Housing authority approves $160,000 revolving fund to speed Plaza East emergency repairs

The commission voted to authorize a modification to an existing loan and provide Plaza East Associates LP an additional $160,000 in revolving funding to allow a small, minority-owned contractor to continue repairs at Plaza East and speed completion.

CFO (identified in the meeting packet as Mamadouning) explained that emergency repairs at Plaza East covered 187 units; 152 units have been completed and 35 remain. The repairs totalled 773 completed repair items with 333 outstanding. Because the contractor, Marcus Lyons Company, had only a roughly $50,000 line of credit the firm could not sustain the cash flow needs while waiting for reimbursement draws from the city; the proposed $160,000 revolving fund was intended to provide weekly payments so the contractor could accelerate work and avoid delays.

Mamadouning described the loan as a revolving, reimbursement-based fund that would be replenished by subsequent draws to the city. Presenters estimated the contractor could increase output from about seven units per month to "4 to 6 units a week," allowing staff to move projected completion from December 2023 to October 2023. The presenter said the 33 remaining units have a higher scope of work than earlier-completed units and that limited access to certain units had been a secondary challenge.

Why it matters: Commissioners said the fund was intended to avoid delays and to support a minority-owned contractor. A timely completion of emergency repairs reduces housing instability and may limit the need for additional temporary relocation.

Vote: Commissioners moved, seconded and took roll call; all present commissioners voted to approve the $160,000 revolving fund.

Quote: "So as a solution right now the treaty is proposing providing $160,000 revolving fund for the Plaza Ace to Plaza Ace associate. This will allow to provide upfront payment to Marcus Line," the CFO said. Marcus Lyons, the contractor on site, told the commission access to units and funding were key concerns but that relationships with residents had improved and residents are now scheduling repairs.

Next steps: Staff will administer the revolving fund and report back on the pace of unit completions and draw replenishment from the city's reimbursement process.