SHA January 27, 2025 Board of Commissioners Meeting Minutes

MINUTES
REGULAR MEETING OF THE
BOARD OF COMMISSIONERS OF THE
SANFORD HOUSING AUTHORITY
MONDAY, JANUARY 27, 2025, AT 6:00 P.M.
317 CHATHAM ST. SANFORD NC 27330

The meeting of the members of the Sanford Housing Authority Board of Commissioners was held at 317 Chatham Street, Sanford, NC 27330, on Monday, January 27, 2025, at 6:00 p.m. in the central office conference room.

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

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

Chairperson Hope White
Vice Chairperson William Newby
Commissioner Holly Aeschliman
Commissioner Dianne Sinnamon
Commissioner Jackie Dalrymple
Commissioner Dr. Karen Wicker

Absent

Commissioner Erin Britton

SHA Staff Present

Dr. Michael C. Threatt, Chief Executive Officer
Mr. Jeffrey Blackwell, Chief Financial Officer
Ms. Sherri Campanale, Chief Operations Officer
Ms. Anesha Pittman, HR Generalist
Mr. Patrick Crook, Property Manager
Ms. Danielle Tilghman, Property Manager
Ms. Renate Bennett, Housing Choice Voucher Specialist
Ms. Tamesia Wright, Resident Services Specialist
Ms. Sarah Hudson, Executive Assistant to the CEO/ Communications Coordinator

Public Comments: None

Adoption of the Agenda: A motion was made to adopt the agenda and was properly seconded by
a with a unanimous vote to approve the January regular board meeting agenda.

Minutes: Ms. Dalrymple made a motion to approve the Regular Board Meeting Minutes for December
16, 2024. All were in favor, and the motion passed unanimously.

Old Business: None

New Business:

Resolution 2025-01: Bylaws Revised Regarding Standing Committees: Mr. Newby motioned to revise bylaws of the Board of Commissioners to change standing Board committees to: Development, Finance, Housing, Resident Services, Human Resources, Strategic Planning, and Public Relations. Ms. Dalrymple seconded the motion; all were in favor. The motion passed unanimously.
Resolution 2025-02: HUD Recovery Agreement Between HUD and SHA Approved: Mr. Newby motioned to approve the HUD Recovery Agreement, which includes performance requirements in Monthly Progress Reports, Assessment Performance Improvement, Increased Occupancy, Physical Condition of Dwelling Units Improvement, and Financial Performance Improvement. The Board requested that the required monthly reporting of the information requested by HUD be included as part of SHA staff's performance based evaluations. Ms. Dalrymple seconded the motion; all were in favor. The motion passed unanimously.
Resolution to Revise Personnel Manual Regarding Work from Home (WFH) Policy to be Revisited: Ms. Aeschliman motioned to revise the personnel manual to include the Work from Home policy. Ms. Dalrymple seconded the motion; none were in favor. The motion did not pass.
- The Board discussed potential issues related to hardware, cybersecurity/privacy, and staff accountability. Ms. Sinnamon motioned to table the revision regarding the Work from Home policy, with the stipulation that a future resolution is updated to include cybersecurity/privacy and staff capability assurances. Mr. Newby seconded the motion. The motion passed unanimously.

CEO Report:

Third-Party Management Company RFP Update: Dr. Threatt highlighted that the SHA staff's committee met on January 13th, 2025, has received scoring sheets, and will submit their scoring sheets on February 14th. Then, the Housing and Finance Committee will review the decision reflected in the scoring, and a resolution will be brought before the board for approval. If approved, SHA would then move forward with attorneys to execute the contract.

Phone System, Website, and Security Camera System Update: Dr. Threatt highlighted that SHA staff intends to move forward with a transition to updated technology for staff and residents including Microsoft Teams phone system and messaging, a website update with resident and vendor portals and forms, SHA to resident text message alert service, social media re-brand and audience growth, updated compliant security cameras on SHA properties, and more. The Board requested an update on the status of current security cameras' operability and any outstanding or upcoming expenses related to these by end of business January 31, 2025.

Rental Space Update: Dr. Threatt affirmed that SHA is currently leasing its Administrative Building property at 317 Chatham Street, month-to-month, citing concerns related to the maintenance of the current property. Dr. Threatt highlighted that he has explored an option to move SHA offices to a property on First Street; however, the expense to rehabilitate the property there is less favorable than rehabilitation of the 1000 Carthage Street property. Dr. Threatt affirmed that he plans to acquire an appraisal for the 1000 Carthage Street property and secure financing for the rehabilitation of that property in order to move SHA's administrative offices there.

Q2 Staff Retreat and Resident Meeting Update: Dr. Threatt highlighted the plan to hold an SHA staff training retreat in February. The Board discussed concerns related to the planned length of the retreat, citing the length of time which SHA offices would need to be closed - three days. The Board requested that Dr. Threatt amend the retreat plans to divide the retreat into multiple half-days. Dr. Threatt also highlighted upcoming plans to introduce more resident meetings and utilize technology to aid in advertising these. The Board discussed automated mass phone calls and text messages, social media and website postings, and the continued use of flyers posted and distributed to residents. Dr. Threatt also highlighted the scheduling of these events and the consideration that will be given moving forward for residents' availability at certain times of day.

Call Center for Maintenance After-hours and Weekend: Dr. Threatt highlighted a new call center answering service that SHA will utilize to aid in ensuring all maintenance calls are answered and responded to in a timely manner, citing the importance of good customer service to residents, decreased liability for SHA, and accountability for SHA staff. The Board expressed concerns about committing to an additional maintenance expense. Dr. Threatt affirmed that another update on the plan will be provided to the Board prior to contract execution and that this service is a needed and standard best practice for SHA's accountable operation.

Third-Party NSPIRE Inspection Assessment & REAC/NSPIRE Training: Dr. Threatt and Ms. Campanale highlighted a planned February inspection and training for SHA maintenance and property management staff at which staff will spend two days of shadowing NSPIRE inspectors as all dwelling units are inspected and an additional one day of training in a classroom setting. Dr. Threatt highlighted the importance of these inspections and training in order to improve performance on upcoming HUD inspections and meet the requirements of the HUD Recovery Plan. The Board requested that copies of each employee's training certificate be added to their personnel file.

Forensic Audit Proposal- Risk Management Insurance Update: Dr. Threatt highlighted his plan to secure a forensic audit of SHA's finances and the ability to finance the audit through renewal of SHA's risk management insurance, with the audit beginning in March or April 2025. The Board requested confirmation of filing the risk management insurance renewal by end of business January 30, 2025.

Operational Assessment for Housing Programs: Dr. Threatt highlighted his in-progress plan to acquire an operational assessment for SHA, affirming that multiple options for assessors are being explored.

Trust Surveys: Dr. Threatt affirmed the completion of trust surveys by SHA staff and the overall findings related to the need to improve staff training and trust in SHA leadership. Dr. Threatt highlighted his plan to meet with staff in order to communicate the results of the survey and the steps planned to improve training, internal information-sharing, and more.

Department Reports:

Public Housing and Maintenance Reports: Chairwoman White discussed issues with the reported information regarding uncollected rent amounts and requested clear information related to profit loss be included in the next month's report, such as listings of outstanding rent amounts in repayment or under eviction.

RAD PBV/LIHTC and Maintenance Reports: Chairwoman White highlighted the high number of vacancies at these properties. Ms. Tilghman cited issues related to SHA's outstanding balances with local utility companies and that, therefore, starting services for utilities at ready units have recently been denied. Ms. Pittman highlighted that there are many accounts outside of the Master Accounts at each utility which need to be consolidated under the Master Accounts. Regarding vacancies, Ms. Tilghman also cited the lack of access to supplies needed to make units ready, in addition to maintenance staffing shortages. The Board and SHA staff discussed the current process for receiving and processing invoices, in addition to the overall process for reporting SHA's outstanding balances. Chairwoman White requested that incoming invoices and mail follow an internal control policy. Ms. Campanale affirmed that a control policy for invoices was put in place in the last week which requires mail and invoices to be distributed to Department Heads, supporting documents attached by Department Heads, and the invoice and documents submitted to the Finance Department within 48 hours. Mr. Newby requested that the SHA staff identify areas of inefficiency and other potential areas from which funds can be shifted to resolve outstanding balances, and Chairwoman White requested an update on when this can be resolved.

Housing Choice Voucher (HCV) Program Report: The report was going to be given by Ms. Campanale, but for the sake of time, it was not, and the board did not have any issues with not providing an update.

Resident Services Report: The Board highlighted the inclusion of events which are not formally in partnership with SHA but are included on the SHA Events Calendar and requested that only SHA-affiliated and SHA-staffed events be included in future calendars. Chairwoman White requested that the Board be sent the updated Events Calendar for each month so that they may attend the events when possible. Ms. Wright also affirmed that registration will be required for virtual events, and email invitations with access to join the event will be sent to those who register. Ms. Wright highlighted a partnership with Life Springs Dream Center which is being explored and may provide transportation for residents as needed to SHA events. Chairwoman White requested that SHA staff obtain consent prior to posting or using any photos taken at events, in addition to making this a requirement of any upcoming partnership agreements. Ms. Wright also highlighted the Resident Services department's plan to acquire new case management software, including a recent tutorial of the Social Bridge software. Ms. Wright also highlighted the Resident Services department's plan to evaluate the cases of residents with significant income in order to approach them with potential Homeownership opportunities. The Board requested that the Resident Services department contact DSS and work to develop a partnership in order to aid in providing housekeeping assistance to those who are impaired.

Development Report: Dr. Threatt highlighted the upcoming Physical Needs Assessments of all SHA properties that will be completed over the next 1-2 months and results submitted to HUD. Dr. Threatt affirmed that once the assessments are completed, the Board and SHA staff will be able to determine whether a demolition or rehabilitation of each property is needed and what development funds may become available as a result of those decisions.

Chairwoman White's Open Board Meeting Disclosure: During Dr. Threatt's Development Committee Report, Chairwoman White disclosed that her mother is a long-time landlord in SHA's voucher program and intends to list her properties again with the program. She clarified that she does not receive any money, tax benefits, or proceeds from her mother. Chairwoman White emphasized her intention to be transparent and ensure this information is part of the official record.

Human Resources Report: Ms. Pittman highlighted hires since December 2024 on the SHA Staff including a Resident Services Specialist, Executive Assistant to the CEO/ Communications Coordinator, and two Housing Choice Voucher Specialists. Ms. Pittman affirmed that interviews are being conducted for a Housing Choice Voucher Manager and a Financial Controller role. Ms. Pittman also affirmed the upcoming transition of financial accounting responsibilities from the Human Resources department back to the Finance department, once the Controller is hired. Ms. Pittman highlighted her plan to re-onboard the entire SHA staff, utilizing HAI Group software and learning modules. The Board discussed the expense of purchasing the training software and modules, and Ms. Pittman affirmed that all training modules currently selected are included in a paid annual plan that SHA has purchased. The Board discussed tracking SHA staff's completion of training modules and requested that each certificate of completion be printed and added to each employee's personnel file as they are completed. The Board discussed successful training completion grading and requirements, and requested that the requirement to pass each training be raised from a test score of 70 percent to 80 percent. The SHA staff and Board also discussed the need for dedicated time to complete trainings and recommended that this be discussed further with Dr. Threatt. Ms. Pittman also highlighted that a leadership academy program has been discussed with Dr. Threatt, and details regarding that training will become available soon. Ms. Pittman also highlighted the ongoing effort by herself and Dr. Threatt to update job descriptions so that they are aligned with performance evaluations. Commissioner Dalrymple requested confirmation that all SHA staff have read and signed the Personnel Policy and their individual Job Descriptions. Ms. Pittman affirmed that all new hires receive specific personnel policies and their job descriptions, which the new hire then signs, and Ms. Pittman then confirms are signed. Ms. Tilghman raised a concern regarding Paid Time Off, citing a recent change which has changed the number of Paid Time Off days accrued per month or per pay period from two days to one day. Chairwoman White affirmed that she would discuss this issue further with Dr. Threatt to ensure that SHA staff accrues the correct number of Paid Time Off days per pay period.

Financial Report: Mr. Blackwell highlighted concerns related to constricted cash flow and uncollected receivables for SHA, citing collection records from November 2024 and December 2024 which show a high number of rent and other charges for which money has not been collected from residents, in addition to monthly expenses for vacant units and vacant properties which may or may not bring in nominal revenue, such as Stewart Manor. The Board raised concerns regarding the accuracy of the reporting and the need to review the numbers further, as the report did not clarify some factors and methods of collection, such as subsidies provided for offline units and residents in arrears. Mr. Blackwell affirmed that there is a need to investigate further whether the data in SHA's financial operating system is accurate. Ms. Campanale confirmed that SHA staff plans to hold monthly meetings with Property Managers and the Finance department, beginning in February. Chairwoman White requested invoices and copies of checks paid to Eagle Rock, LLC. Mr. Blackwell affirmed that Eagle Rock, LLC, along with other vendors have been paid, in some cases, months late, citing constricted cash flows in addition to unexpected expenses due to missing data related to accounts receivable for FY2023-2024. The Board discussed whether the FY2022-2023 Audited Financial Statement has been completed, citing HUD's Recovery Agreement requirement that this be submitted in February. Mr. Blackwell affirmed that the audit is in progress and most of the documents requested by the auditors have been submitted. The Board also highlighted a recent report that states the Water Utility company has not been paid since November of 2024 and requested that the Finance department prioritize current utility payments. The Board raised the question of what additional outstanding balances exist, and Mr. Blackwell affirmed that he does not know. Chairwoman White requested that Mr. Blackwell submit in writing to Dr. Threatt a list of what is needed to aid Mr. Blackwell in determining all current expenses, all current contracts, and any balances owed by end of business January 30th, 2025. The Board raised the question of whether SHA staff is keeping track of maintenance supplies inventory. Ms. Campanale affirmed that SHA staff recently began documenting inventory in a digital tracking system.

Closed Session: Ms. Sinnamon made the motion to go into closed session at 8:43 p.m.; Dr. Wicker
seconded the motion. All were in favor; the motion passed unanimously.

Ms. Aeschliman made the motion to go end closed session at 8:57 p.m. Dr. Wicker seconded the motion to end the closed session and return to the regular board session with a unanimous vote.

Adjournment
Ms. Aeschliman made the motion to adjourn the regular meeting for the Board of Commissioners for Sanford Housing Authority. Dr. Wicker seconded the motion. All were in favor; the motion passed unanimously.

Minutes prepared by Sarah Hudson

Approved:

Hope W. White, Chairwoman, SHA Board of Commissioners
Dr. Michael C. Threatt, Secretary