After 2023, it was uncertain how that liability would be paid down and our discussions at that time with the Housing Authority, there was an assumption there would be sufficient residual receipts to pay down that liability but it is an ongoing risk for the Housing Authority. So in terms of our report, we made 16 recommendations and some of these pertain to the mou thats before you today. Although none of them would in any way impact your approval of the mou in this meeting. So of the 16 recommendations, we heard from the mayors housing who will be responding to the audit and agreed with the 12 of the recommendations or qualifications and disagreed with four and well go through the four disagreements. It would be transparent about what the status of funding was and then for early reporting to the board possible vouchers shortfalls in the Housing Voucher Program and one of the things thats important here is that because theres assumption that the funding for the formula can lead to shotfalls there is supplemental funding from hud but the Housing Authority has to apply in sufficient time to get that money and it will be important Going Forward that the board is ware and is aware and the Housing Authority is applying to get the funding because lots of people are applying for them. We recommended an annual midyear report on Housing Authority activities. December sort of ends the year they look at their voucher activity and their other activities and we think it would be important for continued reporting and then annual reporting on the unfunded pension in liabilities. And the other major area of recommendations on severance payments that are covered by the mou thats before you today and one was for evaluating whether they had sufficient reserves at this point to meet up to 5 million payment and then consult with hud to consult they could be use ford this used for this purpose and if necessary, to identify other Funding Sources for the severance payments. The mou covers the will and executive management saying the city will provide executive management to the Housing Authority to a Services Agreement and that the mayor will appoint an executive director for the Housing Authority, who will report to the mayor the mayors texas designee and they have not had a permanent director since 2013. The person in that role has been in acting position and not a permanently acting director and Going Forward there would be a Permanent Appointment as a priority. And then the other the Housing Authority will retain some core staff to oversee the thirdparty contracts in the time of the audit. So when you think of the thirdparty contracts almost all of Public Housing has already been contracted through agreements with private property owners, nonproperty owners and hope 6, hope sf, those have all been transferred to private providers and that will continue with all of the Housing Authority property. For the other contracts at management its housing we think its important that the contract oversight be competent in that we wanted to make sure that would continue. Other major areas of operations is to think about if theres a shortfall in the housing assistant payment to hud or if theres a reduction reduck reduction, that be part of the financial projections. These are the joint reports from the controller, the mayors Budget Office and budget and legislative analyst. And that joint report looks at general fund revenues, but to the extent the city is, like, looking at whether theyll backfill any shortfalls and funding we think that needs to be considered as part of that process. In the mou it talks about the nonhousing or the Housing Authoritys nonhousing stock and it provides for an inventory of that stock. One of the key pieces of property that the Housing Authority owns that the city needs to evaluate its own purposes is 1815 egbert street which is the housing administratives office and the city spent many millions of dollars putting up housing across the street and we think this needs to be considered of the inventory. And i want to say another thing about how property is looked at in this. We were assured that any developer any party to the Development Agreement who bids would be in arms length in the rfp process and we just wanted to see who bid what the bidding process is and how it was awarded and how the price was set. The mou does not actually provide for appraisals of Properties Sold for market rate housing. And i think thats a significant issue for us. So there were areas of where the recommendations and the audit were not agreed with. And ill go over them and one was our recommendation that we believe that budget contracting property transitions should conform with the charter and the administrative code and at the time of the audit basically what was said, no, this is under huds jurisdiction, not the board. However, i would say that between july, when we got the original mou and today there have been revisions which we think go a long way towards addressing this recommendation and it does clarify more what the boards role will be in the process and brings forward at least for review if not for approval major contracts and major provisions, you know, that meet the charter and admin threshold. We think even though there was a disagreement in the audit itself that the mou does go a long way toward addressing this recommendation and there still are limitations but that has a lot to do with huds own ligses limitations and what theyre willing to agree to. We have another one that ill send to john givner at the moment and was another recommendation in mou. The mou provides for the structure of the Housing Commission a Housing Authority commission and it allows for under state law only the mayor can appoint the commission. The mou provides for the mayor to appoint four members and for the board to recommend three members to be appointed by the mayor and its consistent with state law. Now i want to point out this is state law so if there is a change in the structure of the commission, they could in fact, also advocate for changes at the state level. And our recommendation, though, is that the admin could cod codify since this structure since it was recommended through the mo but ill turn this over to mr. Givner. Im city attorney, john givner. So the state law restricts how the city can appoint members of the Housing Authority. Under the mou the proposed plan is for the mayor to appoint the members of the Housing Authority and the mayor has committed in a letter that she submitted to the file this week and in the mou itself that she will follow the recommendations of the board for certain members of the commission. That provision in the letter and the mou are not going to be legally binding if a future mayor concludes that he or she wants to appoint a member to those seats on the Housing Authority that are inconsistent with the recommendations of the board. The mayor will retain that discretion under state law unless as miss campbell suggests state law is chappinged to give the board of supervisors appointment authority. Thank you for that clarification. So i had a question. So then, would the adopting the mou with the proposed restructure itself be a violation of state law . No, administer the mou the mayor retains discretion to make the appointments and the mayor remains the appointing authority, but the mayor is essentially making a commitment in the mou and letter to follow the boards recommendation for those three seats. The final area of disagreement where we maintain our recommendations is over the question of Financial Management. Again, we dont think theres anything in our recommendations that are inconsistent with the mou language before you today. And one of the provisions of the mou is on Financial Management which stated, to the extent that required by the city, the Financial Management will be outsourced to a thirdparty contractor. And that it clarifies that the current bdo is the contractor providing Financial Management. Four recommendation is after the transition we believe that Financial Management should be brought inhouse. We dont believe it should continue to be a contracted function. The same way that other executive management and executive director are specified as being city responsibilities to a shared Services Agreement with the Housing Authority. We did actually, during the source of this audit i think theres a concern that the Housing Authority has not had sufficient Financial Capacity for a good many years now. Certainly going back to our audit of 2013, are we identified it as a problem. But we did talk to a local representative from hud and its our belief that a competent financial manager can learn the hud ways of doing things, that the city has other financial managers who deal with complex systems and complex regulations and that we think its important for this function to be brought inhouse. And we think that the mou is consistent with that. We dont think mou before you inconsistent. The other two years of disagreement was under the transitioning of the citys Financial System and the authority of the controller. I think in our discussions with various staff theres some capacity there. And i also wanted to say that specifically the mou states that the Housing Authority will transition to a sharedservices model in which there are Services IncludingInformation TechnologyHuman Resources purchasing real estate, Financial Systems and oversight and that there will be a process where they will begin to develop integration of these systems processes and practises. So we think our recommendations are actually entirely consistent at this point with the language in the mou. So overall that does summarize our report. And we did receive a lot of assistance from the staff and managers about the Housing Authority and the Mayors Office of housing and we want to thank them for the help they gave us. I want to also thank bdo the financial consultant, really provided a lot of information. Potand were available for any questions. Thank you miss campbell. Supervisor brown any questions . No. So next up, we have tonya lediju actually jan adams from the Mayors Office of housing who will present on the transition mou. Thank you so much, supervisors. Very pleased to be here and i do want to recognise tonya. You may know her as the city auditor but appointed by the mayor to lead the transition of the Housing Authority so happy to be here. I want to thank miss campbell and her team for the excellent work in review and collaboration on their performance audit. I will keep my comments brief as miss campbell did a good job of summarizing the key issues. What brings us here is a set of financial and operational challenges experienced by the Housing Authority and on the housing choice voucher administration. There were operating budget deficits on the Public Housing side projected in the upcoming years and a very acute shortfall in the housing choice voucher that necessitated an emergency loan from our office to the Housing Authority to cover that shortfall and ensure that landlords got paid and vulnerable residents maintain their tenancy. As a result of this mismanagement, hud issued a default letter and i think youre familiar with that in which they found the Housing Authority in default under both main programs and in order to cure that default it required two things. Firstly required that this outsource operations of the two main programs to thirdparty experts and thats well underway now. They have secured a housing choice voucher administrator and this is under the administrators purview and were preparing in collaboration an rfp to manage the Property Management at the housing site. There are federal regulations which must be adhered to, and those comments have been added to the most recent version of the mou that is in your file. And there are also, based on those comments to the resolution and i understand that will be provided subsequently. And i do want to although we come to this meeting through times of really financial challenges i do want to frame this next step as an extension of the Ongoing Partnership that our office has had with the Housing Authority over the past decade and more. Really beginning with hope and assess and the transition of the theyre finishing up all Affordable Housing and at sunnydale and petrr arcaro, we finished large revitalization efforts. And weve been engaged in the transition of the balance of the portfolio, 3500 units from Public Housing to voucher supported, nonprofit owned and managed housing under the rental assistance demonstration project and that, with the 100 Million Investment from the city weve averaged over 2 billion of investments that have really provided much Better Living conditions for many of the most vulnerable households. And this gives an opportunity to strengthen the collaboration coordinate operations and continue to support nearly 14,000 residents that depend on the Housing Authority. So not to be too redundant but what does mou do . It exists as a separate Legal Organization and we discussed the appointment structure of the new Housing Authority board of commissioners. The key i think component whereby the city assumes essential functions is really in the appointment by the city of the ceo and the executive staff at the Housing Authority and to ensure that the reporting structure really comes up through the city and that, again, that relationship will be established through a Services Agreement between the city and the Housing Authority. And i stated earlier outsources that the voucher and Public Housing operations is in the mou and fourth and finally the authority will submit an annual budget for review by the mayor and board of soup supervisors each year and that will include contracts to exceed 10 million ten years or generate more than 1 million in revenue. Please note that the funds for the Housing Authority come exclusively from hud and those have richard rigid requirements. It does retain authority under city charter to amend and adopt any proposed allocation of city funds to support the authority and to authorize city staff positions assigned to support the authoritys operations. So with that summary unless there are any questions, i would like to turn it over to my colleague ton tonya who will address the report. please stand by . My fear is that theyre going to move to evict. And thats a fear that and its a real fear. And i understand their frustration. The Management Companies. But they are more of like a machine. These Management Companies are bigger more of a machine where before the Housing Authority had much more of a one on one and people could call this person that person, to see who could help, but the Management Companies are coming in, a lot of them havent dealt with things like this before. Or if they have, they are dealing with them in a different way than we would normally deal with. Lets get resources in there. Im wondering is there funding and that capacity that we are working with the other departments to bring people into help these Management Companies deal with residents that are in a real need of that transition. And spending all the money we did, and the properties are now coming back down because of behaviors. Well, i think that its a important reminder we did provide funding support and continue to provide funding support for services and engagement and housing stabilization. I think what you are pointing out is there may be a need to make that funding and infrastructure more robust, but it is in place. So we have staff that are assigned to work with each property and ensure that Resident Services are provided when we get complaints we respond we coordinate with the