11-10-10

HOUSING AUTHORITY OF THE CITY AND COUNTY OF SAN FRANCISCO Minutes of Commission Meeting Thursday, November 10, 2010

440 Turk Street San Francisco, California

A Regular meeting of the Housing Authority Commission of the City and County of San Francisco met at 440 Turk Street, San Francisco, California, on Thursday, November 10, 2010, at 4:00 p.m.

Vice President Gans called the meeting to order at 4:05 p.m.

There was a technical error during the recording of this meeting.

1.

ROLL CALL PRESENT:

Rev. Amos Brown, President Neola Gans,Vice President Jane Hsu, Commissioner Dr. Veronica Hunnicutt, Commissioner Ahsha Safai, Commissioner Matthew Schwartz, Commissioner Dwayne Jones, Commissioner

NOT PRESENT:

A quorum was present.

ALSO PRESENT:

2.

Henry Alvarez III, Secretary Mr. Roger Crawford, Special Assistant to the Executive Director

APPROVAL OF AGENDA Vice President Gans motioned to approve the agenda. Commissioner Hunnicutt seconded the motion. The agenda was approved unanimously.

3.

GENERAL COMMUNICATIONS/ REPORT OF SECRETARY Henry Alvarez, Secretary informed the Commission that they could find routine SFHA correspondence as well as correspondence from the Department of Housing and Urban Development.

Commission Meeting Minutes November 10, 2010 Page 2 4.

COMMITTEE REPORTS There were no Committee Reports.

5.

REPORT OF GENERAL COUNSEL Mr. Roger Crawford, General Counsel informed the Commission that there would be a closed session to discuss labor negotiations and pending litigation.

6.

TENANT REPRESENTATIVE REPORT Dorothy Ramey, President of City-Wide Council Senior Disabled (“CCSD”) reported on several issues including finalizing the CCSD MOU, credit card update and a CCSD Christmas event.

Joyce Armstrong reported for the Public Housing Tenants Association. She informed the Commission on items surrounding public housing boards, finances and upcoming events.

7.

PUBLIC COMMENT ON AGENDA ITEMS Public Comments were heard by the following: There were no public comments

8.

UNFINISHED BUSINESS There was no unfinished business.

9.

NEW BUSINESS A. CONSENT AGENDA B. CONSENT AGENDA NOTE: All matters listed hereunder constitute a Consent Agenda, are considered to be routine by the SFHA Board and will be acted upon by a single vote of the Board.

There will be no separate discussion of these items unless a member of the SFHA Board so request, in which event the matter shall be removed from the Consent Agenda and considered as a separate item.

1. Approval of Minutes for September 8, 2010 Commission Meeting 2. [Payment To Unigard Insurance Company for 2010-2011 Fleet Insurance in an amount not-to-exceed $154, 219]; Consideration and Approval. Presented by Tim Larsen, General Counsel.

Commission Meeting Minutes November 10, 2010 Page 3 Commissioner Schwartz motioned to approve the Consent Agenda. Commissioner Jones seconded the motion. The Consent Agenda was approved unanimously.

C. ACTION ITEMS 1. [Memorandum of Understanding By and Among the SFHA and Acting By and Through the City and County of San Francisco, the Mayor‟s Office of Housing and the Redevelopment Agency for the Proposed Revitalization of Hunters View]; Barbara Smith, HD/MOD Administrator presented this Item. The MOU affirms

that Redevelopment Agency of the City and County of San Francisco (Agency), the Mayor’s Office of Housing (MOH) and the San Francisco Housing Authority (Authority), seek to pursue the revitalization of Hunters View pursuant to the principles and goals of HOPE SF, including replacement of all 267 public housing units with a mix of public housing ACC subsidized units and Section 8 Project Based Voucher subsidized units. The MOU also spells out the roles, responsibilities and commitments of the lead City agencies that are carrying out this ambitious redevelopment effort.

Since May of 2007, the Agency has provided development and entitlement project management, executed a Disposition and Development Agreement for its 1.65 acre adjacent parcel of land, and approved over $15 M in predevelopment, construction and master planning funds.

MOH has committed funding of over $18 M and the Authority has managed Phase 1 relocation, committed Phase 1 land (in the form of ground leases) and provided $8 M in funding.

Roles and responsibilities under the MOU include: (1) Authority – land (ground lease for rental housing and fee simple for infrastructure and for sale housing), financing and collaboration on funding applications, property management( of existing units), seeking HUD approvals, outreach for engagement for residents and ongoing ACC and Section 8 subsidies; (2) SFRA – land (fee simple), financing, project management, and contract and workforce compliance; and MOH – financing and resident services development and coordination.

Vice President Gans motioned to approve this Resolution. Commissioner Hunnicutt seconded the motion. This Resolution was approved unanimously.

2. [Application for HOPE VI Revitalization Grant for Hunters View];

Commission Meeting Minutes November 10, 2010 Page 4 Barbara Smith, HD/MOD Administrator presented this Resolution. On August 25, 2010, the U.S. Department of Housing and Urban Development (“HUD”) issued a notice of funding availability for the FY2010 HOPE VI Revitalization Grant Program (“HOPE VI”). The SFHA will submit an application in response to HOPE VI in order to meet the deadline for submission of the application is November 22, 2010

The SFHA and the Developer have also made significant progress by executing the terms and conditions in the Master Development Agreement for all three project phases, and beginning Phase 2 DDA negotiations for the Hunters View Project. The current revitalization plan for Phase 2 includes: the demolition of the existing public housing units; construction of 103 replacement public housing units (comprised of 69 public housing ACC subsidized units and 34 Section 8 Project Based Vouchers) and 34 non-Public Housing Low Income Housing Tax Credit units; development of 130 Homeownership Units of which 15% will be affordable Homeownership units; and construction of a community building which will include the property management offices.

Commissioner Hunnicutt motioned to approve this Resolution. Vice President Gans seconded the motion. This motion was approved unanimously.

3. [Contract With Berman Hopkins Wright & Laham, CPAS And Associates, LLP To Provide Annual Independent Auditing And Related Financial Services in an amount not to exceed $540, 000]; Vir Chua, Accounting Manager presented this Resolution. The SFHA is required by the U.S. Department of Housing and Urban Development (“HUD”) to conduct yearly independent audits in accordance with the generally accepted auditing standards.

Solicitation 10-710-RFP-049 was circulated on July 8, 2010. A total of seven (7) CPA firms submitted written proposals to the SFHA by the August 9, 2010 closing date. Berman Hopkins was determined to be the best and top-rated firm. Berman Hopkins has agreed to hire public housing and Section 8 residents in order to meet the SFHA’s goal of providing employment or training opportunities to residents.

Berman Hopkins strongly supports the concept of minority/women owned businesses and has subcontracted 10% of the contract with a woman-owned sub-consultant to assist in the SFHA audit.

The independent auditor will test, review and report on San Francisco Housing Authority’s (“SFHA”) internal controls, compliance with applicable laws and regulations on all major programs, and will audit the SFHA’s accounts, records and general purpose financial statements for the twelve (12) month periods ending September 30, 2010 and September 30, 201.

Vice President Gans motioned to approve this Resolution. Commissioner Hunnicutt seconded the motion. This Resolution was approved unanimously.

4. [Two-Year Contract With CSG Advisors to Provide Financial Advisory Services On An As-Needed, Task Assignment Basis, for Selected Developments In an Amount Not-To-Exceed $150, 000];

Commission Meeting Minutes November 10, 2010 Page 5 Barbara Smith, HD/MOD Administrator presented this Resolution. The San Francisco Housing Authority (“SFHA”) requires a firm to provide the SFHA with specialized Financial Advisory Services for the next two years on an asneeded, task assignment basis. Solicitation No: 10-620-RFP-036 was issued on August 18, 2010. Proposals were received from two firms by the September 14, 2010 due date. By their scoring and ranking, the Evaluation Panel determined that “CSG Advisors” was the top-rated firm. The firm is highly regarded nationally and has extensive experience assisting public housing authorities with complex financial projections for HUD’s CFFP, ESCO, and HOPE VI programs as well as for LIHTC development projects. CSG also has extensive experience with similar transactions for affordable housing developments and other public agencies. Reference checks on the firm produced no negative comments and the firm is not on the Federal Excluded Parties List. Selection of a firm under this Request for Proposal (“RFP”) shall in no way commit the SFHA to proceed with the any of the aforementioned transactions without Commission authorizations.

Commissioner Schwartz motioned to approve this Resolution. Commissioner Jones seconded the motion. This Resolution was approved unanimously.

5. [Expense of Uncollectible Tenant Accounts Receivables (“„TARS”) for the Fiscal Year Ending on September 30, 2010 in the Amount of $1, 031, 954]; Vir Chua, Accounting Manager presented this Resolution. The Department of Housing and Urban Development (“HUD”) requires that the San Francisco Housing Authority (“SFHA”) expense the Tenant Accounts Receivable (“TAR”) that are not legally collectible. TARs are balances owed to the SFHA for nonpayment of rent and/or other charges by tenants that no longer reside in their housing unit, or are uncollectible according to California law.

The expensing (“write-off”) of uncollectible TARs expenses the uncollectible balances and correctly moves them to the balance sheet according to Generally Accepted Accounting Principles (“GAAP”). The effect of this accounting practice is displayed in the attached Profit and Loss (“P&L”) and Balance Sheet Statements.

Vice President Gans motioned to approve this Resolution. Commissioner Schwartz seconded the motion. This Resolution was approved unanimously.

6. [Three-Year Contract with Firms/Attorneys for Services To Be Provided On An As Needed Basis in an Amount Not To Exceed $195, 000 Per Year]; Presented by Tim Larsen, General Counsel. The SFHA issued a Request for Proposal on April 26, 2010. The purpose of this solicitation was to obtain a list of pre-qualified law firms and solo practitioners who can provide legal services to the agency on an as-needed basis. The firms/attorneys selected will provide legal services on a number of matters including: Labor/Personnel, Construction/real estate, Civil rights/Constitutional law, Administrative law, Appellate, Tort law, General civil litigation, Public sector law, and Affordable housing law.

Commission Meeting Minutes November 10, 2010 Page 6 Fourteen written submissions were evaluated and scored by a five-member review panel. Using a range of 0 (lowest) to 100 points (highest) for both the written submittals and the interviews, composite scores were arrived at for the fourteen firms interviewed. Firms scoring 70% or higher were selected within each legal specialty.

Commissioner Hunnicutt motioned to approve this Resolution. Vice President Gans seconded the motion. This Resolution was approved unanimously.

7. [Section 8 Management Assessment Program (“SEMAP”) Certification For Fiscal Year 2010] Consideration and Approval.

Nicole McCray-Dickerson, Acting Director of Section 8 presented this Resolution.

On August 17, 2000, HUD issued Notice PIH 2000-34 requiring the electronic submission of the SEMAP certification. The objective of this Resolution is to authorize the Executive Director and the President of the Commission to sign the SEMAP Certification on behalf of the San Francisco Housing Authority („SFHA”) prior to the electronic submission to HUD. The San Francisco Housing Authority (SFHA) has completed the reviews to determine the SFHA scoring for the 14 indicators of SEMAP report for the fiscal year ended September 30, 2010. The SFHA has determined that the scoring for the fiscal year ended September 30, 2010 is 90 points or a 62% scoring establishing the SFHA as a Standard Performer.

Vice President Gans motioned to approve this Resolution. Commissioner Jones seconded the motion. This Resolution was approved unanimously.

10.

PUBLIC COMMENTS ON ITEMS NOT ON THE AGENDA There were no public comments.

11.

COMMISSIONERS COMMENTS AND REPORTS Commissioner Schwartz requested information on the NOFA letter from HUD.

12.

CLOSED SESSION A Closed session is scheduled with the Executive Director and Agency Counsel under Government Code section 54957 (b) (1), 54956.9, 54957.6 to update the Commission on personnel issues, pending litigation and labor negotiations. The Commission went to closed session at 5:25pm

13.

ADJOURNMENT

Commission Meeting Minutes November 10, 2010 Page 7 There being no further business to come before the Commission, Commissioner Hunnicutt motioned to adjourn the meeting. Commissioner Safai seconded the motion. President Brown adjourned the Commission Meeting of November 10, 2010, at 6:05 p.m.

Henry A. Alvarez, Secretary/ Executive Director

Rev. Amos Brown, President