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Recent Power Outage Impacts GMHA Residents and 

Section 8 Fair Market Value Rental Changes Mandated

Geauga Metropolitan Housing Authority (GMHA) -  8/20/2024

Meeting Info: Regular Meeting on August 20, 2024 at 4:00 p.m. in the Newbury Town Hall at 14899 Auburn Rd, Newbury Township, OH 44065. The usual meeting location is in the  GMHA Conference Room at Murray Manor, 385 Center St., Chardon, OH, 44024. This meeting is 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 - 4:03 pm

2. Roll Call

Board Members - All Present

Board Chair - Richard Depenbrok

Board Vice Chair - Jeff Markley

Board Member - Walter Claypool

Board Member - Susan Kemerrer

Board Member - Michael Petruziello

Staff Present:

Executive Director - Dawn Farrell

Fiscal Manager – Carrie Carlson

Legal Counsel - Todd Petersen

Thirteen members of the general public were present, which included this observer.

3. Pledge of Allegiance - Recited

4. Discussion/Approval of Minutes - July 2024 Meeting

No discussion of the July minutes was required. All accepted the minutes. Observer Note:  Minutes are not available on-line.  The  Executive Director, Dawn Farrell indicated to this observer by email that Minutes are available through a written request after they have been approved by the Board.

5. Financial Statement and Writeoffs

A motion to receive the financial statements for public housing, Section 8 and non-federal funds for July 2024 was approved.

Discussion focused on the financial statements and how to utilize non-federal funds, specifically approximately $109,000 retained from interest and a lawsuit. The key points include:

• Nature of Funds: The funds are non-federal, accumulated from a Housing and Urban Development (HUD)-related lawsuit, and have been earning interest over time. These are not typical earnings as the organization is non-profit.

• Potential Uses: There is ongoing discussion about using the funds to purchase a property to support Section 8 housing, as there is a shortage of landlords willing to participate in the program. However, finding a suitable property within budget has been challenging.

• Long-Term Planning: The organization lacks a formal, written plan for these funds but has discussed potential uses in meeting minutes. They have a general five-year plan required by HUD but nothing specific to these retained funds.

• Concerns and Questions: There are concerns about the profitability and sustainability of purchasing a property, given the constraints of Section 8 and the long-term upkeep required.

There were no write-offs to review.

6. Commissioner’s Report

Nothing to discuss

7. The Report of Counsel 

Nothing to discuss

8. Report of Director

a. July Programs Report

No discussion/questions.

b. Power Outage

The discussion covered the recent power outage that affected 62% of the County, including all five of the organization's developments and the office itself. Key points include:

• Extent of Outage: All developments, including Harris House and Murray Manor, experienced power loss. The office was also without power until late Friday evening (August 9).  Reviewer Note:  The storm which impacted the area occurred on Tuesday, August 6th.

• Power Restoration: Power was restored in phases, with Harris House and Murray Manor returning to full power at different times.

• Maintenance Efforts: The maintenance team continued working through the outage and conducted fire watches at Harris House and Murray Manor until power was fully restored.

• Support: The Chardon Fire Chief, Justin Geiss, provided excellent support during the outage.

Overall, the response to the outage was well-coordinated, with key personnel ensuring safety and continuity of operations.

c. Vials of Life

The discussion was about the “Vials of Life” program, which was previously provided to tenants upon move-in. These vials, resembling prescription bottles, contained a sheet for listing medical conditions, prescriptions, and emergency contacts.

Key points include:

• Program History: The vials were last supplied by a medicine shop in Chardon years ago, but the supply ran out.

• Renewed Interest: The Geauga County Sheriff’s Office inquired about the vials, prompting efforts to revive the program.

• Support and Expansion: The Chardon Fire Department secured grant funds to provide a few hundred vials for future tenants. They also reached out to Geauga County Public Health, which is interested in using the vials for outreach efforts.

The program is being revitalized with support from local agencies, ensuring new tenants will have access to this potentially life-saving tool.

d.  Small Area Fair Market Rents (SAFMR)

The executive team reviewed the implementation of Small Area Fair Market Rents (SAFMR) and its impact on the Section 8 voucher program.

Key points include:

• Mandated Change: The housing authority is required to switch from regional fair market rents (based on the Cleveland-Elyria Metropolitan Statistical Area) to localized SAFMR, which sets rent limits by specific zip codes.

• Technical Assistance: The housing authority is receiving help from HUD to ensure a smooth transition to SAFMR. This includes collaborative sessions with other housing authorities that have already implemented the switch.

• Impact on Renters and Landlords: SAFMR enables more precise rent subsidies that mirror local market conditions. Renters can choose to pay above the subsidized amount, up to 40% of their annual income in the first year. While this change adds complexity to rent calculations, it better reflects local housing markets.

• Concerns: Mr. Claypool voiced concern about renters maximizing government subsidies. However, strict HUD rules, especially in the first year, limit how much renters can contribute towards rent beyond the subsidy.  Executive Director Dawn Farrell said that most Section 8 participants in this area are elderly or disabled, with limited income and few rental options.

Overall, the shift to SAFMR was seen as a necessary but challenging adjustment to better align rent subsidies with local market conditions.

OLD BUSINESS

1. MM Window Payment

The fiscal manager Carrie Carlson led a discussion concerning payment for a window project with eight faulty sashes.  Observer Note:  This observer could not determine from the conversation the name of the company involved.

Key points:

• Faulty Sashes: Eight sashes were faulty and need replacing, but replacements will take five to six weeks to arrive.

• Payment Withheld: The final payment is on hold until the new sashes are installed and the project is complete.

• Conditional Approval: The Board approved the final payment conditionally, to be released after the work is done. If the work isn't finished by the next meeting, the issue will be discussed again.

• Future Price Increase: The current payment is being managed, but prices for similar work will rise next year.

The Board is being cautious, withholding payment until the project is fully completed to their satisfaction.

NEW BUSINESS

A. Uniform Physical Condition Standards (UPCS) Contract Extension

Contract expires on 9/30/2024. Seeking to renew the contract for one year.  All board members approved the renewal. Reviewer Note:  The UPCS is a HUD checklist to determine if housing is decent, safe and sanitary.  See HUD.

B. Fire Monitoring Contract Extension

This contract, also expiring on September 30, 2024, is being renewed. The Board approved the renewal. There was a discussion about pricing, noting that the cost will increase slightly due to adjustments in the contract, such as removing the nurse call feature, but it will still be lower than the original bid amount from five years ago. The exact pricing was not confirmed during the meeting, but further details will be provided via email.

C. Easement for Scranton Woods

The Board discussed an easement request for Scranton Woods. The Geauga County Department of Water Resources contacted the Board because a neighboring farm north of Scranton Woods requested to tie into the water and sewer systems. The easement would allow the utilities to cross the property.

Key points:

• There is no downside or negative impact on the property value from granting the easement.

• The easement would not involve any lateral connections to the property, only the main line crossing it.

• The Board discussed that no payment would be involved for the easement.

• The Board unanimously approved the easement request.

D. Training
The Board approved the director's requests to attend several training conferences:

1. Fall OHAC Conference: The director will attend the Ohio Housing Authorities Conference (OHAC) in Columbus from September 18th to 20th. The cost is $2,000.

2. NAHRO Conference in Orlando: The director will attend the National Association of Housing and Redevelopment Officials (NAHRO) conference from September 24th to 28th. The estimated cost is $2,500.

3. SHARP Conference in Clearwater: The director will attend a conference funded entirely through SHARP (an insurance consortium), with no additional cost to the Board.

The Board recognizes the value of these conferences for networking, gaining insights on HUD policies, and continuing education, which helps reduce costs associated with outside counsel. The Board also emphasized aligning these training opportunities with the agency's long-term strategy and legislative agenda.

E. Disposal of Assets

Two hot water heaters and miscellaneous metal from 15535 and 15445 Cloverdale Dr., Middlefield, Ohio were declared obsolete and authorized for recycling.

9. Hearing of the Public

The Chair opened the floor to public comment.

Heather Kappur, a resident from Novelty, began by asking about the percentage of rentals in Geauga County that are subsidized. The Executive Director indicated that the exact number is unknown due to a lack of data on total rentals in the county. However, it was mentioned that the local housing authority manages 171 traditional vouchers and 13 “mainstream” vouchers for non-elderly disabled households, though only about 135 of these vouchers are currently being used, partly due to the impacts of COVID.

Ms. Kappur further inquired whether there are programs where vouchers are accepted in existing multifamily housing or apartments that aren’t designated as subsidized housing. It was explained that while there are apartment complexes where Section 8 vouchers are accepted, landlords generally do not take a discount on rent. Instead, the rent amount is determined by the landlord, and the housing authority covers the difference between what the tenant can pay and the fair market rent, as long as the property meets certain criteria, including passing an inspection.

Ms. Kappur also discussed her challenges in finding affordable housing as she approaches retirement, noting that even manufactured home parks have seen steep rent increases. She asked if there are any subsidies available to help with the lot rent for owner-owned homes. The Executive Director indicated that the housing authority is exploring a HUD program that might help pay for lot rent in such cases, provided the home meets inspection standards and the owner’s income qualifies under the program.

The conversation shifted to concerns about rent increases in privately owned manufactured home communities and whether there are any caps on what landlords can charge. It was clarified by the executive team that as private owners, landlords can charge whatever the market will bear. Subsidies can help, but ultimately, landlords are under no obligation to reduce rent unless they choose to.

There was some discussion about broader trends in housing, such as land leases where homeowners do not own the land beneath their homes, and how these arrangements are becoming more common, even in communities of tiny homes or upscale leased homes.

A gentleman who was not clearly identified asked the Board members what they do and how they came to be on the Board; he expressed confusion about their roles and whether they work for the City of Chardon. The Board clarified that they are part of the Mid-Twelve Housing Authority, a HUD-affiliated organization managing low-income housing, and that their work is not directly related to the City of Chardon. They explained that they volunteer their time to ensure funds are used effectively to benefit the community and do not receive payment for their service.

The Board members shared their backgrounds: one works for a national home builder, another is a landscape architect and township trustee, one is a former educator involved in community service, and another is a Navy veteran and former HUD employee who is now retired but volunteers on several boards. The discussion highlighted their commitment to public service and community involvement.

The conversation ended with the gentleman asking about arranging a meeting at Murray Manor with the Housing Manager, and the Board advised starting with the Housing Manager before escalating the matter if necessary. The exchange provided insight into the Board members' dedication to serving the community.

10. Executive Session

Not needed.

11. Further Business (not on the agenda)

Code of Conduct Document

Mr. Claypool raised concerns about the Code of Conduct document they were asked to sign. Mr. Claypool expressed reservations about the current Code of Conduct, stating that it was not suitable for Board members as it seemed to be written more for employees. He emphasized the need for the Board to be involved in the approval process and in establishing reporting mechanisms and due process.  Mr. Claypool said that he plans to send the current version of the Code to the Board and suggested scheduling a meeting to discuss potential revisions. At this time, however, Mr. Claypool said he is not going to sign the document.  Observer Note:  It appeared from the discussion that this is a document that is required to be signed by all Board members.  Reviewer Note:  Mr. Claypool was appointed to the Board on April 5 by Geauga County Probate Court Judge Tim Grendell

Information Technology Contract

Mr. Claypool highlighted issues with the IT contract, noting that it lacked specifics regarding the services to be provided, financial arrangements, and the scope of work. He pointed out that, while the contract contained extensive references to HUD (Housing and Urban Development) regulations, it failed to outline practical details necessary for managing vendor agreements effectively, i.e. a Scope of Services. The Board agreed on the importance of ensuring that contracts clearly define the scope of services, and it was suggested that the Request for Proposal (RFP) likely could provide the missing details.

Community Development Block Grant Funds

Mr. Claypool also touched on the Community Development Block Grant (CDBG) funds, raising concerns about how these funds are allocated. There was a suggestion to have a conversation with the County Commissioners to ensure that the funds are used more effectively to benefit low-income communities. While acknowledging the frustrations with certain regulations, the legal counsel, Mr. Peterson, emphasized the importance of fair housing programs, noting that they serve as vital advocates for individuals who may not have other means of support.

The conversation reflected a commitment to revising internal processes and ensuring that resources are used effectively to support the community.

Meeting adjourned at 5:33 pm.

Next Meeting: Murray Manor. On September 17, 2024 at 4 pm.

More information can be found here.  Information about the Geauga Metropolitan Housing Authority Board can be found here. 

Observer Note: The Executive Director indicated they were recording the audio of the meeting.  

Observer: David Lewis

Editor and Reviewer: Gail Roussey

Date Submitted: 9/12/2024

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