 Mr. Mayor it's all yours. Thanks Steve. Thank you Dan and thank you Anthony. This is great. We haven't met like this in a while and it's really good to be doing this and I think we I think an annual meeting like this would be great and I really appreciate y'all pulling this together. I want to welcome Terrell Armstrong who we just as you all know colleagues we just appointed to the board and you're going to find that it's a great board. I was the liaison on the board for I believe six years the Housing Authority board and it is just an outstanding group with an incredibly important mission. I want to second what Dan said about the close relationship we have now and I want to give not only credit to Anthony and the staff of the Housing Authority for this close relationship but also to our city staff to Tom Bonfield, Keith Chadwell, Reginald Johnson, Karen Lotto, Terry Porter Holmes all the people in our community development department who have really worked to make this a cooperative relationship and under Keith's leadership this has been I think really successful and we've had a lot of bumps in the road we've got a lot of difficult challenges but I think that with the with the bond issue having passed with our support that we are giving already Anthony's gonna outline the support that we're already giving in so many ways and the support that we've committed to give through the bond campaign to the Housing Authority it's very exciting it's gonna make it an enormous difference in the lives of thousands of people and so I'm I'm really pleased to be here to see all the folks from the Durham Housing Authority board and I'll now turn it over to Anthony. Actually I believe Mr. Reginald Johnson is up next. I'll turn it over to Reginald. Alright well thank you thank you Mr. Mayor can you can everyone hear me? Great so good morning and first of all I bring you greetings on behalf of the city of Durham Community Development Department I'm Reginald Johnson director of the Department of Community Development and Community Development Department I'm joined this morning by Terry Porter Holmes and Karen Lotto assistant directors as well as Matthew Walker who is the multifamily team leader and all this work related to the Housing Authority and development following his leadership and his team. I do want to thank the commissioners for being here as well as the council members Mayor and Mayor Pro Tem and also want to welcome on behalf of the Community Development Department our newest council member council member Freelon welcome we're glad to to have you sir in our service being your service understanding as we may be working closely together on some matters so I greatly appreciate that. My task before you this morning is to generally provide you with an overview with a little bit of details in some context and I guess I say I'm paving the way for the main event which is Mr. Scott but just want to provide a little details in some context with that and you know Mr. Madam Clerk if you can put up the presentation thank you thank you so very much. I would just say we're glad to be here and this is a good meeting and I'm looking forward to the discussion next slide. The first thing in terms of my overview and some some key points I only have about four slides five slides is to unequivocally state that the city is committed to supporting financially and with expertise DHA's effort to rehabilitate existing public housing and create new affordable housing opportunities in Durham. I've said many times even before the bond referendum that you know if one has a goal of increasing and it's improving affordable housing one can't do it without being in partnership with the housing authority because the housing authority so serves so many of our most vulnerable populations in the city of Durham and so from the city's point of view which we have a broad way of looking at affordable housing one can't do it without you can't work around the housing authority you have to go with the housing authority to be successful our intention is to be successful. Another key point is that the city and DHA are committed to the MDWBE participation goals for the DHA downtown and neighborhood plan project the DMP projects. The city actually just released a RFP on MDWBE to bring in a consultant that's under was released on the 28th and so the housing authority has been instrumental in helping us with that we'll serve on the review panels with that and so that is a goal for both of us. I would just also like to share for the benefit of everyone and this is a reminder for some maybe new information for others that DHA and the city are partners on some non-development related areas such as the creation of a pilot employment and training program for DHA residents targeting jobs on constructing trades. We're working with office of economic and workforce development on that as well and DHA and community development department and also DHA works with us in the dissemination of HUD funds through the housing opportunities for persons with age program they're one of our sponsors so this has nothing to do with development does have to do with affordable housing but we are partners and DHA is one of our key partners and next slide. As it relates to development efforts city support for DHA's for development efforts I just want to share briefly many of the you know the names but just to give a broad overview in terms of the lower Oaks which is the 30 units the city investment is 800 thousand understand that when we talk about investments our role is gap financing so usually we're providing our filling some gap and the main part of the projects financing comes from other places JJ Henderson Tower we have 178 units we're contributing 2.9 million JJ Henderson new construction 80 units we're compute contributing 3 million the Maduro Terrace electrical upgrades we talked about that earlier in the spring for about 360 units 1.4 million and then the lives of the street new construction the first phase of the main Liberty Street redevelopment of 1.1 million and subsequent phases of East Maine and Liberty Street redevelopment we're setting aside 14.2 million then on other related matters we're providing operational support for the DD NP and that's the total of 1.9 just under $2 million and then we're providing relocation assistance for the DD NP and that's our 700 thousand and so these this list is there in different stages but this is definitely money that we have earmarked or is in process already under contract and some of it has been already expended for the housing authority or we processing contracts preparing contracts next slide just to provide a overall context and when I we were talking about affordable housing it's not just development it's not just the housing authority it does include other aspects of affordable housing I just wanted to make sure that for the commissioners as well as our new council member anyone in the public to to appreciate that we don't just have work with the housing authority but there are other things that we're doing so in terms of homelessness the council has approved COVID-19 money 602,000 for emergency response and support rapid rehousing emergency shelter for medical and vulnerable we've opened the RFP in the amount of 538,000 in city and federal funds for rapid rehousing and emergency shelter we launched the unsheltered coordinating agency that's funded with 537,000 city funds over the next two and a half years for the outreach case management for the unsheltered and literally homeless households and we have over $500,000 a year and ongoing city support for coordinated entry landlord engagement and the homeless management information system related to homelessness and in terms of what their family rental we just issued RFP that closed and we're in the process now which will result in over $10 million in contracts in the pipeline for more than 250 new and preserved units as a result of the recently completed RFP we'll be coming to council with an update for that the next few cycles next slide and then on the neighborhood stabilization side we've executed emergency rental contracts with Durham County Department of Social Services and over $1 million as part of the COVID response we've opened RFP we'll open RFP on $700,000 for minor repair and intake for substantial home rehabilitation work over the next two years we funded a second year of eviction diversion of $500,000 contract with legal aid of North Carolina and we have a $1 million contract with DCLT in process for the second phase of the East Durham redevelopment and RFP for the third party administrator for a downtown down payment assistance program expected to be issued at the end of this year calendar year and we have multiple RFPs underway to start up the lead remediation program the grant that we received from $3 million grant we received from the US Department of Housing and Urban Development and so I'll conclude with that next slide conclude with that just to give us an overview of some detail some context for this discussion and you know I'm entertaining the questions Mr. Mayor and Mr. Chair but if there are none then I'll turn it over to the main event which is Mr. Scott. I don't see any questions Reginald but can I just comment that I'm so proud of this Reginald and and council colleagues when you think where we were I guess what five years ago Reginald six years ago we were just beginning the dedicated funding source first penny for housing and how we have been able to turn this into a really great program of support for affordable housing all across the spectrum from homelessness all the way up through the low-income housing tax credit projects it's very exciting and to see all these RFPs coming to fruition to see the homelessness support we've been able to give and we've ramped that up so high and I just want to thank you Reginald I want to thank the members of your staff and Keith for making all this happen so I really thank you thank you Mr. Mayor right there if you are ready for me if you could please pull up my presentation please while it's happening I wanted to thank you Mr. Mayor and Mayor Pro Tem all members of council and a special welcome to our newest council member Pierce Freelon it's a pleasure to have you join join the city city council staff or city council I should say and this is probably my last opportunity in a public forum anyway to be in a meeting that includes Tom Bonfield I just wanted to say a few things about about him in my four years here I've worked in a few cities throughout my career and your leadership City Manager Bonfield is the best I've seen from top city administrator your commitment to Durham's low-income citizens is always been supportive it's always been encouraging and refreshing and the seas that you have planted in your role and the relationship with the Housing Authority will serve the city for decades to come and it's just it's just amazing to see what happens when you have good strong leadership and commitment to see a brighter future for DHA and for our families that we represent so enjoy your your next stage there Tom and I look forward to occasionally bending your ear in the future thank you Anthony and the smile on my face is thinking about that next phase of enjoyment but certainly I am very proud of the work that that I've been involved in but really that the council has supported and that the the city staff under Keith Chadwell and Reginald Johnson and others have really helped the city think through very important issues with our relationships with Durham Housing Authority and I am extremely proud of where we are and I'm excited about the the update today that could happen before I transition out of the city manager's office so thank you very much and I plan on being around and keeping an eye on things so keep keep moving forward thank you yes sir so with that next slide please I want to cover today a very high-level overview of DHA with Google terrace update COVID-19 rad in multiple fashions talk a little bit about our partnership but habitat and and then also just to speak to some of the agency challenges to go to come next slide please so firstly just to give a large-scale picture of who DHA is and who we serve we essentially serve about 10,000 individuals and those are split up to include both the public housing program those are the hard units that we we own and manage and then the housing choice voucher program so as you can see we have about a little over 1600 families on the public housing side and that number is actually a little higher and we have about 2800 vouchers in our voucher program and right now we have about 25 or 2600 families just like it's a little bit outdated and so it is a a large number of residents that we serve in our DHA families that average is about 2.1 people per household and an income of just over $13,000 when you combine both the voucher in the public housing program and the rents paid by those families is less than $300 per month and 38% of our households actually have earned income next slide please and just to break that down a little bit more in terms of age you can see that half of our population is minors kids that are 17 and under and if you also I was involved now with the dorm children's initiative where there's a special the effort they have around kids from zero to eight years old so when you look at the number of kids that we have that are zero to eight years old 21% of our youth are actually in that category so we do have a lot of residents and a lot of those residents that you know almost half of them are actually children under 17 years under 18 years of age next slide please so a quick update on McDougal Terrace you all recall January 3rd we began evacuating families out of McDougal Terrace and that evacuation in terms of when people finally came back and the work was complete ended on May 3rd with our last family moving back then the work that we undertook included replacing the existing venting systems for the hot water heaters and the furnaces it included installing new furnaces that included thermostats and replacing gas those with electric ones for most of the units which also required us to upgrade our electricity we added safety devices to the to the water heaters and we also address address the number of environmental concerns including mold remediation and insect infestation and some other hazards that came about through the work from our city's NIS department as well as the building and inspections department the interesting thing about this of course as you see the dates we all were impacted by COVID-19 starting directly in March so that actually overlapped with our efforts going on in McDougal Terrace as a result of that we halted the switching of gas stoves to electric stoves because we did not want to have to have people in hotels basically we are required to shut down the electricity for between three and five days to do this changeover of electricity which means those families have to go into hotels we do not want to have families in hotels during this COVID crisis so we decided to halt that work so there are about 136 units remaining that have to have upgrades to electricity and convert the gas stoves to electric stoves the units that do have gas stoves though were given new stoves new gas stoves in the interim that also the COVID impact was that during that time we also halted all routine work orders and we only focused on emergency and urgent work orders and that was to comply with the need to have PPE and I'll talk a little bit more about that when I talk about COVID-19 next slide please next so with respect to the COVID-19 impact on our operations we began to do some initial planning around this in February actually and we created an in-house task force to kind of look at what this may mean if this was to impact us the way it has in other parts of the country of the world so we and what we concluded is that in March we actually started shifting to having people work from home who could later in March and this is in compliance with the orders that came from the mayor of course and governor we actually closed our office to the public and again we were only performing emergency and urgent work orders during that time we also set out what we call the reverse call center so what we did was had staff particularly those that were working from home we had them reach out to our residents on a weekly basis they would call residents have signed up with our seniors particularly two three times a week checking in on them to make sure that they were getting access to food access to the medication or any other issues that they might have so that we could connect them to assistance either directly through us or through some of our partner out there next please we also during that time began to order PPE which included obviously masks gloves we purchased thermometers that we can install in our offices and also Tyvek suits so that we could get to a point of doing routine work orders in our units whereas we might not have residents be able to leave the unit but we could still go in and actually conduct routine work orders we also began to identify office modifications that we would need to do and begin to do that such as plexiglass plexiglass shields putting six foot distance social distancing stickers down and also doing some modifications to our name building central office where we'll be able to set up a boost that will allow the social distancing necessary to process applications and other types of inquiries in June we reopened our offices in a limited capacity and we only are allowing people to see our residents via appointment only again to minimize exposure in July we began our partnership with DPS to ensure that we could do everything possible to make sure that our kids were getting access to computers the hotspots and I should also mention that the high speed internet installation that you all supported as city council members we are very very excited about this it's the an effort that actually started as part of the connect home program even before I got here to DHA and so we are extremely grateful to have the ability to have a internet network that will be able to cover our top six or seven communities that have school-aged children so they'll have free high-speed wireless internet that's underway right now we expect that to be done I believe in the next month or two that all of those communities will in fact have that free internet access and this past month once we finally got in our additional PPE we were able to begin routine work orders as well next slide please we'll talk about rental assistance demonstration or rad and rad as you all may know certainly most of you know that this is a it's considered still a demonstration program that in essence switches the public housing assistance that we get to support our operations to a housing choice voucher assistance and the reason why this is such an exciting opportunity for housing authorities across the country is that the public housing assistance that we get and when I say assistance this is the subsidy that we receive that pays for repairs it pays for staffing it pays for utilities it's the ongoing operations of the property those dollars historically have been up and down at best and over the last 15 20 years we've been funded at a rate that's somewhere around 80 percent or so so we've been getting less and less money in order to operate our properties properly over the last 20 years or so the housing choice voucher program on the other hand and we think this is primarily because it is a private sector based program it is the largest assistance program that the federal government offers it's it's it's been getting its necessary funding at about 99 percent on average so the idea around rad is twofold one is to come out of the existing public housing program funding source and move to the housing choice about your funding source so that the stability of the funding is more likely to occur year after year many people don't realize but we get funded each year and it's through congressional appropriations on it on an annual basis and that's when we know how much money we're going to actually get in our budget year so for example we are hearing that there's going to be a continuing resolution for the upcoming fiscal year and that means that they'll continue the funding that we receive from the current fiscal year into the next fiscal year so we have no idea what our actual budget might end up becoming in 2021 and this is one of the challenges that you face with our annual funding that we receive as a housing authority the rad program also brings in another important element and that is the ability for public housing to use financing tools that is not currently available in essence it allows us to be able to use bank financing low-income housing tax credits things of that nature that we can use to help pay for the renovation or redevelopment of our communities next slide please so our approach using rad and by the way rad has kind of three different approaches and we're excuse me four different approaches we're using all four one is what's called a straight conversion that is we will simply switch the subsidy that we're receiving in the public housing program over to the public to the housing choice about that's a program we've done that with the goalie point development or in process of doing it with the goalie point development as my alms it has been done already and the four hope six deals that we've done it's been done with those mainstream town homes home and homes list that twice my apologies coward place and in the other site which draws me a blank right now my apologies for that but the four hope six sites all have done this straight conversion so now the public housing units that we have in those developments will are already receiving our subsidy through the housing choice voucher program and by the way I should mention it doesn't change rents that people are paying they still are based it's still based on 30% of the income they still have all their protections that they had as a public housing resident and all those things are built into the rad law it's not a choice the DHA gets to make not that we want to change that but it's built into the law of the rad program the other approach is rehab and we're doing that with a more court more in roads and Laura Oaks those four properties are having substantial excuse me three properties having substantial rehab done for those they mark court which is actually finished Laura Oaks as was mentioned previously by Reginald Johnson is underway right now with the rehab for that and more in road is also was it's basically complete and the issue with more in road is that we discovered that there is a plumbing problem there that wasn't built into the original scope of work so even though we thought we were done with Maureen we have to go back and do some additional work on the plumbing there we'll talk more about that at another time but that is a major setback for us on that development because we were ready to occupy all the units there we currently have and bidding a bit out now to get plumbing bids for that to determine what the cost will be but we have to go in and replace that typing in there that handles a sewer this was not originally in a scope of work unfortunately it was something that was I guess overlooked by the architect I didn't think was necessary but after we've done the work there we know that there's definitely something that we have to go in and fix we don't want to have people in the units and then have some sort of plumbing issue Laura Oaks as mentioned is underway right now it has it's about 1.6 million dollars in total as was mentioned by Reginald Johnson half of that is coming from the city the other half DHA is contributing to the renovation of that development the next item our next approach is redevelopment itself which is the tear down and rebuild of those public housing communities and I'll talk a little bit more about that in just a second when we talk about DDMP and lastly is what's called transfer of assistance and that is where we take the subsidy that we're receiving for those units and we transfer it to another property excuse me we're doing that at the Willard Street property which is being developed by DHIC and partnership with self-help we're transferring 21 units from a public housing site to the Willard Street site they will they will be essentially rad public housing units now in Willard Street so residents 21 families will have an opportunity to live in a brand new affordable housing development but staying right here in the downtown area next slide please DDMP or DHA's downtown and neighborhood plan this is a rather bold and ambitious plan focus on the five DHA properties in the downtown area plus two city-owned properties as well this will take essentially 447 existing units and return almost 2,500 units to that site it will have a variety of income ranges it will replace all of the 447 units that are going to be torn down in fact some of those in JJ Henderson are not going to be torn down at all they're going to be actually renovated it's got an estimated completion timeline of ten years an estimated budget of half billion dollars next slide please and we give you all an update next slide please an update of where we are with this overall plan so this shows you those seven properties and what they would look like once they are completely built and I should caution everyone that these plans may change as we get to the development of each site but these are viable plans that were developed with financing plans with our partners EJP and they are our development consultants that have been working with us on these developments we are excited about what this will mean for Durham and how it will bring not only affordable housing but affordable housing at different levels as well as some market rate housing retail commercial space and new quality open space next slide please so this is what those seven sites look like over time and in terms of budget in number of units so you can see that the first phase of this and these are listed by phase the first phase it is JJ Henderson JJ Henderson has two phases to it it is the renovation of the existing building plus the building of a brand new construction building on the same JJ Henderson site I talked about this being a 10-year development program the reason the primary reason this is going to be 10 years is because each one of these phases has at least one 9% low income housing tax credit development in it why that's important is because the low-income housing tax credit program in the city in the state of North Carolina Durham only can get one per year so even if we wanted to do more phases that involve 9% we can only do one per year at this time and we're going to work real hard to try to get that to change but right now that's pretty much the way the state of North Carolina and that's the low-income housing tax credit program that necessitates us having to have a 10-year buildout because we have 10 years of 9% deals in this but not all as you see there are 17 phases all together so we'll be able to do multiple phases at a time but in terms of that 9% piece which is important for the affordability of the development we have to apply each year and hope it will get a 9% phase and you'll see in the red box the Liberty Street and what we now call 519 East Manning DHA office site in the Forth Hill Heights are all sites that are targeted for the bond the recently passed well not so reasons almost a year now the housing bond program that passed last November next slide please so a little bit on where we are with DDMP next slide so as I mentioned JJ Henderson is going to be two phases now instead of just one so we're going to do the renovation of the existing JJ Henderson building which is on the left excuse me yes on the left side so we're going to do a complete renovation of building from top to bottom on the right side is a brand new construction building of 80 units in both of these sites will be targeted for our senior population the approval for both of these is already in hand we expect that construction will begin on both of these sites in the spring of 2021 next slide please this is a rendering of what the new construction building will look like and you kind of see just in them in the kind of in the middle there you see the existing JJ Henderson building kind of peeking out almost looking like a chimney but you can just get a sense of from that vintage point with the new building will look like in relationship to the to the old next slide please next slide so the next phase of our DDMP is the Liberty and 519 East Main Street site and I just want to say a few words about Liberty and 519 while we're saying 519 East Main Street our board of directors has removed the name of Odom Powers from the 519 East Main Street development because historical records show that Harvey S. Odom senior who used to be one of the early executive directors of the Housing Authority was known to have racist tendencies as well as having some very disrespectful ways in which he treated DHA residents during his tenure of leaving the Housing Authority and we the board decided it was not in the best interest of dorm or fully represent of who DHA is today that his name on to be carried on that building so that name has been removed and we for evermore will be referring to that as 519 East Main Street that tells such time that we are replacing that that former building that 519 East Main Street building so this shows you the Liberty and 519 East Main Street site the small inset on the right shows you what the site looks like now and what you see before you is the current preliminary site plan we are very excited to be able to report that phase one has been funded by a 9% tax credit or been awarded a 9% tax credit and it is the first 9% of our overall plan that we have that we were one and we're very excited about this so that will be the first phase of the rebuilding of this site there'll be more on this as we continue to work on it but at this point we are very excited about that that's what's known as in this slide it shows us to a that's what that building will be located and you can see throughout there's going to be up to five additional phases this is again a subject to change this is what the site plan looks like you'll see there's plenty of open space there's parking on site and we will continue to refine this for the better as time goes on but right now we're really excited to report that there'll be 72 brand new affordable units on this site to start construction next year next slide please also I mentioned the idea of what we call shared prosperity we've heard a lot about this term in the last year or so and DHA is very committed to making sure that with this half billion dollars of development activity that we ensure that dormites get an opportunity to take full advantage of that we have two development partners right now one is called Law Street residential they are doing both the new construction on JJ Henderson and the new construction of the 518 East Main Street site they have committed to the MBE goals that you see here 30% for WMBE they're going to be working with local MBE organizations and part of what that means is looking at how we wave or reduce bonding requirements or insurance liability and on dealing with the ongoing challenge as a smaller contractor how do you carry what might be 45 days before your page for the work that you do all key things that tend to be barriers that allows more WMBE contractors and subcontractors to be a part of the development like this these are commitments that have been made by both our development partners to date and will require it of all our development partners going forward next slide the other component of this is also focusing on local hiring Reginald Johnson mentioned the partnership between the Community Development Department the Office of Workforce and Economic Development and DHA on making sure that we can include actual training programs within the work that we're doing so that we will have a ready workforce we've been talking with our development partners on this making sure that their general contractors are providing us with information on the kinds of hiring them and to do they will try to train to hire for those positions as well as other activities and programs that we have going on within DHA the city we can do the same thing we think that this is not just about housing but this is also an opportunity to to implement economic development for residents of dorm as well next slide please one of the things that we frankly we haven't talked a lot about is this partnership with Habitat for Humanity and DHA and City Manager Bonfield I remember the very first national night out we were we were we were there at the Franklin Village when we were standing there and you looked over to me and says Anthony we need to do something about those lots over there and I said yes sir we'll work on that unfortunately it is taking us a very long time to get there but we're happy to report that Habitat Humanity became our partner on the development of these 37 lots those 37 lots will become 37 affordable home ownership units and I'm also pleased to say that I believe what is the date now September 18th will be the very first homeowner being welcomed to their new home so there should be a notice about there coming out hopefully you guys will be able to attend it's going to be a virtual kind of thing I believe that's at 3 p.m. on September 18th we'll actually have our very first homeowner step into their home on that date so we're excited that we've been able to be a part of home ownership it's not something that we talk about a great deal because it's not really our real house we'll move to more of that in the future we've been focused on the rental side because those are the properties that we have but home ownership especially affordable home ownership in a city like dorm is absolutely critical and we want to support that in any way that we can next slide please so I want to talk a little bit about some of the challenges that we have at DHA you know beyond some of the things that you guys have heard about but one of the things of course is how we working with our residents that are unable to pay them at 3 p.m. we put in place a policy change back in the summer of 2019 we've done some modifications of that as well in terms of what we called now the housing stability program and essentially it's an addiction prevention program and it pretty much picks up from where we were last summer where we're emphasizing to all of our DHA residents that if you are having problems paying your rent or if you have a loss of income then let DHA know so that we can make arrangements so that we will not have to file for addiction for non-payment rent now that's in general I should point out that you all are aware that the HUD had put out a moratorium on evictions through July 24th well since that time the Center for Disease Control has also put out a moratorium on evictions that runs through the end of this calendar year we feel strongly though that we didn't need either of those because the policies that we have in place would achieve the same thing the one thing that we continue to emphasize though that it's a moratorium on evictions it does not excuse the rental amount that's due during this period so we want to make sure that people work with us so we can work with them and we can avoid the unnecessary process of filing for evictions obviously won't be doing that anyway in 2020 in fact we haven't done any in 2020 I want to make that clear as well we haven't filed for evictions for non-payment rent at all in 2020 but with the moratoriums that exist we won't do that anyway but we we want to make sure that residents don't just stop paying rent for no reason to make sure that they are in touch with us the guidelines by the CDC get very specific reasons as to why you qualify for that and we just want to make sure that everyone who hears this emphasizes to any resident that is having problems paying their rent to work with us we can work with you we have partnerships with ESS some economical communities as well next on our capital projects oh sorry stay on that same slide please thank you we have started the roof replacement at Hoover Road in Corvallis those are two properties in which we had significant issues of water leakage the construction on those has finally begun on Laura Oaks I mentioned earlier it's going through a rad conversion and then overall we've talked a lot about BDMP in the downtown sites we are also in fact had it not been for COVID we would have we expected before the end of the year to have had a overall portfolio-wide plan this is something that we've always been working on and we sort of always had but we need to make sure that we're refining that based on the resources that are available based on the likelihood of how we'll be able to do that in conjunction with other development activities that's going on so this includes what are we going to do about the renovation of redevelopment of a Cornwallis, McDougal Terrace, an Oxford Manor, scattered sites, etc. we want to have a fully worked out plan for all of our communities because the the goal here is to convert all those communities to rad developments so that we can come up with the necessary resources we need to either rebuild those communities or do a substantial renovation of those communities so that they will be safe decent housing for decades to come and lastly I wanted to talk about on this slide troubled agency status as you all know in 2018 we were designated as trouble we were previously substandard which meant we were right on the edge and then 2018 we became designated as what's called a troubled agency and that's a designation and it's specifically associated with the fact of our four stores on our inspections so we are working diligently to get those things addressed you know part of some of the channels we found that McDougal beyond the carbon dioxide issue certainly exposed a lot of that and so we've been working diligently on that but we have a plan that will be releasing probably next month or so that talks about how we're going to be addressing all of our backlog and work orders particularly under COVID-19 and how do we make sure that we are improving how we are doing our repairs and our various properties it is it is not something that we find acceptable at all I find acceptable certainly not my board and we want to make sure that we turn around that trouble agency status for 2021 we would like to have been in position to say we want to do that for 2020 but unfortunately as I mentioned we had to stop all of our routine work orders because of the COVID-19 situation and not only that HUD has declared that it's not going to be doing scoring for the work orders and the performance of the properties in 2020 so even if we were in a position to actually have scoring done HUD is not performing a scoring they're not going to do any probably until the spring of 2021 but we're confident that we'll be ready units will be ready and our our trouble agency system excuse me our trouble agency status will in fact be converted back to standard next slide please other things I wanted to mention is that DHA has three OIG audits one goes back to 2004 and came out in 2005 and in this particular audit says that the housing authority is required to repay a possible 3.6 million dollars over 100 years we have been doing that since this agreement was reached which I think was around 2014 it was actually a little bit before my time and the HUD has come back and said that the guidance that we received from our field office out of Greensboro was incorrect and we have to sort of redo the agreement that we had but that's the that's a minor issue in the scheme of the things the bigger issue is that when you see it says that we have to repay this money we have to repay this money to our public housing program and it has to be paid by non federal dollars so there is some funding that we get from the federal government that is declared non federal right it's money that comes in as administrative way so we've been paying on this through those non federal dollars the problem is is that as we implement RAID we are reducing our public housing inventory and this is we're not reducing the units we'll make that clear we're just reducing what is called public housing because remember we're putting in the RAID program so it no longer is considered public housing and so HUD became alarmed and said well you have to come up with a more aggressive plan to repay this $3.6 million because you are reducing your public housing inventory as you convert units to RAID so one of the things that we were able to work out with HUD is to say look in our conversion of these properties from public housing to RAID we're using non federal dollars in doing so can that count towards this three and a half three point six million dollars and they said yes it does so the funding for example that we're receiving from the city or the JJ Henderson development and more Oaks and even the 1.4 million for McGoogle are all eligible dollars to be counted towards this three point six million dollars for that OIG outstanding audit so we're making the necessary agreements with HUD and BHA as well as we'll need some assistance for you all in terms of just language changes in agreements in arrangements that have already been made just to ensure HUD that yes these funds will come to the housing authority and they'll be used for the RAID development and that'll allow us to essentially apply those funds towards this three point six million dollars and get that OIG audit cleared once and for all similarly there are two OIG audits that were done for the housing choice doctor program that were issued in 2016 again this is just before my arrival and those will require DHA to pay those over the next five years again we were already paying these from 2016 until now but the guidance that we got from one branch of HUD says no no no you didn't do that the right way so now we have to sort of redo it all over again but but that's fine but those are the three OIG audits that we have outstanding that we're working on and we've never been out of compliance with our repayment on those but it is causing a little bit of a change because of the fact that we are reducing our public housing inventory to include the RAID and lastly and this midst is the RAID conversion is requiring us to be more aggressive with the repayment plan so that's actually was explained in the previous bullet next slide please which I believe is the last one and at this point I'll just open it up for anyone who has questions for me so thank you all okay great thank you all thank you Mr. Mayor I had something for Director Scott if that's okay absolutely great thank you Director Scott thank you for being with us and for all the work that you've done especially over the last I guess year or so really one of the most challenging years for our housing authorities certainly since I've been on the council you mentioned that non-essential work orders that I don't think non-essential is the word used you said non-essential routine work orders have been delayed while we're in this kind of public health emergency is that right that is correct and that's actually what virtually every housing authority calls the country it's in the same position sorry go ahead does that include things like mowing the grass no we have contractors who are who are mowing the grass or EHA okay received a message from one of the residents of McDougal Terrace who was concerned about that so I wanted to put that on your radar also to get a timeline from you on when you think the repairs at McDougal Terrace are going to be complete it wasn't clear to me from your presentation whether those are also being held being delayed by the public health emergency but just wanted to get some clarity on that are you referring to the electrical repairs yes yes so we have you know we sort of been careful because of the uptake that we've seen in the COVID situation we are going to huddle about that this month to see if we think it's safe and ready one of the things that's going to be clear for us is that we've got to make sure that all of our residents are in agreement because you have several apartments in the building if you have a family that says they're just not comfortable with going to a hotel for three to five days because of this COVID situation then we won't be able to do the work at all and so that's been part of the hesitancy one just knowing what the COVID-19 emergency has met for people and then two knowing that all our residents are going to have to be out of each of those buildings when we go to shut them down so we'll do two things in terms of starting to do outreach with residents in the next month to see if they're comfortable with doing a three to five day hotel stay we also need to reach out to the contractor to see what his ramp up is like and whether he'll be able to kind of get all of his workers back in place and that sort of thing so they will have to be a bit of a coordinated effort so does that mean that those repairs have to be done on a building by building basis and not a unit by unit basis that's correct because you have to shut down the power in the entire building right got it okay that makes sense but that makes it a lot harder totally understand that one other question from the chat if council members receive questions about from individual families in DHA housing that have specific questions about their units what's the best way for council members to get that information into DHA probably texting you is not really the best strategy although it's really the one I've employed thus far but maybe maybe there's a better way to do that I want to give you a chance to tell all of us about that now right if you feel it's urgent certainly text or call let's first but you can contact to one feels who was on the last slide per email there it's t-field at DHA hyphen mc.org because she keeps me on track and make sure that I can follow up on various items great thank you very much director Scott I appreciate your time thank you other questions colleagues any other questions so I have a couple of questions I think it would be good to explain a little bit more about the low income housing tax credits and why the 4% a little but the 9% kind of what our situation is with JJ we didn't get the 9% we're using the 4 hence more city money being needed and how the the you mentioned that we're we we have been engaged actually you and I and others have been engaged in an effort to try to get Durham to have more ability to get 9% credits but if you could maybe talk about a little about some of that effort since that's also crucial to our ability to build affordable housing so there are two types of low income housing tax credits one is called a 4% one is the 9% the 4% tax credit is essentially about half the assistance that you get and that is non-competitive there's there's plenty of volume if you will that the state has to do those to do those deals but as I mentioned you don't get the same amount of money that you would for the 9% so that means you typically going to have a bigger gap the 9% tax credit in North Carolina the North Carolina housing finance agency which are ministers of program has developed a whole system statewide in terms of how they're going to distribute these awards and they determined that Durham only gets one 9% a year max now we can get none but we certainly can't get more than one part of what we've tried to do is try to get the housing finance agency to think differently about this particularly since you have a housing authority that is being you know very forward-thinking it's got a larger development plan it's not just kind of a one-off there's a deal over here we might do or somebody comes along there's a deal over there but we have a very strategic approach to how we want to do affordable housing development that we think that warrants the state looking at how they distributed those 9% of what's different now there's a lot of politics and that sort of thing of course which I won't get into but I want to pretend to know them all but that has created one of the bigger challenges of us being able to do more so I'll give you an example a colleague of mine in Texas he has was able to get the state legislature to approve 9% tax deals with a large-scale plan that they have so that all the tax credit deals that they're going to do will actually be done for the El Paso housing authority because he had a very wide-ranging strategic plan in which to do that that has allowed him to convert all of their public housing into rat deals in a span of about four years and they have more than 6,000 units in El Paso so they were able to do more in less time than what we'll be able to do as a housing authority so it is possible there are other housing finance agencies that are being more creative in supporting large you know larger scale plans by housing authorities but our housing finance agency is not yet there you mentioned the 4% so we applied for 9% for the J. J. Henderson new construction last year we were unsuccessful in winning that award we came back to the city and asked is it possible to get additional support so that we can keep the rehab in that new construction on schedule to continue to move forward otherwise both projects would be delayed because they there's some integrated kind of site work and what have you to have to be done but when you don't get that 9% you are really essentially losing about half of the support you would normally get through that program if you have to go to a 4% I hope that was helpful thank you very much Anthony I wanted to highlight that colleagues because when I think about one of the things that we need to be putting on our legislative agenda hopefully we get a new legislature that we will this is the kind of thing that I think we need to be thinking about for our housing agenda so I wanted to just add that we have good friends at the Durham good friends at the housing finance agency board now but we need we need some different legislation to help us other questions or comments for mr. Scott all right thank you thank you Anthony for a great report it's exciting it's amazing what we'll be able to do the next 10 years and the mayor I don't know if you can hear me yes we can tell some of her go ahead I apologize I am in the car I just wanted to follow up and note as you were saying that the goals that were aligned in this project and in that project the NWBE goals around 30% and the local hiring goals I'm hoping that we're gonna also have conversations with staff about how we align along these lines of making sure that we're going the same thing which is in our within the city so that's what to make sure I raise that point I couldn't take that fast enough yes thank you for that if I could respond Mr. Mayor this is this is something that we as I mentioned we take very seriously we want to create a reporting out around that so at minimum on a quarterly basis we're going to be able to track how well we're doing on that that's something we're going to require of our development partners to make sure that it's not one of those at the end of the project you look back and go well we only hired three people or something like that we want to make sure that that is an ongoing reporting effort throughout and during the development itself thank you any more questions council member Caballero just out of curiosity are we going to be having these types of meetings more frequently I know there was conversation around that during the McDougal Terrace evacuation and I'm glad that we are doing this now and so just curious about kind of the the thoughts around that we were thinking about an annual meeting I'm making this an annual fair if we need more we can certainly do it okay thank you all right Dan I think it's back to you is that correct I'm not sure but thanks for the opportunity and I would love to see this done on an annual basis at least I think it's a good time for us to cool to report out to you and for you hear your questions and concerns and of course it can be done more quickly if you need it but yes thank you very much unless anybody else this is Anthony this is it right yes sir and unless they're some of our housing authority members may also have some comments that they want to make Dan I want to pass up that opportunity to be together and if any of them would like to I know that you know they may have some thoughts they want to offer sure I would encourage any of our or five members that are on today they have anything else I'd like to add not not seeing or hearing any you want to mention again we have our new member on board and thank you all for your appointment of Terrell he brings a strong financial background and unfortunately we lose George quick this fall so he's been our financial person and Terrell is there's a CPA and has done everything and then substantial amount of financial work so we want to make sure that thank you for that point I know we'll miss George and he was the person that negotiated the 100 year repayment of that loan we had a loan that was due in a very short period of time and George and Ms. Nottingham and and I will remember the George went over and negotiated a 100 year repayment I thought that was well done well thank you everybody Dan thank you for your leadership of the board and thank everybody on the Durham Housing Authority board it's a great board and you all are doing great things I'm just we're going to do this this is gonna happen and I'm so pleased about the cooperative relationship that we have and the way in which it's working out and thanks to my council colleagues for being so incredibly supportive of the Housing Authority also over the last few years I know we're gonna do great things together so Steve is one more thing I would just like to say it was an article last week in the independent about gentrification in downtown and I think another side of that could be what we're doing to prevent gentrification we're we did not do what some people thought we should have and sell this property downtown because of its value and move our residents into into the suburbs of our the outer parts of our community they were it was good enough for them to live downtown when things weren't good so now that they are we should not be moving our folks out and that was a commitment the board made and one that Anthony buys a hundred percent so we're increasing the availability of housing downtown rather than decreasing for people who are low-income and people who traditionally not been served so I'm proud of what we're doing in that respect and hopefully the independent will pick up on the positive aspects of that instead of looking at the negative aspect of what gentrification is doing in downtown area thanks yes agree and what we're doing on the Durham Housing Authority property and and a few of the other properties that the city owns near the bus station the old police headquarters and so forth is what is going to provide affordability downtown the Housing Authority is this property and what we're doing there through your work is what is going to keep downtown affordable for thousands of people so that's the only way to do it and I appreciate that very much Dan well thank you everybody I think we can adjourn and look forward to being together either in a year or whenever we feel it is necessary in the intervening period and so thank you very much thank you Anthony and thank you Reginald for your reports hi everybody thank you so much