BOARD OF DIRECTORS MEETING MINUTES – DRAFT NO QUORM July 20, 2022
A. Organizational Matters
Call meeting to order – Meeting called to order at 11:37 a.m. by L. Daily
Attendance –A. Church, L. Daily, A. Niles; D. Potack
Others: D. Chafizadeh, C. Dove (from public) E. Talbott, J. Welles; Absent: A. Ivor Hall, R. Monteverde, A. Morales, A. Niles, J. Surace.
Review & Approval of June 2022 Minutes – There was not a quorum of Board members present to approve. To be revisited at August 2022 meeting.
Review & Approval of Financial Reports: June 2022- There was not a quorum of Board members present to approve. To be revisited at August 2022 meeting.
Land Bank Initiative funding update – Executive Director J. Welles explained that NYS HCR released LBI RFA on July 15, 2022, and that HCR is hosting a webinar tomorrow July 21 for an overview of the process. Separate RFAs for capital-based funding will be released later. The current funding opportunity allows applicants to request up to $200,000 per year for staffing, legal, accounting and property maintenance. NCLB will be eligible for the higher amount based on the PARIS financial reporting. The RFA is due in September 14, 2022 but that we can work on submitting earlier. D. Potack asked about funding timing and availability. J. Welles replied that it was unclear but that HCR had expressed a desire to release funds as quickly as possilbe. J. Welles said that submitting the application before the due date would get the ball rolling.
Fundraising Committee reports – L. Daily asked for recap of fundraising activities in the Fall (Sept./Oct.). Ideas included walking tour of Land Bank properties and barbeque for any and all. Get the word out about NCLB’s work and spread good will. L. Daily asked about A. Church and D. Potack’s availability for a Zoom meeting the last week of July. Members indicated that they would find time to schedule a follow up fundraising committee meeting offline.
Review of Yearly Review – Staff was unable to print hard copies of Yearly Review 2021 due to printer malfunction. Board members will review the digital draft via the meeting folder link.
Review of Draft RFP for Legal Services –The RFP was be posted in May and is due July 13 ahead of the next board meeting.
B. Property Related Matters
New development/in progress:
House to Home Program: 43 Johnston closing took place on Wed. July 20 in Goshen. 27 Johnston’s closing occurred on June 30, 2022. Proceeds from home sales were used to pay off a portion of the Leviticus construction bridge loan and important bills. The balance of the loan will be repaid in full when the Lander Street properties are sold. Staff will work with new owners to assist them with applying for Historic Tax Credits from City Tax Assessor’s Office.
115 Lander & 150 Lander – Executive Director J. Welles stated that there are weeks away from being completed, only final finish work remaining, with Open Houses the first week of August, tentatively. Final plumbing and electric inspections to be followed by Certificate of Occupancy inspection. Future info sessions will be held at the office about the House to Home program and how homebuyers can access grants. L. Daily requested that the Board of Directors be included on the Open House invite. L. Daily asked about the asking price for 115 and 150 Lander. J. Welles said she anticipated asking $260,000 for 115 Lander because it is a has a 4bdrm owner occupant triplex, with 1bdrm rental) and potentially less for 150 Lander (2bdrm owner occupied duplex with 1 bdrm rental). L. Daily asked if we were going to bring in an appraiser. J. Welles stated that the appraisal was completed at the beginning of the project in 2021 at over $300,000 each and that we are selling below market.
Legacy Cities updates –Executive Director J. Welles reported that we working with the State and CPC on the budget. Everyone decided it was better to proceed with (5) buildings rather than (6) as 44 S Miller was coming out to an estimated $1.2 Million to rehabilitate, not allowing the building to fit in the program. With taking that building out, the numbers work in terms of what the State is willing to provide for subsidy at $150,0000 per unit. We have been working on value engineering with co-developer and architect to find savings. The properties have received variances from Zoning Board of Appeals for non-conforming setbacks and parking requirements. NCL working with Orange County to access NSP funding that will make the project viable.
Sales of NCLB Development Projects:
34-38 Lander update: Draft contracts sent to purchasers approved at last meeting (34 Lander to Ricardo Santos and 38 Lander to PJQ Real Estate Ventures LLC -Prince Holman) were approved L. Daily asked if closings are becoming quicker. J. Welles said that the 27 Johnston’s closing was delayed due to the buyer’s grants.
C. Other
1. 104 Washington – J. Welles had a conversation with Phillipe and Charlie on project update. Demolition was completed and site is cleared. Everything is more expensive than anticipated. Current budget is at $7M ,a significant increase over the original budget, with bids from contractors coming in 20-40% above previous estimates. The project is proceeding with revised budget and financing. D. Potack asked if it was time to begin discussion on potential impact to deadline. L. Daily asked J. Welles to reach out in next 1-2 weeks to feel out Phillipe about potential impact to timeline. The BoD will revisit at the August 17 meeting.
2. 143 Washington – J. Welles stated that BJH has received all local zoning and planning board approvals from the city. At most the recent update, BJH was waiting on approval and commitment of Orange County HOME funds anticipated in Fall 2022. HOME funding is crucial to the viability of this project. The bids they received from general contractors that also came back in 20% higher than the original estimates and they’re working with contractors to value engineer the project to find cost savings. Increased interest rates are also throwing these projects off.
3. Cash flow projection – D. Potack asked about cash flow projection and expenses and asked if the balance on the Leviticus Bridge Loan is at $472,500. J. Welles stated that we are paying back $135,000 from the closing on 43 Johnston and additional $67,500 was repaid at closing of 27 Johnston. D. Potack asked how the balance would be paid in full. J. Welles stated the final balance will be repaid with proceeds from the sales of 115 & 150 Lander St. The sales proceeds after loan repayment will leave NCLB in a better cash position allowing us to pay off all or a significant portion of the line of credit.
4. Restore New York grant program – A. Church stated she had one item to add to agenda regarding the grant program Restore New York. A. Church asked J. Welles if NCLB would be interested in partnering with the city to redevelop city-owned buildings into income restricted rental housing. If NCLB is interested a letter of intent (LOI) with a preliminary budget would need to be sent to the city before the second week of August. The LOI is non-binding and the grant program provides funds for abatement, stabilization and rehab based on square footage and unit count. D. Potack asked A. Church about the economics of the program, i.e. what expenses or overhead will it cover. A. Church said the program would allow NCLB to act as developer or pass through the funding to a developer and administer the program. The city owns several properties on Lander St and is may take others back on the street that may be considered for the program. J. Welles said that the NYSLBA and other land bank support organizations are promoting that land banks to participate in Restore New York as a potential funding source. A. Church asked if the Board was comfortable exploring this opportunity and L. Daily, D. Potack and A. Niles concurred that they were on board. A. Church stated that the Restore program presents an opportunity to leverage the rehab work NCLB has undertaken on Lander St properties for homeownership opportunities, while conversely committing to rehabilitating buildings that aren’t feasible for homeownership into moderate income rental apartments, achieving a balance of development.
D. Executive Session:
1. At 12:03 pm, L. Daily took a motion to close the meeting and move into unofficial Executive Session
(No quorum, not an official Executive Session).
2. Personnel – Administrative Manager was released on July 18, 2022 due to performance related matters. D. Chafizadeh inquired if the employee had insurance coverage through NCLB and J. Welles confirmed. D. Chafizadeh noted that a letter regarding insurance coverage needed to be sent to the terminated employee advising of rights. J. Welles said that the Land Bank would post a job opening to fill the Administrative Manager role part-time. D. Potack asked for details on the job description, time, skills and expectations and suggested that Board members could circulate the job post to their network. J. Welles noted that D. Mangaser’s would be resigning the last day of July but would be available for one-off special projects.
3. Property Maintenance/Management – Mesh Realty is no longer NCLB’s property manager as of July 8, 2022. Request for quotes will be sent out to local property managers. D. Potack suggested using separate contractors for each service, i.e. landscaper for weed whacking and mowing, clean-up company for clean-outs, etc. NCLB staff will explore this possibility be requesting bids. Questions regarding the threshold for written quotes was addressed by D. Chafizadeh. From $0 to $5000 the Executive Director may approve, from $5001 to $10,000 three quotes are required while above $10,000 requires an RFP.
E. Meeting Adjourned A. Church makes a motion to adjourn the meeting and D. Potack seconds the motion. The meeting adjourned at 12:10 p.m. Next Board Meeting: August 27, 2022, 11:30 a.m. to be held in person at 15 Chambers St.