GMHA Board Debates Fate of its Housing Services Inc. Entity
Which Approaches Insolvency
Geauga Metropolitan Housing Authority (GMHA) - 3/18/2025
Meeting Info: Regular Meeting on March 18, 2025 at 4:00 pm (EST) in the Conference Room at Murray Manor at 385 Center Street, 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 - 4:04 pm
2. Attendance: Chair Jeff Markley and Board Members Susan Kemerrer, Walter Claypool and Sandy Grassman were present. Board Member Michael Petruziello was absent until the discussion about Housing Services Inc. under the New Business section. Observer Note: Sandy Grassman is replacing recently retired board member Richard Depenbrock. She was welcomed before the start of the meeting.
Staff Attendance: Dawn Farrell, Executive Director; Carrie Carlson, Chief Financial Officer, and Colleen Del Balso, Legal Counsel.
Others Present: This observer and four other members 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 February Minutes
The board reviewed the minutes from the regular meeting held on February 18, 2025. The minutes were approved with Mr. Claypool and Ms. Grassman abstaining.
5. Financial Statements & Write-Offs
The board approved the 2024 year-end financial statement, as well as the amended January and February public housing and Housing Choice Voucher (HCV) financial statements. Additionally, the January and February operating statements were reviewed and approved. A motion was passed to approve a write-off in the amount of $230 for March 2025.
6. Commissioners' Report - Nothing to report.
7. Report of Counsel - Nothing to report.
8. Report of the Director
Ms. Dawn Farrell, Executive Director, reviewed the report:
January Programs Report - Not commented on.
RAD (Rental Assistance Demonstration) Conversion
The board discussed the ongoing exploration of RAD conversion as a means of securing long-term funding stability and operational flexibility. A major point of discussion was the status of consultant Mike Andrews, whose HUD contract was recently canceled. While he has expressed willingness to continue assisting GMHA, his future involvement remains uncertain. The 18-month RAD conversion clock has not officially started. Additional research will be conducted by the GMHA staff to determine next steps and whether, or how, to involve Mike Andrews.
Family Self-Sufficiency (FSS) Grant
The Family Self-Sufficiency (FSS) grant had been renewed, ensuring continued support for residents aiming to achieve financial independence.
Policy Changes
The director, Ms. Farrell, outlined various policy updates recommended by Nan McKay & Associates, an industry leader in housing policy compliance, in order to keep up with Housing and Urban Development (HUD) policy changes. These changes align with HUD’s safe harbor guidelines, ensuring GMHA remains in full regulatory compliance. Ms. Farrell is considering which to implement:
1. Small Area Fair Market Rents (SAFMRs) – Implement zip code-based rent calculations. Already implemented by GMHA.
2. Higher Payment Standards – Increase Section 8 voucher payments to 120% of Fair Market Rent to improve affordability.
3. Lot Rent Assistance – Allow rental assistance for mobile home lots.
4. Buy America, Build America (BABA) Requirements – Potential exemption from HUD’s Buy America, Build America rules under RAD.
5. Administrative & Compliance Updates – Align policies with HUD’s latest lease, eligibility, and reporting standards.
Capital Fund Emergency Grant
There was no news on the Capital Fund Emergency Grant of $250,000, although the director, Ms. Farrell, expects GMHA will receive the full grant.
Continuing Resolution (Federal) and Funding Freeze Updates
Recent federal funding uncertainties have left GMHA staff unclear about whether the capital fund has changed. If it does not change it is effectively a cut in funding at the current level.
New Employees
The housing authority successfully hired one new maintenance employee, but a second hire declined the position before starting. Recruitment efforts continue in order to backfill the Maintenance Manager and Maintenance Technician positions.
Local Flexibility Options
The director, Ms. Farrell led a discussion on Local Flexibility Options to explore ways to secure additional funding to cover gaps in GMHA’s current budget. The board recognized that, while federal funding remains their primary source, there are potential flexibility measures that could help maximize the use of available resources and bring in new revenue.
One key strategy discussed was adjusting payment standards within HUD’s allowable range to ensure that GMHA is making the most of the funding it receives for rental assistance. By carefully setting these standards, they could assist more residents.
Another option was to utilize alternative funding sources, such as reallocation of certain administrative funds, leveraging grant opportunities, or identifying ways to use local resources more efficiently. The discussion also touched on the possibility of offering landlord incentives to increase participation in the Housing Choice Voucher (HCV) program, thereby improving lease-up rates and ensuring that allocated funds are fully utilized.
This effort to avoid using capital funds now would help ensure a smoother transition if GMHA moves forward with RAD full conversion. Specifically, if GMHA can self-fund its replacement reserves—the funds needed for ongoing maintenance and property improvements—it would reduce the need for external financing.
The director, Ms. Farrell, indicated this is significant because if GMHA has to raise capital through tax credits or other funding sources, the RAD conversion process becomes far more complex. The added complexity would introduce additional regulations, oversight, and potentially new restrictions, making property management and financial planning more challenging in the long term.
Real Estate Assessment Center (REAC)
The 2024 year-end financials were submitted to HUD’s real estate assessment system on March 7.
Fair Housing Resource Agency (FHRA)
The FHRA has lost the majority of its grant funding, resulting in staff layoffs. It will now only be able to offer housing application fee assistance within Geauga County. The FHRA had provided broader fair housing support, education, and advocacy services within Geauga County.
OLD BUSINESS - Nothing to discuss.
NEW BUSINESS
Benefits
The board voted to revise the employee benefits policy, allowing new hires to receive benefits starting the first of the month following their hire date rather than after a 90-day waiting period.
Strickland Arms UFAS (Uniform Federal Accessibility Standards) Extension
Construction delays at Strickland Arms, attributed to cabinet delivery issues, pushed the expected completion date to mid-March. The board approved a $0 change order extending the project deadline to March 28, 2025.
Murray Manor Generator
After multiple years of trying to obtain a generator to support power outages, the Murray Manor generator has been delivered and placed on-site. But it has not yet been fully installed. It is currently sitting in the yard on a designated pad. The board discussed the next steps, including the need for additional work, such as installing a 400A main disconnect for the automatic transfer switch (ATS), which was approved through a $3,790.98 change order. The generator will work during power outages and supports essential building systems and not individual living units nor laundry facilities.
Information Technology Services
The board authorized advertising for IT service proposals as the current contract is set to expire in July 2025.
Housing Services Inc. (HSI) - Board Reappointment
The GMHA board approved the reappointment of Mr. Craig Sernik to the Housing Services Inc. Board.
Housing Services Inc.
An HSI board member, Tom Niewulis, was present in the audience in order to speak with the GMHA board. HSI was originally created to manage and develop land for affordable housing, but its financial instability, lack of progress, and uncertain role in GMHA’s future have prompted serious discussions about whether to dissolve the entity or repurpose it, potentially for RAD or another initiative. The board reviewed the ongoing challenges tied to the five vacant parcels owned by HSI, noting that decades of efforts to develop or sell the land have been unsuccessful. With only enough funds to sustain basic operational costs for another year, the entity faces a critical decision regarding its future.
The GMHA board debated three primary options:
Retaining the properties and pursuing new development opportunities: The board discussed leveraging current market conditions to attract developers specializing in affordable housing. Potential strategies included partnering with a nonprofit builder like Habitat for Humanity or securing tax credits to support development.
Transferring the properties back to GMHA: This would provide GMHA with direct control over the lots, allowing for the exploration of public housing development opportunities. However, HUD-imposed restrictions on public housing expansion present a potential challenge.
Selling the properties and dissolving Housing Services Inc.: Some board members argued that if viable development partners cannot be secured within a set timeframe, the most responsible course of action would be to sell the properties and dissolve the nonprofit entity.
Ultimately, the board agreed to table the discussion for further research and have Mr. Markley attend the next Housing Services Inc. meeting to evaluate all available options
Closing Email Statement - Tabled until next month’s board meeting.
Policy Modification - Tabled until next month’s board meeting.
On-Call Personnel Policy Update - Tabled until next month’s board meeting.
9. Hearing of the Public
GMHA resident Roberta inquired about the possibility of placing a recycling bin in a central location for residents’ convenience. She noted that many residents were willing to recycle but found it difficult to transport materials to off-site collection points. The board acknowledged her request and stated that they would look into options, including whether Dumpster Bandit or another waste management provider could supply a bin and if there would be any associated costs.
GMHA resident Dave asked for clarification on which areas of Murray Manor the newly installed generator would support. The board confirmed that the generator would power common areas, hallways, emergency lighting, and critical infrastructure like fire safety systems, but would not provide electricity to individual apartments. Some residents had assumed that they would have backup power for their units, so the board agreed to increase communication efforts to clarify the generator’s purpose and ensure residents understand its function.
10. Executive Session & Further Business
The board entered an executive session at 5:30 pm, pursuant to Ohio Revised Code (ORC) under 121.22(G)(1) and 121.22(G)(3) for the employment, compensation, discipline, or promotion of a public employee and contract negotiations.
Upon reconvening the public session at 6:00 pm no motions were made. The board chairman, Mr. Markley, stated that the staff was to continue to seek hiring of a Maintenance Manager and Maintenance Technician.
There was no further business.
Adjournment
The meeting adjourned at 6:06 pm.
Next Meeting: The next meeting will be on April 15, 2025 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: Anne Ondrey
Reviewer: Carol Benton
Date Submitted: March 23, 2025
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