Petra Community Housing Board of Directors

Special Meeting

Meeting Minutes of 12/6/2012

4:30 p.m., Phoenixville Federal Bank & Trust, Kimberton, PA

Call to Order and Meeting Overview:

The meeting was called to order at 4:30 p.m. by Kurt Kunsch

Board of Directors Present: Kurt Kunsch, President; James Kovaleski, V.P; Pastor Jack Mason, Secretary; Mitch Reading, Sister Marie Rose Gibson, Mary Bonenberger, Joe Ciresi, Rebeca Romain, Sandy Fry (via phone), Cindy Bassett (via phone)

Board of Directors Absent: Eric Gooding

Emeritus and Associate Directors Present: Scott Fitzgerald, Barry Behnke, Joan Lyon

Emeritus and Associate Directors Absent: Don Coppedge, Ted Travis-Bey, Bob Noll, Cathy Calhoun, Mary Hopkinson, Rick Schroeder, Dave Adams, Chick Coles, Brian Metz

Staff Attending: Steve Kambic, Executive Director; Mary Chenco, Operations Coordinator

Kurt Kunsch explained the reason for calling a special meeting was to discuss recent developments in both Montgomery and ChesterCounty. The purpose of PCH is to develop affordable housing. No new developments of any substantial scale have occurred since the Bard Complex was completed in 2006. This is mainly due to the lack of available funds. The only major source of funding today is Low Income Housing Tax Credits (LIHTC) and property owners are reluctant to tie up their property for two or three years while funding through LIHTC is secured. Renovating single family homes is often a time and financial strain on the organization. Therefore, a strategy is needed as move forward with these challenges.

Steve Kambic briefly explained the difference in funding between Chester and MontgomeryCounty. While Chester Countycontinues to provide operating funds while we lack property site control, theyprovide just under $12,000 to the operating budget. Montgomery County, however, requires that we are actively progressing with a project before we are eligible to receive $48,869 for the operating budget. Steve reiterated concerns that had been previously voiced by board members that we do not have the capacity to take on two major projects at one time. It makes more sense to take on a smaller project in MontgomeryCounty while pursuing a larger project in ChesterCounty.

Steve also shared with the board that 137 N. Third Ave.only netted a total of $3,020.61. This was due to the fact that the purchase price had to be reduced to eliminate PMI insurance, per MontgomeryCounty’s requirements.

MontgomeryCounty Development Projects

Currently we are not under contract with Montgomery County and the $48,869 in operating money for the period 10/1/12-9/30/13 is in jeopardy. The county has requested a budget revision for the operating money.

Mitch Reading motioned that the 2012-2013 Montgomery County CHDO Operations budget be adopted as presented. Jim Kovaleski seconded. The motion carried. The board also made the decision to find a project in Montgomery Project as soon as possible in the hopes of receiving the operating money from the County.

The board agreed to ask MontgomeryCounty to reimburse Petra for the $15,093.75 spent on due diligence for Bechtel Road. Steve will make the request.

The board was not in favor of developing 514 Second Ave. in Royersford due to the condition and location. Much discussion took place as to what type of project should be pursued. It was explained that Montgomery County was no longer interested in selling to first time home buyers due to the current housing market and the difficulty in selling to a qualified buyer. The county is requiring rentals. The board discussed finding a single family home to rent or a twin or single home that could be converted into two rental apartments.

It was suggested that Steve email Montgomery County requesting that they reply in writing explaining exactly what they are requiring Petra to do to continue the current relationship with the county. It was also suggested that Steve schedule a face to face meeting with Kathy Phifer (Director of Montgomery County Department of Housing and Community Development) board directors, including Kurt Kunsch, will accompany Steve.

In the meantime the board requested that staff continue looking for a project, Mitch Reading offered his services.

ChesterCounty Community Foundation William West Fund

Steve Kambic shared that Chester County Community Foundation has approved our request to access $28,000 from the fund for costs associated with developing affordable housing.

The Foundation also approved the borrowing of up to $240,000 with zero interest for 12 months to be used for acquisition and development of a property for development.

There was considerable discussion about the use of the William West Fund for the purpose of paying developer fees. The Board agreed that we cannot request funds from the Endowment until and unless we have a specific, board approved project.

Chester County project at Church Street in Phoenixville, PA

Steve Kambic reviewed the draft Letter of Intent and shared that the initial appraisal is $1,325,000 for all four properties. However, the church and its land appraised at $730,000. Concerns were raised as to the cost of re-platting the site. It was suggested that we offer $500,000 for the entire site along with an agreement for them to lease the church for $1 a year for 99 years or similar arrangement.

Mitch Reading made the motion to empower Steve Kambic, as Executive Director, to submit the Letter of Intent with minor edits per the above suggestion. Peachy Gibson seconded the motion, the motion carried.

Mary Chenco left the meeting at this juncture.

Floating Holiday

Mr. Kambic indicated that employees are expressing personal financial concerns due to the recent changes in employer medical contributions and uncertainty with Montgomery County funding for CHDO operations. After discussion, Mitch Reading made a motion, seconded by Joe Ciresi, to grant full time employees one floating holiday in 2013. The motion carried. Directors said they wanted to show support for employees in these difficult times.

Adjournment

Seeing no further business, Kurt Kunsch moved, seconded by Jim Kovaleski to adjourn the meeting. The motion carried.

The next meeting is the Annual Meeting which will take place on Wednesday, January 16th at the Freedom House.