March 28, 2023 Board Meeting Minutes

THE HOUSING AUTHORITY OF THE CITY OF SOUTH BEND, INDIANA
REGULAR BOARD MEETING MINUTES
5OI Alonzo Watson Drive
South Bend IN 46601
March 28, 2023 @ 9 a.m.

• CALL TO ORDER:
  Commissioner Calvin called the meeting to order 9:00 a.m.
  
  
• ROLL CALL: (All via zoom)
  Commissioner Stephen Luecke, Commissioner Chamblee, Commissioner Daniel, Commissioner McNally.
  
  
• HASBSTAFF:
  Dr. Catherine Lamberg Executive Director, Ms. Lori Wallace, Director of HCV; Mr. Andy Delaney, CFO; Ms. Pamela Rogers, Administrative Assistant to Executive Director/Board Secretary
  
  
• OTHERS:
  Attorney J. Harris Jr
  
  
• PUBLIC COMMENTS:
  None
  
  
• OLD BUSINESS:
  Approval of Minutes from the regular Board Meeting on February 28, 2023.
  
  Commissioner McNally moved and Commissioner Chamblee seconded the motion to approve the minutes.
  
  
  • Commissioner Luecke AYE
  • Commissioner Chamblee ABSTAIN
  • Commissioner Daniel AYE
  • Commissioner McNally AYE
    
    
• NEW BUSINESS:
  None
  
  
• EXECUTIVE DIRECTOR REPORT:
  
  
• RESIDENT INITIATIVES:
  Dr. Lamberg spoke on our resident service activities we continue with our after-school programs at the community centers at LaSalle Landing and Harbor Homes with Gentlemen and Scholars. The staff of HASB made a donation of men's neck ties to Gentleman and Scholars. They utilized this to teach the youths how to tie a tie. This was a part of the Passport to Manhood training which included our LaSalle Landing children.
  
  
• FSS
  Dr. Lamberg stated that there are 62 participants enrolled in the program, 49 from HCV, 13 from Public Housing, 32 with escrow accounts with a total of %53,341.86 as a total amount in the escrow account.
  
  

• ADMINISTRATION REPORT:
  
  Human Resource
  Pamela stated that we did confirm that the HASB did renew the commercial and Liability insurance with HAI insurance company. The price of the insurance did go up primarily because of the way HAI structured our building. Last year they bundled many of the properties together and this year each property was noted individually so that each unit is insured as an individual address, hence the increase of premiums.
  
  Dr Lamberg also added to help keep the cost as low as possible, the HASB did raise the deductible in some areas from $15,000 to $25,000. We also talked to the insurance company to ask at what point the HASB realized a reduction in premiums, and historically it takes 5 years of no claims for that to happen.
  
  Commissioner Chamblee asked how much of an insurance did the price go up and if you have one claim on the properties will that claim cause the entire year to fail for the year.
  
  Dr Lamberg stated that the price raised roughly $100,000 and because of a rule to unbundle our addresses was to their advantage. The potential savings in the future for having no claims in 5 years would go against the total policy and not on a per address basis.
  
  Commissioner McNally asked was the increase on the property side or liability. Dr Lamberg said strictly property basically because of the unbundling.
  
  Commissioner McNally asked if we have a deductible on the liability side. Dr Lamberg stated we do around $15,000.00.
  
  Commissioner Luecke asked if we had the amount of savings because of the increase of the deductible.
  
  Dr Lamberg said we do and will send it out to the board.
  
  Pamela continued by saying that we currently hired two new employees one in maintenance and one in HCV.

• LOW INCOME PUBLIC HOUSING {LIPH):
  Dr Lamberg noted that PH had 1762 on the waiting list and the unit turnaround was 10 days. She gave the breakout on a per unit basis.

  Commissioner McNally asked if the units considered under the vacancy reduction quoted in the occupied or the vacancy column?
  
  Dr. Lamberg said in the vacancy column, we will only be doing vacancy reduction on the vacant units. We received notification of our 2023 allocation of capital fund (although allocated it has not been released) and we are waiting for the upload. In the meantime, we have had a meeting with the staff and will have a meeting with the residents in April and May.

  Commissioner Luecke said we had a meeting with the city about some CDBG grant dollars that has been targeted, can it potentially be used for vacancy reduction?
  
  Dr Lamberg said that the CDBG was allocated for a specific project, and they have to make an amendment to that allocation. The larger amount is targeted for Monroe Circle, they have to amend that award before we can start using it in vacancy reduction.

  Commissioner Luecke asked did we have to provide them with any additional information. Commissioner Chamblee asked if they gave HASB the rules to make that change?
  
  Commissioner Luecke said yes in fact they actually requested the meeting to talk about it because they are going to bring some other dollars for Monroe Circle
  
  Dr. Lamberg said, yes, I will send them an email with the information. It was their suggestion for two allocations, one for CDBG for South Bend Avenue and we didn't use all the money that was allocated, and we asked that the balance be moved to the other property. And then the allocation for Monroe Circle, they suggest that it not be used for that site but that it stay with the housing authority and used for other purposes, and we suggested the vacancy reduction.
  
  Commissioner Chamblee asked how long had the South Bend Ave development been painted in multiple colors? I go down that street daily and notice it and it is quite impressive.
  
  Dr Lamberg stated that was beautiful new siding. And the allocation of CDBG the city provided was for new siding, new roofs, new entry doors, new storm doors and locks. We discontinued city trash pickup because the entry access to the development was so tight and it eliminated the trash cans being out front, we have a dumpster at.the site. We are pleased with it and get complement on it.
  
  Commissioner McNally asked if there is a unit in great shape, but the furnace is 30 years old is there a priority in replacing that furnace, vs rehabbing a unit that needs to be completely gutted. Dr Lamberg said yes, as we are going through the capital planning process, those are exactly the things we are looking at. Dr Lamberg went over the charts on pages 15 and 16 pertaining to the work order, rent collection and Capital expenditures grants.
  
  Commissioner Daniel asked in dealing with changing of the locks at the development, can the tenant duplicate the keys.
  
  Dr. Lamberg said that they could not duplicate the keys that are being installed. From a safety standpoint there were many keys floating around. We have a lock box system and even the maintenance have to check out the keys. Management has master keys, and the tenant has individual keys. And if a key is lost, we have the ability to duplicate the keys.
  
  Commissioner Luecke asked how many keys the tenants are given.
  
  Dr Lamberg said it depends on the size of the household. If it is two adults, then we can issue two keys. I don't believe we issue more than two keys to a unit.

• HOUSING CHOICE VOUCHER PROGRAM (HCVP):
  Ms. Wallace advised that in February 2023 we served 2239 households. 84 VASH veterans, 44 FSS, 10 emergency housing vouchers, 12 foster youth, 9 port in, 29 port outs, 44 relocations.
  
  Commissioner Daniel asked for more information on port in and port out.
  
  Ms. Wallace said port in are people that are moving into our jurisdiction from other jurisdiction and port out are those moving out of our jurisdiction.

  Commissioner Luecke asked if vouchers were geographically constrained.
  
  Ms. Wallace said that is correct, after the initial year term they can take their voucher wherever they want. She continued with information of 305 inspection which consisted of 64 initial inspections, 23 reinspection, 137 annual inspections, 57 reinspection's, 12 abatement, 4 special inspections. And the highlights are the new hire, retirement of Mrs. Spainhower, 2023 waitlist opened and closed successfully, 3250 prescreening applications received, and review is underway.
  
  Dr Lamberg said we did issue an RFP for project base vouchers. Hud allows up to 20% for project base.
  
  Ms. Wallace also noted that we are now started issuing biannual letter to those landlords who have passed two annual inspections in a row. We started that late last year back in August and first letter issuances in December. We wanted to make sure that we had two inspections done by our third-party inspector. That rewards good landlord and also cost savings to the HASB.

• FINANCIALS:
  Mr. Delaney started off going through each of the AMPS individually and reviewing the numbers. Operating subsidy is higher than the budget because it's a fiscal year and we just gotten operating submission so the new submission will come out next month because of the fiscal year. Administrative salaries are lower than budgets that is because of less staff allocated to administrative in AMP 1 and then explained this for each AMP. There is a focus on AMP 3 and 4 verses on AMPS 1 & 2 in last year therefore maintenance charges will be lower than budget in amp 1 & 2 this year. We haven't drawn down on any capital funds.
  
  Commissioner Luecke asked when we find that we find tenants that don't report their full income that we are trying to recover those dollars that should have been paid.
  
  Dr Lamberg said we run a report out of HUDS EIV (employment income verification) system, if you have any income that is associated with your social security number it is reported there.
  
  According to that report the system compare what we report from our tenants compared to what is being reported to the federal government. Administratively it is a lot, however we are reviewing this. We are also going through file vision which entails the agency to go paperless.
  
  Commissioner Luecke asked if there is enough revenue potential to hire a staff person to focus solely on this.
  
  Dr Lamberg said yes because we can retrieve the money that is owed, but no because it is 46% of our tenants. What we find when we go through the process, the tenant elects to terminate the program as opposed to paying what they owe. The potential to lose 46% off both programs is too much. Dr. Lamberg also wanted to advise that the auditor are here and doing the compliance portion of the audit. Once they finish with the onsite portion they go back and do the remote portion for the completion of our audit.
  
  Mr. Delaney said the due date from Hud is June 2023, however the auditors' goal is to finish by April 30 but we anticipate May so we will be finished a month ahead.

• DEVELOPMENT:
  Dr. Lamberg said we continue to access the utility disconnect at Monroe Circle for pre demolition purposes. Initially I anticipated that an RFP would be done in April, but with the city's gracious offer to cover that activity and expense so that will push it back a little, probably in May.
  
  Attorney Harris asked if there was a MOU between the city and HASB for that activity? He recommends that you do it because it will be a state board issue on their end.
  
  Dr Lamberg said we have not solidified that relationship but will work on it.
  
  Commissioner Luecke asked although Monroe Circle will be demolished, they want to hold off on the demolition of Rabbi Shulman until we have a plan in place for the rebuilding?
  
  Dr. Lamberg said that's correct, and we agree. We intentionally boarded up the building internally, so the plywood isn't showing outside and look abandoned. We keep up the exterior landscaping so its not an eyesore on Western Ave. We also issued an RFP for a grant writer for the CNI Grant in advance of the insurance of the NOFO for 2023 with plans to submit a planning or implementation grant application.

• BOARD COMMENTS:
  Commissioner Daniel wanted to thank the HASB for showing her some of the locations of the Developments. She also wanted to share that she is learning more about the operations and the HASE and that she appreciates the hard work done by the staff.
  
  Commissioner Chamblee said thanks.
  
  Commissioner McNally said thanks for all your efforts. The meeting was adjourned and seconded.