Board Reverses Course and Decides to Apply for RAD Program,
Locking in Higher Revenue Opportunities
Geauga Metropolitan Housing Authority (GMHA) - 11/19/2024
Meeting Info: Regular Meeting on November 19, 2024 at 4:00 pm (EST) in the Conference Room at Harris House 351 Lost Pond Pkwy, Chardon, OH 44024. This meeting was in-person only.
Agenda: An agenda was provided at the meeting. It is not available online. The documented proceedings below follow the agenda and are presented sequentially.
Proceedings:
1. Call to Order - 4:00 pm
2. Attendance: Richard Depenbrok, Board Chair, Jeff Markley, Vice-chair, and Board Members Walter Claypool, Susan Kemerrer and Michael Petruziello.
Staff Attendance: Dawn Farrell, Executive Director and Carrie Carlson, Chief Financial Officer. Todd Petersen, Legal Counsel.
Others Present: This observer and one other member of the public were in attendance.
Observer Note: The Executive Director indicated they were recording the audio of the meeting.
3. Pledge of Allegiance - Recited
4. Approval of Minutes
Minutes from October 15 (regular meeting) and November 6 (special meeting) were reviewed and approved unanimously.
5. Financial Statements and Write-Offs
Financial statements for public housing were reviewed and accepted without opposition. November write-offs totaled $4,812.23, approved unanimously.
6. Commissioner’s Report Mr. Markley emphasized the need for local control over housing programs and discussed the RAD (Rental Assistance Demonstration) program's potential benefits and risks. Concerns were raised by Mr. Claypool about the lack of detailed financial analyses to justify moving forward with RAD. The board engaged in a debate regarding the implications of RAD, particularly its association with Section 8 housing.
7. Report of Counsel – None
8. Report of Director (Ms. Farrel reporting)
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October Programs Report: Projected funding cuts for operating funds (2.0%-7.5%) and modest increases in housing voucher funding were presented. The 2025 budget and Five-Year Plan were submitted to HUD. The director also reported on outreach efforts, including presentations at local community organizations to build awareness about housing initiatives and partnerships. These efforts are intended to foster community support and strengthen collaboration with other local agencies. Additionally, the director mentioned progress in implementing new tenant support programs, such as financial literacy workshops and job training sessions, aimed at enhancing self-sufficiency among residents.
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Maintenance Issues: A recent water main break repair was discussed; costs are still pending and it is uncertain if the municipality will have to pay the bill.
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Funding Updates: Discussions about ongoing funding resolutions and potential budget impacts for 2025. The director highlighted concerns about potential reductions in funding for certain programs, noting that operating fund cuts could significantly impact the ability to maintain current service levels. It was also mentioned that HUD has not yet finalized its funding allocations, and a continuing resolution is currently in place, creating uncertainty. The director stressed the importance of financial prudence and planning for possible reductions, including exploring alternative funding sources and partnerships to mitigate budget constraints.
9. Old Business – None
10. New Business
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Competitive Bidding Threshold: The Ohio Revised Code increased the bidding threshold to $75,000, with a 3% annual increment. The board approved updating the GMHA procurement policy to reflect this change.
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Legal Services Contract: The board approved a one-year extension for Peterson & Peterson with no rate increases.
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Accounting Services Contract: Contract with Salvatore Consiglio of Salvatore Consiglio, CPA, Inc., extended for 2025, with a $600 increase, totaling $14,400.
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HSI Board Appointment: John Fitz was reappointed to the Housing Services Inc. Board.
Scranton Woods Easement Modification: Easement location shifted 25 feet west, allowing for improved access to water and sewer facilities. The resolution was approved. Reviewer Note: There was no discussion about the function of this Board. More information will be included in future reports.
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Holiday Policy Change: Half-day holiday changed from April to Christmas Eve, starting this year at the request of employees. Additional discussions on offering floating holidays were tabled for future consideration.
11. Rental Assistance Demonstration (RAD) Discussion
The board returned to debating the submission of an application for the RAD (Rental Assistance Demonstration) program. Reviewer Note: See LWVGeauga Report on the November 6, 2024 meeting. Proponents emphasized the potential benefits of locking in current funding rates for 18-24 months, which would provide financial stability and enable a deeper exploration of RAD as a funding model. Board proponents argued that RAD could reduce federal oversight and give the local authority more flexibility in managing housing programs. Additionally, it was noted that transitioning to RAD could help secure additional funding for property improvements that might not be available under the current system.
However, concerns were raised by some board members about the increased administrative burdens that RAD might bring, including compliance with new regulations and potential complexities in financing. There were also worries about possible federal funding cuts in the future and whether the RAD program would truly offer better financial security compared to the existing structure.
After thorough discussion, given that the application was non-binding and imparted no liability on the GMHA, the motion to submit the application for RAD was approved with a 3 (Depenbrock, Kemerrer, and Markley for the motion) to 2 (Petruziello and Claypool against the motion) vote, reflecting both support for financial opportunities and caution about potential risks.
12. Hearing of the Public
A lease-related question was raised by a public attendee and redirected to the property manager.
Adjournment:
The meeting adjourned at 5:34 PM.
Observer Note: More information regarding RAD can be found here on the Housing and Urban Development (HUD) government website.
Next Meeting: The next meeting will be on December 17, 2024 at 4:00 pm at Murray Manor. This will be a regular board meeting
More information about the Geauga Metropolitan Housing Authority can be found here.
Observer: David Lewis
Editor: Gail Roussey
Reviewer: Carol Benton
Date Submitted: 11/21/2024
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