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Management reports leak, HUD limits capital drawdown; board moves to amend budget and five‑year plan
Summary
SMR management reported a suspected water leak beneath a hallway slab requiring excavation and possible mold remediation; HUD advised reducing a planned capital drawdown from $40,000 to $22,000, prompting proposed budget and five‑year plan amendments so funds can be drawn before May deadlines.
SMR management told the Housing Authority that plumbers found a hot spot in the hallway outside multiple units and suspect a water leak underneath the concrete floor that will require excavation and repairs.
The SMR representative said crews drilled a camera hole and plan to investigate through a resident kitchen to locate the leak; initial repair work was described as potentially "10,000ish" dollars. The report also identified tenant-damage and an emerging mold issue in one unit that may require remediation if cutting open wallboard confirms the extent of growth.
In the same update, SMR said it met with HUD after the previous budget submission and was told HUD would not allow a $40,000 drawdown from the capital fund for operations as previously planned. To preserve access to funds, staff proposed amending the budget to reflect a reduced capital drawdown of $22,000 and increasing contract-cost line items (plumbing, electrical, mold remediation). SMR said the change would lower the projected cash flow figure from roughly $30,400 to about $6,400, which staff argued better supports drawing funds down before a May deadline.
Board members moved and seconded motions to approve the revised budget and to amend the five-year plan so the requested capital funds could be drawn for operations and repairs; the transcript records motions and seconds but does not include a formal roll-call tally in the recorded segments. Board members also asked that property addresses in budget documents be corrected and that mold remediation be included in contracted-cost descriptions where possible.
Next steps recorded in the meeting included staff adjusting budget pages and working with the accountant to correct property address details, and the maintenance team proceeding with investigative work to determine repair scope and cost. The board did not record a detailed final vote result in the transcript for the budget and five‑year plan motions.
