Minutes, August 18, 2020
Minutes from the August 18, 2020 Clarksville CDC Monthly Meeting
In support of citywide efforts to reduce the spread of coronavirus (COVID-19), the August 18, 2020 Monthly Meeting will be held via Zoom.
Board members in attendance: Paula Hern, Kim O’Brien, Mary Reed, Chris Thomas, and Gregory Tran
Others in attendance: Rose Gabriel
1. On a motion by Paula, seconded by Chris, the minutes from the July 21, 2020 were approved.
2. Rose presented the monthly financial reports. Our checking account balance as of July 31 was $6896 (which includes the EIDL funds), our savings/money market balance was $177,667 (which includes $152,653 in Home Base/OWANA affordable housing funds dedicated to specific projects: $100,000 for 1611 W. 10th and $52,653 for other repairs; the remaining $25,014 is unrestricted.) We saw a $5077 net operating loss for the month.
The Home Base loan has been forgiven. It was on our balance sheet as a liability. The money was used to build the Theresa Street house.
The Finance Committee decided to renew our $50,000 Line of Credit with Frost Bank.
As a result of the internal audit, some adjustments have been made (undeposited funds we’ve been carrying as a liability for years.)
The $7500 in PPP does not show on the reports because it is a line of credit. Rose is working with the auditor to reflect this.
The Finance Committee met on August 13, 2020. Minutes from that meeting appear at the end of these minutes.
3. Rose Gabriel, Director of Property and Finance, presented the monthly report.
The make ready was completed on 1009A Charlotte. Air conditioners were replaced at 3 units. Two tenants are behind in rent, but will get current. Casa Marianella has provided a grant to make up for back rent for a tenant who could not work due to a (COVID-related) visa issue.
Leases were renewed for 3 tenants, effective August 1. One rent was reduced $105/month. Mary asked what the basis for renewal was. Rose replied they were all good tenants who pay their rent on time and still qualify.
Kim asked about the financial effects of COVID on our bottom line due to rent forgiveness. Rose will supply this information.
This month’s report has a new format. Mary asked the board to look over the report to see if it includes everything they want to see, and if they have any other suggestions. She will compile the information and share with Rose.
4. Mary presented a report that BJ Friedman, CCDC Treasurer, prepared after discussing our federal loans and grants with SCORE volunteers (Service Corp of Retired Executives.)
As background, CCDC received $7500 from the Payroll Protection Program (PPP). This money is forgivable and can be used for salaries. We received an additional $8,500 in Economic Injury Disaster Loan (EIDL) funds, made up of a $1,000 forgivable grant and a $7,500 non-forgivable loan. These funds can be used for salaries, but cannot be combined with other funds to cover the same payroll periods. Both programs cover expenses incurred February through June 2020.
The upshot is that the burden of keeping track of the EIDL money, combined with the interest that will be incurred, does not make it worth us to keep these funds. We will owe interest on the time we held the money, but these costs will be more than covered by the EIDL forgivable grant. The PPP money will be used.
The Finance Committee recommends repaying the loan as soon as possible. On a motion by Kim, seconded by Chris, the Board approved the return of the $7,500 EIDL non-forgivable loan.
5. Rose and BJ discussed the 2019 CCDC internal audit results. There were no findings. Since the auditor has worked for us for a number of years and knows our operations well, she was able to get deeper into compliance issues. She suggested 2 operational improvements: 1) Creating a detailed document showing the restrictions on each property, to be updated annually; and 2) Creating a single template for determining rents for families. The second suggestion is difficult to implement because of differences in income, tax filings, etc. The auditor also suggested that we build in the utility allowance that HUD uses. This would mean a reduction in rents.
Mary commented that there is a need for the board to be more involved in the workings of the corporation by becoming more knowledgeable regarding our finances. The audit recognizes this.
There was a motion by Paula, seconded by Kim, to approve the audit findings, so that the auditor can finalize her report and file it. The motion passed unanimously.
6. Rose reported on progress on the new CCDC house at 1611 W. 10th Street. We have submitted plans for Development Review and have received our tap permit (the first step.) Work is progressing with the Austin Housing Finance Corporation in securing our loan. Mary hopes to sign the paperwork this month. A neighbor’s tree fell on the property. He has made arrangements to have it removed.
7. Rose reported on progress with the Haskell House repairs. Roofing material have been approved by the city Historic Preservation office, and ordered. The contractor she had lined up to perform the other work is no longer available so she will be looking for someone else.
8. No Other Business was discussed.
9. The Board did not meet in Executive Session.
Actions taken via Electronic Vote:
8/14/20: The Board authorized Mary Reed, CCDC President, to send letters in support of approval of historic zoning for 1607 W. 10th Street, AKA the Mary Baylor House. This item required immediate action and could not wait until the August board meeting.
8/11/20: The board approved a resolution authorizing CCDC Board President Mary Reed to execute the Austin Housing Finance Corporation loan documents related to construction of a new affordable single-family home at 1611 West 10th Street and a document related to the ground lease for the City-owned land located there. This item required immediate action and could not wait until the August board meeting.
7/29/20: The board approved revisions to the CCDC’s Policy and Procedures document. The revisions were discussed and approved in concept in Executive Session at the July board meeting. This item required immediate action and could not wait until the August board meeting.
7/23/20: The board approved hiring Samuel and Jaime Romero to complete the make-ready of 1720 B W. 11th. The cost is to be include $2,300 for interior painting and $1,000 for exterior painting (both including materials), and a daily rate of $400 for remaining items on the approved Scope of Work, not to exceed $1200 (3 days.) CCDC will be responsible for $1,800 in materials, making the total projected cost of the make-ready $6300. Rose had tried to obtain bids for this work, but the 5 contractors contacted were unresponsive. Due to necessity of completing this work as soon as possible so that a new tenant family can move-in, the Board agreed to waive the 2-bid requirement. This item required immediate action and could not wait until the August board meeting.
Minutes from August 13, 2020 Finance Committee Meeting
Attending: BJ Friedman, CCDC Treasurer, Mary Reed, CCDC President, Rose Gabriel, CCDC Director Property and Finance
BJ and Mary reviewed the financials for June and asked Rose for a few clarifications.
BJ compared the CCDC’s July bank statement against deposit slips, debit transactions and receipts for that month.
Rose provided an update regarding the status of rents for July and what she anticipated for August. She also reported that the tenants at 1007A Charlotte received a $1,000 Visa card that they can use to pay their rent as well as a $500 HEB gift card. Both cards were through Casa Marianella’s RISE funds
BJ, Rose and Mary discussed whether there were any significant repairs or improvements needed at CCDC properties. Rose noted that a beam at 1009 Charlotte Street (Pier and beam construction) needs to be replaced and the house needs to be leveled. She has a $5K bid for the work, but will find out if there is a less expensive alternative to leveling the entire house.
BJ told the Mary and Rose about the results of her zoom meeting with two members of SCORE. Although the PPP money was discussed the focus of meeting was the EIDL money, including what the CCDC could use it for and what would be involved if the CCDC decided to send the money back. At the end of their discussion, the committee members decided to recommend to the board that the CCDC not keep the EIDL money given its limited use to us and the fact that meeting the federal reporting requirements would add to Rose’s workload.