HomeMy WebLinkAboutMINUTES - 08122008 - SD.5 HOUSING AUTHORITY OF THE COUNTY OF CONTRA COSTA
TO: BOARD OF COMMISSIONERS
FROM: Joseph Villarreal, Executive Director
DATE: August 12, 2008
SUBJECT: FY 2007-2008 4th Quarter Budget Report
SPECIFIC REQUEST(S) OR RECOMMENDATION(S) & BACKGROUND AND JUSTIFICATION
I. RECOMMENDED ACTION:
ACCEPT the FY 2007-2008 4th Quarter (Unaudited) Budget Report for the period ending 3/31/08
II. FINANCIAL IMPACT:
None. Informational item only.
III. REASONS FOR RECOMMENDATION/BACKGROUND
This report is intended to provide the Board of Commissioners with an overview of the financial position of
the Housing Authority of Contra Costa County (HACCC) through the fourth quarter of the fiscal year
ending 3/31/08. The report begins with a summary of the Authority's overall financial position. After that,
the overall numbers are broken down by individual funds. Each fund overview includes a brief program
summary, a short explanation of significant differences between the budget and the Authority's year-end
financial positions, and a breakdown of program reserves,
The final audited budget will likely be brought to the Board in February 2009. The lag between the
unaudited and final audited versions is so great because the Authority's independent auditor must first
review HACCC's financial and program records and then the budget and the independent audit must be
provided to HUD for review and approval.
AGENCY OVERVIEW:
Budget Report:
4th Quarter
HACCC Agency Summary Annual Budget (unaudited)3/31/08 Difference
Revenue $ 96,731,864 $ 101,007,117 $ 4,275,253
Expenditures $ 96,387,412 $ 96,675,966 $ (288,554)
To Reserves $ 344,452 $ 4,331,151 $ 3,986,699
CONTINUED ON ATTACHMENT: X_YES SIGNATURE
oseph dlarreal,Lxecutive Director
X RECOMMENDATION OF EXECUTIVE DIRECTOR RECOMMENDATION OF BOARD COMMITTEE
APPROVE OTHER
SIGNATURE(S):
ACTION OF BOARD ON APPROVED AS VECOMMENDED O IER
VOTE OF COMMISSIONERS
I HEREBY CERTIFY THAT THIS IS A
UNANIMOUS (ABSENT_ ) "TRUE AND CORRECT COPY OF AN
AYES: NOI:iS: ACTION TAKEN AND ENTERED ON THE
ABSENT: _ ABSTAIN: MINUTES OF TI IE BOARD OF
COMMISSIONERS ON THE DATE SI TOWN.
ATTESTED
JOSEVILLARREAL,
SECRETARY OF
THE BOARD OF COMMISSIONERS
AND EXECUTIVE DIRECTOR
BY DEPUTY
H:\JudyHayes\MSOFFICE\WINWORD\130ARD\130-4th Q Financial Report.doc
HACCC's actual revenue compared to that budgeted increased by $4,275,253, primarily because of a
post funding year increase of$6,824,118 from HUD for the Housing Choice Voucher (HCV) program.
However, most program components struggled with funding shortfalls from HUD and significant
decreases in reserves. Only two reserve balances increased over the past.fiscal year, HCV restricted
(which can be used only to cover increases in rental assistance costs) and the restricted reserves for the
certificate programs (also limited to rental subsidies). The other six reserve balances all decreased.
Analysis of Agency Reserves:
4th Quarter 3/31/08 Reserves Balance
Program Beginning Balance 4/1/07 (unaudited) 3/31/08 (unaudited)
Total Reserves $ 10,555,159 $ 4,331,151 $ 14,886,310
Restricted Reserves
Housing Choice Vouchers $ 6,218,883 $ 5,895,057 $ 12,113,940
Public Housing&Capital Fund $ 350,361 $ (198,400) $ 1.51,961
State&Local Programs $ 1,347,805 $ (62,786) $ 1,285,019
Housing Certficates Programs $ (273,917) $ 300,476 $ 26,559
Total Restricted Reserves $ 7,643,132 $. 5,934,347 $ 13,577,479
Unrestricted Reserves
Housing Choice Vouchers $ 418,882 $ (419,368) $ (486)
Public Housing &Capital Fund $ 554,035 $ (518,155) $ 35,880
State&Local Programs $ 1,523,767 $ (277,970) $ 1,245,797
Housing Certficates Programs $ 415,343 $ (387,703) $ 27,640
Total Unrestricted Reserves $ 2,912,027 $ (1,603,196) $ 1,308,831
As a reminder, almost all reserves are restricted for use within each program. The designation of
restricted or unrestricted reserves merely indicates that the funds are obligated for special use within the
program (restricted) or that they can be used for any purpose tied to the program (unrestricted). The only
exception to this rule is unrestricted funds within the State and Local Fund. These can be used in any of
HACCC's programs.
FUNDS OVERVIEW:
Housing Choice Vouchers
Program Summary - The HCV program (Section 8) provides rental assistance to families in the private
rental market. HACCC qualifies families for the program based on income. These families find a home in
the private rental market and HACCC provides them with a subsidy via a Housing Assistance Payments
(HAP) contract with the property owner. The HAP is paid by the Authority directly to the owner. Through
its HCV program, HACCC is able to provide affordable housing assistance to 6,781 families.
Summary of Difference Between Budgeted and Year-End Financial Positions:
Housing Choice Vouchers Annual Budget 4th Quarter 3/31/08 (unaudited) Difference
Revenue $ 76,266,548 $ 83,090,666 $ 6,824,118
Expenditures $ 76,172,868 $ 77,614,976 $ (1,442,108)
To Reserves $ 93,680 $ 5,475,690 $ 5,382,010
Revenue - The year-end gain versus the budgeted amount of$6,824,118 is the result of a post funding
year increase of HUD funding.
Expenditures - The negative difference of$1,442,108 is almost entirely due to three primary factors.
These factors are an increase in labor costs needed to address some of HUD's audit findings ($746,587),
repayments to HUD in response to the Inspector General audits ($269,446), and increased housing
assistance payments (HAP) made to owners ($426,670).
Analysis of Program Reserves:
Reserves Balance
Beginning Balance 4th Quarter 3/31/08 3/31/08
Housing Choice Vouchers 4/1/07 (unaudited) (unaudited)
Restricted Reserves $ 6,218,883 $ 5,895,057 $ 12,113,940
Unrestricted Reserves $ 418,882 $ (419,368) $ (486)
Total Reserves $ 6,637,765 $ 5,475,689 $ 12,113,454
Public Housing Operating and Capital Funds
Program Summary - HACCC owns and manages 1,168 public housing units at 16 different sites
throughout the County. Operating funds for these properties comes from rents collected from tenants as
well as an operating subsidy received from HUD that is designed to cover the gap between rents collected
from the low-income tenants and annual operating expenses. HUD allocates the Capital Fund annually
via a formula to approximately housing authorities. Capital Fund grants may be used for development,
financing, modernization, and management improvements within public housing.
Summary of Difference Between Budgeted and Year-End Financial Positions:
Public Housing &Capital 4th Quarter 3/31/08
Fund Annual Budget (unaudited) Difference
Revenue $ 11,950,014 $ 10,918,003 $ (1,032,011)
Expenditures $ 11,658,887 $ 11,634,558 $ 24,329
To Reserves $ 291,127 $ . (716,555) $ (1,007,682)
Revenue- The decrease versus the budgeted amount of$1,032,011 is a direct result of HUD's reduction
in the prorated percentage of operating subsidy provided to housing authorities.
Expenditures- The slight savings in expenditures of$24,329 is a result of cost savings related to project
based conversion (asset management).
Analysis of Program Reserves:
Reserves Balance
Beginning Balance 4th Quarter 3/31/08 3/31/08
Public Housing &Capital Fund 4/1/07 (unaudited) (unaudited)
Restricted Reserves $ 350,361 $ (198,400) $ 151,961
Unrestricted Reserves $ 554,035 $ (518,156) $ 35,879
Total Reserves $ 904,396 $ (716,556) $ 187,840
Housing Certificate Programs
Program Summary - HACCC administers three separate Housing Certificate Programs; Shelter Plus
Care, Moderate Rehabilitation (Mod Rehab) and Project-based Contract Administration. The Shelter Plus
Care Program provides rental assistance for hard-to-serve homeless persons with disabilities in
connection with supportive services funded from sources outside the program. HACCC assists
approximately 285 clients under this program. The Mod Rehab program was designed in 1978 as an
expansion of the rental certificate program. Mod Rehab was designed to provide low-cost loans for the
rehabilitation of rental units in an effort to upgrade and preserve the nation's housing stock. In return, the
owner agreed to provide long-term affordable housing for low income families. The program was repealed
in 1991 and no new projects are authorized for development. HACCC administers 28 Mod Rehab units.
Under the project-based contract administration program, the Authority contracts with the federal
government to perform HUD's oversight duties. There are approximately 50,000 to 60,000 units of
privately owned project-based Section 8 throughout Northern California that were directly awarded by
HUD and are not part of the local housing authority's program. HUD used to provide oversight of these
properties as it provides oversight of housing authorities. A number of years ago; HUD contracted these
duties out to local housing authorities, paying them a fee to perform some of HUD's oversight duties.
HACCC contracts with HUD to administer 5 project-based contract administration units.
Summary of Difference Between Budgeted and Year-End Financial Positions:
Housing Certificate 4th Quarter 3/31/08
Programs Annual Budget (unaudited) Difference
Revenue $ 3,308,860 $ 3,144,886 $ (163,974)
Expenditures $ 3,224,101 $ 3,232,114 $ (8,013)
To Reserves $ 84,759 $ (87,228) $ (171,987)
Revenue - The negative difference in the amount of$163,974 was primarily a result of reduced HAP
funding provided by HUD.
Expenditures - The negative difference in the amount of$8,013 was primarily a result of a fund transfer to
the HCV program.
Analysis of Reserves:
4th Quarter Reserves
Beginning 3/31/08 Balance 3/31/08
Housing Certificate Programs Balance 4/1/07 (unaudited) (unaudited)
Restricted Reserves $ (273,917) $ 300,476 $ 26,559
Unrestricted Reserves $ 415,343 $ (387,703) $ 27,640
Total Reserves $ 141,426 $ (87,227) $ 54,199
State and Local Programs
Program Summary- HACCC administers a variety of programs and activities that are either not HUD
funded or that involve non-restricted HUD funds. Currently, HACCC is the managing general partner for
two tax credit projects (DeAnza Gardens & Casa Del.Rio) and contracts with the County and the City of
Antioch to run their rental rehabilitation programs. The Authority will also begin to realize revenue and
expenditures in this category as the switch to asset-based.management begins.
Summary of Difference Between Budgeted and Year-End Financial Positions:
4th Quarter 3/31/08
State & Local Programs Annual Budget (unaudited) Difference
Revenue $ 5,206,442 $ 3,853,562 $ (1,352,880)
Expenditures $ 5,331,556 $ 4,194,318 $ 1,137,238
To Reserves $ (125,114) $ (340,756) $ (215,642)
Revenue - The loss in projected revenue in the amount of $1,352,880 was a result of two factors. A switch
from crediting administrative revenues for incoming portable vouchers from state and local programs to
the HCV program accounted for most of the difference, specifically, $1,215,849. The remaining $137,031
is due to the loss of project-based management fees for units that were off line or vacant in the public
housing program.
Expenditures — Most of the $1,137,238 savings versus projected expenditures was due to incoming
portables being absorbed into the Authority's HCV program. This accounted for $924,613 of the savings,
while the remaining difference is because of operational cost reductions in the amount of $195,876.
Analysis of Reserves:
Reserves Balance
Beginning Balance 4th Quarter 3/31/08 3/31/08
State& Local Programs 4/1/07 (unaudited) (unaudited)
Restricted Reserves $ 1,347,805 $ (62,786) $ 1,285,019
Unrestricted Reserves $ 1,523,767 $ (277,970) $ 1,245,797
Total Reserves $ 2,871,572 $ (340,756) $ 2,530,816
IV. CONSEQUENCES OF NEGATIVE ACTION
None. Information item only.