Board of Commissioners Meeting - Home Forward · December 13, 2011 at the Multnomah County Building – Commission Room 501 SE Hawthorne Blvd, Portland at 6:45 P.M. Please note that

Home Forward kicked off its annual employee giving campaign with a dessert auction that raised almost $800 for Snowcap, an agency in East County that provides food and services for our residents and others who need their help.

Board of Commissioners Meeting Location:

Multnomah County Building 501 SE Hawthorne Blvd Portland, Oregon Date & Time:

December 13, 2011 6:45 PM homeforward.org

INDEX FOR ELECTRONICALLY DISTRIBUTED BOARD OF

COMMISSIONERS BOARD MEETING PACKET FOR

DECEMBER 13, 2011

PAGE 2 INDEX

PAGE 3 NOTIFICATION LETTER

PAGE 5 AGENDA/CONSENT CALENDAR

PAGE 7 MINUTES

PAGE 16 EXECUTIVE DIRECTORS REPORT

PAGE 21 STAFF REPORTS

PAGE 37 DASHBOARD REPORT

PAGE 39 RESOLUTIONS

Home Forward Board of Commissioners Packet December 2011

2

PUBLIC NOTICE:

Home Forward BOARD OF COMMISSIONERS

will meet on Tuesday, December 13, 2011

At 6:45 pm At the Multnomah County Building – Commission Room

501 SE Hawthorne Blvd, Portland


3

TO: COMMUNITY PARTNERS FROM: STEVE RUDMAN DATE: December 8, 2011 The Board of Commissioners of Home Forward will meet on Tuesday, December 13, 2011 at the Multnomah County Building – Commission Room 501 SE Hawthorne Blvd, Portland at 6:45 P.M. Please note that the meeting will begin 30 minutes later than our usual start time. The commission meeting is open to the public.

The meeting site is accessible, and persons with disabilities may call 503-802-8423 or 503-802-8554 (TTY) for accommodations (e.g. assisted listening devices, sign language, and/or oral interpreter) by 12:00 pm (noon), Friday, December 9.


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CONSENT CALENDAR

MINUTES


5

BOARD OF COMMISSIONERS MEETING

MULTNOMAH COUNTY BUIMULTNOMAH COUNTY BUIMULTNOMAH COUNTY BUIMULTNOMAH COUNTY BUILDING LDING LDING LDING –––– BOARD ROOMBOARD ROOMBOARD ROOMBOARD ROOM

501 SE HAWTHORNE BLV501 SE HAWTHORNE BLV501 SE HAWTHORNE BLV501 SE HAWTHORNE BLVDDDD

PORTLAND, OREGONPORTLAND, OREGONPORTLAND, OREGONPORTLAND, OREGON

December 13December 13December 13December 13, 2011, 2011, 2011, 2011

Approximately 6:45Approximately 6:45Approximately 6:45Approximately 6:45 PMPMPMPM

6:156:156:156:15----6:45 PM6:45 PM6:45 PM6:45 PM

EXECUTIVE SESSIONEXECUTIVE SESSIONEXECUTIVE SESSIONEXECUTIVE SESSION

The Board will meet in Executive Session pursuant to ORS 192.660 (2)(h)*

6:45 PM6:45 PM6:45 PM6:45 PM ((((Approximately)Approximately)Approximately)Approximately)

INTRODUCTION AND WELINTRODUCTION AND WELINTRODUCTION AND WELINTRODUCTION AND WELCOMECOMECOMECOME

PUBLIC COMMENTPUBLIC COMMENTPUBLIC COMMENTPUBLIC COMMENT

General comments not pertaining to specific resolutions. Any public comment regarding a specific

resolution will be heard when the resolution is considered.

MEETING MINUTES (MEETING MINUTES (MEETING MINUTES (MEETING MINUTES (ConsentConsentConsentConsent Calendar/Minutes TABCalendar/Minutes TABCalendar/Minutes TABCalendar/Minutes TAB))))

TopicTopicTopicTopic

Minutes of November 15, 2011 Board of Commissioners Meeting

REPORTS / RESOLUTIONREPORTS / RESOLUTIONREPORTS / RESOLUTIONREPORTS / RESOLUTIONSSSS

Following Resolutions:

11111111----11112222 TopicTopicTopicTopic Presenter/POCPresenter/POCPresenter/POCPresenter/POC Phone #Phone #Phone #Phone #

REPORTREPORTREPORTREPORT Executive Director’s ReportExecutive Director’s ReportExecutive Director’s ReportExecutive Director’s Report

Steve Rudman 503.802.8455

PUBLIC PUBLIC PUBLIC PUBLIC

HEARINGHEARINGHEARINGHEARING

FYFYFYFY2013 Moving To Work Plan2013 Moving To Work Plan2013 Moving To Work Plan2013 Moving To Work Plan Betty Dominguez 503.802.8506

REPORTREPORTREPORTREPORT Oregon Legislative UpdateOregon Legislative UpdateOregon Legislative UpdateOregon Legislative Update Ryan Fisher, Christel

Allen, NW Public

Affairs


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00001111 Authorize Authorize Authorize Authorize Kelly Place Transfer Kelly Place Transfer Kelly Place Transfer Kelly Place Transfer

Ownership to Home Forward due to the Ownership to Home Forward due to the Ownership to Home Forward due to the Ownership to Home Forward due to the

Expiration of the PartnershipExpiration of the PartnershipExpiration of the PartnershipExpiration of the Partnership

Molly Rogers

Chris Hughson

503.802.8437

503.802.8483

02020202

Authorizes AAuthorizes AAuthorizes AAuthorizes Acquiscquiscquiscquisition of Parcel Number ition of Parcel Number ition of Parcel Number ition of Parcel Number

R239161 LR239161 LR239161 LR239161 Located at NE Beech Streetocated at NE Beech Streetocated at NE Beech Streetocated at NE Beech Street

Mike Andrews

503.802.8507

03030303 Authorizing the Execution and Delivery Authorizing the Execution and Delivery Authorizing the Execution and Delivery Authorizing the Execution and Delivery

of Documents with theof Documents with theof Documents with theof Documents with the Local Blended Local Blended Local Blended Local Blended

Subsidy (LBS) Revenue Structure Subsidy (LBS) Revenue Structure Subsidy (LBS) Revenue Structure Subsidy (LBS) Revenue Structure aaaand nd nd nd

Operation of Operation of Operation of Operation of MadronaMadronaMadronaMadrona Place ApartmentsPlace ApartmentsPlace ApartmentsPlace Apartments

Mike Andrews

Theresa Auld

503.802.8507

503.802.8319

04040404 Authorizing the Execution and Delivery Authorizing the Execution and Delivery Authorizing the Execution and Delivery Authorizing the Execution and Delivery

of Documents with the Local Blended of Documents with the Local Blended of Documents with the Local Blended of Documents with the Local Blended

Subsidy (LBS) Revenue Structure and Subsidy (LBS) Revenue Structure and Subsidy (LBS) Revenue Structure and Subsidy (LBS) Revenue Structure and

Operation of the Apartments Operation of the Apartments Operation of the Apartments Operation of the Apartments at Bud at Bud at Bud at Bud

Clark CommonClark CommonClark CommonClark Commonssss

Mike Andrews

Theresa Auld

503.802.8507

503.802.8319

MOTIONMOTIONMOTIONMOTION Final Action Arising from Executive Final Action Arising from Executive Final Action Arising from Executive Final Action Arising from Executive

SessionSessionSessionSession

Mike Andrews 503.802.8507

ADJOURNADJOURNADJOURNADJOURN

EXECUTIVE SESSIONEXECUTIVE SESSIONEXECUTIVE SESSIONEXECUTIVE SESSION

*The Board of Commissioners of Home Forward will meet in Executive Session pursuant to ORS

192.660(2)(h) to consult with counsel concerning the legal rights and duties of a public body with

regard to current litigation or litigation likely to be filed. Only representatives of the news media and

designated staff are allowed to attend. News media and all other attendees are specifically directed

not to disclose information that is the subject of the session. No final decision will be made in the

session.

THE NEXT MEETING OF THE NEXT MEETING OF THE NEXT MEETING OF THE NEXT MEETING OF THE BOARD OF COMMISSTHE BOARD OF COMMISSTHE BOARD OF COMMISSTHE BOARD OF COMMISSIONERSIONERSIONERSIONERS

The next Board of Commissioners meeting will be Tuesday, January 17, 2012. This meeting will take

place at the Multnomah County Building, 501 SE Hawthorne Blvd., Portland.


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BOARD OF COMMISSIONERS MEETING

HOME FORWARDHOME FORWARDHOME FORWARDHOME FORWARD

135 SW ASH STREET, P135 SW ASH STREET, P135 SW ASH STREET, P135 SW ASH STREET, PORTLAND, OR 97204ORTLAND, OR 97204ORTLAND, OR 97204ORTLAND, OR 97204

November 15November 15November 15November 15, 2011, 2011, 2011, 2011

COMMISSIONERS PRESENTCOMMISSIONERS PRESENTCOMMISSIONERS PRESENTCOMMISSIONERS PRESENT

Chair Lee Moore, Vice Chair Harriet Cormack, Vice Chair Shelli Romero, Treasurer David Widmark,

and Commissioners Brian Lessler and Jim Smith

STAFF PRESENTSTAFF PRESENTSTAFF PRESENTSTAFF PRESENT

Steve Rudman, Anita Yap, Peter Beyer, Robert Dell, Betty Dominguez, Rebecca Gabriel, Pamela

Kambur, Shelley Marchesi, Dianne Quast, Melissa Richardson, Jill Riddle, Todd Salvo, Celia

Strauss

Chair Lee Moore called the meeting to order at 6:20 PM.

PUBLIC COMMENTPUBLIC COMMENTPUBLIC COMMENTPUBLIC COMMENT

No attendee requested to deliver public comment.

MEETING MINUTESMEETING MINUTESMEETING MINUTESMEETING MINUTES

Minutes of Minutes of Minutes of Minutes of October 18October 18October 18October 18, 2011, 2011, 2011, 2011

Commissioner Brian Lessler moved to adopt the minutes. Vice Chair Harriet Cormack seconded

the motion.

The vote was aThe vote was aThe vote was aThe vote was as follows:s follows:s follows:s follows:

Chair Lee Moore Chair Lee Moore Chair Lee Moore Chair Lee Moore –––– Aye Aye Aye Aye

Vice Chair Harriet Cormack Vice Chair Harriet Cormack Vice Chair Harriet Cormack Vice Chair Harriet Cormack –––– AyeAyeAyeAye

Vice Chair Shelli RomeroVice Chair Shelli RomeroVice Chair Shelli RomeroVice Chair Shelli Romero –––– AyeAyeAyeAye

Treasurer David WidmarkTreasurer David WidmarkTreasurer David WidmarkTreasurer David Widmark –––– AyeAyeAyeAye

Commissioner Brian Lessler Commissioner Brian Lessler Commissioner Brian Lessler Commissioner Brian Lessler –––– AyeAyeAyeAye

Commissioner Jim Smith Commissioner Jim Smith Commissioner Jim Smith Commissioner Jim Smith –––– AyeAyeAyeAye


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REPORTREPORTREPORTREPORT

Executive Director’s ReportExecutive Director’s ReportExecutive Director’s ReportExecutive Director’s Report

Steve Rudman introduced the evening’s agenda to the Board, including a report regarding work

Home Forward was doing in East County, potential related changes in Section 8 administration to

increase participants’ choices for where to live, and authorization to execute a labor agreement.

Rudman noted that it took a lot of hard work to get to the proposed agreement. He added that

the agreement would help control operating expenses, which was important because of projected

cuts in the federal budget. Rudman also pointed out that Home Forward’s redesigned website

would be deployed the following Monday.


East County UpdateEast County UpdateEast County UpdateEast County Update

Betty Dominguez presented the report to the Board. Dominguez noted that engagement with East

County was in accordance with Home Forward’s Strategic Direction 4: Role in the Regional

Housing Market. Thus, she has been cultivating Home Forward’s relationship with Gresham. She

has had great response and support from the City Councilors with whom she has met so far.

Louise Dix, the Community Revitalization Coordinator that Home Forward co-funds with the City of

Gresham, has drafted an update to the City’s Housing Policy. Dix joined the Home Forward board

for the meeting. Dominguez will begin attending meetings of Gresham’s Community Development

and Housing Subcommittee in November. Home Forward will make efforts to get youth from

Home Forward programs involved in Gresham’s Youth Advisory Committee. And, more outreach

will be done with the leadership of Gresham’s Urban Renewal and Urban Design and Planning

Departments.

Dominguez pointed out Home Forward’s latest development project in Gresham, Madrona Place.

The property has 45 units, new community space, access to nearby space operated by Human

Solutions, and a resident services position shared with the nearby Human Solutions property.

Upon opening the property’s waitlist recently, 800 households applied, which speaks to the need

for affordable housing in the community. Chair Lee Moore commended the efforts of Home

Forward staff to communicate the opening of the waitlist to potential applicants.

Dominguez highlighted how Home Forward staff has begun working to identify program

participants to refer to small business development programs at Mount Hood Community College.

Dominguez noted Commissioner Jim Smith’s efforts to support this initiative. Commissioner Smith

attributed the initiative’s success to Jerry Walker.

Dominguez lauded the efforts of site staff to foster the success of youth and households. She

summarized the remainder of the report included with the Board’s meeting materials and noted

that some community leaders still harbor negative perceptions of affordable housing, so Home

Forward still had much work to do to overcome those perceptions.


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Chair Moore suggested that records from Gresham’s rental property inspection program could be

used to counter perceptions about Home Forward’s programs. Treasurer David Widmark noted

that data from inspections was being recorded. Dominguez added that the City’s inspections

were not focused on affordable properties. Jill Riddle noted that Home Forward had been working

with Gresham to eliminate the potential for Section 8 inspections to duplicate the City’s

inspections.

Riddle directed the Board’s attention to maps included in the meeting materials that showed the

concentrations of households using Section 8 vouchers by zip code. The maps included the

change over the last decade and show a trend of voucher holders moving east. Over the course

of the meeting, Commissioner Smith verified the trend.

Riddle noted that Home Forward utilizes all of its Section 8 vouchers. Commissioner Brian Lessler

asked what would keep a housing authority from utilizing all of its vouchers. Riddle replied that

some authorities do not have enough participating landlords or are in a rental market without

enough units or with rents too high. She added that 80 to 85% of the households that are

awarded vouchers have been successful in using them. In addition to supporting the high

utilization of Section 8 vouchers, the program seeks to ensure that voucher holders have safe and

adequate housing, so the program inspects units for conformance with the heightened standards

of the City of Portland.

Commissioner Lessler asked Riddle’s opinion on why more multifamily housing was not being

developed given the shortage of it that has developed over the last four years. Riddle replied that it

was a good time to develop new multifamily units, but what was likely driving voucher-holders’

movements was East County being the only area where voucher-holding households could afford

to rent single-family homes with yards. Home Forward is reviewing its ability to provide participants

with the housing options they need in all areas of the county. A market study is underway to show

rent amounts in different areas of the county. In response to questions from Vice Chair Harriet

Cormack, Riddle confirmed that Home Forward tracked the actual moves of voucher-holding

households. She also noted that voucher turnover was at about 800 per year. If the market study

shows that Home Forward’s current payments standards for vouchers prevent voucher holders

from renting in certain areas of the county, Home Forward will have to decide if it should adjust the

payment standards in those areas.

Commissioner Lessler asked if raising payment standards would result in Home Forward serving

fewer people. Riddle confirmed that could happen and the potential for it would have to be

balanced against the goal of serving people throughout the county. She noted that staff would be

bringing the Board more data before officially asking for changes to payment standards. Chair

Moore and Commissioner Lessler commented on how the movement of vouchers reflects market


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conditions. Steve Rudman summarized that the map of voucher holders brings up many

questions; Home Forward recently altered payment standards for downtown Portland, after years

of having a single scale of payment standards; quantitative and qualitative studies of the

movements of voucher holders are underway; and the results of those studies will be brought to

the Board for discussion of potential reactions and repercussions. Riddle added that the

qualitative study consists of surveys to identify the reasons voucher-holders give for moving—so

that it can be determined whether changing payment standards would have any effect.

RESOLUTION 11RESOLUTION 11RESOLUTION 11RESOLUTION 11----11111111----01010101

Authorize the Renaming of Hillsdale TerraceAuthorize the Renaming of Hillsdale TerraceAuthorize the Renaming of Hillsdale TerraceAuthorize the Renaming of Hillsdale Terrace

Pamela Kambur presented the resolution to the Board. Home Forward’s Hillsdale Terrace

property is to be renamed as part of its redevelopment. Based on a determination by a renaming

workgroup that met over the summer, the recommended new name for the property was

“Stephens Creek Crossing.”

The workgroup included volunteers from the Community Advisory Committee (CAC), a broad

group of stakeholders. As part of the effort, letters were sent to several local organizations

soliciting suggestions for the new name. The workgroup reviewed many suggested names and

name combinations. It reached agreement on the name “Stephens Creek Crossing” because

Stephens Creek is under the property. Also, “Crossing” applied not only to the crossing of a

stream, but could also evoke positive connotations of both encountering opportunity at a juncture

in a resident’s life and a crossroads of different cultures.

When the name was introduced to the CAC in October, a member objected based on the name’s

potential to be confused with the Raz-Baack Crossing of Stephens Creek on a nearby trail.

Kambur met with representatives of the people for whom the trail crossing was named. They

indicated that any potential for confusion would be eased by additional signage for the trail

crossing. Home Forward has offered to contribute $1500 to signage for the trail crossing. The

objecting parties, via a Hillsdale Neighborhood Association resolution, have expressed that a larger

contribution would be needed for the signs, which can cost five or six thousand dollars, and asked

that the property not be renamed until the signs are in place. Portland Parks and Recreations has

funds for one sign and is waiting for its budget to allocate operations funding to the second sign.

Vice Chair Harriet Cormack said that she asked to table the resolution at the Board’s October

meeting so that additional outreach could be conducted. She believed Home Forward had put a

good faith effort into alleviating concerns over confusion. She noted that the CAC was told at its

November meeting that the Board would be asked to approve the name and no objections were

made. She moved to adopt the resolution. Commissioner Brian Lessler seconded the motion.


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The vote was as follows:The vote was as follows:The vote was as follows:The vote was as follows:


Vice Chair Harriet Cormack Vice Chair Harriet Cormack Vice Chair Harriet Cormack Vice Chair Harriet Cormack –––– Aye Aye Aye Aye

Vice Chair Shelli Romero Vice Chair Shelli Romero Vice Chair Shelli Romero Vice Chair Shelli Romero –––– AyeAyeAyeAye

Treasurer David Widmark Treasurer David Widmark Treasurer David Widmark Treasurer David Widmark –––– AyeAyeAyeAye

Commissioner Brian Lessler Commissioner Brian Lessler Commissioner Brian Lessler Commissioner Brian Lessler –––– AyAyAyAyeeee


Kambur said that Home Forward would send a letter to the Hillsdale Neighborhood Association

explaining the action taken. Vice Chair Shelli Romero asked if the resolution obligated the $1500

contribution. Kambur replied that it was not in the resolution, but would still be made available.


Authorizing the Issuance of Revenue Notes Evidencing a Revolving Line of Credit with Bank Authorizing the Issuance of Revenue Notes Evidencing a Revolving Line of Credit with Bank Authorizing the Issuance of Revenue Notes Evidencing a Revolving Line of Credit with Bank Authorizing the Issuance of Revenue Notes Evidencing a Revolving Line of Credit with Bank

of Americaof Americaof Americaof America

Todd Salvo presented the resolution to the Board. Home Forward previously had a line of credit

with Key Bank, which Key Bank had declined to renew. Up to this point, Home Forward had not

needed to establish a new line of credit because sales of scattered sites produced cash flow for

the organization. Because those funds are being spent down, a new line of credit is needed to

help with future developments.

Home Forward solicited proposals and received three responses. Bank of America’s response

was the best and was unanimously selected by staff reviewers. Details of the agreement were

summarized in the materials provided for the meeting. Salvo noted that Home Forward would

draw on the line of credit in order to bridge funding—most likely for development projects,

occasionally for payments to landlords when federal funding is late— not for payroll or operating

expenses.

Commissioner Brian Lessler asked if the Board would be requested to approve individual draws on

the line of credit. Salvo answered that the Board would be asked to approve particular uses of

funds, but not individual draws on the line of credit after those uses of funds were authorized.

Chair Lee Moore, Salvo, and Peter Beyer, Controller, clarified that uses of the line of credit would

regularly be reported to the Board in Home Forward’s annual financial audit. Rudman pointed out

that Home Forward has the cash flow to pay for the planned land purchase in support of a

development with LifeWorks Northwest, but would likely use the line of credit for similar situations

in the future. Salvo added that a draw on the line of credit requires Home Forward to show the

bank the source of permanent funding that will be used to repay the draw.


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Commissioner Jim Smith moved to adopt the resolution; Treasurer David Widmark seconded the

motion.

The vote was aThe vote was aThe vote was aThe vote was as follows:s follows:s follows:s follows:








Authorize Labor Contract with AFSCMEAuthorize Labor Contract with AFSCMEAuthorize Labor Contract with AFSCMEAuthorize Labor Contract with AFSCME

Rebecca Gabriel and Melissa Richardson presented the resolution to the Board. The resolution

authorizes Home Forward’s contract with its employees represented by the American Federation

of State, County, and Municipal Employees (AFSCME). The employees overwhelmingly ratified the

agreement one week prior. Home Forward’s previous contract with the employees expired, and

contract bargaining began, in March 2011. Gabriel felt the agreement was good in that it would

meet some of the objectives set out at the start of bargaining and would slow the growth of total

employee compensation, which also shows the commitment of the AFSCME employees to the

agency.

The terms include a lump sum payment and leave time, as opposed to automatic wage increases;

an increase to the share of health insurance premiums covered by the employees; and a delay of

longevity pay until employees reach 21 years of employment. Gabriel clarified for Vice Chair Shelli

Romero that longevity pay was recognition of an employee’s having been with the agency for a

long period of time. Wages and up to two other articles may be re-negotiated in the third year of

the agreement. The agreement also restructures positions and reallocates them to pay grades in

order to align with a classification and compensation study Home Forward conducted in 2010.

Gabriel noted that the agreement would provide operational efficiencies in that it directs annual

performance reviews to be done before the start of the fiscal year, which will help align employee

performance objectives with agency objectives. The negotiations produced discussion regarding

moving to merit-based pay. The agreement also provides that Assistant Property Managers will no

longer live in public housing units and reduces the compensatory time earned by employees

represented by AFSCME but exempt from the Fair Labor Standards Act.

Gabriel acknowledged that negotiating the contract was a difficult and protracted process, but felt

that AFSCME and Home Forward established a base of trust that would help in future negotiations.


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The contract would increase Home Forward’s costs 2.2% over the next three years, subject to the

outcome of re-opened negotiations.

Vice Chair Harriet Cormack asked for clarification on how the agreement changed the wage

schedule. Gabriel responded that the agreement covers 135 employees in 42 wage

classifications. One quarter of those were affected by the reclassification, in part because the

agreement reduced the number of job classes. Ten to twelve classifications moved up in the

schedule and 30 people were affected. Melissa Richardson noted that employees saw no change

if their current wage was within the range of their new classification. Gabriel added that, if an

employee was making more than their new wage range, their compensation was frozen until the

pay range increases. Gabriel clarified for Chair Lee Moore that the additional leave time was a one-

time arrangement.

Vice Chair Cormack asked what a 2.2% increase in costs would equate to. Todd Salvo said that it

would equate to $300,000 to $350,000.

Commissioner Brian Lessler thanked Gabriel for the memo clarifying public comments regarding

median income made at the September Board meeting.

Vice Chair Shelli Romero moved to adopt the resolution; Treasurer David Widmark seconded the

motion.

The vote was as follows:The vote was as follows:The vote was as follows:The vote was as follows:








Second QuaSecond QuaSecond QuaSecond Quarter Budget Ending September 30, 2011, Updaterter Budget Ending September 30, 2011, Updaterter Budget Ending September 30, 2011, Updaterter Budget Ending September 30, 2011, Update

Todd Salvo presented the report to the Board. Salvo pointed out the operating statement included

in the Board’s materials. The operating loss shown in the statement was less than actually

budgeted per Home Forward being above budget on operating revenue and below budget on

operating expenses. The public housing operating subsidy received from HUD was better than

anticipated. Overdue fee revenue from the Bud Clark Commons was received. And grants

provided unbudgeted funding, as did port-ins of Section 8 vouchers from other jurisdictions.

Favorable variances in budgeted operating expenses would likely be absorbed by the end of the

fiscal year. Other income and expenses varied from the budget due to unanticipated interest


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income and differences in capital contributions, which are always difficult to predict. The net

assets statement showed changes related to settling the financing for the Bud Clark Commons

into its final form. Salvo noted that cash reserves are healthy now, but will decline over the next

several years. Steve Rudman added that much of the balance was already obligated.

Steve Rudman announced that Home Forward would hold its annual awards banquet on

December 8. Invitations would be sent to members of the Board. He also reminded Board

members that the next Board meeting would be on December 13, earlier than the regularly

scheduled date.

ADJOURNADJOURNADJOURNADJOURN

There being no further business, Chair Lee Moore adjourned the meeting at 7:55 PM.

EXECUTIVE EXECUTIVE EXECUTIVE EXECUTIVE SESSIONSESSIONSESSIONSESSION

Following adjournment, the Board of Commissioners of Home Forward did not meet in Executive

Session pursuant to ORS 192.660(2).

Attached to the Official Minutes of Attached to the Official Minutes of Attached to the Official Minutes of Attached to the Official Minutes of Home ForwardHome ForwardHome ForwardHome Forward are all Resolutions adopted at this are all Resolutions adopted at this are all Resolutions adopted at this are all Resolutions adopted at this

meeting, together with copies of mmeeting, together with copies of mmeeting, together with copies of mmeeting, together with copies of memoranda and material submitted to the Commissioners emoranda and material submitted to the Commissioners emoranda and material submitted to the Commissioners emoranda and material submitted to the Commissioners

and considered by them when adopting the foregoing resolutions. A taped recording of the and considered by them when adopting the foregoing resolutions. A taped recording of the and considered by them when adopting the foregoing resolutions. A taped recording of the and considered by them when adopting the foregoing resolutions. A taped recording of the

proceedings is also kept on file.proceedings is also kept on file.proceedings is also kept on file.proceedings is also kept on file.

Celia M. Strauss

Recorder, on behalf of

Steven D. Rudman, Secretary

ADOPTED: ADOPTED: ADOPTED: ADOPTED: DECEMBER 13DECEMBER 13DECEMBER 13DECEMBER 13, 2011, 2011, 2011, 2011

Attest:Attest:Attest:Attest: Home Forward:Home Forward:Home Forward:Home Forward:

Steven D. Rudman, Secretary Lee E. Moore, Sr., Chair


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EXECUTIVE

DIRECTOR’S

REPORT


16

MEMORANDUM

To: Board of Commissioners

From: Steve Rudman

Date: December 13, 2011

Subject: Executive Director’s Report

We will hold the public hearing for our Year 14 Moving to Work annual plan at this

month’s meeting. Other board business concerns approval of our Local Blended Subsidy

financing for two of our apartment communities.

In addition, I have asked Ryan Fisher and his colleague Christel Allen from Northwest

Public Affairs to join us and report on this year’s legislative session in Salem. Northwest

Public Affairs represents the Oregon Housing Authorities and does an excellent job for all

of us. They have strong relationships in our world, as they also represent community

action agencies statewide and Ryan is co-chair of the Human Services Coalition of

Oregon.

I just returned from a vacation week as part of an affordable housing study exchange in

Brazil. I was fortunate to be part of a joint delegation from the United States (HUD

officials and local practitioners) and South African (Minister of Housing from Cape Town).

We met with national and local officials and community groups in three cities and visited

several favelas (informal settlements/slums). Brazil has a growing economy and

international presence, especially with preparing to host both the 2014 World Cup and

2016 Olympics. I look forward to sharing some initial insights with you at the board

meeting.

Moving to Work Annual Plan

Each year, our annual plan details what we would like to accomplish using the

deregulation authority MTW gives us. The plan lays out new initiatives as well as plans

for activities for which we already have approval.


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It is fair to say that the upcoming MTW year, which begins with our new fiscal year in

April 2012, is more focused on refining and implementing existing initiatives than it is new

activities. Key among them is rent reform. We have been hard at work laying the ground

work for our start date of April 2012. We recently communicated with all of our public

housing residents, Section 8 participants and landlords, and community partners to let

them know when we will launch the program. We included a Q&A document with the

letters so that everyone would have the most current details, and we have established a

telephone hot line and email system to discuss questions and concerns. We will

communicate again in February, this time to let each household know what their

individual situation will be.

We are seeking approval from HUD for two new MTW activities this year:

• The ability for landlords to self-certify that they have made minor repairs

required by our inspections. This will streamline program requirements for

landlords and reduce our inspection costs.

• The ability to limit Section 8 participants from “porting” their vouchers and

moving to areas where voucher costs are higher. This will allow us to

contain program costs at a time when federal rent assistance funding is

under pressure. We will make exceptions for moves because of a job

opportunity, an educational or training program, or if a household has an

emergency that requires the move.

With our MTW authority, we have established a single fund for activities that meet MTW

objectives of increasing housing choice, helping families move to self-sufficiency, and

operating more efficiently. The plan highlights these activities, which include two new

programs that will be new to you:

• Domestic violence transfers: working in collaboration with other MTW-

authorized housing authorities and the local domestic violence system, we

are making it easier for affected families to move to another jurisdiction.

The program includes support from housing authorities and domestic

violence agencies on both sides of the move and up to $2,000 from Home

Forward for relocation assistance. We expect this program will mostly


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involve working with the four Washington state MTW agencies in Vancouver

and the Puget Sound area.

• Landlord incentive fund: in a tight rental market, continuing efforts to

attract landlords to the Section 8 program is more important than ever. We

are planning a one-year test of a program that will offer a one-time $100

payment for each unit a landlord leases to a voucher participant, up to 10

payments per multifamily complex. Eligible units must be located in zip

codes considered low-poverty areas and not have had a Housing Choice

Voucher tenant in the prior 24 months.

Local Blended Subsidy

We received approval from HUD in our current MTW plan for this approach to

underwriting the cost of operating our most deeply subsidized housing. The strategy

involves blending public housing subsidy with Section 8 subsidy for what then become

public housing units. This allows us to “turn on” unused public housing subsidy available

to us while at the same time ensuring that the units have enough funding to cover their

operating costs. With this approach, we can supplement public housing subsidy we

receive for a unit, which by itself is inadequate to fully cover operating costs. At the

same time, it uses less Section 8 funding than would be required if the unit was financed

solely with a project-based Section 8 voucher.

At the December meeting, we will be asking for your approval to proceed with local

blended subsidies for The Apartments at Bud Clark Commons in Portland and at the

Madrona Place apartments in Gresham. At the Bud Clark Commons, the mix will change

from 100 project-based Section 8 units and 30 public housing units to 130 public

housing units. At Madrona Place, which we purchased in 2010, all 46 apartments will

become public housing units as of January 1.

In both cases, the Section 8 funding that blends with the public housing operating

subsidy allows us to cover operating costs and ensure the properties are financially

sustainable. At the Bud Clark Commons, it also helps us contribute to funding the

intense level of support our very vulnerable apartment residents need, and it underwrites

a part-time resident services coordinator at Madrona Place, which is a family community.


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Upcoming Events

Our first work session of 2012 will be on January 4 at 5:00 p.m. here at Home Forward.

The January board meeting is on Tuesday, January 17 at 6:15 p.m. at the Multnomah

County building.


20

STAFF REPORTS


21

MEMORANDUM


From: Betty Dominguez, Program

Director, Policy & Planning


Subject: FY2013 Draft Moving to Work (MTW)

Plan Report

The purpose of this report is to present to the Board of Commissioners Home Forward’s draft

FY2013 MTW plan, and to provide an opportunity for comment by the public on the draft plan

which can be found in its entirety on the Home Forward website at

http://www.homeforward.org/home-forward/moving-to-work.

No widespread adjustments were made from last year’s plan; rather, this year’s plan primarily

involves updates to existing activities, to the Moving to Work Initiative Funds (MIF) strategies,

waitlist and inventory figures, etc. There are only two new activities proposed for this coming year.

The draft Plan was posted on our website on December 2, 2011, followed by a presentation to

community stakeholders on December 7, 2011. The Board of Commissioners also previewed the

draft plan at a work session on December 7th.

Home Forward’s designation as an MTW agency affords us regulatory relief in the administration of

Section 8 and public housing as long as all activities that use MTW authority support at least one of

the three objectives of MTW: reduce costs and increase efficiencies, increase housing choice for

low-income families and, provide incentives to families to become economically self-sufficient.

Last year, staff developed an ambitious set of programs and initiatives, most notably Rent Reform.

Next year is expected to be no less busy, but more focused on refining and implementing that

work. The two new activities which are proposed are briefly described below:

(1) “Landlord Self-Certification of Minor Repairs” which will allow landlords to self certify corrections

of four or fewer minor deficiencies as defined by Home Forward thereby increasing staff efficiency

and reducing costs to the agency (pg 11) and,


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(2) “Limiting Portability to Higher Cost Areas” designed to save the agency money by denying

portability moves to higher cost jurisdictions, with a few defined exceptions (pg 13).

Since their introduction last year, staff has continued to refine and modify the MIF initiatives. The

Board has received on-going updates on many of the initiatives throughout the past year, but you

will notice a few that have been added this year, namely: Domestic Violence Transfer Funds, VASH

Security Deposits, and a Landlord Incentive Fund.


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1

PRESENTED TO:

OREGON HOUSING AUTHORITIES

SEPTEMBER 2011

REPORT ON THE 2011 LEGISLATIVE SESSION


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2

2011 LEGISLATIVE SESSION

In November of 2010, Republicans made strong gains in the state House and Senate. Democrats’ grip on supermajorities in both chambers slipped to a one vote majority in the Senate, and an even split with Republicans in the House. Meanwhile, the recession continued to pinch the state between decreased revenue and increased need for services. Federal funds, which bailed out the state in 2009 expired, and the appetite for new revenue had been exhausted by a divisive income tax campaign. It was within this context that the 2011 legislative session began.

Throughout the session we met with legislators, leadership in both the House and Senate, and members of the Governor’s staff. We did so in order to keep a finger on the pulse of the whims of legislative process, and to ensure that the legislature was well informed of OHA’s successes, challenges and needs.

This report will provide an overview of our activity this session on behalf of OHA. While the challenges were great, OHA and the programs you operate are well respected and respected by legislators. The positive relationships that OHA directors have with their local elected representatives helps NW Public Affairs achieve your legislative goals. We are deeply appreciative of the time individual directors and staff dedicated to contacting legislators and coming to the Capitol when called upon. It is an honor to work on behalf of you and the thousands of lives you impact in your daily work.


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3

LEGISLATIVE GOALS

Below are the major legislative goals we identified leading into the 2011 Session along with brief notes regarding outcomes.

• Affordable Housing Tax Credit. – The primary goal for the 2011 legislative

session was to extend the sunset on the Oregon Affordable Housing Tax

Credit (OAHTC).

We were successful in extending the sunset of this critical tool for developing

and preserving affordable housing for an additional six years to January 1,

2020.

• Emergency Housing Account – One of the Housing Alliance’s priorities was

to protect critical statewide homeless and homeless prevention services.

We succeeded in protecting the current funding level. In comparison to many

other critical services, which received heavy reductions, this is a major

victory. Still, the funding for EHA is far outstripped by need, and this will

continue to be a top priority moving forward.

• Farmworker Housing Tax Credit – Extend the sunset on the Farmworker

Housing Tax Credit.

We were not able to extend this tax credit. Great pressure was put on all tax

credits this session, and there were questions about the efficiency of this

program that prevented its passage. This issue will return in 2012.

• Lottery Backed Bond funding for preservation of affordable housing –

As Oregon reaches its peak of expiring federal subsidies for affordable

housing, we wanted to secure state funding for preserving these subsidies

through the CFC.

We were successful in securing $5 million in Lottery Backed Bonds (LBB) for

this purpose, however this fell short of our initial expectations of $10 million

that was allocated by the Transportation and Economic Development Ways

and Means Subcommittee. The amount was reduced in the final stages of the

budget process as part of a Republican effort to reduce use of bonding. This

issue could be revisited in 2012, but will be extremely challenging.

• Temporary Assistance for Needy Families – Help protect this critical

resource for impoverished families.

The Governor’s Recommended Budget included deep cuts to TANF. As part

of the TANF Alliance, OHA worked to push back on the worst of the

reductions. More work remains to be done.


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4

OREGON AFFORDABLE HOUSING TAX CREDIT All issues this session were impacted by the dramatic shortfall projected in the budget. In addition to the usual pressure of funding services through the general fund, tax credits played a more prominent role in the fiscal debate this session. In the 2009 session, nearly all tax credits were assigned sunset dates, staggered over six years. This is an important accomplishment by the legislature because it requires a 3/5 majority to sunset a tax credit, whereas it only requires a simple majority to create one or extend one (reducing or sunsetting a tax credit is viewed statutorily as ‘raising taxes,’ thus requiring the 3/5 majority). While the Oregon Affordable Housing Tax Credit (OAHTC) was not due to expire until January 1, 2014, the Housing Alliance adopted the strategy of attempting to renew the sunset this session to ensure that there would be no disruption in the pipeline of projects that would need the OAHTC. This was a key argument for the OAHTC’s renewal, and one that earned the support of key legislators. The strategy had an additional benefit. Most tax credits that were expiring this biennium were not accounted for in the budget, meaning that their renewal would have a negative impact on the budget. Because the OAHTC was not set to expire for another biennium, its renewal had no impact on the budget, making a vote for it easier to take for legislators. Still, there was much scrutiny on all tax credits, and the OAHTC had two separate hearings in the House and Senate in policy committees before being referred to a specially convened “Joint Tax Credit Subcommittee.” The hearing focused on the nuts and bolts of the credit, how it operated, how efficiently it utilized public resources, and the value in brings to the state. One co-chair of the subcommittee opined after the hearing that ‘this is the standard to which all future tax credits should be held’. In the end, the bill extending the sunset (HB 2527) passed with unanimous support in the House and Senate, and will not be up for renewal again until 2019 (or 2017 if we adopt a similar strategy).


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EMERGENCY HOUSING ACCOUNT

Resources to end and prevent homelessness were at a high level of need entering the 2011 session. Increased numbers of homeless individuals and families, and expiring federal stimulus funding for Homeless Prevention and Rapid Re-Housing Program (HPRP) greatly increased the chasm between need and available resources. However, as the session approached, one revenue forecast after another downgraded the potential revenue for the state. The shortfall between available resources and the current service level of all general fund resources increased to $3.25 billion. As a result, the ability for advocates to successfully ask for additional resources, no matter how pressing the need, all but evaporated. When the Governor released his recommended budget just prior to the opening of session, he recommended “flat funding” for the two general funding streams in the OHCS budget that address homelessness, the Emergency Housing Account (EHA) and the State Homeless Assistance Program (SHAP). With other critical programs, such as state Medicaid and Temporary Assistance for Needy Families (TANF) slated for huge reductions, this recommendation was a terrific starting point for protecting existing resources. NWPA, in combination with the Housing Alliance, played a role in helping educate key legislators about the importance of EHA. The Ways & Means Subcommittee that approves the OHCS budget approved the current funding level, and forwarded that recommendation onto the full Ways & Means committee. At the end of session, the Co-Chairs of the full Ways & Means Committee took steps to guard against potential future downgrades to the revenue forecast, and held 7% of all general fund allocations into a special account. The Co-Chairs stated that should revenue forecasts hold flat, these funds would be released in February during the short session. Since the end of session, one new revenue forecast has been released. Wall Street volatility and European Banking insecurity drove the forecast down by nearly $200 million. Without significant increases in the revenue forecast, it is likely that most or all of that 7% hold back will not be released in February.

FARM WORKER HOUSING TAX CREDIT As discussed in the section on the OAHTC, the scrutiny on tax credits in the 2011 session played a strong role in the debate around the Farm Worker Housing Tax Credit. Like the OAHTC, the Farm Worker Tax Credit does not expire until 2014. Unlike the OAHTC, there was not as strong of an argument for the urgency of this tax credit to be renewed. As a result, it was not prioritized as high as the OAHTC by the tax credit subcommittee. While its renewal received approval from the policy


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committees in the House and Senate that reviewed it, the tax credit subcommittee never voted on it. Joint Committee on Tax Credit Co-Chair Ginny Burdick (D-SW Portland) felt that there were questions about the efficiency of the tax credit and that it may need to be tweaked. She didn’t feel that there was time in the 2011 session to adequately adjust the credit as she would like to see, so she tabled the issue until the 2012 session at the soonest. Members of the agricultural community and housing developers that utilize this credit will work in the interim with Sen. Burdick to position the FWTC for further consideration in 2012. NW Public Affairs will track these efforts and participate according to the direction of OHA.

LOTTERY BACKED BONDS FOR PRESERVATION

One of the key line items in the OHCS budget as recommended by the Governor was $10 million in Lottery Backed Bonds to preserve existing federal subsidies for affordable housing.

While the discussion between OHCS and OHA and other partners on how best to allocate preservation dollars (between “P” Preservation and “p” preservation) continues, all sides agree that resources need to be allocated to this important goal.

The Joint Transportation and Economic Development Subcommittee of Ways & Means approved a $10 million allocation in their budget, but that number still needed to be approved by the Joint Capital Construction Subcommittee of Ways & Means, which has final authority over all Lottery Backed Bond allocations.

On that subcommittee, House Republicans took a stand on “maxing out the state’s credit card”. They argued that just because we have a certain capacity to bond against doesn’t mean that we should utilize that entire capacity. Co-Speaker Hanna (R-Roseburg) led the charge on this issue, backed by Ways & Means Co-Chair Dennis Richardson (R-Medford).

To further aggravate the issue, The Oregon University System had several capital construction projects that had been pushed to this committee that put additional pressure on the available resources.

While House Republicans were not successful in cutting the total allocation of LBBs in half, they were successful in severely limiting them from the original proposals recommended to them by the Ways & Means subcommittees. In the case of the Preservation effort, only $5 million of the original $10 million was allocated.

The Housing Alliance will push for more dollars to be released in the 2012 session, but it will be a very difficult ask, especially if revenue forecasts don’t significantly improve.


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7

TEMPORARY ASSISTANCE FOR NEEDY FAMILIES (TANF)

There was great activity around TANF this session. Because this service impacts clients of OHA members, NWPA participated in the TANF Alliance to push back against the dramatic cuts that were proposed to TANF in the 2011 Session.

Here is a list of the final outcomes of TANF for the 2011-13 state budget as provided by the TANF Alliance:

• TANF five-year lifetime limit is maintained. We prevented the legislature from implementing the proposed 18-month TANF time limit which would have cut 7,500 families, and caused 11,000 children on TANF to face homelessness and possible foster care. By preserving basic cash assistance, we helped to keep families together, protect children, and reduce the number of children entering child welfare.

� Family Support and Connections (FSC) will continue to serve 5,000 TANF

families at risk of entering into child welfare, giving parents the skills to safely stay with their children. FSC provides voluntary home visitation and support services for families working on stability issues; supporting families while on TANF and reducing the number of children entering foster care.

� Additional domestic violence advocates in Children, Adults and Families (CAF) offices. The legislature invested resources to ensure more TANF families have access to domestic violence assistance, to protect victims and keep families together.

� Post-TANF assistance has been protected through June 2012. The $50 monthly Post-TANF benefit creates a bridge to stable employment for over 2,400 families. A new job brings additional costs such as transportation and clothing. Although this assistance has been protected for the first year, we need to work to restore Post-TANF for July 2012-June 2013.

� Parents as Scholars is maintained for current participants. Those not currently participating may still pursue higher education while on TANF through a Self Initiated Training Program, but they will not have assistance for transportation, child care and other costs that Parents as Scholars participants receive.

� JOBS services are partially maintained. The recently unemployed or those with some employment experience will still receive limited job search and training services for a 60-day duration. And teen parents will receive limited child care assistance to pursue their diploma or GED. Unfortunately, those with larger barriers to employment, such as mental health or addictions issues, will not receive services.


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� TANF Two-parent families will not be approved for child care. Both parents

can participate in JOBS services, but not overlapping hours. One of the adults will participate while the other provides care for the children and vice versa.

� Pre-SSI/SSDI “enhanced grants,” were eliminated. These funds provided upfront benefits to TANF families likely to qualify for Social Security Income (SSI) or Social Security Disability Income (SSDI) while their applications were being reviewed. These families will, however, still be eligible for basic TANF assistance. In addition, once approved for federal aid, participants will recoup the difference between TANF and their federal aid retroactively.

� Pre-TANF payments were reduced to basic TANF assistance. Families will no longer receive larger payments for housing or utilities costs to help prevent them from needing full TANF services. An individual receiving TANF will be expected to meet their housing and utility costs out of their monthly cash assistance.


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WORK FOR THE INTERIM

NWPA will continue to work with OHA and the Housing Alliance to identify key issues moving forward. There are several issues of interest to track during the interim:

• Potential MERS legislation – As many of you may have followed in the paper, there are complications with many of the foreclosures occurring in Oregon due to the use of MERS to track ownership of titles. Lending organizations used MERS to avoid paying filing fees with counties when transferring title ownership. A potential resolution of this issue could result in many document recording fees being paid retroactively, providing a boost to resources funded through the document recording fee increased passed in 2009.

• Realtors collecting signatures for pre-emption on Real Estate Transfer Tax – In addition to prohibiting the state from utilizing a RETT, the petition currently being circulated would also prohibit further increases to the Document Recording Fee. NWPA will closely track the progress of this initiative, and work with OHA and the Housing Alliance to determine appropriate actions.

• Farm Worker Housing Tax Credit – As discussed in the report above, NWPA will monitor any work done by partners on the renewal of this credit in the 2012 session and participate as appropriate.

• Lottery Backed Bonds for Preservation – An effort will be made to allocate additional resources for the purpose of preserving federally subsidies in the state using LBBs. Even with some significant improvements in revenue forecasts, this will be a heavy lift.


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Contract # Contractor Contract Amount Description DepartmentExecution

DateExpiration

Date

C1079 Benthin Engineering, Inc. $4,950 Alta Protection for Madrona Apartments DCR 11/4/2011 12/31/2011

C1080 Kilmer Voorhees & Laurick PC $10,000 Legal Services for Ashcreek &

Willowtree Apts.DCR 11/21/2011 3/31/2012

C1059 Benthin Engineering, Inc. $34,500 Survey Services for Hillsdale Terrace

Hope VI Revitalization; IRFP 09/11-142DCR 10/2/2011 12/31/2012

C1067Colliers International Valuation &

Advisory Services$3,200

Valuation Services for Property Located at NE Beech Street Site

DCR 10/6/2011 10/31/2011

C1060 Colette Holt & Associates $5,000 Consultant on Economic Participation

PolicyEXEC 10/18/2011 8/31/2012

C1015 R&H / Colas Construction LLC $65,350 Preconstruction Phase - Hillsdale

Terrace Hope VI RevitalizationDCR 11/7/2011 1/15/2014

C1072 Cochran Electric $10,687 Electrical & Fire Protection at Hawthorne

HouseREO 11/10/2011 2/1/2012

C1071 Omlid & Swinney $35,575 Fire Protection & Security at Hawthorne

HouseREO `11/14/11 2/1/2012

C1063 Able Fence Company $2,525 Additional Fencing Along South Property

Line at Madrona ApartmentsDCR 10/5/2011 11/30/2011

C1065 A-1 Integrity $1,800 Power Wash - Madrona Apartments DCR 10/5/2011 11/30/2011

C1069 Frahler Electric Company $68,877 Emergency Generator Replacement at

Holgate House; IRFB 09/11-143DCR 10/21/2011 12/31/2011

C1066 Otis Elevator $51,849

Elevator Maintenance Contract for High-rises - Piggyback Agreement thru

National Intergovernmental Purchasing Alliance

DBS 10/21/2011 7/26/2012

C1051Multnomah County Community Services

Division$100,000

Weatherization Funds for Shrunk Riverview Tower

DCR 11/2/2011 12/31/2011

Procurement & Contracts Department MONTHLY CONTRACT REPORT Contracts Approved 10-1-11 - 11-30-11

PROFESSIONAL SERVICES

CONSTRUCTION SERVICES

INTERGOVERNMENTAL AGREEMENT -- REVENUE

COOPERATIVE AGREEMENTS

12-1-11 Page 1 of 2 Procurement and Contracts DepartmentHome Forward Board of Commissioners Packet December 2011

33

T0424-1 Interface EngineeringExtends End Date for Task Order

Engineering Services ContractDCR 11/1/2011 10/31/2012

T0425-2 Cundiff Engineering, Inc.Extends End Date for Task Order

Engineering Services ContractDCR 11/3/2011 10/31/2012

C0936-1 Seasholtz Consulting $25,000 Extends End Date - Consultant Services

for Rent Reform ImplementationFinance 11/8/2011 12/31/2012

C0852-8 Walsh Construction, Inc. $5,509 Parking, Dumpster & Gutter Repair for

Ainsworth Court RenovationDCR 11/8/2011 11/14/2011

C0868-1 Kilmer Voorhees & Laurick, PC $7,500 Legal Services for Exterior Panels

Installed at the Morrison Bldg.DCR 11/21/2011 12/31/2012

C0946-1 R&H / Colas Construction LLC $46,987 Dry Rot Repair (Siding) Exceeded Original Expectations at Interstate

CrossingsDCR 10/3/2011 10/31/2011

C0293-4 AAM EnvironmentalExtends Contract for On-Call Abatement

ServicesDBS 10/4/2011 10/15/2012

C0855-1 PSIExtends Contract for Special Inspection

Services at Ainsworth CourtDCR 10/4/2011 11/30/2011

C0833-12 Pavilion Construction $490 Materials Expense for Madrona

ApartmentsDCR 10/5/2011 8/31/11*

C0833-13 Pavilion Construction (-$59,695)Contract Allowance Reconciliation for

Madrona ApartmentsDCR 10/13/2011 8/21/11*

C0290-4 Professional Grounds MaintenanceExtends Contract for On-Call

Landscaping DBS 10/18/2011 10/26/2012

C0829-1 Richard GravesExtends Contract for On-Call Building

Envelope ServicesDCR 10/19/2011 10/31/2012

C0852-6 Walsh Construction Company $63,919 Excavation for Extra Parking Lots and

Stairway Work at Ainsworth CourtDCR 10/19/2011 11/14/2011

C0996-2 Hood to Coast Restoration $21,100 Misc. Labor Time and Materials for

Lexington Court Siding ReplacementDCR 10/28/2011 12/10/2011

C0859-4 North Pacific Construction $38,312 Interior Doors, Ducting and Carpet - Eliot

Square ModernizationDCR 10/28/2011 11/26/2011

* =Substantial Completion Date; Contract Administration Closeout

AMENDMENTS TO EXISTING CONTRACTS

12-1-11 Page 2 of 2 Procurement and Contracts DepartmentHome Forward Board of Commissioners Packet December 2011

34

Relocation

Project 0 1 2 3 4 S8 PH Private Purch. Other TotalRelocation to Date 0 4 11 136 11 80 54 15 5 8 162Relocation Remaining 0 0 0 0 0 0TOTAL RELOCATION 0 4 11 136 11 162

SalesTotal Total Gross Net Internal Net to

Project 0 1 2 3 4 Units Properties Proceeds Proceeds Costs HAPActual Sales to Date 4 11 126 10 151 139 27,975,676$ 26,596,257$ 1,244,122$ 25,352,135$

Projected Sales on Remaining Portfolio(9) 10 1 11 11 1,574,900$ 1,467,807$ (34,298.55) 1,502,105$ Subtotal for PHPI Initiative 0 4 11 136 11 162 150 29,550,576$ 28,064,064$ 1,209,823$ 26,854,241$

Homes Remaining in HAP's Portfolio(5) (8) (8) (8) (1,205,000)$ (1,123,060)$ -$ (1,123,060)$ TOTAL SALES - PROJECTED 0 4 11 128 11 154 142 28,345,576$ 26,941,004$ 1,209,823$ 25,731,181$

1:1 Replacement# of New Total Total Total $ / New Total

Project 0 1 2 3 4 PH Units Units Proj. Cost $/Unit PH Unit InvestmentsCurrentThe Jeffrey 20 20 80 16,600,000$ 207,500.00 - -

Martha Washington(6) 25 25 108 18,043,118$ 167,065.91 52,337$ 1,308,427$

Bud Clark Commons(8) 30 30 130 46,951,074$ 361,162.11 40,583$ 1,217,500$ Rockwood Station 25 25 195 271,514$ 1,392.38 N/A 107,920$

Madrona Place Apts(7) 3 20 22 45 45 4,566,487$ 101,477.49 101,477$ 4,566,487$ SUB-TOTAL: 75 3 45 22 0 145 558 86,432,193$ 154,896$ 49,657$ 7,200,334$

Yet to Replace 9

Potential

Hillsdale Terrace(3) 13 129 47,300,000$ 366,666.67 776,923$ 10,100,000$ Lifeworks Northwest 3 13 13 29 29 tbd 17,241$ 500,000$ SUB-TOTAL: 0 3 13 13 0 42 158 47,300,000$ 366,667$ 252,381$ 10,600,000$

Avg. Invest.per PH unit

TOTAL REPLACEMENT: 75 6 58 35 0 187 716 133,732,193$ 521,563$ 95,189$ 17,800,334$

Capital Improvements# of Total Moving to HAP

Project PH Units Proj. Cost Work Initiative PHPI ProceedsMisc Upgrades tbd 452,200$ - Sweet 16 296 12,075,341$ 885,000$ Demar Downs ADA - Sweet 16 addtnl scope N/A 187,200$ 46,800$ Tower Trio (Gallagher, Medallion, Williams) 281 35,280,892$ 3,000,000$ Eliot Square - part of the Fam4 30 1,461,750$ 500,000$ 951,000$ Fam4 (Carlton, Eastwood, Lexington) 75 3,935,615$ 2,059,300$

TOTAL CAPITAL IMPROVEMENTS: 682 53,392,998$ 500,000$ 6,942,100$

PHPI: Activity and Investment Summary as of October 31, 2011

Unit Size Means of relocation

Unit Size

Unit Size


35

ARRA Administration# of Total HAP

Positions Positions Proj. Cost Proceeds

TOTAL ARRA ADMINISTRATION: 10 659,891$ 137,382$

NET PROCEEDS AVAILABLE 851,365$

(1) Net Proceeds are Gross Proceeds net of sales commissions, concessions, title and escrow fees and any other costs paid from escrow. Net Proceeds do not include internal selling costs ($1,244,122 through October 2011).

(2) Included are four units sold through the American Dream Homeownership program.

(3) 68 total PH units; replaces existing 60 units, 13 are new. PHPI encompasses 1:1 replacement as well as capital improvements.

(4) The Property Count now includes 2 of the four units sold through the American Dream Homeownership program. The property sales occurred prior to the sales team initiative and were included in the unit count, but not the property count on prior reports.

(5) HAP has committed to retaining 7 properties for future project relocation, which is included in the projected sales at $1,015,000. Additionally, a property with a longtime tenant included at a projected sales amount of $190,000 will remain in HAP's portfolio. Therefore, approximately $1,205,000 of the projected gross proceeds is not available to HAP for future projects.

(6) HAP has submitted an RHF Plan to HUD requesting that RHF Funding in excess of our New Columbia Debt Service be used for the Martha Washington project. HUD's approval of this plan would enable HAP to replenish PHPI funding in the amount of $581,121.75. The actual PHPI funds for this project was $1,308,427.25 rather than $1,902,000.

(7) Formerly known as Jeanne Anne Apts

(8) Formerly known as Resource Access Center

(9) Projected Internal Costs are offset by Asset Repositioning Fee Revenue


36

DASHBOARD

REPORT


37

The Dashboard Report will be provided at the meeting


38

RESOLUTIONS


39

MEMORANDUM


From: Dianne Quast, Director Real Estate

Operations

Chris Hughson, Asset Manager


Subject: Authorization to Acquire the Limited

Partner’s Interest in Kelly Place

Limited Partnership and Transfer the Property from the Partnership to

Home Forward

Resolution 11-12-01

The Board of Commissioners is specifically requested to authorize the following actions necessary

to acquire the limited partner’s interest in the Kelly Place Limited Partnership and complete the

transfer of the ownership of the Kelly Place property from Kelly Place Limited Partnership to Home

Forward:

• Home Forward’s acquisition of the limited partner’s interest for $0.00

• The execution of the documents and agreements needed to acquire the limited partner’s

interest

• The execution of assignment and assumption documents for the existing Bank of America

debt, the HOME Restrictive Declaration with the Portland Housing Bureau (“PHB”), and the

trust deed securing the CDBG Grant issued by Multnomah County

• Home Forward’s assumption of the partnership’s commitment to extended low-income

use from Oregon Housing and Community Services Department

• The dissolution of the partnership and the transfer of its assets to Home Forward

Home Forward received a Draft Letter of Intent (“LOI”) dated November 30, 2011, setting forth the

conditions upon which the Limited Partners are willing to transfer their limited partnership interests

(the “Limited Partnership Interests”) in the Partnership (the “Limited Partnership Interests”) to Home

Forward, a copy of which is attached hereto (the “LOI”).

Background:

In October 1996, Home Forward entered into a Low Income Housing Tax Credit (LIHTC) Limited

Partnership for the purpose of constructing Kelly Place Apartments. The property consists of two

one-bedroom flat units, five two-bedroom townhomes, eight three-bedroom flats/townhomes and


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five four-bedroom townhomes. Enterprise Housing Partners 1995 Limited Partnership and Bank of

America Housing Fund Limited Partnership are the limited partners, with Home Forward serving as

the General Partner of Kelly Place Limited Partnership. Home Forward used a combination of tax

credit equity, CDBG funds, and funding from Bank of America and the City of Portland to finance

the construction of Kelly Place. In exchange for the tax credit equity, the partnership provided the

limited partners with 10 years of tax credits and tax losses. At the end of the 15-year LIHTC

compliance period, it was anticipated that the limited partner would exit the partnership and Home

Forward would take over ownership.

Kelly Place is currently in its fifteenth year of the compliance period. Under the terms of the

partnership agreement, Home Forward has the right to purchase the limited partner’s interest (the

building and all other assets, including reserves) for the greater of the fair market value of the

interest or the amount of exit taxes owed. In this case, there are no exit taxes owing. The property

has approximately $45,000 in operating reserves and $42,000 in replacement reserves on hand.

Our analysis of current capitalization rates, the marketability of an interest position, and the limited

control of an interest position indicates a transfer value of zero ($0.00) is appropriate for the limited

partners’ interest in the property. Acquiring the interest at this cost allows us to protect a

substantial portion of the reserves and gives Home Forward full control of the property.

Budget Implications and Financial Impact on Home Forward

Home Forward’s costs to close this transaction will be approximately $35,000. These costs will be

for legal and title fees. Property operating reserves of approximately $45,000 should be sufficient

to cover these costs.

For the past several years, this property has been unable to return cash to Home Forward because

of necessary capital improvements. After the close of this transaction, Home Forward should not

expect the property to return cash in the future.

Risks and Opportunities

There are risks inherent in owning rental real estate. This property operates close to break-even; it

is able to service the senior debt to Bank of America but is unable to return cash to Home

Forward. We have recently completed a capital needs assessment of this property; the report

indicated approximately $200,000 in repairs that were needed at the property in the next three to

five years. We recently resided several buildings and replaced all window trim through a capital

contribution by Home Forward.

The opportunity for Home Forward is to realize our intentions when we entered into the

partnership, which is to own this property outright.


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The 20 units at this property are set aside for individuals earning 40% of area median income. By

taking ownership of this property we are preserving this valuable housing resource for the

community.

Conclusion/Recommendation

Staff recommends approval of Resolution 11-12-01.


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A RESOLUTION AUTHORIZING THE EXECUTION AND DELIVERY OF DOCUA RESOLUTION AUTHORIZING THE EXECUTION AND DELIVERY OF DOCUA RESOLUTION AUTHORIZING THE EXECUTION AND DELIVERY OF DOCUA RESOLUTION AUTHORIZING THE EXECUTION AND DELIVERY OF DOCUMENTS BY MENTS BY MENTS BY MENTS BY

HOME FORWARD, ON ITS OWN BEHALF AND IN ITS CAPACITY AS GENERAL PARTNER HOME FORWARD, ON ITS OWN BEHALF AND IN ITS CAPACITY AS GENERAL PARTNER HOME FORWARD, ON ITS OWN BEHALF AND IN ITS CAPACITY AS GENERAL PARTNER HOME FORWARD, ON ITS OWN BEHALF AND IN ITS CAPACITY AS GENERAL PARTNER

OF THE KELLY PLACE LIMITED PARTNERSHIP, TO EFFECTUATE THE TRANSFER OF THE OF THE KELLY PLACE LIMITED PARTNERSHIP, TO EFFECTUATE THE TRANSFER OF THE OF THE KELLY PLACE LIMITED PARTNERSHIP, TO EFFECTUATE THE TRANSFER OF THE OF THE KELLY PLACE LIMITED PARTNERSHIP, TO EFFECTUATE THE TRANSFER OF THE

LIMITED PARTNER’S INTEREST IN THE PARTNERSHIP TO HOME FORWARD AND THE LIMITED PARTNER’S INTEREST IN THE PARTNERSHIP TO HOME FORWARD AND THE LIMITED PARTNER’S INTEREST IN THE PARTNERSHIP TO HOME FORWARD AND THE LIMITED PARTNER’S INTEREST IN THE PARTNERSHIP TO HOME FORWARD AND THE

SUBSEQUENT DISSOLUTION OF THE PASUBSEQUENT DISSOLUTION OF THE PASUBSEQUENT DISSOLUTION OF THE PASUBSEQUENT DISSOLUTION OF THE PARTNERSHIP AND DISTRIBUTION OF ITS ASSETS RTNERSHIP AND DISTRIBUTION OF ITS ASSETS RTNERSHIP AND DISTRIBUTION OF ITS ASSETS RTNERSHIP AND DISTRIBUTION OF ITS ASSETS

TO HOME FORWARD TO HOME FORWARD TO HOME FORWARD TO HOME FORWARD

WHEREASWHEREASWHEREASWHEREAS, Home Forward seeks to encourage the provision of long-term housing for low-income

persons residing in the City of Portland, Oregon (the “City”);

WHEREASWHEREASWHEREASWHEREAS, ORS 456.120(18) authorizes Home Forward to enter into partnership agreements and

to make loans to partnerships to finance, plan, undertake, construct, acquire and operate housing

projects;

WHEREASWHEREASWHEREASWHEREAS, ORS 456.065 defines “housing project” to include, among other things, “any work or

undertaking . . . to provide decent, safe and sanitary urban or rural housing for persons or families

of lower income”;

WHEREASWHEREASWHEREASWHEREAS, Home Forward serves as the General Partner of Kelly Place Limited Partnership, an

Oregon limited partnership (the “Partnership”), which Partnership owns and operates Kelly Place

Apartments in Portland, Oregon (the “Project”);

WHEREASWHEREASWHEREASWHEREAS, the limited partners in the Partnership are Enterprise Housing Partners 1995 Limited

Partnership and Bank of America Housing Fund Limited Partnership (collectively the “Limited

Partners”);

WHEREASWHEREASWHEREASWHEREAS, Home Forward received a Draft Letter of Intent (“LOI”) dated November 30, 2011,

setting forth the conditions upon which the Limited Partners are willing to transfer their limited

partnership interests (the “Limited Partnership Interests”) in the Partnership (the “Limited

Partnership interests”) to Home Forward, a copy of which is attached hereto (the “LOI”);


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WHEREASWHEREASWHEREASWHEREAS, Home Forward desires to acquire the Limited Partners interests upon the general

terms and conditions set forth in the LOI;

WHEREAS,WHEREAS,WHEREAS,WHEREAS, upon the acquisition of the Limited Partnership interests, Home Forward desires to

take such steps as may be necessary to dissolve the Partnership and distribute its assets to Home

Forward;

WHEREASWHEREASWHEREASWHEREAS,,,, in order to acquire the Limited Partnership interests, dissolve the Partnership, and

distribute the Partnership assets to Home Forward it will be necessary for the Partnership and/or

Home Forward to obtain the consent of the Oregon Housing and Community Services Department

(the “Allocating Agency”), and the existing lenders to the Project, which include Bank of America,

Multnomah County, and Portland Housing Bureau (collectively the “Project Lenders”) and to

execute such assignment and assumption agreements and other transfer documents as may be

reasonably required by such parties; and

WHEREASWHEREASWHEREASWHEREAS, ORS 456.135 authorizes Home Forward to delegate to one or more of its agents and

employees such powers as it deems proper;

NOW, THEREFORE, BE IT RESOLVEDNOW, THEREFORE, BE IT RESOLVEDNOW, THEREFORE, BE IT RESOLVEDNOW, THEREFORE, BE IT RESOLVED,

1. General Approval of Transfer of Partnership Interests. Home Forward hereby approves the

acquisition of the Limited Partnership Interests pursuant to the general terms and

conditions of the LOI and further approves taking such steps as may be reasonably

required to then dissolve the Partnership and distribute its assets to Home Forward. In

furtherance of such transfer and distribution Home Forward further resolves as follows:

2. Approval of Partnership Documents. Home Forward has been presented with the LOI and

a draft of the Assignment of Partnership Interests which documents are on file with Home

Forward’s Secretary. The LOI and Assignment of Partnership Interests along with such

other documents as may be reasonably required to effectuate the transfer of the Limited

Partnership Interests to Home Forward are hereafter referred to as the “Partnership

Documents”. The Chair of the Board, Home Forward’s Executive Director and their

respective designees (each, an “Authorized Officer” and, collectively, the “Authorized

Officers”), and each of them acting alone, are authorized and directed to execute and

deliver, on behalf of Home Forward (acting on its own behalf or as general partner of the

Partnership), the Partnership Documents substantially in the form on file with Home

Forward; provided however, any Authorized Officer may approve on Home Forward’s

behalf any further changes to the such documents including material changes, and such

Authorized Officer’s signature on the final Partnership Documents shall be construed as

Home Forward’s approval of such changes. The Authorized Officers (and each of them

acting alone) are further authorized and directed to execute and deliver, on behalf of Home


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Forward (acting on its own behalf or as general partner of the Partnership), any other

documents reasonably required to be executed by Home Forward or the Partnership to

carry out the transactions contemplated by the Partnership Documents.

3. Approval of Transfer Documents. Home Forward anticipates receipt of certain assignment,

assumption and consent documents from the Project Lenders and the Allocating Agency

pursuant to which Home Forward will agree to assume and be bound by the loan

documents and regulatory agreements and/or covenant affecting the Project (collectively

the “Transfer Documents”). The Authorized Officers (and each of them acting alone) are

authorized and directed to execute and deliver, on behalf of Home Forward (acting on its

own behalf or as general partner of the Partnership), Transfer Documents. The Authorized

Officers (and each of them acting alone) are further authorized and directed to execute and

deliver, on behalf of Home Forward (acting on its own behalf or as general partner of the

Partnership), any other documents reasonably required to be executed by Home Forward

or the Partnership to carry out the transactions contemplated by the Transfer Documents.

4. Approval of Dissolution of the Partnership and Distribution of Assets. Home Forward

further authorizes the Authorized Officers to take such steps and to execute and deliver

such documents (each of them acting alone) as may be necessary to dissolve the

Partnership and distribute the assets of the Partnership to Home Forward, such documents

including but not limited to a certificate of dissolution, such deeds, bills of sale and/or other

assignments as may be required to distribute all Partnership assets to Home Forward and

the filing of those tax returns as may be necessary to effectuate the transfer of Limited

Partnership Interests, the dissolution of the Partnership assets and the distribution of such

assets to Home Forward.

5. Ancillary Documents. The Authorized Officers, and each of them acting alone, are

authorized on behalf of Home Forward (acting on its own behalf or as general partner of the

Partnership) to execute, deliver and/or file (or cause to be delivered and/or filed) any

affidavits, certificates, letters, government forms, documents, agreements and instruments

that any such Authorized Officer determines to be necessary or desirable: (i) to give effect

to this resolution and/or (ii) to consummate the transactions contemplated herein.

6. Expenditures. Home Forward is authorized to expend such funds (and to cause the

Partnership to expend such funds from the operating reserve) as are necessary to pay for

all filing fees, application fees, registration fees and other costs relating to the actions

authorized by this resolution.

7. Acting Officers Authorized. Any action required by this resolution to be taken by the Chair

of the Board or Executive Director of Home Forward may, in the absence of such person,


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be taken by the duly authorized acting Chair of the Board or acting Executive Director of

Home Forward, respectively.

8. Effective Date. This resolution shall be in full force and effect from and after its adoption and

approval.

ADOPTED: DECEMBER 1ADOPTED: DECEMBER 1ADOPTED: DECEMBER 1ADOPTED: DECEMBER 13333, 2011, 2011, 2011, 2011


__________________________________ ________________________________



46

November 30, 2011 Chris Hughson Home Forward 135 SW Ash Street 3rd Floor Portland, OR 97204 RE: Kelly Place Limited Partnership Dear Mr. Hughson: In follow up to your conversation with Sean Barnes, I am writing to provide the basic outline of terms and conditions for the assignment of Bank of America Housing Fund Limited Partnership and Enterprise Housing Partners 1995 Limited Partnership’s Limited Partner interests in Kelly Place Limited Partnership (“the Partnership”) to Home Forward, or one of its affiliates. The assignment remains subject to approval by the investors in the Partnership. The Partnership exists by and among Home Forward, formerly known as Housing Authority of Portland, (the “General Partner”), as General Partner, and Bank of America Housing Fund Limited Partnership and Enterprise Housing Partners 1995 Limited Partnership’s (the “Limited Partners”), as Limited Partners. The purpose of the Partnership is acquiring, owning, developing, constructing, leasing, managing, operating, and, if appropriate or desirable, selling or otherwise disposing of Kelly Place Apts. located in Gresham, OR (“the Project”). Equity to develop the Project was provided through the sale of Low Income Housing Tax Credits (LIHTC). As a result, the Project was subject to a fifteen-year compliance period, required by LIHTC regulations, which provided for rent and income restrictions. The LIHTC compliance period expires December 31, 2011 and the Project is eligible for sale or transfer without tax credit recapture effective January 1, 2012. The Project is subject to income and rent restrictions for an additional 15 years beyond the compliance period pursuant to Section 42 of the Internal Revenue Code. While this letter does not contain the entire terms essential to the transaction, following are the principal conditions for the Limited Partners’ assignment of their Limited Partnership interests to the General Partner or one of its affiliates:

1. Execute an Assignment of Partnership Interest, effective January 1, 2012, assigning Bank of America Housing Fund Limited Partnership and Enterprise Housing Partners 1995 Limited Partnership’s 8.99 % and 90.01 % Limited Partner interests, respectively, to Home Forward for no monetary consideration.

2. Execute an Amendment to the First Amended and Restated Agreement of Limited

Partnership of Kelly Place Limited Partnership (the “Partnership Agreement”) to


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provide for the withdrawal of the Limited Partners from the Partnership, and the admission of the Home Forward as the limited partner to the Partnership.

3. Upon admission, as the new limited partner Home Forward with dissolve the partnership distributing all assets to Home Forward.

If applicable, the General Partner will execute and file such documents as are required to evidence the withdrawal of the limited partners and the dissolution of the Partnership. an Amendment to the Certificate of Limited Partnership of Kelly Place Limited Partnership.

4. The General Partner will secure any required consents of lenders and or government agencies.

5. The General Partner agrees to maintain all records relating to the Credits for each year of the Compliance Period required by Treasury Regulation Section 1.42-5 for a period of at least 6 years (21 years in the case of the first year) after the due date (with extensions) for filing the tax returns for each year.

6. The General Partner agrees to provide a 2011 and 2012 tax return and 2011 audited

financial statement to the Limited Partners in accordance with the Partnership Agreement. The assignment of Limited Partners’ interests triggers a technical termination of the Partnership for tax purposes. This termination requires that a 2012 tax return be filed no later than the 15th day of the fourth month following the month of disposition, or in this case May 15, 2012.

7. The Limited Partners will be responsible for their own exit taxes, if any.

8. The General Partner will be responsible for any transfer taxes owed, if applicable,

which may be paid from Partnership resources.

9. Each party shall be responsible for its own legal fees.

10. The General Partner will execute the necessary agreements by December 15, 2011, effectuating the assignment of Limited Partners’ interests on January 1, 2012.

11. Close the transaction no later than January 1, 2012.

12. All legal agreements effectuating the transaction will be held in escrow with Craig

Emden, attorney with Bocarsly Emden Cowan Esmail & Arndt, LLP, and released in January, 2012.

Attached for your benefit are the following sample documents required to close the transaction:

1. Sample Amendment to the Partnership Agreement

2. Sample Assignment of Partnership Interest


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The sample agreements will require revisions by the General Partner to reflect the specifics of this transaction. If the terms above are acceptable to you, please indicate your approval by signing below and returning the original to me. We look forward to working with you on this transaction. If you have any questions, please contact Sean Barnes, Sr. Disposition Manager at (410) 772-2460. Sincerely, Gregory L. Griffin Director, Asset Management Accepted this _______ day of ______________, 200 :

Home Forward By: _________________________ _________________________ Name _________________________

Title Enclosures cc: Gigi Eggers Teresa Mondou Sean Barnes


49

MEMORANDUM


From: Michael Andrews, Director,

Development & Community

Revitalization

April Berg, Sr. Program Manager,

Director Development & Community

Revitalization


Subject: Authorizes acquisition of Parcel

Number R239161 located at NE

Beech Street, Portland, Oregon

Resolution 11-12-02

The Board is being asked to authorize the purchase of the property located at NE Beech Street,

Portland, Oregon, for $825,000. Public Housing Preservation Initiative (PHPI) funds ($500,000)

and interim financing ($325,000), to be repaid at financial closing, will be utilized for the initial

acquisition. Site improvement and project development work authorization will be sought by a

separate resolution. The ultimate intent of this acquisition is to purchase the site for the anticipated

development project with LifeWorks NW and Gerding Edlen Development. Escrow closing is

scheduled for February 2012.

Background

LifeWorks NW is a nonprofit organization that provides addiction and mental health services in the

three-county metro area. LifeWorks NW currently operates a project called Project Network out of

a leased facility in North Portland. This program provides culturally competent treatment for

mothers in recovery who are reuniting with their children. Roughly two years ago, LifeWorks NW

learned their lease would not be renewed as of its term in September 2014, prompting them to set

out to find an alternative location, which they could own, for the program.

To assist them in finding or developing an alternative facility, LifeWorks NW engaged the services

of Gerding Edlen Development. As a development consultant, Gerding Edlen’s role is to assist

LifeWorks NW with financing, design, and construction activities. Efforts between LifeWorks NW

and Gerding Edlen have begun. Home Forward was approach by LifeWorks NW and asked to be

a partner in this project by owning and managing permanent rental housing that would


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complement Project Network. Upon agreeing to work with LifeWorks and Gerding Edlen, the

parties collectively sought a suitable site.

This property was initially of interest due to its location, size, and proximity to other Home Forward

properties. Staff engaged in conversations with a representative of the owner (New Hope

Missionary Baptist Church) that ultimately led to Home Forward’s extension of an offer to purchase

and entrance into a Purchase and Sale Agreement effective September 8, 2011. The Purchase

and Sale Agreement allows an Initial Feasibility Period of (120) days with an option to extend the

Initial Feasibility Period by an additional (30) days. Currently Home Forward is in the Initial

Feasibility Period (September 8, 2011 through January 6, 2012) and has completed the appraisal

and Phase I evaluation for the property. The current owner of the property is completing the

necessary reports to obtain a “No Further Action” letter from Oregon Department of Environmental

Quality. It is anticipated that closing will occur within the (60) days after the Feasibility Period, in

accordance with the Purchase and Sale Agreement.

The appraisal reflected a value of $825,000 (the exact amount of Home Forward’s final offer).

Development Project:

The project concept involves the construction of a 35-bed treatment facility and approximately 29

units of permanent rental housing. Additionally, there will be community space and outdoor play

areas appropriate to the target population for each of these program elements.

Design and construction will be managed by Gerding Edlen on behalf of both Home Forward and

LifeWorks NW. A single architectural and engineering team and a single contractor will be selected

for the project. While these teams will contract directly with Gerding Edlen, Home Forward’s goals,

in particular Economic Participation, will be pursued.

Financing for the project will utilize two types of federal tax credits. The simultaneous use of these

credits will require distinct ownership of the 35-bed treatment facility and the 29 units of permanent

rental housing. This could occur through either a lot division and fee simple ownership, or a

condominium regime. A decision about the preferred approach will come during schematic design.

New Market Tax Credits will be used to finance the treatment facility, and 9% Low Income Housing

Tax Credits will be used to support the permanent rental housing. Additionally, both elements of

the project will seek permanent debt, City of Portland funding, Home Forward equity, and

fundraising completed by LifeWorks NW. Below is a table that summarizes the preliminary sources

and uses for this combined project.


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Rental Residential Per

SourcesSourcesSourcesSources Housing Treatment Total Unit

First mortgage loan 369,000 369,000 6,150

OHCS Trust Fund &

Weatherization 600,000 600,000 10,000

SDC Waivers & HAP Equity 600,000 0 600,000 10,000

PHB 0 0 0

RT Fundraising Campaign Target 1,500,000 1,500,000 25,000

RT SDC Waivers 100,000 100,000 1,667

RT Loans 1,321,000 1,321,000 22,017

Net NMTC Proceeds 1,429,000 1,429,000 23,817

Limited partner equity 6,559,344 6,559,344 109,322

Total SourcesTotal SourcesTotal SourcesTotal Sources 8,128,3448,128,3448,128,3448,128,344 4,350,0004,350,0004,350,0004,350,000 12,478,34412,478,34412,478,34412,478,344 207,972207,972207,972207,972

UsesUsesUsesUses

Acquisition Costs 447,850 397,150 845,000 14,083

Construction Costs 6,413,269 5,849,931 12,263,200 204,387

Development Costs 375,024 296,476 671,500 11,192

General Fees 1,669,293 1,104,094 2,773,387 46,223

Construction Loan Costs/Fees 198,482 60,535 259,016 4,317

Tax Credit Fees 65,945 0 65,945 1,099

Interest 297,479 78,765 376,243 6,271

Reserves/Contingency 295,785 137,700 433,485 7,225

Total UsesTotal UsesTotal UsesTotal Uses 9,763,1269,763,1269,763,1269,763,126 7,924,6507,924,6507,924,6507,924,650 17,687,77617,687,77617,687,77617,687,776 294,796294,796294,796294,796

Surplus or (Gap)Surplus or (Gap)Surplus or (Gap)Surplus or (Gap) (1,634,782)(1,634,782)(1,634,782)(1,634,782) (3,574,650)(3,574,650)(3,574,650)(3,574,650) (5,209,432)(5,209,432)(5,209,432)(5,209,432) (86,824)(86,824)(86,824)(86,824)

The site identified is located on NE Beech between NE Mallory and Garfield Avenues. It is located

one block west of NE Martin Luther King, Jr., Boulevard with immediate surrounding uses of multi-

family and single family homes, with commercial/retail along NE Martin Luther King, Jr., Boulevard.

Total size of the lot is 48,430 square feet. Again, the purchase price is $825,000 or $17.04 per

square foot.

The site is nearly flat and nearly square, making it well suited for a development of this type. It is

readily accessible to bus transportation along NE Fremont, NE Martin Luther King, Jr., Boulevard,


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N Vancouver, and N Williams. Importantly for LifeWorks NW, the site is in the neighborhood

traditionally served by Project Network.

Policy Implications

This project is consistent with several policy directions for Home Forward:

1. It furthers the creation of permanent rental housing. And, in this instance, will target

families wanting to find dry, affordable rental housing in inner Northeast Portland.

2. The project will be developed in partnership with LifeWorks NW and Gerding Edlen. This is

consistent with Home Forward Guiding Principles for Development.

Budget Implications and Financial Impact on Home Forward

Acquisition of this property will be funded by cash derived from the sale of scattered site public

housing units (PHPI proceeds). The purchase price is $825,000. In addition to the price paid the

seller, Home Forward will also pay roughly $5,500 in closing costs for a total outlay of $830,500.


This site presents a great opportunity to work with LifeWorks NW and co-develop a facility that

furthers our shared mission. This site is ideal for its value, location, and size.

The primary risk related to this purchase is the likelihood all permanent financing will be secured.

In this regard there are two concerns; 1) City of Portland funding of roughly $5 million and 2) award

of the 9% Low Income Housing Tax Credits.

With regards to the City of Portland funding, sufficient funding is currently available through a

competitive process currently underway with the City. Applications are due on December 19, and

awards announcements are expected by late January. The project, as proposed, addresses many

of the City of Portland’s funding priorities and will likely compete well for funding. Should the

project not receive funding, staff believes the location, value and size of the property argues for

purchase of the site to preserve the opportunity while continuing to work to assemble financing.

With regards to the 9% Low Income Housing Tax Credits, each year there are typically sufficient

tax credits available to Multnomah County to fully fund two 9% Low Income Housing Tax Credit

projects. As of this meeting, there is one additional 9% Low Income Housing Tax Credit project

being contemplated within Multnomah County. This level of demand is a low risk. Increasing the

likelihood of funding for this project is the programmatic linkage with LifeWorks NW and the

attendant programmatic focus.

Operational Implications

Purchase of this site is for the purpose of developing a new project. Home Forward possesses the

internal capacity to manage our role in the development of this project.


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Other Considerations

None at this time.

Recommendation



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RESOLURESOLURESOLURESOLUTION 11TION 11TION 11TION 11----12121212----02020202

AUTHORIZES ACQUISITIAUTHORIZES ACQUISITIAUTHORIZES ACQUISITIAUTHORIZES ACQUISITION OF PARCEL NUMBER ON OF PARCEL NUMBER ON OF PARCEL NUMBER ON OF PARCEL NUMBER R239161 LOCATED AT NR239161 LOCATED AT NR239161 LOCATED AT NR239161 LOCATED AT NE BEECH E BEECH E BEECH E BEECH

STREET, PORTLAND, ORSTREET, PORTLAND, ORSTREET, PORTLAND, ORSTREET, PORTLAND, OREGON 97212EGON 97212EGON 97212EGON 97212,,,, UTILIZING PUBIC HOUSUTILIZING PUBIC HOUSUTILIZING PUBIC HOUSUTILIZING PUBIC HOUSING PRESERVATION ING PRESERVATION ING PRESERVATION ING PRESERVATION

INITIATIVE FUNDS ($5INITIATIVE FUNDS ($5INITIATIVE FUNDS ($5INITIATIVE FUNDS ($500,000) AND INTERIM 00,000) AND INTERIM 00,000) AND INTERIM 00,000) AND INTERIM FINANCING ($325,000)FINANCING ($325,000)FINANCING ($325,000)FINANCING ($325,000), , , , TO BE REPAID AT TO BE REPAID AT TO BE REPAID AT TO BE REPAID AT

FINANCIAL CLOSINGFINANCIAL CLOSINGFINANCIAL CLOSINGFINANCIAL CLOSING,,,, FOR A TFOR A TFOR A TFOR A TOTAL AMOUNT OF $825,OTAL AMOUNT OF $825,OTAL AMOUNT OF $825,OTAL AMOUNT OF $825,000000000000,,,, AND AUTHORIZES THE AND AUTHORIZES THE AND AUTHORIZES THE AND AUTHORIZES THE

EXECUTIVE DIRECTOR TEXECUTIVE DIRECTOR TEXECUTIVE DIRECTOR TEXECUTIVE DIRECTOR TO EXECUTE ANY AND ALO EXECUTE ANY AND ALO EXECUTE ANY AND ALO EXECUTE ANY AND ALL DOCUMENTS RELATED L DOCUMENTS RELATED L DOCUMENTS RELATED L DOCUMENTS RELATED TO THAT TO THAT TO THAT TO THAT

ACQUISITION.ACQUISITION.ACQUISITION.ACQUISITION.

WHEREASWHEREASWHEREASWHEREAS, Home Forward is a public body corporate and politic of the State of Oregon and is

empowered by ORS 456.005 to 456.725 (“Housing Authority Laws”) to purchase any real property

and to accept grants from public from any source public or private for the purpose of carrying out

a housing project; and

WHEREASWHEREASWHEREASWHEREAS, Home Forward seeks to encourage the provision of long term housing for low income

persons residing in the City of Portland (“City”); and

WHEREASWHEREASWHEREASWHEREAS, Home Forward’s purchase of the NE Beech Street property (“Property”) will provide

an opportunity to create a project and program that will incorporate public housing goals and

development guiding principles which include optimization of the number of housing units, balance

economic participation goals with cost effective development, as well as incorporate green building

practices and energy efficiencies; and

WHEREASWHEREASWHEREASWHEREAS, Home Forward proposed Project exemplifies a guiding development principle to

partner with those entities who share and support similar mission statements in order to leverage

and maximize resources to better serve a target population; and

WHEREASWHEREASWHEREASWHEREAS, Home Forward will purchase the NE Beech Street property with the intent to develop

permanent housing in service of Home Forward’s Public Housing Preservation Initiative’s (PHPI)

one-for-one replacement goal; and

WHEREASWHEREASWHEREASWHEREAS, Home Forward intends to use PHPI scattered sites sale proceeds in the amount of

$500,000 and interim funding of $325,000 to fund the acquisition of the Property,


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NOWNOWNOWNOW,,,, THEREFORE, BE IT RESOLVEDTHEREFORE, BE IT RESOLVEDTHEREFORE, BE IT RESOLVEDTHEREFORE, BE IT RESOLVED, that the Board of Commissioners of Home Forward

authorizes the Authorizes acquisition of Parcel Number R239161 located at NE Beech Street,

Portland, Oregon 97212, utilizing Public Housing Preservation Initiative funds ($500,000) and interim

financing ($325,000), to be repaid at financial closing, for a total amount of $825,000, and authorizes

the Executive Director to execute any and all documents related to that acquisition.

ADOPTED: ADOPTED: ADOPTED: ADOPTED: DECEMBER 13DECEMBER 13DECEMBER 13DECEMBER 13, 2011, 2011, 2011, 2011


__________________________________ ________________________________



56

MEMORANDUM


From: Mike Andrews, Director, Development

and Community Revitalization

Theresa Auld, Finance Manager


Subject: A Resolution authorizing the execution and delivery of documents in

connection with the implementation of

a Local Blended Subsidy for Madrona Place Apartments

Resolution 11-12-03

The Board of Commissioners is specifically requested to approve a resolution authorizing Authorized Officers

to execute and deliver documents in connection with the implementation of a Local Blended Subsidy

revenue structure for Madrona Place Apartments.

Background

Local Blended Subsidy (“LBS”) creates more revenue for Home Forward by turning on public housing

operating subsidy for banked public housing (“PH”) units and blending PH operating subsidy with Section 8

subsidy to adequately support unit operations. HUD approved LBS as part of the 2012 Moving to Work

Plan. Additional HUD approval is being sought for mixed-finance closings for The Apartments at Bud Clark

Commons and Madrona Place. Home Forward expects to implement LBS next year at The Jeffrey,

Stephens Creek Crossing (the Hillsdale Terrace Redevelopment), and Martha Washington.

Home Forward purchased Jeanne Anne Apartments, a 46-unit residential rental property, in July 2010,

renamed it as Madrona Place Apartments and recently completed a select rehabilitation that included ADA

improvements in 3 units and converting one unit to management office and community space and improved

safety and security for residents. The property was purchased to further Home Forward’s Strategic Direction

#4 – by furthering local and regional housing goals. Additionally, the property provides one-for-one

replacement of disposed scattered site public housing units and offers large family-sized units in the

Rockwood area of the City of Gresham. Resident services are provided through 0.5 FTE Resident Services

Coordinator contracted with Human Solutions, Inc.

Home Forward has received several approvals from the Board for acquisition and renovation of Madrona

Place. The memos accompanying the approved resolutions anticipated Home Forward converting the rental

units into public housing units, which are also known as Annual Contributions Contract- subsidized units

(“ACC-subsidized units”), using Madrona Place as the pilot case for the use of LBS in support of newly


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created public housing units and provide sufficient cash flow support for debt service of a permanent loan.

Home Forward now requests approval for these final three actions:

1) Converting the rental units to public housing units,

2) Providing LBS at a subsidy level equal to the Section 8 payment standard which is $720 for a one-

bedroom unit, $832 for a two-bedroom unit, and $1,212 for a three-bedroom unit, then less tenant

paid rent; and

3) Taking a $1,125,000 permanent loan from Network For Oregon Affordable Housing (“NOAH”) on

Madrona Place.

Home Forward anticipates providing approximately $272,844 in annual LBS revenue to Madrona Place in

addition to approximately $207,300 of tenant paid rent for total project revenues of $480,144. This revenue

will support annual operating expenses, including annual replacement reserve funding of $18,000, are

projected at $288,652, debt service of $106,701 and provide net cash flow of $77,480. The permanent loan

will have a 20-year amortization, 7.75% annual interest rate and be recourse to the property and Home

Forward, excluding Home Forward’s restricted assets.

Proceeds of the permanent loan will pay loan fees closing costs, initially fund operating and replacement

reserves and the remaining proceeds will replenish the PHPI funds to support capital improvements at

existing public housing properties in furtherance of Home Forward’s PHPI goals. After funding of the

permanent loan, loan proceeds will establish an operating deficit reserve of $164,313 and initially fund the

replacement reserve in the amount of $100,000. The permanent loan fees, title and closing costs are

estimated at $56,160.

Policy Implications

Madrona Place is fulfilling Public Housing Preservation Initiative (“PHPI”) goals of one-for-one replacement of

disposed scattered site public housing units; providing larger family units; improving management efficiency

through larger apartment communities; and reducing rent burden for Madrona Place residents.

Madrona Place is the pilot property for using Local Blended Subsidy to provide an adequate subsidy with

public housing units that supports sustainable property operations and debt service. This action will create

45 new public housing units and generate additional public housing operating subsidy revenue for Home

Forward.

The provision of LBS subsidy will be equal to Section 8 subsidy up to the payment standard. The three

revenue sources of Section 8 subsidy, tenant paid rent and public housing operating subsidy will ensure a

financially sustainable project throughout the term of the permanent loan.

This action will authorize a permanent loan using public housing units and replacement and operating deficit

reserves as collateral and Section 8 subsidies allocable to the project as the repayment source. Proceeds

from the permanent loan will pay for its financing costs and replenish PHPI funds to further the PHPI goals

for improving existing public housing units.


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The LBS revenue structure provides the opportunity to create new public housing units with a sustainable

revenue flow. The acquisition and LBS revenue structure has provided the opportunity to create public

housing in the Rockwood neighborhood in the City of Gresham, thus creating more quality housing

opportunities further east.

This action creates a $1,125,000 permanent loan and additional compliance requirements with foreclosure

as one of the bank’s remedies. The loan is recourse to Home Forward as owner of the property. We have

forecasted the property operations to generate 1.40:1 debt service coverage, which is above the industry

standard of 1.15:1 debt service coverage. The extra high debt service coverage ensures sufficient cash for

property operations, capital improvements and mitigates the risk of loan default.


The 45 LBS units will have public housing regulations and provide public housing operating subsidy pursuant

to authority granted to Home Forward under its annual MTW plan. Staff will operate these units as public

housing units, except for receiving the support of LBS Section 8 subsidies. This property will not be subject

to Section 8 regulations.




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A RESOLUTION AUTHORIA RESOLUTION AUTHORIA RESOLUTION AUTHORIA RESOLUTION AUTHORIZING THE EXECUTION AZING THE EXECUTION AZING THE EXECUTION AZING THE EXECUTION AND DELIVERY OF DOCUMND DELIVERY OF DOCUMND DELIVERY OF DOCUMND DELIVERY OF DOCUMENTS BY THE ENTS BY THE ENTS BY THE ENTS BY THE

AUTHORITY TO ENTER IAUTHORITY TO ENTER IAUTHORITY TO ENTER IAUTHORITY TO ENTER INTO A MIXED FINANCE NTO A MIXED FINANCE NTO A MIXED FINANCE NTO A MIXED FINANCE AMENDMENT TO CONSOLIAMENDMENT TO CONSOLIAMENDMENT TO CONSOLIAMENDMENT TO CONSOLIDATED ANNUAL DATED ANNUAL DATED ANNUAL DATED ANNUAL

CONTRIBUTIONS CONTRACONTRIBUTIONS CONTRACONTRIBUTIONS CONTRACONTRIBUTIONS CONTRACT CT CT CT AND LOAN FROM NETWORAND LOAN FROM NETWORAND LOAN FROM NETWORAND LOAN FROM NETWORK FOR OREGON AFFORDAK FOR OREGON AFFORDAK FOR OREGON AFFORDAK FOR OREGON AFFORDABLE BLE BLE BLE

HOUSING IN THE AMOUNHOUSING IN THE AMOUNHOUSING IN THE AMOUNHOUSING IN THE AMOUNT OF ONE MILLIONS ONT OF ONE MILLIONS ONT OF ONE MILLIONS ONT OF ONE MILLIONS ONE HUNDRED TWENTY FE HUNDRED TWENTY FE HUNDRED TWENTY FE HUNDRED TWENTY FIVE THOUSAND IVE THOUSAND IVE THOUSAND IVE THOUSAND

AND 00/100 DOLLARSAND 00/100 DOLLARSAND 00/100 DOLLARSAND 00/100 DOLLARS

WHEREAS,WHEREAS,WHEREAS,WHEREAS, Home Forward (the “Authority”) seeks to encourage the provision of long-term housing

for low-income persons residing in the Multnomah County, Oregon (the “County”);

WHEREAS,WHEREAS,WHEREAS,WHEREAS, in July 2010, the Authority purchased an apartment complex, Madrona Place (the

“Project”) consisting of 45 housing units (the “Units”) in Gresham, Oregon;

WHEREAS, WHEREAS, WHEREAS, WHEREAS, the Units will be replacement units for disposed scattered site public housing units,

which are part of the Authority’s Public Housing Preservation Initiative;

WHEREAS, WHEREAS, WHEREAS, WHEREAS, the Authority desires to make the Units ACC-subsidized units and to layer additional

Section 8 subsidy to support the Project operations, to fund debt service payments and replacement

reserves;

WHEREAS, WHEREAS, WHEREAS, WHEREAS, the Authority anticipates a loan commitment (the “Loan Commitment”) in December

2011, from the Network for Oregon Affordable Housing (“NOAH”) to make a loan to the Authority in

the amount of One Millions One Hundred Twenty Five Thousand and 00/100 Dollars ($1,125,000),

(the “NOAH Loan”);

WHEREAS, WHEREAS, WHEREAS, WHEREAS, the Authority desires to take those steps and to execute and deliver such documents as

are necessary to enter into a Mixed – Finance Amendment (Operating Funds Only) to Consolidated

Annual Contributions Contract (“Mixed Finance Amendment”) and to close on the NOAH Loan; and

WHEREAS,WHEREAS,WHEREAS,WHEREAS, ORS 456.135 authorizes the Authority to delegate to one or more of its agents and

employees such powers as it deems proper;


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NOW, THEREFORE, BE IT RESOLVEDNOW, THEREFORE, BE IT RESOLVEDNOW, THEREFORE, BE IT RESOLVEDNOW, THEREFORE, BE IT RESOLVED,,,, that the Chair of the Board, the Authority’s Executive

Director and their respective designees (each, an “Authorized Officer” and, collectively, the “Authorized

Officers”), and each of them acting alone, are authorized and directed to execute and deliver, on

behalf of the Authority, all such documents as are necessary to enter into the Mixed Finance

Amendment, such documents including but not limited to the Mixed Finance Documents identified on

Exhibit A hereto.

FURTHER RESOLVEDFURTHER RESOLVEDFURTHER RESOLVEDFURTHER RESOLVED,,,, that the Chair of the Board, the Authority’s Executive Director and their

respective designees (each, an “Authorized Officer” and, collectively, the “Authorized Officers”), and

each of them acting alone, are authorized and directed to execute and deliver, on behalf of the

Authority, all such documents as are necessary to enter into and close the NOAH Loan substantially in

accordance with the Loan Commitment , such documents including but not limited to the NOAH

Documents identified on Exhibit A hereto;

FURTHER RESOLVEDFURTHER RESOLVEDFURTHER RESOLVEDFURTHER RESOLVED,,,, that the Authority is authorized to expend such funds as are necessary to

pay for all fees and other costs relating to the actions authorized by these resolutions; and

FURTHER RESOLVEDFURTHER RESOLVEDFURTHER RESOLVEDFURTHER RESOLVED,,,, that any action required by this resolution to be taken by the Chair of the

Board or Executive Director of the Authority may, in the absence of such person, be taken by the duly

authorized acting Chair of the Board or acting Executive Director of the Authority, respectively.

This resolution shall be in full force and effect from and after its adoption and approval.



__________________________________ ________________________________



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EXHIBIT A

TO MADRONA PLACE AUTHORIZING RESOLUTIONS

Mixed Finance Documents

1. Mixed-Finance Amendment to Consolidated Annual Contributions Contract

2. Declaration of Restrictive Covenants [Operating Funds Only] in favor of the U.S. Department of Housing and Urban Development (“HUD”)

3. Cooperation Agreement

4. Operating Subsidy-Only Mixed-Finance Certification in accordance with 24 CFR 941.610(a)(8)

5. Certifications and Assurances in accordance with 24 CFR 941.606(n)(1)

6. Subordination Agreement executed by the Authority, HUD, and Network for Oregon Affordable Housing (“NOAH”)

NOAH Documents

7. Term Loan Agreement

8. Promissory Note

9. Deed of Trust with Absolute Assignment of Leases and Rents, Security Agreement and Fixture Filing

10. Certificate and Indemnity Regarding Hazardous Substances

11. Pledge and Security Agreement

12. Guaranty Agreement


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MEMORANDUM


From: Mike Andrews, Director, Development

and Community Revitalization

Theresa Auld, Finance Manager


Subject: A Resolution authorizing the execution

and delivery of documents in

connection with the implementation of

a Local Blended Subsidy for the

Apartments at Bud Clark Commons

Resolution 11-12-04

The Board of Commissioners is specifically requested to approve a resolution authorizing

Authorized Officers to execute and deliver documents in connection with the implementation of a

Local Blended Subsidy structure for the Apartments at Bud Clark Commons (“BCC”), on behalf of

Home Forward, on its own behalf and as sole general partner of RAC Housing Limited Partnership,

an Oregon limited partnership.

Background

Local Blended Subsidy (“LBS”) creates more revenue for Home Forward by turning on public

housing operating subsidy for banked public housing (“PH”) units and blending PH operating

subsidy with Section 8 subsidy to adequately support unit operations. HUD approved LBS as part

of the 2012 Moving to Work Plan in May 2011. Additional HUD approval is being sought for mixed

finance closings for the Apartments at Bud Clark Commons and Madrona Place. Home Forward

expects to implement LBS next year at The Jeffrey, Stephens Creek Crossing (the Hillsdale Terrace

Redevelopment), and Martha Washington.

Bud Clark Commons, a mixed-use facility located in North Old Town at Broadway and Hoyt,

completed construction May 20, 2011. Transition Projects, Inc. started operations in June at Bud

Clark Commons, a day center for homeless people. Home Forward is managing the building and

the Apartments, which opened for occupancy in June and were fully occupied as of September

30, 2011. The 130 studio units at the Apartments include 30 public housing units, which are also

known as Annual Contributions Contract units (“ACC units”) and 100 units with project-based


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Section 8 subsidy. The Apartments have achieved stabilized operations for the past two months.

The development was completed under budget and is on schedule to pay-off the construction

bonds on January 3, 2012, with tax credit equity contributions, Portland Housing Bureau grant

proceeds and Home Forward contributions.

Home Forward has received several approvals from the Board for financing and development of

Bud Clark Commons and one approval to adopt increased project based voucher subsidy levels

necessary to support additional services and staffing levels at the Apartments at Bud Clark

Commons. The adopted project based voucher subsidy level was $724 per unit or 120% of the

payment standard (including enhanced services bonus). Home Forward now requests the Board’s

approval to adopt increased Section 8 subsidy levels of 125% of Fair Market Rent for the

implementation of LBS for all 130 units at Bud Clark Commons. The projected unit revenue will be

$831 or 120.61% of the downtown payment standard on January 1, 2013, when LBS is

implemented. This enhanced level of support is necessary to provide adequate revenue to

successfully operate the housing portion of this development and its greatly enhanced level of

services for special needs population.

Policy Implications

This action will authorize Home Forward to execute all documents related to the implementation of

LBS at the Apartments at Bud Clark Commons. This will add 100 units of public housing to Home

Forward’s portfolio and free up 100 project based vouchers. The provision of LBS with increased

Section 8 subsidy levels is necessary to support all 130 units of Permanent Supportive Housing

and housing for those with mental health and/or addition issues. These subsidies will ensure a

financially sustainable project for the long term.


The rental subsidy provided by Home Forward will support project operations and further Home

Forward’s goal to house and support the most vulnerable of our community.

The LBS revenue structure provides the opportunity to work with the City to provide services to

this vulnerable population.


LBS will eliminate a duality of public housing and Section 8 regulations for rental units at the

Apartments at Bud Clark Commons. The 130 LBS units will have public housing regulations and

provide public housing operating subsidy.

The 100 project based vouchers will be terminated on December 31, 2011, prior to the execution


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of public housing amendment for these units.




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RESORESORESORESOLUTION 11LUTION 11LUTION 11LUTION 11----12121212----04040404

A RESOLUTION AUTHORIA RESOLUTION AUTHORIA RESOLUTION AUTHORIA RESOLUTION AUTHORIZING THE EXECUTION AZING THE EXECUTION AZING THE EXECUTION AZING THE EXECUTION AND DELIVERY OF DOCUMND DELIVERY OF DOCUMND DELIVERY OF DOCUMND DELIVERY OF DOCUMENTS BY HOME ENTS BY HOME ENTS BY HOME ENTS BY HOME

FORWARD, ON ITS OWN FORWARD, ON ITS OWN FORWARD, ON ITS OWN FORWARD, ON ITS OWN BEHALF AND IN ITS CABEHALF AND IN ITS CABEHALF AND IN ITS CABEHALF AND IN ITS CAPACITY AS GENERAL PAPACITY AS GENERAL PAPACITY AS GENERAL PAPACITY AS GENERAL PARTNER OF RAC RTNER OF RAC RTNER OF RAC RTNER OF RAC

HOUSING LIMITED PARTHOUSING LIMITED PARTHOUSING LIMITED PARTHOUSING LIMITED PARTNERSHIP, IN CONNECTINERSHIP, IN CONNECTINERSHIP, IN CONNECTINERSHIP, IN CONNECTION WITH THE LOCAL BLON WITH THE LOCAL BLON WITH THE LOCAL BLON WITH THE LOCAL BLENDED SUBSIDY ENDED SUBSIDY ENDED SUBSIDY ENDED SUBSIDY

REVENUE STRUCTURE AREVENUE STRUCTURE AREVENUE STRUCTURE AREVENUE STRUCTURE AND OPERATION OF THE ND OPERATION OF THE ND OPERATION OF THE ND OPERATION OF THE APARTMENTS AT BUD CLAPARTMENTS AT BUD CLAPARTMENTS AT BUD CLAPARTMENTS AT BUD CLARK ARK ARK ARK

COMMONS, AUTHORIZINGCOMMONS, AUTHORIZINGCOMMONS, AUTHORIZINGCOMMONS, AUTHORIZING AN INCREASE OF THE AAN INCREASE OF THE AAN INCREASE OF THE AAN INCREASE OF THE ACC UNITS AND PUBLIC CC UNITS AND PUBLIC CC UNITS AND PUBLIC CC UNITS AND PUBLIC HOUSING HOUSING HOUSING HOUSING

OPERATING SUBSIDY ANOPERATING SUBSIDY ANOPERATING SUBSIDY ANOPERATING SUBSIDY AND AUTHORIZING THE USD AUTHORIZING THE USD AUTHORIZING THE USD AUTHORIZING THE USE OF SECTION 8 PROCEE OF SECTION 8 PROCEE OF SECTION 8 PROCEE OF SECTION 8 PROCEEDS THROUGH EDS THROUGH EDS THROUGH EDS THROUGH

THE LOCAL BLENDED SUTHE LOCAL BLENDED SUTHE LOCAL BLENDED SUTHE LOCAL BLENDED SUBSIDY PROGRAMBSIDY PROGRAMBSIDY PROGRAMBSIDY PROGRAM

WHEREAS,WHEREAS,WHEREAS,WHEREAS, Home Forward (also known as the Housing Authority of Portland), is the sole general

partner of RAC Housing Limited Partnership (the “Partnership”), an Oregon limited partnership; and

WHEREAS,WHEREAS,WHEREAS,WHEREAS, the Partnership owns and operates the Apartments at Bud Clark Commons (also known

as the Resource Access Center) (the “Project”), a 130-unit housing project financed, in part, with low-

income housing tax credits; and

WHEREAS, WHEREAS, WHEREAS, WHEREAS, Home Forward previously awarded project-based Section 8 vouchers to the Partnership

for 100 units at the Project; and

WHEREAS, WHEREAS, WHEREAS, WHEREAS, Home Forward has determined to use its Moving to Work (“MTW”) authority to create a

local blended subsidy (“LBS”) at existing mixed finance sites owned by Home Forward or its affiliates,

including the Project; and

WHEREAS, WHEREAS, WHEREAS, WHEREAS, the LBS program will use a blend of MTW Section 8 and public housing funds to

subsidize 130 units at the Project at a level sufficient, together with rent paid by tenants, to provide

125% of the Section 8 Fair Market Rent for those units; and

WHEREAS, WHEREAS, WHEREAS, WHEREAS, it will be necessary for Home Forward and the Partnership to execute and deliver certain

documents and agreements in connection with the implementation of the LBS program at the Project;

and


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WHEREASWHEREASWHEREASWHEREAS, Section 456.135 of the Oregon Revised Statutes provides that an authority may delegate

to one or more of its agents or employees such powers or duties as it deems proper;

NOW, THEREFORE, BE IT RESOLVED,NOW, THEREFORE, BE IT RESOLVED,NOW, THEREFORE, BE IT RESOLVED,NOW, THEREFORE, BE IT RESOLVED,

1. Approval of Documents. Home Forward has been presented with drafts of the following

documents: First Amendment to Declaration of Restrictive Covenants (Resource

Access Center/Bud Clark Commons), by and between Home Forward and the

Partnership; First Amendment to Mixed Finance Amendment to the Consolidated

Annual Contributions Contract between Home Forward and the United States of

America, acting by and through the Secretary of Housing and Urban Development

(“HUD”); and an Amendment and Restated Regulatory and Operating Agreement

between Home Forward and the Partnership (collectively, the “LBS Amendment

Documents”), which documents are on file with Home Forward’s Secretary. The Chair

of the Board of Commissioners of Home Forward (the “Board”), Home Forward’s

Executive Director, and their respective designees (each, an “Authorized Officer” and,

collectively, the “Authorized Officers”), and each of them acting alone, are authorized

and directed to execute and deliver, on behalf of Home Forward (acting on its own

behalf or as general partner of the Partnership), the LBS Amendment Documents in

substantially the forms on file with Home Forward; provided however, any Authorized

Officer may approve on Home Forward’s behalf changes to the draft LBS Amendment

Documents, including material changes, and such Authorized Officer’s signature on

the final LBS Amendment Documents shall be construed as Home Forward’s

approval of such changes. The Authorized Officers (and each of them acting alone)

are further authorized and directed to execute and deliver, on behalf of Home Forward

(acting in its own behalf or as general partner of the Partnership), any other documents

reasonably required to be executed by Home Forward or the Partnership to carry out

the transactions contemplated hereby or by the LBS Amendment Documents.

2. Expenditures. Home Forward is authorized to expend such funds (and to cause the

Partnership to expend such funds) as are necessary to pay all fees and costs relating

to the actions authorized by this resolution.

3. Acting Officers Authorized. Any action required by this resolution to be taken by the Chair

of the Board or the Executive Director of Home Forward may, in the absence of such

person, by taken by the duly authorized acting Chair of the Board or acting Executive

Director of Home Forward, respectively.


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4. Execution of Obligations. The Board directs the Executive Director of Home Forward to

cause Home Forward and the Partnership to fulfill its respective duties and obligations

under the various agreements authorized by this resolution.

5. Effective Date. This resolution shall be in full force and effect from and after its adoption

and approval.

6. Ratification and Confirmation. Any actions of Home Forward or its officers prior to the

date hereof and consistent with the terms of this resolution are ratified and confirmed.





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CERTIFICATE

I, the undersigned, the duly chosen, qualified and acting Executive Director and Secretary-

Treasurer of Home Forward and keeper of the records of Home Forward, CERTIFY:

1. That the attached Resolution No. 11-12-04 (the “Resolution”) is a true and correct

copy of the resolution of the Board of Commissioners of Home Forward, as adopted at a meeting of

Home Forward held on December 13, 2011, and duly recorded in the minute books of Home

Forward.

2. That such meeting was duly convened and held in all respects in accordance with law,

and, to the extent required by law, due and proper notice of such meeting was given; that a quorum

was present throughout the meeting and a majority of the members of the Board of Commissioners of

Home Forward present at the meeting voted in the proper manner for the adoption of the Resolution;

that all other requirements and proceedings incident to the proper adoption of the Resolution have

been duly fulfilled, carried out and otherwise observed, and that I am authorized to execute this

Certificate.

IN WITNESS WHEREOF, I have hereunto set my hand this 13th day of December, 2011.

HOME FORWARD, also known as HOUSING AUTHORITY OF PORTLAND

Executive Director and Secretary


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