SHA June 30, 2025 Board of Commissioners Meeting Minutes

MINUTES
REGULAR MEETING OF THE
BOARD OF COMMISSIONERS OF THE
SANFORD HOUSING AUTHORITY
MONDAY, JUNE 30, 2025, AT 6:00 P.M.
DENNIS A. WICKER CIVIC & CONFERENCE CENTER
1801 NASH STREET, SANFORD, NC 27330

The regular meeting of the members of the Sanford Housing Authority Board of Commissioners was held at the Dennis A. Wicker Civic & Conference Center, located at 1801 Nash St, Sanford, NC 27330, on Monday, June 30, 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 6:00 p.m. by Chairwoman White on roll call. The following members were present:

Present

Chairwoman Hope White
Vice Chairman William Newby
Commissioner Jacquelyn Dalrymple
Commissioner Diane Sinnamon
Commissioner Dr. Karen Wicker (virtual)

Absent

Commissioner Holly Aeschliman
Commissioner Erin Britton

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, Asset Manager
Tonya Davis-Buie, Asset Manager
Christina Barrow, Interim Lead Resident Services Coordinator
Jeffrey Gorley, Lease Enforcement Safety Coordinator

Special Guest

Sergio Gonzalez, Auditor
Mr. Jake Bastoni, BDO, Fee Accountant
Crystal Williams, New Board Commissioner

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

3. Approval of Minutes: Vice Chairman Newby made a motion to approve the minutes with a week exception for any changes to be submitted by Chairwoman White and the Board for the minutes from the May 2025 regular meeting. Commissioner Dalrymple seconded the motion. All were in favor; the motion passed unanimously.

4. Old Business: N/A

5. New Business:

A. Resolution 2025-29: Approval of FYE2023 Audit for the Sanford Housing Authority:

Presentation by Auditor Sergio Gonzalez

Auditor Sergio Gonzalez expressed appreciation to Dr. Michael Threatt, Deborah, and Jake from BDO for their
instrumental support in completing the FYE2023 audit. He acknowledged the challenges faced during the process,
which included:

Management transitions
Staff turnover
Flooding in the administrative building led to the loss of critical records

These factors extended the audit timeline from the standard 6 months to 18 months.

Mr. Gonzalez reviewed the financial statements and clarified that financial reporting involves estimates, such as depreciation and allowances for uncollectible receivables. He noted that no new financial policies were adopted during the audit period.

Despite the challenges, the audit was completed successfully. There was one uncorrected misstatement deemed immaterial and one significant material adjustment of $200,000 related to Developer Fees, which was recorded appropriately. Notably, there were no disagreements with management regarding audit findings.

Audit Opinion
Mr. Gonzalez confirmed that, in the opinion of the auditors, the financial statements present fairly, in all material respects, the financial position of the Sanford Housing Authority. This means the statements are reliable and no material adjustments are required.

Key Financial Highlights

Statement of Net Position:
- Two columns are presented: the Discrete Component Unit (Matthews, Quartz, Garden-Gilmer) and the Primary Government (Sanford Housing Authority).
- The Discrete Component Units are not fully controlled by SHA.
- Total assets, deferred outflows, and liabilities for 2023 are comparable to 2022.
- A net position decrease of $100,000 indicates expenses exceeded revenues.
Statement of Revenues, Expenses, and Changes in Fund Net Position:
- 2023 showed a loss of $80,000, significantly improved from the $1.4 million loss in 2022.
- However, the auditor cautioned that fund depletion is ongoing, resulting in insufficient cash to cover certain expenses, creating tension between SHA and HUD.

Audit Findings

2023-001: Late REAC filing and OMB collection form submission, violating Single Audit Act requirements.
2023-002: Public Housing Fund Program - Inability to verify proper procurement due to flood-damaged documentation.
2023-003: Capital Fund Program - Contract lacked required prevailing wage language and supporting documentation.
2023-004: Unauthorized fund transfer from Public Housing to COCC, violating HUD regulations. Dr. Threatt provided a detailed corrective action plan (Pages 61-64). The federal awards summary is on Page 65, totaling $1.7 million.

Management Letter Comments (Areas for Improvement)

MC 2023-001: HCV Tenant File Testing - Errors found; corrective action recommended.
MC 2023-002: Cash Disbursement Testing - Missing documentation due to flooding; recommendation to digitize records and train staff on retention protocols.
MC 2023-003: Disbursement of Checks - ACH transactions recorded incorrectly; recommendation to treat such transactions as accounts payable.
MC 2023-004: FSS Escrow Funds - Insufficient cash to cover escrow liabilities; recommendation to allocate sufficient funds to meet regulatory compliance.

Chairwoman White called for a motion to approve the FYE2023 Audit. Commissioner Dalrymple moved to approve the audit as presented, acknowledging the findings and recommendations. Vice Chairman Newby seconded the motion. The motion passed unanimously. At the end of the motion, Chairwoman White stated that she believed the auditors and Dr. Threatt let the team off easy due to the agency's past financial failures.

B. Resolution 2025-30: Approval of Family Self-Sufficiency (FSS) Program Action Plan Revision

Chairwoman White called for the motion. Vice Chairman Newby made the motion to approve Resolution 2025-30 to approve the revision of the Family Self-Sufficiency (FSS) Program Action Plan, which aligns with updated HUD guidelines and enhances program effectiveness. Commissioner Dalrymple seconded it. All were in favor, and the motion passed unanimously.

C. Resolution 2025-31: Approval of Board of Commissioners Handbook

Chairwoman White called for the motion. Commissioner Dalrymple made a motion to approve Resolution 2025-32, the approval of the Board of Commissioners Handbook, a comprehensive guide designed to support commissioners in understanding governance principles, board roles and responsibilities, and operational procedures. Commissioner Dr. Wicker seconded the motion. The motion passed unanimously.

Chairwoman White shared insights into the collaborative effort between herself and Dr. Threatt in developing the handbook. She emphasized its importance in equipping commissioners with the knowledge needed to fulfill their duties effectively and ethically.

She proposed that commissioners receive formal training from both the Authority's legal counsel and HUD to deepen their understanding of governance boundaries and compliance expectations.

Chairwoman White clarified several key governance principles:

The Board's sole hiring and termination authority pertains to the CEO.
Commissioners should not interfere with day-to-day operations.
Board members must not seek preferential treatment for individuals or intervene in staff decisions.
Confidentiality is paramount: Discussions held in closed session must remain within the board.
All legal matters should be directed to the Authority's attorney, Ms. Shirai Banks.
Commissioners are expected to possess a copy of Robert's Rules of Order and must take an oath of office with both the City of Sanford and the Sanford Housing Authority.

Chairwoman White reiterated her commitment to setting the board up for success by ensuring transparency, accountability, and access to essential resources. Commissioner Dalrymple expressed strong support for the handbook and recommended future enhancements, including:

Professionally bound copies
Page numbering
Consistent font usage
A detailed table of contents and appendices are placed at the front

D. Resolution 2025-32: Approval to Utilize the Central Carolina Housing Solutions Name as the Name for the Property Management Instrumentality of the Sanford Housing Authority

Chairwoman White called for a motion to formally adopt the name "Central Carolina Housing Solutions" as the official property management affiliate of the Sanford Housing Authority.

Vice Chairman Newby made the motion to approve the use of the name. Commissioner Dr. Wicker seconded the motion. The motion passed unanimously.

It was clarified that while the Board had previously voted on the creation of the name but that the name will be used for the property management instrumentality, this vote specifically authorizes the operational use of the name Central Carolina Housing Solutions as the designated instrumentality for property management functions under SHA.

E. Resolution 2025-33: Approval of Administrative Plan Update for HOTMA Sections 102 and 104

Chairwoman White called for a motion to approve the updates to the Administrative Plan to incorporate the requirements of HOTMA (Housing Opportunity Through Modernization Act) Sections 102 and 104, ensuring compliance with HUD regulations.

Commissioner Dalrymple made the motion. Vice Chairman Newby seconded it. The motion passed unanimously.

Dr. Michael Threatt explained that although staff had initial uncertainty about the implementation timeline, HUD has confirmed that the updates are due by July 1, 2025, with flexibility to fully implement by January 1, 2026. HOTMA, originally enacted in 2016-2017, introduces significant changes to income evaluations, waiting list management, and other eligibility criteria.

Dr. Threatt emphasized that these updates will simplify program administration for staff, residents, landlords, and other stakeholders. He noted that Ms. Bennett is actively working on revising the Administrative Plan and that the Board will receive the updated version once finalized.

Ms. Bennett shared insights from recent HUD training, highlighting several key changes:

Adjustments to how the Authority calculates its portion of the housing subsidy
Revised treatment of disability income
Updated asset limits for resident eligibility
She acknowledged that the training revealed gaps in current practices and provided valuable information to improve compliance.

Chairwoman White recommended engaging a third-party compliance reviewer on a quarterly basis to ensure file accuracy and adherence to HUD policies. While management currently uses checklists and internal reviews, she stressed the importance of comprehensive training and external oversight to eliminate confusion, especially around income calculations and historical HUD guidance.

Dr. Threatt supported the idea but requested a grace period for staff to absorb the new policies and procedures. He proposed revisiting the third-party review discussion after the team has had time to implement the changes and assemble the necessary documentation.

Commissioner Dalrymple requested examples of how the updates would affect residents, particularly those on fixed incomes. Dr. Threatt provided relevant examples and addressed additional questions from Commissioner Dalrymple.

Chairwoman White also recommended maintaining both paper and electronic copies of resident files to ensure redundancy and data security. The Board unanimously agreed with this approach.

Further discussion addressed certification procedures, including scenarios where residents may or may not require annual recertification, depending on income stability and program guidelines.

6. CEO Report

A. Utility Bill Responsibility Postponement Until October 2025 Letter Update:

Dr. Threatt provided an update regarding the postponement of transferring utility bill responsibility to residents. Residents will receive formal letters granting them an extended 180-day notice period (an additional 90 days) before water bills are placed in their names.

Due to fiscal constraints and inspection delays, the Authority was unable to proceed with the water transfer as originally planned. As an interim solution, Capital Fund Program (CFP) resources will be used to cover water expenses until all logistical and compliance issues are resolved.

To prevent financial hardship for residents, rent amounts will be adjusted downward to offset the added utility cost. Chairwoman White emphasized the importance of communicating to residents that this change is cost-neutral - they will not pay more overall, but will assume direct responsibility for water usage.

She also encouraged residents to adopt water-saving practices and consider tools such as leak-detection devices or usage monitors to avoid excessive bills. The Authority plans to install individual water meters for each unit in the future and will conduct a Utility Allowance Study to ensure fair and accurate adjustments.

B. Michael Consulting Group: SHA Procurement Assessment and Recommendation Report:

Dr. Threatt presented highlights from the Procurement Assessment Report conducted by the Michael Consulting Group. The report outlines best practices for procurement, process management, and contract oversight, and identifies areas where SHA must strengthen compliance and transparency.

He noted that the findings align with his initial internal audit upon assuming leadership. The goal is to ensure that procurement procedures are followed consistently, that vendor opportunities are equitable, and that SHA remains in full compliance with HUD and federal guidelines.

The Authority will publish the procurement improvement plan on its official website and in the Sanford Herald to promote transparency and community awareness.

C. Tikler Streamlining Document Workflow & Compliance Intelligence Proposal:

Due to time constraints and the significance of this being the final Board meeting for the current Chair and Vice Chair, Dr. Threatt did not present the Tikler Proposal. The proposal and presentation focused on enhancing document workflow and compliance tracking, which would help to address the challenges experienced in the audit findings and procurement reports.

D. June 2025 HUD Troubled Board Report:

Dr. Threatt shared progress updates from the HUD Troubled Board Report:

Occupancy rates are improving across developments.
Inspire Inspections were completed for four properties in the past month.
Premier Contracting addressed over 4,000 health, safety, emergency, and load monitoring items, with one month remaining to finalize outstanding tasks.
The FYE2023 audit was completed, resulting in the release of HUD funds.
A new Lease Coordinator, Mr. Boyle, has joined the team.
A new Public Housing policy has been implemented.

Challenges remain, including:

Financial issues identified during the audit
Delays in completing technology upgrades
A postponed website launch, now expected in Fall 2025

7. Department Reports:

A. Asset Management Report:

Public Housing and Maintenance Reports: Ms. Davis-Buie presented the Low-Income Family Housing (LUFH) and Maintenance Reports. Chairwoman White inquired about the frequency of unit inspections. Dr. Threatt clarified that inspections should be conducted monthly, especially in light of findings from recent pre- and post-NSPIRE inspections. He emphasized the importance of coordinating pest control services with monthly inspections to ensure consistent property upkeep.

Dr. Threatt also shared that the Authority is in the process of hiring an Assistant Asset Manager to support property oversight and compliance.

Chairwoman White asked whether residents can currently pay rent online. Dr. Threatt confirmed that this feature is nearing launch and will be available through the Authority's new housing software platform, Reframe, which includes online rent payment capabilities.

Regarding outstanding work orders, Dr. Threatt explained that many are tied to NSPIRE-related repairs and will be reflected as completed in the next reporting cycle. The backlog was due to limited staffing and the need to engage a third-party maintenance contractor to assist with repairs and prepare for the upcoming official HUD NSPIRE inspection.

RAD PBV (LIHTC)/PBV and Maintenance Reports: Ms. Tilghman presented the maintenance reports for Matthews Garden-Gilmer (MGG) and 226 Linden developments. She highlighted emergency work orders, particularly those involving smoke detector issues, and confirmed that these are being addressed promptly to ensure resident safety.

Community Safety Report: Mr. Jeffrey Gorley, Community Safety Coordinator, introduced himself and provided an overview of his initial efforts. He shared that he has reached out to local law enforcement agencies, including the Sanford Police Department and Lee County Sheriff's Office, to build collaborative relationships. While initial conversations were positive, follow-up engagement has been limited.

As part of his 90-day safety plan, Mr. Gorley is implementing office safety protocols for staff and conducting on-site safety assessments across SHA properties. He noted concerns regarding non-functioning streetlights at specific complexes, which pose safety risks and are being addressed.

Mr. Gorley is also engaging residents through community meet-and-greet events and resident safety meetings to promote awareness and gather feedback. Chairwoman White acknowledged his efforts and highlighted additional safety concerns, including the removal of abandoned vehicles and the management of loose animals on properties.

When asked if he had encountered any alarming safety issues, Mr. Gorley confirmed that no major threats have been identified at this time.

B. Rental Assistance Report:

Housing Choice Voucher (HCV) Program Report: Ms. Bennett provided a detailed overview of the HCV Program, highlighting persistent issues with income and rent calculation errors that have spanned multiple years. She addressed challenges in fraud detection, audit findings, and supervisory oversight, particularly in the areas of quality control and file review. Ms. Bennett also noted deficiencies in staff training and software utilization, emphasizing that unreported income from residents remains a significant compliance risk.

Ms. Danielle Tilghman reinforced the concern, stating that unreported income has led to discrepancies in HUD reporting and continues to pose a threat to program integrity.

Chairwoman White inquired about the file review checklist and the agency's plan to resolve historical calculation issues. Ms. Bennett responded that she and Ms. Tilghman will conduct a comprehensive A-Z review of all files. She assured the Board that corrective measures are underway and that such issues will not persist under her leadership.

Chairwoman White requested quarterly quality control (QC) reports to monitor miscalculations, file reviews, and audit findings. Ms. Bennett confirmed that the file review and audit procedures will be revamped once her team is fully assembled and trained.

Vice Chairman Newby asked for a realistic timeline for implementing the QC reporting. Ms. Bennett referenced HUD best practices and noted that when Dr. Threatt joined SHA, over $500,000 in unreported income had not been addressed. This issue began to be resolved under his leadership.

Dr. Threatt discussed challenges with SEMAP self-assessment indicators, particularly Indicator #3 (Adjusting Monthly Income), which carries a weight of 20 points. He emphasized the need for monthly self-assessments, PIC error reporting, and data-driven decision making. He also highlighted outdated housing policies from 2017 and 2019, and requested Board approval to update policies and procedures with a new framework by Q4 (October 2025).

Chairwoman White recommended best practices for verifying Social Security benefits. She emphasized the importance of leadership accountability, noting that previous administrations claimed QC processes were completed, despite evidence to the contrary. Vice Chairman Newby reiterated the need for a clear timeline for QC reporting and policy updates.

Dr. Threatt concluded by advocating for transparency, data integrity, and timely corrective action, stressing the importance of addressing SEMAP indicators, fair housing compliance, and sustainable quality control under the current leadership team.

C. Resident Services Report:

Ms. Barrow reported that the utility responsibility transition has been extended to October 2025 due to inspection and compliance delays. She acknowledged resident frustration over the postponement.

Ms. Barrow introduced Mr. TyShawn McSwain, the new Resident Services Coordinator, who is assisting with case management and public services. The team is also updating MOUs and MOAs with partner organizations. There was discussion about the SHA representation at the PAC Committee Meetings, with a proposal for quarterly participation. Ms. Barrow provided a Q3 update on the 90-Day Plan, including efforts to improve access to Matthews Court, laundromat hours, and resident engagement. 10

Chairwoman White suggested adjusting meeting times to better accommodate working residents. The Resident Services team has revamped the online needs assessment form to gather more accurate resident feedback.
Ms. Barrow also discussed:

TAG training workshops
- Collaboration with Mr. Gorley to reactivate the Resident Council
- Planning for National Night Out on August 5, with selected sites for community engagement
- Progress on the Homeownership Action Plan, with an estimated completion timeline of 1-2 months

D. Development Report:

Dr. Threatt shared appraisal results for key properties:

Stewart Manor: Valued at $3,670,000 as is.
Administrative Building (1000 Carthage): Valued at $752,000 as is.

He discussed environmental concerns, including lead in paint and bricks, which must be remediated prior to demolition. These findings will inform the recommendation to rehabilitate the Administrative Building.

E. Human Resources Report:

Dr. Threatt announced new staff additions:

Jeffrey Gorley - Lease Enforcement Safety Coordinator
TyShawn McSwain - Resident Services Coordinator
Oneida Del Real - Assistant Asset Manager

He confirmed that open enrollment has been completed and that SHA is working with Nelrod to initiate the salary study previously discussed.

Staff development initiatives include:

Participation in Nan McKay & Associates Industrial Training for Management
Plans to launch the Leadership Academy in Q4
A comprehensive performance evaluation analysis for all job descriptions

F. Public Relations Report:

Dr. Threatt unveiled the new SHA logo, inspired by Sanford's identity as the brick capital.

The rebranding includes:

A new PowerPoint presentation template
Updated Central Carolina Strategic Developers (CCSD) logo for brand consistency

Efforts are underway to increase resident awareness through events and a resident newsletter, aimed at rebuilding trust.

Dr. Threatt also discussed expanding SHA's social media presence, including TikTok, Facebook, and Instagram, to reach residents across generations and improve community engagement.

Commissioner Dr. Wicker and Commissioner Dalrymple jokingly experienced the smile that they saw on Dr. Threatt's face and enthusiasm for the social media presence, newsletter, and other rebranding efforts.

G. Financial Report:

Ms. Kauba delivered the financial report, outlining the agency's current financial position. She detailed which obligations have been paid and which remain outstanding.

She and Chairwoman White discussed the pending release of Capital Fund Program (CFP) allocations for FY2024 and FY2025, contingent upon audit completion. They also noted that public housing shortfall funds were recaptured due to the previous administration's failure to draw down the funds.

8. Board Elections:

Chairwoman opened up the nominations for Chair and for Vice Chair. Chairwoman White nominated Dr. Whicker for Chair and Ms. Dalrymple for Vice Chair. There were no other nominations. The board voted unanimously on the nominations for the Chair and Vice Chair.

9. Commissioners' Comments:

Newly appointed Commissioner Williams was introduced by Chairwoman White, and she stood and introduced herself. The other Board Commissioners and the staff thanked Chairwoman White and Vice Chairman Newby for their service to the board over the years.

10. Public Comments: Ms. Kauba and Dr. Threatt

11. Closed Session (If needed): N/A

12. Adjournment: Chairwoman White requested a motion to adjourn the regular meeting. 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 8:40 p.m.

Minutes prepared by Dr. Michael C. Threatt, Secretary

Approved:

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