Board packets will be distributed at the meeting.

Transcription

1 Community Development Corporation Board Meeting Notice TO: CDC Board Members Kyle Denbrook Mike Miller Colleen Walker, Treasurer Ray Velkers, Chair Scott Winship, Vice Chair Shari Bell - Beals, Secretary Gar Hansen Gary Hawkinson FROM: Bryan Schmid CDC BOARD MEETING FOR AUGUST 2018 A Regular Board meeting of the Community Development Corporation will be held TUESDAY, August 21, 2018 at 8:00 A.M. This meeting will be held at PIERCE COUNTY HUMAN SERVICES BUILDING, 3602 PACIFIC AVENUE, TACOMA, WA {Soundview Conference Room 1, 2nd floor). Board packets will be distributed at the meeting.

2 COMMUNITY DEVELOPMENT CORPORATION MEETING AGENDA August 21, 2018 Call to Order - Review and approve July 17, 2018 CDC Board meeting minutes: CDC Resolutions: CDC TCRA Housing Resolutions: H H H H Cote Neal Farrell Powell General CDC Business: June 2018 Financials and Vouchers August 2018 Late payment report Staff Updates: State Audit Future Business: Affordable housing applications September 2018 Public Comment Period: Adjourn

3 MINUTES OF THE COMMUNITY DEVELOPMENT CORPORATION BOARD OF DIRECTORS MEETING July 17, :00 a.m. The regular meeting of the Board of Directors of the Community Development Corporation was held at the Pierce County Human Services Soundview Building, 3602 Pacific Avenue, 2nd Floor, Soundview Conference Room 1. The meeting was called to order by Director Velkers, Chair, at 8:03 a.m. Those present were: Directors Velkers, Winship, Hansen, Walker, Hawkinson, Miller, and Bell-Beals Absent: Denbrook Staff in attendance were: Bryan Schmid, Sheree Clark, Lucy Newman, Laura Charbonneau, Shannon Shuman, and Robyn Lee Guests: None UNFINISHED BUSINESS Director Velkers, Chair, requested CDC Board Members review the minutes ofthe June 19th, 2018, meeting. With no questions Director Winship moved to approve the minutes, and the motion was seconded by Director Hawkinson. The vote was unanimous and the minutes were adopted. Staff noted an addition to the agenda, resolution CDC Staff presented the County's 1-Year Action Plan for HUD funds for the upcoming 2018 program year. The 2018 program year runs from July 1, 2018 to June 30, The CDC is the subrecipient ofthe County's HOME funds and carries out the HOME program on behalf of the County. The CDC is also a sub-recipient of CDBG funds for the owner rehab and business RLF's. In Program Year 2018 the HOME resources (grant/program income) are just over $2m. Staff reviewed the HOME program allocations between Owner Rehab, Affordable Housing Development and CHDO. Staff covered the CDBG Resources of $BOOK (generated from the NSP Transfer), and an estimated $130K in program income from the owner rehab RLF. As the subrecipient the CDC must follow the allocations in the Action Plan. This presentation did not include Business. Board: Do you think your numbers are realistic? Staff: Yes, however the numbers for Program Income are a projection. The CDC received more Pl than projected last year. Staff presented figures more on the conservative side.

4 NEW BUSINESS CDC Resolutions: Resolution CDC was presented for approval to authorize transferring $800,000 in the NSP fund balance to the County1s CDBG program to be used for the CDC1s CDBG owner rehabilitation revolving loan fund. The purpose of the NSP was to assist in alleviating the foreclosure crisis. The grant was closed out in In 2017, the County contracted with the CDC to provide $800,000 of CDBG funding generated from the NSP transfer to recapitalize the CDBG Owner Rehab Revolving Loan Fund and to cover HOME administrative expenses. With no questions from the Board, the resolution was moved to approve by Director Walker and seconded by Director Winship. Vote was unanimous, motion carried, and resolution was adopted. Resolution CDC authorizing the CDC to increase the maximum Down payment Assistance loan in the Tallentire mixed income homeownership project to $120,000. The CDC Board commenced discussion and questions asked included: What is the structure of the loans? Deferred for 30 years. What was last sale price? $340K. Where did they start? In 2016 we projected price points in the mid s. How many units? Upon completion six low income buyers will receive downpayment assistance. With no further questions from the Board, the resolution was moved to approve by Director Bell-Beals and seconded by Director Hawkinson. Vote was unanimous, motion carried, and resolution was adopted. CDC Housing Resolutions: Resolution H was presented for approval of authorization to foreclose on a housing rehabilitation loan through the HOME program. The CDC Board commenced discussion and questions asked included: Has someone done a drive by? Staff indicated that no drive by had occurred yet but staff would make a site visit soon. With no further questions from the Board, the resolution was moved to approve by Director Miller and seconded by Director Bell-Beals. Vote was unanimous, motion carried, and resolution was adopted. Resolution H was presented for approval for a subordination of a $5,000 HOME loan under the Down Payment Assistance Program. The CDC Board commenced discussion and questions asked included: Would a mortgage lender explain reverse mortgage? A reverse mortgage is a HUD FHA insured loan that allows seniors over 62 to borrower against the equity in their home. The reverse mortgage has interest but no monthly payments. The loan balance goes up over time. They can use the equity to take payments, or monthly draws. The loan is paid at the time home is sold. It is basically a life estate with monthly income, stipend, or onetime payment. In this case they are paying off the first mortgage only. Why would they want to do that? They received a settlement and want to reduce monthly expenses. We are allowing them to do a reverse mortgage up to the $130k. Why aren't they just paying it off? They don 1 t have enough funds to pay off all the loans and they do not have enough equity to pay off the first mortgage and the CDC. With no further questions from the Board, the resolution was moved to approve by Director Bell-Beals and seconded by Director Hawkinson. Vote was unanimous, motion carried, and resolution was adopted.

5 GENERAL CDC BUSINESS: Staff reviewed the May 2018 Financials and Vouchers with the Board. The CDC Board commenced discussion and questions asked included: Board questioned the two NSP Transfers, understood it to be all at once? Last year CDC received approval for the $SOOK transfer. With the CDBG Timeliness requirement, the CDC transferred $400k last Sept and $400k in May. HUD indicated recently that it requires for one lump sum transfer. What is $35K to the County? It is the County share of the HOME program income admin. HOME has an allowance for ad min? We receive some entitlement grant, then majority is from the NSP transfer. So why don't numbers equal for expenses? Staff pointed out that the numbers did not transfer over (calculation error). With no further questions from the Board, the May 2018 financial statements and vouchers were moved to approve by Director Winship and seconded by Director Bell-Beals. The vote was unanimous, motion carried, and adopted. May/June 2018 Late payment report and CDC legal matters were reviewed by staff. STAFF UPDATES: State Audit entrance conference occurred. This will be a single audit of CDBG of homeowner rehab funds and operating procedures. When do they expect to be done? They anticipate being done by the end of July. They exit conference will be in August. TCRA Contract, our contract is expired and staff is still working on tailoring a new agreement. Septic Repair Contract, this contract is expired and no longer doing loans for CDC may have enough funds to do a couple of loans in Are there costs built into these loans? The SRLG are primarily for owners that are over income and do not qualify for HUD funded owner rehab programs. FUTURE BUSINESS: TCRA - August 2018 Affordable housing applications released on Friday, due in August, and presented in September 2018 PUBLIC COMMENT: No public comments ADJOURN There being no further business, the regular meeting was a motioned to adjourn by Director Hawkinson and seconded by Director Miller. The next meeting being Tuesday, August 21 5 \ The meeting was adjourned at 9:03 a.m.

6 Certified by: Board Chair Date Secretary Date Prepared by: Robyn Lee