Board of Commissioners Meetinghomeforward.org/sites/default/files/December-2014-Board-Packet.pdfDate: December 10, 2014 Subject: Home Forward Board of Commissioners December Meeting

This month we will recognize Chair Emeritus Harriet Cormack, who is retiring from our board after 11 years of exemplary service.

Board of Commissioners Meeting

Location:

Multnomah County Building

501 SE Hawthorne Blvd

Portland, Oregon 97214

Date & Time:

December16, 2014 6:15 PM

PUBLIC NOTICE:

Home Forward BOARD OF COMMISSIONERS

will meet on Tuesday, December 16, 2014

At 6:15 pm At the Multnomah County Building 501 SE Hawthorne Blvd., Portland In the Commissioners Board Room

Home Forward Board of Commissioners December 2015

1

MEMORANDUM

To: Community Partners

From: Michael Buonocore, Executive Director

Date: December 10, 2014

Subject: Home Forward Board of Commissioners December Meeting

The Board of Commissioners of Home Forward will meet on Tuesday, December 16, 2014 at the Multnomah County Building, 501 SE Hawthorne Blvd., in the Commissioners Board Room, Portland at 6:15 P.M. The commission meeting is open to the public. The meeting site is accessible, and persons with disabilities may call 503-802-8423 or 503-802-8554 (TTY) for accommodations (e.g. assisted listening devices, sign language, and/or oral interpreter) by 12:00 pm (noon), Friday, December 12, 2014.


2

AGENDA


3

BOARD OF COMMISSIONERS MEETING

MULTNOMAH COUNTY BUILDING COMMISSIONERS BOARD ROOM

501 SE HAWTHORNE BLVD. PORTLAND, OREGON

December 16, 2014 6:15 PM

INTRODUCTION AND WELCOME PUBLIC COMMENT General comments not pertaining to specific resolutions. Any public comment regarding a specific resolution will be heard when the resolution is considered. MISSION MOMENT

Topic Presenter

Golf Program Felicia Poe

CONSENT CALENDAR

Following Resolutions:

14-12 Topic Presenter/POC Phone #

01 Authorize Contract for Moving Services During the Renovations of Group 1 & 2 of 85 Stories

Mike Andrews Myriam Demezas

503.802.8507 503.802.8501

02 Authorize Contract for Agency-Wide Legal Services

Rebecca Gabriel

503.802.8502


4

03 Authorize the Executive Director to Execute Documents to Acquire the Limited Partner’s Interest in St. Francis Limited Partnership, Transfer the Property Ownership to Home Forward

Molly Rogers 503.802.8437

04 Authorize Execution of Documents to Refinance the Existing Loan for St. Francis Apartments

Molly Rogers 503.802.8437

MEETING MINUTES

Topic

Minutes of November 18, 2014 Board of Commissioners Meeting

REPORTS / RESOLUTIONS

Following Reports and Resolutions:

14-12 Topic Presenter/POC Phone #

05 Authorize Recognition for Harriet Cormack

David Widmark

06 Authorize Recognition for John Keating

Michael Buonocore 503.802.8423

REPORT Kindergarten Registration Update Melissa Sonsalla Rachel Langford

503.802.8492503.943.5671

07 Authorize Change Order #3 for the Purchase of Construction Materials at Gallagher Plaza & Northwest Towers

Mike Andrews April Berg

503.802.8502503.802.8326

08 Authorize Change Order #3 for the Purchase of Construction Materials at Hollywood East & Sellwood Center

Mike Andrews Leslie Crehan

503.802.8507503.802.8463


5

REPORT Insights and Parting Thoughts Steve Rudman

ADJOURN

EXECUTIVE SESSION The Board of Commissioners of Home Forward may meet in Executive Session pursuant to ORS 192.660(2). Only representatives of the news media and designated staff are allowed to attend. News media and all other attendees are specifically directed not to disclose information that is the subject of the session. No final decision will be made in the session. THE NEXT MEETING OF THE BOARD OF COMMISSIONERS The next Board of Commissioners meeting will be Tuesday, January 20, 2015 at 6:15 PM. This meeting will take place at the Multnomah County Building, 501 SE Hawthorne Blvd, in the Commissioners Board Room.


6

CONSENT CALENDAR


7

MEMORANDUM

To: Board of Commissioners

From: Mike Andrews, Director Development and Community

Revitalization 503.802.8507

Myriam Demezas, Relocation Program Manager, Development

and Community Revitalization 503.802.8501


Subject: Authorize the Executive Director to Execute Contracts with Willamette Express Ltd. and Supportive Services Moving and Hauling to Provide Packing and Moving Services During the Renovations of Group 1 & 2 of 85 Stories

Resolution 14-12-01

The Board of Commissioners is requested to authorize the Executive Director to enter into contracts with Willamette Express Ltd. in the amount of $125,000 and Supportive Services Moving and Hauling in the amount of $175,000. This action supports Strategic Operations Plan Goal 2: We will increase the number of housing units for our community through preservation, development and acquisition. It specifically supports Priority Initiative 1: Evaluate and reposition existing projects, with an emphasis on preserving the public housing high rises. ISSUE Staff of the Development and Community Revitalization Department issued a formal Request for Bids (RFB) from qualified firms soliciting costs to provide packing and moving services to residents in Group 1 (Gallagher Plaza & Northwest Tower) & Group 2 (Sellwood Center and Hollywood East) of the 85 Stories project. Based on the Relocation Plan, Development staff established a pre-bid estimate of $300,000 for both permanent and temporary moves of t residents while their homes are under construction. Home Forward made the commitment to provide packing and moving services starting with permanent moves now and through the construction period in 2015.


8

2

Types of relocation vary between buildings as do moving services to be provided. Given the variety and quantity of moves and the special needs of residents, it was decided that having two moving companies who are able to provide different combinations of services would be most effective. Additionally, having two moving service providers gives us the ability to follow a tighter moving schedule. Both moving companies have committed to consider Home Forward residents for any new hiring the companies have during the approximate one –year term of the contracts. The Procurement and Contracting Department will assist this Section 3 hiring effort by connecting with Home Forward GOALS coordinators, by posting information about this opportunity within the lobby area of the four buildings and referring prospective hiring candidates to the moving companies. There will be a single point-of-contact within Home Forward managing these contracts. As moves are needed, this staff member will schedule moves, matching up resident needs and the construction schedule. The fees for service are based on hourly rates established in the procurement process.


9

3

RESOLUTION 14-12-01

RESOLUTION 14-12-01 AUTHORIZES THE EXECUTIVE DIRECTOR TO EXECUTE

CONTRACTS WITH WILLAMETTE EXPRESS LTD AND SUPPORTIVE SERVICES MOVING

AND HAULING FOR PACKING AND MOVING SERVICES FOR THE 85 STORIES PROJECT

WHEREAS, packing and moving services will be required for the relocation effort of the 85

Stories Project, and

WHEREAS, a competitive formal RFB process to select multiple qualified moving companies to assist in the relocation effort has been completed, and

WHEREAS, the two qualified and responsible moving companies that submitted the most

favorable pricing are Willamette Express Ltd. and Supportive Services Moving and Hauling,

and

WHEREAS, a $300,000 estimate for the packing and moving services for the 85 Stories

Project has been established; and

WHEREAS, approval by the Board of Commissioners of Home Forward is required prior to

the execution of Contracts over $100,000;

NOW, THEREFORE, BE IT RESOLVED, that the Board of Commissioners of Home Forward

authorizes the Executive Director to execute a contract with Willamette Express Ltd for

$125,000 and with Supportive Services Moving and Hauling for $175,000 for packing and

moving services for the 85 Stories project.


10

4

ADOPTED: DECEMBER 16, 2014

Attest: Home Forward:

Michael Buonocore, Secretary David M. Widmark, Chair


11

MEMORANDUM


From: Rebecca Gabriel Business Services Department 503.802.8502


Subject: Authorizing the Executive Director to Execute Contracts with Stoel Rives LLP, Harrang Long Gary Rudnick PC and Bittner & Hahs PC for an Aggregate Amount up to $800,000 for Agency-wide Legal Services

Resolution 14-12-02

The Board of Commissioners is requested to authorize the Executive Director to execute contracts for an amount up to $800,000 in the aggregate to Stoel Rives LLP, Harrang Long Gary Rudnick PC and Bittner & Hahs PC for agency-wide legal services. ISSUE Staff of the Procurement and Contracts Department issued a formal RFP soliciting proposals from qualified firms for the provision of agency-wide legal services on September 22, 2014. The RFP was intended to identify legal firms and attorneys to assist with six areas: General Counsel, Landlord/Tenant, Public Procurement and Contracts, Real Estate, Employment and Litigation. The term of any new contracts will be five years beginning January 1, 2015. Proposals were received on October 15, 2015 from six law firms. The firms submitting were Stoel Rives, Miller Nash, Harrang Long Gary Rudnick, Bittner & Hahs, Warren Allen, and Kilmer Voorhees. The RFP indicated that firms could propose legal services in any or all of the six areas of law identified. In addition, the RFP allowed for selection of one or more firms.


12

2

A selection committee of staff from the various departments that routinely utilize the services of law firms and a Board member reviewed the proposals and evaluated each proposal. The Selection Committee identified two firms that are well qualified to provide employment law and construction defect litigation; Harrang Long Gary Rudnick PC and Kilmer Voorhees Luarick PC, respectively. The Selection Committee interviewed Stoel Rives, Miller Nash, Bittner & Hahs and Warren Allen on November 7, 2014. Upon conclusion of the interviews, the Selection recommended awarding contracts to Stoel Rives for General Counsel, Public Procurement and Contracts, Real Estate law and Litigation, to Harrang Long Gary Rudnick PC for employment law and to Bittner and Hahs for Landlord Tenant law. The Committee felt that these firms have the required skill and expertise to represent and advise Home Forward competently. In addition, the Selection Committee recommends entering into retainer agreements with both Miller Nash and Kilmer Voorhees Luarick PC to serve as conflict attorneys in the event a selected law firm is not able to provide services to Home Forward on a specific issues due to conflict. Based on a review of the last five years of agency legal services, the Selection Committee recommends an aggregate amount for these agency-wide contracts of $800,000 over the five year term. In the event the retainer firms are needed, the Miller Nash services will be

included within in the $800,000 aggregate amount. Prior to authorizing work with the

Kilmer Voorhees firm, which will be litigation in nature, the Board will be consulted and

authorization will be sought. The Selection Committee recommends contract award of up to $800,000 in the aggregate to Stoel Rives LLP, Harrang Long Gary Rudnick PC, and Bittner & Hahs PC for agency-wide legal services. In addition, the Selection Committee recommends entering into retainer agreements with Miller Nash LLP and Kilmer Voorhees Luarick PC to serve as conflict attorneys.


13

3

RESOLUTION 14-12-02 RESOLUTION 14-12-02 AUTHORIZES THE EXECUTIVE DIRECTOR TO EXECUTE CONTRACTS FOR AN AMOUNT UP TO $800,000 IN THE AGGREGATE WITH STOEL RIVES LLP, HARRANG LONG GARY RUDNICK PC, AND BITTNER & HAHS FOR AGENCY-WIDE LEGAL SERVICES WHEREAS, as an agency, Home Forward will require the assistance of law firms for a wide variety of legal services such as General Counsel, Public Procurement and Contracting, Landlord/Tenant, Litigation, Real Estate and Employment law over the next five years; and, WHEREAS, a competitive formal RFP process to select multiple qualified law firms to assist Home Forward has been completed; and, WHEREAS, the firms of Stoel Rives LLP, Harrang Long Gary Rudnick PC and Bittner & Hahs PC have been selected by the selection committee; and, WHEREAS, the selection committee also recommends the establishment of retainer agreements with Miller Nash LLP and Kilmer Voorhees Laurick PC to serve as conflict attorneys in the event the primary firms are unable to represent Home Forward in a matter; and, WHEREAS, a total aggregate contract amount of $800,000 will be available for the three legal contracts, which will include five (5) year terms;

WHEREAS, approval by the Board of Commissioners of Home Forward is required prior to

the execution of Contracts over $100,000;


14

4

NOW, THEREFORE, BE IT RESOLVED, the Executive Director is authorized to execute contracts for an amount up to $800,000 in the aggregate with Stoel Rives LLP, Harrang Long Gary Rudnick PC, and Bittner & Hahs PC for legal services and to establish retainer agreements with Miller Nash LLP and Kilmer Voorhees Laurick PC to serve as conflict attorneys. ADOPTED: DECEMBER 16, 2014 Attest: Home Forward: ________________________________ ______________________________ Michael Buonocore, Secretary David M. Widmark, Chair


15

MEMORANDUM


From: Molly Rogers, Director of Asset Management

503.802.8437

CC: Erik M. Olson, Asset Manager


Subject: Authorize the Executive Director to Execute Documents to Acquire the Limited Partner’s Interest in St. Francis Limited Partnership, Transfer the Property Ownership to Home Forward, Resolution 14-12-03; and Execute Documents to Refinance the Existing Loan, Resolution 14-12- 04

The Board of Commissioners is requested to authorize the Executive Director to execute documents to acquire the limited partner’s interest in St. Francis Limited Partnership (LP), complete the transfer of ownership to Home Forward, and to refinance the existing loan. This includes the following actions, represented by two resolutions:

Home Forward’s acquisition of Enterprise Community Partners’ interest in the St. Francis Limited Partnership for $1.00

The execution of the documents and agreements needed to acquire the limited partner’s interest

The execution of assignment and assumption documents for the Portland Housing Bureau loan

Home Forward’s assumption of the partnership’s commitment to the extended low-income use agreement from Oregon Housing and Community Services Department

The dissolution of the partnership and transfer all of its assets to Home Forward Prepayment of the existing Network for Oregon Affordable Housing (NOAH) loan Selection of PNC Real Estate as the lender on the new loan


16

2

The execution of the documents and agreements needed to obtain the HUD-insured 223(f) fixed Mortgage Loan at a principal balance not to exceed $4.2 million and an interest rate not to exceed 5.5%

The execution of any other documents deemed necessary by our counsel to effectuate this transfer and refinance

This activity aligns with Strategic Operations Plan Goal 2: We will increase the number of housing units for our community through preservation, development and acquisition. It specifically addresses Priority Initiative 1: Evaluate and reposition existing projects, with an emphasis on preserving the public housing high rises. ISSUE In 2002, Home Forward entered into a Low Income Housing Tax Credit (LIHTC) Limited Partnership called St. Francis Limited Partnership for the purpose of constructing the St. Francis Apartments, located at the corner of SW Main and SW 11th Avenue in downtown Portland. The property consists of 132 total units with 106 studio units, 16 one-bedroom units, and 10 two-bedroom units. All units are under long-term rent restrictions between 30% and 80% of Area Median Income. Enterprise Community Partners is the Limited Partner and Home Forward is the General Partner. Originally, Home Forward used a financial structure that combined tax credit equity, a Mortgage Loan from NOAH, and a subordinate loan from the Portland Housing Bureau. The tax credit equity provided by the limited partner was in exchange for 10 years of tax credits and tax losses. At the end of the 15-year LIHTC compliance period, it is anticipated that the limited partner would exit the partnership and Home Forward would take sole ownership of the asset. St. Francis LP is now in the end of the 12th year of the LIHTC compliance period and after a review of current low interest refinancing opportunities, we are requesting approval to exit the partnership early and transfer ownership of St. Francis Apartments to Home Forward. This will provide an ownership structure that would be complimentary to a refinance scenario using a HUD-insured 223(f) loan. At today’s interest rate of 3.5%, we can achieve approximately $75,000 per year in debt service savings over the life of the new loan. The basic terms of the proposed new loan are (subject to change):

New principal amount of approximately $4,011,000 to retire the existing $3,778,000 million loan + closing costs (see below)


17

3

Interest rate of approximately 3.5% per annum + .45% of principal balance for HUD Mortgage Insurance Premium; the rate to be fixed at closing

35 year fully-amortizing loan, non-recourse to Home Forward Prepayment penalty in first 10 years of loan term; amount to be negotiated

Below is a summary of (approximate) sources and uses of the refinance transaction:

St. Francis New loan amount $4,010,900

Balance on existing loan ($3,778,000) Prepayment penalty ($37,780)

HUD fees ($56,102) Origination fee ($40,109)

Title, legal, appraisal fees ($99,000) Cash to close $91

The Partnership Agreement states Home Forward has the right to purchase the limited partner’s interest for the greater of the fair market value or the amount of taxes owed. In this instance, the fair market value is estimated to be $0 and the exit taxes are $0. Home Forward staff requested that Enterprise Community Partners execute an Assignment of Partnership Interest for St. Francis Limited Partnership for no monetary consideration. Enterprise Community Partners has approved our request and are in the process of advancing legal documents related to the transfer of ownership for Home Forward review and execution, if approved. Home Forward will be responsible for paying the normal transaction costs related to unwinding the partnership which are estimated to be approximately $20,000. The closing of the transfer of ownership interest is expected to occur in the first quarter of 2015. The St. Francis Apartments is a valuable asset in good physical condition. It has successfully provided affordable units in downtown Portland while servicing the outstanding senior debt. If the new loan rates stay at or below current levels and the future refinance is successful, the property could provide cash flow to Home Forward and continue repaying all outstanding debt. Accordingly we recommend approval of this resolution to purchase this property.


18

4

FINANCIAL IMPACT AND RISK Home Forward will retain approximately $30,000 of the savings generated by this refinancing in the form of an asset management fee. The remaining savings will be used to pay for resident services and/or make payments on our outstanding PHB loan. The risk is that interest rates will rise prior to closing such that this transaction is no longer beneficial and we will lose some or all of the lender fees and third-party costs. This situation will only occur if interest rates rise substantially over the next 90-120 days.


19

5

RESOLUTION 14-12-03

RESOLUTION 14-12-03 AUTHORIZES THE EXECUTION AND DELIVERY OF DOCUMENTS BY

HOME FORWARD, ON ITS OWN BEHALF AND IN ITS CAPACITY AS GENERAL PARTNER OF

THE ST. FRANCIS LIMITED PARTNERSHIP, TO EFFECTUATE THE TRANSFER OF THE LIMITED

PARTNER’S INTEREST IN THE PARTNERSHIP TO HOME FORWARD AND THE SUBSEQUENT

DISSOLUTION OF THE PARTNERSHIP AND DISTRIBUTION OF ITS ASSETS TO HOME

FORWARD

WHEREAS, Home Forward seeks to encourage the provision of long-term housing for low-income

persons residing in the City of Portland, Oregon (the “City”);

WHEREAS, ORS 456.120(18) authorizes Home Forward to enter into partnership agreements and

to make loans to partnerships to finance, plan, undertake, construct, acquire and operate housing

projects;

WHEREAS, ORS 456.065 defines “housing project” to include, among other things, “any work or

undertaking . . . to provide decent, safe and sanitary urban or rural housing for persons or families

of lower income”;

WHEREAS, Home Forward serves as the General Partner of St. Francis Limited Partnership, an

Oregon limited partnership (the “Partnership”), which Partnership owns and operates St. Francis

Apartments in Portland, Oregon (the “Project”);

WHEREAS, the limited partner in the Partnership is Enterprise Community Partners (the “Limited

Partner”);

WHEREAS, Home Forward desires to acquire the Limited Partner’s interests for a nominal fee

(estimated to be $1.00);

WHEREAS, upon the acquisition of the Limited Partner’s interests, Home Forward desires to take

such steps as may be necessary to dissolve the Partnership and distribute its assets to Home

Forward;


20

6

WHEREAS, in order to acquire the Limited Partner’s interests, dissolve the Partnership, and

distribute the Partnership assets to Home Forward it will be necessary for the Partnership and/or

Home Forward to obtain the consent of the Oregon Housing and Community Services Department

(the “Allocating Agency”), NOAH (the “Lender”), and Portland Housing Bureau to execute such

assignment and assumption agreements and other transfer documents as may be reasonably

required by such parties;

WHEREAS, Home Forward has received informal approval from Enterprise Community Partners to

exit but is awaiting Limited Partnership Purchase Agreement and Assignment and Assumption

Agreement documents outlining transfer conditions; and

WHEREAS, ORS 456.135 authorizes Home Forward to delegate to one or more of its agents and

employees such powers as it deems proper;

NOW, THEREFORE, BE IT RESOLVED,

1. General Approval of Transfer of Partnership Interests. The Home Forward Board of

Commissioners hereby approves the acquisition of the Limited Partner’s interests in the

partnership and further approves taking such steps as may be reasonably required to then

dissolve the Partnership and distribute its assets to Home Forward.

2. Approval of Partnership Documents. The documents as may be reasonably required to

effectuate the transfer of the Limited Partnership Interests to Home Forward are hereafter

referred to as the “Partnership Documents”. The Chair of the Board, Home Forward’s

Executive Director and their respective designees (each, an “Authorized Officer” and,

together, the “Authorized Officers”), and each of them acting alone, are authorized and

directed to execute and deliver, on behalf of Home Forward (acting on its own behalf or as

general partner of the Partnership), the Partnership Documents substantially in the form on

file with Home Forward; provided however, any Authorized Officer may approve on Home

Forward’s behalf any further changes to the such documents including material changes,

and such Authorized Officer’s signature on the final Partnership Documents shall be

construed as Home Forward’s approval of such changes. The Authorized Officers (and

each of them acting alone) are further authorized and directed to execute and deliver, on

behalf of Home Forward (acting on its own behalf or as general partner of the Partnership),

any other documents reasonably required to be executed by Home Forward or the

Partnership to carry out the transactions contemplated by the Partnership Documents.

3. Approval of Transfer Documents. Home Forward anticipates that certain assignment,

assumption and consent documents will be required by the Project Lenders and the

Allocating Agency pursuant to which Home Forward will agree to assume and be bound by

the bond and loan documents and regulatory agreements and/or covenant affecting the

Project (collectively the “Transfer Documents”). The Authorized Officers (and each of them


21

7

acting alone) are authorized and directed to execute and deliver, on behalf of Home

Forward (acting on its own behalf or as general partner of the Partnership), the Transfer

Documents. The Authorized Officers (and each of them acting alone) are further authorized

and directed to execute and deliver, on behalf of Home Forward (acting on its own behalf

or as general partner of the Partnership), any other documents reasonably required to be

executed by Home Forward or the Partnership to carry out the transactions contemplated

by the Transfer Documents.

4. Approval of Dissolution of the Partnership and Distribution of Assets. Home Forward

further authorizes the Authorized Officers (and each of them acting alone) to take such

steps and to execute and deliver such documents as may be necessary to dissolve the

Partnership and distribute the assets of the Partnership to Home Forward. Such

documents may include but are not limited to a certificate of dissolution, such deeds, bills

of sale and/or other assignments as may be required to distribute all Partnership assets to

Home Forward and the filing of those tax returns as may be necessary to effectuate the

transfer of Limited Partnership Interests, the dissolution of the Partnership assets and the

distribution of such assets to Home Forward.

5. Ancillary Documents. The Authorized Officers (and each of them acting alone) are

authorized on behalf of Home Forward (acting on its own behalf or as general partner of the

Partnership) to execute, deliver and/or file (or cause to be delivered and/or filed) any

affidavits, certificates, letters, government forms, documents, agreements and instruments

that any such Authorized Officer determines to be necessary or desirable: (i) to give effect

to this resolution and/or (ii) to consummate the transactions contemplated herein.

6. Expenditures. Home Forward is authorized to expend such funds (and to cause the

Partnership to expend such funds from the operating reserve) as are necessary to pay for

all filing fees, application fees, registration fees and other costs relating to the actions

authorized by this resolution.

7. Acting Officers Authorized. Any action required by this resolution to be taken by the Chair

of the Board or Executive Director of Home Forward may, in the absence of such person,

be taken by the duly authorized acting Chair of the Board or acting Executive Director of

Home Forward, respectively.

8. Effective Date. This resolution shall be in full force and effect from and after its adoption and

approval.


22

8



__________________________________ ________________________________



23

LOAN COMPARISON

ASSUMPTIONS

Property St. Francis Apartments

Location 1024 SW Main Street

Units 132

Capitalization Rate 6.00%

1HUD 223(f)

Fixed

Refinance

INTEREST RATE

Index HUD Rate

Current Base Rate 3.500%

MIP 0.450%

All-in Rate (actual) 3.950%

Constant 5.409%

Underwriting Rate 3.500%

LOAN TERMS

Term (years) 35

Amortization (years) 35

Prepayment Period 10

Minimum DSC 1.176

Maximum LTV 85%

LOAN SIZING

Requested Loan $4,010,900

Maximum DSC Loan $4,450,600

Maximum LTV Loan $4,439,200

Maximum Per Loan Sizing Constraints $4,010,900

Debt Service (actual rate) $216,969

Debt Service Payment on Current Loan $292,000

Annual Savings in DS with Refi $75,031

Current Principal Balance $3,778,000

HUD MIP Fee (1%) $40,109

HUD Inspection Fee $3,960

Appraisal/PNA/Phase 1 (estimate) $21,500

Title / Survey estimated $25,000

HUD App Fee (0.30%) $12,033

Legal/Processing (estimate) $32,500

Home Forward Legal (estimate) $20,000

Prepayment Penalty (1%) $37,780

Origination Fee $40,109

TOTAL Uses $4,010,991

Cash Out ($91)

Principal Balance At Maturity Fully Amortizing


24

St Francis - 223(f)

Project Summary

P R O J E C T I N F O R M A T I O N L O A N T E R M S

Date November 6, 2014 Term 35 years

Project St Francis Assumption Assumable

Project Address 1024 SW Main Street Liability Non-RecoursePortland, OR 97205

Owner Home Forward E S T I M A T E D M A X I M U M M O R T G A G E

Owner Address 135 SW Ash Street Mortgage Amount $4,010,900

Portland, OR 97204Based Upon

Contact Donna Kelley Lowest of

Phone 503-802-8485 Debt Serviceable $4,450,600

Fax Value Limited $4,439,200

Email [email protected]

Statutory Limitation* $16,988,900

Application Amount $4,010,000

D E B T S E R V I C E L O A N L I M I T

Mortgage Rate 3.50000%Mortgage Insurance Premium 0.45000% Net Operating Income $283,132Amortization Curtail 1.45949% Debt Service Coverage Ratio 1.17600Mortgage Constant 5.40949% Income Available for Debt Service $240,759DEBT SERVICEABLE LOAN AMOUNT $4,450,600

V A L U E L O A N L I M I T

Net Operating Income $283,132 Value for Loan Estimation Purposes $5,222,660Capitalization Rate 6.00% Maximum Loan-to-Value 85.00%Capitalized Value $4,718,870VALUE LIMITED LOAN AMOUNT $4,439,200

T R A N S A C T I O N C O S T L O A N L I M I T

MIP $40,109Existing Debt $3,778,000 Financing Costs $57,142Repairs Third Party Reports $63,240Replacement Reserves Closing Charges $72,500

Total Estimated Transaction Costs $4,010,991ESTIMATED TRANSACTION COST LOAN AMOUNT $4,010,900

C A S H F L O W A N A L Y S I S

Estimated Mortgage Amount $4,010,900Debt-Service Constant 5.40949%Estimated Annual Debt-Service on Maximum Mortgage $216,969 Net Operating Income $283,132ESTIMATED CASH FLOW $66,163

ESTIMATED DEBT SERVICE COVERAGE RATIO 1.30

PNC Real Estate

Permanent Loan Proforma

Project SummaryPage 2 of 4

11/6/2014; 9:12 PMHome Forward Board of Commissioners December 2015

25

mailto:[email protected]

St Francis - 223(f)

Debt Service

I N C O M E & E X P E N S E A N A L Y S I S

Rental Income

Unit Type Number of Units Square Footage NRSF Rents Rent per SF Income/Month

Studio 101Studio 5

1 BR 14 1 BR 2 2 BR 10

Non-Revenue Producing Units Non-Revenue Producing UnitsUnit Type Number of Units Square Footage

Number of Units Square Footage NRSF Rents Rent/Square Foot Income/Month

Totals 132 $64,310

AveragesOperating Income Operating Income

PUPM PUPA Monthly Annualized

Gross Rental Income $487 $5,846 $64,310 $771,720Laundry $65 $777 750 $9,002Parking $94 $1,133 1,093 $13,121Other $92 $1,110 1,071 $12,847Commercial $63 $758 8,342 $100,109

GROSS POTENTIAL INCOME $571 $6,856 75,421 $905,051

Less Vacancy/Collection Loss 5.00% $32 $381 4,195 $50,345

EFFECTIVE GROSS INCOME $540 $6,475 71,225 $854,705Operating Expenses

% of EGI PUPM PUPA Annualized

Administrative 5.47% $30 $354 $46,747Management Fee 4.00% $22 $259 $34,188Advertising & Promotion 0.04% $0 $3 $355Maintenance & Repair 8.47% $46 $548 $72,386Payroll & Related 26.84% $145 $1,738 $229,416Utilities 13.56% $73 $878 $115,881TaxesInsurance 3.09% $17 $200 $26,400Replacement Reserve 5.41% $29 $350 $46,200

TOTAL EXPENSES 66.87% $361 $4,330 $571,573

NET OPERATING INCOME $283,132

D E B T S E R V I C E L O A N A M O U N T

Mortgage Rate 3.50000%Mortgage Insurance Premium 0.45000% Net Operating Income 283,132Amortization Curtail 1.45949% Debt Service Coverage Ratio 1.17600Mortgage Constant 5.40949% Income Available for Debt Service $240,759DEBT SERVICEABLE LOAN AMOUNT $4,450,600

PNC Real Estate


Debt ServicePage 3 of 4


26

St Francis - 223(F)

Settlement Requirements

S O U R C E S

Item Amount

PNC Loan Amount 4,010,900

TOTAL SOURCES $4,010,900

U S E S

Item Amount

Mortgageable Transaction Costs

Exisiting Debt 3,778,000

Estimated Repairs

Intitial Deposit / Cash Avaliable for Capital Improvements

HUD Application Fee 12,033

PNC Financing Fee 40,109

PNC Processing Fee 5,000

First Year's MIP 40,109

Mortgagor Legal estimate 20,000

Mortgagee Legal estimate 27,500

Appraisal estimate 8,500

Environmental Fee 3,000

Engineering (PCNA) 5,000

Title costs estimated 20,000

Survey estimate 5,000

Inspection Fee 3,960

Prepayment Penalty (1%) 37,780

Seismic / Termite 5,000

Subtotal $4,010,991

Subtotal

TOTAL USES $4,010,991

NET PROCEEDS (CASH REQUIRED) ($91)

PNC Real Estate


Settlement RequirementsPage 4 of 4


27

MEMORANDUM


From: Molly Rogers, Director of Asset Management

503.802.8437

CC: Erik M. Olson, Asset Manager


Subject: Authorize the Executive Director to Execute Documents to Acquire the Limited Partner’s Interest in St. Francis Limited Partnership, Transfer the Property Ownership to Home Forward, Resolution 14-12-03; and Execute Documents to Refinance the Existing Loan, Resolution 14-12- 04

The Board of Commissioners is requested to authorize the Executive Director to execute documents to acquire the limited partner’s interest in St. Francis Limited Partnership (LP), complete the transfer of ownership to Home Forward, and to refinance the existing loan. This includes the following actions, represented by two resolutions:

Home Forward’s acquisition of Enterprise Community Partners’ interest in the St. Francis Limited Partnership for $1.00

The execution of the documents and agreements needed to acquire the limited partner’s interest

The execution of assignment and assumption documents for the Portland Housing Bureau loan

Home Forward’s assumption of the partnership’s commitment to the extended low-income use agreement from Oregon Housing and Community Services Department

The dissolution of the partnership and transfer all of its assets to Home Forward Prepayment of the existing Network for Oregon Affordable Housing (NOAH) loan Selection of PNC Real Estate as the lender on the new loan


28

2

The execution of the documents and agreements needed to obtain the HUD-insured 223(f) fixed Mortgage Loan at a principal balance not to exceed $4.2 million and an interest rate not to exceed 5.5%

The execution of any other documents deemed necessary by our counsel to effectuate this transfer and refinance

This activity aligns with Strategic Operations Plan Goal 2: We will increase the number of housing units for our community through preservation, development and acquisition. It specifically addresses Priority Initiative 1: Evaluate and reposition existing projects, with an emphasis on preserving the public housing high rises. ISSUE In 2002, Home Forward entered into a Low Income Housing Tax Credit (LIHTC) Limited Partnership called St. Francis Limited Partnership for the purpose of constructing the St. Francis Apartments, located at the corner of SW Main and SW 11th Avenue in downtown Portland. The property consists of 132 total units with 106 studio units, 16 one-bedroom units, and 10 two-bedroom units. All units are under long-term rent restrictions between 30% and 80% of Area Median Income. Enterprise Community Partners is the Limited Partner and Home Forward is the General Partner. Originally, Home Forward used a financial structure that combined tax credit equity, a Mortgage Loan from NOAH, and a subordinate loan from the Portland Housing Bureau. The tax credit equity provided by the limited partner was in exchange for 10 years of tax credits and tax losses. At the end of the 15-year LIHTC compliance period, it is anticipated that the limited partner would exit the partnership and Home Forward would take sole ownership of the asset. St. Francis LP is now in the end of the 12th year of the LIHTC compliance period and after a review of current low interest refinancing opportunities, we are requesting approval to exit the partnership early and transfer ownership of St. Francis Apartments to Home Forward. This will provide an ownership structure that would be complimentary to a refinance scenario using a HUD-insured 223(f) loan. At today’s interest rate of 3.5%, we can achieve approximately $75,000 per year in debt service savings over the life of the new loan. The basic terms of the proposed new loan are (subject to change):

New principal amount of approximately $4,011,000 to retire the existing $3,778,000 million loan + closing costs (see below)


29

3

Interest rate of approximately 3.5% per annum + .45% of principal balance for HUD Mortgage Insurance Premium; the rate to be fixed at closing

35 year fully-amortizing loan, non-recourse to Home Forward Prepayment penalty in first 10 years of loan term; amount to be negotiated

Below is a summary of (approximate) sources and uses of the refinance transaction:

St. Francis New loan amount $4,010,900

Balance on existing loan ($3,778,000) Prepayment penalty ($37,780)

HUD fees ($56,102) Origination fee ($40,109)

Title, legal, appraisal fees ($99,000) Cash to close $91

The Partnership Agreement states Home Forward has the right to purchase the limited partner’s interest for the greater of the fair market value or the amount of taxes owed. In this instance, the fair market value is estimated to be $0 and the exit taxes are $0. Home Forward staff requested that Enterprise Community Partners execute an Assignment of Partnership Interest for St. Francis Limited Partnership for no monetary consideration. Enterprise Community Partners has approved our request and are in the process of advancing legal documents related to the transfer of ownership for Home Forward review and execution, if approved. Home Forward will be responsible for paying the normal transaction costs related to unwinding the partnership which are estimated to be approximately $20,000. The closing of the transfer of ownership interest is expected to occur in the first quarter of 2015. The St. Francis Apartments is a valuable asset in good physical condition. It has successfully provided affordable units in downtown Portland while servicing the outstanding senior debt. If the new loan rates stay at or below current levels and the future refinance is successful, the property could provide cash flow to Home Forward and continue repaying all outstanding debt. Accordingly we recommend approval of this resolution to purchase this property.


30

4

FINANCIAL IMPACT AND RISK Home Forward will retain approximately $30,000 of the savings generated by this refinancing in the form of an asset management fee. The remaining savings will be used to pay for resident services and/or make payments on our outstanding PHB loan. The risk is that interest rates will rise prior to closing such that this transaction is no longer beneficial and we will lose some or all of the lender fees and third-party costs. This situation will only occur if interest rates rise substantially over the next 90-120 days.


31

5

RESOLUTION 14-12-04

RESOLUTION 14-12-04 AUTHORIZES THE EXECUTION AND DELIVERY OF THE NECESSARY

LOAN DOCUMENTS BY HOME FORWARD TO EFFECTUATE THE REFINANCING OF THE

EXISTING NOAH LOAN ON ST. FRANCIS APARTMENTS WITH A NEW FHA-INSURED

MORTGAGE MADE BY PNC BANK AND RELATED ACTIONS

WHEREAS, Home Forward seeks to encourage the provision of long-term housing for low-income

persons residing in the City of Portland, Oregon (the “City”);

WHEREAS, ORS 456.120(18) authorizes Home Forward to finance, plan, undertake, construct,

acquire and operate housing projects;

WHEREAS, ORS 456.065 defines “housing project” to include, among other things, “any work or

undertaking . . . to provide decent, safe and sanitary urban or rural housing for persons or families

of lower income”;

WHEREAS, Home Forward serves as the General Partner of St. Francis Limited Partnership, an

Oregon limited partnership (the “Partnership”), which Partnership owns and operates St. Francis

Apartments in Portland, Oregon (the “Project”);

WHEREAS, Home Forward desires to acquire the Limited Partner’s interests and take such steps

as may be necessary to dissolve the Partnership and distribute its assets to Home Forward;

WHEREAS, financing for the Project included proceeds from a loan (the “NOAH Loan”) from the

Network for Affordable Housing (“NOAH”);

WHEREAS, Home Forward desires to refinance the Project with a new non-recourse, FHA-insured

mortgage loan (the “Mortgage Loan”) to be made by PNC Bank, National Association (the

“Refinancing Lender”), which Mortgage Loan will be evidenced by a promissory note to be issued

by Home Forward (the “Mortgage Note”) and secured by mortgage/deed of trust and other

security instruments on the Project (a “Mortgage”);


32

6

WHEREAS, ORS 456.135 authorizes Home Forward and/or St. Francis LP to delegate to one or

more of its agents and employees such powers as it deems proper;

NOW, THEREFORE, BE IT RESOLVED,

1. Authorization to Utilize Refinancing Lender and Submittal of the Application for the

Mortgage Loan. Home Forward is authorized and empowered to apply for, negotiate, enter

into, execute and deliver all such documents with and to the Refinancing Lender as may be

required or advisable and as deemed reasonable and appropriate by the Refinancing

Lender and the Authority to obtain the Mortgage Loans, including but not limited to,

execution of any HUD Previous Participation Certification (HUD-2530) on behalf of any

principal or affiliate of Home Forward, as well as any additional documents required by the

Refinancing Lender or Home Forward for purposes of submittal of loan applications to the

Refinancing Lender and the U.S. Department of Housing and Urban Development (“HUD”).

2. Prepay the Existing NOAH Loan. The proceeds from the Mortgage Loan will be used to

prepay the existing NOAH Loan. The Executive Director is authorized and directed to take

all actions required of Home Forward to repay the NOAH Loan in full.

3. Authorization of Mortgage Note and Related Documents for Mortgage Loan. For the

purpose of obtaining the funds to refinance the Project, Home Forward or St. Francis

Limited Partnership, as applicable, shall execute the Mortgage Note in the aggregate

principal amount of not to exceed $4,200,000, with such terms and conditions no less

favorable to Home Forward than those set forth in Exhibit A, which terms and conditions

are incorporated herein by this reference; provided that the mortgage interest rate may

increase to a rate not to exceed 5.5% per annum. The Board finds that it is in the best

interest of Home Forward to execute (or guaranty the payment of) the Mortgage Note for

the purposes set forth in this resolution. Further, Home Forward and/or St. Francis Limited

Partnership is authorized to execute and deliver any and all loan and security instruments

and other documents necessary or convenient to close the Mortgage Loan, including but

not limited to the Mortgage granting Lender a security interest in the Project, a security

agreement, an assignment of leases and rents, and financing statements (together with any

other documents required by Lender to close the Loan).

4. Expenditures. Home Forward and/or St. Francis Limited Partnership is authorized to

expend such funds as are necessary to pay for all filing fees, application fees, registration

fees and other costs relating to the foregoing transactions authorized by this resolution

(“Transactions”).

5. Authorization of Officers and Acting Officers. The Chair of the Board and Executive Director

of Home Forward, and each of them acting individually (without the necessity for joint


33

7

action), is hereby authorized to take such actions and sign any documents on behalf of

Home Forward or St. Francis Limited Partnership, as applicable, as the Chair of the Board

or Executive Director of Home Forward may deem necessary and appropriate to

accomplish any of the Transactions, and all such actions and documents, when signed,

shall be deemed approved by Home Forward or St. Francis Limited Partnership, as

applicable. Any action required by this resolution to be taken by Home Forward or St.

Francis Limited Partnership may, in the absence of the Chair of the Board or Executive

Director of Home Forward, be taken by the duly authorized acting Chair of the Board or

acting Executive Director of Home Forward, respectively.

6. Ratification. Home Forward hereby ratifies and affirms all things previously done by or on

behalf of Home Forward in connection with any of the Transactions.

7. Effective Date. This resolution shall be in full force and effect from and after its adoption and

approval.



__________________________________ ________________________________



34

LOAN COMPARISON

ASSUMPTIONS

Property St. Francis Apartments

Location 1024 SW Main Street

Units 132

Capitalization Rate 6.00%

1HUD 223(f)

Fixed

Refinance

INTEREST RATE

Index HUD Rate

Current Base Rate 3.500%

MIP 0.450%

All-in Rate (actual) 3.950%

Constant 5.409%

Underwriting Rate 3.500%

LOAN TERMS

Term (years) 35

Amortization (years) 35

Prepayment Period 10

Minimum DSC 1.176

Maximum LTV 85%

LOAN SIZING

Requested Loan $4,010,900

Maximum DSC Loan $4,450,600

Maximum LTV Loan $4,439,200

Maximum Per Loan Sizing Constraints $4,010,900

Debt Service (actual rate) $216,969

Debt Service Payment on Current Loan $292,000

Annual Savings in DS with Refi $75,031

Current Principal Balance $3,778,000

HUD MIP Fee (1%) $40,109

HUD Inspection Fee $3,960

Appraisal/PNA/Phase 1 (estimate) $21,500

Title / Survey estimated $25,000

HUD App Fee (0.30%) $12,033

Legal/Processing (estimate) $32,500

Home Forward Legal (estimate) $20,000

Prepayment Penalty (1%) $37,780

Origination Fee $40,109

TOTAL Uses $4,010,991

Cash Out ($91)

Principal Balance At Maturity Fully Amortizing


35

St Francis - 223(f)

Project Summary

P R O J E C T I N F O R M A T I O N L O A N T E R M S

Date November 6, 2014 Term 35 years

Project St Francis Assumption Assumable

Project Address 1024 SW Main Street Liability Non-RecoursePortland, OR 97205

Owner Home Forward E S T I M A T E D M A X I M U M M O R T G A G E

Owner Address 135 SW Ash Street Mortgage Amount $4,010,900

Portland, OR 97204Based Upon

Contact Donna Kelley Lowest of

Phone 503-802-8485 Debt Serviceable $4,450,600

Fax Value Limited $4,439,200

Email [email protected]

Statutory Limitation* $16,988,900

Application Amount $4,010,000

D E B T S E R V I C E L O A N L I M I T

Mortgage Rate 3.50000%Mortgage Insurance Premium 0.45000% Net Operating Income $283,132Amortization Curtail 1.45949% Debt Service Coverage Ratio 1.17600Mortgage Constant 5.40949% Income Available for Debt Service $240,759DEBT SERVICEABLE LOAN AMOUNT $4,450,600

V A L U E L O A N L I M I T

Net Operating Income $283,132 Value for Loan Estimation Purposes $5,222,660Capitalization Rate 6.00% Maximum Loan-to-Value 85.00%Capitalized Value $4,718,870VALUE LIMITED LOAN AMOUNT $4,439,200

T R A N S A C T I O N C O S T L O A N L I M I T

MIP $40,109Existing Debt $3,778,000 Financing Costs $57,142Repairs Third Party Reports $63,240Replacement Reserves Closing Charges $72,500

Total Estimated Transaction Costs $4,010,991ESTIMATED TRANSACTION COST LOAN AMOUNT $4,010,900

C A S H F L O W A N A L Y S I S

Estimated Mortgage Amount $4,010,900Debt-Service Constant 5.40949%Estimated Annual Debt-Service on Maximum Mortgage $216,969 Net Operating Income $283,132ESTIMATED CASH FLOW $66,163

ESTIMATED DEBT SERVICE COVERAGE RATIO 1.30

PNC Real Estate


Project SummaryPage 2 of 4


36

mailto:[email protected]

St Francis - 223(f)

Debt Service

I N C O M E & E X P E N S E A N A L Y S I S

Rental Income

Unit Type Number of Units Square Footage NRSF Rents Rent per SF Income/Month

Studio 101Studio 5

1 BR 14 1 BR 2 2 BR 10

Non-Revenue Producing Units Non-Revenue Producing UnitsUnit Type Number of Units Square Footage

Number of Units Square Footage NRSF Rents Rent/Square Foot Income/Month

Totals 132 $64,310

AveragesOperating Income Operating Income

PUPM PUPA Monthly Annualized

Gross Rental Income $487 $5,846 $64,310 $771,720Laundry $65 $777 750 $9,002Parking $94 $1,133 1,093 $13,121Other $92 $1,110 1,071 $12,847Commercial $63 $758 8,342 $100,109

GROSS POTENTIAL INCOME $571 $6,856 75,421 $905,051

Less Vacancy/Collection Loss 5.00% $32 $381 4,195 $50,345

EFFECTIVE GROSS INCOME $540 $6,475 71,225 $854,705Operating Expenses

% of EGI PUPM PUPA Annualized

Administrative 5.47% $30 $354 $46,747Management Fee 4.00% $22 $259 $34,188Advertising & Promotion 0.04% $0 $3 $355Maintenance & Repair 8.47% $46 $548 $72,386Payroll & Related 26.84% $145 $1,738 $229,416Utilities 13.56% $73 $878 $115,881TaxesInsurance 3.09% $17 $200 $26,400Replacement Reserve 5.41% $29 $350 $46,200

TOTAL EXPENSES 66.87% $361 $4,330 $571,573

NET OPERATING INCOME $283,132

D E B T S E R V I C E L O A N A M O U N T

Mortgage Rate 3.50000%Mortgage Insurance Premium 0.45000% Net Operating Income 283,132Amortization Curtail 1.45949% Debt Service Coverage Ratio 1.17600Mortgage Constant 5.40949% Income Available for Debt Service $240,759DEBT SERVICEABLE LOAN AMOUNT $4,450,600

PNC Real Estate


Debt ServicePage 3 of 4


37

St Francis - 223(F)

Settlement Requirements

S O U R C E S

Item Amount

PNC Loan Amount 4,010,900

TOTAL SOURCES $4,010,900

U S E S

Item Amount

Mortgageable Transaction Costs

Exisiting Debt 3,778,000

Estimated Repairs

Intitial Deposit / Cash Avaliable for Capital Improvements

HUD Application Fee 12,033

PNC Financing Fee 40,109

PNC Processing Fee 5,000

First Year's MIP 40,109

Mortgagor Legal estimate 20,000

Mortgagee Legal estimate 27,500

Appraisal estimate 8,500

Environmental Fee 3,000

Engineering (PCNA) 5,000

Title costs estimated 20,000

Survey estimate 5,000

Inspection Fee 3,960

Prepayment Penalty (1%) 37,780

Seismic / Termite 5,000

Subtotal $4,010,991

Subtotal

TOTAL USES $4,010,991

NET PROCEEDS (CASH REQUIRED) ($91)

PNC Real Estate


Settlement RequirementsPage 4 of 4


38

MINUTES


39

1

BOARD OF COMMISSIONERS MEETING HOME FORWARD

501 SE Hawthorne Boulevard – Portland, Oregon November 18, 2014

COMMISSIONERS PRESENT Chair David Widmark, Vice Chair Jim Smith, Treasurer Jorge Guzman, Chair Emeritus Harriet Cormack, Commissioners Dan Anderson, Benita Legarza, Brian Lessler, Charlene Mashia STAFF PRESENT Michael Buonocore, Mike Andrews, April Berg, Peter Beyer, Robert Dell, Dena Ford-Avery, Rebecca Gabriel, Shelley Marchesi, Kitty Miller, Rodger Moore, Molly Rogers, Ian Slingerland, Melissa Sonsalla, Celia Strauss COUNSEL PRESENT Steve Abel Chair David Widmark convened the meeting at 6:15 PM. PUBLIC COMMENT No one requested to deliver public comment. MISSION MOMENT Catholic Charities & St. Francis of Assisi Catholic Church April Berg introduced Valerie Chapman, Pastoral Administrator of St. Francis of Assisi Catholic Church, and Trell Anderson, Director of Housing and Community Development for Catholic Charities. Anderson pointed out that Richard Birkel, Catholic Charities’ new Executive Director, was in attendance as well. Chapman said that she was excited about the partnership between her church, Home Forward, and Catholic Charities for the St. Francis Park Development. She noted that some people had been surprised that the church had sold the land for the development. However, the church had been working for fourteen years to find a way to develop the under-utilized property. The project that had


40

2

been put together by the current team was a perfect fit. It had been presented to the church parishioners the previous Sunday, and they were very excited. Because of the parish’s commitment to social justice, it had pursued development of affordable housing to balance the ongoing market-rate housing being developed nearby. Chapman expressed her thanks for the opportunity to develop the planned project and the risks taken by Home Forward. Anderson echoed the gratitude expressed by Chapman. He reviewed how Home Forward joined the team after a previous attempt to secure funding had failed. With each team member driven by its own social mission, the development was re-focused on themes of hospitality, respect for nature and the environment, and social equity and justice. The themes have been carried through each step of the development. Anderson expressed his appreciation for the partnership with Home Forward and St. Francis of Assisi Catholic Church, the risks undertaken to get to this point, and the opportunities that the team has produced. Chapman distributed flyers for the daily dining hall operated by St. Francis of Assisi Catholic Church. Chair David Widmark said that it was great that the site would be developed and thanked Chapman and Anderson for partnering with Home Forward. CONSENT CALENDAR RESOLUTION 14-11-01 Authorize Revolving Line of Credit with Columbia Bank RESOLUTION 14-11-02 Authorize Approval of the Fiscal Year 2016 Moving to Work Plan Celia Strauss read the titles of the items on the Consent Calendar. Chair Emeritus Harriet Cormack moved to adopt the items. Vice Chair Jim Smith seconded the motion. The vote was as follows: Chair David Widmark – Aye Vice Chair Jim Smith – Aye Treasurer Jorge Guzman – Aye

Chair Emeritus Harriet Cormack – Aye Commissioner Dan Anderson – Aye Commissioner Benita Legarza – Aye


41

3

Commissioner Brian Lessler – Aye Commissioner Charlene Mashia – Aye MEETING MINUTES Minutes of October 21, 2014, Board of Commissioners Meeting Chair David Widmark pointed out corrections made to the meeting minutes, as requested by Chair Emeritus Harriet Cormack. Chair Emeritus Cormack said that she wanted the record to reflect that anyone could contribute to the scholarship being established in Steve Rudman’s honor. Commissioner Dan Anderson moved to accept the minutes as amended; Treasurer Jorge Guzman seconded. The vote was as follows: Chair David Widmark – Aye Vice Chair Jim Smith – Aye Treasurer Jorge Guzman – Aye

Chair Emeritus Harriet Cormack – Aye Commissioner Dan Anderson – Aye Commissioner Benita Legarza – Aye Commissioner Brian Lessler – Aye Commissioner Charlene Mashia – Aye RESOLUTION 14-11-03 Authorize Intent to Issue Revenue Bonds for St. Francis Park April Berg and Peter Beyer presented the resolution. Berg reviewed how the Board had authorized Home Forward’s participation in the project, the purchase of the land, and the selection of the architect and the construction manager/general contractor. Berg summarized the costs of the project, the plan to apply for 4% Low Income Housing Tax Credits in the spring, and the place of the revenue bonds at issue in the project’s financing. Commissioner Dan Anderson noted that the resolution had been considered at the last meeting of the Board’s Real Estate and Development Committee. Commissioner Brian Lessler moved to adopt the resolution. Commissioner Charlene Mashia seconded the motion.


42

4

The vote was as follows: Chair David Widmark – Aye Vice Chair Jim Smith – Aye Treasurer Jorge Guzman – Aye

Chair Emeritus Harriet Cormack – Aye Commissioner Dan Anderson – Aye Commissioner Benita Legarza – Aye Commissioner Brian Lessler – Aye Commissioner Charlene Mashia – Aye RESOLUTION 14-11-04 Authorize Changes to the Administrative Plan for Step Up Preference Ian Slingerland presented the resolution to the Board. He summarized that the changes to the plan would authorize a preference that could be used to move participants in the Shelter Plus Care Program to a regular Housing Choice Voucher if they no longer needed the ongoing services included with Shelter Plus Care. He reviewed how Shelter Plus Care was a permanent supportive housing program that matched ongoing housing assistance with ongoing supportive services. It was aimed at persons with disabilities who were experiencing homelessness. It had the goal of getting participants into housing, establishing their housing stability, and matching them with supportive services from among twelve different local providers. It was funded through six different grants from the U.S. Department of Housing and Urban Development (HUD), totaling over $4 million in housing assistance. The Shelter Plus Care Program served 516 households (653 individuals). HUD’s funding was based on its measure of participants’ housing stability. Home Forward participants achieved a 93% stability rating, while HUD’s benchmark was an 80% stability rating. Because of the success experienced by some households, they no longer need the program’s ongoing supportive services. Slingerland noted that the Administrative Plan articulated Home Forward’s policy for Housing Choice Vouchers. The resolution at issue would help to determine who would be served by the scarce resources Home Forward administers. It would create a preference that could be used by up to 25 households per year—transferring them from the Shelter Plus Care Program to the Housing Choice Voucher program, freeing the Shelter Plus Care funding for new participants. The authorization would apply for the years of 2015 and 2016. Slingerland introduced Bobby Weinstock, a Housing Advocate with Northwest Pilot Project (NWPP), one of the service providers for the Shelter Plus Care Program. Weinstock


43

5

pointed out that NWPP had received 100 calls over the previous week from older adults experiencing a housing crisis. He said that the Board’s approval of the resolution would allow NWPP to help at least some of those callers who need housing and services. Many of the current Shelter Plus Care participants had been in the program for years and, since housing was good medicine, no longer needed ongoing care. Thus, the resolution would allow for the efficient use of the Shelter Plus Care resource. Weinstock thanked the Board for its attention. Chair Emeritus Harriet Cormack discussed with Slingerland that Shelter Plus Care was part of HUD’s Continuum of Care Program, which was directed at homeless clients. Chair Emeritus Cormack said the proposal made a good deal of sense. She noted discussions in previous years about being able to help more people by having participants graduate into market rentals or other systems. She voiced some concern that the proposal would obligate more vouchers from Home Forward’s pool of Housing Choice Vouchers, without additional funding to that program. Doing so would make it harder for another applicant to obtain a Housing Choice Voucher. Commissioner Charlene Mashia asked how many households could take advantage of the preference. Slingerland replied that the preference was limited to 25 households over the next two years. The maximum number of households would, thus, be 50. For context, Slingerland noted that 50 vouchers from Home Forward’s Housing Choice Voucher pool were awarded to new applicants from the general waiting list each month. Treasurer Jorge Guzman asked if the households that could take the preference were considered “working families.” Slingerland said that was not a requirement and expected that most participants would not be categorized as “working families.” He added that households taking the preference would need an income equal to what Social Security benefits it could receive, which would ensure the household was utilizing as many resources as possible. In response to Commissioner Brian Lessler, Slingerland said that the preference would cease after 2016, without further action by the Board. Commissioner Dan Anderson said the initiative was thoughtful and well-targeted. He appreciated its evaluation strategy. Slingerland affirmed that he wanted to be sure that the preference did not result in reduced housing stability. Commissioner Anderson said that he shared Chair Emeritus Cormack’s concern over Home Forward’s Housing Choice


44

6

Voucher funding. He acknowledged that it was a balancing act and that it being only a two-year commitment made it a milder concern. Commissioner Dan Anderson moved to adopt the resolution. Chair Emeritus Harriet Cormack seconded the motion. The vote was as follows: Chair David Widmark – Aye Vice Chair Jim Smith – Aye Treasurer Jorge Guzman – Aye

Chair Emeritus Harriet Cormack – Aye Commissioner Dan Anderson – Aye Commissioner Benita Legarza – Aye Commissioner Brian Lessler – Aye Commissioner Charlene Mashia – Aye REPORT Stephens Creek Crossing Construction Management/General Contractor Closeout Report Mike Andrews presented the report to the Board. He summarized how the report was part of a process mandated by state law whenever a public agency used an alternative form of construction procurement. The conventional procurement approach was to select the lowest hard bid. The two acceptable alternative approaches were procurement of a construction manager/general contractor (CM/GC) and procurement of a design-builder. Home Forward had used the CM/GC process on previous projects and was using the design-build approach for its 85 Stories project. While maintaining competition, both alternative approaches allowed consideration of factors in addition to cost during the selection process. Both approaches required steps prescribed by law, including the instant final report and its content, to ensure that competition was not stifled. The report summarized the results of using a CM/GC for Home Forward’s Stephens Creek Crossing redevelopment—tracking how the results aligned with the findings approved at the beginning of the project. To match previous final reports, the Board would accept it by motion. Andrews noted that the report covered control of the project’s budget, but added that Home Forward project budgets were often designed to adapt as amounts from different sources are settled. Thus, the budget for Stephens Creek Crossing was increased, and the project did meet its available budget, though not the precise amount originally projected. The redevelopment also met its goals for target business participation and workforce training and hiring. A low, hard bid approach would not have achieved the


45

7

same outcome. Andrews also noted that the project’s permitting and sequencing plans changed significantly after the procurement, and the CM/GC arrangement allowed those changes to be accommodated while containing costs. Lastly, Andrews highlighted that the CM/GC arrangement for Stephens Creek Crossing helped manage resident relations, allowing some residents to move back sooner, which secured more equity for the project. Chair Emeritus Harriet Cormack recalled the state legislature authorizing the alternative approaches in the 1980s. She said that the approach worked well at the Oregon Convention Center and at Home Forward’s HOPE VI redevelopments. She encouraged distribution of the report to those involved in state procurement regulations. She felt the alternative procurement methods allowed Home Forward to be nimble, helping it get things done on time and on budget. Andrews responded by noting that the alternative methods still allowed for consideration of pricing when choosing subcontractors, which ensured that competition was not stifled. He clarified that, when arrangements could be made to attract more equity to a project, the added funding must still remain with the project; it could not transfer to other projects. Commissioner Brian Lessler concurred that the alternative approach allowed competition at the subcontractor level, while providing a general contractor to help you through the process. Andrews added that, even when the CM/GC sought to self-perform, its bid would be evaluated against other potential subcontractors. Commissioner Lessler reviewed the earthwork and permitting complications that occurred for Stephens Creek Crossing. He felt the project’s CM/GC, R&H Colas, effectively worked around the complications. Andrews pointed out the work of the R&H Colas Superintendent and Home Forward’s Project Manager. He said that the CM/GC approach created a partnership, whereas the low, hard bid approach could create an adversarial relationship as price is argued over every change in the work. Commissioner Dan Anderson expressed a desire that the lessons Home Forward had learned could be transferred to other agencies. Chair David Widmark noted that the Stephens Creek Crossing redevelopment had been a community effort. He appreciated that adjacent neighbors were embracing the new community. Commissioner Dan Anderson moved to accept the report. Commissioner Brian Lessler seconded the motion.


46

8

The vote was as follows: Chair David Widmark – Aye Vice Chair Jim Smith – Aye Treasurer Jorge Guzman – Aye

Chair Emeritus Harriet Cormack – Aye Commissioner Dan Anderson – Aye Commissioner Benita Legarza – Aye Commissioner Brian Lessler – Aye Commissioner Charlene Mashia – Aye ADJOURN There being no further business, Chair David Widmark adjourned the meeting at 7:04 PM. EXECUTIVE SESSION The Board of Commissioners of Home Forward did not meet in Executive Session pursuant to ORS 192.660(2). Attached to the Official Minutes of Home Forward are all Resolutions adopted at this meeting, together with copies of memoranda and material submitted to the Commissioners and considered by them when adopting the foregoing resolutions. Celia M. Strauss Recorder, on behalf of Michael Buonocore, Secretary ADOPTED: December 16, 2014 Attest: Home Forward: _______________________________ _______________________________ Michael Buonocore, Secretary David M. Widmark, Chair


47

RESOLUTIONS


48

Placeholder for Resolution 14-12-05

Recognizing Harriet Cormack


49

Placeholder for Resolution 14-12-06

Recognizing John Keating


50

STAFF REPORT Kindergarten Registration Update


51

MEMORANDUM


From: Rachel Devlin, Strategic Initiatives

Program Director


Subject: Kindergarten Registration

Rachel Langford, Education and Youth Initiatives Program Director

Melissa Sonsalla, MTW Program Analyst

This briefing is intended as a follow-up to the June 2014 presentation regarding efforts

under the Families Forward initiative to increase the number of Home Forward children

registering for kindergarten on time. The briefing is informational only; no action is required.

This activity supports Strategic Operations Plan Goal 3: We will strengthen our relationship

with the people we serve by increasing mutual accountability and by improving our ability

to connect them to vital services in the community.

ISSUE

In June, the Board received information about Home Forward’s successful efforts to

increase the percentage of families registering their children for kindergarten on time in

Portland Public Schools. That report highlighted Home Forward’s unique positioning to

impact registration rates due to knowing where many families of young children live prior to

the school districts becoming aware of them.

As a result of our demonstrated success in the Portland Public Schools, this spring, the

other five Multnomah County school districts agreed to sign data sharing agreements with

Home Forward to examine kindergarten registration rates. As anticipated, outcomes for

the East County districts were similarly strong.

Outcome Data

The registration rate for Home Forward kindergartners has increased steadily since Home


52

2

Forward began this effort, jumping from 68.8% in 2011 to 82.0% in 2013.

Percentage of Kindergarteners in Each

District who Live in Home Forward Housing

2011 2012 2013

Centennial 8.5% 7.9% 6.3%

David Douglas 11.5% 10.7% 10.1%

Gresham 3.9% 3.3% 2.2%

Parkrose 7.4% 7.1% 8.5%

Portland 6.0% 6.2% 6.2%

Reynolds 7.2% 7.6% 6.3%

Total 6.7% 6.7% 6.4%

Home Forward has seen registration rates for our families increase in five of the six

districts. In the sixth district, Parkrose, outcomes may be skewed by the small number of

total registrants – less than 25 per year.

Additionally, new detail in the data sharing agreements now allows Home Forward to

compare our kindergarteners with other low-income children (defined as those qualifying

for free/reduced meals)1. In 2011, before beginning our efforts, Home Forward registration

rates were lower than those of other low-income families. Home Forward’s families now

1There are some data quality problems that Home Forward is working with the districts to resolve. The

issues will be more apparent in the attachment to this report and may have skewed some of the numbers,

but the overall trends demonstrate fairly consistent success.


53

3

register at a higher rate than other low-income families, and the gap between our students

and higher income students has narrowed significantly.

Our success is consistent across all races, ethnicities and languages, with one exception.

For the second year in a row, Hispanic families – specifically those identifying as English-

speaking as opposed to Spanish-speaking – are registering at rates that are both lower

than other Home Forward families and non-Home Forward families. Staff will explore this

anomaly over the next year to determine how outreach to Hispanic families could be

improved.


54

4

Attached to this report is a district-by-district analysis of registration rates, as well as more

detail on the disaggregation of data by race, ethnicity and language.

Next Steps

Home Forward presented this data to the six school districts in November and was met

with great enthusiasm. Outreach for the fall of 2015 is underway, and Home Forward

intends to continue this effort indefinitely, expanding to include families on our waiting lists.

However, given that we have demonstrated consistent success and that the data analysis

work is significant, Home Forward and the districts have agreed that we no longer need to

complete a full analysis of outcomes on an annual basis. We may continue to look at

certain sub-populations, such as Hispanic families, as we fine tune our approach.

But the success of this effort has demonstrated to the school districts that Home Forward

has the capacity to help further their goals in certain areas, and they are eager to identify

additional ways to partner with us. As a result, Home Forward is currently negotiating

another set of aggregate data sharing agreements that will include at least attendance and

disciplinary data, and may be broadened to include performance data. What Home

Forward learns from that data will be used to inform our next investments in youth and

education-related programming.

ATTACHMENTS

Attachment A: District Information

Attachment B: Race/Ethnicity & Language Information


55

5

Attachment A: District Information

Centennial School District

Kindergarten On-Time Registration Rates

2011 2012 2013

On-Time Rate # Students On-Time Rate # Students On-Time Rate # Students

Home Forward 51.7% 29 66.7% 33 69.2% 26

Non-Home Forward, FARM2 29.2% 24 57.1% 21 72.3% 311

Non-Home Forward, Non-FARM 49.5% 521 57.0% 567 81.3% 139

David Douglas School District


2011 2012 2013


Home Forward 72.2% 90 82.4% 74 80.5% 87

Non-Home Forward, FARM 81.3% 604 83.5% 643 70.7% 692


2 FARM refers to children who qualify for Free and Reduced Meals at school, a measure of low-income

students in schools. To qualify, these families generally have incomes below 50% of Area Median Income.


56

6

Gresham Barlow School District


2011 2012 2013


Home Forward 51.9% 27 82.6% 23 82.4% 17



Parkrose School District


2011 2012 2013


Home Forward 81.8% 22 69.2% 13 80.0% 20




57

7

Portland Public School District


2011 2012 2013


Home Forward 72.6% 212 78.0% 236 85.2% 223



Reynolds School District


2011 2012 2013


Home Forward 61.3% 62 76.8% 69 77.8% 54




58

8

Attachment B: Race/Ethnicity & Language Information

Home Forward Students by Race/Ethnicity


2011 2012 2013


Black 66.7% 180 78.9% 213 83.0% 176

White 75.0% 112 78.7% 89 91.4% 116

Multi Racial 56.7% 30 73.3% 45 75.9% 54

Hispanic 69.4% 98 78.2% 78 59.1% 44

American Indian* 20.0% 5 42.9% 7 81.3% 16

Asian* 86.7% 15 90.0% 10 85.7% 14

Pacific Islander* 50.0% 2 66.7% 6 85.7% 7


59

9

Home Forward Students by Language


2011 2012 2013


English 66.2% 346 74.3% 338 80.0% 315

Somali/Oromo/Maay-Maay 81.8% 22 88.1% 42 93.9% 33

Spanish 69.0% 29 81.1% 37 72.7% 33

Other 91.7% 12 100.0% 13 89.7% 29

Russian/Ukrainian* 79.2% 24 92.9% 14 100.0% 13

Vietnamese* 77.8% 9 100.0% 4 100.0% 4


60

RESOLUTIONS


61

MEMORANDUM


From: Mike Andrews, Director, Development and Community Revitalization 503.802.8507

April Berg Assistant Director, Development

and Community Revitalization 503.802.8326


Subject: Authorize Change Order #3 for the Purchase of Construction Materials at Gallagher Plaza & Northwest Towers Resolution 14-12-07

The Board of Commissioners is requested to authorize the Executive Director to execute Change Order #3 for up to $1,100,000 to the Design Build contract with Walsh Construction, Inc. for Group 1, Gallagher Plaza and Northwest Towers. This change order is to authorize the purchase of construction materials with long lead times. This is necessary to meet the construction schedule with a start date of February 2, 2015. This activity supports Strategic Operations Plan Goal 2: We will increase the number of housing units for our community through preservation, development and acquisition. ISSUE In the fall of 2008, Home Forward began investigating conversion of its traditional public housing portfolio to project-based Section 8. In the spring of 2011, the Board of Commissioners discussed a subsidy change plan that had been developed to allow Home Forward to maintain control of the properties, leverage outside investment to address capital improvements, and access a more stable operating subsidy. In February 2013, HUD approved disposition of Sellwood Center, Gallagher Plaza, Hollywood East, and


62

2

Northwest Towers. In April, Home Forward was awarded 649 Tenant Protection Vouchers (the second step in the conversion process). The four buildings completed subsidy conversion on September 1, 2013. In December 2013 Home Forward authorized a Design Build contract with Walsh Construction, Inc. for Group 1, Gallagher Plaza and Northwest Tower. The necessary long lead building materials for Group 1 include: OKO skin, VPI windows and custom color architectural sheet metal, up to the amount of $1,100,000. The renovation work planned at these three buildings will address deferred capital needs, reduce long-term operating costs through improving building systems, enhance livability and services for residents, and preserve low-income housing by leveraging outside capital.


63

3

RESOLUTION 14-12-07

RESOLUTION 14-12-07 AUTHORIZES THE EXECUTIVE DIRECTOR TO EXECUTE CHANGE ORDER #3 FOR UP TO $1,100,000 TO THE DESIGN BUILD CONTRACT WITH WALSH CONSTRUCTION, INC. FOR GROUP 1, GALLAGHER PLAZA AND NORTHWEST TOWERS WHEREAS, Home Forward awarded Walsh Construction Company the Design Build contract to undertake design and construction services for Gallagher Plaza, and Northwest Towers Apartments; and WHEREAS, Home Forward’s Design Build contract with Walsh Construction, Inc. for design and preconstruction services at Gallagher Plaza, and Northwest Towers is progressing on schedule for a February 2, 2014 construction start date; and WHEREAS, Home Forward’s resident meetings and relocation planning has commenced and is on schedule for a February 2, 2014 construction start date; and WHEREAS, Home Forward’s planned construction scope requires material with long lead times to be ordered and purchased in December 2014 to support a construction start date of February 2, 2015; and WHEREAS, Home Forward’s early purchase of construction materials is needed to support the construction schedule and the planned start date of February 2, 2015; and WHEREAS, approval by the Board of Commissioners of Home Forward is required prior to the execution of Contracts over $100,000; NOW, THEREFORE, BE IT RESOLVED, that the Board of Commissioners of Home Forward authorizes the Executive Director to execute Change Order #3 for up to


64

4

$1,100,000 to the Design Build contract with Walsh Construction, Inc. for Group 1, for Gallagher Plaza and Northwest Towers. ADOPTED: DECEMBER 16, 2014 Attest: Home Forward: _____________________________ _________________________________ Michael Buonocore, Secretary David M. Widmark, Chair


65

MEMORANDUM


From: Mike Andrews, Director, Development and Community Revitalization 503.802.8507

Leslie Crehan Senior Project Manager 503.802.8463


Subject: Authorize Change Order #3 for the purchase of Construction Materials at Hollywood East & Sellwood Center Resolution 14-12-08

The Board of Commissioners is requested to authorize the Executive Director to execute Change Order #3 for up to $950,000 to the Design Build contract with Walsh Construction, Inc. for Group 2, Hollywood East and Sellwood Center. This change order is to authorize the purchase of construction materials with long lead times. This is necessary to meet the construction schedule with a start date of February 2, 2015. This activity supports Strategic Operations Plan Goal 2: We will increase the number of housing units for our community through preservation, development and acquisition. ISSUE In the fall of 2008, Home Forward began investigating conversion of its traditional public housing portfolio to project-based Section 8. In the spring of 2011, the Board of Commissioners discussed a subsidy change plan that had been developed to allow Home Forward to maintain control of the properties, leverage outside investment to address capital improvements, and access a more stable operating subsidy. In February 2013, HUD approved disposition of Sellwood Center, Gallagher Plaza, Hollywood East, and Northwest Towers. In April, Home Forward was awarded 649 Tenant Protection Vouchers (the second step in the conversion process). The four buildings completed subsidy


66

2

conversion on September 1, 2013. In December 2013, Home Forward authorized a Design Build contract with Walsh Construction, Inc. for Group 2, Hollywood East and Sellwood Center. The necessary long lead building materials for Group 2 include: water heaters, shower surrounds and a generator for Hollywood East and VPI windows, Swiss Pearl Siding and custom color architectural sheet metal for Sellwood Center, up to the amount of $950,000. The renovation work planned at these three buildings will address deferred capital needs, reduce long-term operating costs through improving building systems, enhance livability and services for residents, and preserve low-income housing by leveraging outside capital.


67

3

RESOLUTION 14-12-08

RESOLUTION 14-12-08 AUTHORIZES THE EXECUTIVE DIRECTOR TO EXECUTE CHANGE ORDER #3 FOR UP TO $950,000 TO THE DESIGN BUILD CONTRACT WITH WALSH CONSTRUCTION, INC. FOR GROUP 2, HOLLWOOD EAST AND SELLWOOD CENTER WHEREAS, Home Forward awarded Walsh Construction Company the Design Build contract to undertake design and construction services for Hollywood East and Sellwood Center Apartments; and WHEREAS, Home Forward’s Design Build contract with Walsh Construction, Inc. for design and preconstruction services at Hollywood East and Sellwood Center is progressing on schedule for a February 2, 2014 construction start date; and WHEREAS, Home Forward’s resident meetings and relocation planning has commenced and is on schedule for a February 2, 2014 construction start date; and WHEREAS, Home Forward’s planned construction scope requires material with long lead times to be ordered and purchased in December 2014 to support a construction start date of February 2, 2015; and WHEREAS, Home Forward’s early purchase of construction materials is needed to support the construction schedule and the planned start date of February 2, 2015; and WHEREAS, approval by the Board of Commissioners of Home Forward is required prior to the execution of Contracts over $100,000; NOW, THEREFORE, BE IT RESOLVED, that the Board of Commissioners of Home Forward authorizes the Executive Director to execute Change Order #3 for up to $950,000


68

4

to the Design Build contract with Walsh Construction, Inc. for Group 2, for Hollywood East and Sellwood Center. ADOPTED: DECEMBER 16, 2014 Attest: Home Forward: _____________________________ _________________________________ Michael Buonocore, Secretary David M. Widmark, Chair


69

STAFF REPORTS


70

Contract # Contractor Contract Amount Description Department Execution Date Expiration Date

C1015L R&H / Colas Construction $ 351,659.00 CMGC for Hope VI Revitalization; GMP #9

Traffic SignalDCR 8/12/2014 4/30/2014


C1383 Glea Livingston $ 2,160.00 Foot care at BCC Prop Mgmt 2/24/2014 1/31/2015

C1493 Tacoma Housing Authority $ -

IGA with Tacoma housing Authority, Seattle

Housing Authority and King County Housing

Authority for Social Science Research Review

and Services

Executive 8/28/2014 8/27/2019

T1479 WJE Engineering & Architects, P.C. $ 50,000.00 On Call Building Envelope Consulting Services,

RFP 07/14-254DCR 10/10/2014 9/30/2017

T1480 Forensic Building Consultants $ 50,000.00 On Call Building Envelope Consulting Services,

RFP 07/14-254DCR 10/10/2014 9/30/2017

C1489 NW Enforcement $ 19,800.00 Security Patrols for Williams Plaza, Gallagher

Plaza and Medallion Apts, RFP 6/14-253Prop Mgmt 10/13/2014 10/31/2015

C1484 Bryan Hargrove $ 3,000.00

Bless Field at New Columbia, Asset

Managenent Review, Develop Field

Maintenance Plan, Create Field Use Operational

Plan & Community Member Field Use Rules

Resident Services 10/20/2014 3/31/2015

C1442 RDH Building Sciences, Inc. $ 33,000.00

Structural rehab emergency services and water

ingress mitigation for the affected building at

Fairview Oaks, Emergency

DCR 10/29/2014 10/31/2014

C1491 Delaris $ 34,000.00 Landlord Portal Assessment, Special

Procurement - ITDBS 10/29/2014 12/5/2014

C1497 Vertex $ 4,000.00 Test, Adjust and Balance the Blower at Holgate

ApartmentsDCR 10/30/2014 11/15/2014

C1476 Background Investigations, Inc $ 95,850.00 Tenant Screening Services, RFP 05/14-248 Prop Mgmt 10/31/2014 9/30/2019

C1483 Neudorfer Engineers $ 8,950.00 Holgate House, Testing, Adjusting & Balancing

for HVAC System, Informal 2 bids & 1 no-bidDCR 11/4/2014 12/31/2014

C1498 Delaris $ 4,000.00 Support and update HomeForward.org drupal

based websiteExecutive 11/7/2014 3/31/2015

C1502 Asset & Property Management service LLC $ 5,000.00

Perform a physical / capital needs assessment

for headstart facilities: Carlton Ct, Dekum Ct,

and Humboldt Gardens, Infomal

Prop Mgmt 11/20/2014 3/31/2015


C0639-5 Human Solutions, Inc $ 74,000.00

Extends contract thru 12/31/14 - Resident and

Community Services - Rockwood Station and

Rockwood Landing

Prop Mgmt 1/6/2014 12/31/2014

C0646-2 Bruce International $ - Extends thru 12/31/14 -

Interpretation/Translation ServicesProp Mgmt 6/12/2014 12/31/2014

C1108-2 Ash Creek Associates, Inc. $ 3,800.00 $3,800 increase for additional analysis on Beech

Street projectDCR 7/23/2014 1/13/2013

Procurement & Contracts Department

MONTHLY CONTRACT REPORT

Contracts Approved 10/1/14 - 11/30/14

CONSTRUCTION & MAINTENANCE SERVICES

PROFESSIONAL SERVICES

AMENDMENTS TO EXISTING CONTRACTS


71

C1457-1 Alive MMA $ 102.30

Brazilian Ju jitsu classes for all ages at

Stephens Creek Crossing, Reimbursement for

added insurance costs to name HF as additional

insured

Prop Mgmt 8/14/2014 11/30/2014

C1429-1 Louise Williams $ 1,500.00

Update Family metrics database to accurately

represent the residents at each property with

resident services

Prop Mgmt 9/30/2014 8/31/2014

C1391-1 Abby Ahern $ 600.00 To cover two additional makeup workshop DBS 10/10/2014 12/31/2014

C1092-2 Brand Navigation LLC $ 46,000.00 On Call Graphic Design, Annual renewal Executive 11/6/2014 12/19/2015

C1289-2 Gerding Edlin $ 14,725.00 Design Build Agreement for Beech Street

ProjectDCR 11/13/2014 7/17/2014

T1479-1 WJE Engineering & Arcgutects, P.C. $ 95,000.00 On Call Building Envelope Consulting Services,

RFP 07/14/254DCR 11/14/2014 9/30/2017

C1487-1 MH Operable Solutions LLC $ 2,500.00 Assist and Train Home Forward staff on repair

broken windowsDCR 12/1/2014 1/30/2015


72

HOUSEHOLDS SERVED REPORT


73

Rent Assistance Vouchers - Home Forward Funded 9,089 7,834 1,255 Tenant Based Vouchers 01 - Tenant Based Vouchers 5,917 5,917 Project Based Vouchers 02 - Project Based Vouchers 1,316 1,316 Hi Rise Project Based Vouchers 601 601 Single Room Occupancy (SRO)/MODS 03 - SRO/MODs 499 499 Family Unification Program 88 88 Veterans Affairs Supportive Housing (VASH) 04 - VASH Vouchers 330 330 Rent Assistance - PORT IN From Other Jurisdiction 06 - Portability 338 8,751 338

Short Term Rent Assistance Programs 1,177 94 1,083 Shelter + Care 05 - Shelter Plus Care 494 494 Locally Funded Short Term Rent Assistance 589 589 MIF Funded Short Term Rent Assistance 22 22 Alder School 41 41 Work Systems Inc. - Agency Based Rent Assistance 11 31 31

Total Rent Assistance 10,266 7,928 2,338

Public Housing Units Occupied 1,939 1,939 Traditional Public Housing units Occupied 12 - Traditional Public Housing 1,272 1,272 Public Housing units Occupied - Local Blended Subsidy 13 169 169 Public Housing units Occupied - in Owned Affordable 14 - Public Housing in Affordable Owned60 60 Public Housing units Occupied - in Tax Credit Affordable 15 - Public Housing in Tax Credit Affordable438 438

Affordable Housing Units Occupied (excluding PH subsidized) 3,902 3,301 Affordable Housing Units - Tenant Based Vouchers 16 498 498 Affordable Housing Units - Shelter + Care 17 112 112 Affordable Housing Units - Project Based Vouchers 18 260 260 Affordable Housing Units - Hi Rise Project Based Vouchers 601

^ Affordable Housing Units - HUD Multi-Family Project Based 19 342 342 Affordable Housing Units - VASH Vouchers 20 84 84 Affordable Housing Units - Family Unification Program 21 7 7 Affordable Housing Units - Section 8 Port In 22 42 42 Affordable Housing Units - Unassisted 23 1,956 1,956

Special Needs 519 519 Special Needs Units (Master Leased) ** 283 283 Special Needs Shelter Beds (Master Leased) 236 236

Total Households Occupying Housing Units 6,360 1,939 3,820

Total Housing Supports Provided to Household 16,626 9,867 6,158 Household Occupying Affordable Unit/Receiving Home Forward Rent Assistance (1,492) (1,492) Households Occupying Affordable Unit/Receiving Shelter Plus Care (112) (112) Total Households Served 15,022 9,867 4,554

Notes:^

Consists of Grace Peck Terrace, Multnomah Manor, Plaza Townhomes, Rosenbaum Plaza, Unthank Plaza** Special Needs are physical units as occupancy levels that are not reported to Home Forward by service providers master leasing these properties.

Households ServedHouseholds Served Through Housing Supports November 2014

Rent Assistance

Subsidized Housing Units

Moving to Work Programs

All Programs Non-MTW Programs


74

Households Receiving Shelter Plus Care Only

10657%

Public Housing Units Occupied 193913%

Affordable Housing Units - HUD Multi-Family Project Based

3422%

Affordable Housing Units - Unassisted195613%

Special Needs Units (Master Leased) **2832%

Special Needs Shelter Beds (Master Leased)

2361%

Households Receiving Rent Assistance and Occupying Affordable Housing Units

149210%

Households Receiving Rent Assistance Only759751%

Households Occupying Affordable Unit/Receiving Shelter Plus Care

1121%

Total Households Served: Rent Assistance and Occupied Housing Units November 2014

^ Consists of Grace Peck Terrace, Multnomah Manor, Plaza Townhomes, Rosenbaum Plaza, Unthank Plaza

Total Households Served 15,022

** Special Needs are physical units as occupancy levels that are not reported to Home Forward by service providers master leasing these properties.

* Includes Local Blended Subsidy


75

DASHBOARD REPORT


76

Home Forward - Dashboard Report For November of 2014

Property Performance Measures

1 40 40 0 1 0 15 15 10 0 0 40Occupancy

Number of Physical Rentable Vacant OccupancyProperties Units Units Units Percentage Studio/SRO 1 Bdrm 2 Bdrm 3 Bdrm 4 Bdrm 5+ Bdrm Total

Public Housing 34 1,342 1,342 28 97.9% 80 653 342 257 10 0 1,342Public Housing Mixed Financed Owned * 2 65 65 5 92.3% 0 15 40 10 0 0 65Public Housing Mixed Finance Tax Credit * 5 572 572 7 98.8% 275 93 90 62 45 7 572

Total Public Housing 41 1,979 1,979 40 98.0% 355 761 472 329 55 7 1,979Affordable Owned with PBA subsidy 5 349 349 6 98.3% 72 191 46 40 0 0 349Affordable Owned without PBA subsidy 21 2296 2,296 29 98.7% 991 615 508 156 26 0 2,296

Total Affordable Owned Housing 26 2,645 2,645 35 98.7% 1,063 806 554 196 26 0 2,645Tax Credit Partnerships 18 1,945 1,945 28 98.6% 566 495 451 278 138 17 1,945

Total Affordable Housing 44 4,590 4,590 63 98.6% 1,629 1,301 1,005 474 164 17 4,590Eliminate Duplicated PH Properties/Units -7 -637 -637 -12 -275 -108 -130 -72 -45 -7 -637

Combined Total PH and AH 78 5,932 5,932 91 98.5% 1,709 1,954 1,347 731 174 17 5,932Special Needs (Master Leased) 32 283 283Special Needs (Shelter Beds) 2 236 236

Total with Special Needs 112 6451 6451* property/unit counts also included in Affordable Housing Count

Financial 09/30/14Six months ending 9/30/2014

Properties Units Properties UnitsPublic Housing $170.43 $274.39 $444.82 $365.32 $101.68 -$22.17 13 778 21 564Affordable Owned $813.51 $174.96 $988.48 $456.40 $8.35 $523.73 24 2,500 2 145 12 5 9

Tax Credit Partnerships $434.27 $60.26 $494.53 $338.11 $7.74 $148.68 18 1,945 0 11 3 4

Public Housing Demographics

# of % of Average Average Unit Adults no Family with Elderly DisabledPublic Housing Residents Households Households Family Size Size Children Children Not Elderly

0 to 10% MFI 546 27.1% 2.2 1.8 13.5% 13.6% 0.7% 6.4% 9.5% 10.9% 1.5% 0.4% 0.2% 4.6%11 to 20% 789 39.1% 1.9 1.6 28.1% 11.0% 9.1% 19.3% 11.6% 20.3% 1.7% 1.0% 0.4% 4.1%21 to 30% 386 19.1% 2.2 1.8 11.7% 7.4% 5.9% 6.8% 4.1% 10.8% 0.9% 1.2% 0.3% 1.9%51 to 80% 46 2.3% 3.0 2.2 0.8% 1.4% 0.1% 0.2% 0.8% 0.5% 0.0% 0.1% 0.1% 0.7%Over 80% 11 0.5% 3.4 2.5 0.1% 0.4% 0.0% 0.0% 0.2% 0.1% 0.0% 0.0% 0.0% 0.1%All 2,018 100.0% 2.1 1.7 60.1% 39.9% 18.4% 36.1% 29.8% 47.8% 4.3% 3.2% 1.3% 13.8%

Waiting List Not Reported0 to 10% MFI 6,496 41.2% 1.9 1.5 2.1% 13.9% 14.3% 18.4% 2.0% 1.0% 0.5% 3.6% 1.4%11 to 20% 4,307 27.3% 2.2 1.6 2.8% 11.7% 9.1% 12.5% 1.2% 1.0% 0.4% 2.5% 0.7%21 to 30% 2,483 15.7% 2.3 1.7 2.0% 5.1% 5.0% 7.1% 0.5% 0.8% 0.3% 1.5% 0.5%31 to 50% 1,851 11.7% 2.6 1.9 1.2% 2.7% 3.6% 5.1% 0.4% 0.6% 0.2% 1.4% 0.4%51 to 80% 482 3.1% 2.7 1.9 0.3% 0.6% 0.9% 1.2% 0.1% 0.2% 0.1% 0.4% 0.1%Over 80% 161 1.0% 2.5 1.9 0.1% 0.2% 0.4% 0.3% 0.1% 0.1% 0.0% 0.1% 0.0%All 15,780 100.0% 2.1 1.8 8.4% 34.3% 33.3% 44.7% 4.3% 3.6% 1.6% 9.4% 3.1%

* Race and enthnicity are not required fields on the Waitlist Application in YardiOther Activity

#'s,days,hrsPublic Housing

Names pulled from Wait List 141Denials 19New rentals 17Vacates 12Evictions 3# of work orders received 682# of work orders completed 607Average days to respond 9.8# of work orders emergency 6Average response hrs (emergency) 19

Per Unit Per Month# of

Properties DCR Not Applicable

# of Properties not meeting DCR

Asian

Race % (head of household)

SubsidyRevenue

TotalRevenue

PropertyRevenue

Unit Mix

NOI# of Properties/units Positive Net Operating Income (NOI)

Black African American

WhiteNative

AmericanHispanic/ Latino

Hawaiian/ Pacific Islnd

Fiscal YTD ending 9/30/2014

Operating Expensew/o HMF

# of Properties

meeting Debt Coverage

# of Properties/units Negative Net Operating Income (NOI)

HAP Management Fees (HMF)

% Family Type (head of household)Households

1Home Forward Board of Commissioners December 2015

77


Rent Assistance Performance Measures

Utilization and Activity

Average HUD Subsidy Remaining Waiting List Voucher Average HUD SubsidyVouchers Vouchers Utilization Voucher Over(Under) Waiting List Names New Vouchers Vouchers Inspections Utilization Voucher Over(Under) New Vouchers VouchersAvailable Paid Percentage Cost Utilized Size Pulled Leased Terminated Completed Percentage Cost Utilized Leased Terminated

Tenant Based Vouchers 6,962 6,335 91% $591 -$19,246 2,113 2 15 34 543 93% $594 $24,155 437 470Project Based Vouchers 2,002 1,917 96% $586 $40,927 8 15 28 97% $553 -$234,012 246 275SRO/Mod Vouchers 512 499 97% $446 7 9 10 97% $447 $96,512 99 88

All Vouchers 9,476 8,751 92% $582 $21,681 30 58 581 94% $577 -$113,346 782 833

Demographics

# of % of Average Average Unit Adults no Family with Elderly DisabledTenant Based Voucher Participants Households Households Family Size Size Children Children Not Elderly

0 to 10% MFI 1,126 18.2% 2.1 2.0 8.9% 9.3% 0.5% 3.0% 8.1% 7.5% 0.6% 0.6% 0.1% 1.3%11 to 20% 2,357 38.2% 2.1 2.0 25.7% 12.5% 10.8% 15.4% 12.2% 19.7% 1.1% 2.8% 0.2% 2.1%21 to 30% 1,546 25.0% 2.2 2.0 15.6% 9.5% 7.9% 9.6% 7.2% 14.7% 0.5% 1.5% 0.1% 1.0%31 to 50% 1,005 16.3% 2.8 2.4 6.5% 9.7% 3.0% 4.3% 6.3% 7.9% 0.3% 0.9% 0.1% 0.8%51 to 80% 135 2.2% 3.2 2.7 0.8% 1.4% 0.3% 0.3% 1.1% 0.8% 0.0% 0.1% 0.0% 0.2%Over 80% 9 0.1% 3.2 3.0 0.0% 0.1% 0.0% 0.0% 0.1% 0.1% 0.0% 0.0% 0.0% 0.0%All 6,178 100.0% 2.3 2.1 57.5% 42.5% 22.5% 32.6% 34.9% 50.7% 2.6% 5.8% 0.5% 5.5%

Waiting List Not Reported0 to 10% MFI 795 37.6% 1.8 0.8% 8.4% 14.0% 16.7% 1.6% 1.0% 0.6% 2.3% 1.5%11 to 20% 566 26.8% 2.1 2.7% 9.4% 9.0% 12.0% 1.1% 1.2% 0.4% 2.3% 0.8%21 to 30% 388 18.4% 2.4 2.6% 4.7% 5.5% 8.8% 0.4% 0.7% 0.4% 1.7% 0.8%31 to 50% 259 12.3% 2.5 1.4% 2.1% 4.1% 5.3% 0.2% 0.8% 0.3% 1.2% 0.4%51 to 80% 70 3.3% 2.7 0.3% 0.5% 1.2% 1.3% 0.2% 0.2% 0.1% 0.2% 0.0%Over 80% 35 1.7% 2.4 0.1% 0.5% 0.4% 0.7% 0.0% 0.2% 0.1% 0.3% 0.0%All 2,113 100.0% 2.1 8.0% 25.7% 34.2% 44.8% 3.6% 4.0% 1.8% 8.0% 3.5%

Short Term Rent Assistance

Shelter Plus Care 494 $307,770 $623Short Term Rent Assistance 683 $405,013 $593

Resident Services

Resident ProgramsHouseholds

Served/Participants

Congregate Housing Services Public Housing 113 $106,119 $939* as of previous month

# HH Eviction

Health and Safety Stabilized

Unduplicated Number Served

# Events# Event

AttendeesResident Services Coordination Public Housing 14 52 2046 140 2400

GOALS Program Public Housing 210 $215,569 2 1 $9,673 1 $0 $961Section 8 265 $397,299 10 1 $16,390 2 $0 $1,763

Terminations or Exits

Escrow $ Disbursed

Escrow $ Forfeited

Current Month Activity

Avg Annual Earned Income Increase Over

Last Year

% Family Type (head of household)

Current Month Status

Housing Program Served

Average Funds per Participant

# of Households Participating

$ Amount of

Assistanc

Monthly Funding Amount

NewEnrollees

Households

Average Cost per Household

Calendar Year To Date

Black White Native Asian

Race % (head of household)

Hawaiian/ Hispanic

# of Participa

nts

Escrow $ Held

# of Graduates


78


Agency Financial Summary

Six months ending 9/30/2014

Subsidy Revenue ####### $21,004,254 $19,524,784 $1,479,471Grant Revenue ####### $3,089,293 $2,904,979 $184,314Property Related Income ####### $4,825,061 $4,069,956 $755,105Development Fee Revenue $0 $0 $0 $0Other Revenue $261,088 $793,743 $644,490 $149,253

Total Revenue ####### $29,712,351 $27,144,209 $2,568,142

Housing Assistance Payments ####### $16,546,896 $17,342,726 ($795,830)Operating Expense ####### $10,279,873 $9,650,634 $629,239Depreciation $706,932 $2,135,026 $2,090,802 $44,223

Total Expense ####### $28,961,795 $29,084,163 ($122,368)Operating Income $686,058 $750,556 -$1,939,954 $2,690,510

Other Income(Expense) ####### -$1,117,500 -$692,304 ($425,196)Capital Contributions $126,211 $599,126 $444,882 $154,245

Increase(Decrease) Net Assets $595,492 $232,182 -$2,187,376 $2,419,559Total Assets ####### $217,100,995 $211,544,634 $5,556,361Liquidity Reserves ####### $22,855,099 $22,744,934 $110,165

Development/Community Revitalization

New Development / Revitalization Construction Construction Current Total Cost PerUnits Start End Phase Cost Unit

Stephen's Creek Crossing 129 Aug-12 Apr-15 Sitework / Construction $51,636,304 $400,281Stephen's Creek Crossing 129 Aug-12 Apr-14 Construction $51,636,304 $400,281Lifeworks Northwest 32 May-13 Aug-14 Finance Structuring $10,346,567 $323,330St. Francis Park tbd tbd tbd Concept tbd tbd

Capital ImprovementHighrise Rehab - Group 1 343 Feb-15 Mar-16 Predevelopment $49,464,308 $144,211

Gallagher 85Northwest Tower 258

Highrise Rehab - Group 2 396 Feb-15 Mar-16 Predevelopment $48,016,944 $121,255Sellwood 110

Hollywood East 286Dekum Court Comprehensive Rehab 41 TBD TBD Predevelopment $2,000,000 $48,780Holgate Exterior Seal Project N/A Apr-14 Jul-14 Construction $350,000 N/AWilliams Plaza Masonry Repairs N/A Aug-14 Jan-15 Construction $759,704 N/ARockwood Station Windows & Siding Phs IIIN/A Feb-14 Oct-14 Construction $1,904,343 N/AUnthank Plaza N/A Mar-14 Jul-14 Construction $161,503 N/AGladstone N/A Apr-14 Oct-14 Investigative $264,800 N/A

Prior YTDIncrease

(Decrease)Month Fiscal Year to Date


79