MERAMEC COMMUNITY ENHANCEMENT CORPORATION

MEETING MINUTES

Tuesday, March 30, 2010

Call to Order:
Vice President Byron Baker called the Tuesday, March 30, 2010 MCEC meeting to order at 11:53 a.m.

Members Present:
George Gruendel (Dent), Marcus Maggard (Dent), Darrell Skiles (Dent), Byron Baker (Osage), Russell Scheulen (Osage) and John Petersen (Phelps)

Members Absent:
Warren Brown (Crawford), John Hewkin (Crawford), Ed Worley (Crawford), Heather Avery (Gasconade), Ron Jost (Gasconade), Wayne Langston (Maries), Ray Schwartze (Maries), Larry Stratman (Phelps), Randy Verkamp (Phelps) and Bob Reed (Washington)

Staff Present:
Richard Cavender, Bonnie Prigge, Connie Willman, Maria Kardon, Lucia Flaim, Chuck Cantrell, Jodie Branson, Patti Adams, Kelly Sink-Blair and Lisa Warnke

Approval of minutes from December 15, 2009 meeting:
Darrell Skiles made a motion to approve the December 15, 2009 MCEC meeting minutes as presented. John Petersen seconded the motion. Motion passed.

Business:
Connie Willman introduced Patti Adams a new staff member that has replaced Lesley Bennish. She will be working with the Home Repair program and the FHLB program. Connie also introduced Maria Kardon, a current staff member who will also be working with the Home Repair program and with the Housing Counseling program.

A. Housing Counseling Agency:
Connie Willman informed the committee members that MCEC has recently been recertified for two years to serve as a HUD Housing Counseling Agency. This service has never been funded through HUD. We had received the designation but have always used existing programs to provide the counseling. Chuck Cantrell has served as the counselor and it has mostly been used as a referral type counseling.

Recently, Doug Neff, of the St. Louis HUD office, came to review the existing program. He found several deficiencies, including the lack of a permanent sign and proper training for staff in regards to counseling. HUD wants us to correct the deficiencies and continue with the program. Staff explained that MCEC has never received any grant funds for training or ongoing operations.

Connie informed the members that Maria Kardon will be taking over the counseling duties for this program. She has researched the availability and cost of the required training. Maria said that there are training sessions available in April and August and the cost is approximately $1,050.00 per person. She said that there is a possibility of applying for scholarships for the August training sessions. It is important to receive the formal training so we can better serve our region. We are listed on the HUD as a certified housing counseling agency and there is a great need in this area for this service. The board was asked if they were willing to use a small portion of the Homeownership funds toward staff training if HUD does not provide any funding.

The committee discussed that MRPC should continuing to try to get funding through HUD. They asked if this was a service that a client could be charged for. Chuck informed the committee that, in some cases, the client can be charged for pre-purchase counseling but not for foreclosure counseling. Staff will check on the fee restrictions. Byron Baker suggested that MRPC should notify the local banks and inform them of this service so they can provide the information to the homeowner. MRPC should also check to make sure that the blanket liability insurance covers counseling issues. Byron also suggested that MCEC should put a plan in place to use this service.

Russell Scheulen made a motion that MCEC set money aside for the purpose of sending two MRPC staff to receive training for the Housing Counseling program.

John Petersen amended the motion by setting a cap of $2050.00 to be used for the training of two MRPC staff to receive training for the Housing Counseling program. George Gruendel seconded the motion. Motion passed.

B. Federal Home Loan Bank Projects:
Chuck Cantrell reported on past and current FHLB projects. Chuck informed the committee that the first FHLB project that MRPC was awarded was Whispering Oaks in 2002. These senior housing units were originally funded by USDA Rural Development over 30 years ago and haven’t had much rehab done on them since. In 2008 and 2009, MRPC was awarded five separate complexes to rehab with funding provided by the FHLB program. These complexes included:

• Leasburg Village Apartments, with 32 apartments, funding for $359,932.62, hiring 6 contractors/vendors and employing 23 onsite workers.
• Owensville Senior Housing, with 44 apartments, funding for $526,313.92, hiring 11 contractors/vendors and employing 33 onsite workers.
• Vienna Homes, Inc, with 32 apartments, funding for $369,452.51, hiring 10 contractors/vendors and employing 31 onsite workers.
• Cuba Retirement Homes, with 36 apartments, funding for $274,220.12, hiring 6 contractors/vendors and employing 25 onsite workers.
• Dixon Manor, with 46 apartments, funding for $520,238.00, hiring 5 contractors/vendors and employing 23 onsite workers.

Total jobs created from these FHLB projects (not counting suppliers) was 173 people. Total FHLB dollars brought to the region was $2,050,157.17.

New projects from FHLB include the following:

• Frederick Terrace Apartments in Arcadia Valley with 52 apartments and funding of $483,220.00.
• Greater St. Clair Homes with 48 apartments and funding of $403,850.00.
• Steelville Homes, Inc with 48 apartments and funding of $375,064.00.
• Autumn Age Homes in Bourbon with 48 apartments and funding of $234,938.00.
• Home Repair Program funding of $145,000.00. Plans are to repair 25 homes in the area with this money.

Total FHLB funding for the senior housing projects is $1,497,072.00 and for the home repair project is $145,000.00.

Staff Reports:
Staff reported on MCEC projects and applications.

Kelly Sink Blair reported that CDBG applications that were submitted for the 2008 Disaster Recovery Funds are being reviewed and it looks promising that they will be funded. These applications include the following projects:

• Single Family Rental Rehab project – proposed plan would be to rehab 15 rental units in a two year time frame.
• Osage County Apartment Rehab project – proposed plan to rehab two separate senior housing complexes in Osage County.
• Crawford County Senior Apartment Rehab project – proposed plan is to rehab the Sullivan apartment complex.

Kelly is also working on an application for funding for the Housing Counseling funding.

Lucia Flaim reported on the HPRP program. She informed the committee that at this point over 200 families has received assistance from this program. Luci discussed a meeting that was recently held at the Phelps County Court House to discuss the close-out policy for the program as the money is rapidly depleting. Luci discussed the contract amendment that was given to each entity (copy is attached).

Patti Adams reported on the Federal Home Loan Bank Home Repair program and the MHDC Home Repair program. Patti informed the committee that in the FHLB program, three homes are complete, three homes are under contract, and two homes are ready for inspections. In the MHDC program, three homes are under contract, one home is ready for inspection and one home is ready for a walk-through. For the MHDC Hermann Home Repair program, one home is complete, one home has the SHPO clearance and MCEC still has funds to rehab one more home in the Hermann area.

Chuck Cantrell reported on the Homeownership program. Chuck informed the committee that the Mapleshade house in Cuba has still not sold. According to Federal Guidelines the house cannot be sold to anyone except the very-low income. Chuck has inquired to see if there is the possibility of renting the property. He will report on this at the next meeting.

Approval of financials:
Jodie Branson presented the MCEC Statement of Revenue and Expenditures for the month ending February 28, 2010, and the MCEC Balance Sheet as of February 28, 2010, and the Homeowners Capitalized Asset Worksheet as of February 28, 2010.

Russell Scheulen made a motion to approve the MCEC financials as presented. Marcus Maggard seconded the motion. Motion passed.

Jodie presented the MCEC Revised Budget for the period July 1, 2009 through June 30, 2010.

George Gruendel made a motion to approve the Revised Budget as presented with the addition of the added expense of the Housing Counseling training of $2,050.00. Darrell Skiles seconded the motion. Motion passed.

Next meeting:
June 8, 2010

Adjournment:
Being no further business, Marcus made a motion to adjourn the March 30, 2010 MCEC meeting at 1:12 p.m.

Approved by the board ______________________________, 2010

___________________________________________________
Wayne Langston, President