9/24/2009

HOUSING AUTHORITY OF THE CITY AND COUNTY OF SAN FRANCISCO Minutes of Commission Meeting Thursday, September 24, 2009

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, September 24, 2009, at 4:00 p.m.

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

1.

ROLL CALL PRESENT:

Rev. Amos Brown, President Neola Gans, Vice President George R. Brown, Commissioner (arrived at 4:10pm) Jane Hsu, Commissioner Dwayne Jones, Commissioner Millard Larkin, Commissioner

NOT PRESENT:

Matthew Schwartz, Commissioner

A quorum was present.

ALSO PRESENT:

2.

Mr. Henry A. Alvarez, Executive Director Mr. Roger Crawford, Acting HR Director

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

3.

GENERAL COMMUNICATIONS/ REPORT OF SECRETARY Mr. Henry Alvarez, Executive Director informed the Commission that they can find HUD correspondence and the SFHA Shooting Incident report in their Commission binders.

He introduced Mrs. Barbara Smith, Administrator of HD/MOD. Mrs. Smith informed the Commissioners that the Authority was just awarded three out of the six grants we applied for competitive funding. The grants were awarded to Rosa Parks for $2,780,755, 1880 Pine and 1760 Bush for $3,995,000 and lastly Ping Yuen for $8,502,006. Mr. Alvarez

Commission Meeting Minutes September 24, 2009 Page 2 and fellow board members commended staff on this accomplishment which would allow us to do a lot of work on our properties.

4.

COMMITTEE REPORTS There were no Committee Reports.

5.

REPORT OF GENERAL COUNSEL Mr. Roger Crawford, Acting Director of Human Resources informed the Commission that there would be a Closed Session.

6.

TENANT REPRESENTATIVE REPORT Mr. Vitalie was not present at this meeting.

Kimberly Hill-Brown, President of the Tenants Association, informed the Commissioners of several items including issues with PHTA, elections and resident concerns.

7.

PUBLIC COMMENT ON AGENDA ITEMS There were no public comments.

8.

UNFINISHED BUSINESS There was no unfinished business.

9.

NEW BUSINESS A) CONSENT AGENDA NOTE:

All matters listed hereunder constitute a Consent Agenda, are considered to be routine by the San Francisco Housing Authority Board and will be acted upon by a single vote of the Authority Board. There will be no separate discussion of these items unless a member of the Authority Board so request, in which event the matter shall be removed from the Consent Agenda and considered as a separate item.

1) [Renewal of Property Insurance with Housing Authority Property Insurance in an amount not to exceed $1,027,727.00] Consideration and Approval. Presented by Tim Larsen, Acting General Counsel 2) [Renewal of General Liability Insurance in an amount not to exceed $1,018,115] Consideration and Approval. Presented by Tim Larsen, Acting General Counsel

Commission Meeting Minutes September 24, 2009 Page 3 Commissioner Larkin motioned to approve the Consent Agenda.

Commissioner Jones seconded the motion. The Consent Agenda was approved unanimously.

B) ACTION ITEMS

1) [Transfer of the Administrative Fee Reserve of $2,000,000 from the Section 8 MOD Rehab Program to the Section 8 Housing Choice Voucher Program] Vir Chua, Accounting Manager presented this Resolution. The San Francisco Housing Authority Board of Commissioners executed annual contribution contracts (ACC’s) with the U.S. Department of Housing and Urban Development (HUD) for the administration of the Section 8 Housing Choice Voucher (HCV) and Section 8 Moderate Rehabilitation programs. Under the ACC, HUD agrees to pay administrative fees to the Authority to cover the expenses incurred in administering the programs.

The Authority is required to maintain an administrative fee reserve account to track fees paid by HUD and costs incurred for each program.

Based on the audit report for the fiscal year ended September 30, 2008, the Section 8 HCV program showed an administrative fee deficit of ($1,671,363) and the Section 8 Mod Rehab program showed an administrative fee reserve of $3,248,434.

Based on the September 30, 2008 audit report, the Section 8 HCV program had an administrative fee deficit of ($1,671,363) and the Mod Rehab program showed a reserve of $3,248,434. The deficit in the Section 8 HCV program potentially raises an issue in terms of the program’s ability to absorb the fees of the COCC. The transfer of the excess administrative fee reserve from the Section 8 Mod Rehab program is an accounting exercise that complies with the provisions of the existing ACCs between the Authority and HUD and with the Code of Federal Regulations (24 CFR) Parts 700 to 1699.

The transfer of the administrative fee reserve does not entail any financial disbursements and would not involve any budgetary consideration.

Commissioner Jones wanted to know if this action required any HUD approval. Mr. Chua informed the Commissioners that HUD limits the approval to the Board of Commissioners.

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

Commission Meeting Minutes September 24, 2009 Page 4 2) [ Board of Commissioners Certification for the Operating Budget for all Projects for the Fiscal Year October 1, 2009 to September 30, 2010] Herb Lum, Budget Manager presented this Resolution. The objective of this

Resolution is to provide an approved budget to HUD by the deadline date of September 30, 2009. This resolution will satisfy HUD’s requirement to submit HUD Form 52574 – PHA Board Resolution indicating that the FY 2010 budget for all projects and Central Office Cost Center (COCC) had been approved by the Board of Commissioners.

For CY 2009, HUD provided a funding shortfall of 12%. For CY 2010, the President has requested for full (100%) funding but most likely will be at 95% proration level. For FY 2010, the Authority is submitting a budget conservatively at 91% of funding. As HUD has not reviewed and passed the SFHA for asset management compliance, SFHA budgeted a loss in funding of $1.3 million for Year 1 Stop Loss and $2.3 million of loss funding for Year 2 Stop Loss in accordance with PIH Notice 2006-14 – Successful Conversion to Asset Management. If the Authority is successful, the $2.3.million will be restored.

The Authority has calculated the eligible public housing operating subsidy and identified all source of income including Section 8 Administrative Fee, Capital Fund Program funding, and dwelling rental income.

Projected uses of income have been allocated across the appropriate line item expenditures and program area, yielding a balance budget. The overall contribution to reserves is $1,538,807.

Commissioner Larkin wanted to know if it was appropriate to take the Resolution to the Finance Committee. Mr. Alvarez informed the Commissioners that it is important to work through the Committee process.

Commissioner Jones wanted to know if there were any time sensitivities attached to the budget approval. Mr. Lum informed the Commissioners that HUD requires submission by September 30. Mr. Alvarez informed the Commissioners that they can approve the budget with an amendment that if there are any changes, it be brought back to the Commissioners.

Commissioner Jones motioned to approve this Resolution as amended.

Commissioner Larkin seconded the motion. This Resolution was approved unanimously.

10.

PUBLIC COMMENTS ON ITEMS NOT ON THE AGENDA Public Comments were heard by the following:

Commission Meeting Minutes September 24, 2009 Page 5

Voncil Baker John Dorsey Lynn Daniels Ace Washington 11.

COMMISSIONERS COMMENTS AND REPORTS Commissioner Larkin informed the public that the San Francisco Housing Authority is a transparent agency where disrespect from staff and/or the public will not be tolerated during the Commission Meetings.

Commissioner Jones reiterated Commissioner Larkin’s comments stating that the most important issues were ensuring we are providing appropriated services to the Residents.

12.

CLOSED SESSION A Closed Session was 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 into Closed Session at 4:40 p.m. Present were President Brown, Vice President Gans, Commissioner Brown, Commissioner Hsu, Commissioner Larkin, and Commissioner Jones. No decisions were made.

13.

ADJOURNMENT There being no further business to come before the Commission, Vice President Gans motioned to adjourn the meeting. Commissioner Jones seconded the motion.

President Brown adjourned the Commission Meeting of September 24, 2009, at 5:35 p.m.

Henry A. Alvarez, Secretary/ Executive Director

Rev. Amos Brown, President