Louisville Housing Authority Agenda and Packet 2012 06 26

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Louisville Housing Authority BOARD MEMO Date: June 12, 2012 To: Board of Commissioners From: Frank Alexander, Executive Director Re: Board Report for June 26, 2012 Meeting April Financials See attached. Intergovernmental Agreement Status LHA has engaged Amber Hunter to review the draft intergovernmental agreement (IGA) on its behalf. The first draft of the IGA (IGA) has been circulated to the legal counsel for LHA, and the City of Louisville. Each has reviewed the draft and has met with BCHA's counsel to iron out details. A second version of the IGA will be circulated soon to each of the parties, and it is expected that the parties will move forward toward a final version during the month of July. Several of the transactions contemplated in the IGA require the consent of various third parties (e.g. HUD, investors, and lenders), and LHA's counsel has requested that BCHA begin obtaining such consents as soon as possible. BCHA believes that negotiations on the IGA have progressed to a point where it is comfortable pursing such consents, and therefore BCHA has begun to seek the necessary consents. Public Housing Disposition Application Despite HUD's indication that a full Public Housing Disposition Process will likely be required, LHA and BCHA's counsel may pursue one possible alternative that was suggested by LHA's counsel. However, because the Public Housing Disposition process is a lengthy process and because it is important that staff be able to move quickly to initiate the process if it is necessary, the LHA Board will be asked to pass a resolution authorizing the LHA Board Chair to sign documents related to an application to HUD for the disposition of LHA's Public Housing stock. Property Management update As of June 18, 2012 there are currently a total of 4 vacancies in Louisville. 3 units at Lydia Morgan and one at Regal 2. The Regal 2 unit, 1888 -C, has already seen a lot of interest and should be leased by July 1. 2 of the Lydia units gave 30 -days notice and we anticipate both units being leased up by July 1. The r1 unit did not give a 30 -day notice, so is being charged rent through June 30. That unit should be leased up by mid -July. Victoria Collins, the new Louisville Property Manager, started May 14 and has already met many residents and has been holding office hours at Lydia Morgan 2 '/2 days per week. We will be re- instating the Resident meetings at both Lydia Morgan and Regal Square in July (Lydia Morgan) and August (Regal Square). Lydia Morgan — Exit update LHA has now officially bought out the two limited partners in Lincoln Street Elderly Limited Partnership ( "LSELP "), JPMorgan Chase and Enterprise Community Partners. Thus, as of 31 May 2012, the two partners in LSELP are LHA and LHC. The next three steps in the Year 15 restructuring are transfer of title from LSELP to LHA, dissolution of LSELP, and dissolution of LHC. All these steps have already been authorized by all relevant parties. We anticipate completing all of these remaining transactions prior to the 26 Jun 2012 LHA Board meeting. Attachments: May Financial Statements 6