SHA May 27, 2025 Board of Commissioners Meeting Minutes

MINUTES
REGULAR MEETING OF THE
BOARD OF COMMISSIONERS OF THE
SANFORD HOUSING AUTHORITY
TUESDAY, MAY 27, 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 Tuesday, May 27, 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
Commissioner Erin Britton

Absent

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
Tonya Buie-Davis, Asset Manager
Margaret Hawkings, Executive Operations Manager

Public Present

Ms. Sherri Campanale, former SHA Employee, Director of Operations

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. All were in favor, and the motion passed unanimously.

4. Old Business: N/A

5. New Business:

A. Resolution 2025-28: Resolution to Approve Sanford Housing Authority's Chief Executive Officer's TwoYear Contract term from June 1, 2025, to May 30, 2027, for Dr. Michael C. Threatt: Chairwoman White called for a motion. Commissioner Dalrymple made the motion. Commissioner Dr. Wicker seconded it. All were in favor, and the motion passed unanimously.

6. CEO Report:

A. EnCompliance Consulting: Executive Summary LIPH, HCV, & FSS Technical Analysis: Dr. Threatt provided an overview of the technical analysis conducted by EnCompliance Consulting, which evaluated the agency's performance across three key program areas: Low-Income Public Housing (LIPH), the Housing Choice Voucher (HCV) program, and the Family Self-Sufficiency (FSS) program.

He highlighted several operational and compliance challenges identified during the review. In particular, he shared an example from the FSS program involving a participant who requested her escrow disbursement despite not having completed her Individual Training and Services Plan (ITSP) goals. In this case, he noted, it is not an isolated incident-there are multiple participants in similar situations, underscoring the need for stronger case management and program oversight.

Dr. Threatt emphasized that while the agency has long been aware of issues within the public housing program, the HCV program-often perceived as high-performing-was found to be lacking in several key areas. According to the objective, third-party analysis of SHA's Section Eight Management Assessment Program (SEMAP) indicators, the HCV program does not currently meet the standards of a true high performer.

He concluded by stating that the findings from EnCompliance provide a clear, data-driven roadmap for improvement and accountability across all three programs.

B. City of Sanford Resolution & Decision to Reduce the SHA Board of Commissioners: Dr. Threatt informed the Board of the City of Sanford's decision to reduce the Sanford Housing Authority (SHA) Board of Commissioners from seven to five members, effective July 1, 2025. He expressed that he was blindsided by the announcement, which came via an email from City Manager Hal Hegwer. Dr. Threatt read the resolution aloud and shared related correspondence, noting that all current commissioners would be required to reapply for their positions. He had previously sent an email to the Board alerting them that formal letters would be arriving by mail.

Dr. Wicker noted that SHA board vacancies were not listed on the city's website. Councilman and SHA Liaison Walter Ferguson responded that the vacancies should be posted, as Vice Chairman Newby had already submitted his application.

Commissioner Dalrymple asked whether Dr. Threatt had been consulted about the board reduction. Dr. Threatt confirmed that he had not been approached by Councilman Ferguson, other City Council members, or Mayor Salmon. However, he had sent the Mayor the Board's attendance records. Councilman Ferguson explained that the decision was based on a precedent set in 2014. Commissioner Dalrymple expressed concern that the new CEO had not been informed in advance of the meeting.

Chairwoman White provided historical context, explaining that the board had previously expanded from five to seven members at the request of former CEO Ms. Shannon Judd, who cited the need for increased capacity. Dr. Threatt emphasized that best practices recommend consulting the CEO and Board Chair on board composition to ensure alignment with organizational needs and skill gaps. Dr. Threatt stressed the importance of transparency, ethics, the oath of office, specialized skill sets, and community-focused leadership in board appointments.

Dr. Threatt also noted that Commissioner Dianne Sinnamon, the resident commissioner, did not receive a letter. Councilman Ferguson explained this was due to her resident status. Dr. Threatt clarified that HUD requires resident commissioners to be treated equally, a sentiment echoed by Chairwoman White.

Vice Chairman Newby expressed frustration that while many matters are communicated to the Board, the reapplication requirement was not. Interim Director of Rental Assistance and Resident Services, Ms. Renate Bennett, inquired whether the city's bylaws aligned with those of SHA. Councilman Ferguson committed to reviewing the matter with the city attorney and sharing the relevant documents with the SHA board and staff.

Dr. Threatt questioned the rationale behind the board reduction, especially given the area's demographic growth. Commissioner Dalrymple referenced a statement from Councilman Ferguson regarding the changes promoted by the Mayor, indicating that the board would be reduced due to 75% and 50% attendance metrics. Councilman Ferguson invited board members to email him with questions about the board reduction and concerns regarding the term "efficiency" in the resolution, which refers to improving board oversight and performance, particularly in financial matters, over the past couple of years, as well as under previous administrations.

Vice Chairman Newby clarified that financial decisions are made by the CEO and CFO, not individual board members. He emphasized that the SHA Liaison's role is to support the agency and communicate its needs to the City Council. He expressed concern that the liaison had not fulfilled this role effectively.

Chairwoman White noted that she had not been contacted about the change and recalled that in 2024, the City Council allowed her to remain on the board due to her institutional knowledge. She raised concerns about misinformation regarding unpaid bills and clarified that only the CEO and CFO are authorized to sign checks on behalf of the SHA. She referenced a contractor seeking $25,000 for unit turnaround work. The agency displayed photos of substandard conditions, and Chairwoman White stated, "This is not safe, decent housing, and we are not setting our families up for success."

Councilman Ferguson acknowledged the vendor's outreach and stated that he had not seen the photos but was informed that the invoice had not been paid. He had discussed the matter with Dr. Threatt and attempted to contact Ms. Kauba. He stated that the vendor had sent the information directly to the city, bypassing SHA leadership.

Vice Chairman Newby asked about due diligence and how the work was verified. Councilman Ferguson confirmed he had contacted Dr. Threatt. Commissioner Britton questioned the relevance of vendor payments to the board reduction and speculated whether the change was a pretext to replace the current board. Councilman Ferguson reiterated that all members could reapply and that commissioners serve at the pleasure of the City Council.

Ms. Bennett, who has served since 2022, shared that previous executive staff discouraged transparency and threatened staff with termination for speaking to the board. She stated that property managers were barred from attending meetings, which hindered the board's ability to make informed decisions.

Asset Manager, Ms. Tonya Davis-Buie, confirmed that former CEO Ms. Judd instructed the staff under her leadership not to engage with the board. She urged Councilman Ferguson to relay these concerns to the Mayor. Chairwoman White emphasized that the photos shown represented only one of several problematic units and that such conditions were unacceptable. "We all make mistakes," she said, "but we act in good faith. I have family in public housing-I wouldn't want anyone, not even my worst enemy, to live like that."

Dr. Threatt confirmed that property management had not signed off on the contractor's work. Commissioner Dalrymple expressed frustration that the City had taken the vendor's word without verification. Councilman Ferguson stated that the vendor claimed the work had been completed but had not been paid. He acknowledged that the vendor bypassed SHA leadership and went directly to the city.

C. Updated Utility Letter Template for Resident Utility Responsibility: Dr. Threatt provided an update on the second round of utility responsibility letters currently being distributed to residents. These letters, prepared and sent by Ms. Christina Barrow, Interim Lead Resident Services Coordinator, are part of SHA's continued efforts to clarify resident obligations related to utility payments, specifically for water, sewer, and trash services.

During the internal review, the team identified that the primary billing concerns stemmed from water and waste management services. Dr. Threatt clarified that, at this time, utility costs for residents at Matthews Court and 226 Linden Avenue will continue to be covered by SHA and the CCSD, ensuring no immediate disruption for those residents.

To support residents through this transition, SHA has initiated ongoing case management meetings. These sessions are designed to provide personalized guidance, answer questions, ensure residents fully understand the changes, and provide available support. This initiative is part of a broader strategy to enhance communication, deliver wraparound services, promote self-sufficiency, and support aging in place.

On the Section 8 (HCV) side, Dr. Threatt discussed the implementation of landlord incentive strategies under the MGG program, which include utility deposit assistance. For the public housing portfolio, SHA is working with nonprofit partners to offer similar utility support services.

Additionally, SHA is exploring a partnership with Esusu, a financial technology platform that helps residents build credit by reporting on-time rent and utility payments to credit bureaus. This initiative is aimed at promoting long-term financial empowerment and credit growth for SHA residents.

Dr. Threatt also explained that as residents begin to assume responsibility for their utilities, their rent amounts will be adjusted downward to reflect this change. Residents will also receive a utility allowance to help offset the cost of water, sewer, and trash. He provided an example to illustrate how this adjustment would work in practice, ensuring that residents are not financially burdened by the transition and that the shift remains equitable and compliant with HUD regulations.

D. Tsunami Camera System Proposals & Locations: Dr. Threatt presented an update on the proposals received for the installation of the Tsunami Camera System across SHA properties. He reviewed the proposed camera locations for each development and emphasized the importance of this upgrade in light of past security challenges.

He reflected on the condition of the existing Verkada camera system when he first joined SHA, noting that many cameras were either non-functional or offline. This lack of surveillance capability significantly hindered the agency's ability to support law enforcement and ensure resident safety.

Dr. Threatt shared that he had engaged in discussions with both the Sanford Police Department and the Lee County Sheriff's Office regarding the integration of the new system. The proposed Tsunami system includes license plate reader (LPR) technology, which would enhance real-time monitoring and investigative capabilities.

He cited the tragic Garden Street shooting in March, where a young man lost his life, as a critical example of why upgraded surveillance is urgently needed. The existing footage from that incident was too blurry to be of any use. Dr. Threatt emphasized that had the Tsunami system been in place-with its high-resolution imaging and LPR features, the agency and law enforcement could have responded more effectively and potentially solved the case more quickly.

The proposed system comprises approximately 300 cameras across SHA properties, providing comprehensive coverage and enhanced safety infrastructure across 29 camera poles.

Chairwoman White strongly supported the urgency of implementation, especially with the summer months approaching-historically a time when SHA properties have experienced increased criminal activity. She stressed the need to act swiftly to prevent further tragedies and protect residents.

Chairwoman White added that following the Garden Street incident, the victim's mother received an eviction notice, which further complicated the situation. She emphasized the agency's responsibility to protect all residents and posed a sobering question: "What if that bullet had struck a child or another innocent bystander?" She reiterated that the safety of SHA families must remain a top priority.

E. May 2025 HUD Troubled Recovery Board Report: Dr. Threatt provided a comprehensive update on the agency's ongoing recovery efforts under HUD's Troubled Housing Authority designation. He shared that the long-overdue audit is expected to be finalized by the end of the week. Chairwoman White noted that this would mark the first time in over a year that SHA would have current financials available. Commissioner Dalrymple commented that this milestone reflects a significant step toward operational efficiency. Dr. Threatt added that completing the audit will allow SHA to unlock previously restricted funds, which are critical for advancing capital projects and operational improvements. He also mentioned that the required HUD depository agreement form and disposition finance policy were sent to HUD earlier in the month to ensure compliance with the Troubled Recovery agreement's additional requirements and to streamline financial management processes.

Dr. Threatt discussed the agency's efforts to modernize its systems, including the implementation of tablets for maintenance staff to manage work orders and inventory through the SACS system. This upgrade is expected to improve real-time tracking and service delivery. He also noted that the launch of SHA's new website has been delayed due to unforeseen circumstances, and a revised timeline will be developed.

He reported that occupancy rates for the LUFH initiative remain stable. SHA is also working with The Nelrod Company to update public housing policies. These updates include new community safety policies that will address parking enforcement, trespassing protocols, and resident vehicle registration. Residents will receive decals, and license plate tracking will be implemented. SHA is coordinating with both the Sanford Police Department and the Lee County Sheriff's Office to enforce these policies and enhance overall community safety.

In preparation for the upcoming NSPIRE inspection scheduled for June 16th, Dr. Threatt shared that Premier Contracting Professionals has completed unit repairs across multiple developments. Over the past four weeks, the contractor has completed one development per week. He noted that several change orders are anticipated due to unforeseen structural issues, including ceiling collapses, and that photographic documentation will be shared with the Board to illustrate the severity of the conditions addressed.

Dr. Threatt also discussed SHA's implementation of the Housing Agency Marketplace, which is designed to promote transparency and competition among vendors and contractors. This platform supports the agency's commitment to best practices in procurement and contract management.

Lastly, he informed the Board that the agency has decided to postpone the discussion of the Tickler File Management process to a later date. He noted that several documents required for the audit were difficult to locate, highlighting the need for improved records management moving forward as soon as possible.

F. 180 Days Later: Reset, Renew, Reframe - A CEO's Strategic Impact & Vision Report: Dr. Threatt presented his six-month leadership report titled "180 Days Later: Reset, Renew, Reframe - A CEO's Strategic Impact & Vision Report." He reflected on the commitments he made during his interview process and shared the progress made during the execution of his 90- to 180-day plan for the Sanford Housing Authority. He emphasized that many of the goals he outlined at the start of his tenure have been implemented or are currently in progress.

Dr. Threatt spoke candidly about the challenges of engaging with community partners and stakeholders, especially given the agency's prior instability and the extensive cleanup required to restore credibility. He noted that while the City of Sanford recently released a new Strategic Framework that includes a goal focused on preserving and creating affordable housing, SHA was not included, but should be recognized as the lead authority on affordable housing in the community.

He also introduced the agency's new cultural values framework, referencing the leadership values "WE CAN" and organizational values "I CAN" that are intended to help reshape the internal culture and reinforce SHA's purpose.

Dr. Threatt concluded by discussing the formation of seven board committees, each aligned with one of the seven strategic goals outlined in the Roadmap 2030 plan. He explained that this structure was designed to ensure that each commissioner is actively engaged in advancing a specific area of the agency's long-term vision, and that the board's governance structure is aligned with the organization's strategic direction.

7. Department Reports:

A. Asset Management Report:

Public Housing and Maintenance Reports: Ms. Tonya Davis-Buie provided the LUFH (public housing) and maintenance reports. Chairwoman White inquired about the frequency of quarterly inspections, to which Dr. Threatt responded that inspections should be conducted monthly, especially in light of the findings from the pre- and post-NSPIRE inspections. He emphasized that pest control services and monthly inspections should be coordinated together. He also noted that the agency is in the process of hiring an Assistant Asset Manager.

Chairwoman White asked whether residents are currently able to pay rent online. Dr. Threatt informed the board that this feature is nearing launch and will be available through the new housing software platform, Reframe, which includes online payment capabilities. She also asked about the number of uncompleted work orders. Dr. Threatt explained that many of the outstanding work orders are related to pre-NSPIRE inspection findings and will appear as completed in the next reporting cycle. He noted that the backlog was due to limited manpower and the need to bring in a third-party maintenance contractor to assist with the volume of repairs and prepare for the upcoming official HUD NSPIRE inspection.

RAD PBV (LIHTC)/PBV and Maintenance Reports: Ms. Tilghman presented the RAD PBV (LIHTC)/PBV and maintenance reports for the MGG and 226 Linden developments. She highlighted emergency response work orders, particularly those related to smoke detector issues, and confirmed that those are being addressed promptly.

Community Safety Report: Dr. Threatt provided an update on community safety efforts. He discussed the plan to take one unit offline to house the Lease Enforcement and Safety Coordinator, Mr. Jeffrey Gorley. The current family occupying the unit is undergoing relocation under the Uniform Relocation Act (URA). Dr. Threatt explained that having a dedicated safety presence on-site would serve as a deterrent to crime and improve overall community safety. He noted that frequent visits from law enforcement to the unit could disrupt residents' peaceful enjoyment and quality of life, which is why the agency is pursuing a best-practice model of having a safety coordinator or police officer live on-site and be available 24/7.

He shared that a draft letter is being prepared to formally request HUD approval to take the unit offline. Mr. Gorley would reside in one unit, and the adjacent unit would serve as his office, which would also house the Tsunami camera system and other security equipment. Chairwoman White commented on Mr. Gorley's proactive approach, including his outreach to the Chief of Police and the City Manager. She expressed disappointment that the City Manager misinterpreted the intent and reached out to Dr. Threatt with concerns. She emphasized that safety is a priority for the agency and recalled that Stewart Manor previously had 24/7 security. She also mentioned past contracts with off-duty police officers and her involvement in a Crime Taskforce. She stated that previous beat officers would not engage with the residents and were not visible, and that she would ask, "Can you please get out of the car and meet with the people?" She noted that this has been an issue for over a decade and questioned how many children are seen playing on SHA playgrounds, stating, "None... Then the residents do not feel safe."

Councilman Ferguson added that Chief Yarborough may have misunderstood the intent, believing that SHA wanted the Sanford Police Department to harass residents, which led to the City Manager's reaction. He explained that the concept of community policing is based on deterrence through visible presence, not intimidation.

Dr. Threatt shared that he will be residing at Utley Plaza and spoke about Mr. Gorley's 20 years of experience in larger urban areas such as Miami, Newark, and Birmingham. He expressed disappointment that this experience was perceived negatively and that the city seemed resistant to proactive safety measures. He emphasized that Mr. Gorley understands the importance of relationship-building and community engagement, including programs like self-sufficiency, Boy Scouts, Girl Scouts, and police athletic leagues. He noted that resident services meetings have not been well attended and that no city officials have visited the properties or met with him directly. He believes Mr. Gorley's presence will help bridge that gap and strengthen relationships with local law enforcement.

Dr. Threatt also shared that Mr. Gorley has already begun asking for crime data, statistics, and information on the types of incidents occurring in SHA communities. He explained how Mr. Gorley took a proactive and professional approach by essentially stating, "I am coming into your backyard," and I would love to meet. When Dr. Threatt initially requested this information in December 2024, he confirmed that he had not received any of the requested crime data since his initial inquiry.

Dr. Threatt spoke about having conversations with the beat officers with the Sanford Police Department and the Lee County Sheriff's Office, and discussing gang activity over the past couple of months, specifically around gang activity and juvenile-related incidents reported by the sheriff's office. He reiterated the urgency of having someone physically present on-site, especially in light of the March shooting incident. Dr. Threatt discussed how the new camera system and Mr. Gorley were received with optimism, and the beat officers asked, "When can we meet him? When can we get access to these cameras for the police and sheriff beat officers?"

Commissioner Dalrymple stated that the Police Chief should have personally contacted Dr. Threatt, rather than going through the City Manager. Vice Chairman Newby questioned why other stakeholders seemed supportive of the initiative, yet the Police Chief remained resistant.

B. Rental Assistance Report:

Housing Choice Voucher (HCV) Program Report: Ms. Bennett provided an overview of the current state of the HCV Program, highlighting persistent calculation errors in income and rent determinations that have occurred over multiple years. She discussed challenges in fraud analysis, audit findings, and supervisory lapses in quality control and file review. Ms. Bennett also noted staff training deficiencies and issues with software usage. She emphasized that unreported income from residents and participants remains a significant concern.

Ms. Danielle Tilghman added that unreported income remains a significant compliance risk and has contributed to discrepancies in HUD reporting.

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

Chairwoman White requested quarterly quality control (QC) reports to monitor miscalculations, file reviews, and audit findings. Ms. Bennett confirmed that the agency would revamp the file review process and audit procedures, contingent on assembling and training her team.

Vice Chairman Newby requested a realistic timeline for implementing the QC report. Ms. Bennett referenced HUD best practices and noted that when Dr. Threatt joined the agency, 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 is worth 20 points. He emphasized the need for monthly self-assessments, reporting of PIC errors, and data-driven decision-making. He also highlighted issues with the waiting list process and outdated housing policies from 2017 and 2019. Dr. Threatt requested board approval to update policies and procedures and to have a new framework in place by the end of Q4 (October).

Chairwoman White recommended best practices for obtaining Social Security benefit verification letters. She emphasized the importance of leadership accountability, particularly in the previous two administrations, which had stated that the QC process had been completed. Still, the results from the assessments said the opposite. Vice Chairman Newby reiterated the need for a clear timeline for QC reporting and policy updates. Dr. Threatt advocated for transparency, data integrity, and timely corrective action, emphasizing the importance of addressing SEMAP indicators, fair housing compliance, and sustainable quality control with his new leadership team.

C. Resident Services Report: Ms. Bennett provided an update on the activities and initiatives of the Resident Services team. She began by highlighting the team's recent participation in a Family Promise community event, which focused on supporting families experiencing housing instability. The event offered staff the opportunity to engage with community partners and reaffirm the agency's commitment to providing comprehensive support to residents.

Ms. Bennett also reported that Interim Lead Resident Services Coordinator, Ms. Christina Barrow, had already conducted an introductory meeting with the residents of MGG. She noted that Ms. Barrow was scheduled to meet with the residents of LUFH later in the week. These meetings are part of a broader effort to strengthen resident engagement and ensure that families are aware of available services and resources.

Additionally, Ms. Bennett shared that the Resident Services team had recently hosted a series of educational workshops designed to assist families with the transition to individual water billing. These workshops provided residents with practical guidance on budgeting for utilities, understanding billing statements, and accessing financial assistance if needed.

Ms. Bennett emphasized that these efforts reflect the department's ongoing mission to empower residents through education, engagement, and supportive services.

D. Development Report: Chairwoman White requested an update on Stewart Manor. Dr. Threatt began by explaining that the agency is currently awaiting the results of the property valuation for Stewart Manor. He noted that a Phase

I Environmental Assessment had been conducted, which included roof sampling to gather environmental data. The assessment revealed significant concerns due to the property's age, having been constructed before 1978, indicating the presence of lead in both the building materials and the surrounding soil.

Dr. Threatt stated that due to these findings, the agency would likely need to proceed with Phase II and Phase III Environmental Assessments. He explained that disturbing the lead during any redevelopment process could release hazardous materials from the bricks and terracotta piping, further complicating the site's redevelopment potential. Given these environmental and structural challenges, Dr. Threatt suggested that the site may be better suited for a non-residential use, such as commercial real estate. He proposed the possibility of developing a commercial project or a community-focused facility, such as a Family Life Center or an Enrichment Center, especially considering the property spans approximately eight acres.

He also addressed procurement issues involving TAG and The Galvan Development Group. Both entities were found to have been procured improperly, and the agency ultimately chose not to enter into contracts with either. However, TAG was compensated for services rendered based on legal guidance from The Banks Law Firm.

Dr. Threatt emphasized that the condition of the Stewart Manor building has deteriorated significantly since 2023 and 2024. The extent of the deterioration now qualifies the property for a Section 18 Demolition/Disposition application. The agency's goal is to secure Tenant Protection Vouchers (TPVs) for affected residents. He also referenced a significant amendment published in the Sanford Herald Legal Ad for HUD requirements. He discussed the process of removing the property from the Declaration of Trust (DOT) and the public housing program.

He reported that the estimated redevelopment cost for Stewart Manor is approximately $20 million, with 75% of the Total Development Cost (TDC) or $15 million, qualifying under Section 18 guidelines.

Dr. Threatt then transitioned to discussing the agency's administrative building. A Phase I Environmental Assessment has also been completed for this site to support funding applications through programs such as the Community Development Block Grant (CDBG) and the Capital Fund Program (CFP). The building, which is also under the SHA's DOT, is currently awaiting an appraisal. He noted that any redevelopment would need to occur in phases due to the building's condition.

He reported that mold and mildew remediation is necessary, with cost estimates of $3.7 million for rehabilitation and $7.6 million for new construction. Vice Chairman Newby confirmed Chairwoman White's earlier comments that the board had previously been informed that mold and mildew remediation had already been completed. However, due to a leaking roof, the issue worsened over time, as reported by Dr. Threatt.

Dr. Threatt added that environmental assessments have been completed for all other public housing properties and emphasized that such assessments should be conducted periodically in accordance with HUD regulations, especially when seeking new funding.

Looking ahead to 2026, Dr. Threatt discussed the potential for a Voluntary Conversion of public housing units to the Section 8 program. He explained that this approach could provide more stable funding in light of ongoing challenges with HUD funding for public housing's operating fund and CFP. He noted that this strategy would allow the agency to redevelop properties on the back end while maintaining funding continuity. Chairwoman White expressed her opposition to pursuing the RAD route, citing the agency's previous negative experience during the redevelopment of the MGG developments.

E. Human Resources Report: Ms. Ferguson provided the Human Resources report, beginning with an introduction to the newest members of the SHA team. She also noted that additional staff members are expected to join the team in the coming month. Chairwoman White took a moment to highlight the value of one of the incoming team members, Ms. Buie-Davis. She explained that Ms. Buie-Davis previously served as the Property Manager at Stewart Manor and would be a tremendous asset to the agency. Chairwoman White encouraged any board members who had not yet met Ms. Buie-Davis to take the opportunity to speak with her, given her deep knowledge of the property and her experience with the Stewart Manor development.

F. Public Relations Report: No report

G. Financial Report: Ms. Kauba delivered the financial report, providing a detailed overview of the agency's current financial standing. She outlined which obligations had been paid in full and which remained outstanding. She and Chairwoman White discussed the anticipated release of Capital Fund Program (CFP) allocations for FY2024 and FY2025, which are pending the completion of audits. They also noted that public housing shortfall funds had been recaptured due to the agency's failure to draw down those funds under the previous administration.

Chairwoman White inquired about the likelihood of the Sanford Housing Authority (SHA) receiving the anticipated funding. Dr. Threatt responded confidently, stating that there is a 95% likelihood the agency will be awarded the funds. He emphasized that his administration has fostered a strong working relationship with HUD, resulting in improved responsiveness and communication. He noted that the team has been consistently uploading the required documentation to HUD, particularly through the EPIC system, which is directly tied to the release of CFP funds, estimated at over $800,000 annually for FY2024 and FY2025. He added that the team has also been actively closing out grants and addressing outstanding items.

Chairwoman White asked whether the CFP funds could be used to pay the City of Sanford's water bill. Ms. Kauba and Dr. Threatt confirmed that the funds are available and that this obligation can be met. Dr. Threatt clarified that, although the agency previously lacked the internal capacity to manage this process, funding has always been available. Chairwoman White requested that payment to the City of Sanford be prioritized. Vice Chairman Newby added that payment to Eagle Rock, associated with former Interim CEO Mr. Marcus Goodson, should also be prioritized.

Dr. Threatt confirmed that the shortfall funding had been recaptured due to the agency's failure to draw down funds under the prior administration. Ms. Kauba stated that as soon as the funds are released, SHA will immediately pay the City of Sanford.

Ms. Kauba elaborated on the financial assessments conducted under Dr. Threatt's leadership, noting that they were essential for due diligence during his first 180 days in office. She described the strategy as "spending money to make money" and "robbing Peter to pay Paul," reflecting the agency's efforts to stabilize operations. She reported that the agency had recently held its first Finance Committee meeting, during which it discussed best practices in funding and grant management. She also shared that she regularly communicates with HUD and submits detailed spreadsheets outlining how funds are allocated, particularly for salaries and benefits under the Family Self-Sufficiency (FSS) program. Ms. Kauba states that she similarly handles the CFP drawdowns, utilizing timely spending, supportive documentation, and required reporting, which has fostered a strong working relationship with the HUD Greensboro Field Office.

She explained that CFP funds had previously been locked due to a lack of proper reporting by the former administration. She now follows a strict monthly drawdown schedule, limited by HUD's 12-month disbursement rules. Ms. Kauba expressed frustration over the inability to access funds in a timely manner, which has made it difficult to pay vendors and staff.

She also addressed procurement challenges and irregularities. Ms. Kauba described issues with the RFP process and vendor scoring. She noted that although The Do It Crew did not perform as expected, they were still paid. She identified three vendors-HD Ultra, The Do It Crew, and PLEP Cleaning Services - as the only ones consistently appearing in the system and across multiple contracts. As CFO, she approached the situation with the mindset of an investigative auditor and found it alarming that only these three vendors had submitted proposals. She raised concerns about the lack of due diligence and transparency in the procurement process.

Ms. Kauba shared her personal connection to the agency's mission, stating that she is a product of public housing and that the situation deeply affected her. She questioned why all units requiring rehabilitation were priced identically, citing this as a red flag. She provided examples of uniform pricing and emphasized the need for scrutiny. Chairwoman White responded by stating that the upcoming forensic audit should uncover these issues. Ms. Kauba affirmed that her mindset as a forensic auditor is already uncovering critical insights.

8. Commissioners' Comments: None

9. Public Comments: Chairwoman White opened the public comment period by reviewing the rules of engagement, noting that the Board would respond to public comments in writing only.

Ms. Sherri Campanale, a former employee of the Sanford Housing Authority, provided her name and address for the record and addressed the Board with several concerns. She stated that she had submitted a public records request. She expressed that she took personal offense to the implications made during the meeting, suggesting she had not followed procurement procedures or failed to pay agency bills appropriately. Ms. Campanale asserted that she followed SHA's procurement policies precisely as written (to the letter of the law).

She urged the Board to critically evaluate the information being presented to them and to verify the accuracy of audit findings. She stated that, based on her review of audit reports, there were no missing HUD-required documents such as EIV reports. While acknowledging that some errors may have occurred within the Section 8 Department, she suggested that the source of those errors might be surprising to the board.

Ms. Campanale referenced SHA's procurement policy, emphasizing that it outlines clear procedures for purchases under specific thresholds and that materials were to be supplied by SHA under contract terms. She expressed frustration with what she perceived as misinformation being shared with the Board and made a pointed statement, saying: "The board is being fed a bunch of bull crap, and the only staff that is left here are the questionable ones. The ones with integrity are all gone, and the ones that were here for the tenants are all gone."

She reaffirmed her commitment to the mission of public housing and stated that she and others continue to advocate for the agency and its residents. She agreed with earlier remarks by Dr. Threatt and Chairwoman White that no one should be forced to live in substandard conditions. Still, she attributed those conditions to systemic issues within the housing authority that had developed over time.

Ms. Campanale also expressed concern that both past and current leadership had contributed to the agency's failure to fully utilize available funding. She asked that staff not be blamed for these outcomes, noting that in some cases, employees were given only minutes to vacate their positions and had limited time to train others on complex processes such as the Capital Fund Program (CFP). She concluded by encouraging the Board to request documentation and verify facts before drawing conclusions.

10. Closed Session: Chairwoman White called for a motion to enter a closed session. Commissioner Dr. Wicker moved to enter the session, and Commissioner Dalrymple seconded the motion. Commissioner Dalrymple proceeded to read the applicable statutes governing closed sessions. Upon a unanimous vote in favor, the Board entered closed session at 8:13 p.m.

A. CEO Six-Month Evaluation, Bonus, and New Contract: Vice Chairman Newby led the discussion regarding the six-month performance evaluation of CEO Dr. Threatt. The board reviewed Dr. Threatt's current compensation and conducted a comprehensive evaluation based on the terms of his existing contract. The discussion acknowledged Dr. Threatt's exceptional performance and identified areas where he needed to improve during his first six months of service. The board unanimously approved a performance bonus in recognition of his accomplishments.

In addition to the bonus, the board provided Dr. Threatt with a set of strategic goals and expectations for the next six months. These goals are intended to guide continued progress and accountability. Based on his outstanding leadership and the agency's forward momentum under his direction, the board unanimously voted to extend Dr. Threatt's contract as CEO for an additional two years, with the new term running from June 1, 2025, through May 30, 2027, under Resolution 2025-28.

B. Former Employee Recording Request: Chairwoman White then addressed a formal request submitted by former employee Ms. Sherri Campanale that night, who requested access to the recordings of the March and April 2025 Board of Commissioners meetings. Chairwoman White read the letter aloud and directed that the agency's legal counsel at The Banks Law Firm respond to the request. She also asked Dr. Threatt to coordinate with legal counsel to retrieve the requested recordings.

Dr. Threatt agreed and further proposed implementing best practices for public transparency. He committed to posting board meeting recordings on the agency's website and announced plans to create a dedicated Zoom account, allowing the public to view meetings live. Additionally, he mentioned the purchase of an OWL video conferencing device to enhance the virtual meeting experience, allowing viewers to see and hear clearly who is speaking during meetings.

Adjournment of Closed Session: Chairwoman White requested a motion to conclude the closed session following the discussions. Commissioner Dalrymple made the motion, which Commissioner Britton seconded. The motion carried unanimously, and the closed session was adjourned at 8:38 p.m., and the regular board meeting resumed at 8:39 p.m.

11. 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, CEO, Secretary

Approved:

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