SHA April 28, 2025 Board of Commissioners Meeting Minutes

MINUTES
REGULAR MEETING OF THE
BOARD OF COMMISSIONERS OF THE
SANFORD HOUSING AUTHORITY
MONDAY, APRIL 28, 2025, AT 6:00 P.M.
317 CHATHAM STREET SANFORD, NC 27330

The regular meeting of the members of the Sanford Housing Authority Board of Commissioners was held at 317 Chatham Street, Sanford, NC 27330, on Monday, April 28, 2025, at 6:00 p.m. in the central office conference room.

The closed board meeting was advertised on the Sanford Housing Authority website, www.sha-nc.org.

1. Roll Call: The meeting was called to order at 6:00 p.m. by Chairwoman White on roll call. The following members were present:

Present

Chairwoman Hope White
Vice Chairman William Newby
Commissioner Jackie Dalrymple
Commissioner Dr. Karen Wicker
Commissioner Dianne Sinnamon

Absent

Commissioner Erin Britton
Commissioner Holly Aeschliman

Also Present:

Walter Ferguson, Council at Large and SHA Council Liaison

Staff Present:

Dr. Michael C. Threatt, Chief Executive Officer
Deborah Kauba, Interim Chief Financial Officer
Renate Bennett, Interim Director of Rental Assistance & Resident Services
Tabatha Ferguson, Interim Human Resources Business Partner
Danielle Tilghman: Interim Housing Finance Compliance Analyst

2. Approval of Agenda: Commissioner Dalrymple made a motion to approve the agenda. Commissioner Dr. Wicker seconded the motion. All were in favor; the motion passed unanimously.

3. Approval of Minutes: Commissioner Dalrymple made a motion to approve the minutes. Commissioner Dr. Wicker seconded the motion. All were in favor; the motion passed unanimously.

4. Old Business: N/A

5. New Business:

A. Resolution 2025-2026: Disposition of Property: Commissioner Dr. Wicker made the motion to approve the disposition of property policy. Commissioner Dalrymple seconded the motion. All were in favor; the motion passed unanimously. After the motion passed, Chairwoman White provided examples of what the disposition of property would look like for the SHA.

B. Resolution 2025-27: Resolution to Amend the Bylaws of the Sanford Housing Authority to Include Revisions to the Standing Committees, Requirements for Signing an Oath of Office, the Code of Professional Ethics, Mandatory Training, Consequences for Violations, and Conflict of Interest: Commissioner Dalrymple made the motion to approve to amend the Bylaws. Commissioner Dr. Wicker made the second. All were in favor; the motion passed unanimously. After the motion passed, Chairwoman White explained the committee assignments based on seven commissioners and seven committees. She also discussed how the committee meetings will not be as long, and it is a meeting before the meeting.

Chairwoman also stated that if a commissioner wanted to change from a different committee, they should get with Dr. Threatt. Commissioner Dalrymple asked about the required training. Chairwoman explained what the training looks like by having the Banks Law Firm explain how to be a better commissioner, a HUD Representative, and each department break down what they do so that the board has a better understanding of how the organization operates as a whole. She stated that the usual board training is in January. Dr. Threatt also explained how the board training was a part of their recovery agreement and the new HUD recovery items document he submitted, which discussed best practices for governance, decision-making, and board training.

6. CEO Report:

A. Letters for Utility Bill Transfer from SHA to CCSD: Dr. Threatt addressed ongoing issues related to the utility bill transfer intended to shift responsibility from the Sanford Housing Authority (SHA) to the Central Carolina Strategic Developers (CCSD). He explained that this transfer, which should have occurred during the organizational transition through the Rental Assistance Demonstration (RAD) Project-Based Voucher (PBV) - Low-Income Housing Tax Credit (LIHTC) conversion for Matthews Court, Garden Street, and Gilmore Terrace (MGG) Developments, was never completed. As a result, SHA has continued to receive and be held accountable for utility bills that should have been under CCSD's purview. Dr. Threatt outlined the corrective steps being taken, including illustrating the formal letters that will be sent to the relevant utility providers: Duke Energy, Enbridge (formerly Dominion Gas), and TriRiver Water.

These letters will formally notify the companies of the ownership and operational changes, ensuring that all accounts are properly aligned with MGG Developments, the actual property owners. This correction is expected to reduce SHA's utility expenses significantly. He emphasized that all financial obligations, including utility bills, vendor accounts, and business operations, should have been transitioned to CCSD. This includes accounts with Lowe's, which have continued to accrue under SHA's name. Dr. Threatt noted that had the transition been executed correctly, SHA's financial liabilities would have been substantially lower, as many of these debts do not rightfully belong to the agency. For example, Dr. Threatt referenced how CCSD has independently established credit lines with vendors such as Lenovo and Office Max, further illustrating the organization's operational independence, financial capability, and nonprofit tax-exempt status. He also explained that the unresolved utility debt has directly impacted SHA's ability to turn and lease units at MGG, as the outstanding balances have created barriers to occupancy. This misalignment has delayed housing availability and affected service delivery. Finally, Dr. Threatt discussed the importance of maximizing the DUNS number and business credit profile for CCSD, which is also referenced in the letters to the utility providers.

B. Utility Letter Template for Resident Utility Responsibility: Dr. Threatt presented the proposed utility letter template distributed to residents as part of the transition of utility responsibilities. He explained that this transition is a business decision, whereas the SHA or CCSD cannot continue to afford to pay for residents' utility bills. This is an opportunity to support residents in building long-term financial stability. As part of this initiative, families will have a chance to establish and improve their credit scores while also gaining access to budgeting education that aligns with SHA's broader goals of self-sufficiency, homeownership, and aging-in-place. Dr. Threatt emphasized that this transition is designed to empower residents, not burden them.

He shared that all 348 families, including those in Public Housing and the MGG developments, will be case managed through a comprehensive needs assessment process using the Tracking-at-a-Glance software. This tool will help staff monitor and support residents across multiple areas of need, including medical insurance, food assistance (SNAP), and other wrap-around services. Dr. Threatt referenced the landlord incentive included in the recent Administrative Plan chapter update to support residents during this transition, allowing utility deposit assistance if families encounter financial difficulties when assuming responsibility for their utility accounts. This safeguard is intended to ensure that no family is left behind during the transition and that support mechanisms are in place to promote a smooth and seamless process.

C. April 2025 HUD Troubled Recovery Board Report/ Strategic Recovery Plan: Dr. Threatt provided a comprehensive update on the agency's progress in addressing the HUD Troubled Recovery designation and the ongoing implementation of the Strategic Recovery Plan. He shared recent occupancy rate improvements and outlined efforts to secure technical assistance to support the agency's recovery goals.

Initially, the agency explored engaging Nan McKay & Associates for technical support; however, due to outstanding debt obligations, the decision was made to proceed with The Nelrod Company. Nelrod will assist in developing a new Admissions and Continued Occupancy Policy (ACOP). Dr. Threatt noted that the current ACOP has not been updated since 2017, and the revised version will address several critical policy areas, including:

Housekeeping standards
Trespassing procedures
Grievance and appeals processes
Operational guidelines to improve compliance and resident relations

Dr. Threatt also reported on recent meetings with the Lee County Sheriff's Office and the Sanford Police Department, during which it was confirmed that no active trespass orders currently exist for SHA properties. This finding validates the need for clearer internal policies, improved coordination with law enforcement moving forward, and restructuring of the SHA to include a lease enforcement safety coordinator.

Chairwoman White emphasized the importance of documenting all recovery-related actions and updates in the materials submitted to HUD. She also shared that these updates were communicated to Mayor Salmon, given her role in signing the agency's Troubled Recovery Plan. Chairwoman White stressed that maintaining transparency and alignment with local leadership is essential to reinforcing the agency's accountability and demonstrating measurable progress to HUD.

Dr. Threatt further informed the Board about a $1.5 million funding opportunity available through the North Carolina Department of Commerce through the Community Development Block Grant (CDBG). The Board unanimously responded that the entire amount was needed to support ongoing recovery, maintenance, and development efforts.

Lastly, Dr. Threatt updated the environmental assessments required for the CDBG, the Capital Fund Program (CFP), and other HUD funding. He noted that these assessments are underway with the DG3 partner and are essential for ensuring compliance with federal funding requirements.

D. U.S. Housing Consulting File Review Results for HCV Program: Dr. Threatt provided a brief overview of the recent file review conducted by U.S. Housing Consulting for the Housing Choice Voucher (HCV) Program. He noted that the review identified several recurring issues within the program's file management and documentation processes.

Commissioner Dalrymple inquired whether a standardized checklist was used to ensure file accuracy. In response, Chairwoman White clarified that the agency undergoes a mandatory annual audit, not one initiated voluntarily. She emphasized that since her tenure on the Board began, the agency has consistently faced issues related to calculation errors in tenant files.

Chairwoman White further stated that the Board had requested implementing a file review checklist as far back as seven years ago. This checklist was intended to ensure staff members sign off on their files and establish a quality control process to review each file for accuracy. She highlighted that recurring issues include missing documentation, incorrect rent calculations, incomplete demographic information, and other critical file components.

Commissioner Newby confirmed Chairwoman White's comments. He also supported the need for stronger internal controls and reiterated the importance of establishing checks and balances within the file review process. He confirmed the issues with the files since he has been a commissioner. Commissioner Dalrymple expressed concern and confusion over the continued presence of errors, questioning why such problems persist despite repeated audits and recommendations.

E. sigma-Cogent Solutions (s-CS) Human Resources Audit Results: This report was not given based on the limited timeframe; however, the board received the HR audit on March 31, 2025, before the March meeting.

F. Premier Contracting Professionals Post-NSPIRE Repairs Proposal: As part of the Strategic HUD Recovery report, Dr. Threatt presented the post-NSPIRE inspection findings and discussed the proposed repair work by Premier Contracting Professionals. He outlined the scope of repairs needed to address life-threatening and severe deficiencies identified during the inspection, as well as moderate and low-level issues. Dr. Threatt emphasized the agency's challenge in addressing high work orders with limited maintenance staff capacity.

He cited examples such as improperly installed or maintained water heaters and HVAC systems, which have contributed to additional safety hazards and life-threatening conditions. These issues, he noted, require immediate attention to ensure compliance with NSPIRE standards.

On a side note, not related to NSPIRE, Dr. Threatt also raised a related concern regarding the agency's lack of revenue from internet and cable service providers operating on its properties. He explained that since the agency privately owns the properties, they should function similarly to market-rate apartment complexes, where landlords often receive a share of service provider fees. The resulting revenue could be reinvested in to resident services and property improvements.

Another critical issue discussed was the pest infestation discovered during inspections. Dr. Threatt reported that pest control services are currently not being performed routinely, and historically have only been provided as needed. He recommended that pest control be scheduled quarterly, consistent with standard residential practices, and this be added to the site budget and placed in a tenant's newsletter and on the website.

Chairwoman White inquired about the agency's capacity to manage pest control and recalled that the agency previously employed a certified maintenance technician who handled pest control for the agency. Dr. Threatt responded that many NSPIRE failures stemmed from the agency's lack of a Preventive Maintenance Work Plan, which would have addressed these recurring issues proactively.

In conclusion, Dr. Threatt advised the Board that the agency must make a strategic decision: either pay a lower amount now to address only the severe and life-threatening deficiencies, or invest more comprehensively to resolve all identified issues, ensuring the agency is fully prepared to pass future NSPIRE inspections.

G. EnCompliance Consulting: Public Housing, HCV Program, and FSS/ Resident Services Technical Assistance & Analysis Proposal: Dr. Threatt provided an update on the recent visit from EnCompliance Consulting, who were on-site the previous week to conduct a comprehensive assessment and provide technical assistance across the Public Housing, Housing Choice Voucher (HCV), and Family Self-Sufficiency (FSS)/Resident Services programs.

He reported that while the agency had previously received a perfect score of 100 on the Section Eight Management Assessment Program (SEMAP), classifying it as a High Performer, the consultants' preliminary findings revealed significant discrepancies. Upon reviewing the SEMAP submission and supporting documentation, the consultants initially assessed the agency's performance as nearly Troubled with a score of 56, later revised to Standard at 67. Dr. Threatt noted that the full report would be available by the following month.

Dr. Threatt emphasized that the first eight SEMAP indicators are self-reported, which can lead to discrepancies if not properly verified. He noted that although the agency had previously reported a perfect score, the consultants' independent review revealed significant issues that contradicted the self-assessment. This underscores the importance of internal accuracy and compliance oversight to ensure that reported data reflects actual performance.

One major issue identified was the abatement process. Specifically, when a landlord fails an inspection, the required process of placing payments on hold and issuing abated payments upon compliance was not being followed. Additionally, Indicator #3 - Adjusting Monthly Income was flagged due to inaccuracies in file documentation. He explained that these are the same issues in the calculation errors in the HCV File Review.

Dr. Threatt recommended that the agency proactively submit the corrected information to HUD and explain the implemented corrective actions.

Chairwoman White expressed skepticism about the previously reported perfect score, citing a history of file inaccuracies. Ms. Tilghman added that staff performance issues stemmed from improper training by individuals lacking the necessary expertise and that the agency had no compliance oversight in place to ensure file accuracy. Ms. Bennett echoed these concerns, stating that the former HCV Manager and her supervisor lacked the qualifications and experience to manage the program effectively, contributing to ongoing file deficiencies. She noted that Dr. Threatt identified these issues as soon as he started for the SHA.

Chairwoman White also noted that she had been assured all files were subject to quality control review, which now appears inaccurate. Ms. Bennett further stated that the former HCV Manager prioritized lease-up numbers and utilization rates over compliance, often taking inappropriate actions to meet numerical targets.

H. C. Michael Consulting Group: Procurement & Contracting Workflow Management Assessment Proposal: This report was not given based on the limited timeframe.

I. I. Fire Inspection Report for Linden Heights Property Management Office: This report was not given based on the limited timeframe.

J. DG3 Environmental Review for Public Housing Developments and Section 18 Demo/ Dispo Special Applications Center (SAC)/ Environmental Review Proposals: Dr. Threatt discussed this during the development report.

7. Department Reports:

A. Asset Management Report:

Public Housing and Maintenance Reports: Commissioner Dalrymple raised concerns regarding a discrepancy in the reported numbers for the Public Housing program. Chairwoman White acknowledged the issue and directed staff to review and correct the data in time for the next board meeting to ensure accuracy and transparency in reporting.
RAD PBV/ LIHTC and Maintenance Reports: Chairwoman White inquired about MGG's readiness for the upcoming third-party property management transition, specifically asking whether the resident files were fully prepared for handover. She emphasized that, per the agreement, the third-party management company must retain existing agency staff as part of the transition. Ms. Tilghman reported that she oversees property management for the 226 Linden development.
Community Safety Report: Chairwoman White inquired about the agency's community safety plans in preparation for the upcoming summer months. Dr. Threatt shared that the agency is currently interviewing candidates for the newly created Lease Enforcement Safety Coordinator position. He outlined the key responsibilities of the role, which include:
- Monitoring and reviewing security camera footage to identify and respond to safety concerns
- Building relationships with residents, staff, and local law enforcement to foster trust and collaboration
- Conducting regular patrols of agency properties, both on foot and by vehicle
- Supporting lease enforcement efforts, including addressing unauthorized occupants and lease violations
- Coordinating with police departments to ensure alignment on trespass procedures and incident response
- Documenting safety-related incidents and assisting with follow-up actions to improve community well-being

B. Rental Assistance Report:

Housing Choice Voucher (HCV) Program Report: Chairwoman White opened the discussion by acknowledging that the Board was aware the agency's Section 8 program is not currently classified as a High Performer. Ms. Bennett provided an update on staffing, noting the recent hiring of a new Housing Specialist who brings experience from another local Public Housing Authority (PHA).

Ms. Bennett discussed the findings from EnCompliance Consulting, which identified numerous compliance issues within the HCV program. She explained that previous HCV leadership had been primarily focused on voucher utilization rates, aiming to maximize the number of vouchers issued or funds spent, rather than ensuring regulatory compliance. She noted that one contributing factor was the lack of a cap on rent increases, which led to unsustainable rent burdens.

Chairwoman White expressed concern that the agency had allowed landlords to raise rents unchecked, resulting in the agency paying excessively high rental amounts. In response, Ms. Bennett shared that the agency is currently revising its entire Administrative Plan, which has not been updated since 2019, to address several key areas, including:

Establishing a rent burden threshold for participants
Implementing controls on rent increases
Incorporating modern policy updates to ensure HUD compliance

Ms. Bennett reported that while the agency has an allocation of 951 vouchers, only a little over 700 vouchers are currently leased, due to overspending. Dr. Threatt added that, realistically, the agency should be leasing at least 100 additional vouchers, which would house more families and increase the agency's funding by approximately $2 million.

Dr. Threatt also addressed concerns with other rental assistance programs. He noted that the Housing Opportunities for Persons With AIDS (HOPWA) program is not currently receiving allocations from HUD and that this issue needs to be investigated further. He recommended scheduling a meeting with Duke University to discuss the program's future. He also stated that there is still ambiguity regarding the Harnett Training School's 37 PBVs that he discovered when he first entered the agency, and the landlord file discrepancy.

Additionally, Dr. Threatt reported that HCV Homeownership Program participants are not appearing in HUD's PIC system, indicating a potential data or reporting issue requiring further review and correction.

C. Resident Services Report: Dr. Threatt provided an update on the Family Self-Sufficiency (FSS) Program, highlighting ongoing challenges with case management and the accuracy of participant escrow accounts. He noted that many individuals enrolled in the program had not been actively case-managed, which has impacted both program outcomes and compliance. To improve data tracking and reporting, Dr. Threatt discussed how Tracking-at-a-Glance, the new case management system, would support more accurate and timely reporting for future Board meetings.

Ms. Bennett discussed the recent onboarding of a newly appointed FSS/ HCV Homeownership Coordinator and a return hire for the SHA, who has already begun engaging with families to support their transition to independent utility responsibility. Ms. Bennett reported that, during initial meetings, no residents expressed concerns about their ability to transfer utilities into their own names.

Commissioner Dalrymple inquired about the overall process for utility transition. In response, Dr. Threatt outlined the application process and explained how the water utility transition will be implemented. He noted that the MGG developments are already individually metered, while the LUFH properties are currently master metered. Until individual metering is completed at LUFH, SHA will bill residents directly for water usage as of July 1, 2025.

Dr. Threatt also shared that the agency is exploring cost-effective solutions for utility metering, including electronic meter reading systems, while considering the properties' age and the potential for future redevelopment. He spoke about utilizing CDBG and CFP funding for this process.

Chairwoman White added context to the process, explaining how residents would complete the utility application with the City of Sanford and TriRiver Water. She also mentioned the benevolence water program administered by the Johnson-Lee Community Action Agency, which assists residents in need and is managed in partnership with the City.

D. Development Report: Chairwoman White expressed enthusiasm about the agency's recent progress. Dr. Threatt reported that the agency awaits appraisals for the Administrative Building and Stewart Manor. He provided an overview of the Section 18 Demolition/Disposition process, including the required Physical Needs Assessment (PNA) and environmental assessments for Stewart Manor.

Dr. Threatt shared that the agency is working with DG3 Consulting to complete the necessary steps for demolition and the Special Applications Center (SAC). He noted that the agency is proceeding cautiously due to environmental uncertainties and the absence of a finalized redevelopment plan. He confirmed that Stewart Manor is scheduled for demolition by December.

The agency has also initiated its Annual Plan, Five-Year Plan, and Significant Amendment processes to prepare the public notice for the public hearing to meet HUD requirements.

Chairwoman White inquired about preparations to market the redevelopment opportunity for Stewart Manor. She reflected on the agency's challenges during the RAD (Rental Assistance Demonstration) process, noting that each development had at least $300,000 in reserves. Yet, the agency experienced financial strain during development efforts, exacerbated by the COVID-19 pandemic.

Dr. Threatt offered his subject matter expertise, cautioning that significant funding cuts to the public housing program are expected in October. He suggested that the agency consider pursuing a Voluntary Conversion to the Section 8 program, which would allow for greater flexibility and funding, with the option to revisit redevelopment plans later.

E. Human Resources Report: Chairwoman White asked for an update on the status of the agency's HR files. Ms. Ferguson reported that the files are nearing completion, and she continues to uncover and organize documents as she cleans and restructures the HR office. She confirmed that a fireproof, locked file cabinet is now in place to secure sensitive personnel records.

Chairwoman White also inquired about the onboarding process. Ms. Ferguson shared that she is receiving support from Senior HR Consultant Ms. Sheryl Culliver-Turner with sigma-Cogent Solutions, who assists in formalizing onboarding procedures. Ms. Ferguson also discussed efforts to ensure compliance with HR file requirements, including proper documentation of I-9 forms. She outlined current recruitment strategies, new hires, and workforce planning initiatives to strengthen the agency's staffing capacity.

F. Public Relations Report: Dr. Threatt presented several logo design concepts and shared early mockups of the agency's new website. Board members and staff provided feedback on the logo designs, discussing elements they liked and areas for improvement.

He emphasized that the new website will be ADA-compliant, multilingual, and designed to improve accessibility and transparency. Key features will include:

News and updates on board meetings, achievements, pest control schedules, and air filter changes
Mobile compatibility for easier access
Online portals for families to apply for housing, make payments, request work orders, etc.
In-office kiosks to support residents who prefer or need to apply in person

Dr. Threatt also noted that the website will feature imagery that reflects the agency's diverse demographics and will be integrated with social media platforms to enhance community engagement.

G. Financial Report: During his conversation about the recovery strategic plan, Dr. Threatt provided a comprehensive update on the agency's financial status and recovery efforts. He began by addressing issues with Yardi, the agency's former housing software provider. Although the agency had initially secured Yardi's support through Dr. Threatt's personal relationship, the lack of communication from the previous administration, specifically their failure to respond to emails or return calls, ultimately led to the loss of critical financial information when Yardi deleted SHA's data.

Despite this setback, BDO, the agency's fee accounting firm, has made significant progress. Although the original data was deleted, BDO could reconstruct financial records using available documentation and internal documents, allowing them to "back into the numbers" to complete the audit. BDO has reliable data from January 1, 2024, and continues to receive substantial support from Interim CFO Ms. Kauba. Dr. Threatt expressed confidence that the agency is on track to meet the June 6, 2025, deadline for completing the FYE 2023 audit.

He also noted that Barton, Gonzalez & Myers, the agency's regular auditors, are currently drafting the footnotes for the audit, with his assistance. Additionally, the agency successfully submitted all required documentation to HUD's Energy Performance Information Center (EPIC) for the 2024 Capital Fund Program (CFP), securing $868,872.00 in funding. Dr. Threatt broke down the allowable uses of these funds:

25% for Operating Fund support
10% for Administrative Costs
10% for Management Improvements

Chairwoman White cautioned that the agency may be unable to count the 2024 funds until the audit is complete. Dr. Threatt acknowledged this risk but expressed optimism that the FYE 2023 audit would be completed in May, with the FYE 2024 audit expected by late June. He also validated Chairwoman White's concern based on the agency's failure to submit the Financial Data Schedule (FDS), and he explained that HUD would not have anything to go off. He also explained that the agency should be in good shape for the CFP but may have challenges regarding the shortfall in anticipated funding.

He also shared that although the staff accountant originally scheduled to start in April did not begin, a new hire is expected to start on May 12 to support Ms. Kauba in the Finance Department.

Dr. Threatt addressed financial recovery items outlined in the HUD Recovery Plan, including transitioning to a 24/7 work order line. He noted that this remains a priority but is pending full asset management staffing.

Chairwoman White inquired about rent collection improvements as part of the recovery discussion. Dr. Threatt explained that collections will improve once residents pay via online portals, ACH, or credit card. He noted that transportation barriers currently make it difficult for residents to obtain money orders, often requiring them to pay for rides to the rent office. The upcoming software transition from SACS to Reframe over the summer is expected to streamline rent collection and improve accessibility.

Dr. Threatt also discussed updates to the Recovery Agreement based on HUD's feedback. Commissioner Sinnamon raised concerns about online rent payments, citing fears of identity theft. Chairwoman White reassured her that alternative payment options would remain available and shared her understanding of such concerns, given her experience working at the Social Security Administration.

Dr. Threatt addressed a cash management issue raised by HUD during a December 2023 visit. HUD had inquired about checks allegedly left in drawers by accounting staff. Dr. Threatt and Ms. Kauba, who were not with the agency then, were unaware of the issue. He explained that HUD cited examples where checks were written for incorrect amounts (e.g., $80 instead of $8,000) and never mailed. Ms. Kauba confirmed that some checks were cleared or voided, but she could not verify all transactions due to limited historical knowledge.

Dr. Threatt reported that the agency has implemented 16 new financial policies to address these concerns, focusing on internal controls and check-writing procedures. He also highlighted the importance of executing a HUD-compliant depository agreement between Truist Bank and SHA, noting that the current arrangement violates HUD regulations.

Commissioner Dr. Wicker inquired about ongoing difficulties obtaining bank statements from Truist Bank for the forensic audit. Ms. Kauba responded that the agency is still experiencing issues with the Downtown branch and plans to meet with them soon to address the concerns. However, she noted that she has begun working with the Horner Blvd. branch, where she has received significantly better customer service and overall support.

Dr. Threatt concluded by discussing commissioner training. He referenced the "What Every Commissioner Needs to Know About PHA Finance" training and shared that he had spoken with Chairwoman White about the cost. Chairwoman White emphasized the importance of cost-efficiency. Dr. Threatt added that having an industry CFO lead a training course could provide tremendous value to the board in the future. However, given current funding challenges, he recommended leveraging the agency's access to HAI Group training in the interim. He proposed assigning individual user accounts to each commissioner and hosting "lunch and learn" sessions to support ongoing board education and engagement.

Later in the meeting, Ms. Kauba presented the full financial report, offering a detailed breakdown of expenditures, outstanding obligations, and funding drawdowns. Chairwoman White expressed enthusiasm upon seeing that several items had been paid in full, noting the agency's progress in clearing financial obligations.

Commissioner Dalrymple requested clarification on which specific items had been paid in full. In response, Chairwoman White inquired whether all Capital Fund Program (CFP) vendors had received their payments. Ms. Kauba explained that CFP funds are drawn down on a monthly basis and that there are limits to how much can be drawn each month, based on HUD's disbursement schedule and compliance requirements.

Chairwoman White also asked for an update on the payment status of The Do It Crew, a vendor awaiting compensation that has been complaining. Ms. Kauba clarified that payment is pending due to incomplete or non-compliant documentation and that funds will be released once all required information is submitted and verified.

Additionally, Chairwoman White inquired about the status of the past and current water bill agreement with the City of Sanford. Dr. Threatt responded that the agency is working with Attorney Banks of The Banks Law Firm to address the matter and finalize a realistic resolution.

8. Commissioners' Comments: Commissioner Dalrymple said she did not understand why the files were wrong if they had a checklist. She gave an example: when she picks up an HR file, it should have a resume, job description, I-9, and everything should be in order. Chairwoman White stated that the files for the agency, across the board,were incorrect.

9. Public Comments: Mr. Ferguson, SHA Council Liaison, provided public comments early in the meeting before departing due to a family matter. He introduced the potential for a partnership with Trillium Health Resources and proposed hosting a Community Meeting at the SHA office to raise awareness and engage stakeholders. Mr. Ferguson, who serves on Trillium's Governing Board, which oversees behavioral health services across 40 counties, also serves as Regional Board Member and Finance Chair.

He emphasized Trillium's significant impact, managing a billion-dollar budget, and noted that up to 15 representatives from Trillium could participate in the proposed meeting. He highlighted that Life Springs is interested in becoming a service provider under Trillium, which offers a broad range of behavioral health services. Since Medicare and Medicaid cover many SHA residents, this partnership could bring valuable resources to the community. Mr. Ferguson also suggested inviting two SHA Board Commissioners to the meeting to strengthen local collaboration and visibility.

During his comments, Mr. Ferguson spoke about Cecelia Peers, Regional Vice President (Southern) of Trillium Health Resources (formerly Sandhills Center), noting that she will lead the initiative on behalf of Trillium. He shared that Ms. Peers had recently been introduced to Dr. Threatt via email and expressed interest in providing behavioral health training for SHA staff and direct services for residents. She was also interested in learning more about Dr. Threatt's vision for aging-in-place and innovative supportive housing plans.

Mr. Ferguson pointed out that many community leaders are unaware of SHA's office location, and that the proposed event could help raise awareness and strengthen community ties. He emphasized the importance of engaging elected officials, pastors, and other trusted community leaders to build trust and understanding around mental health services. He also explained that the Sheriff's participation in the community meeting would be a valuable addition, particularly in support of efforts to prevent incarceration through early intervention services.

Dr. Threatt added the importance of establishing additional Memorandums of Understanding (MOUs) and Memorandums of Agreement (MOAs) with providers to expand access to community resources such as Trillium. He highlighted a pressing need for services tailored to veterans, particularly under the VASH program, where only 16 out of 25 allocated vouchers are consistently leased, leaving nine (9) vouchers unused and the potential for supportive housing development. Dr. Threatt also proposed exploring opportunities to convert motels into affordable housing, aligning with the North Carolina Department of Health and Human Services' significant funding for supportive housing. He emphasized that this initiative would support both aging-in-place and mental health goals. He discussed that this is something that he has done through creating a Continuum of Care (CoC).

Chairwoman discussed the importance of ensuring that new partnerships or service expansions do not conflict or create a barrier when other providers did not get a chance to work with the SHA. She emphasized the need for coordinated community-based solutions to address the needs of vulnerable populations. Mr. Ferguson also stated that he would contact Lee County to address the community's dogs and trash pickup issue.

10. Closed Session: Chairwoman White called for a motion to enter a closed session. Commissioner Dr. Wicker moved to join the closed session, and Commissioner Dalrymple seconded the motion. Chairwoman White proceeded to read the applicable statutes governing closed sessions. Upon a unanimous vote in favor, the Board entered a closed session at 6:55 p.m.

A. Personnel Evaluation and Compensation Discussion: Chairwoman White led a discussion regarding the six-month performance evaluation of Dr. Threatt. The discussion included a review of his current compensation and planning for his comprehensive evaluation at the conclusion of his first year of service.

B. Employee Benefits Matter: Chairwoman White also addressed a matter concerning a second request for benefit payout submitted via email by former employee, Director of Operations, Ms. Sherri Campanale. The Board reviewed the request in the context of the SHA's personnel policy.

Adjournment of Closed Session: Chairwoman White requested a motion to conclude the closed session following the discussions. Commissioner Dalrymple made the motion, which Commissioner Dr. Wicker seconded. The motion carried unanimously, and the closed session was adjourned at 7:22 p.m. and resumed the regular board meeting at 7:24 p.m.

11. Adjournment: Commissioner Dalrymple motioned to adjourn the regular board meeting. Commissioner Dr. Wicker seconded the motion. All were in favor, and the motion passed unanimously. The regular board meeting was adjourned at 8:04 p.m.

Minutes prepared by Dr. Michael C. Threatt, CEO, Secretary

Approved:

Hope W. White, Chairwoman
Dr. Michael C. Threatt, Secretary