 Welcome everybody. I'd like to call the one month Housing Authority Board of Commissioners. Regular meetings to order. Let's start with roll call. Commissioner Rodriguez. Oh chair. Commissioner Rodriguez. Commissioner Martin. There are executive directors here on the venues. Thank you. Commissioner Daniels County Supervisor. Alia O'Donnell. O'Donnell. Housing and Community Investment Director. Lisa Gavinar, Regional Manager. Commissioner Diablo. Commissioner Diablo Berry. Two waters. Could we have any agenda submissions and submissions about communities? Any suggestions? Nope. Let's review. Are there any comments on the October 18th minutes? Any revisions to that? No, tonight I have a motion to move in the minutes. Second. Let's move in by commissioner Walters. Second by commissioner Diablo Berry to move in the October 18th, 2022 minutes. We are at public invite to be heard. Third. So we have people here from the public that would like to be heard. Let's go with Matt. I'm just first. Thank you chair. Good evening. My name is Matthew Popkin. I'm a resident of Southport Park. Recently moved to Longmont to, I guess, now it's been more than about 18 months ago. So here and a half, sounds longer. It's a pleasure to be here and address you guys. I think it's the first time I've joined a council or commissioners meeting. I wanted to talk specifically on the energy transition. And it's relevant for today's conversation in two ways. But first, a quick background on me. My day job is working for Rockham Mountain Institute, helping cities pursue large-scale renewable energy. Solar electrification and resilience initiatives. This is relevant today for two reasons. The first is when we're thinking about housing and the building stock, we're looking at pricing, we're looking at costs. The more efficient that we can build our buildings and maintain existing buildings, the cheaper and more cost-effective we'll do over time. The second reason is because I share this commission's council goals both for in terms of 2030 long-term energy, not long-term, 2030 we're in 100% renewable energy goals, electrification, including the strategy recently passed by this body. Council getting my commissions confused here, as well as solar pilot project initiatives and resilience goals. Both resilience from natural hazards, heat, winter storms, as well as other geopolitical events and inflation and other costs. In fact, some of the most cost-effective ways to reduce ongoing living expenses and increasing is to address efficiency. And that's energy efficiency has been called the first, the fifth, the invisible fuel that's been called the largest, the cheapest, the safest and the cleanest fuel because it's just using less. And what I wanted to speak to this body today about is how we can do more to support energy efficiency in our community to achieve all of the goals that we all care about here, both for this specific commission as well as for City Council of Large. The largest municipal electric utility in the country, CPS Energy, was in San Antonio. They served about 1.5 million people. They recently had a third party audit done of their energy efficiency program about a decade long. They found that for every dollar invested, they saved about $2. That's exactly what it means. They had a 2 to 1 benefit cost ratio for their program. I bring this up because this is incredibly important for all of the goals that Council has already set that Longman and PRPA have as well. I personally, when I moved here, one of the first things I did after getting overall paperwork by house was actually getting an energy audit for the efficiency works program that exists in this area. My experience was great. I went through and ended re-installation of my house, updated some air sealing and made my house more efficient. That also reduced my energy bills. Approximately the efficiency works program estimates that about 9,000 other households, at least through 2019 when data is available, have gone through similar processes. Let's extrapolate that to today saying about 14,000, generally generous, and another 5,000 throughout the pandemic even though the program slowed down a little bit. So there's 14,000 households to date. The reason that number is important is because there are about 140,000 households across PRPA. So let's assume about 10% of households have gone through an efficiency program excluding businesses as well, which is a small amount as well. We're looking at 10% of the communities that is more efficient now. That's 90% that has a long way to go. And that's really important for all of those goals that had started off from that front. So my point today is that as you consider housing overall, again, not specifically this agenda, but longer term planning for housing, longer term planning for city council retreat agenda items, and longer term planning for renewable energy targets, electrification targets, EV targets, medium solar targets, resilience targets, that you consider the role that a fit energy efficiency will have in a cost effective energy transition for the long run. So that's it. I completely agree with LPC's targets, PRPA's goals, this council's goals, and frankly the goal to keep everyday living expenses more managerial. So I hope you'll consider this as you do consider multiple items going forward for long term, and fortunately, thank you. Thank you. Do we have anything else? Arlene? Well first I want to thank you all for giving us some money towards grocery shopping. They didn't understand it. And between the LHA staff, which is mostly Lisa, and VIA, who the name is also Lisa, put together our grocery shopping list, or at least routes, and today was the first day that we did one. And so I thought you guys might like to kind of hear how it went. I rode the entire time with the route, and it was really exciting to me. So here are my first day things. We got a 20 passenger van, which they had originally told us we'd probably get a 10 to 12, but we got a 20 passenger van today, which is really quite nice, and they said that would probably always be what we would get, which is great, because then we can grow. If at all possible, the driver today was excellent, and he's driven with VIA for a long time, and he knows a lot of people at the places, so he was really good. If at all possible, we've asked if he could be the majority of the time the driver, so we'll see how that works. We did six housing very facilities today. One did not have any people who had signed up, so we did six of them, which by the way started at 8 and at 2.30, so I mean we were growing. We took 21 residents. We had seven people with walkers, three people with kings, and one person with a wheelchair, which we did not know that we were getting. I'm not quite sure how that happened, but it all worked out good. We had all ages from 90s on down, male to female. So we went today to two king supers, one that's on May and about 24th, and the other which is already at 17th of pace, so we went to both of those places today, which is what people had said. Now the next time that we go, which is going to be on the 17th of this month, will be to Walmart, but today we do go to king supers. I actually went into each one of the facilities and they talked to the manager and said, here we are, we're bringing in people today, and so because they only have an hour in shop, one of the things that would really help us is if you could open a line just for them to get them through, because we don't want to have to leave anybody behind. And we sort of told them that they weren't ready to go, that they'd get left behind, but we weren't going to do that on the first day. And that worked out really good because they each one of the stores gave us a person and they gave us a line. So our people got through there really fast and we had prompted them and said, you've got to be out there five minutes before the bus comes and get through that line, get your stuff paid for, and whatnot. So that worked out really good. So I will have to say that to king supers they helped us out really good today. When we go to Walmart I think I'll ask the same question, because I think that worked out really great. Our first pick up this morning was at 8 o'clock and then we finally got back to our vehicles and about 2.30 this afternoon. And like I said everybody had an hour at the store and that worked out just right because when we went to pick them up they were ready to go. So that has worked out really smoothly. Okay, what have we learned from today? Of course there would be some things. It looks like we may need to adjust the schedule a little bit. Bea is going to work on that. We had a little bit of a break in time there where we didn't have a lot to do. And then we ended up being 15 minutes late to another one. So they'll work on that adjusting that schedule. We need to have a good understanding of how many walkers and how many wheelchairs because that wheelchair took a little bit of time to get it in plus they were confused how to fix it. But anyway, it got going. We need a way to differentiate the bags. The bags by the way were really great. When they came out with their groceries we had an individual bag for each one of them so that they put them in and it wouldn't mix with anybody else's and then we ended up with all these new bags. And so it ended up that when we got to the place to love them we had to actually kind of open the bags and figure out whose was what. So we will figure out a way and they're working on that Bea but I think it's probably going to be something simple like a ribbon around the thing that you know I get a red ribbon and yours is a red ribbon and that way we don't have to open them. There were actually a couple of them that we couldn't close because they were so full. But anyway, so that those are the things that right now I can think of that we learned today. And we'll always learn more as we go along. We got some excellent feedback. Many of the people said that you know now I don't have to have my son or my daughter or my friend take me. You know if my son or daughter takes me to the store they go through so fast I can't see anything. So they were excited about that. They got there, they could do what they want, get what they want. Everybody in the vehicle has got along great. We had four places actually that doubled up and they got a chance to visit with each other and yeah it worked out great. And then one lady who actually was the one who was in the wheelchair said I haven't been grocery shopping in such a long time this is just going to be great. And she had a good time and she came out with a bunch of rings. So it really was positive and everybody liked it and I will say this much I really had a good time today. So I wanted you guys to know how you're going to spend it. And our next time like I said is on the 17th we'll be going to Walmart. We'll be doing three trips in December. Two shopping and one that I keep calling a fun day. So we're all looking forward to that. Is there anyone else from the public? Seeing none we'll close public invited to be heard. We're on to open a business approval and adoption of the 2023 property and agencies budgets. So I'll introduce it. Kendra's going to go through the budgets. I'm not sure how long Arlene is going to stay. Okay. So I did want to save this while she's still here. Arlene's a good example of the work that the board's been dealing with us and where they're coming in and jumping in especially today when Lisa had two evictions and some other things and just the support and thank you to us as they're working through these issues. So I wanted to say thank you Arlene and do that in case you left before the executive director comments and really appreciate it. I'm going to say farewell. Thank you. So we're going to start off with the budget. I'm going to give you obviously this budget is more simple as you can see from the items that we're following the same format that we followed in the past themes in this budget are actually similar themes that we talked about for the city's budget labor cost inflation cruising in in terms of utilities and maintenance and that probably most of the revenue that we were looking at as you look at each one of these sections one of the things I would say is think of each one of the residential units as a separate fund in a way on the city side that we think about the water fight versus the general fight because we have to stay true in each one of those budgets that's why at the end of some of these you'll see a more narrow margins that we're dealing with and we will get into some of those specifics and we're just going to talk about our window increase. We haven't seen one for a while and so I'm going to turn it over to Kendra and then I'm going to jump in as she's moving through the slides. So we're going to start out with what is kind of you in the budget and what increases that are happening within the budget. So the first one is the rent increases. We did have to look at every single property and along with do some analysis on like we haven't done an increase forever like what is the tax credit went up and so also you show you some slides of that but for the heartstone in the lodge that is strictly we give it to HUD, they approve our budget and they give us what we increased. Usually they only give you 4%. The first one they sent back I asked for appeal which was the lodge. They had us at I think 605 and we got it up to 641 because there were some things that they were taking out of the budget that just wasn't going to work. They were trying to take insurance out but together we had to pay that. Some of the salaries and wages were going to have to pay that. So he did push it back through the 7.49 so that is going to be at right now it's at 593 it's going to be a 641 for the lodge but it doesn't affect any of that. Residents there because that increase is basically absorbed by HUD it's the subsidy side of the voucher because these individuals are already paying at their limits. So whatever HUD gives us is more than likely going to be subsidy unless their income increases or Social Security goes up and stuff like that. There's some fluctuation there. The heartstone increase we just got on Friday and it gave us 7.2%. He did see that the heartstone had biggest struggles and when we first came on we weren't able to pay bills. It was let's not pay along my housing authority. But we are a more stable process right now. So that's the way it goes to work. We send it to HUD. We ask for the increase. We get notices to the tenants. The tenants get all the information that we've submitted to HUD so they can see it too. Along with the synopsis of what we're increasing. The next one is... The lodge and heartstone was an interesting learning experience for us because you have to announce the rental increase. You have to tell them there's a rental increase. The first time we did this we weren't as adept at saying here's a rental increase but you're not going to absorb any of it because we were brand new to this and weren't sure the expenses and so we fine-tuned our communication. So we have to notify Molly and I and we'll talk a little bit about this in the executive director's report but we had a really big audit last week with HUD and we got to talk to them. It was also a chance for us to talk to them about what the budget issues were. What's driving it. They never really had snow removal. We went to parks and said how many events of snow do we normally have in a year. They said eight events. The difference was we shoveled at one inch, they shoveled at like two to three and so it caused some issues so we were able to meet with the auditor and he's the one that does the budget to kind of for next year prep and they said we're still catching up because they never asked for increases before we got involved in that process. You referred to more tenants, residents. Early in your comments you said your rates are going up. That was a message to tenants. So we have to know, we tell the tenants that the rent is going up. Your is HUD because HUD actually pays for it. So the tenants never have a rental agreement. I'm just trying to clarify who the communication is. So the first time it was your rent's going up, HUD's going to pay for it and we had to fine tune this to say rent's going up but HUD's paying for this. This will not impact you individually. You can just say we are requesting and I had 10% on one and I had 8% on another. I'm requesting an 8% increase. Here's why. You have access to all the information. This is your public comment period and you can reach out to our HUD rep. We give the information to contact him directly so if they have any comments or concerns they can reach out to them as well. So that's all in the case that we tape on the doors. Thank you. Thank you. You said unless social security grows up but social security is going up? So that's a different issue in terms of the rest of the properties and we'll go over that. That would affect these properties as well but what that means is when they go to certification if they didn't get the social security increase it would just be recertified in their income. Their income would show an increase and so their rent versus their subsidy is adjusted because of that. And that's within a subsidy based unit. So the next one is... The number, use the number 6.05 I think a couple ways with respect to the law. I just want to be clear you proposed a 10% increase and they came back with 6.05% and when we settled it was a 7.40. That's what they went back and gave us some more. Wasn't there a flipping back and forth between the dollar amount and the percentage increase? Yes. So if they lower the amount so they basically came back, they have $593 that works, that's dollars. So right now their rent is $593 we requested 6.04 to go up to that they came back with a letter that said we're going to give you 6.05 and they give you the analysis like here's why we're giving you it and then I pushed back and said we have to have this. That was the you went from dollars to percentages. From 6.05 to $5. So the next one is our tax credit properties. So ask them those in your apartments, ask them those in your neighborhood, fall river and spring creek and village place. We are in this budget doing a 4% rental increase. That will only affect those individuals that aren't at the tax credit rent right now. And so for example if somebody moved in today, we would move them in as the tax credit rent as today. So if come April of 2023 the tax credit rent only goes up 3% then they would only see a 3% increase because we can't go above that tax credit rent. So you're either going to get 4 or you could get less depending on your timing or how long you've been in these properties. And this is why. So what we did is we looked at the tax credit increases that have occurred from 2019 to 2022. We know we haven't had any rental increases during that time period. As you can see in 2018 but it went up 4.52 and then 1.63 and then in 2021 it jumped up to 6.69. And then in 2022 it went up to 15. So we kind of looked at what is the average of all of those 5 years to come up with an increase that would help them. So we're not just we need 17% because that's what we were looking at. Almost 17% and we had an increase every year. When you do that you kind of put yourself in a pickle because everything else is increasing but your rents aren't so it's really hard to pay for stuff. And you're not coming down to that income that gives you cash flow surplus to pay developer fees or to fill a capital improvement. You know they didn't set up a lot of these properties with any type of capital improvement reason. And they really probably should. We're going to have to replace the roof. On many of these units that ask the middle of the neighborhood but ask the middle of the neighborhood it doesn't have every end of the reserve at all. So what we'd like to try to do is get to that point where we can start building that reserve as well. To kind of give you an analysis I looked at one of our properties one of the properties that we've seen to have a struggle with. And this will cut. So the yellow right here is their actual subsidy amount. The gray is what they pay. The orange is what their potential rent. So it's basically the subsidy plus their rent but then the blue is tax credit. So for these ones that have HCD they have subsidy. We're either over or we could be under. And the reason being is it wasn't common practice for these properties to say I can go up to the market rent with these subsidies. They were keeping it stagnant. So they weren't increasing the subsidies and bringing money in. That's kind of the situation with this number two. Then you have a tax credit here where you see this is what they're paying. This is where the rent's at today. This is where the tax credit is. And this is just a subset of a property. You pull it all together it's all or out of whack. And then you can see when these people. So this person is from 2013. That's when they moved in. So from 2013 this is their job. So depending on when you moved in if you were in 2007 or 2013 you could have a really big jump or a really smaller. This one down at the bottom this is a vacant unit. So this vacant unit right now if somebody moves in you can get this rent. And that's the anticipation. But if somebody moves out and it's a vacant unit you can get that tax credit ran back up. But for the people that have been there in long evidence getting them up to that is going to take some time. And for some of these properties that are so and you know there were there was and I'm sure if you could speak to this is that they weren't being brought in at the rent that they should have been paying. And therefore that's also been a struggle as well. And these will also tell you what kind this is a one bedroom at 50% AMI. This is a two bedroom at 50%. So this kind of shows you what you could be getting and where we're at. So that's kind of what we also had to look at like what's a good increase. And that was a struggle but it seemed like 4% gave us some really good revenue to match up with the expenses that we're going to see and the increases across the board to help at least also have a capital improvement reserve. And as we've all talked so for many times I'm going to have to reserve this well. Because we're going to have to probably start building up that as well. So the sum of the actual you mean the amount so not added of some. Yeah so this yes that yellow bar is what HUD is paying us now. And the blue bar is what HUD would pay us if we could justify it. The blue bar is tax credit. So that's different. Tax credit is usually lower as you can see even on this one. Tax credit is usually lower than the actual market which is what you're allowed to go up to for a unit that has a subsidy voucher. So for that unit I'm just going to jump in. That unit that she's showing is 160%. It looks like we're only getting about 1200 with subsidy and we could actually be getting 1417. So what we had to go through to make that adjustment. So the actual grant of gray is what the tenant is paying and the subsidy is either from the tax credit or subsidy would be from a voucher from the voucher. So I mean we finished this last week right before I left trying to figure it out. So under a voucher program you charge the market grants. Yes. No. They haven't historically done that so you can charge the market grant then the voucher will pay the portion of that market grant and then they make up the difference which is small. Under a tax credit property you have certain tax credit limits that are below the market rent in most cases and then they pay a portion of it. If they don't have a voucher then they pay a portion of it. So that's what we call the tax credit rent. And there's so many iterations in this based on individuals because every individual brings in their own characteristics and what you're dealing with. Which is their ability to pay. Because it's all about their ability to pay. And so what happens is what Kendra's talking about is so what we realized when you look at the inflationary pressures and we think it was 2017 when they lasted the rent increase. But we're not sure so you go potentially 2018, 2019, 2020, 2021 that's kind of when we jumped in so you have all of those years where they haven't incrementally been raising the rents but every other expense has been going up and so then you see the compression within the budget that we're dealing with. And so there's no way that we could in a good conscience have gone in and said oh here's 17% it just wouldn't work. And so that's why they were looking at this knowing that we can adjust on a number of occasions when people move out when we have evictions, mortality, all of those issues and the top of it when you're replacing those units. And when Social Security builds up does it affect people's ability to pay? So different issues. So then as an individual every year you have to recertify for your units and so when you recertify as part of your unit you have to come in and go here's my income and based on your income profile what you physically pay changes in the recertification which really makes this even more complicated because think of recertification as when you signed your lease so if I signed my lease in November I'm not recertifying until November of 2023 which means you have to budget your rent that they're paying for 11 months before the new rents take into account on recertification. And so you're managing about 10 different variables trying to figure out the revenue stream in this because you have individual profiles you have individual dates of contract dates you have tax credit limits you have market rate you have the vouchers paying into this and so all of those are different for every individual person. And when we came on board they were not going up to the market rents on any of the vouchers at all and so that was something Tracy noticed and researched and that's how we started and we did make that adjustment we have to do that on a certification you can't just blast it and do it so growing pains growing pains so the next piece of it came one intervention in this long question there was at least one grade increase since 2008 I don't recall the year I think I was when Gillian had arrived but just for the record when a new tenant signs a lease whose decision is it is it totally formulaic or algorithmic what that rate is so how could it be that we have residents over time who are not paying what the algorithm would suggest they should how does that happen? so the issue was and this is why you wouldn't pay the money this is why in salary we talked about having the right property managers property managers and there was when we talked about audits and lack of internal controls and those processes there was a lot of freelancing going on when they were trying to be able to their contracts I assume I suspected that would be the answer so where I immediately go my thinking is wouldn't that be one of the number of metrics we would use to evaluate the performance of property managers and since we that's come up a couple of times and we've never seen metrics and we've never talked about evaluation criteria as part of a a criteria an metric for the evaluation of the performance of this one is actually easier to fix because Kendrick can lock it down well fixing it is one thing accountability and since it really rests with property that's what we're trying to say so now in what you can do in the yard system Kendrick can lock those fields down to where when the property manager sign a contract they can't adjust it so there won't be their decision no not going forward still just metrics yeah we found that it was a lockdown recently it had a lot of damage one more comment I mean do you want him well is that calling on me yes why would anyone want to freelance why wouldn't they just put it in because they can fill that unit faster so say you have a two bedroom that typically runs for 1600 and you're going through you're calling your waitlist and nobody wants to pay that nobody wants to pay that then we're like well I'll give it to you for a thousand then that person is going to take it we're losing $600 per month on that unit and how much are we losing while it's a lockdown so that's a different analysis that you have to go through so to talk about the metrics and what you're looking at is that's not necessarily a decision that is not a decision that needs to be made at that level that needs to come to Lisa, Kendra and then ultimately me because it's one thing if the property is making it for two weeks and then you cut them a deal it's another thing if it's making for a longer period of time so there are metrics in there but they're more complicated so things are going to build into the system well I think to the snapshot we can start doing these snapshots which would let you know progress and time where this unit was at this point where it was at this point so I think we're building metrics we're not fully there yet for the suites, the suites are a little different they have project based vouchers in all of their units half of them are LHAs we have to go to LHA because LHA is the overseer of our public funding for MIHP and they give us the approval to increase the vouchers so there's a little difference so we did get approval the Efficiency Apartments is like at 18.68% currently they are running at 1036 but they have they've approved us to go to 1274 because it's the same type of property as the 202 properties because they're all subsidy based every single unit unless your income goes up your rent is not going to change the increase is going to be absorbed by the subsidy agency the one bedroom is about 17.65 they're letting us increase it to 1,428 so this is just kind of a key that they were never going to TOH they've been asking for the increases every year as the market rents changed and then the two bedroom they really didn't give us approval here I don't know why MIHP don't have two bedrooms I just kind of did it average in between so we're moving that one from 14.20 to 16.78 we do have to notify the tenants of these increases that are going to happen in the next couple of weeks sorry so those are kind of what's in the budget for rent increases the other items is LHA has added a lease component to our budget we are going to be contributing a percentage of pay to the city of Vermont's police position to help assist with law enforcement that's already really at our properties quite a bit and we are helping yeah, I'm going to take this so in looking at many of the issues that we all are dealing with whether it's evictions behaviors all of those issues Sarah already has been spending a fair amount of time so what we're looking at is really going in and paying a percentage of the position so we can and Zach and I have talked about this so we can get dedicated support to assist us and specifically there's a lot of times when evictions are going on and things in the properties that Lisa needs help on that my candidate or that Molly candidate in this position will be doing that and really crime-free multi-family housing but taking some of that load of the things that we jump in to help Lisa we're really taking that off of us as we're trying to move up into more of the development work and things like that so we try to look at dealing in full position but financially just couldn't do it this year so we thought that 50% was a good starting point in this Zach and I have to work through some issues on that but it's really to assist a lot of things that normally we go out to help Lisa do I have a question so how does that lead the police department? I know we already understaffed the police department so if we already can we're paying for two officers 50% of their pay so that means 50% of their time will be with the LHA properties and I'm not saying you all need it because I totally get it but then I'm also looking at the fact that we are spending extra money for the police department so that we can get police officers and also retain those police officers as well so where does that lead the department with those officers? This essentially makes them whole versus kind of what we've been doing right now so it's a dollar for a dollar and so what we wanted to do was to do 50% and then we could get that position for us and then working with us and then they hire another position at the entry level and the lower level this is 50% the delta between the entry level police officer and what we're paying is more narrow and then we're going to work on trying to fill that out so that we can add a body to get eventually a body back in so if they don't lose anything out of this to that point because we didn't want to negatively impact them and honestly you know I talked to Zach and Sarah about this and no matter you know I am specifically talking about bringing Sarah in to work with us because she's been in these meetings she's in every meeting with us on every Friday she's doing a lot of this work which we can get a little bit more out of it to be honest it makes my life a little bit easier but it also I've always been over time that we're paying now for some of the work that she's having to do beyond the normal hours that she has in public safety department but no, we're trying to hit that 100% mark on this one well I think technically with her position the 50% actually gives you one of the lower level police officers to help them to help them to help them the margins are more narrow so the increases we're having increases across the board the same thing with salary and benefits we were seeing anywhere from 6 to 12% some of them were lower but we kind of kept we have a situation with the housing authority where only maybe 6 or 7 housing authorities submit to the employers council so you could have one one year that has these increases and you have another one that has lower pay and you don't know what areas or what regions they're in they just say 7 submitted so we go with the same process a minimum of 6 and a maximum of 12 because we did have some that were over 12 but we wanted to make sure and to be also included in the cities we were seeing the same data integrity issues from it's interesting Gina was at a meeting with multiple cities and every city was saying the same thing so we're all trying to go out and find the mercers of the world so when we looked at this there were some positions that made absolutely no sense to us that the data was saying they were ahead of working because we knew from a practical standpoint we weren't so we took the same compensation that we did with the city from the same based exactly the same reasoning on this and then they are included in the Mercer study as well so that we could make sure that we have an accurate data set on this but in terms of the data this is there were multiple cities fussing about the same data issues that we talked about in the cities to talk about utilities are looking at an increase of about 5% insurance is increasing what we noticed and what we actually had to overdo is what I noticed last year was that our insurance amounts, the amounts that we were assuring the building for we had a total loss situation we would not be able to go based on the amount that they were insuring for those businesses so they kind of did an analysis and said based on this based on your square footage and we probably half and half there were probably half the properties that were close there were half that weren't there was one that was really bad which was Village Place and Village Place has the most negative equity so we're trying to build that up and increase it over time so that we can get to a point where and we should be increasing it I talked to the rest of the city we should be increasing it because things are going to change construction market has changed we're going to have increases due to inflation across the board and that's hitting every, we're seeing 4 to 5% for most and then we're trying to if we do have money we're going to have some net reserves added as well as capital reserves and my bankers are going to be really happy with me having to set up a lot of accounts and have more signatures so we'll start off with Ask the Mows campus that's the Ask the Mows senior apartments and Ask the Mows neighborhood the senior apartments is one of the properties that is struggling revenue wise and that's because of the recent occasion you know you already had people in at a certain rent amount and it was really hard based on the performance to bring them in at the new rent amount so there's a struggle there that we're not actually where we need to be so that one is not having a net reserve or a capital reserve I know because we're not going to have much after replacement reserve requirements Ask the Mows neighborhoods that can actually be good and I think might be better once I know we had we had some issues with Ask the Mows neighborhood where people were in units that had smaller voucher sites and we were in a four bedroom but I had a voucher of one two bedroom and a four bedroom so I know they've been moving people around just so that we can get the amount that if you have a two bedroom voucher that's as far as you don't get it but you're in a four bedroom unit so we're actually losing money on that well to the point earlier in terms of how do you evaluate that you're putting someone besides the vouchers for person moving in to get a two bedroom voucher and you're putting them in a four bedroom so that's something that's an evaluation So how are you making that transition with the tenant Are they accepting that? Are they human? But I think what happens is when we have a unit that opens up that is a two bedroom we have to say otherwise you're going to have to pay that additional amount Tracy's been really good with the housing team as she's seen it they're doing the re-certification she's letting Ruby and the HCV team is letting them know hey you're over you're over house basically or you're under house you have two people in a four bedroom that doesn't meet the criteria when one comes available so they're getting plenty of notice that way and then as soon as we get notice from a tenant we're letting them know that they received this notice we expect the unit to be ready about this time so that they can start planning or if they don't want to move to another unit on our site they can keep their voucher and move to somewhere else as well So remember that starts touching HUD when you have a two bedroom voucher and they're in a four bedroom and then that comes back if you have them in the wrong unit size based on the voucher piece and some of their homework Does anyone have a question There are other things I wanted to talk about so you can see in the bottom we're looking at the net income this is where the rental rates come in this is where so when we look at this what you will see in Aspen Meadow apartments we weren't able to increase tenant services which is really the work that we do to create an activity budget and things like that because their margins were so narrow and you can see this in some of the others we know from the survey work that the board did in terms of wanting more things in the units you can see that we did push up in Aspen Meadow's neighborhood increased it by $1500 watching the net income trying to hit the reserves so you can see the reserve replacement the reserve replacement is required and that's required from the tax credit component but you can see on the neighborhood that we've added $10,000 to start building a net reserve and $15,000 to start building a capital replacement reserve you don't see that on the other side because they didn't have the financial capability to do it what's really important is we also have to watch the net income because the net income can hit you in a couple of ways so you want to generate enough to pay the that's where it can be the developer fees and the tax credit component so you want to have cash flow surplus at the end of the year or even during the year so that you can actually pay the developer fees back to the LHJ the Swedes Aspen Meadow's senior apartments and Paul River all have developer fees that are due to either LHJ or LHTC the Swedes when we came on and they have been able to pay we're down to $600,000 and $650,000 so but they could have been paying it if they would have been asking for those subsidies you know so it's if we're not paying those developer fees then we're not cushioning our general fund to be able to pay for the administration because the management fees alone at these properties do not suffice the administration that we are currently paying for today and then on the tax credit side it's sort of paying me now paying for later and the pay me later comes in and this is something we're dealing with at the village place is because historically they never made that ramp up they were never paying that much into the equity investor correct so developer fees owed including to the equity investor so when you go into re-syndication if you haven't paid that money back then what happens is you have to pay that money at re-syndication which then takes away from what you can actually put in to react the property so next is fall revenue to increase they are looking good percent increase and realizing that we do not budget for the htb vouchers because those are portable so if there are htb vouchers in these properties we shouldn't have more income at the end of the year because we're not counting for that because if they decide to leave we don't have that budget so we don't want to budget for that and that's actually the cushion from a cash flow perspective when you look at the financials for most of these properties we're doing well but I think for that htb fees because you don't know how long it will be there so that ends up bolstering the actual cash flow into each one of these properties, financials and increased revenue gives us increased management fees but the management fees are based on commercial fees down on campus is also looking good both village banks and private departments so I don't see any problems there this is basically saying that the variance between 2022 and 2023 we have 11,000 in revenue but we're going to have 22,000 in retrospect we're still going to be okay income wise at the end of the year but yes based on the analysis from year to year we have more expenses than we have well if you look at it we have 54,000 we're down to 41 but we're creating a 5,000 net reserve and a 5,000 capital improvement reserve so you take the 10 off in the 54 so now you're down to 44 and that's 10,000 in an area of 10 different yeah part of 2 is we did refinance what is the typical expenditure when you have to do a net restoration for one year $1,000 to $1,000 $1,770,000 so it just so the out of pocket expense via the insurance yeah it could be so if it's a cleaning we're probably not going to make an insurance claim because that you don't want to get your experience on that so if it's under $5,000 if it's over the net reserve we'll start being able to do it out of a net reserve that we're trying because these are ongoing dollars that we're using so we're going to start incrementally stepping into it but yeah it could be if it's cleaning it could be $1,000 if it's the significant one that we talked to you all about the next time that could probably be $50,000 out of pocket in addition to the insurance covering the remaining component of it so that's probably going to be someone that they would have a $200,000 in remediation basically there's no remediation yeah because we have to test the we have to test the actually in that one it was so high I think they were making big tests in the scuds we got that back no they just tested the stuff yesterday and there is some health and safety remediation but they did it in each one of these in the maintenance and operations this is just extra money from the putting aside we have enough cash flows for us to do and that's watching the projects on a quarterly basis to make sure that we don't have to cover campus these are two of the companies as you can see we can't budget anything for that because they pretty much bring us down to a zero balance they don't give us more than that um I don't know if I can say that much and then you have the suites and the suites is where those are really huge increases with that subsidy that's going to be I mean it was almost $200 I mean it so I mean that's going to be a really big I think we can get that in and that that'll pay so and that's important because that comes back into LHTC and the LHA general fund budget which is as we're looking at development and other things reduces the the amount of fund balance that we have to historically use on an annual basis and so they get we're shifting into more of a what I call a traditional cash flow model where you're not relying on fund balance but you're bringing the revenue in on an annual basis to do it so how how was the overall LHA in the deficit spend on this scale well I mean that's why they couldn't retain staff because they didn't have enough to they weren't even nearly close to market for all of their staffing positions so I mean most of them were not paying the staff or they were paying underpaying the staffs because they couldn't underpay their fund they weren't fully they weren't fully staffed so I mean so if you look at what we're doing today versus the system that was set up so we have full-time property managers in every location we now have how many assistants in the managers one and one in the workers so yeah so we have two funded assistant managers to do rotational coverage on those units and so they were doubling up on some of them and so you would have one manager managing four properties so you didn't have one per property you didn't have and so on the other side of it because of the audit issues when we had the lack of internal controls they had a CFO an accounting tech and that was it and that's why they weren't doing their stuff so now we have an accounting supervisor and accountants and an accounting position to deal with those issues so we've actually gone from in this budget from deficit spending and not having the staff to bringing everything into the black and adding the staff and that's part of the contract with the city to where even though they're paying the city now 130,000 130,000 it's the work that we're coming in and solidified there that is allowing for the market rate salaries and the appropriate staffing levels to get the work done the reality is and I talked to some of you earlier with the assistant where we did this is a ton of work but there's no money to do it and we've got to build that screen in so that we can do it and it's just this incremental approach on an annual basis part of the simple answer to all that is only jay was totally dependent on development and as development peeled off every year it was a deficit budget subsidized by development and all of the rent adjustments that we've heard about weren't being made so you just keep cutting back, cutting back, cutting back on staffing and compensation because you had less and less in reserve when LHA approached the city the end was clear we were about to go down from where we all can't remember water was on that board and when this happened we talked it was a classic death spiral I mean to give you a sense of and it wasn't at the top of the death spiral I think it was probably in the bottom order of the death spiral in terms of where this was heading and it's just and so now you got to connecting the budget to the development side when we talk about that update you're seeing why we're pressing so hard on development because we've got to get in I mean we're drawing on the general functions we're drawing down on fund balance but we know we have development fees coming in early in 23 to replenish but we've got to get that cycle moving so that we're bringing it in and that's why we're so adamant in that that we take over the management component so we can get the management fees that we've been doing general fund to then have that annual cash flow and it's okay I'm willing to do our benefit I'm willing to explode yeah and the increase in rent increases the management fees that come in so if you weren't doing any type of rental increase then our management fee was never increasing yet all of our costs to keep staff on was so it's a trickle effect so the next is our housing toys factory program right now we're just kind of budgeting what they've actually analyzed on our two year tool it could be different once it comes once they finalize it at the end of probably January, February, or January but right now we're still looking okay I think we're looking at we budgeted for about 425 vouchers in month we're at 409 but I think we have like almost 20 in the process I mean it's taking people a really long time to find a place that takes a voucher so and they say on that waiting list they get exceptions they come for you know can I have an extension for another month to find a place it's just the rent here is just so high it just can't accommodate what our voucher will supply so and a lot of people are trying to a lot of people like from outside will try to get a voucher in another city just so they can port out somewhere else but they have to stay here for a year that's part of our admin plan so so if the voucher is supposed to pay up to market less what the person's ability to pay is which is not tied to the regional rent then why don't the vouchers because landlords don't charge market rent so you have a landlord that charges 1800 that's 1400 that's what we can provide so then you have to tell that we can provide you a 1400 dollar voucher but you have to come up with that other 400 dollars that your landlord is wanting you to pay that's the problem and we'll get to that piece of it it's on the agenda HUD has came down with like you can go up to such and such it doesn't have to be 100% I think they said you could go up to 120 only to 105 the max is 100 so you can go up to 110 and we are going up to 105 that's part of our approval at least be able to do that maybe that can help us by some people but probably not all so just for the sake of the explanation when you're talking about market rent and that concept you're talking about some sort of formula that states what market rent is should be that's the definition of market rent versus actual market rent and they try when you pull up market rent you pick your state your area and this is what it tells you that area is but what's the number of vouchers you mentioned we have about 409 I think that's my last that we actually have we're paying out right now and then we have 11 that are poor bins we don't pay back those that aren't out of our budget but there's like I think 20 that are still searching trying to find a place and we have resources that they can find a place to take the voucher then we give them landlords or agencies that best work and there's some agencies that don't see they want to work with vouchers so we try not there's too much in that direction there's about you to issue if they find a spot so we'll talk a little bit about this and the executive director update over the last 8 to 4 weeks it's been happening incrementally but it hit us really hard in the last month and a half in terms of the number of people that are now approaching the housing authority in some sort of partnership in one of those mall we met with and they're specifically saying we have openings, we have vouchers and so it's now bringing those folks together but we'll talk a little bit about it because it's talked about at the last time we're going to give you all some updates in our conversations so the next is our single room office and this is also a voucher program but it's specifically for the in-between the in-between has a single it was a rehab voucher that they went for there's a decreasing and the reason it's decreasing is they only had 8 units and they're not they only need like $500 which we budget like almost $800 so what you don't use takes back so it's better to try to budget closer to the rent than it is so that's how you see a decrease happening as well for the single room office then we have the Longmont Housing Authority owned properties 615 Main and Briarwood office Briarwood office is pretty much a really tight with only $74 left in that income we need to I know there's discussions about actually both these properties about selling both of these properties so I don't know you'll get an executive report I want to know what I'm talking about here so 615 Main is the office building that's adjacent to Village Place apartments and if you all remember it was incredibly unclear as to the status of that property as it related to Village Place and the tax credits it was on the LHA I'm showing under the ownership of LHA but it was intermingled with the Village Place tax credits and that's an LHTC property which in that in the dissolving of LHTC when we do the re-syndication the Village Place units were going to come into the LHA but this was already showing on the LHA and what was his name the board member the LHTC Stephen Morgan who does title work was even struggling trying to figure out what happened so we finally figured all of that out and it is not part of the re-syndication issue on Village Place so this is the property that's centered for people with disabilities leases from us we are they have an expressive interest in purchasing that property we now think it's clear enough when we are going to if the board is okay with this we would like to entertain conversations in terms of selling that property to engaging in conversations with centered for people with disabilities just because of the operational costs associated with it it would be a budgetary positive budgetary impact into the broader LHA what would we be using if we sold it would we not much 20 mean if you look at it we are netting $4,000 $5,000 a new week out of rent and expenses on that one so I think selling it would be insurance expense maintenance and operations and all of that I think we can't wait we'll talk to them and see if they're interested we also want to make sure that they're taken care of and that this is a little ahead of the facility but our recommendation would be if we would get selling that property are there any questions on that one I just know there's a great interest in purchasing it I don't know yet I don't know yet and we weren't sure we were really concerned that if we were intertwined in with the recent occasion we were going to be tied up in that one private office is slightly different that's obviously the space that we're leasing to the veterans community project they've made some really good improvements to that property we partnered with them I think is more broadly at this conversations but honestly I think we're we need to get some projects built so that we can gain units before we look at that and so we'll be talking to them about expenses and things like that in the near future so we have the LHA general fund so LHA has about almost $800,000 in expenditures that are incurred and we always usually have to take the fund balance because we don't have that revenue coming in right now the revenue coming in by 21164 is literally the management fees and LHTC's corporate management fee so which is $150,000 so when LHTC dissolves we'll only have the management fees so we're going to be losing some revenue on their side we would also be transferring whatever developer fees their investments that they have to LHA as well but right now we have to use $400,000 of our fund balance our fund balance is about $700,000 so $400,000 and down to $300,000 but as long as we're getting some revenues from the suites in 2024 we'll be getting some developer fees from Christmas too so that will probably be in the budget next year for 2024 but we definitely have to not only start building to get developer fees in but finding and I think youth comment is getting an additional revenue source that's just always coming in notice there's an adding income in this of $123,000 so we're not planning on spending that $123,000 but when you have a lot of times the method of mediation and things like that and you have your deductible you have to get back a piece of it we just wanted to cushion in case we need a budget with lawyer costs and all of that we want to make sure that we have a cushion if we need to add any expenditures that we have that cushion and so on the attorney side you all approved an additional as the city council you all approved an additional housing and making that work within the city's budget we're pushing $30,000 from the legal fees that we have in this budget to help the attorney and we're hoping that with the work we do there it reduces the amount of attorney expenses that we're paying because anything that will only contract out for evictions but not all of the other work that we're doing which is incredibly expensive so we should in the legal fees see some changes there and then we have LHTC LHTC is the same situation we do have to reduce fund balance about $225,000 we realize 150 of that is LHTC for the corporate management so they also but that's I mean we have to use fund balance there as well now they have investments you know they were actually putting money back as they got developer fees so they have about 1.3 investments but they're in CDs so we can't pull those out until they mature but we definitely want to be able to use that and be able to forecast what is needed, what kind of developer revenue we need what kind of stable revenue we can get so that we can kind of stabilize and then maybe get somebody to take some stuff off your plane but I don't I mean I don't know what that is as of today with the stable revenue unless it's more properties with more management fees that's it just that quick question we don't see legal fees broken out in a separate line as an expense where do we account for that it is it's in the admin expense if you looked at the detail in this budget there's about $70,000 I assume that's where it would be I think in terms of moving forward with budgeting and accounting since we are now kind of part of the arrangements of city we're allocating $30,000 of this budget to support legal support and pay for legal support in my opinion we gotta account for that separately than just whatever else is in that line so we talked about that technically we're teasing each other today a little bit to pull that out so we know what we have in terms of outside council prohibitions similar to what we do with the consultants but are you wanting to see like a separate line item here to say like legal services if we budgeted is that distributed or is it $30,000 budgeted in each of the administrative expenses across all the properties then I think it ought to be pulled out into a line in the general fund I'm not an accountant somewhere but there is no way how would you answer a question for me or how could I answer my own question looking at a financial report on what our legal expenses were for 2023 we have a separate line item for legal expenses this is a role so under admin expense there's a whole list it's in the big one it's in that big one right there that's really kind of small right now I usually have it on my 17th can you go exit out of it and bring that up it is well it's not administrative if you were going if you were going the second page of the detailed in terms of legal expenses you see top lines total administrative services legal expenses is below that you see background checks then you see general legal expenses and then you see the total legal expenses do you live on like the other so I see do I add up the 4100 4800 I add that up across to get to the 30,000 well there's two so there's one that's just the properties and I figured that that would probably be that could be city related that could be not city related so we could do the same thing as you can see down here so here we do the same thing with consultants we say consultants accounting consultants IT but what I can do is say you know legal which is our normal legal which would be the addiction piece and then the city's legal as well but you would have to add both it just makes the document like this big so I had to separate it more narrow quiet prior to this relationship legal fees were out of control they won't be I know with this relationship in accounting for legal expenses we finally got fired by our attorney that the authority did for a variety of reasons I'm not certain all of them and I'm not certain that payment was one of them but it was an issue and the way this is spread out especially with the relationship just from my money would be good to account for a legal expenses somewhere independently of how it's broken out and rolled up yeah we'll do that because I think it's actually good information to have so we'll break it down into what we do at the city so we'll have 30,000 set up in terms of the LAJ contribution and then the remaining 40,000 we will set up as special counsel and just do it that way so we can track it that's how we do it but and we hope we're not having as many evictions now we have the two vacant land properties that are in the process of in various stages of getting development done the the sweet's land since that land isn't a problem no revenue coming in no expenses over land that's a problem because we don't have revenue coming in so LHTC has to pay from their fund balance to pay for if there's any landscaping that has to be done which is usually just in the summer I'm going to have to have them all I was just going by so that's the maintenance and then in the general plan they pay over on the age of 80s and then the financing mortgage which is the $800,000 that was loaned to for over land from the city so we pay interest on that and that's the system that we got which is just interest so why do we have an HOA phase with there is no one loaned the entire hover crossing development is an HOA so whenever they did that deal so when you look at properties from the car wash over to Starbucks down to we don't pay them for the lodging so to the lodging and it's part of that development when they transferred the property they had a commercial HOA and so so the sooner we get something built so when we're going to cover both the nodes and the development update because we're making a lot of progress so with this said this is the budget we propose for 2023 we do send this off to all the investors for all the properties sometimes they come back for changes sometimes they don't sometimes they don't look at it at all but some of them are very intelligent and we can be asking questions which are going to see increases across the board so there could be some variance changes that they request but I can report those out at the next season in test what happens but for the most part it would just be I think like for example the Swedish investor because we budgeted for damages every year he wanted to do the budget for damages and I'm like well you don't probably ever get paid for those we show it as revenue but it just never ever puts in so yeah this is like for more tenants are supposed to pay you for damages well this would be like a method yeah you can wait for that for a long time yeah so those are the role things they might come back as but any questions there's a lot of information but I think it's amazing what you've done and where we're going so we need to approve this 2023 probably in agency budgets and we can do this all in one sweep can't wait to get it so I think that's about it move approval second the move recommendation will be second by commission to approve and adopt the 2023 property in agency budgets in the administration I do, thanks so I appreciate the work as well you can roll it up and how you put it together is very explicitly helpful on sitting here as we're going through this I've got the 2022 2026 budget budget budget budget budget budget budget budget budget budget budget budget budget budget budget budget budget budget budget budget budget budget budget budget budget budget budget budget budget budget budget budget budget budget budget budget budget budget budget budget budget budget budget budget budget budget budget budget budget 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budget budget budget budget budget budget budget budget budget budget budget budget budget budget budget budget budget budget budget budget budget budget budget budget budget budget budget budget budget presented. With all the work you've done, you've done a great job. However, to not have a specific connection between a set of goals and objectives and how a budget advances us towards achieving those, seems to me to be a waste of the time and effort that went into these. And we finally, in my opinion, have a pretty good set of goals and objectives. We haven't looked at, I don't know, in Shakita's orientation how this was presented. I hope, because there were five of us here who were part of adopting these, I hope, when you were oriented, you know, this was part of the package. And I've raised this question before. You know what? We haven't looked at these since we adopted them. And it would be easy, right, if we were affirming this budget, having gone through a review. The fact that we haven't gone through a review, and I'm trying to cobble them together, is alone a disappointing that I've got to do it that way. So I'm going to vote for the budget. But I don't think anybody, any member of this board, ought to have to sit here and do it that way a year from now, as we're adopting the budget. These ought to be in front of us often enough. We know where we are, what the plan of work for, what our, I don't know what our targets are for 2023, right, that are tied specifically to these goals and objectives. And there should be some. So in terms of performance targets, accountability, measuring progress, reasons to celebrate, as the, as the chairman woman said, there's lots of good work that's been done. I'm not, I want to contract on that. I'm just saying, I think it's necessary, but it's not sufficient as a corporate board to not have this budget and a performance plan for 2020 and targets going forward, so we can measure progress a year from now. And what that budget will look like based on that progress. Does that make sense? So I'm going to vote for the budget. I just got to say, I think we're missing a huge opportunity. I think we all share responsibility for this. And I think the staff has to own this, just like we should own. End of comment. Good comment. Um, so starting now with this budget, would it be possible to come back and tell us how it tries in going forward? I mean, I, I think, I think there was another problem. I think. I mean, I, I did for exceptional increases, you know, exceptional pay and stuff like that. So I mean, there, there's stuff that you, that's in the background that you just, that you just, well, there's so much of work that you've done that I can see. I mean, it's like the development target, right? What you presented a couple of meetings ago, right, comports with exactly what we laid out. It would be good to have tied that presentation to that goal. But there are some others here that are not quite as obvious in terms of what our targets, what we try and what we try to accomplish. Rental rates and, you know, a balance budget and all that in quality of resident life. I know there's a lot of that community's gone on, but it's out there and it's not tight here specific. And we don't have performance targets. Measurement is impossible with that approach. And accountability is not existing, right? At least in terms of the things that we said are important and how we're going to measure our progress. And honestly, I think it's, it is the one surefire way of knowing when to celebrate. Now you're probably giving each other high fives every day, because of the good work that's going on. But one way, one way to be sure is like, we know we got it, you know, here. So let's celebrate for five minutes and then get back to work. But that's part of the value of this. So if I may, we adopted those goals by the way, they were in progress for several months. And then we adopted them early March of this year. So I think at our next meeting, which is January 31, that's almost a year. And then going forward, we can tie it to the budget or maybe January 31st would be good. We can tie it to the budget and generally do an update on on what we've accomplished in 2022 and what is on part of However, I do have to say that in each property, I saw goals and targets for every single property that we addressed tonight. So Yeah, I think we need more. Yeah, I do think we do have targets and goals. And I saw that any property that you presented it with with the reserves with the different accounts for net and where you wanted to be with each property. So I do see targets and goals here. I think I think I think I think part of it is, you know, the one that was probably the most prominent is tenant services. And you can see where we hit some of them, but we couldn't hit others just because of the financial constraints. Yeah. But yeah, we'll come back and give that to you. Okay. Are there any other comments? Let's go on. Let's go down to this budget. Also, I'll suppose that passes here. So now we have some resolutions that we need to go through. Are you going to present on these? Yeah, roughly. So go ahead. So the first one you have in your packet for item five B, this is the approval of the fair market. I'm sorry, the revising the payment standard schedule to match fair market rents for the HCB progress. We've already given in kind of the intro on why that is needed. Really, it's it's trying to make our vouchers more usable in our area. And we coordinated with Boulder County Housing Authority and Boulder Housing Partners. And everybody is agreed to go up to 105% this year with your approval 105% of the market. So in 2022, we were operating that 100% of their market rent. So it'll be a 5% increase to try and help those voucher holders that are out there looking. Okay, so this is a LHA 2022 15 resolution. Let's go down. Okay, thank you. I was going to say we're going to vote on the 20th and then we'll present it. So Commissioner Waters made the motion to approve. And did you? Commissioner Yardlow seconded. Are there any discussion on this? Commissioner You said he chose to go to 105%. Let's look down side of going to 110%. Presumably they would be able to find more places at 110%. Is that where we're making the difference? We have to look at our budget. So we had to take the number of vouchers and the amount of money funds we get and can we sustain 105% and that's what each agency was able to sustain. So that's why we can't go up to 110. Because HUD wants to give us more money than we all probably could come back to the table and take the less than 110. But it's all three agencies. We try to keep it the same because we fund people in Boulder County, they fund people in Boulder County. So what avenues do we have to try to persuade the national agencies that are funding us that their definition of market rate is inconsistent with the rents that are charged here? That there's a market. Do we try? Do we tug on sleeves? I mean, there must be. It's HUD. It's HUD. So similar. They set the incomes. We do not have flexibility there. In most instances, there's not a lot of constraints. You don't know what their methodology is for making these. I mean, they must study something. They'll say that, you know, they look at the income data from that income because they do it by counties. Correct? And so they'll say that they review the income data that they have coming in from various sources. They'll look at the rental data coming in from various sources. And here's your number. The challenge with it is it's nationwide. And so they use the same process. So yeah, they're highly unlikely to change it. I think to answer your question, how do we get more money? I think it goes into all the audits and everything that we've been going through and showing better performance, which then lets us get more funding for vouchers. But if our people that we award vouchers to can't find a place to live, our performance is going to improve. So this is an incremental step in that. And also creating our partnerships to try and get landlords more willing to rent to voucher holders. You hit it at all angles to try and improve the performance. I'd also say that just the nature of HUD, just like the incomes that they put out, it's never going to be totally true to today. Because they are using data the best that they can up to a certain point. But then that fair market rent is set for a year. And what have we seen in our housing market in the last three months that change people that are out there looking on right now are not necessarily operating under the same data. Well, the number lags. And so you think we're right now, we're at an interesting point. So historically, in the housing market, when you see again, it's what are normal interest rates and what are high interest rates. You know, I think my first house that I bought was like 9 or 10 percent, which is lower than some folks and what they bought. So we've gone from a 2%, 3% interest environment to now a 6% interest environment. And when you see some interesting articles on this, and so what happens is when you see that interest rise on home loans, you tend to see more people moving into rental units because they can't be qualified for the home loans, which then is rapidly increasing with the cost of rental units because there's actually more competition for it. And the high number of lags. So then that is part of the problem. Okay, is there any more discussion? So you know what's going on LHA 20, 22, 30, all those computer. I have all those posts. So that passes you. It's going to LHA 20, 22, 16, people with acceptance of parties. So I'm going to present the next three resolutions together. Is it all very similar? Um, 2020 to 15, 16, and 17. So this is the set of three grants that it is coming from the city's CBBG program to the LHA for the estimated neighborhood playground replacement, the overcrossing properties, parking lot and accessibility improvements project, and the security cameras project at various LHA properties. The ones that don't already have them to fill out the to make sure every property has it. So city council back in June approved the CBBG action plan which these were listed and described there. So you'd be considered considering tonight accepting that grant fund and allowing us to execute the work. City council is going to consider that on November 15th for the same. So that's it. So we'll pass these in a slate, we might as well. So can I have a motion to pass LHA 20, 22, 16, LHA 20, 22, 17, and LHA 20, 22, 18? Thank you for correcting those numbers. I was looking at my own voucher, it was in front of me, it was number 15, so I'm excited about that. Okay, so as we look like mission one, so like mission two to all the fairing, is there any discussion on these? Just to clarify, so we're going to approve tonight. LHA is going to approve receiving the CBB grants and we're going to approve awarding them. Right. Ideally we'd have it swapped, but I don't have a schedule. Okay, all those in favor? I am. I am. All those opposed? That passes to me in a slate. Thank you for calling that word. Now interim executive director to report. So a few things, and then we'll go into those specific gardens that we put on the schedule to report to you all. I think one of the things that we've been working with recently is there is definitely more interest in people partnering with the housing authority today than what we've seen before. And you know we kind of talked about this and Commissioner Waters made the comment it's like shark tank. And we're really getting that point where it is like shark tank in terms of so in the last two weeks we've had somebody talk to us about there you all have some policies in terms of some tax exemptions that properties can get. So one group was looking for it. What does that mean? I think that would result in possibly a hundred and thirty thousand dollars in that tax exemption that would come in from the housing authority. That's a little more straightforward. We've had a developer approach us that has a property fairly far into the development process that is starting to look at latex. And then so when you when you look at latex that's really where we can step in from the housing authority perspective. We talked about all the budget issues and what we need in the general fund. And so you know in the meeting that we had last week you know we said here's our interest we're going to want management of the facility and and or development fees depending on how the deal is structured. And so that is part of building the ongoing revenue stream into the LAJ general fund to manage that gap. Same conversation was on a different part of the property in terms of how do you see this working? How does it work with latex? How does it work you know just generally in terms of rental housing? So we know one is right and so they're going to go back and do some more work and really look at it. We're pretty focused on any to have a really good latex with them because we don't want to go into a situation like this with someone who doesn't understand it because it is incredibly complicated. So those are two opportunities so those are three opportunities that has presented themselves in terms of the over property where we talked about what we were paying. We just finished going through an interview process where we put out an RP for the development of that. We talked about modular building. We talked about what we can look at. We had some amazing groups submit in that process which to be frank I don't know if we would have seen that quality of applicants a year ago. We had nine. Nine submittals. I'm going to interview four. Four. Ever. Five. I was they were all great. So we're working through that. We have to finish going through the selection process. We've learned some interesting things in that. We went to visit Ibiwale and that we were very intentional about that modular construction. What we learned is that's probably a little farther ahead than the tax credit world because of the capital outlay and in fact you have to dub so much money up front in that that the investment groups in that tax credit world are exploring it but we're watching it just because of the capital outlay on that. We learned about some other modular building techniques that can accomplish something very similar. So there's going to be a lot of options that we're going to have in our disposal and so hopefully within a week we will finish that process, announce it and then we're very quickly going to move into the work of meeting with that group and start the process of what we want in that location. What's really interesting and this is how it kind of touches the other side of the organization and I think this is really where the utility of this partnership comes into play is it went to well what if we looked at podium construction and podium construction is what you saw 150 main where you have an elevated lower level and then you have the units above it that gives you the ability to get your density that you need on the structure and then on the basis you can condo the area underneath and that opens up the doors being like job care that opens up the doors to things like a library annex, a commercial space that helps build the bridge and financial gap so you know we'll start that work once we announce it and we we began to work with them on it and so we were I was really pleased I don't know about Molly but it was I mean we were blown away by the folks that stepped into this and the work that they've done so in probably a couple of weeks we're going to start on the beginning of that development of that property. So what is so cool about it is well first of all it's it started morphing we had this idea but we wanted to get the developer's ideas and by the end of the four interviews we're we're looking at a family hub is what it really really seems like. We want to serve get larger sized units which is difficult under li-tech three or four bedrooms difficult under li-tech but if you come in with either library or earthly child care space or other similar things those are count as amenity space and then the tax credits and the funding a part of that and it's allows you to you have the extra source to even do the three or four bedroom so it's really just taking shape and that's where NBC and the contract we have with them in a city they'll come in and slide beside us and help us maneuver through the tax credit world and so you know that's an update obviously in the last meeting we updated you on where we sit with Zinnia now and I think they've gone through their second review and think we're pretty good so probably before the next meeting we're going to be moving into the closing process on that property so we'll transfer the property by the end of the year and then we'll be the closing on the financing is scheduled for May but from January to May it'll be very much yeah we'll transfer the property and so then I think we're looking at starting a construction in May June it's adjacent to the suites and so Zinnia is the official name so part of it was a lot of us are incredibly bad with names I think we said well there's a lot of negative flowers to camarados so looking at it as a campus-wide project and because there's another in that land transfer remember this is just stage one there's another property that's there and then we have some other areas that we're looking at building I think learning from the hover we may want to reset kind of what we're thinking about in that multi-faceted housing approach that over property so so yeah in March I'll go Molly I'll have you know so we talk to you all about approaching a conversation with recovery cafe and that is because we needed more supportive services in that area specifically on the recovery side and what we're seeing so Molly Molly's just been deep into that one with that was complicated because it involves the tax investors the ground leads connecting to the building and I think we're we're taking the next step of our fence yeah so in order to attach it to the suites which makes it eligible for cdbg funds which we have cdbg cb so coven funds that have been challenging to spend down before we hit an expenditure deadline coming up so on November 29th City Council will be considering moving some of those cdbg funds around to fund the recovery cafe because that's perfect use of those funds in terms of that eligibility but that means we have to attach it to the suites which means we are talking about that is a property owned by an entity that the equity investor is involved in so we have to get all these approvals and it's difficult however if we can make it work then we would have the services on site they would have a street presence which is exactly what they want like a storefront style and also they wouldn't have to go out and find land or a building to purchase which means they can put more of the funding that they're getting to the actual facility so it's hard it's not easy it's not the easy route but if we can swing it it's really worth it so we're really working for that so just yesterday we worked with recovery cafe to craft in our fee for feasibility and architecture and that should be should have an award there in the end of November so that'll help us figure out really what to do so why is this important why is it important in this location can you bring that up um so we're going to show you some pictures make sure that the ones with non-residents and now yeah okay elements is still are developing on xenia correct not necessarily on this right now we thought about attaching it but we were too working on so we just um so we said this week i'm kind of talking about what what's creating the workflow that um they moved up some evictions on us so we're going to kind of show you this this go back to that one so is there a way to change it? I think it's upside down. yeah there we go so if you can kind of see this what you're seeing on it is basically uh drug paraphernalia so this this was an eviction that we went through how long it had been in the unit this one's four months these pictures are from today these pictures are from the day that the person was in the unit they've only been in their four months this is in the suites this is in the suites so you see the the drug paraphernalia there is kind of an excellent um hang out the flip of the hand um so again you see board are on those are baby guns so yeah so um you can see more drug paraphernalia you can see drug paraphernalia there you can see a meth there that's here in this location um and so Lisa showed me these and and we've talked about the evictions but we haven't necessarily showing you hey what can you deal with when they're in this but also i think it's the importance of really bringing that recovery component into that location because we have a lot of people that are being successful we have some that hasn't been successful that because of the nature of people around there the big relapse and so having that presence from a recovery standpoint in a facility like this i think is incredibly important and you know what i've said to molly is what's the value in this the value as you avoid two methods contaminated units and the oralized back i mean it's a pretty simple mathematical equation and and so we think that's really important on this as a side note molly went to denver to look at tour property in which where we get more information we're going to talk to you all about what denver has done it is really cool but they found that the meth detectors are now being marketed and sold and so yeah but so molly's going to communicate with them and try to get the folks from new zealand to try to come in and talk to folks about this and so we know now that they are marketing it and of course i've sent some other things to him so it's interesting that new zealand's kind of reading the pack right now and and this this work so hopefully in the near future we will have more information about this this is a four month and we've got money budgeted for background checks for each of our properties what do we miss what do we check it well we're doing the background checks the things that are coming up because they clean them down in court so we only get to see what it's plugged down to and if it's not something that how it allows us to die for we have to allow them in and we can only deny if they manufacture in public health so they can manufacture in the old house that they lost to for closure and they can be convicted of that you can't deny for it correct and depending on how it's reported through the court system so cooking meth is a reason to be excluded contaminating the use of meth is not and even if you're cooking meth and you get evicted but the eviction is it's not payment of rent something else suppressed yeah it does not show up on the map so i've asked i've asked and i'll be honest as i've talked to to landlords i've been pretty overt to say when you have these issues and i think this is why we're being so dogged on it on the eviction is if we're not dogged on this case saying what the issues are and it's non-payment we're just sitting someone else up for the same issue and lisa has been talking to the apartment association about how do we collectively start getting focused on the same page where when this comes up we're dealing with it because otherwise she's a apartment owner and we and i don't deal with it just set her up for the same issue because we're all under the same fair housing laws and and and so that's the piece of following through the evictions and getting through and buttoning this up from a legal perspective because while they can't be prohibited for using the eviction it is a different yeah we can not allow for eviction and if they owe another landlord as a central amount of money so this is where our collection piece that kender has been really working on as these methodists are coming up and we're notating it and we're sending it over to collection then it's going on their credit report and so as a landlord so what i found out is collections is a whole new ballade now and you cannot and collection agencies will not accept anything that's a fee or a fine so if we're giving fines or fees for meth or cleaning and all of that you can't do anything about it it won't go to collection and you can go to collections but it will never get on their credit report so it doesn't secure anybody that's going to get this person x unless there's a judgment and then you have to act on that judgment but the judgments usually are determined based on amount no decision to give me i'm sorry that's okay our only city mediation is working against us because they're going to like buy down you know well all right well if you get out by this certain date we're not going to put a eviction on your record i mean so what we're doing is throwing hand grenades at potential landlords by putting certain people out on the street and if they become unroundable too then they have no option but to freeze and die on the streets so we don't have we don't have a way to salvage these people at all that's what it comes to well i think i think the answer is there is and we're seeing some groups do this we talk to the Salvation Army i think is as you look at and i'm going to call it transitional housing not transitional housing not permanent supportive housing but a transitional housing component where how do you normalize because it's it's the normal it's the normalizing that's getting lost in this so you use transitional for two different categories just then yeah i said i'm going to call so so what happens is and what we see really predominantly of the speaks is we see people that are moved into into permanent supportive housing that are not ready for permanent supportive housing and when you know we the mayor and i had a conversation with Salvation Army you know molly talked to folks at this other facility what we're finding is there's actually a step before that and the step is and i'm using the word transitional housing you want to put what they do is whether it's what the Salvation Army's doing at Denver with solid homes whether it's what they're doing at this other facility is they're moving folks into what i would say is a quasi housing environment and they're re-engaging into some pretty basic behaviors when to wash your clothes when to take showers because so much of that has been lost over time and so they are normalizing individuals via that process and then they're moving them into permanent supportive housing and they tend to be more successful versus just saying this is the life i've been in i'm moving you into permanent supportive housing and so many people don't stop it i mean it's like the stories that you hear where one story we heard that put a guy in a housing and he had to sleep in his tent in his living room for a couple of months because he was he was not ready for that transition and so there those are some things we're starting to look in the mayor's thrown a lot of stuff to us that she's heard about that is really starting to re-shift my mind but to your point in terms of this that is why as a landlord you listen to we we've been on the other side of mediation and we're like no this behavior is so egregious so disruptive we can't do this and and then at times in other legal cases we reserve our right and the one where we have that huge met level we reserved our right and we did go back to the court to say we want a judgment on this so now that it's a judgment they can put it into now we have backed on it we get it into collections and then that goes on the record and that person can't lose anywhere so going back to this and the reason for recovery cafe is that once they transition to supportive housing they need a support system there and if they don't have the support system it's too easy to go back to old habits so it is a continuation and it helps lha because we hopefully then will be ahead of any issues that would come up with the tennis they have somebody on site to go to that is healthy but therapy sessions on a weekly basis or whatever that is because otherwise for me the cost of not having this and continually having meth problems in our in our units we can't get ahead of it and if you're a private landlord we heard it from mr. sandball yes you can't find insurance for meth remediation the only reason we're able to still be insured is because we're in an insurance portfolio that is solely for housing authorities at what point does that loss ratio shift so much that they stop doing it because then you we can't afford it i mean you've seen the budget and then what you're doing is you're penalizing those people who aren't doing that who are willing to do what they need to be to be housed and then they're losing their housing because you can't afford to continue to remediate units it's a it's a tough cycle so so so who are the decision makers that inform collection agencies what they can or cannot include on a record uh the the the the cycles that you just described Harold uh are those is that congress is that is that agency leadership without accountability i mean where are those decisions being made that put us in a position and housing authorities everywhere potentially to put folks who are following all the rules right who are so dependent upon this housing and doing it the right way at risk because of folks who don't follow any of the rules in our you know abusing every norm that that we would expect residents to abide by i mean i can definitely ask these services is the same collection agency she made it sound like it was the credit agencies but there may be laws attached to that exactly um that have driven where they say you know we can't do fines we can't use these and then they they'll collect as far as they can but then what they do is they do is the collection agencies do this formula and they have to do a formula to get even moved to the next step to litigation and for our properties it would never make it because they have to see that that person can pay before it moves to the next step so if we have low income housing a lot of the times those those people aren't going to show that they can actually pay it if they can then it goes to litigation they pay all the lawyer fees but then when they get the money it automatically pays their lawyer fees first but then it could go to collections if we can get it there but um before we before we find ourselves in the place where we're kicked out of an insurance pool or collaborate collaborate is it cml is it ncl uh i mean there's got to be someplace that these issues can be addressed with whoever the decision makers are and i think that speaks where we need to start getting our ourselves into some of these housing authority conferences because i don't i don't know that it'll be nlc or cml or it'll be housing authority specific that's what we're going to have but we'll dig that up because so so that's sort of off topic except i guess we're looking at giving into it but what they're doing in denver this is like this is like cvc i guess caldron george collaborative they're the palatins people um but the question is what do they do that's different from the suede's it's one thing to teach people how to how to cook how to take a shower um how to wash your clothes but if you keep cooking meth it doesn't matter whether you're clean or dirty you keep to cook meth can i uh that is but that is the point of the tour i think finding out that information and bringing it back so what we learned when we talked to the salvation are zero dollars i mean so it's like bcp think of the bcp model where bcp bcp does this and it's where you can come in you can have a place you can do this you don't follow the rules zero time how do they find out you didn't have this budget in with all that so it's a little bit different and that they have inspections and everything else and they have a process and so i think that's we're gonna get some tour set up for you all to kind of go through and look at it but it's it's a different standard than permanent supportive housing because that's once you cross into housing you have rights you have all of these rules and they're on the front end of that and so that's where we're going to get some of these two are set up for you all but um but that's consistent i mean i've heard it now for bcp i've heard it from the salvation army it is that they have pretty hard and fast standards and if you don't follow those standards then you're not allowed to stay there and so those that are following those standards then do tend to be really really successful i just think that this person right here who's only been in this unit for four months already knew what they were doing of course and now they started causing trouble as soon as they got in there right and they already did they researched they already know what they can and what they can't do they already don't want to get in they can't get kicked out unless they get found and so um so it's really really background checks only do so much you know um as far as behaviors and uh yeah it's it's the people like that who already know how to how to you know yeah get to the get in the system and work the system and um and do what they need to do but the people who've been in the housing for 14 years and started hanging around the wrong people those are the ones who slowly end up getting in trouble but this person already know what they were doing that's just why i think that the recovery cafe is such a good idea to get eyes in the situation you know how to deal with it what more support for the individuals that are tempted that haven't haven't you to to go somewhere else and uh so that's why i think we've got some the other points you want to talk about yeah your occupancy report and your tax was um the end of september's occupancy reports we did have a decline in occupancy and we did drop to 92 part of this is um about sort of our vacant units are down units on the bob midway through the page you'll see our meth contamination units um two of those i've now one is almost back on the market several ones here out this week which has been down over a year that one um has been completely restored by our reconstruction company but now we have to go in and do the final maintenance get it all ready clean it get it completely ready for occupancy get it furnished because the streets we do furnish the units and trying to get beds right now we cannot get an affordable bed i need 12 beds for the suites and trying to find a company that can get us a bed at less than 500 is not possible so that's one of the struggles we're running in there um let's see what are your bed costs what are they going to do i think diana said she had somewhat 700 900 and right now we know we need about 12 beds so what is the mattress for mattress box springs and frame we're we're set on couches dressers we still have a supply of those from when the suites was originally i guess got bought we have brand new everything else but beds we don't so when you have a math unit it all gets trashed even the next like box use the last house okay that's that everything goes some of the counters like um the mantles and the suites some of them have higher places they have a math mantle depending on what it's made out of has to go if it's a porous surface it has to be ripped out so some of these units are pretty sad when they're done um i go ahead oh ask them to see here we still have um a math unit there we thought that was going to be a simple clean but when they went back to do the retesting the levels were still high so that required the kitchen cabinets coming out and this this you know it was just done last year half the foreign had to come out from the bathroom and the hallway the cabinets had to come out everything in the bathroom basically had to come out i just i just i just can't get my my referendum residents at aspen knows destroying a unit to the use of math that's the fall river one that we have currently that's a math unit that was uh eviction reporting situation pack out um highest levels the well second highest level the test company has ever seen in boulder county per range per range yes so per range oh yeah we were in the 2000s most of ours come in between uh white cleaning would be anything from point six to maybe one two yeah a lot of our switch units are in the hundreds this one at fall river came the bedroom i believe was 2000 the bathroom was a thousand i don't know so on that one we incurred even additional costs because on some of these we have to test the neighboring units people across the hall down the hall so all that adds up to cleaning costs i don't think we've had a property that's what we're trying to do it because they're expensive they're like five or six hundred dollars six hundred dollars each it's an alarm like a like a smoke a lot but if you catch it early enough then it's a cleaning versus what we're talking about but even then being six hundred dollars and five you avoid one unit and they pay for themselves so so anyway the other problem on the waiting list is especially in our age restricted units we've talked to you about this before is we're just not seeing people that can come in and take the units they're either not ready they're not out of their leaves and so we're digging we're going to dig into a little more to understand what's happening and in that sector because it's definitely changed and it changed pretty fast on us and i don't think it's unique to us i think it's something that everyone's starting to see in age restricted units so clearly we do have three waiting lists open fall river aspen meadow senior and village places all have waitlist opening and everybody who's applying for the waitlist are not looking to move for six months to a year and so as diane and i are getting calls we are you know sending them straight to these properties they they have availability you know they can they can accommodate you today as long as you meet the background and credit criteria and so we're trying but it's a felt bad with most days um we have had a few movements though this past month and i'm working on a couple more um this report does show the hearts don't having two vacants they are fully rented right now so they are back at a hundred percent occupied to the the meth units have like i said have come off f3 at aspen neighborhood that one's been down for quite a while a little over a year that's now the manager's unit she has moved in and she is living there at the neighborhood um we added a new one at the neighborhood b2 um that one will probably be uh full-gut as well and rebuild and the one today we anticipate being a full-gut as well we had a few other units that were down are down for a while fall river we had a biohazard they're still waiting on replacement flooring they can't get the flooring so it's either replace the whole unit or find that flooring and um a4 which was another bad one over at the neighborhood that one's been now it's reoccupied though and then the sweets um we had a biohazard cleanup um and we're waiting they're testing the flooring to see the seats into the flooring and if it can be cleaned or need to be replaced hey just real quick on that one on the flooring run what the floor replacement will be okay and then that way we can look at what the cost differential is in terms of cleanup time because it may be daughter financial which is true okay um and then the next report was the unit vacancy report so you can kind of see how long some of these units have been vacant who you've called that we've had people ever qualify over qualify we've had one unit at spring creek that we've had two rentals they've been fully approved and then they backed out because the neighbors let them know that was a previous meth unit so so it's just a struggle so this report i will include um every quarter going forward so you can guide just to the longevity of the vacancies and why they been haven't been rented or the struggles we're seeing with those units and um to quickly touch on the property updates the quarterly management walks i had started i had started last quarter i'm walking each property top to bottom every quarter and this led into many of the things that i submitted to Kendra for budget needs some of them will be taken in care of in 2022 the other ones are budgeting out for 2023 and this is anything from landscaping improvements patio furniture that's failing that needed returns for years but never kind of always had to look over so we are each quarter going out in properties i'm putting my eyes on it i'm following up with the maintenance staff seeing where things are what needs to be done next and just making sure they're following through and they're at least being held accountable and that we're getting these things accomplished so when lisa says top to bottom she's not jumping she's literally on the roof from the roof to the to the landscape trying to make sure we have it all covered what oh no um another thing like as we pointed out the bs started today i'm excited for that i know the residents were really excited um two weeks ago we rushed through and had via go out to all the properties with about 48 hour notice and had a great turnout at all the properties of residents who may have not been ready to start taking transportation but they know as the winter months come that they need to transition to somebody else driving for them so that was a lot of the feedback we heard at those meetings and so very excited some of the property things we have been doing um in october we had boulder county health department come in they did covid vaccinations and the flu shots for the seniors our last one is scheduled for friday at the suites they will be coming in and providing to any resident who wants it free of charge we also did resident photo day which um i can't wait to show you guys some of these photos we have some photographers on our staff and we got the backdrops and literally held picture day like when they were in school and the resident excitement for these they're bringing their their dogs with them posing they're like someone we're like oh this is going to be my christmas card this is what i'm giving out and um we're hoping to start doing this actually almost twice a year now because it's just the excitement from the residents and made them feel very young for the day they got to get all dolled up do their hair their makeup they invited like family members to come pose with them as well so it's very fun big hits well i did when you hire people that know the world and do a good job i mean this is something that leason and her staff came up and i think that's when you kind of tie back to your question of what was the issue the issue is really getting folks like this to take that interest and do it and my team's been amazing i was all set to help out with these and then i had an unexpected death in the family and my team 100 jumped in and covered every spot executed edited the photos got them to me so very proud of my team for that um couple of just property updates i'm not going to go through all of these this week's had um mhg come out that's their investor they did a top to bottom walk as well and they were very happy with the condition of the property they were happy with the residency fact they got when they were on site the calls for service there has remained low over the last few weeks so excited about that and um chaffa came out and did an audit they did files and a video tour of the property um only thing they had was a couple minor findings that we had fixed within 48 hours so no findings went reported aspen bettos had the same day a chaffa audit same thing no only minor findings everything's been corrected their investor also did an audit we're still cutting those results on that one and palace construction did come out and fix some of the items that we had um from the renovation that we're failing we noticed the dumpster um the beams around the dumpster that were supposed to be pure cedar were cracked and failing so we use of those wrong they've already replaced all those with the right material they got the manufacturer for the outdoor benches and tables that were um on their second floor they were all warped in the manufacturers replacing all those and bringing out my belief friday they've repainted anywhere the brick was chipping so they're they're holding up their warranty even though we're just past the warranty period they're making sure everything is corrected village place we had a great coffee conversations with herald um i know they're very anxious for the recent occasion and i know we're meeting later this week to go over the next steps and what the resident surveys are going to look like and getting them towards a basket of metals so that they can see kind of what it's going to look like or some of the options that will be going on that's the most of it if you're gonna end on good news i'm gonna make one more observation i don't mean it to be bad news but i i'm gonna take it back to our goals and objectives if i'm just listening to this conversation uh i might wonder we have as a target here preserving the we've stated preserving or preserving up to 200 existing affordable housing units and then six new developments one might wonder why we are why we're interested in more units if at a 92 percent occupancy rate and struggling to fill some of those units yeah but the overall goal is that we would do an assessment to look at housing types demographics of a population to determine what the demand is going to become i'm guessing we haven't done that or we were seeing the results of that but but if i go back to this had we done that we now could talk about housing types and the type book and the demographics of a population that we're trying to build out right to satisfy our own needs to me and and i don't know how to connect those dots as i'm seeing i'm listening to the struggles to get you know things filled for all for predictable reasons that you know i understand um if we don't tie it back to this and then make adjustments i'm not certain why we do this so so we got the grant from dola and when we put the grant out the first time for an rfp we didn't have any responses we put it out the second time we have had responses and that work is actually underway right now about to sign the contract which which will then be the basis for that yeah you get my point yeah that all of this the context for all of it should be grounded i think back in this set of goals and objectives that we set and then we can adjust and whatever performance targets we need to set this next year whether it's occupancy rates numbers of units types of units the demographics that we're trying to accommodate so yeah and so you know when we look at these other projects and why we're focusing on family units because we know that is the gap that we're seeing in the community and so we're we're we're not looking at more age restricted units because of these issues but that work will then inform into more of the ongoing basis for it but yeah that was a product of the world um good news on this is so we have so you've heard audit audit audit that's probably been the last six months of the work that has really been undertaken by the staff in terms of and when we talk about staff capacity and what they're able to do um you have cut audits you have investor audits you have dola audits you have chaffa audits and so obviously um just because of the nature of what the condition when we took it over it seems like an audit every month every month more like multiple and so so that's really what's been eating up staff time because those audits are are insane so you have to go through and you have to inspect all the units make sure nothing's wrong and they'll cross your fingers that people don't change what you expect to remove smoke detectors do things like that because that happens so we have to document it so even before the audit there's a massive amount of work that they have to go through review files make sure the files are in order because you never know what they're going to pick you have to go through and inspect the property inspect the units and then they'll remove the smoke detectors but then because they have a documented smoke detector is connected it was removed and they can attribute that to then the resident and it's a little bit different so why aren't smoke detectors installed in the tamper proof way it sounds like it sounds like you're talking about the same smoke detectors that was on the ceiling of my trap house when i moved in so why it's built why i don't we weren't here i mean that's the thing obviously we're obviously you don't want to do that and and that was only one case but it could be live models you named it um we had our biggest audit um last week that was the mor audit which is a audit for the lodge and the heartstone which is a hot audit that um in terms of what they had to do to get ready for that was more significant than anything they have to do that was the same audit that we got in 2021 right before we took over our right as we were transitioning into it and so molly and i got to meet with the auditor and we're still waiting on the results but um he kind of sobered us when he said i think we only scored like a 20 out of 100 in 2001 based on where they were 2021 based on where they were at that time and the only reason that they probably were the only reason they got any points at all was because of the condition of the facility they basically got no points for anything else in those facilities um tenant files and policies finances conditions all of those issues and so it was probably as bad a fail as you can imagine um we we did the debrief with him um and he said it was dramatically different um a 180 in terms of what they had to deal with um he said i no longer have to guess where the funding's going to because the funding is really completely outlined for us um apparently we didn't know that when they were asking for certain financial statements before historically that the staff at the time would say we can't give it to you or the board won't allow us to give it to you and yeah um and which is bizarre to me because it's an open record and and so he basically said i never have to guess where anything is i know where it is so the condition's awesome um we think uh that worst case scenario we're going to get a satisfactory just to show that we think it could be a little bit higher than that and um i think it's impossible to move as far as we hope to do um but he's going to give us what they judge the units on so that we can start using that to set the standards in terms of where we want to be and what to the point of objectives or what are the objectives for leasing the management what are the objectives of the operation and make her the maintenance staff because that really is the bar that we need to to try to get in order to get that but and then at the end we said well you know we're fighting problems and other issues tell us about your perception of the city taking over this and his comment was um i hope the city never gets away from this based on the difference and so we're hoping that it comes back at least it's satisfactory but preliminary review was um night and day difference between what was there before and what what's there now so put the number on it is a satisfactory of 60 or 75 because we had a 20 before so it's um fail below average or uh i'm missing out the categories something like below average satisfactory above average exceptional um he said don't expect to go from where we were to exceptional in one year but um that could be a thing over time but we are expecting a satisfactory which is a very good thing for one year's worth in progress so you you basically have a baseline now for yourself which you didn't have before right it sounds like a performance story to me yeah well that's why we asked him for your measure what what they do to judges because we've never had that kind of conversation to know how do you judge your facilities and even those that aren't hunt facilities would use the same thing for all of our facilities to go here's now we're going to set the targets and um it's good information and he had history with the unit even when he worked with dola and others so it was a good conversation and we were kind of think dreading not we knew we would make a big difference but you know honestly for lisa and her staff and he had a lot of praises for ingray and lisa and just different interaction um over and over again you didn't know that she didn't but he had a lot of praise for them again it goes back to your staff it goes back to the quality and um yeah we were pretty happy when we left that and made my next three days off or whatever much better but um that i mean it's it's the entire group and and i think it's um it's just going to continue to be incremental but i wanted to after all of the other news i wanted to let you know they did phenomenal on that and they've done that with their investor audits and everything else they've done for um it's been a good year for them and you know it's a different world that's congratulations yes it's great for us so is there any more that's it for your report commissioner comments any more comments we're going to motion to adjourn all right we are adjourned