[MCM00001830_SPEAKER_05]: Let's call the meeting to order. It is 4.32 p.m. Roll call, please.
[Jeffrey Driscoll]: Commissioner Genvia, absent. Commissioner Foley, present. Commissioner Lista, present. Commissioner Holien, here. Commissioner Luongo, present.
[MCM00001830_SPEAKER_05]: Pledge of Allegiance. Flag is over here. Oh, wow.
[Jeffrey Driscoll]: I pledge allegiance to the flag of the United States of America and to the republic for which it stands, one nation, under God, indivisible, with liberty and justice for all.
[MCM00001830_SPEAKER_05]: New business, resolution number 2022-067, consideration of request by the executive director subject to the successful conclusion of final negotiations to select a construction lender and permanent lender for the comprehensive modernization of Saltonstall and authorize the executive director or his designee to execute a letter of intent and any and all documents necessary as the executive director shall determine to effectuate entering into an agreement with the construction lender and the permanent lender.
[Jeffrey Driscoll]: We had sent out a memo to you that's dated November 18 that identified specifically the terms and conditions of this. We have Natalie here on Zoom and Natalie's available as am I to answer any questions that you may have. This along with both B and C is equally important with B and C as far as the time frame is concerned and that's why we're looking to, that's why we did this FEAR special meeting. Natalie, I don't know if there's anything that you'd like to present to the board based upon the letter, the memo that went out. Boy, I think without the mic, we'd be able to hear you. She was maybe a little too close. All right.
[MCM00001830_SPEAKER_05]: I think you turned it off.
[Jeffrey Driscoll]: I turned it off, yeah.
[MCM00001830_SPEAKER_05]: Okay.
[Jeffrey Driscoll]: Can everyone hear me now? No.
[MCM00001830_SPEAKER_05]: Go ahead. Say something.
[Jeffrey Driscoll]: Say something again.
[SPEAKER_01]: Hello?
[Jeffrey Driscoll]: Good? It's better. Can you hear?
[SPEAKER_01]: Is that better? Yeah.
[Jeffrey Driscoll]: Yes.
[SPEAKER_01]: So thank you, everyone, for having me back again. I can just quickly run through some of the key highlights of the memo. So essentially what the memo is recommending is that the board vote to approve the executive director to sign a letter of intent with two lenders. It would be Citizens Bank, who is the lead lender for the construction financing, They are partnering with Eastern Bank and Cambridge Savings on the construction loans. And for the construction loans, it's two parts. It's a $68 million tax-exempt bond, and it's a smaller, roughly $25 million taxable construction loan. The other part is to select Massachusetts Housing Partnership as the permanent lender for the project. They're both two banks that have significant experience with this type of lending, tax-exempt bonds, affordable housing development. There was analysis done based on The Manford Housing Authority issued an RFP to select both an equity partner and a lender for the self-install development project, and it received six proposals. These proposals ranged from people who proposed just to provide the permanent debt or just the construction debt or both. What the MHA self-install team looked at was which are the lending proposals that have the best economic terms for the project as well as the best business terms for the Medford Housing Authority. And what the memo includes is essentially One team would represent Citizens Bank as the construction lender and Massachusetts Housing Partnership as the permanent lender. And the other bank was Boston Capital, which has suggested providing both the construction and the permanent debt. And as these proposals were analyzed by the team, there's a table on, I don't have the page numbers here, but it has a little yellow top. What it shows is looking at both how much the Medford Housing Authority through this project would pay in terms of fees, to the bank, as well as how much it would pay in interest rate. And essentially, in looking through the analysis with the loans, it was found that Cambridge Savings and, well, Citizens Bank with the Massachusetts Housing Partnership had the most favorable economic terms for the project, and that Boston Capital would result in $600,000 less. it funds available to the project. And a key component to this analysis was to see that these banks have the ability to close by the end of January 2023, which is a requirement for the SALT and SALT project, and that they've done this type of work before, which will allow them to essentially have the expertise to make sure that that tight closing time frame can be met.
[Jeffrey Driscoll]: Thanks, Natalie.
[SPEAKER_00]: Yep.
[Jeffrey Driscoll]: Anyone have any questions of Natalie? Madam Chair, will you entertain a motion? Sure.
[MCM00001830_SPEAKER_05]: Would you like me to read it?
[Jeffrey Driscoll]: Please.
[MCM00001830_SPEAKER_05]: The motion would be to select a construction lender being Citizens Bank plus, do you want me to say the banks?
[Jeffrey Driscoll]: No, no, no. That's not the motion. The motion is the resolution 3A. Can you speak up please, Madam Chair? Sorry. Resolution 3A on the agenda.
[MCM00001830_SPEAKER_05]: Consideration of request by the executive director subject to the successful conclusion of final negotiations to select a construction lender and permanent lender for the comprehensive modernization of Salton Stall and authorize the executive director or his designee to execute a letter of intent and any and all documents necessary as the executive director shall determine to effectuate entering into an agreement with the construction lender and the permanent lender. Do I hear a motion?
[Jeffrey Driscoll]: I'll move approval. Second.
[MCM00001830_SPEAKER_05]: All in favor? Aye.
[Jeffrey Driscoll]: Thank you.
[MCM00001830_SPEAKER_05]: Thank you very much. Thank you, Natalie. We'll move on to resolution number 2022-068, consideration of request by the executive director to approve and execute the Department of Community Development certification of year-end financial statements for 401, 689, and MRVP programs as of September 30th, 2022. 4,100. It's actually 400-1. We won't get technical. Sorry. Michael, go ahead.
[SPEAKER_00]: So the year-end financial certifications is an annual requirement by DHCD that the board certify the financial statements of the housing authorities. So basically what you'll be certifying is the Walkland Court, 689, and the Mass Rental Voucher Program's financial statements. along with two other certifications, the five highest paid positions and the tenants accounts receivable certifications. So just to give a quick overview of our process, every week I am checking the accounts receivable and the accounts payable entries and then every month I'll go through the monthly closing and book the entries as needed. Once I'm finished with that, I'll then contact Teresa Ewald, and she'll come out, she'll set a date, she'll come out, she'll review my work, and to make sure that the Housing Authority's ledgers are all in compliance with the federal state regulations. And then on an annual basis, we get audited by Markham CPAs. They're a firm that's familiar with auditing public housing authorities. numerous housing authorities in Massachusetts, so they're familiar with DHCD regulations. So that's basically the process, what we do every month and every week and on an annual basis. The financial statements look good for the state. Wachlan Court is operating on a surplus. They're at a 91% reserve ratio, which is phenomenal for a program that size. The state requires to be at 35% and we're at 91%. So, 689 and MRPP, you're both running on surpluses.
[Jeffrey Driscoll]: 689 is Foster Court. The yellow building at the end of Foster Court. There's the eight units there. the MRVP is the state's version of section 8. Okay.
[MCM00001830_SPEAKER_05]: Do I hear a motion to approve the certification of year and financial statements for these programs?
[Jeffrey Driscoll]: I'll make a motion to approve.
[MCM00001830_SPEAKER_05]: All in favor?
[Jeffrey Driscoll]: Aye.
[MCM00001830_SPEAKER_05]: Motion carries. Resolution number 2022-069, Michael just mentioned this, but it's consideration of request by the Executive Director to approve and execute the Department of Community Development Certification of Top 5 Compensation Form and the Certificate of Compliance with Notification Procedures for Federal and State-Led Paint Laws as required by the Department of Housing and Community Development.
[Jeffrey Driscoll]: Madam Chair, I see a typo here. It should execute the Department of Housing and Community Development in the first month.
[MCM00001830_SPEAKER_05]: Any questions?
[SPEAKER_01]: Do you want me to go get that? Um, into the other kitchen, yes.
[Jeffrey Driscoll]: Can we take the vote first?
[SPEAKER_01]: Yes, let's take the vote.
[Jeffrey Driscoll]: Jim, we need you to take the vote.
[MCM00001830_SPEAKER_05]: He's dying over there. It's okay, we can wait a second.
[Jeffrey Driscoll]: I'm on a time crunch here, and he's walking away.
[MCM00001830_SPEAKER_05]: She said 15 minutes, we got one minute to go.
[Jeffrey Driscoll]: We have water here. We'll wait till he gets back.
[MCM00001830_SPEAKER_05]: We may, yes. This is something Jeff does, right?
[SPEAKER_00]: Yeah, I'll fill those out. I've already got a copy.
[MCM00001830_SPEAKER_05]: And you want everybody to sign this?
[SPEAKER_00]: No, we're still under COVID restrictions with regard to the forms and so forth. As Teresa told me, all we need to do is just have Jeff sign up and submit a copy of the affidavit of the board vote and we'll be good to go.
[MCM00001830_SPEAKER_05]: I did not know that.
[SPEAKER_00]: Yeah, March of 2023 is when DHCD will lift those regulations.
[MCM00001830_SPEAKER_05]: Wow, here I am chasing board members for signatures.
[SPEAKER_00]: Now when is Lexington's year end?
[MCM00001830_SPEAKER_05]: June. So we've already done all this, yeah?
[SPEAKER_00]: Sorry, I was choking on all that money.
[MCM00001830_SPEAKER_05]: Do I hear a motion for resolution number 2022-069?
[SPEAKER_00]: I make the motion. Second.
[MCM00001830_SPEAKER_05]: All those in favor?
[SPEAKER_00]: Aye.
[MCM00001830_SPEAKER_05]: Motion carries.
[SPEAKER_00]: Thank you all very much.
[MCM00001830_SPEAKER_05]: Do I hear a motion to adjourn?
[SPEAKER_00]: Yes, motion adjourned.
[MCM00001830_SPEAKER_05]: Second?
[SPEAKER_00]: Yeah, I'll second.
[MCM00001830_SPEAKER_05]: All in favor?
[SPEAKER_00]: Aye.
[MCM00001830_SPEAKER_05]: The meeting is over. 446.