Louisville Housing Authority Agenda and Packet 2012 04 24

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Our proposal to deal with that is to bring a semblance from a variety of valuations of a number and to show that the Authority's commitment to an additional increment of the units exceeds that valuation. To maintain your 116 units, if the Authority is going to commit to an expansion of units beyond that, regardless of whether we go into micro- detail on the valuation or not, the unit commitment would exceed that valuation. We wouldn't need to go into expending an enormous amount on each rehab piece that was needed on each property currently. The deeper dives into the unaddressed capital needs will all decrease valuation. We will also be spending a lot of money right now on appraisals, rehab criteria and expenditures that we don't want to do until each unit is being recapitalized. You need all of that due diligence work done as the transaction of each property occurs. Terri said that we need to assure the average resident that we are not giving property to the county, handing over a gift that you are going to exploit and gain lots of cash on, leaving us with no units in Louisville. Frank replied that BCHA will maintain the Louisville units and would be able to exceed that number of units; which we would not be able to do independently. We are gaining, by having more affordable units. Walt asked about disposition of properties. Frank said that the only thing in the portfolio that you could possibly sell is, the 4 -unit Acme Place. You have 17 units at Sunnyside, 30 units at Lydia Morgan and 30 units at Regal Square. The only time you would consider selling Acme would be if you were going to move into a larger acquisition or development. There may come a time when it makes more sense to sell Acme and put that money into a larger property. But there have been no discussions or plans at the LHA to do that. There has to be a common understanding that the overall business trajectory, the requirements of the authority as they exist now and for the next 15 years, requires a strategic decision. We are mission -based and committed to stabilizing, maintaining permanent affordability, and supporting the residents with services in a way that you will hold the BCH4 accountable. Jay said he would want a time frame in the IGA that any unit sold would have to be replaced within a certain period of time. Also, units would have to be provided for the residents during the interim time. Jeremy said it is already in the draft that the baseline level is 116 units. In the event it dips below that number, replacement units would be provided in a finite time. We are going to maintain the baseline. Frank said we all know what the existing rental stock looks like in Louisville. Development is difficult, in Louisville. There are not a lot of land opportunities. Once we complete the transactions, stabilize the properties, and put a lot of work and dollars into them (a lot of that has been deferred and requires some significant work) we have to bring money to the table to add units. Those are the things we are going to have to do on a project by project basis, based on when the recapitalization happens. In the long term, we clearly need to revisit land and site acquisition pieces whenever possible, to see if there is a way to produce more affordable housing. But those future tasks require additional funds. Review and Approval of LHA consolidation letter to City Council The board discussed revisions to the original draft letter to City Council. 4