HomeMy WebLinkAboutMINUTES - 09162008 - SD.3 (2) TO: BOARD OF COMMISSIONERS Housing
Authority FROM: Joseph Villarreal Auy of
Executive Director Contra Costa
DATE: September 16, 2008 County
SUBJECT: FY 2008-2009 1st Quarter Budget Report
SPECIFIC REQUEST(S)OR RECOMMENDATION(S)&BACKGROUND AND JUSTIFICATION
RECOMMENDATION:
ACCEPT the FY 2008-2009 1 st Quarter (Unaudited) Budget Report for the period ending 6/30/08
FINANCIAL IMPACT:
None. Informational item only.
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 1st quarter of the fiscal year ending 3/31/09.
The report begins with a summary of the Authority's overall financial position. Following 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.
AGENCY OVERVIEW:
Budget Report
1st Quarter
Actuals 6/30/08 Estimate to Annual
HACCC Agency Summary Annual Budget (unaudited) Complete FY Estimate Variance
Revenue $ 89,619,425 $ 24,352,282 $ 67,214,569 $ 91,566,851 $ 1,947,426
Expenditures $ 95,071,657 $ 23,356,726 $ 71,303,743 1 $ 94,660,469 $ 411,188
To Reserves $ 5,452,232 $ 995,556 $ 4,089,174 $ 3,093,618 $ 2,358,614
HACCC's actual revenue compared to that budgeted increased by $1,947,426 primarily because HUD has not
yet begun to recapture excess Housing Assistance Payments (HAP)funding in the Housing Choice Voucher
program as staff had projected. Additionally, HUD has not finalized the funding for the Public Housing
operating subsidy. Therefore, the amounts reported to date are on a cash basis and are not necessarily what
the Authority will ultimately be allocated by HUD.
The $411,188 savings in expenditures is a result of both cost savings measures implemented by the
Authority and costs that are currently running below the budgeted amount. The cost savings
measures accounted for $184,229 in savings in areas such as labor costs, unit turnover_cpsts,
CONTINUED ON ATTACHMENT: X YES SIGNATURE:
Joseph Viillarreal,EXECUTIVE DIRECTOR
RECOMMENDATION OF COUNTY ADMINISTRATOR RECOMMENDATION OF BOARD COMMITTEE
APPROVE OTHER
SIGNATURE (S):
ACTION OF BOARD ON 'j A PROVED AS RECOMME ED ��ER
VOTE OF COMMISSIONERS I HEREBY CERTIFY THAT THIS IS A TRUE AND CORREC'
COPY OF AN ACTION TAKEN AND ENTERED ON MINUTES OI
THE BOARD OF COMMISSIONERS ON THE DATE SHOWN.
UNANIMOUS(ABSENT )
AYES: NOES:
ABSENT: ABSTAIN: Ll_ypi
Contact: Judy Hayes,957-8028
��Cc: County Administration ATTESTED
Auditor-Controller A I TW.A,`c'LERK OF THE BOARD OF COMMISSIONERS
BY: '� DEPUTY
H:\Board Orders\September 08\130-1 st Qtr Financial Report 2009 doc(1)(3).d
1st Qtr Budget Report
September 15, 2008
Page 2 of 4
management fees charged to public housing, collection loss write-offs, and tenant services in the
Shelter Plus Care program. The remaining $266,959 in savings are related to lower costs in areas
such as utilities, security, trash collection, telephone, inspection services, Management Information
Systems (MIS) contracting and HAP payments. While the $184,229 in savings is real, many of the
apparent $266,959 in savings are illusory and reflect late billings. Staff expects these costs to run
close to budget once all billings have been received.
Staff is projecting an additional short-term cost savings over the next quarter due to labor turnover
and reduced MIS services in the amount of$112,000.
Analysis of Agency Reserves
Beginning Balance 4/1/08 1st Quarter 6/30/08 Reserves Balance
Program unaudited unaudited 6/30/08 unaudited
Total Reserves $ 14,886,310 $ 995,557 $ 15,881,867
Restricted Reserves
Housing Choice Vouchers $ 12,113,940 $ 647,959 $ 12,761,899
Public Housing&Capital Fund $ 151,961 $ 133,780 $ 285,741
State&Local Programs $ 1,285,019 $ (34,832) $ 1,250,187
Housing Certficates Programs $ 26,559 $ 9,016 $ 17,543
Total Restricted Reserves $ 13,577,479 $ 737,891 $ 14,315,370
Unrestricted Reserves
Housing Choice Vouchers $ (486) $ 63,261 $ 62,775
Public Housing&Capital Fund $ 35,880 $ 185,930 $ 221,810
State& Local Programs $ 1,245,797 $ 397 $ 1,246,194
Housing Certficates Programs $ 27,640 $ 8,078 $ 35,718
Total Unrestricted Reserves I $ 1,308,831 $ 257,666 1 $ 1,566,497
.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 1s`Quarter Actual:
1st Quarter
Actuals 6/30/08 Estimate to Annual
Housing Choice Vouchers Annual Budget (unaudited) Complete FY Estimate Variance
Revenue $ 71,447,690 $ 19,978,309 $ 53,585,768 $ 73,564,077 $ 2,116,387
Expenditures $ 77,054,029 $ 19,267,089 $ 57,790,522 1 $ 77,057,611 1 $ (3 58:2
To Reserves $ 5,606,339 $ 711,220 $ 4,204,754 $ 3,493,534 $ 2,112,805
Revenue -The positive variance of$2,116,387 is related to excess HAP funding that staff budgeted to be
recaptured by HUD that has not taken place as of yet. Any excess HAP funding will be retained in restricted
reserves.
Expenditures -The negative difference of$3,582 was determined to be immaterial.
Analysis of Program Reserves:
Reserves Balance
Beginning Balance 1st Quarter 6/30/08 6/30/08
Housing Choice Vouchers 4/1/08 (unaudited) (unaudited) (unaudited)
Restricted Reserves $ 12,113,940 $ 647,959 $ 12,761,899
Unrestricted Reserves $ 486 $ 63,261 $ 62,775
Total Reserves $ 12,113,454 $ 711,220 $ 12,824,674
1 st Qtr Budget Report
September 15, 2008
Page 3 of 4
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 come 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 1St Quarter Actual:
Public Housing & Capital 1st Quarter Estimate to Annual
Fund Annual Budget Actuals 6/30/08 Complete FY Estimate Variance
Revenue $ 11,110,570 $ 2,785,642 $ 8,332,928 $ 11,118,570 $ 8,000
Expenditures $ 11,076,911 $ 2,465,932 $ 8,307,683 $ 10,773,615 $ 303,296
To Reserves $ 33,659 $ 319,710 $ 25,244 $ 344,954 $ 311,295
Revenue-The positive variance of$8,000 was non material, however the Agency still has not been notified of
the actual funding level for this year. The numbers reported for the first quarter revenue are reported on a cash
basis.
Expenditures- The positive variance of$303,296 was related to cost and budget savings that were
outline in the Agency summary above.
Analysis of Program Reserves:
Reserves Balance
Beginning Balance 4th Quarter 3131/08 3/31/08
Public Housing &Capital Fund 4/1/08(unaudited) (unaudited) (unaudited)
Restricted Reserves $ 151,961 $ 133,780 $ 285,741
Unrestricted Reserves $ 35,879 $ 185,930 $ 221,809
Total Reserves $ 187,840 $ 319,710 $ 507,550
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 1St Quarter Actual:
1st Quarter
Housing Certificates Actuals 6/30/08 Estimate to Annual
Program Annual Budget (unaudited) Complete FY Estimate Variance
Revenue $ 3,188,816 $ 702,535 $ 2,391,612 $ 3,094,147 $ (94,669)
Expenditures $ 3,194,087 $ 703,474 $ 2,395,565 $ 3,099,039 $ 95,048
To Reserves $ (5,271) $ (939) $ (3,953) $ (4,892) $ 379
Revenue -The negative difference in the amount of$94,669 was primarily a result of reduced HAP funding
provided by HUD.
*�_1 st Qtr Budget Report
September 15, 2008
Page 4 of 4
Expenditures -The positive difference in the amount of$95,048 was primarily a result of a reduced HAP
incurred.
Analysis of Reserves:
Beginning 1st Quarter Reserves
Balance 4/1/08 6/30/08 Balance 6/30/08
Housing Certificate Programs (unaudited) (unaudited) (unaudited)
Restricted Reserves $ 26,559 $ (9,016) $ 17,543
Unrestricted Reserves $ 27,640 1 $ 8,078 $ 35,718
Total Reservesl $ 54,199 1 $ 938 $ 53,261
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 1s`Quarter Actual:
1st Quarter
Actuals 6/30/08 Estimate to Annual
State& Local Programs Annual Budget (unaudited) CompleteFY Estimate Variance
Revenue $ 3,872,349 $ 885,797 $ 2,914,362 $ 3,800,159 $ (72,190)
Expenditures $ 3,746,631 $ 920,232 $ 2,809,973 $ 3,730,205 $ 16,426
To Reserves $ 125,718 $ 34,435 $ 104,389 $ 69,954 $ 55,765
Revenue -The negative variance in revenue was primarily related to unreimbursed fees for services under
asset-based management.
Expenditures—The positive variance in expenditures were a direct result of cost reduction and budget savings
as outlined in the Agency summary outlined above.
Analysis of Reserves:
Reserves Balance
Beginning Balance 1st Quarter 6/30/08 3/31/08
State& Local Programs 4/1/08 (unaudited) (unaudited) (unaudited)
Restricted Reserves $ 1,285,019 $ (34,832) $ 1,250,187
Unrestricted Reserves $ 1,245,797 $ 397 $ 1,246,194
Total Reservesl $ 2,530,816 1 $ 34,43 $ 2,496,381