City of Laredo, Texas Laredo Housing Finance Corporation, 13 Feb 2023

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From YouTube: Laredo Housing Finance Corporation Meeting 011923

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Laredo Housing Finance Corporation Meeting 011923

A

And we're going to start our meeting at 12 22 this afternoon. Welcome everybody uh rope, call Tina! You want to go over who's.

B

Here, yes, of course, um Mr Jose suniga present Mr Gonzalez. He did mention that he was not going to be with you today: Mr Oscar Lopez Miss, Eva, Montoya present and Mr Jorge Gonzalez.

A

B

You do have corn.

A

Thank you, Tina uh approval of the minutes for November the 9th you all receive copies of the minutes. uh If you have any comments, any changes, if not, if we can have a motion to approve this percentage,.

A

I'll make a motion to approve that's presented. If we can have a second I, think everybody in favor say aye all right. Anybody against motion carries to accept this percentage. Citizen comments. There's no citizens present at this time. We're gonna leave this open until the end of the meeting, we're gonna move to the treasures report, Financial update on Laredo Housing Finance Corporation account at Falcon Bank expenses and available Banner Christina.

B

Okay, so presented in your package, you do have your bank statement as of December uh 22 um and your beginning. Balance is still 86, 000 407 with 48 cents, and your ending balance was 86 000 444, with 39 cents. There was only I believe um one small deposit.

A

I will second that everybody in favor say aye aye. Everybody again motion carries to accept this presented Finance operation and status report by Capstone, Real, Estate, Services and City staff with discussion and possible action on Hamilton Apartments repairs, improvements, leases operations and management. I will start with the 2023 proposed budget by Hamilton, like Capstone real estate. Floor is open for you. Ladies.

C

Okay, so I think that y'all have an original one and then you have a revised one. Definitely look at the revised one last week and we went over some stuff and I did change stuff in that budget.

C

Do you all have any questions? Have you already looked at this? Do you all want me to go line by line on if.

A

You could tend to over it by uh okay.

C

So we're projecting that we will be bringing in Parental income at 76 882. That's gonna, be across the board January through December, okay and that's showing at a 95 percent um least section. Eight. We will be bringing in 19 221 across the board and our gain loss to lease is 16 10 and that's gonna fluctuate. Throughout the year we have vacancy loss at 45.49, our net rental income, um we'll fluctuate, but starting January, it's 93.

C

and it pretty much stays through that amount. The whole whole year. Commercial space is at 61.43.

C

And that's actually going to increase because um it's 200 each on the Western Union and then also on the palomito provider service. It's an extra 200 so that they will add another 400 each month. For that.

A

So that's not reflected on this one.

C

Right because it hasn't been approved yet foreign.

C

And then from 567 to 767, okay, but the union.

D

Uses one space or two systems just finally.

C

No just one for right now, because the other one expires, I, think in May or June and then we'll race that one up to this foreign application fees are right there, starting in January, it's 1, 54 and then leveled out through December uh parking and carport fees are 500.

C

But I do have a plan. um I am actually sending out or sending out letters today we're no longer going to be responsible for the parking, so as of 3-1, they will be finding their own parking spaces that this is for food. uh The resonance.

B

So I don't know if you want to elaborate on that to the board. Remember the discussion that we had, that you know that um that you all had been renting so many spaces, so we actually.

C

um I think it's like 24.

C

um and we don't use all of them so they're kind of just sitting there, so we kind of just decided that the residents can pay for their own parking if they'd like or they don't have to so um I'm Cindy we're sitting on the letter today. As of March 1st, everyone is going to be responsible for their own parking fees.

A

So that's going to go to zero. It's.

B

Gonna go to zero.

A

Starting except.

B

For staff you're still gonna pay this or you're gonna find another. Yes, okay, you're gonna find what what well it's! Because what was happening is she had so she has staff that they paid the parking here right um that they pay for the parking here. But then she had x amount for residents if they wanted to.

C

But this is good income I think that's yeah, because right now it's just income. So we're not! This is going to be zeroed after.

B

March 1st, because you're not expecting it to come in, and that was what happened they. They were budgeting for this too, and they weren't renting them out. So nothing was really because you didn't have all of them. We did not. So that's why the variances each month was coming out negative because you weren't collecting that money. So there's not a real need for having those.

E

They were paying uh fifteen hundred dollars every month, uh which Was Eighteen thousand dollars a year for parking spaces, but they were only collecting. You know lesser six thousand dollars, so they had more more. We.

C

Have I think 14 accounts.

E

B

But since they, because they had some agreement here at with the Metro, they were selling the hook to pay them, even if they weren't renting them right and I thought you all weren't, even renting them at the full amount that y'all were paying for.

F

B

Just cutting it.

F

A

Out of the 24 that we have, how many are we gonna keep for employees.

C

B

So that would just be reflected the expenses no longer any income coming in correct.

C

With laundry income at 600 a month every month, uh locks in Keys 25 and it fluctuates back to 50 and then back to 25.

C

um late fees. 95 each month.

C

We're letting fees we don't get a whole lot of we're letting fees on a lot of people break their rent. So we don't think that we need to have that on a monthly basis, so we just budgeted for April, May and June and then miscellaneous income. We also don't get a whole bunch of miscellaneous income, so we've budgeted just for certain months.

C

And also terminated, Lieutenant income.

C

So total income would be a hundred thousand seven hundred and sixteen.

C

On to payroll and uh and related on-site payroll is 39.71, and then you can see in March we get paid three times and in September we get three okay three times. So that's calculated too.

E

Now this is uh budgeting for 100 percent five, five.

F

E

Individuals right right, five employees, 100 correct and.

C

Right now we have Anna is the assistant and um Julio is the assistant maintenance? Yes, and that's it right now, I am I, do have an interview with the Lee maintenance today at 2 30.

A

We have five uh full time.

C

A

Right now we have three two two.

C

Right now, I'm pulling I actually uh hold this week and we got more make ready, so we can rent them out and then she will be helping out on. You said: Monday, Wednesdays and Fridays correct, so we're saving money on that too payroll taxes um comes out to 23 9.79 a month and fluctuates throughout the year.

C

We have office supplies at um 5 000 annually and that reflects office supplies paper, pens, highlighters, FedEx packages.

C

We have Professional Services, so the Professional Services is high is because that is where we are paying our parking fee style Metro. So.

A

What's that stuff right, it's gonna go to how much.

C

um It's gonna be minus 1500, as of March, so March through December, it's gonna be like minus 1500.

E

Well, well, you will be including five still five.

C

So minus a thousand! Thank you.

A

So this will go to 500 a month.

C

Minus a thousand because we're gonna pay uh for employee parking. How.

E

Much do they charge. Is it.

A

A sixty dollars so.

E

It's three hundred plus three hundred, so it's 1200 reduction.

C

Yes, but I think we should.

C

We should yeah hold on 60 times back 300, so it'll be 12. Minus twelve hundred.

A

A

C

There's also included Ellis surveys, employees grainings like if we get new employees. um Kingsley surveys like grade school trainings are like our fair housing trainings our leasing, trainings.

E

But you have a line item for trainings. You don't include them. There.

C

That's that's for like um if we are going to budget camps like if the girls like every month every year, we do a budget Camp um stuff like that, so they're traveling, to go to this budget camp in San, Antonio and.

E

That's and that's I guess we'll get there if we get to the training, that's where we have a question there sure thank.

C

You credit reports, um our 736 for the year juice, Professional Services are 13 947 for the year and that is for Blue Moon TAA clicks, Real, Page expenses and the apartment association for Corpus, Christi, copier and The copier. It is 7 10 for the year we have employee relations, it's 65, uh the first four months, 290 for May and then 65. So it comes out to 1200.

C

C

We have the bank charges, it's a hundred dollars a month from January to December. We have on-site travel, we budgeted for uh February May, August, November and December.

A

We've got any bad charges tonight. Sorry, do we get any Bank charges.

B

B

First, so remember they you, they have their own bank account like through Capstone handles the Hamilton.

B

Housing, I guess bank account and then and then the board has their own other account. So yes, I mean I, don't know who? Who Capstone is banking with right now through through the Hamilton, but yeah? That's hype yeah, so they they have. There's two bank accounts basically.

F

A

Yeah increase the the service chart is 100 a month.

C

Is it what is it like? uh You all have Falcon Bank right.

A

Now ours is free, yeah and uh Wells. Fargo here charges you thirty dollars. Okay,.

C

I can definitely research it and then.

B

And how much are y'all spending, maybe that's just maybe that maybe you're just budgeting 100. How much are you all really spending there.

E

B

You don't have a you, don't have a yeah, maybe because maybe they're just budgeting for it and right.

G

B

Budget is kind of high, but it's not yeah.

B

Yeah and I see that last year they budgeted 264, so they did lower it to a hundred. So maybe they're not using.

E

220 through November is 220.

F

E

Was 220 through November the bank charges no I'm, sorry, the wrong column. I know this is here: oh yeah, oh no, yeah! It's 1095 demand charges.

B

That time, 1095.

E

That's how much yeah.

B

So then it is about a hundred dollars.

B

Well, that last year come on.

C

Would you like me to continue or.

A

Yeah just check them out.

C

A

C

Expenses, there is February May, August and November and December, and that reflects managers meeting quarterly and Ella's shopping reports.

E

I guess they're they're. uh If we can ask, because we were looking at the at the contract and we were not able to to find trainings and education as part of reimbursable operating expenses. Okay, so remember we asked you if you could check that on the contract, also to see that was allowed.

C

Yes and um I gave it to renetta, and she is was out last week and she's out this week. We had a whole bunch of takeovers so as soon as she gives me that.

E

B

Pending that one and those were just some courts and I know- and we can share again with with the board the contract that um that we have I mean it's an older contract. So there might be time for us to have to uh renew that contract. But it does you know, so the board is paying an administrative fee and then some reimbursable operating costs so that that I guess that was the question. It is part of the. uh It is part of the packet yeah.

E

The the contract.

B

C

Okay, education is 1200 for the year that reflects uh TAA and then the education conference uh tdhc tdhca compliance is a one-time for 41.25.

C

Marketing expenses we have 273 and that reflects Sprout, aln and reputation.com.

C

We have Internet advertising, it's a partners.com at 505. for the month, and that goes all the way to December. Internet advertising is 55, and that is our website oriented.

C

We have promotions for 25 20 for the year. That's resident functions, that's coffee, that's water, that's holiday parties, Thanksgiving and Christmas.

C

We have um referral fees at 100 a month that uh so our referral fee is fifty dollars per referral.

B

Paid to the tenant paid to the tenant and.

C

We're no longer going to do the gift card, we're just gonna concession them off their their.

A

Rent, okay.

C

um Utilities we have 50 000 6.95 for the year for water, we have 45 600 for the Wastewater. For the year. The utility billing services at 37.08.

C

Electricity is at 144 for the year gas is at 10 200 for the year. We have trash removal and.

A

That decrease the electricity with the.

E

Disease contract, yes, uh I, believe the uh November uh billing was like six thousand something 6 500 for all three accounts, so there might be a savings there.

F

E

I'm pretty sure you will see it.

E

We'll see it, trash removal is.

C

At 85 20 for me.

C

Cable TV is at 320 a month. We are we. We got on a call. Today we are looking into that. We are um Mr Delgado. He um advised us that on one of the alts other properties, y'all are I, guess having an antenna. Yes,.

E

C

It kind of brings the cost down so we're looking into that. Internet expense is 75 for a month for the year.

C

Telephone and pagers are 1441 every month and that's also going to go down to um I was on a call with them this morning, and it should. We have double lines that we're no longer needing. So we're going to cut back on that as well.

C

Maintenance and pairs. um Plumbing is 8400 for the year. Hvac is 12 911.

C

and 6 32 of every month. It's called Kim aqua and that's needed for the.

C

We have electrical supplies 475 a month. Building, repairs and supplies are 600., um I did have uniforms at 1800 and I cut it back to half that which is 900 for March, appliance repairs and supplies are 200 a month for the whole week. Every month for the year, Carpet, Cleaning and Repair, we have it every I guess what quarter or 325.

C

C

um We have paint at 600 a month January through December apartment, cleaning and janitorial 350. Every month we have inspections and it's going to fluctuate because we have the fire extinguisher, inspection, elevator inspection and that fluctuate bringing it to 85.25 for the year.

C

Our management fee is 37 901 and that's operating at 95 percent um insurance is 5 000 a month and myp insurance is 12.70..

C

We have Pest Control at 675. and then also we have seven bed bug treatments if needed.

C

The security system is 38 a month, and then we have some. We have in March and August. If there's money in there for key fobs for the doors.

C

Answering Services 106 a month: elevator service is quarterly and that's 47.65 I'm.

E

Sorry I have a question on the uh answering service: okay, uh so the uh the emergency number it doesn't get picked up by the maintenance. It.

C

Does so it's going to it's um like when you call and it gets forwarded, it's going to ask you if you have an emergency, if you just have a question about General Leasing and it it leaves a message and then it reflects and it transfers to one. The first person on call is the lead maintenance and then, if they don't answer, it goes to the manager and if the manager doesn't answer it goes to either me or Monica. So.

E

You don't have one designated just for emergency. It.

C

Is it's all of it together? They have to press one two or three like if it's an emergency, it's one. If it's leasing, it's.

E

Two, oh, what I mean I? Guess it's it's open to the public. If they're going to ask any questions, it's not just for the tenants in case they have.

C

Any emergencies, yes, it's everybody.

C

Because if it's an emergency and they're calling, then they're going to put emergency? And it's going to go straight to one of.

B

Us do you ever have any concerns from the tenants that they don't understand. The you know is it in Spanish and English. So far, we've.

D

Got we haven't had any issues whatsoever, no questions.

E

I was asking because well with our maintenance crew, you know we had a maintenance supervisor he's the one that receives the emergency, calls from the attendance and.

B

As far as any other.

E

Questions you know they go directly to the like.

B

Instead of an Avenue and answering service, where you do, we actually every tenant that walks into any of our 600 units gets given an emergency number and that emergency number is to a cell phone that is assigned, and we alternate people or we have more staff, but I mean so they take that cell phone like this is my weekend. I'm gonna be on call after five and I'm gonna. So it's not like an answering service. It's just directly to answering.

C

Service so like it's, it's like a somebody.

F

B

C

Either way, even if we did have a cell phone it'd, be the exact same because it's saying like if you have a maintenance emergency press, one.

E

Like the messaging right.

C

Like and then you'll How does it go. You'll um leave like a detailed message. Hi. This is 203. My water just busted.

B

So then I'll go straight to us yeah and then you'll have to call them back right. Well,.

C

No, no, it actually connects to her.

B

Oh, it's your next okay yeah! It transfers across.

C

And then, if he doesn't answer and then to few minutes later, he's like oh I saw a call, he calls that number and then it connects to that person.

E

And that's a separate number than what.

B

E

B

Number yeah: that's what they're saying they don't have a separate number, it's the same number and the that's why they create an answering service because it's it's directing the call right. Basically.

C

um Elevator service is quarterly at 47.65.

C

Us total operating expense for the year is 84. 847 783 total operating income for the year is 361.

C

um Then we have Debt Service interest, expense for the year is 166 229 principal payment is 126, 000. and 77, and then we have Capital items.

C

Capital items is not guaranteed that we are going to get stressed to um have Hamilton functioning just in case on the original. I did have a lot more money in this Capital expense, but I cut down also a whole bunch on rehab costs on plumbing and on carpet replacement. The.

A

Capital items we can get from the loan is that correct, because it.

C

A

Money for Capital I.

C

Don't know okay, okay, um have it is a thousand dollars per unit that you have to have sitting all the time. Can.

F

B

C

And I think that they took out something in August, so it put us below so we're having to catch up.

B

um So so, typically I've seen other like um units what they do is they so it's a replacement Reserve, so you still have to ask to get reimbursed. So you still have to get a budget it because you're like the operating funds, is gonna have to make the make the the repairs right so and so then they're so from the payment each month. That uh Capstone is giving to the bank they're putting aside a thousand dollars per unit.

B

You know and then there's that Reserve there, uh what what happens is like in the other unit, they'll, look at it at the end of the year and they'll see how much they have in their replacement reserve and then they'll compare it to the invoices of the repairs that they did, and sometimes they can recoup some of that Opera. Yet, okay, but but that's how it would be now we had a big expense. That was, you know, gonna really hurt your operating expense and I.

B

Think that's why they went and and and pulled in, uh but if there, if now we're under that Reserve.

C

Amount, we actually should be okay, starting February 1st. We should be. We should have evened out yeah. We were only like 10 000 when I requested money. I didn't know that we had to have a certain amount. I knew that we had a lot in there. I didn't know it had to be a certain amount to stay there. So um I think we could probably draw more towards the end of the year. Yeah.

B

You could just now be looking at it right. It's a year, yeah.

C

um That is where your net income is going to have a negative number. That's if we are to spend all of that money each month.

E

But you will be making some changes right so that that number you could use your your deficit. We.

C

Are well yeah this so like we're already saving because we're not we don't have a full-time manager, we don't have a lead maintenance so until we actually hire somebody like.

E

What I mean to to have a balanced budget.

A

Because we, we cannot have a negative.

B

E

I would say, reduce you were already going to reduce yeah 400 from from the parking.

B

Yeah and the cable we revisit.

C

Those planets I think, like we I, don't know if we necessarily so like it's just a budget like it's not guaranteed like I, don't know if we should just take it out, because what? If? What? If we don't want to do that, what if uh they love that TV, like everyone, is down there? If I do change and then they don't get the certain channels that they want it's just going to be something. That's.

B

Right but you're saying leave them TV and take away like maintenance, stuff or or capital I mean, but.

C

This is just in case. We may not need a thousand dollars for Rehab. We we did it last month. That's why it's just budgeted just in case this is not guaranteed like it's just a just in case um for HVAC we're not right. We don't. We didn't um order anything for hvacs this month.

E

I, don't know it's it's like like with our unit and and uh you know we don't get any campaigns because they get like 34, 33 air channels and very clear. You know uh 4K.

C

How many units is that property or how many people it's.

E

C

Right, we have 169 people yeah.

F

B

If you, but but if you.

F

Don't have the budget.

B

To pay for cable, why are we paying for cable, yeah.

C

I get it, but to me, 324 is not going to change this negative amount.

E

You know it's going to be those 3 000, plus the 14 000 that you're reducing from the park right and then we.

A

Have an even budget.

E

Yes, now, as far as you know, again back to the cable, you know you only you only use it for the lobby right.

F

E

So the people all of the 165 always using.

C

You know they're watching probably right now, like 20 people and like they just it just they kind of go there's so many people.

E

Because older people.

E

A

Right I think as well. We need to adjust that the cable and then with the adjustment of the parking we should have an even budget. You.

E

Know just for those two right.

C

E

And we'll also need to check to see that the training in education will be reduced also.

F

A

Part of the contract, depending on how the requirements.

C

So, let's just say the country name, you want to take out training for leasing, fair housing, teaching somebody so.

B

That what we're saying that's responsibility of capsule, not.

E

uh The company still.

B

Not not the operating of the facility because we're already giving uh they're already paying an administrative fee so from that administrative do.

F

You think they.

B

Can still pay it? That's what that's the I guess the comments? Okay, not that they don't. We don't want them to do. No. We, we still want trained staff.

G

B

B

I would I mean and the other item that we.

A

Can yeah we also need to adjust? Oh.

B

Yeah, you can adjust the electricity in that so that you can have a more balanced budget. You can look at the last yeah because they've been on the new Reliant contract.

A

For whatever, like.

B

Three four months: yeah comparison.

A

Then you can readjust everything.

D

Because they were already in operations like the last two months, so here we have an idea as to that's.

B

D

Yeah they've already had that yeah, two or three months mainly I, think that they're, the ones that use most of the electricity yeah.

A

They're still, an average percentage adjust adjustment who.

G

B

I mean the the November, the.

F

B

Is for everything for.

F

B

F

But but if any.

B

If any increase happened to.

D

The restaurant was bacon, yes, commercial, one of the food place was taken for a long time. So now that they've been in operating operations, what has the red the electricity gone up like substantially or what are we? Where do.

E

We have no, it actually went. It went down, I believe uh the October uh statement. Let's.

A

E

That we were just.

A

E

A

Have three accounts.

E

And it was like 6 500 click for all three I think it was the October statement.

D

And we're allocating how much here well.

E

D

E

That the the first when we did the transition it was a the mid, July or August. Something like that. It was like thirteen thousand dollars, but it because it picked up most of the previous uh companies right cavallos.

C

Okay, so the one that we got sent on 11 17, 22.

C

66.78 yeah.

A

Even if we adjust to eight because I know there's some Peak months but yeah, yes, we're also adjusting the balls. huh The phone.

C

Yes, I just I, don't have an exact number that we would reduce it to, though.

A

If you're looking at adjusting at four lines, let's just adjust it to two in case you have any extras.

A

And with that, we should have a surplus instead of negative, and we leave that Capital. Yes,.

B

Because I think the capital is fact I was thinking that maybe in the capital.

E

It is just a suggestion where we have Plumbing eighteen thousand dollars. We talked about. Maybe having a plan to you know make improvements, I think so fix up loving Maybe by faces.

E

Maybe we can even move part of the carpet replacement that you know I think the plumbing is more important part of that move it over to Plumbing, and you know actually do something. You know with those funds.

G

And carpet replacement well.

B

The carpet replacement you all only do it when someone moves out right, because you all don't do it when.

C

They complain. Sarah was under the impression that y'all had told her that everyone that moves out it needs to be switched to the vinyl flooring.

B

So she's, that was what was suggested. Yeah I mean that's what I think at one point we.

C

F

G

B

By little, but how many I mean how many new tenants do you all get a year? You don't get that many, um so maybe just adjusting that now I know sometimes when they would move out. You have you had tenants that had been living there, 10 15 years, so when they moved out it was a matter of you need to replace it. You couldn't rent it. So we were saying why invest in another carpet that you're gonna have to so that's what that was. What.

G

That was what yeah that.

B

Was the switch and then it was also suggested some of the the floors. You know if there was money in there that some of the floors had been uh phased out. Those were just all Capital Improvements right.

E

um Is always the.

F

E

On the carpet, always nothing I.

C

Know that uh there is some that are the vinyl or the wood flooring.

B

Yeah because they have, they have started doing the transition also, so those were some of the Capital Improvements that that you all were bringing to to the board of like you know what we have a little Surplus. You know mid month. Let's do should we do this. Should we do that?

B

um The other thing you all I know it was requested and I don't know if I ever brought us any um quotes on fixing the awnings outside. She.

A

Was gonna check what.

B

She knows she never brought us anything on Salina Street. You know how, like that awning a lot of them are broken, so there was gonna be, and then the question was at one point a long time ago, many years ago they had lights. So you.

D

Know they still have the original lights yeah.

B

And so he she was gonna, get an electrician to tell tell the board how much that cost and I know that might not be in the budget right now. But these were things that the.

G

Board had asked give.

B

Us long-term, like Capital Improvements, where were the lights at under the awning under the honor yeah, so these were just little things that, like um I know they might not be budgeted, but.

G

B

Looking at you know, bringing once a year every six months, something like hey, yeah and the other item that I mean you can see from the outside is Windows and the Winter's looking really bad shape the outside windows, because they're wood. That might be something that you need to bring to the board and tell them you know, and the next five years we're gonna have to start. You know fixing them little by little. Those are all other Capital Improvement items that I remember had been discussed a while ago.

C

Okay, I'm changing electricity, cable.

C

uh We are changing the parking fees.

C

Change training, expensive and then looking at.

D

The big churches, what are we expecting to the.

C

Cable tube an antenna.

A

C

A

And then it's approved uh we're gonna, you need you're gonna, adjust the commercial spaces as well.

A

A

You're gonna reduce one or two lines.

G

On the elevator, so it just maintenance that we're doing right, there's no real air needed.

A

To be done, yeah, the coral is just.

G

There was no repairs today.

A

um I don't know if there's any other questions comments.

A

It's not out. I'll just make a motion to to move the approval of the budget for next meeting. Once we have the the final numbers.

A

In the budget pending for uh next meeting, rent increase proposals.

C

Thank you, foreign.

C

The new movements about 100 but I just don't think that it's going to bring that much within that year, so I am proposing something new. We increase everybody at renewal and the new move-ins um studios are going to be 700 one bedroom and it's right there on the right. One bedrooms are 760 and two bedrooms are 808..

C

We have 92 on tvra, we have 18 participants on the Laredo housing authority and the non-voucher units we have 38..

C

um If we are to do this and increase it um increase everybody at the end of the year, we would be bringing in an extra 25 873.

A

F

A

How's that in comparison to.

B

So um I mean Studios for for seven at 700. Right now we see I mean in this area. I would say: I mean it's gonna, the ones that are gonna struggle a little bit more are gonna, be your the ones that don't have subsidy on the subsidy side. If that that would still have to be presented to the tbra program. So if, like let's say the board approves it, then um the management company does have to send a letter to the to the TBR program, a.

F

B

Advising us of the change, if that might just change us it, we would probably no longer have a hundred vouchers, but I mean we're only rent. We've only been renting 92 because of the slow turnover, um so we would probably leave them on 92 vouchers. I would no longer probably budget, for this is on the program side.

A

B

Yeah so that I can make up that money, because we only put a certain amount of money for the program. So on the tbra side, if we were to approve those- and we would of course have to check that they comply with our other requirements, then that would mean that um that tenant doesn't see the increase. Just the program sees to increase right because it's a subsidy program, the Housing Authority, should work the same way. They would just be notified.

B

They would uh advise you if there was any issues and with those amounts and then uh the non the non-voucher unit. So this would leave you at 38 units that will not be receiving subsidies, so those 38 units I, don't know out of those 38. How many you have rented right now so out of those 38, it would either require I mean those those people might be might not be able to afford it, because some of them were renting really really low.

B

So that might just you know, be like a shock to them, because some of them for some reason they were renting at 300. So that might be a big shock to them. They might tell you, you know what we need to vacate now. It's six 700, uh a comparable I'm, just I'm just talking about the studio right now, but it's the 700 a comparable um rent in this area. I wouldn't know I mean I, I. Think.

C

I think the adults paid because we're paying everything we're paying trash, we're paying zero, paying Wastewater we're paying electricity like I. Think 700 is not a huge jump um and it's gonna be bringing.

A

It, what is the average right now.

C

uh I think it's like 5.

G

39., so right now for the studios for with our TBR program, we're paying 539 so you're, looking at doing that, probably a difference of 161 increase. The way our program works is that it has to be an adjustable rent that it's reasonable.

B

So we'll just verify and we'll do our due diligence and sit and see if it's if it's reasonable. Okay, um if it's not again we'll let you know, and we will tell you what would be reasonable for our program and what would be not and then you would bring it back to the board.

B

If that's the case, um what we just need to make sure is that we again, you all have a base rent, because you didn't have a base for some reason it got, you know very um distorted, so you just need to have a base and then, in six months you realize that this base that.

A

You're gonna work.

C

You're not voucher.

E

Because it's really.

B

Going to be from your non-vouchers that you all are gonna see that you're no longer a 92 or 94 vacancy percentage, you're going to be at you, know very, very high if you can rent those 38. So it's really going to be. Can you all rent these units at 700, 760 and 808.? So that's really going to be the push that they're gonna have to make and and be able to rent look.

C

At this see this black line that goes across so I I um organized it by the end of the their lease term. So the first part is the end of January. Those are how many are expiring. Then it goes down between each block line. It's February, March, April, I, think so on. So in January we have we're. Gonna have one in February. We're gonna have two non-voucher units that it would affect in March, one two, three four, five, six, seven.

D

So so out of those 38 non-voucher units right now, how many are.

C

Rent all of the 38, so these are all yes, so this is. This is 148 occupied? Okay, the bottom? um If you look at the last page, those are our vacants right now.

D

So the average jump on the non-voucher unit occupied right now, you're saying that it's in a we're gonna, depending if they're one a studio at one in one and two two bedrooms. What's the average increase, you said 160.

B

So right now, most of them because most of them are receiving the TBR program. So we base ourselves so 92 units of your 160 units that you're supposed to have. What does it say? Why does it add up to 148? Don't you have 165.

D

There might not have an impact for you, they have like the customer doesn't. Maybe we have to come back and adjust that based on what it's allowable for from those vouchers right? Yes, so the 38 that are out there. So we're saying that those right now, depending on on because I I can't.

B

Look on an average on an average, the one bedroom are being rented at five five. Eighty five is.

D

That what you're 85 yes so 585.

B

So that's a one bedroom, okay,.

G

So take the studios, for example, I'm, sorry to intro there there's some at 250 or some at 300. So what she's proposing to do is put in all those Studios that are paid 200 300 all.

D

The way to 700. and why? Why were we? Why were they paying 200, because we just randomly depends.

C

Which is what the contract was.

D

They, whenever I just did right or whatever came back and reduce it and no.

B

D

B

Don't think the board was aware of that discount. That was given at that time, like the management team made that call, and they rented some at that at different reps.

D

Because I can see where you know out right, oh I mean the outcome of this, where we want to go from 200 to 700. To 800 I mean the.

C

Majority, we also haven't had a rental increase um for.

D

C

D

Years, no no I understood. Yes, it did like a fifty dollars, sixty dollars twenty dollars, but we're fine and it's 205 700 yeah. It's 500. and.

B

It seems like there's not that many there's not that many look there. If you look at it and you can spot them right away. If you.

F

B

You kind of look like in January. Well, generally, you're not gonna, have any really drastic ones.

A

B

In February yeah.

D

um I guess unit 604 is paying 5.85 right now. It's.

B

The one that says lease rent five five.

D

Fifty yeah, so what is this guy renting? It's gonna go to 760. this.

B

Is a one bedroom, so yeah 760, correct 110, give.

C

An increase 604, it's a 210 increase.

A

But then you have 718. That goes.

D

From 279 to.

A

D

Larry moved in in last year, it poked in in three 121 or that's just a reason. It.

A

Says and we listed 279.

A

C

Know and it it does look bad, but guys we can't think of the blue like this is I'm trying to fix it. Okay, like we cannot go back and be like. Why did we rent it at 279., I.

F

C

No idea it wasn't there like it, does it's awful and it is going to be a big jump, um but at the same time like we, that we have to make this jump to be able to pay bills like and.

D

B

We can just try.

C

It we can see, um we were going to give out letters today and um kind of get a feel of it and if it, if it, if there's a lot of pushback or we are getting a lot of notice to vacates- then we'll go back and we'll we'll do a different amount. Because.

D

Look at Rosalia like a unit 714. She just she hasn't been there in one year.

C

Seven points is it: when does she in March or April.

D

A

It's a renewal, Landmark, okay,.

D

But it seems like you know, right that one was like 30 new one week: yeah yeah.

E

A

I think we want to get a base at the end of the day. We don't want a base red uh I, I, don't know, uh but again, like Tina said we can readjust this later on. The only thing is that it if this doesn't work, it's gonna hit us on.

A

D

I mean going back to your point: I guess that there's very few that are 279 up to 300 the other ones.

B

Are I mean I, think a hundred dollars I mean and- and you can always I mean argue- that that lease was not an approved release by the board, so that amount was not approved. So I understand where it's going to be up to Capstone now to talk to that tenant and explain that to that tenant and- and you know- hopefully they are able to you- know- uh pay the new rent, maybe give them an extension, maybe give them if they're gonna vacate. Maybe you give them, you know a longer. You know a longer vacating.

B

um You know allowance.

C

We can't make it um we do, make them aware that we are paying.

B

For everything, so not.

E

A lot to say that not.

C

A lot of units are like that, so.

E

C

E

You need to let her know that you know many of them are not going to be affected because of because of.

A

The programs I am okay with approving, but with a review within the next two months, just to see how.

F

The reaction, the reaction.

A

Is and then we can we can revisit on on the value of the base.

B

A

Of course, and.

B

She will, and they will have to present it to both the housing authority and the tenant-based rental program and get there get their reaction or their response and bring them to the board.

A

Right, I think that that's the way we I would like to approve it. I agree, so I'll make a motion. If we can have a second, it ever has a second everybody in favor everybody against ocean carry so we'll approve the base rates as presented. We will review in two months with responses from tbra and lateral housing and we'll revisit the base uh pricing one on the rent. So.

C

Do we have to wait until you're doing it? You do your due diligence and we're.

B

Allowed to I think so. You have to submit like so like that's tomorrow, letter okay to the to both programs right, you send it to them, and then you wait further.

C

Send it to them or send it to the.

B

Resident so you have to send it to a program first, because right now you have leases with the programmers. So so, let's just say you let the program know that you are increasing your base rent and then we will respond and let you know you know if this is allowed not allowed. Now you can start sending everyone in your of course. Your renewal notice.

F

B

Like you well right now, you would already be sending January Ferry party even marches, so you can already start letting them know that this is the.

C

Rent that you will see do they all not have a form that we have to fill out or we just send you a letter. You just send us another because, like Section 8 in San Antonio, we have it's a form that we give the apartment number the name the address and then what they're currently paying and what we're moving them to yeah.

B

But since here you usually have a hundred units, you wouldn't do one for each. That's the that's the issue, so you would just send it just send me a letter similar to the one that you saw back from 2015 I. Think that's the last time we're gonna send our program, one 2015 2016.

B

you just just do it like that, because you will be charging the same amount for all Studios all one okay, yeah Section 8 is different because since it's a Section 8 voucher, they have a form because the units can be very different, so they're gonna ask they ask like how big is it because it could be anybody yeah, there's different factors: okay, yeah, but here we already have your information. We know how many we have. We know which units we're paying. We know how how big those units are and everything.

C

So I don't have to send you a letter every time we're increasing somebody's I.

B

Don't want them.

C

The letter and that's.

B

It so correct, so once you get our that um letter approved by the by the department.

F

B

The program by the program, then you you continue sending your renewal letters to each of your tenants and when they come to us we will already know. What's the new rent, that's going to be charged. Yes, how.

C

Long, do you think it will take to get a response back from y'all.

B

I mean you can send it to us and we could try to get you a 15-day response.

G

Yeah but the new renault's not going to be effective until tomorrow,.

B

Yes, correct yeah: no, he we're not going to break contract. You're gonna be uh slowly because.

C

You're trying to get all of them done by March.

B

um Paying the new rent well but you're not going to be breaking leases.

C

Right so we have January.

B

And yeah, of course, so you're gonna, Jennifer March, yes, yeah! No.

F

January February well.

B

You can't break cars like ours, no longer because you have a current lease, so our January we already renewed at least- and you all signed off on the lease.

C

I, don't get what you're saying like what do you mean on that.

B

So for the tenant-based rental program, right Capstone has already agreed on every lease for January a release for February. We might have even started March already, no, not March, maybe January February well,.

A

C

Because I don't I.

A

Don't if there's already.

C

You have a contract for.

A

January February and March, then this would have to start until.

D

A

Per unit is that.

B

What you're saying.

D

The ones that you renewed.

B

For dinner, so I I, so so sometimes a move-in date from them. Is you moved them in and you gave them a lease and then three months.

C

Later but we haven't signed any leases with Jane with people in January.

B

And then you signed with us? Yes, yes, you have the.

G

B

Not with a tenant, though, yes, I know it's because, okay, so the way it works is there's a three. So we have we have at least so. Let me give you an example of a person. That's about us where I was getting that so someone moved in with you. Full rent starts renting there a few months later, they're on our waiting list. They get assisted with us than with us.

B

They come in and you well and we sign an agreement and we say: oh you, you qualify for a program kind of like section eight like about you qualify. uh We agree. How much are you renting there for? Oh, we rent this much. Oh okay, yes, I, agree. Take it back to your landlord. Are they gonna agree to enter into a one-year lease with a program? So you have a one-year lease with our program, so the the data is gonna. It's.

G

Gonna be different.

B

C

Of them it might, but to me that doesn't make any sense we have, because we have a contract with a resident and the resident has a contract with you. Why.

B

Don't we have a contract? You have a contract with us because you are accepting.

A

You're accepting the vouch.

B

That's how our program is set up and that's how it's been yeah so so for I guess, because.

D

B

Might even have a a contract.

F

With a Housing.

A

F

You go in and yeah, you have contractors housing.

A

Authorities in January yeah, but then in March you, you get accepted by the program, so the program lease is for one year so.

F

D

Youth started in January.

A

Your contract with.

D

Them because I'm the tenant I'm the tenant, she's she's, helping with the assistance. Yes, so so.

A

You're, you need to remember that Hamilton is accepting at their party they're. The third.

D

Party but I thought that they went in since, like when they initially went in and signed the lease or they go knock on the Hamilton and says we have a vacancy right.

A

D

With with with uh City already but.

A

If you weren't upper with the city, your contract actually starts when you start with the city, but.

C

That but we already have a contract. We have a TA contract, that's like you said she. She started in January and then and she got on your program in March.

A

In March, you get a contract from them right.

C

But it's between the resident and tbra.

B

F

A three-party and Housing Authority works the same way.

B

You have a contracts with housing authority too, as a landlord. You agree to accept that payment, because.

C

San Antonio is not like that and I, don't know: San Antonio. Yes, let's just say they aren't on the program and then in the middle of the year they get on it. There's a contract between the res and that person and yes, they are paying us a certain amount, but we keep that same contract that they moved in every year. It's not between.

B

Them so there might be so so there might be different mechanisms that so different housing authorities have different programs. Also tenant-based rental assistance. I could tell you, San Antonio party doesn't have that program, but what happens? Is that there's different mechanisms to work these programs? If this is the way we've been working this one? What happens here and we have? We have both right because sometimes they're on our waiting list. They get called from our waiting list and then we call Hamilton, say Hey, you have someone.

B

Is there a unit available, so we send them, and everything starts at the same, but sometimes someone in our waiting list is already living there and that's when the you'll have have a month. So you'll have a yeah some months that it's Gonna Last and then your ta agreement ends, but you still have three more months with us and you just leave it and then you renew everyone at the same time. That's just the way and we do ask for the leases when they live there.

B

We do ask them for leases, so we would get a copy of the Lisa, sometimes not all the time, but we would get a copy for the leases and put them in our file also, but.

C

They would be easy. Two contracts are wrong in our system. Then they.

B

A

Not all of them, but.

C

B

A

Be so if they were already there.

C

And then they got up here, but.

D

You have to continue doing your things like renewals, like points every year, not based on your dreams,.

G

C

Art doesn't matter in that case that what you're just saying ours doesn't matter.

B

Because you have a contract, because you because.

A

You enter into a new contract yeah you enter into a new country.

B

You enter into a new contract.

A

C

Three-Party car, so is there like instructions, so I can read it yeah.

B

Of course we can continue, we actually send you the whole contract, you look at it, you make copies of it and you have it in your file, so you should have copies of our contracts in your files too, but we I mean we can have a discussion, one send us a letter and then we'll discuss it, but basically what I'm telling you is or what I'm I'm letting you know is that in January you could possibly go to the people that you're saying that have no subsidy from anybody.

B

Those are the ones you're going to be able to fix right away until you get ROK you, you can't touch our contracts.

D

Yeah so, let's see I mean just for an example on this unit 411 this one renews or the uh leaves, and since January 2023.

D

right that one is being uh has some type of assistance. Correct. Yes,.

F

D

So then the Hurley's started in a well.

B

So look look at that. The oh it's interesting, so she moved in moved.

D

In in April 20 2011 and then her it released.

B

Answered so then it's in I guess she renewed her last renewal, because so that least start should be last renewal was March, I mean April 2021, which for that's probably their number and.

C

Then she didn't maybe come in in time and.

B

C

So but we we always we don't start it until they have signed the documentation and it's just like the following month. She could have came in late and then that's one of these so.

D

C

D

She's going to get in that story, she's going to get billed higher you're going to be able to no.

C

I can't because Sharon said we don't have a contract for January, so January yeah.

D

For sure we can start and March see how it goes.

G

But not until they get anybody right now. Yes, I am but they're all up to September.

E

Except through September the 30th and that's what she's like dude and then you know have the agreement side, the agreement, you know the same dates and start everybody again.

E

They will match the problem so.

C

That I was under the impression that the agreements that the girls were signing are like they passed. Inspection like everything, looks good.

B

You know you're agreeing to accept the program and and accept that the voucher for that term.

B

But we could I mean we can work through the logistics of it um through this programming. I can't speak about Section 8, but I can speak on on this one. We are on on the program side of it.

B

We are looking at ways to not have so many renewals every month, so we were hoping to put most a lot of them on a month to month and then start everyone new, but of course we're never gonna have I mean we will try to get most of them at a certain date, but then you will always have people move in and move out during the year. So even if you try to get someone, you know now the way um our our other units work. Is they?

B

If someone comes in right now, they do yearly renewal. They do yearly contracts in September right.

A

G

B

Give them month-to-month contracts until September you get a year contract, that's how we've fixed I mean other other, our other rental units, but I mean that's just something that again uh as your management company, they can present to you and and different options to. If you want to clean this up, if you want to change some of it, uh if you have any concerns about what you're signing with with the program again, you can bring it up to the board. You can bring it up to us and we'll review it. But yes,.

A

And at this point, I think this helps us out because it gives us time to adjust and readjust until yeah.

E

All of our contracts, like as I, said starting October, the 1st, so we get somebody right now. We only make the contract from right now through system building.

C

So I basically have to get with you in all 92 units and make sure I am renewing with y'all. Then that's basically what you're saying.

B

Well, I mean I, don't know how you all.

C

Were doing it before section, eight, you don't, you have to give a 16. Is.

B

That we're renew.

C

It that's it, there's no contract between us and them. It is between the resident.

B

And no, you have an agreement you're signing you're starting to accept that vulture. But.

C

But it's not an agreement with dates and and stuff like that, like there's, no two leases, there's there's one lease and then the the differential and pay like if it increases and they they figure all that perfect.

B

So so well, and we can, we can adjust again. We can, if you letting this know, and it doesn't happen all the time. That's what I'm saying. Sometimes they come in through our program and we send.

F

Them to you, yes,.

B

So so then we have the same dates same dates right, but what we can do is we can look at it and maybe we start, you know we'll just do a six month, renewal or a five month renewal if we want to get them all in the same time frame.

C

Can you all do that because we are not allowed to do that? We can only do one time a year. You can only increase tax credit people.

B

One time a year, I'm putting everyone Pro Tour, but you're talking about increases right.

B

All right, so you say that again you can only we.

C

Can only we can only increase rent one time a year. Oh.

B

Yeah, no, no of course, but so, but that has nothing to do with signing leases like so. If someone walks in right now, right, um you're, not increasing their rent, you're, establishing a new rent and you're, giving them away your contract. What you're saying is what happens when that person comes and accepts a voucher, and now you have to accept those terms and now with a different date. So what happens? Is that you're? Basically, let's just say you, you moved them in in January.

B

They didn't get an assistance until March and then we have now an agreement saying from March to March. So next year you can leave them on a month-to-month, January, February, March and then renew yours March, so that it can match ours. If that was I, think that's what was happening because.

C

We also have to do recertifications like it's just gonna mess.

B

C

No well you all.

B

Have been doing it somehow, so let I think you need to go back. We keep changing dates and stuff, go back and research. How you've been doing it because you've been doing it. It probably wasn't right, yeah so again go back research, it find out what was being done and we and we can have this discussion and see what needs to be adjusted because I think that's what and again- and this is where some of these issues have been arising, because maybe they weren't done the way they were supposed to be done.

D

Apparently, that's how it looks like.

A

Okay, we're gonna. If there's any more comments, we're gonna move to the commercial leases foreign.

E

um Capstone negotiated the uh the the lease amount which is in the amounts, are there, there is 767 for one unit and 1500 for the other one. um So these we need the the signature for the board. Well,.

B

And and I want to make another comment so to Sarah's um comment of that she's not gonna, discuss the commercial leases. I know this has been kind of um a back and forth with Capstone um and I I. Think as a board. You all need to review the the contract that you have with Capstone right now, because they are stating that they're not responsible for commercial leases and that they don't enter into commercial leases and.

A

um They've always taken care all the.

C

Time we're taking care of them, but we're not drawing up a contract for them like we'll, do the maintenance and all of that stuff we'll collect the rent, we'll post the rent, but we are not coming up with this contract. That's what Capstone is not wanting to do, because we don't specialize in commercial leases.

B

But yet when the the contract was taken, it was taken for the whole apartment complex, including the commercial spaces, so so that is what I think the Board needs to look at the contract, maybe even higher. um You know some outside counsel, um to review this and see what you need to change in that contract.

B

I mean it's up for, obviously it it hasn't been renewed in many years, and- and this is something that, as a city, we're I know, we've been helping helping but wish we should not be drawing up leases for the corporation either. So I think the board is gonna have to find a mechanism that someone can assist them or or figure out. You know, maybe talking to um Capstone and and seeing you.

A

Know what other thought under the agreements were and.

B

For many years, I mean this.

A

Many years.

E

They've been doing it, so they they take the payments, they do. The maintenance on the units.

F

They negotiate.

E

The the needs you know correct, uh but everything.

C

Else was Mr, ski is Mr Skeen. He was the person before right, but he was.

B

Not part of this board.

C

Well, he was the one Sarah said that he was the one that was making these lease contracts.

B

He was the other partner in the partnership right.

A

But Mr Skin hasn't been in the picture for over.

F

Seven years, ten years, yeah.

C

I think when I'm not sure how it went or how we figured out or how Capstone the risk management found out that we were doing it, but as soon as they found out, they said we are not allowed to do that. So I I, don't know if it was just. Maybe Sarah was doing them or if Sonia was doing them. But um as soon as the risk management department in Capstone found out, it was just shut off like we don't specialize in commercial leases, so they didn't want um to handle that.

B

So if you notice they're not signing off on the contract either, so this is a a lease straight with the board right and and the tenant. But.

C

We will stay in communication with them. We will do their maintenance request, uh collect the rent, any questions.

A

Just shoot on doing you're not doing the contract correct, correct.

G

B

And we had provided this lease because we had helped the board with the restaurante, so it kind of just um changes.

A

B

It up use the same one.

D

So is this rent for the palomitas going from what to to what this is the current rate right now? What is the current rate.

C

Right now, it's 567.

E

E

and it's one of the units they have two units. This is the one that's.

B

So if you recall a few years ago, you all did request that um Capstone increased the rent and, and it didn't I, don't think it. It happened. So now they are they've advised them that they will be increased, but then I think also. You know the pandemic happened and and I think um you know there was some leniency there, but they don't have a current lease.

A

What's the what was the previous rate.

C

A

One to fifteen hundred and that's for one year.

D

And and it has an expiration date of 2026.

E

Three-Year contract.

D

Is that because it's been three years or why are we going three years on this one? We.

E

Did three years for the.

B

I think we just put three years because the the restaurant has.

E

A three year contract that I think the rest of this.

E

Unless, unless y'all.

B

Want to do something change.

E

Right now, it's 1300.

A

Before we're gonna increase.

C

It was 400, but there was a little bit of Fishback and they're. Like can you work with us.

E

You wanna you wanna change us for one year and and then and then.

D

We do it for another, one of the one I think we want to do one year, because then it doesn't give us any room for the next 36 months to increase and as.

E

A

We'll have a motion, but.

D

I'm curious about this other one there's two units it's connected together.

C

There's one right here.

A

One expires yeah and he must have.

C

Got it at a later time and then that one expires.

D

Okay, so that other one is going to come back to us for approval and they can increase the rent off I, think it's June! Okay! So right now we're gonna go from 567 to seven.

A

Six: seven seven, seven.

D

Sixty seven I know we heard 200, so it's both pretty much 200.

F

A

But actually have this one income.

A

Once you put these two together, they're gonna, be about yourself. This one's gonna be a little bit, but this is two units, but.

C

This one's there apart he's actually the for the palette, he's actually paying more for the two units. Okay,.

A

D

uh One year, yeah.

A

One year on both commercials and then once we renew the other one for the palomitas, let's make them expire the same as this one, so that we renew everything. At the same time,.

D

So the other one, the second.

A

For the second Corner, not for this one, but for them for the other one, okay, we're.

E

Gonna try to have a breakout of uh the files to change them to one here so see we can have inside okay.

A

So we're still going to make a motion to keep them as they are, except for the uh expiration date. We're gonna do them for one year uh that that's the motion. That's on the floor, uh Montoya and I'll. Second, that everybody in favor aye party against ocean carries we'll keep them the same, but just change it to a one year.

A

That's right, the.

B

Restaurant we gave them a three year for the three yeah, but I think there was intervals.

A

Different rents, like yeah different increases already.

B

B

um No, they I, don't know if they've contacted you all yeah.

D

I think that at 10. yeah, because they close like Monday yeah, but they close from three to five.

C

I believe Mondays and Tuesdays I.

B

Know they're requesting um they're working on a beer and wine um license so um we'll see I mean right. Now we We There is beer and wine served like across the street right. So, um okay, we'll we'll see if they don't get any pushback, because I know some of the residents sometimes call and complain about the music across the street. You know so, but but I'm sure the advice is on on any complaints that they get.

A

Any other comments, questions or nine item number six. If not, uh we also have a calendar with the dates for the meetings for 2023.

A

uh If you want to review them, if you have any comments.

B

Are you, okay with those the noon? Meetings are still good with everyone. I.

A

Think no meetings are the best for all board members. Yes,.

E

Yeah it was, it was requested uh that the first six months yeah once a month and then the next six months once every two months, correct, correct.

A

uh If nothing else we're gonna close citizen, Commons, there's no citizens present at this time and if no other comments or questions, if we can have a motion to adjourn, my name is Montoya second by Mr Oscar Lopez about in favor.

A

Thank you, everybody. Thank you.