City Council Study Session Agenda and Packet 2012 05 08

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COUNCIL COMMUNICATION TO: MAYOR AND CITY COUNCIL FROM: MALCOLM FLEMING, CITY MANAGER DATE: MAY 8, 2012 SUBJECT: DISCUSSION WITH LOUISVILLE HOUSING AUTHORITY (LHA) - CONSIDERATION OF LHA CONSOLIDATION WITH BOULDER COUNTY HOUSING AUTHORITY ORIGINATING DEPARTMENT: CITY MANAGER'S OFFICE SUMMARY: At the April 24 Study Session, City Council met with the LHA Board to discuss the potential for consolidation with the Boulder County Housing Authority (BCHA). A number of questions were raised and discussed. In response, LHA Board members, City and BCHA staff wanted to provide some additional information. Below is a brief recap of LHA and their structure, BCHA and their structure, the long -term relationship among the two entities, additional information on consolidation, a recap of the fiscal status of LHA and how a consolidation and transfer of assets might be achieved. Who is LHA? Louisville Housing Authority is a quasi - governmental agency created by state statute to respond to the housing needs within Louisville. LHA's governing Board of Commissioners is made up of five Louisville residents appointed by the Louisville City Council. LHA has 116 units and no staff. Who is BCHA? BCHA is a quasi - governmental agency created by state statute to respond to the housing needs within Boulder County. BCHA's governing Board of Commissioners is the County Commissioners, who are elected by the citizens of Boulder County. BCHA is organized within the County government as a component unit of the Housing and Human Services Division. Frank Alexander serves as the Director of that division, as well as the Executive Director of BCHA. As an entity, BCHA has over 60 staff, a portfolio of 428 units (including Josephine Commons, which will be complete in August), 770 Section 8 Vouchers used in the private market, a weatherization program that provides energy conservation services to low income homeowners, and a development division that acquires and builds new affordable housing. As part of the Housing and Human Services (HHS) division, BCHA is closely linked to County -wide safety net services, including child welfare, and self - sufficiency services such as food stamps, Colorado Works, and Medicaid. HHS has an integrated services model, in which staff are coordinating across departments to ensure the best outcomes and most efficient use of resources for all clients utilizing Housing and Human Services resources. This has increased government efficiency and reduced cost to the taxpayer since its implementation in 2009. What is the current relationship between the two organizations? BCHA has served as the manager for LHA's properties and programs for decades. The terms are codified in a management fee agreement, which is updated every three years. The last agreement was adopted in September 2010. The negotiated management fee covers the true costs to BCHA to provide all property management services required to run LHA sites, and it acknowledges that LHA also SUBJECT DISCUSSION WITH LOUISVILLE HOUSING AUTHORITY (LHA) - CONSIDERATION OF LHA CONSOLIDATION WITH BOULDER COUNTY HOUSING AUTHORITY AGENDA ITEM 11 2