:37:31] as a board of commissioners of the agency, you should

[1:37:32] know that these exist know what it means to guarantee a

[1:37:33] loan and know what it means to guarantees on these

[1:37:42] investments so if you prior to guarantee your

[1:37:43] responsible for kind of knowing what it means and the

[1:37:44] exposure it carries with it.

[1:37:56] as I said, they're expensive and complicated properties

[1:37:57] and some of that cost is usually paid with a loan.

[1:37:58] just like the mortgage on your house.

[1:37:59] you have to take out a loan from a bank typically and

[1:38:00] whoever's given the loan wants to be sure that they get

[1:38:01] paid back similarly whoever's making in the specimen

[1:38:11] want to make sure that they're getting what they said

[1:38:12] and because these little h dc as we talked before, the

[1:38:13] only little the property but they don't have a lot of

[1:38:14] history they don't have credibility and they're saying,

[1:38:21] we are kind of cosigning we will step in and fill that

[1:38:25] role as a back stop partner.

[1:38:36] >> if I might just link this today's agenda.

[1:38:37] on today's agenda when you approve the consent calendar

[1:38:38] there are two reports.

[1:38:43] one on laurel grove and one on park avenue.

[1:38:44] when you read the background section it saiz, the reason

[1:38:50] we are telling you about this is because I housing

[1:38:51] authority has guaranteed construction and together this

[1:38:54] is $100 million worth of construction.

[1:39:03] you are oversight and the reason were giving you these

[1:39:04] court reports on construction is because if there is a

[1:39:05] problem with construction the expectation by the lender

[1:39:07] is that the housing authority will step in and provide

[1:39:13] whatever remedy is needed to make sure those buildings

[1:39:14] go up and the longest repay.

[1:39:18] okay?

[1:39:19] kind of link it to today's agenda.

[1:39:22] >> yes.

[1:39:26] just a little note here.

[1:39:27] this is actually kind of a good thing.

[1:39:36] it gives them sort of the ability if something were to

[1:39:37] go wrong with the property to kind of step in between

[1:39:38] before the property got lost to the bank before closing

[1:39:39] on it.

[1:39:52] one of the --the second weather involved is like a land

[1:39:55] lesser.

[1:40:15] releases or land leases again, as a member of the board

[1:40:16] of commissioners know that this exist know what a land

[1:40:17] lease is spirits is exactly how it sounds and it saiz

[1:40:18] come here some land I'm going to keep owning the land

[1:40:19] and you can pay me rent on it and then you have certain

[1:40:20] rights to do things on top of my land.

[1:40:21] >> I think my fingers might be too big.

[1:40:25] this can be a reason to engage its party just again to

[1:40:31] keep cost down this is a very expensive environment that

[1:40:35] you guys operate in.

[1:40:38] certainly, having the ability as an entity to kind of

[1:40:53] take the cost of land out of the cost of building a

[1:40:54] property is great.

[1:40:55] it allows the property to be built less expensively and

[1:40:56] serve two people with lower incomes.

[1:40:57] >> had to step in.

[1:41:00] I want to give another illustration.

[1:41:01] we have one property in our portfolio where we do not

[1:41:02] own the land.

[1:41:04] and that's the d rose apartments.

[1:41:09] as elaine noted you can keep the operating costs of a

[1:41:10] project down with kind of a below market lease right?

[1:41:15] the lease revenues are basically are taken out of the

[1:41:21] equation so folks are paying the rent this is an asset

[1:41:30] management issue that we will need to be bringing to you

[1:41:31] in the next few months to resolve because that lease

[1:41:33] that this family owns is supposed to go to a market rate

[1:41:37] level.

[1:41:41] that would not be a sustainable read payment for us to

[1:41:46] keep those folks in the income housing.

[1:41:52] just so you know, we have one property where we do not

[1:41:53] own the land.

[1:41:55] >> actually, exactly.

[1:42:00] they can set up these leases to be below market.

[1:42:05] much less expenses what it would be you can probably get

[1:42:08] a quite a bit of money and buy them being the landlord

[1:42:13] on it can actually a lot to be less expensive unless

[1:42:23] kind of invasive.

[1:42:24] they can say, I'm more than happy for you to put the

[1:42:25] affordable housing on the land.

[1:42:30] they can say yes, have a land I will lease it to you for

[1:42:31] a dollar year or whatever and I will not interact I will

[1:42:33] not sort of disrupt how you operate I was in the

[1:42:39] background and you can operate on your own as a company

[1:42:42] providing affordable housing.

[1:42:47] >> the last one is a gap lender.

[1:42:58] again as a board of commissioners know that these exist

[1:42:59] and know how a loan work.

[1:43:00] it's typically someone who recognizing, we found all the

[1:43:05] money that we found but I need more.

[1:43:06] usually a state, a city or not profit will say, yes, I

[1:43:13] will take this little piece else that you can still do

[1:43:14] the project that you want to do.

[1:43:25] you are accepting an iou from whatever that difference

[1:43:26] is.

[1:43:27] so hey, we found all the money that we could.

[1:43:29] and they will say, okay here's a little iou for $1

[1:43:30] million.

[1:43:35] this is how it self is involved.

[1:43:36] but again, these are quiet little, the operate in the

[1:43:48] background.

[1:43:49] the back round is not having to make payments on this

[1:43:50] loan.

[1:43:51] and so having a big loan from some financial institute

[1:43:52] that wants get paid every month, this can make the costs

[1:43:53] overall feel more less-expensive.

[1:43:57] typically, these are soft loans and we talk about soft

[1:43:58] loans again basically means you don't have to make

[1:44:06] payments on these unless there sufficient money

[1:44:07] available.

[1:44:08] these are real loans about them they are legal contracts

[1:44:13] and they are real and the typical are more gentle on the

[1:44:22] building or the property that carries them.

[1:44:23] again, payments are not required on an ongoing basis.

[1:44:31] >> a hard loan is a mandatory payment that needs to be

[1:44:32] made every month or the lender will foreclose on the

[1:44:37] property.

[1:44:38] a false loan saying only pay me if you have the money to

[1:44:39] pay it but because the loan is given in exchange for

[1:44:46] serving a low income population, the lender's mission is

[1:44:47] so filled.

[1:44:50] by way of example there was recently a pocket here call

[1:44:58] 2nd st.

[1:44:59] studios which is going to be over 100 permanent support

[1:45:00] housing units and we put project-based voucher for that

[1:45:03] project.

[1:45:09] they did not secure the tax credit founding seeing after

[1:45:18] the no november 8 election the tax credit market took a

[1:45:19] dive and all of a sudden they had $2.5 million that they

[1:45:27] needed to come up with that they did not have the city

[1:45:28] of san jose step forward with some other federal funds

[1:45:29] that they have and they said we will loan you this money

[1:45:39] because this project is very important to us and it's

[1:45:40] going to go up and don't worry, you have to make a loan

[1:45:41] payment unless a revenues that you collect are enough

[1:45:42] not only to pay your operating expenses but also 10th

[1:45:50] flow down to us.

[1:45:51] what the city of san jose is in return they are getting

[1:45:52] 100 units of permanent supportive housing and the

[1:45:54] community that will serve their residence.

[1:46:00] >> and just to add onto that many tax credit properties

[1:46:01] nationwide they don't get built without the soft loans

[1:46:05] they are just so expensive that in addition to the cash

[1:46:09] that you receive for the tax credit and a conventional

[1:46:16] loan that you get from a bank you have to get the soft

[1:46:17] loans as well to get those built these soft loan

[1:46:21] providers are typically public agencies they can be at a

[1:46:32] state level a local level and catherine's example you

[1:46:33] have a big soft lender in town that provides a soft

[1:46:34] loans to lotta properties again as catherine mentioned,

[1:46:38] whatever's left after you pay your first loan your hard

[1:46:41] tap must be paid and that is what typically goes to

[1:46:54] paying the soft loans.

[1:46:55] because you have a mission lender involved they are

[1:46:56] usually not as strict about getting repaid as a bank

[1:46:57] will be.

[1:47:04] >> okay.

[1:47:05] they just went through several slides talking about your

[1:47:09] relationship and properties from ground leases to gap

[1:47:18] financing and other ways that you have to think about

[1:47:19] your exposure and how you finance your properties.

[1:47:23] in this slide we want to talk about how the properties,

[1:47:28] how you over see the properties and two important

[1:47:33] takeaways.

[1:47:34] I will same now and all same again.

[1:47:38] two important takeaways want to leave with these

[1:47:44] properties involve a lot of oversight, a lot of

[1:47:45] specialized expertise you have tons of folks here at the

[1:47:49] agency who are responsible for monitoring the properties

[1:47:54] in a host of ways and it's important to recognize what

[1:48:01] those folks who work here at the central office are

[1:48:02] charged with in relation to your role as board members.

[1:48:09] this is important for any housing authority that owns

[1:48:10] real estate.

[1:48:19] as elaine has mentioned, they are financial implications

[1:48:20] as a lender as a guarantor as a land lessor each of the

[1:48:31] members with limited partnerships to go with you to the

[1:48:32] properties there are similar properties in your

[1:48:39] portfolio each property has a variety of financing

[1:48:52] sources you have conventional loans you have soft loans

[1:48:53] from local lenders you may have a loan from the housing

[1:48:54] authority and you may have a rental assistant contract

[1:48:59] funded by the federal government so you may have a

[1:49:05] section a contract if it's a tax credit property like

[1:49:06] many of your assets you will have a tax credit investor

[1:49:11] in the properties, you may also have bond financing from

[1:49:19] other sources.

[1:49:20] again, we talked about land leases which bring a host of

[1:49:21] responsibilities for each of those boxes what were

[1:49:33] trying to illustrate is how different all the properties

[1:49:34] can be.

[1:49:35] different sources, different loans from different

[1:49:36] vendors you may also have a services agreement with the

[1:49:37] city that's in the third box for the third property so,

[1:49:43] just a host of financial responsibilities to the capital

[1:49:53] providers compliance responsibilities to public agencies

[1:49:54] for instance if you have a loan from the city of san

[1:49:55] jose they have their own affordably requirements for

[1:49:58] rent and income compliance rate your staff members and

[1:50:05] your asset managers have to be monitoring constantly so

[1:50:09] they can remain in compliance.

[1:50:12] every single deal is different and this may not be

[1:50:17] rocket science but there is a lot that goes with every

[1:50:18] single property.

[1:50:22] the force point going back to the major take away when I

[1:50:35] started to slide, is that as board members you cannot

[1:50:36] really get bogged down on the ongoing operations at the

[1:50:37] property level.

[1:50:38] you have a whole team of folks who are specialized who

[1:50:41] are good at what they do and overseen some of these

[1:50:48] responsibilities so think of yourself as very high-level

[1:50:49] managers or general-- in an army if you're gen.

[1:50:58] eisenhower world war ii, we can have you-- storm

[1:51:10] normandy beach with the foot soldiers.

[1:51:14] think of yourself as just overseen their exposure at a

[1:51:17] very high level that are worrying about all these

[1:51:21] details.

[1:51:29] what you should be thinking about a course is the

[1:51:30] information that you do get on these properties so you

[1:51:31] could make important decisions in a couple of minutes

[1:51:37] elaine will be talking about that.

[1:51:38] when you get together and you have these board meetings

[1:51:46] and to have enough information.

[1:52:07] >> I just want to check on time yes.

[1:53:16] the team keeps tracks of all this so they look what are

[1:53:20] they doing?

[1:53:21] they're involved in all the meetings and boards to

[1:53:26] report to the board and provide information they make

[1:53:27] sure that things are being done correctly and on time.

[1:53:32] they look at property performance and again, these are

[1:53:33] supposed to be little self-contained companies.

[1:53:43] they're trying to look at their breaking even are losing

[1:53:44] money.

[1:53:45] if they are, as a reason for that, what we can do about

[1:53:46] it another making money, is that a good thing?

[1:53:53] what can we expect next year or is it going to continue

[1:53:54] in the future.

[1:53:58] they are very involved in the ongoing and daily

[1:53:59] decisions about all of this stuff.

[1:54:14] property management is very much served on the front

[1:54:15] line at each property so the asset management team

[1:54:16] creates the yearly budget as well with the finance

[1:54:17] department that is very involved and clear about what

[1:54:19] numbers need to be met and where the numbers come from.

[1:54:23] the group is creating these budget and monitoring

[1:54:24] whether there being stuck to a budget.

[1:54:30] insulin is useful if you're sticking to it.

[1:54:35] and the group is also looking at tenant issues property

[1:54:36] management handles some things and are the buildings

[1:54:42] being taken care of?

[1:54:45] again, these are large expensive investments and so,

[1:55:05] part of what they need to be concerned about what they

[1:55:06] need to do is these are investments these are our

[1:55:07] factory leases how we run our business.

[1:55:08] are we taking care of our investment?

[1:55:09] that is very much central to what they are doing and

[1:55:10] what they're there for.

[1:55:11] what's the most appropriate way to involve a board of

[1:55:12] commissioners.

[1:55:16] we talked about using your time and expertise

[1:55:17] efficiently and using their time as well.

[1:55:31] nobody want to neglect the things that are important

[1:55:32] nobody wants stuff to get missed but nobody wants to

[1:55:33] have five people doing the same thing over and over

[1:55:34] again.

[1:55:35] what is appropriate, what is comprehensive?

[1:55:37] the part, what we've seen with been working with this

[1:55:51] group and what were seen is how do we make sure that

[1:55:52] what the asset management group spencer time on is the

[1:55:53] right thing.

[1:55:54] when there are new inquiries or analysis to be done are

[1:55:55] those things are actually cannot drive an impact or the

[1:55:58] things that we were esi question have a good answer how

[1:56:01] can they responsibly overseen these properties without

[1:56:05] making extra work or distracting focus.

[1:56:22] in the asset management function is kind of doing new

[1:56:23] assessments they may be less able to do what they are

[1:56:24] regularly and routinely focusing on.

[1:56:25] trying to balance the new demands and existing demands.

[1:56:27] when we work with housing authorities nobody wants

[1:56:47] afflicted with information that sells to interpret

[1:56:51] because there's pretty good evidence to suggest that too

[1:56:54] much data makes bad decision.

[1:56:57] having the right amount of the information that is

[1:57:01] relevant and that you can look at it.

[1:57:05] you already received some you may receive additional

[1:57:12] really the focus is on getting information that lets you

[1:57:17] make the decision

[1:59:16] >> I have a comment and there's a history here.

[1:59:24] because we had several of side projects and we were

[1:59:25] paying for the operating shortfall.

[1:59:31] we found out that we can do that and we had to find the

[1:59:35] funds to cover the property.

[1:59:53] this was a process that we learned a lot about.

[1:59:58] what we need to know just in the general when you're

[2:00:02] looking at the conversation this my going to a dashboard

[2:00:11] really what we need and what we've gotten consistently

[2:00:12] from staff we need to know when there's a potential

[2:00:13] problem and we need to know when several properties are

[2:00:15] upside down and that work and what we had to do to cut

[2:00:20] costs and get our operating flow appropriate console in.

[2:00:29] when there are buyouts at the end with times and issues

[2:00:35] on these prepare properties staff is, what I would like

[2:00:44] to see I don't need to know a lot.

[2:00:45] we already have some information as you mentioned.

[2:00:54] we look at each property and we see some kind of

[2:00:55] information and tell you were going to go upside down or

[2:00:56] anything like that.

[2:00:57] basically what I want first and foremost to be something

[2:00:58] that would be do we have a problem?

[2:01:07] I don't need a lot like a portfolio.

[2:01:18] and they say you have a risk but the risk wasn't remote.

[2:01:25] there's a lot of money over these projects but it wasn't

[2:01:32] a individual canet risk that we had to ask right away.

[2:01:33] I need to think harder but I'm looking at primarily gave

[2:01:42] early warning.

[2:01:43] is there a problem with the property.

[2:01:44] it can be a legal problem and operational problem it can

[2:01:45] be a problem with the folks who counteracted to do the

[2:01:47] property management for us.

[2:01:57] and you guys have been doing a good job of that so I do

[2:01:58] not know what else we need but that was p first thing

[2:01:59] for the dashboard.

[2:02:03] >> I think you're taking it exactly right.

[2:02:04] that is the right question to be asking let me know when

[2:02:08] there's a risk and when it's coming down the pike and

[2:02:09] how real it is.

[2:02:12] and a lot of we've been talking with the crew is I would

[2:02:16] focus on this in particular and different ways of

[2:02:17] displaying it.

[2:02:24] a lot of organization in the industry and a lot that we

[2:02:25] work with do something like that.

[2:02:30] what we call risk rating or just sort of, something

[2:02:31] that's intending to do exactly what describing.

[2:02:34] give a comprehensive look at very different omissions

[2:02:54] were risk can come from.

[2:02:55] financial risk, fire, as their asbestos, physical risk,

[2:02:56] litigation risk, market risk.

[2:02:57] to have a building that they're putting the railroad

[2:02:58] tracks right next door to it.

[2:02:59] those are all risks and those can be tracked easily.

[2:03:05] to be able to distill those and to something that is

[2:03:14] again easy for a viewer to parse on the portfolio level

[2:03:15] so yes, that is something that the organization is

[2:03:18] looking at and incorporate.

[2:03:26] >> the point is, the information that board members are

[2:03:27] regularly getting it's not just about helping you make

[2:03:33] decisions but also about helping you sleep at night.

[2:03:40] so that you will not be surprised.

[2:03:41] you never want to be surprised about a major issue.

[2:03:44] and the type of asset management that we been working

[2:03:47] with his proactive and to make sure we get a met small

[2:03:58] problems and through the process we can certainly feed

[2:03:59] the right proactive information into these dashboard

[2:04:06] reports.

[2:04:07] even if you can't do anything about it or you have to

[2:04:08] make a decision at least you know what's happening and

[2:04:09] you know someone is taking care of it.

[2:04:10] we hear you loud and clearly on that point.

[2:04:14] >> do we have some dashboard options?

[2:04:23] >> I believe we do, yes.

[2:04:24] we do.

[2:04:25] >> sometimes you have is in on a problem.

[2:04:27] if there is a real issue coming up, you just cannot mask

[2:04:31] it.

[2:04:35] sometimes you need a narrative on what's about to happen

[2:04:36] because that's issue may be really big the important

[2:04:43] thing here is a informed.

[2:04:44] were trying to work together make sure you have that

[2:04:45] type are reported.

[2:04:48] >> that kind of leads of what my thought of this report

[2:04:51] is what's really well illustrated here.

[2:04:55] having the substance information for us is critical one

[2:05:01] thing that I would think, it's not liking but one thing

[2:05:06] that brought to mind is that the human element of this

[2:05:12] report and we are dealing on a daily basis families and

[2:05:16] individuals and leaving environments.

[2:05:24] what kind of supportive services are provided for our

[2:05:30] tenants or these tenants on these properties I do not

[2:05:38] want to get into the weeds again you guys have

[2:05:39] incredible staff that sitting with this but, just

[2:05:41] looking at the risk management and the dashboard there.

[2:05:57] that's what was brought to my mind.

[2:05:58] >> we do a yearly report on our services and so I think

[2:05:59] as a part of the dashboard we should take into account

[2:06:05] because there's two things we do.

[2:06:06] the resident survey and then a report from life steps.

[2:06:10] to integrate into this we should look at those reports

[2:06:11] and determine whether yearly is enough, it is for the

[2:06:17] resident survey because we do it once a year.

[2:06:20] but, perhaps some performance measures on the services

[2:06:34] front would be helpful.

[2:06:35] right now they come once a year and we combined it with

[2:06:36] the family self-sufficiency program which can be a

[2:06:37] little bit confusion.

[2:06:39] the family program is under the umbrella of section 8 so

[2:06:43] there's a convenience and having them come in on one day

[2:06:49] and do this report.

[2:06:50] but it could be a little confusion when they merge it

[2:06:51] into one powerpoint.

[2:06:57] we can look at that, that's a helpful comment.

[2:06:58] >> I also want to make sure is that when we look at

[2:06:59] services we look at outcomes and not outputs.

[2:07:04] again, that was one of the criticisms.

[2:07:13] many times we do not see what are the outcomes.

[2:07:23] measurable outcomes.

[2:07:24] >> I conclude with that because I think with asset

[2:07:27] management a property could be improved on the amount I

[2:07:35] don't know, I'm not a realist --realtor but just the

[2:07:39] health of the tenants.

[2:07:42] I think that would improve a property.

[2:08:05] >> may I get a copy of this?

[2:08:06] >> sure.

[2:08:07] we will make it available, absolutely.

[2:08:08] elizabeth the two quick points on that.

[2:08:09] I thought it was a great comment when we think about

[2:08:10] asset management at our company we do not see it as a

[2:08:11] one size fits all function.

[2:08:13] asset management depends on the organization and what's

[2:08:14] important to you.

[2:08:17] we spent a lot of time about the operational aspects

[2:08:18] mainly because we feel that throughout the industry

[2:08:24] there is not enough focus on that especially among

[2:08:25] housing authorities.

[2:08:28] asset management is comprehensive it's really anything

[2:08:34] that affects the health of the community it's not just

[2:08:35] the dollars it's just not sticks and bricks.

[2:08:39] it's also the communities that you're serving and

[2:08:43] resident satisfaction.

[2:08:53] we understand that it's an important piece for them and

[2:08:54] other mission organizations.

[2:08:55] we didn't spend a lot of time talking about that because

[2:08:58] you guys are key in on that and that's what catherine

[2:09:08] was a first them to respond to it because we know that

[2:09:09] you're thinking about it but we are working together to

[2:09:10] make sure it's folded into the dashboards and other

[2:09:11] reporting.

[2:09:13] >> there are some things that are not captured like for

[2:09:14] instance, you mentioned that you were looking at the

[2:09:20] balconies because the contractor in berkeley was also

[2:09:24] doing some balconies --I really appreciate the fact that

[2:09:31] you were proactive and able to go back and look and see

[2:09:34] are we in good condition, do we have a safe balconies?

[2:09:44] >> we started that effort around two years ago and we

[2:09:45] surveyed after there were some students who died in

[2:09:47] berkeley so we surveyed and we happen to use the same

[2:09:57] contractor in our property.

[2:09:58] we did a survey to check out our balconies and there are

[2:09:59] some ongoing repairs which are connected to leaks.

[2:10:05] we didn't do the survey in our housing department report

[2:10:06] two years ago what we don't do is say, and they're still

[2:10:10] okay.

[2:10:20] >> thank you very much for all of you work here.

[2:10:21] I really do, even for some of us will been on the board

[2:10:22] for long time it really provided a reminder of what it

[2:10:24] is that were, what is our role and I really found this

[2:10:29] to be very helpful.

[2:10:30] >> thank you.

[2:10:33] >> another comment.

[2:10:36] these going to balance you?

[2:10:40] or finance a report and so there seen a lot at the end

[2:10:46] of the year.

[2:10:53] they look at those books as well.

[2:10:54] that is an level of finance.

[2:10:57] and you know, you and I meet with jenny before and after

[2:11:00] and talk to them about that.

[2:11:03] we've talked about their view on how the finance and how

[2:11:10] it's been taking care.

[2:11:13] I would say thank you very much for it there's a lot of

[2:11:14] insider information and love the pieces I don't think

[2:11:20] that I fully understand but this is a good summary and

[2:11:21] particularly a board that may not have had the

[2:11:26] opportunity to get their head around a little bit.

[2:11:32] we have a tax credit financing seminar a few years ago

[2:11:35] but, it's helpful to get this information.

[2:11:43] it's nice to know that we simply-having simply just

[2:11:44] don't on the properties and run them.

[2:11:46] I like your dashboard and thank you for your help.

[2:11:53] >> we will go forward and we have a discussion now.

[2:12:01] I'm very aware that were running a little longer we only

[2:12:02] have one little item to do and that is a special meeting

[2:12:03] on the budget.

[2:12:11] with that

[2:12:12] >> this will be to full we are going to present how we

[2:12:13] put together the operating budget for those who may have

[2:12:14] not participated in this process and I think it's a good

[2:12:17] eye here to tack on a close session on labor

[2:12:18] negotiations.

[2:12:23] >> when you propose what day?

[2:12:24] >> were so operating from tuesday so were looking at, I

[2:12:28] need that little handy calendar do you have an extra

[2:12:29] one?

[2:12:32] I think we are looking at june 12 know, excuse me june

[2:12:36] 13 which is a tuesday.

[2:12:45] sorry, were not looking at june 13 were looking at june

[2:12:46] 20 a week ahead of time.

[2:12:55] we can try to put something together, I think june 6

[2:12:56] might be a little ambitious because that's two weeks

[2:12:59] away.

[2:13:07] tuesday.

[2:13:08] >> what day?

[2:13:09] >> june 20.

[2:13:13] >> I cannot.

[2:13:14] >> can you do the six?

[2:13:15] >> I can do the six.

[2:13:19] or the special meeting for the budget?

[2:13:29] we are going to do two things if you want, how we put

[2:13:30] the operating budget together for folks of not been to

[2:13:37] the budget process with us.

[2:13:38] the second would be a close session on labor.

[2:13:41] june 6?

[2:13:58] >> can you do the six?

[2:14:03] mr. Commissioner can you do the six?

[2:14:04] >> yes.

[2:14:05] >> what time 9:30?

[2:14:10] >> no, we can I do june 6.

[2:14:16] I think liz can't do thursdays.

[2:14:23] can you do thursday the 15th?

[2:14:26] >> 15th, yes.

[2:14:30] can you do the 15th?

[2:14:44] you might make it for the special meeting-haven't

[2:14:47] session.

[2:14:48] >> is your hearing in the morning?

[2:14:51] that is far away.

[2:14:56] >> let's do it on the 15th.

[2:15:00] okay

[2:15:01] >> 9:30?

[2:15:49] >> I really have to leave in a minute.

[2:16:00] >> are we adjourn?

[2:16:08] we will adjourn the meeting.

Regular Board Meeting

Agenda

Transcript