City Council Study Session Summary 2012 05 08

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City Council Study Session Summary May 8, 2012 Page 2 of 7 Call to Order— The meeting was called to order at 7:00 PM by Mayor Muckle. Discussion with Louisville Housing Authority (LHA) Consideration of LHA Consolidation with Boulder County Housing Authority (BCHA) The LHA and BCHA met with City Council for the second time to discuss in further detail the consideration of consolidation. Deputy City Manager opened the discussion and asked Council if they had any questions. Councilmember Loo asked the question about what is the value of the Louisville portfolio? This began a discussion about value of assets in the LHA, and that housing units are valued on an income approach and most all of the housing units, with the exception of Acme Place, have restrictions placed on them so they aren't appraised like normal real estate. Mayor Muckle expressed his view that in order to expand affordable housing units in Louisville the City would need to be a part of a larger portfolio. The LHA and BCHA went on to explain that the LHA could remain as they are but there is no cash in the Louisville portfolio. There is also a need to get the terms of LHA housing loans in order. If refinancing is an option, then it's beneficial to be a part of a larger portfolio to get better loan terms. By consolidating, overhead and per unit maintenance costs are reduced. The LHA is at a crossroads. BCHA will be refinancing a whole host of their portfolio and it's a good opportunity for Louisville assets to be included. Councilmember Yarnell inquired about Acme Place and what the possibilities are that this property would be put up for sale if the Housing Authorities consolidated? The BCHA indicated that if this property did sell, then it would be replaced with a minimum of 4 units. Acme Place is the only LHA property that could be sold because this property doesn't have any restrictions. There is a commitment from BCHA that the total number of Louisville units would not drop below 116 and there would be forecasted growth of about 15 %. The goal here is to make the Louisville properties healthier. Terri Abbott, LHA Chair, said that maintaining the status quo is not possible for the LHA. Walt Oehlkers, LHA member, voiced his concerns about the consolidation and senior - friendly housing. Currently, when a resident has an issue or concern they know who to contact in Louisville, residents and /or families are able to attend an LHA meeting to express their concerns, but where would they turn if LHA no longer existed? Mr. Oehlkers mentioned that Regal Square and Lydia Morgan are senior - friendly, and future housing needs to be senior - friendly. He also stated there is a need to duplicate a property like Lydia Morgan, but on what land?