NEWPORT NEWS REDEVELOPMENT AND HOUSING AUTHORITY BOARD OF COMMISSIONERS REGULAR MEETING

February 19, 2019 8:30 a.m.

22727th Street, Newport News

Pledge of Allegiance to the Flag of the United States of America

2. Roll Call

3. Consider approval of minutes of regular meeting, January 15, 2019.

4. Communications

5. New Business

a. Presentation on Multifamily Housing Revenue Bonds Issuance Request for Ivy Farms Apartments

b. PUBLIC HEARING: To receive comments on Multifamily Housing Revenue Bonds Issuance Request for Adams Drive, LLC

c. Consider a resolution approving a Multifamily Housing Revenue Bonds Issuance Request for Adams Drive, LLC

d. Consider a resolution approving the formation of Ashe Manor, LLC as a successor to Orcutt Senior Housing L.P.

e. Consider a resolution authorizing the extension of letters of credit issued by Old Point National Bank for the financing of the Oyster Point-Brighton and Cypress Terrace Projects

f. Consider a resolution awarding Project Based Vouchers for Ivy Farms Apartments, The Coile Apartments and Carrier Point I & II

6. Report to the Board

7. Closed session in accordance with the Virginia Freedom of Information Act, Code of Virginia, Section 2.2-3711

8. Consider adoption of resolution certifying a Closed Meeting in conformity with Virginia law.

9. Any other business to come before the Board.

0 Comments from the Public: (Time Limit 5 Minutes)

Minutes of a Meeting of the Newport News Redevelopment and Housing Authority

January 15, 2019

Having duly given public notice, the Board of Commissioners of the Newport News Redevelopment and Housing Authority met at the offices of the Authority at 22727th Street, in the City of Newport News, Virginia, at 8:30 am. on Tuesday, January 15, 2019.

Pledge of Chairman Berry led the assembly in the Pledge of Allegiance to the Flag of the United Allegiance States of America.

Roll Call The meeting was called to order by the Chairman, and those present were as follows:

Commissioners present: - Bea Berry Lou Call Gary B. Hunter Mark Hager Josephine Clark Kenneth Penrose Lisa Wallace-Davis

Also present: Raymond H. Suttle, Jr. Jones, Blechman, Woltz & Kelly, P.C.

Karen R. Wilds Executive Director

Carl V. Williamson Director of Housing

Valarie Ellis, Director Administrative Services

Sandra Powell, Director Community Development

Lisa Dessoffy, Director Finance

Teresa Bennett Administrative Assistant

Tricia Wilson Development Department, City of Newport News

William Black NNRHA, Board Appointee

Approval of Commissioner Hunter moved that the minutes of the meeting of the Board of Minutes, December Commissioners held on December 18, 2018 be approved as presented. The motion 18, 2018 was seconded by Commissioner Clark and passed with a majority vote. Mr. Hager

abstained as he was not present at the December meeting.

Election of Officers Commissioner Hunter made a motion to elect Lou Call to the position of Chairman. The motion was seconded by Commissioner Clark and passed with a unanimous vote.

Commissioner Call made a motion to elect Hunter to the position of Vice Chairman. The motion was seconded by Commissioner Clark and passed with a unanimous vote.

Minutes of a Meeting of the Newport News Redevelopment and Housing Authority

January 15, 2019

Communications The following communications were provided to the Board and reviewed by the Executive Director. 1) A letter from the City of Newport News appointing Mr. William C. Black to the Board of Directors for Newport News Redevelopment and Housing Authority, effective January 24, 2019 for a four year term. 2) An article from the Daily Press dated December 26, 2018 entitled "Newport News public housing complex getting major renovations". The article was concerning the renovations being made at Lassiter Courts. The renovations are made possible through the federal Rental Assistance Demonstration program that allows housing authorities to use equity from low-income housing tax-credit programs to renovate housing. 3) An article from the Urban Wire, dated December 17, 2018 entitled "America's public housing program faces an uncertain future", concerning the aging of public housing and the lack of funding for needed repairs. 4) An article from the Washington Post, dated January 3, 2019. The article was entitled "Housing Vouchers mostly move families into impoverished neighborhoods, even when better apartments exist elsewhere". The article discussed a study that states low-income families using federal housing vouchers remain overly concentrated in lower income neighborhoods.

New Business

The Board of The Board had been provided copies of a resolution approving a loan modification Commissioners of the request from Jeffery Reed, President of Community Housing Partners (CHP), to Newport News Redevelopment and extend the payoff of the $100,000 loan on River Trace Apartments. This will allow Housing Authority additional time for CHP to seek refinancing opportunities for the property. In February, Approving a Loan 1997 the Authority provided $100,000 in HOME Investment Partnership funding to Modification for River River Trace Limited Partnership (General Manager VMH Inc. now Community Housing Trace Limited Partnership Partners), to assist with the acquisition and renovation of the River Trace Apartments,

a 56 unit apartment complex in Denbigh. At the time, the assistance was structured as a grant to be forgiven in 3 years but was modified as a loan for tax credit purposes. This loan has had four modifications since 1997, the latest being July, 2017 with an ending date of December, 2018. This property continues to operate according to the provisions of the LIHTC program as well as the HOME program guidelines. The owners have made personnel changes at both the property and regional level and have invested additional cash to address the most pressing physical needs. Currently, NNRHA's loan is in first lien position on the property and there is no other debt on the property. The Authority is being asked to grant a fifth extension of the $100,000 loan to June 1, 2019, while they seek additional debt options to address capital needs.

Commissioner Call made a motion to approve the resolution. Commissioner Davis seconded the motion which passed with a unanimous vote. The resolution is attached to and made a part of these minutes.

The Board of The Board had been provided copies of a resolution approving a Newport News Urban Commissioners of Development Action Grant (NNUDAG) loan modification for Pearlie's Restaurant. The the Newport News Board was asked to consider an additional six month extension. Pearlies is currently Redevelopment and in operation on a part time basis, 3 days per week for lunch, and are able to meet its Housing Authority operating expenses. The owners are pursuing other avenues to generate revenue to approving a NNUDAG return as a successful business in the community. Ms. Wilds stated that she is Loan Modification recommending that the modification period be extended for an additional six months Request for Pearlies beginning January, 2019, ending June, 2019. Ms. Wilds is recommending allowing Restaurant

the borrowers to continue to pay the reduced, non-accruing monthly payments of $200 through June, 2019. In June, 2019, Authority and City staff will reevaluate the business for its financial viability and make a more long-term recommendation to the board on re-structuring the loan.

Commissioner Penrose made a motion to approve the resolution. Commissioner Call seconded the motion which passed with a majority vote. Commissioner Hager abstained. The resolution is attached to and made a part of these minutes.

Minutes of a Meeting of the Newport News Redevelopment and Housing Authority

January 15, 2019

Ms. Dessoffy reported the auditors will start the audit for all of the entities next week.

Ms. Ellis reported that the Authority will be holding the Employee Health Fair February 6, 2019.

Ms. Powell reported Authority and City staff will be hosting a community forum tonight at the Marshall Early Learning Center. There will be a presentation of Phase 1 of the Choice Neighborhoods Initiative Housing Plan, as well as updates on the People Plan and the Neighborhood Plan. She also reported that the Lassiter Courts RAD conversion is moving forward. Construction is underway on 32 apartments. The project includes the renovation of all 100 apartments. Site work for the new administration/community building, at Lassiter Courts, is scheduled to start in late January, 2019.

Closed Session Commissioner Call made a motion to go into closed session for discussion of a personnel matter related to the performance evaluation of the Executive Director consistent with Virginia Code 2.2-3711 (A) (1). The motion was seconded by Mr. Hunter.

Coming out of closed session a motion was made by Commissioner Call certifying only public business matters lawfully exempted from open meeting requirements by Virginia Law and only those matters as identified in the motion were discussed in the closed meeting, today. The motion was seconded by Commissioner Hunter in accordance with Virginia law, 2.2-3711 (A) (1). The resolution is attached to and made a part of these minutes.

Other Business

The Board of The Board had been provided copies of a resolution of appreciation for Commissioner

Commissioners of the Bea Berry for her service to the Board of Directors of the Newport News

Newport News Redevelopment and Housing Authority since 2011. Ms. Berry served as Chairman Redevelopment and and Vice-Chairman. Ms. Berry has played a major role in representing the Authority Housing Authority and leading the Board. Approving a Resolution of Appreciation for Bea Berry Commissioner Call made a motion to approve the resolution. Commissioner Hunter

seconded the motion which passed with a unanimous vote. The resolution is attached to and made a part of these minutes.

There being no other business to come before the Board, the Chairman adjourned the Adjournment meeting at 9:30 am.

Secretary-Treasurer