We will start the meeting, let's please have the row
call.
I just wanted to complement all of the efforts that have
been made especially during last week affordable housing
week.
we had some wonderful events which executive director
will be reporting on.
I brought in the editorial and the article regarding our
15 anniversary.
it was a wonderful timing.
the article was great.
I want to thank everyone who contributed either to the
events who attended the event and also who made these
articles happen.
it's not often that we get prominent notice sometimes
you get not so good notice on the mercury news.
I had to pay attention to this one.
I want to make sure that everyone, all the commissioners
know that they have to turn off the microphone after the
speak.
so the we don't have chatter going on in the recording.
we will get to comments from the public on an item that
it's not on the agenda.
I do have a few people who want to speak on the item
that is not on the agenda I will call them forward.
I'm sorry?
yes.
stephanie?
stephanie shaw?
>> good morning my name is stephanie shaw I have been a
housing authority employee for 24.
085 years.
as a housing program specialist, I'm a member of scei
you 521 and a contract action team member.
when I first came to the housing authority I was just
amazed.
I had no intentions of staying this long.
I decided, I'll come for four years and in all leave but
I didn't.
what I found was employees would been here for 15, 10,
20 years and when I inquired I said, are you here?
because they felt that they were very committed to the
organization and their mission.
after that I thought, maybe allstate a couple of more
years.
plus there were job offers on the table for me to go but
I decided I wanted to stay here and make a difference
and I feel that I have.
as you know, we are in our contract negotiations.
we have set clear goals we won a contract that addresses
fair concentration that retains and recruits a
cutting-edge workforce.
we would like to look at a work standard, medical
benefits and most importantly we won a contract that
recognizes employees years of committed service.
earlier this month, management gave us her comprehensive
proposal that would only lead to a high turnover which
has a negative impact on the quality of service that we
provide to our community.
based on this proposal, over 50% of the imports would
not have wage princes, around 90% of the employees will
receive a wage increase while only get a 1-2% way to
increase.
it's an insult because this is not even cover inflation.
management propose to put the burden on any changes in
medical expenses on the employees and employees
contribute the full cost of their pension.
with this proposal, we do not see any improvements
always see his takeaways.
management has proposed to weakening our unit by
proposing to remove the it coordinator, computer system
technicians and database analysts from our union.
the message we want to bring to you today is, we want to
contract that will recruit, retain qualified and a
committed force.
recognize and value employees years of service and your
loyalty.
more dates and longer sessions of negotiations.
we are not a throw away, we wish to be heard.
and a contract and ensures that our employees will be
paid a salary that allows them and their families to
live in santa clara valley with dignity and respect.
thank you.
>> thank you.
I would like to thank michel and say, she kept it to two
minutes and I'm requesting everyone to do the same.
si?
when would you like to come, I will put you on the
bottom?
>> good morning.
I vanessa and I a program specialist for almost 7 years.
what I wanted to discuss today is the recent issue of
customer service.
it seems it's been a hot button topic lately.
and I myself kind of feel that the finger has been
pointed on the specialist and housing assistance but, I
think we should think about what the recent changes that
occurred that have cost this outcry from the community
about this lack of service that they feel they are
receiving.
many of the people in her agency have been here for five
years and this is a new issue.
and since the majority of staff has not change I would
like to think of what has teams that may have
contributed?
one thing we do not longer have manager, supervisor
meeting.
the goal of that change to stop all meetings was to
improve customer service meetings.
we need to think, has that goldman achieved?
our work process have changed, we've begun the
implication of the process meaning that, housing program
specialist now process a file from beginning to end when
the applicant is determined to be eligible to become to
the program all the way that they determined, for
whatever reasons they are not eligible.
it was anticipated that this change would decrease a
workload on staff, however, the majority of my
colleagues to not agree that this has happened.
when I calculated this outcome of the case lowes has
decreased by 30-40 families.
it may sound a lot but when you handle 400 families, and
does not make that large of an impact.
initially, it sounds like a decrease but what has
occurred is large task to take up a lot of time and have
been shifted to specialist.
and then the additional new referrals have committee
created --mitigated any referrals.
we do not have the ability to retain staff.
new personal come into the staff there giving full case
load and given responsibility without training.
these changes have been over wyoming for the season
staff I cannot imagine how the new staff must feel.
apparently the lack of retention tells us how they feel.
they are leaving the agency.
>> this is two minutes.
thank you.
>> thank you.
hi, thank you for letting me address your name.
my name is john and I've been here around 19 months.
I've earned two college degrees.
I also worked at two housing authorities at a couple
hosteling nonprofits.
the reason why bring this up is because a housing
authority has stated that they wanted to obtain and
retain qualified and experienced workers.
but going beyond the rhetoric and looking at what's on
the papers looking with the action, actions such as
proposing cuts to a benefit, attacking our requirements
and retirements.
undercutting her wages and more importantly denying the
most experienced worker a cost-of-living increase.
to state the obvious, we live in one of the most
unaffordable places in the united states.
to me, this does not spell out the competitive nor even
retaining people.
I also wanted to share with you guys in the last two
weeks we have lost five housing specialist from her
agency.
requesting that the board can involved, too, ask
questions and three, help us achieve a fair contract.
we also are requesting that management provide us
additional days to negotiate the contract as of now
we'll have one schedule contract negotiation date which
is in june.
thank you very much.
>> susan cartwright, no shaun cartwright.
the current all the way home program causes to secure
homelessness.
it causes displacements and perhaps even death just
based on the information that we've tracked down
ourselves from the family alone at four properties in
san jose and three in santa clara have cleared about 60
units not people units.
two men that's the majority of these fats were not
homeless, they came from other homes they knew they were
moving into the units for 3 to 5 months and now these
fats --and they replace people who are rent-controlled
or painted long run for the area.
now these fats are caught in the middle.
they're terrified to go to loser housing again.
some of them are the maximum level and there are afraid
that the rent will be raised and they will be homeless
once again.
we spoken to catherine and her counterpart mona at the
va and both seem unable or unwilling to change the
system which is why we are here today and doing media.
on behalf of paul mayer the 92 veteran been evicted and
who we all feel may die because of the stress of force
leave his home of 44 years, I ask you to close a
loophole that allows people like the greedy the males to
profit out of other people's pain and plight.
>> thank you.
corey?
>> good morning.
I'm here because of the d my old family and their greed.
I homeless because of this family and their great.
it's that simple.
the impacted my entire apartment complex on this war
they would not do that, they came in give us also today
notices and then refuse to give us our deposits back of
the eventually dad we had to fight for the couple next
to me they have a special needs daughter who had they
had to concentrate on and find a new place for her, they
couldn't find anything they just had to get out and get
a new place and start over again.
none of this had happened it wasn't for the greed of
this family.
it's not about housing, homeless veterans is about them
making more and more money and because of them, I'm not
homeless.
I'm working, but I'm homeless.
you can change that, not my situation but their
situation and hopefully family situation because I'm
single and I don't have kids.
there's family out there and shelter due to this family.
it's up to you to change that, I can only do so much I
work full-time but like I said, I homeless and I'm
trying to change that as we speak.
being single without kids is a little bit easier on me
but there are plenty of families out there that are
struggling there now living in shelters that should be
but are because of this family.
thank you.
>> thank you.
I'm sorry by men's pronounces last name.
it's okay.
good morning I live in san jose as part of the
investigative team that was looking into the this family
properties, we initially starting looking into it
because of the claim that they were renovating the
properties and that's why they were evicting all the
tenants.
we were talking to the folks and a lot of them had no
idea that these veterans knew that they were taking the
place of someone who had been affected.
they thought that they were coming into clear units when
we started 10 him what happened, they felt bad.
they heard about the 92-year-old veteran being kicked
out and they themselves as veterans felt bad because
they know how hard it is.
it was shocking because I used to work for --in the
partner project all for all the way home project and I
was proud because I think it's a very good mission it's
important for veterans to come back and have that you
know, confidence at the will be house.
but to displace other people were not accomplishing
anything.
I think this is something I need to be closed and this
happened prior to the alice act and the know cause a
bitches those just passed by san jose.
it's important to kind of do this retroactively and stop
this once for all.
and really fix the problem of housing people and prevent
homelessness.
thank you.
jamie.
thank you.
I jamie and I'm an homeless advocate and I was with the
abyss a good team we were actually there on the first
property where we figured that the veterans were being
put in and other people are being displaced.
the lead to other properties and I was at the second
property is on really poor living conditions.
there was glass outside there were doing some
construction without permits and really young children,
there were nails of the gutter was falling off and it
was really important condition.
it was kind of sad to see these families they had to be
in a hotel over a month, thank goodness for set jos
housing department they put them up in a hotel but
that's because of our connections but the family that
did not have the connection they could of been living in
a car or shelters.
it's important that we fix this loophole also, with the
trump cuts, we really hope that there is any cuts to
housing.
I grew up on section 8 and I'm working and I'm working
in the committee and it's really important the families
have homes and my mom is currently on housing now with
my nine-year-old sister and thank goodness for that.
thank you kathy.
I have not been here for a long time but as jamie
mentioned --we have mr. Jamie we really felt ignored
actually.
>> trust me, I'm going to do a lot better for the months
coming up because actually what jamie mentioned about
the cuts they're extremely serious there more serious
documents which are coming out in our more serious and
what we heard about even before we had a big event at
the college were catherine presented about the cuts and
what can be done about them.
the main answer that people came up with is that we got
to come together.
we got to come together with the tenants, the tenants
got to get organize which is my job and that's
uncommitted to do but we also need the cooperation of
the commissioners and all the agencies that we work
with.
I would like to thank you for participating and that I
think this issue is extremely important.
it's kind of a scandal that's been going on for a while
and I don't think that it's over yet.
I think it's important for the housing authority to find
a way to address it.
I do not know the legalities of it but something needs
to be done.
you cannot house some people by making other people
homeless, that the pizza purpose.
part of our whole process here as I said, we need to
bring people together and to bring people together, we
cannot allow the perception that we are cooperating with
these bad actors.
the family is so bad we were discussing this in san jose
and our discussions of just cause.
some of the landlords even said, when we pass, they
wanted to have a was called a tenant protection act they
said we passes active, will call it the de mayo tenant
protection act because they are so notorious.
I think it's important to take whatever action is
practical to put a stop to this.
thank you very much.
thank you.
so, I have been involved in my role with the campaign
and I want to say to shaun and your colleagues at you
really did a lot of work to make this issue public and
in the forefront and you help me understand things that
I did not know and I'm really grateful to your advocacy.
we and I take this seriously and we've already been
talking about this.
just know I grateful to you.
so, we need to I can die this for a future meeting?
yes.
I have already asked for that in a previous meeting.
with the city of san jose of you recall when patrick
reported last month about the just cause there was every
quest to bring that back and also report on how would
work with her voucher leasing system and frankly there
is a set of landlord incentives there are part of all
the way home campaign and there's another one that we
have just approved as part of a move to work activity.
putting that all together and having the city
participate and I would anticipate that I'll probably in
august board date.
we have budget in june, nobody july so it's probably
gonna be august the best opportunity for us to collect
information.
it would also give the city time to get their
enforcement up and running.
I will have a motion for approval of the minutes.
one second, before you go to that we heard some
statements about retention, can we get that on her next
meaning I would like to get some facts if we have a
retention issue and what it looks like it's and what the
rates are you now by unit chris mark we have actually
pull that data will happy to provide it to commissioner
anderson is addressing employee retention.
I want to start with the facts so, I need some factual
information and you can compare it to the retention or
whatever you want to compare it to.
I would like to have something that gives me some
information about it's an allegation.
absolutely we, we can do that.
>> do we have a report on the negotiations?
at the end of the board meeting we were going to talk to
you about scheduling a special meeting on the operating
budget and that would be a good opportunity for us to go
back in a close session.
at this point, we did not schedule a close session
because we have not received a proposal from labor.
we are kind of waiting for things.
for things to mature.
people made specific suggestions and I do not want to
comment on the two minute but I concerned about some of
the things that they said.
at some point, I would like either a close session we
can discuss what's going on.
at the end of the board meeting we can do this.
thank you.
any other comments regarding the employees or regarding
our rental loophole?
>> is there a way, can we get those comments submitted
that people presented today?
>> I'm not sure what you mean?
>> those that came forward and had their two minute
presentation is her way we can have those submitted
four--
>> everything that is in the board meeting is a recorded
on audio.
you can go back and listen to it if you like.
>> thank you.
>> okay, anymore discussion discussing our public
comments?
I will go to the approval of the minutes is there a
motion?
>> move approval.
>> second.
commissioner anderson the motion was made and who
seconded?
all right, commissioner loving.
mine.
all in favor say yes?
motion passes.
we will have our verbal report from the executive
director.
>> good morning I going to try to move this along.
I just want report that last month the board gave us
authority to put in a bid on a small parcel of property
nearby.
with the hope so we can secure some additional parking
spaces.
the actual bit that one was twice, more than twice of
what the asking price was.
we did not win it.
secondly I want to let you know that may 11 was bike to
work day, and we can pass at around.
this is a photo of the participating employees,
stephanie shaw usually participates and I missed her
this year I don't know why.
I wanted to highlight the affordable housing week
events, the housing authority was a sponsor the event we
also participated in other events.
we had the breakfast, we shorter faces of affordable
housing video and I was on the panel that afternoon
regarding measure a with supervisor chavez and wayne.
we also attended at one of our senior facilities, there
was a health trust presentation with life steps on the
food security issues.
if you can pass it around, this is a handout.
specifically, would senior population trying to resolve
food insecurities and life steps has been working with
health trust under some pilot projects to organize the
seniors, our residents to go and become kind of a second
harvest food bank center.
it's been very successful.
I was on a panel with sandy perry on federal funding
cuts choose a night, and then we also attended an event
with west valley community services.
one of our staff attended that amount unfortunately it
was a rumor circulating that people, batches are going
to be available.
our staff member had to answer 100 people and say no,
I'm sorry you receive some bad information.
that one was not so good.
finally we had a movie night and we show time out of
mind which is a story a street homelessness in new york
city.
it was a really moving story.
I think that concludes our week events that we as an
agency participated in and then I wanted to echo the
thanks to the commissioner for helping me and organizing
our newspaper coverage of our 50th anniversary.
>> it was really a wonderful week.
I really thank all of you who attended those events.
the breakfast was really well attended and I really
enjoyed the whole event.
okay, we have a verbal report from the county of santa
clara.
mr. Kitty.
>> good morning.
over the last few months the county of santa clara has
been working with the housing authority to begin to
implement measure eight which is really setting the
stage for how we achieve the counting's housing parties
and the club goals that we all as a community have
adopted.
surely there's some technical pieces which conclude,
what are kind of the guidelines for our investments what
is the minimum number of supporting housing units for
development etc.
pick another piece that is often overlooked is this
development of a share set of goals.
when all the jurisdictions endorse a plan, there was a
goal of creating 6000 housing opportunities and among
those there was a goal of new development a total number
of new units.
with the passage of measure a, we have begun to revise
our production targets and one of those key targets is
to the creation of between 1800-2000 units of permanent
supportive housing for homeless persons with disabling
conditions and other persons who are at risk of homeless
and who are disabled.
even before the proposed budget from the trump
administration, we all face a lot of uncertainty.
uncertainty from budget cuts, tax credit pricing,
availability of impact fees a bell ability of land so
even though we set these goals we have to work towards
him and it takes a lot of effort.
now, now that we have measure a this extreme partnership
with the housing authority and the city path --san jose,
now is our one opportunity to achieve those goals and I
think that we all have to try to adopt and endorse those
goals and then try to manage the resources that we have
now and try, if necessary, get back in the future in
order to meet those goals.
we are thinking about 1900 units of permanent supporting
housing.
but more broadly, we think that there will be 4800 units
of housing affordable to extremely low housing and
persons and we think that over the next 10 years, we
will have to finance or construct 120, hundred 40 new
developments.
our goal is to finalize the goals and finalize the
program guidelines by the end of june an issue a notice
of fighting ability and have the first issuance of the
pound in 2017, while we can make commitments of the bond
funds prior to september 2017 the first ability to
convey funds will be in the fall.
I am happy to answer any specific questions you have
about the bond implementation or maybe come back on
another time, talk to individual board members about
what we are doing with our program in conjunction to the
housing authority.
>> okay.
how you formulate the 1900, is that also include the
state of the budgets as we speak, as of today?
the budget cuts, the federal budget cuts?
>> the goals are based on the numbers we set forth
initially in the committee plan adjusted for the
additional funding that we have to measure a.
the question is, do we have enough money?
I'm not sure, do have enough money at the state and
federal levels?
not sure.
but I think, we have to set the goal and move towards it
versus tronic calculate how much money we have and then
setting the goal.
because, well--
>> we understand the uncertainty.
I would like to have it's possible and perhaps another
meeting if you would be willing to take 30 minutes or so
and actually agenda highs a little tutorial on what's
going on.
you've covered a lot of ground and shame on me have not
been doing my homework what's going on with the county
but I would like to know more about the different moving
parts your 1900 looks like, something about the bond
issue and so on.
as context for us to be able to make informed decisions
about what is it we want to do and can do to help you
get, all of us could from here there.
>> sure I'm happy to work with catherine and her staff.
>> yes, that would be an opportunity for us to really
put our arms around it because right now I not sure
exactly how we arrived, how we get to that point.
>> thank you.
mdm.
chair, I was wondering if we could move to the items for
discussion b1 and b2 and postpone the house and
department report because I know that we have one
commissioner who has got to catch a flight at 11
o'clock.
>> okay.
we are going to amend it and take items be one right now
so we can make sure that we have a full contention of
commissioners voting on this.
I move approval.
>> do we have a second?
>> second.
it's been moved and second any discussion on when a
vista mobile home per park purchase?
we are talking about --it's page 41 in your packet a
goes through 113.
it's the entire purchase and sale agreement.
it was a lot of work on everyone's part including our
general counsel because our real estate council left the
country.
he got the fun part of finalizing the exhibits and on
the last nips and tax.
it was a lot of work.
>> commission anderson moved, drive a second?
commissioner o'neil.
we are not into discussion any questions?
>> just by way of comment we've heard a lot about this
already so I don't really need for any further
information myself.
I can go further and say that I think that this was a
very skillful piece of work very well executed those a
lotta dragon to slave from here to there to make this
happen it's a good thing it's a right thing to do.
the numbers right I'm not a number sky and this number
six we just fine.
I'm happy to make the motion and see the purchase go
forward.
>> okay.
anymore discussion?
okay.
>> I would like to say thank staffing catherine.
when this first came up and they raise issue and look
like we were never going to get there and so again,
kathryn, brian iyer staff that worked on it an amazing
job.
it's really a good result in a makes a housing authority
person separate dissipated in this look pretty good.
city of palo alto, that's amazing.
>> it was a collective effort and the commissioner is an
amazing ally.
>> I also wanted to comment, during the week affordable
housing celebrating that with this purchase agreement
was amazing.
it was a timing, the location, everything.
I want to commend staff as well on this entire process.
it was not easy.
>> this problem, the issue of when a beast a goes back
so long ago and it's amazing to have, to be able to
witness a solution.
it's just amazing.
I want to thank all of our allies and I want to thank
supervisor for taking charge and releasing this through
and really being a great ally for the housing authority.
>> I'm not a religious man but I want to thank god that
hud will give us a research for this to make up the
difference between the city.
>> we will need a roll call vote I believe on this.
okay.
we are now, on one, one for we will look at the except
the report on the executive director.
and improve recommendation for the hundred and 80 day
expiration date.
>> thank you.
on page 5 the report on earth funding use.
we are currently serving 94% of a prorated baseline and
we are using let me turn the page, 96% of the funding
that we currently receive from hot.
we have 571 households with what we call a shopping
voucher currently looking for housing and if we lease
this up tomorrow we release-happen that's a little too
close to comfort for us.
and additional budget cuts which we do not know what the
federal budget is going to land that we all are
cognizant of the fact that we have a federal debt and
interest payment on the tap that compete for the
different budget priorities of this country.
if you have a presidential agenda that wants to support
defense expenditures that wants to support
infrastructure expenditures we have seen the headlines
that in 2018 the proposal is that we cut social service
and the safety net dollars.
one of the measures that we are recommending we did an
analysis of the folks with the shopping voucher's and
their people who had the voucher and have been looking
for more than a year.
burp folding it to full strategy number one that the
board approve an agreement to provide housing search
services for these folks who been looking for a very
long time and that we also reinstitute the expiration of
the voucher.
in other words, every household cannot locate housing,
we will take the voucher back and either give it to
somebody else so we just take about your back because we
don't have money to support that voucher.
usually, when you have a radical coal cutting you can
look at every shopping and pull that back.
that's one of the first things that you would do.
I don't know will have consensus in the federal level
for extreme budget cut but this is just one of those
things that we can put in place to get ready.
what this measure does, it appointed disruptive cut down
the line when the funds are cut just cutting off the
voucher.
instead, were proposing that we use our current
resources to do what we can to help those find housing.
our suspicion is that these folks have had their voucher
for more than a year probably have some other barrier
that is preventing them from being able to lease up were
hoping that they'll be able to respond to that on two
levels.
number one, help them find housing because they been
doing it and number two help to work through whatever
barriers that may be preventing them from sealing the
deal with the landlord.
we are proposing, the standard hud limit is 60 days.
where proposing 180 days.
right now have no libido at all.
every 60 days a household be required to check in on the
housing search efforts which is a required to do now to
keep their voucher, but after hundred 80 days their
voucher would expire unless they have a reasonable
accommodation request or some kind of mitigating
circumstance.
the proposed admin plan change is attached on pages
118-122.
if you have any questions, we have a policy staff here
but we will try to answer them.
>> can you comment on affordability?
>> yes.
it is possible if somebody has a housing voucher and
they been searching for a very long time that they can
use the voucher and poured out of the county and
contract with another house already for housing
resources may be more available.
if the voucher is being issued to someone on the
waitlist who is currently out of county, there's a
requirement that they find an apartment in santa clara
and live here for one year?
yes, when year so that would be a portability
restriction for those families but what we are focused
on is a folks have been looking for a year.
>> okay.
any discussion?
do we have a motion?
sure.
>> the number was in here, what was percent of the
people who are looking that have been had a voucher for
more than a year.
janine would you like to come up?
>> I think it's on page 116 is on page 11750 that are
more than six months old.
and I think of that amount about 50 or more are a year
old.
lesson 50.
>> and I recall the first at this we had quite a few
people from the community talking to us with a problem
when there are landlords willing to rent and we should
be taken the voucher away.
we had to three meetings where that was an issue.
and then we came to this proposal that we have now.
I'm not sure, are we going to go back to people coming
in.
people that cannot find a place?
>> that's a good question but a few things have changed.
our payment standard is increase over competitive.
our rental market is softening a little but it is
softening.
the county and I think the county adopted an ordinance
against discrimination on source of income and I think
other cities and other communities are looking to also
reinforce that and then we also have the issue of just
cause evictions now being local ordinances that will
support the retention voucher.
we've had some change, I cannot tell you that people,
complain but there is a point if we don't have money, we
do not have money.
if people are not using these funds there may be
somebody waiting in line who can.
>> the way I understand it if somebody was at the six
month.
then what they be assigned to help them with this help
them before they had their six months?
>> the idea is for those people who already have about
your more than six months, they will get another 60 day
extension and we wouldn't just cut them off because they
had the six months.
during that time that will work to try to get help and
find a house.
moving forward, if the board adopts is, the bad men plan
moving forward any new vouchers issued would have a six
month maximum.
>> nobody would just have their voucher pulled out
getting notice or opportunity to work to find a place
and work with some of our stuff?
>> that is correct.
>> commissioner, I'm good have to leave but I in support
of trying this I would like us to understand after we
implemented.
shall we approve it after about six months to understand
this is disproportionately affecting special needs
population?
I would like to know what these barriers are we should
know for example if it's people that have severe mental
illness that that makes using this voucher.
I think it would be worth monitoring and reporting back.
I do not know when you're going to vote but I don't know
I can say yes right now.
>> it may make a comment.
go ahead commissioner anderson.
>> I just wanted to say what jennifer just said and even
further and say wanting to get feedback as to how
effective you going to pay that amount to have folks
assisted.
we want to know is that rules along whether or not it's
working or not.
how much bank are we getting for our buck.
having said that they asked some good questions to me
and that is that a, there's a good reason to do it.
we got a limited resource and there's always folks who
are fine for the resource.
how long is long enough to have no limit seems to me
does not make any sense at all given the changes in the
marketplace and going hundred 10% of the numbers and all
that.
it feels to me that this is another skillful effort to
look at a hard question and come up with something that
makes sense.
it could be difficult for some people but then at the
same time off from a hand in finding a place to stay.
and then some metrics as we look over the shoulder.
I move that we go along.
>> you move approval?
do we have a second?
>> we will still continue the discussion.
okay, commissioner o'neill seconds.
commissioner gardner?
>> I just wanted to comment and bring forth the idea I
guess the question is are a landlord incentives can they
be applied to the hundred and 50 recipients?
>> our landlord incentive is if the landlord leases from
one section to another section tenant, were encouraging
aren't senate tip is to encourage ongoing leasing to
section 8 that's the way it works.
I think we start going into other kinds of landlord
incentives to make connor other consequences which we
heard a lot about this morning.
I would be cautious to start throwing those out there.
the thing about this, they been working in the community
on some county projects to serve very difficult, special
need population will have a little difficulty
navigating.
I think that they have contacts are landlords they
specialize in the mom-and-pop and I hopeful if there is
a path forward for these folks that this is the
organization that can help them get there.
>> the conclusion to that would be, it would be
interesting and helpful to understand that relationship
between the search in the landlord and possibly getting
some idea of what that difficulty was in the permanent
housing, between the shopper and finding that right fit
for the landlord.
>> when we bring the report back in six months perhaps
we can have them come to the meeting and describe what
they seem.
>> I have one other question.
are all the people with vouchers now shopping, not just
want to have had them for a year or even six months but
are all the people who have certificates now regardless
of the time that the panel are they going to be able to
access this?
>> the way we have a currently is that we are going to
have them focus on the people who have their voucher for
six months or longer.
and then moving forward anybody who gets their voucher,
once it hit that hundred and 20 day mark they have 60
days ago and that 60 days to be concentrated with this
access.
>> one thing that you bear in mind the summer is a big
moving month.
there's a lot of activity in the summer months and there
will be a lot of families would shopping vouchers were
going to be moving because that's what they do.
we are targeting those that have had their voucher for a
very long time.
>> all right, it's been with second and we ready for the
question, all in favor first of all it's two-part.
reinstate the hundred 80 expiration date as well as
delegate authority to our executive director to contract
with a not to exceed $650,000.
that's the two-part motion all in favor say I?
that passes.
now let me just ask you this.
we have a time certain at 11.
I was wondering if we can, we have a time certain at 11.
were going to take a five-minute break and that will
take up the consent calendar and after that the video
before 11?
okay, can we do the video?
>> you have three other things on your business
calendar.
>> I know.
>> we can do the video any time.
>> can we do the video-- I guess after.
>> that is three business items shouldn't take too long.
if you want to finish the condor.
>> then we can do the other three quickly and then the
video?
you think we can do it till 11 o'clock?
>> the thing about a time certain you cannot stop
earlier but you have to start 11.
it we starting 11:10 that would be okay.
>> were going to have a five-minute break.
okay.
we will call the meeting back to order and will take up
the consent calendar.
any questions on the consent calendar so we can
entertain a motion.
>> we can take two minutes we have amanda gallo one of
our policy and less and she wanted to highlight the
baseline and funding utilization.
>> good morning board.
>> what page, what item?
>> it starts on page 5.
good morning.
I amanda gallo I'm a senior analyst and you might
recognize my name I'm usually the one that submits a
housing department reports each month.
we made a few changes based on what we found out from
the hot proration of our yearly budget.
under and tw agreement had the term is what we are
provided yearly for funding and this amount is reduced
or prorated based on congressional each year.
four 2017, were projecting to be probated at 94% of
funding.
if we look at her baseline including the project base
bouncer project at full funding is 16,671.
they we take 94% of this baseline, we will have 15,670.
we wanted to do this to get a realistic picture of what
our actual lease rate is based on the proration.
it will use a prorated baseline our lease separate
including project base vouchers is 91%.
also, wanted to highlight --bam I'm sorry.
I was trying to do the math.
the numbers you gave us-- I seem different numbers.
>> usually we try to put in our special program report.
you will notice the numbers are little lower in the
first section but to give an overall I guess a view of
what the housing choice voucher is we wanted to at the
project base voucher.
it just goes up if you remove the hundred and 30, the
project base vouchers are prorated lease separate is
90%.
if you add them in a goes up to 91%.
>> thank you.
we also wanted to highlight, we are at 96%, using 96% of
our monthly hat funding, it release up to 571 shopping
vouchers will be at 100% of the funding.
this is something to be aware of in the upcoming month.
this, just in case of a kos agency has some curb.
any questions?
>> no.
thank you.
we look at this on the review but I didn't say anything
and I did leave the room confused but now I get it.
>> one of the reasons why this is important, one of our
requirements as a moving to work agency's that were
required under the law the federal law, to serve
substantially the same number families as we would if we
did not have a single fund flexibility.
the single fun flexibility allows us to make up for some
of the deficits that comes to us as a result of the very
low proration on the administrative fee side.
what amanda didn't highlight is that while congress may
appropriate 94% on the rental side, they're only
appropriating 77% on the admin fee side.
and then you only are entitled to those funds once the
household is lease.
there is a lot of work to be done.
in the last motion we approve expenditure of funds to
help family search for housing.
that is something that we pull out a rental funds in
order make that happen.
we will be highlighting this more and we talked about
the possibility of sketching-I've been scheduling a
special meeting and we'll talk about this more at that
time.
the second thing I want to highlight is what were
operating under a 94% proration the appropriation for
2017 was finally made hud is currently paying us under
that 94% proration but based on the budget that was
approved for 2017 we do not have by final numbers we
think it may inch up a pointed to seward waiting to get
those numbers in.
we will not even talk about 2018.
>> okay, do have it any other questions regarding the
consent and the house and report?
>> I like this report we asked for more information a
long time ago when you expand the report and because the
math is something a little complicated if you're not top
of it it but you give us enough information so we do our
homework we can read this memo and forget was going on
and were following it month-to-month for getting in a
real time you get some good graphics and here.
this is your product primarily good on you amanda.
>> I did have a question as far as the page 7.
are we going to want to that.
>> we normally don't discuss this report in detail but
it a question?
>> on april and reading this, is that as of april or
actually in the month of april.
>> during the month of april, yes.
>> I wanted to commend the finance reports as well.
it was a really thorough description of where we are and
I know the future we may not have these wonderful
figures but I commend you.
I think the figures are great and looks like we are in a
solid financial, good financial ground here.
thank you.
and thank the staff also for pulling that together.
okay.
I will entertain a motion for the consent calendar?
okay, we move approval do we have a second?
commissioner anderson seconds all in favor of approving
the consent calendar say I?
it passes.
we will move on to items be three.
starting on page 123.
the bylaws.
>> good morning.
this is a result of previous direction by the board,
first item will be asking is to adopt a resolution 17
07 which would amend and restate the bylaws.
it's a complete restatement.
the changes to the bylaws are set forth on page 124 the
principal reason for bringing at this time was at the
board's direction, we were told that we were renaming
the agency and the name of the agency is in the bylaws.
the first and foremost changes to santa clara county
housing authority that change becomes effective
immediately upon your vote.
all documents brought forth from that time will now be
in the name of the new agency and then other changes
that need to be made with the name change will be rolled
out accordingly with the various outside parties over
the next several months.
in terms, there's a couple of changes to the agenda.
the names of the agenda and some the structure on the
agenda at the other kind of significant change for the
way you do business, you no longer will need to do a
rollcall vote unless it's at the chairs discretion if
the chair would like a rollcall vote or if you try a
voice vote and it appears that there is some no votes
and you want to make sure you want to know what the
count of the vote is then you can say, let's do this as
a rollcall vote.
once you do this, you won't do a rollcall vote to adopt
a resolution.
that will make a little bit more streamlining.
the next resolution is amending your previous yearly
resolution that sets the schedule of meetings that
resolution set all the meetings on tuesdays which been
the tradition for a very long time here but, you have
previously directed that we should look at go forward
with moving it to thursdays.
this'll formalize that in the new dates are in the
resolution.
the fourth thursday of every month beginning august.
>> we will work, we gave you a calendar last year and I
do not know be used it but hasn't blocks that show you
when were open and close.
do you have a great we have one ready.
>> great.
that is very useful.
thank you.
>> the final actual rescue to take his adoption of the
resolution which adopts a public record access policy
for the board itself.
this is for you, and this is in response to california
supreme court case which clarified that the duties of
public officials when you get a public richard-haven't
what is considered a public record act versus not and
basically the supreme court has decided that it doesn't
matter where the record resides whether it's in your
personal device or e-mail if it involves a public
business, some matter before you then it really is a
public record that may be subject to disclosure.
there's rules of what's exempt from disclosure it's just
for the have to look to find public records.
we have a full policy that basically gives you a device
and you are receiving an ipad, we encourage you to keep
all your records related to this commission on that
device e-mail and whatever other communications you may
have.
that way, if you receive something let's say on your
home e-mail we encourage you to just forward it to your
commission e-mail and then all the records that you have
pertaining to this commission should all be the same
place and then we can find that were not have to go ask
you to look for your personal stuff.
>> okay.
let's open up the discussion anyone have any discussions
regards to the bylaws or changes?
>> I have a recommendation.
on page 129, section 5 that first paragraph that talks
about basically, how to
>> is removing a commissioner without a cause?
>> I would like to delete it.
it's repetitive and already stated
>> mme.
chair if I may offer a letter background for the rest
the board.
this was when I was serving as general counsel outside
counsel.
there was some discussion on the commission about the
ability to have a commissioner removed for failure to
attend meetings.
only the board of supervisors as you point authority has
the ability to remove a commissioner and you can only be
removed for cause.
at that time, it was the will of the commission that you
added an extra layer and you would only make a referral
to the board of supervisors if due process had been
afforded here.
it actually adds a second layer of due process and it
would take longer if you have a problem and you need to
remove a commissioner it would take a longer.
time for the commissioner to be removed.
I not sending that attendance would be a reason because
I don't know if that would be a cause but I suggesting
that if you have a problem with inappropriate conduct,
this would actually lengthen the time and have more due
process as opposed to perhaps the board chair or
somebody approaching the board of supervisors and saying
I think we have an issue.
I wanted to let you know the kind of a background for
that language it was added but it is covered in state
law.
if you want to remove it, that is fine.
>> I agree with you.
the state law does make it for cause before the board of
supervisors.
and I think it could go several ways.
if there was a perception that someone wasn't doing
their job or someone had a psychotic break or something
like that then there's a lot of ways we can do it but
the chair can discuss it to the board of supervisors or
whatever enemy commissioner felt that was inappropriate
action I suppose a commissioner could asked them to look
at it or whatever.
I do not think we need a rule for it.
I don't like the role I prefer something it's ever
happened but if somehow-- maybe not doing their job but
that some significant problems.
you gotta go to the county anyway.
and I trust just go do it.
>> commissioner o'neill?
>> we did not talk about this that much had bylaws
meeting.
I do see actually see a benefit here and that it allows
this board to have that discussion about, let's say lack
of attendance.
before he goes to the county board of supervisors it was
an opportunity to sort of may be clean up our own house
issues before it becomes a public issue.
once a goes to the board --whichever commissioner were
suggesting perhaps my not had fully attended the
meetings and prevented us from getting a quorum, perhaps
might be supported by whichever county board member that
appointed him and then it would lead to kind of a
dysfunction whereas it we didn't here at first it would
go to the board supervisors with our recommendations
commissioner so-and-so had not be intending.
I do see, much you want to vote on it right now having
doing it much thought but as I read it and try to think
about problems that we've had on this board or other
boards I kinda like something like this because it might
resolve the problem.
I'm not sure that this is the actual language.
I'm sure that there's something here that might be
beneficial.
>> if you want to take some time and look at section 5.
what I would say, it gives the commissioner a right to a
notice of hearing before this commission and I am saying
in my view is that I do not want to deal with that.
if the commissioner doesn't like what's happening in the
commissioner can put it on the agenda and other
commissioners can hear it.
I don't like being bound to some kind of a notice
hearing process here before it goes.
I think it without that we still have the opportunity.
I can go either way.
I take your point that's think about it and I prefer to
talk about it some more.
actually it didn't have anything to do with that it had
to do, my point is that we do not have it's an
unnecessary procedure whereas we do not have the right
to recommend any removal.
it's up to the board of supervisors.
yeah, to the board of supervisors.
>> what I was going to suggest, I really don't feel that
this type of thing belongs in the bylaws and I'm
thinking that perhaps if you want to have some kind of
procedure or policy with regard to this issue then why
don't we just bring back a policy and you can have that
as a separate discussion?
>> I really don't believe that, this is more a procedure
than a policy procedure not a bylaws.
>> I accept that.
>> let's do that.
then I would move approval subject to the removal of
section 5 with the direction to staff bring back a
policy to handle this kind of thing.
the more I think about it I think you're right.
when you do something that's a policy rather than just
having sort of nothing.
>> right because it be no stopping it we had a
dysfunctional board the chair would go but some other
would go pretty soon you have the supervisors involved
in our battles.
I'm not saying any of that would happen I think were all
mature but I've been on boards where that type of
dysfunction, happens and it's hard to stop.
>> my problem with the commissioner did have to do with
the labor but the way he dealt with it.
well, there was that and also something else.
>> it was an action abs-haven't absent commissioners
personality.
anyway I want to go through that again because it
reminds me of horrible, horrible experiences.
commissioner anderson has moved and commissioner gardner
is second.
we will have a rollcall vote.
any other discussion or question before we take the
rollcall vote?
okay.
we will go ahead and have the rollcall vote.
this is our last rollcall vote.
>> that you approve the other two resolutions?
>> yes, all three.
>> I'm sorry, was that also with the technology that
were improving?
>> yes.
>> do you have a question about that?
>> yes.
>> is it technology?
policy?
>> policy.
brian, did we forward all our former emails I wasn't
sure?
>> I don't think that's necessary.
but if you feel like it, you can do that.
>> we can save this for another discussion but I had
questions as far as the actual use and it's the property
of the housing authority and technology and how is that
a protection on that as far as, is it insured?
>> it is not insured and we can give you those in a
private conversation training use the technology.
>> awesome.
any more questions before I take the vote?
okay let's have the rollcall vote on all three.
>> I just thought you took the rollcall vote?
>> do we have to do it again?
>> no.
what you cook, if you feel that you weren't sure that
you took a vote on the other two resolutions you cannot
do that by voice vote.
>> the clerk confirmed that she understood your prior
rollcall to be all three actions.
>> for the record, that was intent of my motion.
>> and the other section 5 will be brought back asked
policy.
we are at 11 o'clock so we're going to have to take e6
>> we can quickly dispose, I think four and five should
be fairly housekeeping items.
before is adopting a resolution and housing authority to
change providers for our dental and vision insurance.
this is the housekeeping matter this is just no change
to the employees.
it does offload some of the administration of the
benefits because this organization provides more
administration support so premium wise there is a big
difference but is can be significant from an operational
standpoint.
>> we went through the-- that was my concern.
the question was at the cost more or what.
that is myself when the mic background.
the second piece --that is my cell phone and the
background.
's so, if you take into account that were saving
administrative cost because the --the program provider
will do something with that.
it felt like it was more or less neutral and it would
take some of the burden off staff.
I would move approval.
>> okay.
we have a motion to approve is her second?
second commissioner o'neill seconds.
all in favor say I?
great.
it passes.
now, let's take on item b-five.
>> yes this is the last business item.
again, this is under our program regulations there are
two mandatory items that we have to screen applicants
for.
when I is lifetime six offender registration status and
the second is a manufacturer at method of remedying's
circumstances.
we were not to bid on this contract kind of refresh it--
meta- --were asking for board approval.
>> any discussion?
>> I think it's a hard requirement that we do it so we
have the right mentor and all that's why move approval.
>> commissioner anderson was approval to we have a
second?
>> second.
commission there lorie second.
any other questions?
all in favor of approving this agreement signify by
saying I?
it passes.
now, we have --bam I wanted to introduce consultants who
have been working with us for a few maybe a year now.
they are call the tax credit asset management
corporation?
is that correct?
we know them by that name.
what they been working with our stephan is not only
fully transitioning us an agency that manages property
to one that manages assets and part of that involves the
training of you are board members, you have a role
respect to our housing authority portfolio and we want
you to better understand your role so they're good to go
into some of the basics of what your role is with
respect of our 29 different affordable housing
properties.
I will let you all introduce yourself.
>> thank you.
hello everyone I ellen sally's army managing director.
I'm joined by my colleague elaine magill who zone of our
lead consultants and prosthetic manager.
as catherine mentioned, we had the pleasure of working
with them on their asset management function and that is
really going to be the focus of this presentation.
to keep it clean and simple talk about asset management
were talking about how do we take care of the properties
that we own and invest in.
in this presentation, we brought to you today, we will
talk about the roles and responsibilities of folks who
work day today on asset management responsibilities.
and throughout the industry really, and how those
responsibilities defer from rules and responsibilities
of those who are at the board level.
we are an organization that has done a lot of work in
the country with other housing authorities and other
capital providers, we learned a lot from these
experiences and we are trying to bring that introduce
that best practices to them in this area.
I am going through the first few slides and then I will
turn it over to elaine who will take us to the rest of
the presentation.
and then perhaps, we can do some questions and answers
afterwards.
so, this is our agenda.
the first thing that were going to talk about which
should be quite familiar to the group here is that this
understanding the work that you do as a housing
authority we think it's important to start with this
just to set the stage so we can understand the rest of
the presentation as we get into your relationship to
your properties and the key rules with respect to asset
management.
number two, we will talk about your inherent
relationship to your properties.
and how that typically works across housing authorities
and then we will end with this sort of a situation of
today.
how does a well oiled asset management function work and
what are the key rules and responsibilities.
the scope into number one.
understanding what you do.
much of this is not all should be familiar to this
group.
we think it's important to start here and get the basics
down and lay a foundation.
this illustration starts with those areas that, most of
us know are important to the housing authority which is
providing a social good for the community that you serve
and administering housing finance programs.
example 8 for exam goal and other ones that have more
public housing that they're administrating and again
providing social support.
in addition to all of that, there is a host of
responsibilities and work that you as an owner as an
operator of real estate of multifamily developments have
to worry about so you own and you develop, you operate a
department billings for low income individuals.
and often as is the case, you will use low income house
tax credits which are administered by your state monitor
agency and funded by the irs.
the portfolio or the properties that you're managing and
operating are often funded or financed by this important
tool.
your mission is very critical this is your guiding light
here this is very familiar to all of you is to provide
and inspire affordable housing solution to enable low
income people and santa clara county to achieve
financial stability and self-reliance.
as I mentioned, and addition to trying to fulfill this
mission you're also owners of real estate and that
brings a host of responsibilities.
that ownership itself is done in support of your
mission.
in this illustration, what were trying to communicate
with you is the complexity of the properties that you
develop own, and manage.
and all the different stakeholders involved in these
transactions.
as you can see, it's a variety of capital providers,
investors, stakeholders and perhaps the most important
stakeholder in this illustration in any of these
properties are the residents the committees that you're
trying to serve but you also have lenders who provide
loans and those loans have to be service.
on the other hand, you may have a tax credit investor
and you may be familiar with the term syndicator the
middleman that brings the developers and investors
together.
on that and there try to get tax benefits from these
properties the part here that relates to you is the
owner developer side.
you are mostly responsible for ensuring that these
properties get billed or rehabilitated and that they get
well-maintained over time and you have your own
incentives in addition to profits and fees you're also
trying to fulfill your mission as a public agency.
a complex sort of array of actors in each of these
properties.
I will turn it over to elaine who will talk about your
role in property ownership.
>> thank you.
hi everyone.
we will talk about the role as a corporation in the
ownership of these properties and what is the
corporation responsible and how do you fit into the
bigger picture.
this little graphic, they own quite a few little kind of
shell corporations that are the organizations that have
built this properties this is how they are involved in
the properties.
but, each of these affiliates each of them are pretty
much self-contained little companies and they operate
pretty well on their own.
the each have their own board of directors.
I don't know what's happening here.
they have their own boards of directors they oversee and
monitor those properties of these entities which are
their purview.
I don't know what's going on with this-- they contract
with property management so they are closely involved in
how they operate at those properties social services and
really again they are self-contained little company.
they are watching their own income and expenses that
they are solvent and feasible as companies.
what is it with them?
what does that mean?
okay.
here's two examples.
these are two properties from the portfolio that you
guys own.
if you can see, let's see?
this is the name of the company that owns it and again
this, this is the entity from the slide before that is
how they are involved.
that's a little company that is involved in this
property.
down here, this is a name of who owns a property but
this is how we are involved.
so, the city is one of those, one of the owners.
a place that owns the building is been door drive
partnership again, one of those companies is one of the
partners that owns the property and the board of them,
remember its own board is regularly monitoring
performance.
it was really looking at how is they operating and
performing.
>> we are a member of that board?
>> they had their own membership.
it has its own board but in operates internally.
no one, but most of the people in the board of
commissioners are not member of this board.
>> either way, it's not a fiction it's a natural fact
that there's a separate company, we are not that company
and we don't want to be the company.
what we do and the way it works it's a little tricky.
if you looked up at the board of directors of each of
the smaller companies there are staff often times with
other people on that board and some, you may have some
from the tax credit folks that have an interest in the
property.
basically the control of those companies is through our
staff.
we are actually in their it's a good presentation
because even for me and I was present when they were put
together and have thought this but sometimes I'm
confused and what our role is this, as your old the
housing authority owns via san pedro incorporated.
the board of directors are established according to that
corporation and bylaws.
>> I think that brace said down.
and I don't want to get us caught up in the legal stuff
but yeah.
>> of those eight properties are those part of our
portfolio?
of the properties?
>> the aeg these are acronyms for generally, it sounds
for housing development corporation and a lot of our
corporate names have hdc at the end but they are
corporation and not properties within each of these
corporations they have responsibility formation
--managing.
there will be more than one property like one of them
has around six properties under its purview.
because those are all properties that had to have the
arms length transaction.
these corporations as was noted on the slide right here
these corporations actually have the contracts with a
property management company they manage of those
contracts because they are the general managing partner
for the limited partnership.
if you go back to the next slide, you will see how
owners been door drive, that's the ownership entity and
the ownership entity is controlled by san pedro hdc.
the rest of the partnerships is a tax credit investor
that's kind of in the background saying I'm giving you
this money, this is what I want back and this is what
you will too.
>> yes, very well explained.
I think the question that you're asking, what is her
involvement more directly?
yes, they make a small to be able to get the building
financed, these buildings are expenses and they need
money.
one of the ways that the building was paid for was them
saying, we found all the money we can get from the state
and investor whistle have a little gap okay, will fill
back so them as a corporation made a loan sort of to
itself but that loan is to-having given by them.
in that way, there directly involved.
they also a guarantor some these bigger loans that the
property holes.
it has a loan to the bank, that bank want someone to
guarantee that loan.
also the investor want a guarantor of the benefits they
have.
just another example, a nida is a way that they are
involved.
but also, they made a small loan and holds a lease on
the land that cypress garden was built on.
they were involved directly but on a more daily basis
sort of managing the property, there is this kind of
means her --that operates on its own.
and they may have other affiliations that are direct but
the daily stuff is done through this structure.
we have talked about this a bit but, you know as
commissioners you are, your responsibility to the
agency.
you have fiduciary responsibilities and wondering what
is on the balance sheet and certainly these projects are
underneath that.
but, the way this program was structured the affordable
housing program recognize the complexity of these types
of projects.
their $14 million 20 million with multiple stakeholders
and dozens of not hundreds of residents and oversight
from a number of different places and the reality of
managing that level of exposure and complexity, that is
not where our board can fit in.
a board is really intended to again have oversight from
the agencies.
you have a mandate to look what is relevant.
if you have this corporation is kind of managing its
affairs there's really no need or reason to be caught up
in the stuff that they are doing.
your involvement is in the things where it costs is
over.
the guarantees and feel the loans.
the three kind of primary ways that they are directly
involved as we saw before is as a guarantor.
as a board of commissioners of the agency, you should
know that these exist know what it means to guarantee a
loan and know what it means to guarantees on these
investments so if you prior to guarantee your
responsible for kind of knowing what it means and the
exposure it carries with it.
as I said, they're expensive and complicated properties
and some of that cost is usually paid with a loan.
just like the mortgage on your house.
you have to take out a loan from a bank typically and
whoever's given the loan wants to be sure that they get
paid back similarly whoever's making in the specimen
want to make sure that they're getting what they said
and because these little h dc as we talked before, the
only little the property but they don't have a lot of
history they don't have credibility and they're saying,
we are kind of cosigning we will step in and fill that
role as a back stop partner.
>> if I might just link this today's agenda.
on today's agenda when you approve the consent calendar
there are two reports.
one on laurel grove and one on park avenue.
when you read the background section it saiz, the reason
we are telling you about this is because I housing
authority has guaranteed construction and together this
is $100 million worth of construction.
you are oversight and the reason were giving you these
court reports on construction is because if there is a
problem with construction the expectation by the lender
is that the housing authority will step in and provide
whatever remedy is needed to make sure those buildings
go up and the longest repay.
okay?
kind of link it to today's agenda.
>> yes.
just a little note here.
this is actually kind of a good thing.
it gives them sort of the ability if something were to
go wrong with the property to kind of step in between
before the property got lost to the bank before closing
on it.
one of the --the second weather involved is like a land
lesser.
releases or land leases again, as a member of the board
of commissioners know that this exist know what a land
lease is spirits is exactly how it sounds and it saiz
come here some land I'm going to keep owning the land
and you can pay me rent on it and then you have certain
rights to do things on top of my land.
>> I think my fingers might be too big.
this can be a reason to engage its party just again to
keep cost down this is a very expensive environment that
you guys operate in.
certainly, having the ability as an entity to kind of
take the cost of land out of the cost of building a
property is great.
it allows the property to be built less expensively and
serve two people with lower incomes.
>> had to step in.
I want to give another illustration.
we have one property in our portfolio where we do not
own the land.
and that's the d rose apartments.
as elaine noted you can keep the operating costs of a
project down with kind of a below market lease right?
the lease revenues are basically are taken out of the
equation so folks are paying the rent this is an asset
management issue that we will need to be bringing to you
in the next few months to resolve because that lease
that this family owns is supposed to go to a market rate
level.
that would not be a sustainable read payment for us to
keep those folks in the income housing.
just so you know, we have one property where we do not
own the land.
>> actually, exactly.
they can set up these leases to be below market.
much less expenses what it would be you can probably get
a quite a bit of money and buy them being the landlord
on it can actually a lot to be less expensive unless
kind of invasive.
they can say, I'm more than happy for you to put the
affordable housing on the land.
they can say yes, have a land I will lease it to you for
a dollar year or whatever and I will not interact I will
not sort of disrupt how you operate I was in the
background and you can operate on your own as a company
providing affordable housing.
>> the last one is a gap lender.
again as a board of commissioners know that these exist
and know how a loan work.
it's typically someone who recognizing, we found all the
money that we found but I need more.
usually a state, a city or not profit will say, yes, I
will take this little piece else that you can still do
the project that you want to do.
you are accepting an iou from whatever that difference
is.
so hey, we found all the money that we could.
and they will say, okay here's a little iou for $1
million.
this is how it self is involved.
but again, these are quiet little, the operate in the
background.
the back round is not having to make payments on this
loan.
and so having a big loan from some financial institute
that wants get paid every month, this can make the costs
overall feel more less-expensive.
typically, these are soft loans and we talk about soft
loans again basically means you don't have to make
payments on these unless there sufficient money
available.
these are real loans about them they are legal contracts
and they are real and the typical are more gentle on the
building or the property that carries them.
again, payments are not required on an ongoing basis.
>> a hard loan is a mandatory payment that needs to be
made every month or the lender will foreclose on the
property.
a false loan saying only pay me if you have the money to
pay it but because the loan is given in exchange for
serving a low income population, the lender's mission is
so filled.
by way of example there was recently a pocket here call
2nd st.
studios which is going to be over 100 permanent support
housing units and we put project-based voucher for that
project.
they did not secure the tax credit founding seeing after
the no november 8 election the tax credit market took a
dive and all of a sudden they had $2.5 million that they
needed to come up with that they did not have the city
of san jose step forward with some other federal funds
that they have and they said we will loan you this money
because this project is very important to us and it's
going to go up and don't worry, you have to make a loan
payment unless a revenues that you collect are enough
not only to pay your operating expenses but also 10th
flow down to us.
what the city of san jose is in return they are getting
100 units of permanent supportive housing and the
community that will serve their residence.
>> and just to add onto that many tax credit properties
nationwide they don't get built without the soft loans
they are just so expensive that in addition to the cash
that you receive for the tax credit and a conventional
loan that you get from a bank you have to get the soft
loans as well to get those built these soft loan
providers are typically public agencies they can be at a
state level a local level and catherine's example you
have a big soft lender in town that provides a soft
loans to lotta properties again as catherine mentioned,
whatever's left after you pay your first loan your hard
tap must be paid and that is what typically goes to
paying the soft loans.
because you have a mission lender involved they are
usually not as strict about getting repaid as a bank
will be.
>> okay.
they just went through several slides talking about your
relationship and properties from ground leases to gap
financing and other ways that you have to think about
your exposure and how you finance your properties.
in this slide we want to talk about how the properties,
how you over see the properties and two important
takeaways.
I will same now and all same again.
two important takeaways want to leave with these
properties involve a lot of oversight, a lot of
specialized expertise you have tons of folks here at the
agency who are responsible for monitoring the properties
in a host of ways and it's important to recognize what
those folks who work here at the central office are
charged with in relation to your role as board members.
this is important for any housing authority that owns
real estate.
as elaine has mentioned, they are financial implications
as a lender as a guarantor as a land lessor each of the
members with limited partnerships to go with you to the
properties there are similar properties in your
portfolio each property has a variety of financing
sources you have conventional loans you have soft loans
from local lenders you may have a loan from the housing
authority and you may have a rental assistant contract
funded by the federal government so you may have a
section a contract if it's a tax credit property like
many of your assets you will have a tax credit investor
in the properties, you may also have bond financing from
other sources.
again, we talked about land leases which bring a host of
responsibilities for each of those boxes what were
trying to illustrate is how different all the properties
can be.
different sources, different loans from different
vendors you may also have a services agreement with the
city that's in the third box for the third property so,
just a host of financial responsibilities to the capital
providers compliance responsibilities to public agencies
for instance if you have a loan from the city of san
jose they have their own affordably requirements for
rent and income compliance rate your staff members and
your asset managers have to be monitoring constantly so
they can remain in compliance.
every single deal is different and this may not be
rocket science but there is a lot that goes with every
single property.
the force point going back to the major take away when I
started to slide, is that as board members you cannot
really get bogged down on the ongoing operations at the
property level.
you have a whole team of folks who are specialized who
are good at what they do and overseen some of these
responsibilities so think of yourself as very high-level
managers or general-- in an army if you're gen.
eisenhower world war ii, we can have you-- storm
normandy beach with the foot soldiers.
think of yourself as just overseen their exposure at a
very high level that are worrying about all these
details.
what you should be thinking about a course is the
information that you do get on these properties so you
could make important decisions in a couple of minutes
elaine will be talking about that.
when you get together and you have these board meetings
and to have enough information.
>> I just want to check on time yes.
the team keeps tracks of all this so they look what are
they doing?
they're involved in all the meetings and boards to
report to the board and provide information they make
sure that things are being done correctly and on time.
they look at property performance and again, these are
supposed to be little self-contained companies.
they're trying to look at their breaking even are losing
money.
if they are, as a reason for that, what we can do about
it another making money, is that a good thing?
what can we expect next year or is it going to continue
in the future.
they are very involved in the ongoing and daily
decisions about all of this stuff.
property management is very much served on the front
line at each property so the asset management team
creates the yearly budget as well with the finance
department that is very involved and clear about what
numbers need to be met and where the numbers come from.
the group is creating these budget and monitoring
whether there being stuck to a budget.
insulin is useful if you're sticking to it.
and the group is also looking at tenant issues property
management handles some things and are the buildings
being taken care of?
again, these are large expensive investments and so,
part of what they need to be concerned about what they
need to do is these are investments these are our
factory leases how we run our business.
are we taking care of our investment?
that is very much central to what they are doing and
what they're there for.
what's the most appropriate way to involve a board of
commissioners.
we talked about using your time and expertise
efficiently and using their time as well.
nobody want to neglect the things that are important
nobody wants stuff to get missed but nobody wants to
have five people doing the same thing over and over
again.
what is appropriate, what is comprehensive?
the part, what we've seen with been working with this
group and what were seen is how do we make sure that
what the asset management group spencer time on is the
right thing.
when there are new inquiries or analysis to be done are
those things are actually cannot drive an impact or the
things that we were esi question have a good answer how
can they responsibly overseen these properties without
making extra work or distracting focus.
in the asset management function is kind of doing new
assessments they may be less able to do what they are
regularly and routinely focusing on.
trying to balance the new demands and existing demands.
when we work with housing authorities nobody wants
afflicted with information that sells to interpret
because there's pretty good evidence to suggest that too
much data makes bad decision.
having the right amount of the information that is
relevant and that you can look at it.
you already received some you may receive additional
really the focus is on getting information that lets you
make the decision
>> I have a comment and there's a history here.
because we had several of side projects and we were
paying for the operating shortfall.
we found out that we can do that and we had to find the
funds to cover the property.
this was a process that we learned a lot about.
what we need to know just in the general when you're
looking at the conversation this my going to a dashboard
really what we need and what we've gotten consistently
from staff we need to know when there's a potential
problem and we need to know when several properties are
upside down and that work and what we had to do to cut
costs and get our operating flow appropriate console in.
when there are buyouts at the end with times and issues
on these prepare properties staff is, what I would like
to see I don't need to know a lot.
we already have some information as you mentioned.
we look at each property and we see some kind of
information and tell you were going to go upside down or
anything like that.
basically what I want first and foremost to be something
that would be do we have a problem?
I don't need a lot like a portfolio.
and they say you have a risk but the risk wasn't remote.
there's a lot of money over these projects but it wasn't
a individual canet risk that we had to ask right away.
I need to think harder but I'm looking at primarily gave
early warning.
is there a problem with the property.
it can be a legal problem and operational problem it can
be a problem with the folks who counteracted to do the
property management for us.
and you guys have been doing a good job of that so I do
not know what else we need but that was p first thing
for the dashboard.
>> I think you're taking it exactly right.
that is the right question to be asking let me know when
there's a risk and when it's coming down the pike and
how real it is.
and a lot of we've been talking with the crew is I would
focus on this in particular and different ways of
displaying it.
a lot of organization in the industry and a lot that we
work with do something like that.
what we call risk rating or just sort of, something
that's intending to do exactly what describing.
give a comprehensive look at very different omissions
were risk can come from.
financial risk, fire, as their asbestos, physical risk,
litigation risk, market risk.
to have a building that they're putting the railroad
tracks right next door to it.
those are all risks and those can be tracked easily.
to be able to distill those and to something that is
again easy for a viewer to parse on the portfolio level
so yes, that is something that the organization is
looking at and incorporate.
>> the point is, the information that board members are
regularly getting it's not just about helping you make
decisions but also about helping you sleep at night.
so that you will not be surprised.
you never want to be surprised about a major issue.
and the type of asset management that we been working
with his proactive and to make sure we get a met small
problems and through the process we can certainly feed
the right proactive information into these dashboard
reports.
even if you can't do anything about it or you have to
make a decision at least you know what's happening and
you know someone is taking care of it.
we hear you loud and clearly on that point.
>> do we have some dashboard options?
>> I believe we do, yes.
we do.
>> sometimes you have is in on a problem.
if there is a real issue coming up, you just cannot mask
it.
sometimes you need a narrative on what's about to happen
because that's issue may be really big the important
thing here is a informed.
were trying to work together make sure you have that
type are reported.
>> that kind of leads of what my thought of this report
is what's really well illustrated here.
having the substance information for us is critical one
thing that I would think, it's not liking but one thing
that brought to mind is that the human element of this
report and we are dealing on a daily basis families and
individuals and leaving environments.
what kind of supportive services are provided for our
tenants or these tenants on these properties I do not
want to get into the weeds again you guys have
incredible staff that sitting with this but, just
looking at the risk management and the dashboard there.
that's what was brought to my mind.
>> we do a yearly report on our services and so I think
as a part of the dashboard we should take into account
because there's two things we do.
the resident survey and then a report from life steps.
to integrate into this we should look at those reports
and determine whether yearly is enough, it is for the
resident survey because we do it once a year.
but, perhaps some performance measures on the services
front would be helpful.
right now they come once a year and we combined it with
the family self-sufficiency program which can be a
little bit confusion.
the family program is under the umbrella of section 8 so
there's a convenience and having them come in on one day
and do this report.
but it could be a little confusion when they merge it
into one powerpoint.
we can look at that, that's a helpful comment.
>> I also want to make sure is that when we look at
services we look at outcomes and not outputs.
again, that was one of the criticisms.
many times we do not see what are the outcomes.
measurable outcomes.
>> I conclude with that because I think with asset
management a property could be improved on the amount I
don't know, I'm not a realist --realtor but just the
health of the tenants.
I think that would improve a property.
>> may I get a copy of this?
>> sure.
we will make it available, absolutely.
elizabeth the two quick points on that.
I thought it was a great comment when we think about
asset management at our company we do not see it as a
one size fits all function.
asset management depends on the organization and what's
important to you.
we spent a lot of time about the operational aspects
mainly because we feel that throughout the industry
there is not enough focus on that especially among
housing authorities.
asset management is comprehensive it's really anything
that affects the health of the community it's not just
the dollars it's just not sticks and bricks.
it's also the communities that you're serving and
resident satisfaction.
we understand that it's an important piece for them and
other mission organizations.
we didn't spend a lot of time talking about that because
you guys are key in on that and that's what catherine
was a first them to respond to it because we know that
you're thinking about it but we are working together to
make sure it's folded into the dashboards and other
reporting.
>> there are some things that are not captured like for
instance, you mentioned that you were looking at the
balconies because the contractor in berkeley was also
doing some balconies --I really appreciate the fact that
you were proactive and able to go back and look and see
are we in good condition, do we have a safe balconies?
>> we started that effort around two years ago and we
surveyed after there were some students who died in
berkeley so we surveyed and we happen to use the same
contractor in our property.
we did a survey to check out our balconies and there are
some ongoing repairs which are connected to leaks.
we didn't do the survey in our housing department report
two years ago what we don't do is say, and they're still
okay.
>> thank you very much for all of you work here.
I really do, even for some of us will been on the board
for long time it really provided a reminder of what it
is that were, what is our role and I really found this
to be very helpful.
>> thank you.
>> another comment.
these going to balance you?
or finance a report and so there seen a lot at the end
of the year.
they look at those books as well.
that is an level of finance.
and you know, you and I meet with jenny before and after
and talk to them about that.
we've talked about their view on how the finance and how
it's been taking care.
I would say thank you very much for it there's a lot of
insider information and love the pieces I don't think
that I fully understand but this is a good summary and
particularly a board that may not have had the
opportunity to get their head around a little bit.
we have a tax credit financing seminar a few years ago
but, it's helpful to get this information.
it's nice to know that we simply-having simply just
don't on the properties and run them.
I like your dashboard and thank you for your help.
>> we will go forward and we have a discussion now.
I'm very aware that were running a little longer we only
have one little item to do and that is a special meeting
on the budget.
with that
>> this will be to full we are going to present how we
put together the operating budget for those who may have
not participated in this process and I think it's a good
eye here to tack on a close session on labor
negotiations.
>> when you propose what day?
>> were so operating from tuesday so were looking at, I
need that little handy calendar do you have an extra
one?
I think we are looking at june 12 know, excuse me june
13 which is a tuesday.
sorry, were not looking at june 13 were looking at june
20 a week ahead of time.
we can try to put something together, I think june 6
might be a little ambitious because that's two weeks
away.
tuesday.
>> what day?
>> june 20.
>> I cannot.
>> can you do the six?
>> I can do the six.
or the special meeting for the budget?
we are going to do two things if you want, how we put
the operating budget together for folks of not been to
the budget process with us.
the second would be a close session on labor.
june 6?
>> can you do the six?
mr. Commissioner can you do the six?
>> yes.
>> what time 9:30?
>> no, we can I do june 6.
I think liz can't do thursdays.
can you do thursday the 15th?
>> 15th, yes.
can you do the 15th?
you might make it for the special meeting-haven't
session.
>> is your hearing in the morning?
that is far away.
>> let's do it on the 15th.
okay
>> 9:30?
>> I really have to leave in a minute.
>> are we adjourn?
we will adjourn the meeting.