Louisville Housing Authority Agenda and Packet 2012 04 24

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Discussion of LHA Portfolio Analysis April 24th Louisville City Council Study Session at the Louisville Library at 7:00pm Terri said that the LHA Board will be presenting the letter to the City Council tt their annual Study Session. Heather said that they will have a Council communication that includes the letter from LHA regarding transferring assets and liabilities to BCHA. LHA will do the due diligence; bring forward an IGA, and the necessary work that needs to be done in order to move forward. The S.B. Clark report and the recent minutes will be included in the study session packet. Frank said that if everything goes well in the study session, we will go to Council in May. Frank and Terri will be at the study session. Terri will present the letter, the portfolio analysis and background, and the section of the minutes that show the input that we have had. Walt is concerned that our residents won't have a scheduled meeting where they can come and express their concerns. Frank said that board meetings, on site, are a much more effective and useful way to get resident input than board meetings. People get resident packets and we post contact posters in every site which include management, maintenance, and senior resource coordinator information. We can put a proposal together that we think will meet those needs. During the transition period, we will have a Louisville residents meetings. We can lay out the Advisory Board's contact, Willa's contact, and hold some meetings to manage expectations and explain the process. Walt said he is also concerned about the financial value of the properties. These properties have been in Louisville a long time and the value of the land has appreciated. Frank said that in terms of value, you have permanent affordability covenants, the principles of recapitalization and unaddressed rehab needs, the requirements that all of the funding entities have on those properties, and the longer term downward trend of depreciating assets that need to be kept up. We have talked about a baseline number of units and then BCHA committing to an additional expansion of some units. The framework we hope to stay within is that we have a mission purpose for combining the Authorities and the principles will be spelled out in the IGA, including the commitments Louisville is getting to maintain the permanent affordable stock, and some increment of new affordable housing beyond that. You can't compare an unrestricted disposition of real estate to a maintaining of an affordable housing stock. As you've seen, there are some sites that really need some significant rehab, in addition to the refinancing that's required. The LHA is in a base situation where the value in the portfolio is needed to maintain its affordability going forward and bring its quality of rehab up to a level over time, so that the properties can be maintained on- going. 3