SHA August 25, 2025 Board of Commissioners Meeting Minutes

MINUTES
REGULAR MEETING OF THE
BOARD OF COMMISSIONERS OF THE
SANFORD HOUSING AUTHORITY
MONDAY, AUGUST 25, 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, August 25, 2025, at 6:00 p.m.

The regular board meeting was advertised on the Sanford Housing Authority website, www.sha-nc.org, and as a Legal Ad in the Sanford Herald.

1. Roll Call: The meeting was called to order at 6:01 p.m. by Chairwoman Dr. Wicker on roll call. The following members were present:

Present

Chairwoman Dr. Karen Wicker
Vice Chairman Jacquelyn Dalrymple
Commissioner Erin Britton
Commissioner Diane Sinnamon
Commissioner Crytal Williams (virtual)

Also Present:

Walter Ferguson, Council at Large and SHA Council Liaison (virtual)

Staff Present

Dr. Michael Threatt, Chief Executive Officer
Deborah Kauba, Chief Financial Officer
Renate Bennett, Interim Director of Rental Assistance
Tabatha Ferguson, Interim Business Services Manager
Danielle Tilghman, Interim Director of Asset Management
Tonya Davis-Buie, Asset Manager
Jeffrey Gorley, Lease Enforcement Safety Coordinator

Public Guest

Hope W. White, Former SHA Chairwoman
Latora McNeill, HCV/ FSS Participant

2. Approval of Agenda:

Commissioner Britton made a motion to approve the agenda. Vice Chairman Dalrymple seconded the motion. All were in favor; the motion passed unanimously.

3. Approval of Minutes:

Commissioner Britton made a motion to approve the minutes, except for any changes submitted by the Board for the minutes from the May 2025 regular meeting. Vice Chairwoman Dalrymple seconded the motion. All were in favor; the motion passed unanimously.

4. Old Business: N/A

5. New Business:

A. Resolution 2025-36: Approval of Revision for SHA's Administrative Plan to Add Special Purpose Vouchers Chapter, Revise Waiting List, PBV, and RAD PBV Chapters

Ms. Bennett provided an overview of the resolution, explaining that the updates were necessary to bring the Administrative Plan into compliance with current HUD requirements. Specifically, the revisions addressed:

Chapter 4 - Waiting List Updates
Chapter 17 - Special Purpose Vouchers (SPV)
Chapter 18 - Project-Based Vouchers (PBV)
Chapter 19 - RAD PBV Developments

She noted that the last formal approval of SHA's Section 8 Housing Choice Voucher (HCV) Administrative Plan occurred in 2017, and that several programmatic changes had taken place since then.

Dr. Threatt added that during a recent analysis of the Administrative Plan, it was discovered that the RAD PBV program had not been properly incorporated. The plan inaccurately referenced the Project-Based Rental Assistance (PBRA) model, which does not apply to SHA's RAD PBV portfolio. This omission created inconsistencies and compliance risks.

Additional gaps were identified in the documentation of SHA's PBV developments, including properties such as Harnett Training School and 226 Linden Avenue (Hope W. White Village). Furthermore, the plan lacked references to several Special Purpose Voucher programs, including Veterans Affairs Supportive Housing (VASH) and Housing Opportunities for Persons with AIDS (HOPWA) in partnership with Duke University. These omissions rendered the existing Section 8 HCV policy outdated and out of alignment with HUD standards.

Dr. Threatt emphasized that the approved revisions were a critical step toward restoring compliance. He also informed the Board that approximately 20 additional chapters of the Administrative Plan still require review and updates, and that this work will continue in the coming months.

B. Resolution 2025-37: Approval of 2025 Utility Allowance for the Housing Choice Voucher (HCV) Program

Chairwoman Dr. Wicker called for the motion. Vice Chairwoman Dalrymple made the motion. Commissioner Britton seconded the motion. All were in favor, and the motion passed unanimously.

Ms. Bennett provided an overview of the annual requirement from the U.S. Department of Housing and Urban Development (HUD) for Public Housing Agencies (PHAs) to update their utility allowance schedules based on current statistical data within their jurisdiction. She explained that SHA engaged The Nelrod Company to analyze 2025, consistent with the firm's work in the prior year. The updated utility allowance figures will take effect on October 1, 2025.

Dr. Threatt added that SHA participates in a Consortium Agreement with Nelrod, which offers a streamlined, cost-effective approach through a three-year engagement. He noted that while PHAs have the option to use other nationally recognized vendors, Nelrod's familiarity with SHA's jurisdiction and regulatory requirements made this process efficient and reliable.

He further emphasized that maintaining an accurate and timely utility allowance schedule is essential for compliance with HUD's Section Eight Management Assessment Program (SEMAP). Specifically, Indicator #4: Utility Allowance Schedule carries a value of 5 points in the agency's annual performance assessment.

C. Resolution 2025-38: Approval of 2025 Utility Allowance for the Public Housing Program

Chairwoman Dr. Wiker called for the motion. Commissioner Britton made the motion to approve the 2025 Utility Allowance Schedule for the Public Housing Program, effective October 1, 2025. Vice Chairwoman Dalrymple seconded the motion. All were in favor, and the motion passed unanimously.

Dr. Threatt provided an overview of the resolution, noting that this update aligns with SHA's broader utility allowance adjustments but is specific to the Public Housing Program. He explained that the revised schedule now includes electric, water, sewer, gas, and trash, expanding beyond the previous coverage of only electric and gas.

The most notable change is the addition of water as a resident responsibility, accompanied by a corresponding water utility allowance.

Dr. Threatt clarified that this adjustment is designed to be cost-neutral for residents. While residents begin receiving individual water bills, the inclusion of a water allowance will offset the expense. In many cases, residents may see a reduction in their portion of the rent, even if their water usage increases.

He further explained that now that the water lines proposal is in place, the agency can move forward with installing these temporary water meters across SHA's public housing developments. The agency is positioned to begin installing individual water meters in each unit. This will allow for accurate billing and promote conservation, while maintaining affordability through the updated utility allowance structure. Dr. Threatt emphasized that the system is designed to "balance itself out," ensuring fairness and transparency for residents.

D. Resolution 2025-39: Approval of 2025 Payment Standards for the Housing Choice Voucher (HCV) Program

Chairwoman Dr. Wicker called for the motion. Commissioner Britton made the motion to approve the 2025 Payment Standards for the Housing Choice Voucher (HCV) Program, effective October 1, 2025. Vice Chairwoman Dalrymple seconded the motion. All were in favor, and the motion passed unanimously.

Ms. Bennett provided an overview of the payment standards, explaining that they represent the maximum subsidy amount HUD allows SHA to apply toward a household's rent and utilities. These standards are designed to ensure affordability for families with little or no income, based on local market conditions and HUD guidelines.

Dr. Threatt elaborated that adopting updated payment standards is a regulatory requirement and a key component of SHA's annual performance evaluation under the Section Eight Management Assessment Program (SEMAP). He noted that this falls under Indicator #8 - Payment Standards, which is worth 5 points in the SEMAP scoring system. He also clarified that SHA maintains distinct payment standards for both Lee and Harnett Counties, reflecting differences in local housing markets.

Recognizing that several Board members were newly appointed, Chairwoman Dr. Wicker requested that staff provide real-world scenarios and examples to illustrate how payment standards are applied in practice and affect individual families. Dr. Threatt and Ms. Bennett responded with case-based examples, demonstrating how household income, unit size, and location influence the subsidy amount and tenant rent portion.

Dr. Threatt emphasized that payment standards are applied on a case-by-case basis, tailored to each household's unique circumstances. He reiterated that this is not a "one-size-fits-all" model, and flexibility is essential to meet the diverse needs of SHA's voucher holders. He also noted that the administrative fees associated with voucher issuance help support staffing and program operations.

E. Resolution 2025-40: Approval of 2025 Flat Rents for the Public Housing Program

Chairwoman Dr. Wicker called for the motion. Vice Chairwoman Dalrymple made the motion to approve the 2025 Flat Rent Schedule for the Public Housing Program, effective October 1, 2025. Commissioner Britton seconded the motion. All were in favor, and the motion passed unanimously.

Ms. Tilghman provided an overview of the flat rent policy, explaining that residents whose adjusted income exceeds 30% of the applicable threshold may elect to pay the flat rent amount. Residents can choose between paying 30% of their adjusted monthly income or the flat rent, depending on which is more affordable for their household. She noted that this approach is similar to the structure used in Low-Income Housing Tax Credit (LIHTC) properties and is applied on a case-by-case basis to ensure fairness and flexibility.

Dr. Threatt added that flat rents are calculated at 80% of the Fair Market Rent (FMR), as determined by HUD. He emphasized that this policy is not only regulatory but also strategic, helping SHA maintain compliance while promoting mixed-income occupancy across its public housing portfolio. Mixed-income models support financial sustainability by balancing rent contributions and reducing reliance on subsidies alone.

He further explained that adherence to HUD's flat rent policy is essential for program integrity and budget planning. Staff must follow these guidelines to ensure consistency, equity, and alignment with federal standards. Dr. Threatt noted that HUD favors this model because it encourages income diversity within developments, which can strengthen community dynamics and improve long-term financial health for the agency.

6. CEO Report

A. Kamstrup Water Proposal:

Dr. Threatt presented a proposal to install temporary individual water meters in each unit across SHA's public housing developments. The initiative, supported by a funding request through the Capital Fund Program, aims to provide residents with individualized water billing and greater transparency in utility usage. Each unit would be equipped with a Kamstrup water meter and a tablet loaded with software to track consumption. The total estimated cost for the project is $68,000, covering 167 units.

Dr. Threatt emphasized that this solution is temporary and designed to be minimally invasive. The meters will be installed in secure locations to prevent tampering or accidental damage. He noted that the devices would be housed in safety glass enclosures and, where feasible, placed in utility closets to ensure they remain out of reach of children and unauthorized individuals.

Vice Chairwoman Dalrymple and Commissioner Britton raised questions regarding the safety of the installations and the accessibility of the devices to children. Dr. Threatt assured the Board that safety precautions are a priority and that all installations would comply with child safety standards.

Vice Chairwoman Dalrymple also inquired about the cost implications of the tablets and the automation features of the water meters. Dr. Threatt responded that this initiative aligns with a broader strategic goal discussed during his interview process: transitioning SHA out of direct utility management. He explained that the agency currently pays over $15,000 per month for resident water bills at Linden, Utley, Foushee, and Harris developments. Implementing individualized metering would not only promote conservation and accountability but also generate substantial cost savings for SHA.

B. Harnett Training School HAP Contract, and Letters:

Dr. Threatt provided an update regarding the Harnett Training School property and its current designation under the Project-Based Voucher (PBV) program. He confirmed that the Housing Assistance Payments (HAP) contract was officially received, and a formal termination letter was issued to the property management team.

The letter, drafted in collaboration with The Banks Law Firm (TBLF), confirms that the PBV designation will end on December 31, 2025, and the property will transition to a traditional landlord role under the Housing Choice Voucher (HCV) program.

TBLF reviewed SHA's compliance obligations as the PBV Contract Administrator and affirmed that the agency's actions are consistent with HUD regulations. Dr. Threatt expressed relief that the issue was identified early, noting that continued operation under the PBV designation beyond the termination date would have resulted in a serious compliance violation.

The HCV Program team will visit the Harnett Training School Property Management Office to discuss Choice Mobility options with residents. Dr. Threatt stated that Ms. Bennett will lead this effort, ensuring that tenants are informed of their rights and housing options during the transition.

Dr. Threatt also addressed a critical concern regarding the administration of SHA's waiting list specific to the Harnett Training School. Upon review, it was discovered that SHA could not confirm who had been managing the waiting list for this property, a serious red flag for HUD and a potential fair housing liability. As SHA holds the role of Contract Administrator, this lack of oversight raises significant concerns about how the waiting list was maintained, how families were selected, and whether the process adhered to federal guidelines.

Dr. Threatt acknowledged the seriousness of the matter and committed to a full review of waiting list procedures, tenant selection protocols, and fair housing compliance across all PBV sites.

C. NSPIRE Score for Linden Heights, Foushee Heights, and Utley Plaza:

Dr. Threatt extended his appreciation to the Asset Management team for their dedication and performance improvements. He highlighted the exceptional work completed by Premier Contracting Professionals, who successfully closed over 4,000 work orders within a six-week period. This intensive effort directly contributed to the agency achieving an NSPIRE score of 81 across three Asset Management Properties (AMPs): Linden Heights, Utley Plaza, and Foushee Heights.

Dr. Threatt expressed enthusiasm about the new maintenance standard being developed for the agency, which aims to institutionalize quality, responsiveness, and compliance across all public housing sites. He emphasized that this standard will serve as a benchmark for future operations and inspections.

He also reported that Harris Court was scheduled for its NSPIRE inspection on September 3rd, and he remained optimistic about the agency's performance. A successful outcome would further improve SHA's Physical Assessment Subsystem (PASS) score under the Public Housing Assessment System (PHAS). Dr. Threatt reiterated that increasing the PASS score is a critical step toward exiting the HUD Recovery Agreement, signaling the agency's progress in restoring operational excellence and regulatory compliance.

D. PHAS Score FYE2023 and FYE2022:

Dr. Threatt provided a strategic overview of the agency's financial performance and its implications for HUD scoring and oversight. He reported that the agency's PHAS score dropped from 47 to 39 in Fiscal Year Ending (FYE) 2023, marking the lowest score in recent history. This decline was attributed to the previous administration's failure to implement a meaningful turnaround strategy, compounded by a lack of internal capacity and the failure to submit audited financials on time.

Dr. Threatt explained that the agency is likely to receive a similar score for FYE 2024, again due to delayed audit submission. He noted that this setback was exacerbated by a breakdown in communication and oversight under the prior leadership. Specifically, Yardi, the agency's property management software provider, deleted critical financial records after the previous administration failed to maintain proper engagement. Additionally, the agency's relationship with its former fee accountant, BDO, ended abruptly, creating further disruption in the financial reporting process.

These failures not only impacted the agency's HUD performance metrics but also illustrated why the agency was required to sign a HUD Recovery Agreement. Dr. Threatt explained that HUD typically provides Public Housing Agencies (PHAs) with an opportunity to resolve deficiencies through a Corrective Action Plan (CAP). Unfortunately, SHA failed to meet the requirements of the CAP, which ultimately led to the formal Recovery Agreement-a more serious intervention signaling systemic noncompliance.

Dr. Threatt emphasized that these challenges are being actively addressed through improved financial controls, strategic leadership, and a renewed commitment to transparency and accountability. Restoring the agency's PHAS score and exiting the Recovery Agreement remain top priorities.

7. Department Reports:

A. Asset Management Report:

Public Housing and Maintenance Reports: Ms. Davis-Buie presented the monthly Public Housing (LUFH) and Maintenance Reports to the Board, providing a comprehensive overview of operational performance and resident engagement. She began by summarizing the June Tenant Balances, including both the total rent owed and the amount collected to date, offering insight into rent recovery efforts and financial trends across the portfolio.

She reported on the agency's current vacancy status, noting that five units are ready for occupancy and are actively being filled through the application process. Additionally, the team is preparing 15 more units for move-in readiness, working in phases of five units at a time. These units are undergoing NSPIRE inspections while vacant to ensure full compliance with HUD's updated physical standards before being offered to new applicants.

Commissioner Williams inquired about SHA's monthly target for filling vacant units. Ms. Davis-Buie responded that the goal is to complete inspections and turn units around within a few weeks, allowing for timely occupancy and minimizing unit downtime.

The Board engaged in a discussion regarding occupancy rate accuracy, noting that current data is being pulled from the SACS system, which may contain inconsistencies. Staff acknowledged the concern and committed to reviewing the occupancy rate calculation formula to ensure accuracy and reliability in future reporting.

The conversation then shifted to the Maintenance Report, with a focus on work order completion status. Staff explained that while many work orders have been physically completed, they remain open in the system due to delays in administrative closure. A backlog of work orders from the previous year is still reflected as outstanding, and efforts are underway to reconcile and close them out in the system to reflect actual performance.

Commissioner Williams requested that future reports include "N/A" in the completion percentage column when no work orders are finalized during a given month, to avoid misrepresentation of performance metrics. Staff agreed to implement this adjustment in upcoming reports to improve transparency and data integrity.

Public Safety Report: Mr. Jeffrey Gorley presented the Public Safety Report, noting that July saw minimal police calls related to criminal activity across SHA properties. He shared progress on his 90-day safety plan, stating that 8 out of 11 targeted areas have begun the process of camera installation, a key initiative to enhance surveillance and deter incidents.

Mr. Gorley emphasized his ongoing efforts to ensure staff safety, reporting that maintenance shops are now fully secured to protect agency assets. Additionally, visitor protocols have been strengthened, requiring guests at designated buildings to sign in at the front desk, reinforcing controlled access and accountability.

He also noted that lighting improvements are underway in several buildings to enhance visibility and safety, particularly in common areas.

To foster stronger community engagement, Mr. Gorley announced the launch of a Resident Safety Committee, set to begin meeting in September. This committee will serve as a platform for residents to share concerns, offer feedback, and collaborate on safety solutions. He acknowledged that staff have expressed concerns about personal safety due to past incidents involving visitors and residents. As a precaution, office doors are now locked, though this has raised concerns about responsiveness when visitors arrive.

Commissioner Williams asked how Mr. Gorley was engaging with residents. Mr. Gorley explained that he has identified and contacted a representative at each location and will begin meeting with them individually. He emphasized a "start small" approach to ensure the committee is effective and manageable. He also shared that residents can reach him directly at his office, and that SHA has established both a complaint line and a tip line to report safety concerns. He reassured the Board that he is available at any time to support residents.

Dr. Threatt added that residents are actively using these resources, including contacting Mr. Gorley and submitting anonymous tips, which are helping to build trust and strengthen the agency's safety culture.

B. Rental Assistance Report:

Housing Choice Voucher (HCV) Program Report: Ms. Bennett provided a candid and detailed overview of the current state of the Housing Choice Voucher (HCV) Program. She highlighted persistent and recurring errors in income calculations and rent determinations, noting that these issues have spanned multiple years and have significantly impacted program compliance and participant outcomes.

She discussed several operational challenges, including:

Fraud analysis limitations
Audit findings and unresolved compliance issues
Supervisory lapses in quality control and file review
Staff training deficiencies
Ineffective use of housing software systems

Ms. Bennett emphasized that unreported income from residents and participants remains a significant concern, contributing to inaccurate subsidy calculations and potential program abuse.

To address these gaps, Ms. Bennett shared that she recently attended multiple online certification webinars focused on HCV Program administration and financial management. Commissioner Williams asked what she gained from the training. Ms. Bennett responded that the sessions revealed critical compliance areas the agency had been overlooking. She acknowledged learning new information she had not previously encountered and recognized the depth of noncompliance that had gone unaddressed.

She referenced comments made by CEO Dr. Threatt, who described the department as "broken on all levels." Ms. Bennett agreed with this assessment, stating that the agency had not fulfilled the requirements necessary to be legitimately recognized as a High-Performing Agency by HUD, despite previously claiming that designation.

This report underscored the urgent need for:

Comprehensive staff retraining
Policy and SOP updates
Enhanced internal controls
Strategic leadership to rebuild program integrity

C. Financial Report:

Ms. Kauba delivered the financial report, offering a comprehensive overview of the agency's current fiscal standing. She detailed which financial obligations had been paid in full and identified those that remained outstanding. Notably, Ms. Kauba reported that since joining the agency, she has successfully paid down over $1.1 million in legacy debt, a significant milestone in stabilizing the agency's financial health. She also noted that she is currently working with BDO PHA Finance to finalize the 2024 financials in preparation for the upcoming audit.

Vice Chairwoman Dalrymple raised a question regarding the Sigma-Cogent Solutions, LLC contract for outsourced human resources services. She calculated the total cost of the contract and expressed concern about the expense, noting that while she understands the value consultants bring, the amount seemed excessive. She suggested that the agency should consider hiring an internal HR professional to reduce long-term costs. In response, Ms. Kauba stated that the agency would continue with the existing contract until its term concludes and all contracted services are fulfilled, unless directed otherwise by the CEO, Dr. Threatt.

The discussion then shifted to financial oversight and internal controls. Vice Chairwoman Dalrymple and Chairwoman Dr. Wicker requested additional documentation on bank account records and access to the SACS financial system. Their request aimed to strengthen the Finance Committee's ability to monitor financial activity and ensure that the SHA Board of Commissioners maintains robust oversight and accountability in line with best practices.

8. Commissioners' Comments:

Chairwoman Dr. Wicker discussed that since the agency's board was decreased from seven to five, the board committees should also be reduced to five, allowing each commissioner to serve on two committees. Although the Roadmap 2030 strategic plan has seven goals, she called for a motion to decrease the board committee to five. Chairwoman Dr. Wicker later called for a vote. Vice Chairwoman Dalrymple made the motion. Commissioner Britton seconded it. All were in favor, and the motion passed unanimously. The board action became Resolution 2025-41.

9. Public Comments:

Mrs. Hope W. White (former SHA Chairwoman) stated her name and address for the record. She recommended that the staff and board take another look at the water meters, especially if staff are struggling to complete work orders and conduct housekeeping inspections. How would they have time to read meters?

She also stated that she wanted to congratulate the SHA team on passing their NSPIRE inspection. Mrs. White said that she wishes there were a Resident Services report for this month to illustrate the great job the agency did for National Night Out (NNO) and highlight all the partners involved.

Mrs. White stated that the agency should get the doorbell working to provide better customer service, noting that it creates a bad impression and that she and Ms. McNeill were outside trying to get in. She also stated that she understands the security measures, but the agency needs to improve its customer service.

Mrs. White recommended that the board keep up with the finances because she did not do a good job with that when she was on the board.

Ms. Latora McNeill (HCV/FSS Participant) stated her name, address, and the programs from which she receives services with the SHA for the record. Ms. McNeill noted that she was upset about how she was treated as a participant on the HCV/ FSS program. She also discussed how she felt when individuals did not do their job correctly.

Ms. McNeill stated that she wanted to graduate from the FSS program but was told by staff she could not, which she felt was not right. She wanted to buy a house with her voucher. Ms. McNeill stated that she could see how there were so many issues with the agency after sitting through the meeting and hearing about the large sums of debt that had been incurred.

10. Closed Session (If needed): None

11. Adjournment:

Chairwoman Dr. Wicker called for a motion to adjourn the regular meeting. Vice Chairwoman Dalrymple made the motion. Commissioner Britton seconded the motion. All were in favor, and the motion passed unanimously. The regular session returns at 8:04 p.m.

Minutes prepared by Dr. Michael C. Threatt, Secretary

Approved:

Dr. Karen Wicker, Chairwoman
Dr. Michael C. Threatt, Secretary