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HomeMy WebLinkAboutMINUTES - 09122017 - (2)    CALENDAR FOR THE BOARD OF COMMISSIONERS BOARD CHAMBERS ROOM 107, COUNTY ADMINISTRATION BUILDING 651 PINE STREET MARTINEZ, CALIFORNIA 94553-1229 FEDERAL D. GLOVER, CHAIR KAREN MITCHOFF, VICE CHAIR JOHN GIOIA CANDACE ANDERSEN DIANE BURGIS FAY NATHANIEL JANNEL GEORGE-ODEN JOSEPH VILLARREAL, EXECUTIVE DIRECTOR, (925) 957-8000 PERSONS WHO WISH TO ADDRESS THE BOARD DURING PUBLIC COMMENT OR WITH RESPECT TO AN ITEM THAT IS ON THE AGENDA, WILL BE LIMITED TO TWO (2) MINUTES. The Board Chair may reduce the amount of time allotted per speaker at the beginning of each item or public comment period depending on the number of speakers and the business of the day.  Your patience is appreciated.   A closed session may be called at the discretion of the Board Chair. Staff reports related to open session items on the agenda are also accessible on line at  www.co.contra-costa.ca.us. ANNOTATED AGENDA & MINUTES September 12, 2017                  1:30 P.M. Convene and call to order.    Called to order at 2:45 p.m.   CONSIDER CONSENT ITEMS: (Items listed as C.1 through C.3 on the following agenda ) - Items are subject to removal from the Consent Calendar by request from any Commissioner or on request for discussion by a member of the public. Items removed from the Consent Calendar will be considered with the Discussion Items.   DISCUSSION ITEMS   D. 1 CONSIDER Consent Items previously removed.    There were no items removed for discussion.   September 12, 2017 Contra Costa County Housing Authority 1 D. 2 PUBLIC COMMENT (2 Minutes/Speaker)    There were no requests to speak at Public Comment.   ADJOURN    Adjourned the meeting at 2:50 p.m.   CONSENT ITEMS:   C.1  ACCEPT report on the expenditure of Public Housing Capital Funds for required relocation moving costs that will be provided to the residents of the Las Deltas public housing development in North Richmond as part of the process to vacate the property and prepare it for disposition under HUD's Rental Assistance Demonstration (RAD) program.          Commissioner John Gioia AYE Commissioner Candace Andersen AYE Commissioner Diane Burgis AYE Commissioner Karen Mitchoff AYE Commissioner Federal D. Glover AYE Commissioner Fay Nathaniel ABSENT Commissioner Jannel George-Oden ABSENT   C.2  ACCEPT the 1st Quarter (Unaudited) Budget Report for the period ending June 30, 2017.      Commissioner John Gioia AYE Commissioner Candace Andersen AYE Commissioner Diane Burgis AYE Commissioner Karen Mitchoff AYE Commissioner Federal D. Glover AYE Commissioner Fay Nathaniel ABSENT Commissioner Jannel George-Oden ABSENT   C.3  RECEIVE the Housing Authority of the County of Contra Costa’s investment report for the quarter ending June 30, 2017.          Commissioner John Gioia AYE Commissioner Candace Andersen AYE Commissioner Diane Burgis AYE   September 12, 2017 Contra Costa County Housing Authority 2 Commissioner Karen Mitchoff AYE Commissioner Federal D. Glover AYE Commissioner Fay Nathaniel ABSENT Commissioner Jannel George-Oden ABSENT   GENERAL INFORMATION   Persons who wish to address the Board of Commissioners should complete the form provided for that purpose and furnish a copy of any written statement to the Clerk.   All matters listed under CONSENT ITEMS are considered by the Board of Commissioners to be routine and will be enacted by one motion. There will be no separate discussion of these items unless requested by a member of the Board or a member of the public prior to the time the Commission votes on the motion to adopt. Persons who wish to speak on matters set for PUBLIC HEARINGS will be heard when the Chair calls for comments from those persons who are in support thereof or in opposition thereto. After persons have spoken, the hearing is closed and the matter is subject to discussion and action by the Board. Comments on matters listed on the agenda or otherwise within the purview of the Board of Commissioners can be submitted to the office of the Clerk of the Board via mail:  Board of Commissioners, 651 Pine Street Room 106, Martinez, CA 94553; by fax:  925-335-1913; or via the County’s web page: www.co.contracosta.ca.us, by clicking “Submit Public Comment” (the last bullet point in the left column under the title “Board of Commissioners.”) The County will provide reasonable accommodations for persons with disabilities planning to attend Board meetings who contact the Clerk of the Board at least 24 hours before the meeting, at (925) 335-1900; TDD (925) 335-1915. An assistive listening device is available from the Clerk, Room 106.  Copies of taped recordings of all or portions of a Board meeting may be purchased from the Clerk of the Board.  Please telephone the Office of the Clerk of the Board, (925) 335-1900, to make the necessary arrangements. Applications for personal subscriptions to the monthly Board Agenda may be obtained by calling the Office of the Clerk of the Board, (925) 335-1900. The monthly agenda may also be viewed on the County’s internet Web Page: www.co.contra-costa.ca.us The Closed session agenda is available each month upon request from the Office of the Clerk of the Board, 651 Pine Street, Room 106, Martinez, California, and may also be viewed on the County’s Web Page.    AGENDA DEADLINE: Thursday, 12 noon, 12 days before the Tuesday Board meetings. September 12, 2017 Contra Costa County Housing Authority 3 RECOMMENDATIONS ACCEPT report on the expenditure of Public Housing Capital Funds for required relocation moving costs that will be provided to the residents of the Las Deltas public housing development in North Richmond as part of the process to vacate the property and prepare it for disposition under HUD's Rental Assistance Demonstration (RAD) program. BACKGROUND As part of the RAD conversion of the Las Deltas public housing units, HACCC is required to assist the families living at Las Deltas to find new, affordable places to live. All of the residents living at Las Deltas at the time of conversion, must be assisted under the laws and regulations set forth in the Uniform Relocation Act, California Relocation Assistance Law and the California Relocation Assistance and Real Property Acquisition Guidelines. It is expected that most, if not all, of the tenants at Las Deltas will move to another public housing property or will relocate using a housing choice voucher. At least one family has expressed interest in buying their unit. HUD regulations require that prior to the commencement of any relocation actions by a housing authority, the Board of Commissioners and HUD must approve the relocation plan. On July 19, 2016 the Board approved the procurement of relocation services from Overland, Pacific & Cutler (OPC) to provide relocation services to the residents of Las Deltas for a fee not to exceed $301,753 and on June 13, 2017 the Board approved the Relocation Plan for Las Deltas which included a total estimated relocation budget of approximately $1.3 million. The Board also approved a total relocation budget of approximately $1.4 million in HACCC's current PHA Annual Plan CFP budget on December 6, 2016. This amount was slightly higher than estimated in the Relocation Plan as some families had left the property during the period between approval of the two plans. Action of Board On: 09/12/2017 APPROVED AS RECOMMENDED OTHER Clerks Notes: VOTE OF COMMISSIONERS AYE:John Gioia, Commissioner Candace Andersen, Commissioner Diane Burgis, Commissioner Karen Mitchoff, Commissioner Federal D. Glover, Commissioner ABSENT:Fay Nathaniel, Commissioner Jannel George-Oden, Commissioner Contact: 925-957-8028 I hereby certify that this is a true and correct copy of an action taken and entered on the minutes of the Board of Supervisors on the date shown. ATTESTED: September 12, 2017 Joseph Villarreal, Executive Director By: June McHuen, Deputy cc: C.1 To:Contra Costa County Housing Authority Board of Commissioners From:Joseph Villarreal, Housing Authority Date:September 12, 2017 Contra Costa County Subject:PAYMENT OF RELOCATION MOVING COSTS FOR RESIDENTS OF LAS DELTAS AS PART OF THE RENTAL ASSISTANCE DEMONSTRATION PROGRAM September 12, 2017 Contra Costa County Housing Authority 4 BACKGROUND (CONT'D) > Under relocation law, HACCC must provide residents who must move as a result of the conversion of Las Deltas from the public housing program with the following: Advisory Services. This includes referrals to comparable and suitable replacement homes, the inspection of replacement housing to ensure that it meets established standards, help in preparing claim forms for relocation payments and other assistance to minimize the impact of the move. Payment for Moving Expenses. Las Deltas residents may choose either a: Payment for their Actual Reasonable Moving and Related Expenses, or Fixed Moving Expense and Dislocation Allowance, or A combination of both, based on circumstances. Replacement Housing Assistance. If they do not wish to continue in public housing or transfer to the voucher program, Las Deltas residents can receive this assistance in order to rent, or if they prefer and are able, to buy a comparable or suitable replacement home. To do this they may choose either: Rental Assistance, or Purchase Assistance. OPC will provide the majority of the advisory services by providing personal search assistance to the families who are moving and will also help ensure that HACCC meets its legal obligations surrounding relocation. Most, if not all, of the replacement housing assistance will be provided through the public housing and housing choice voucher programs. This Board Order is designed to clarify how payment for moving expenses will be provided to all eligible Las Deltas families. Among other expenses, moving costs can include security deposits, utility transfer fees and the costs to hire movers. In order to ensure that OPC can assist Las Deltas residents in a timely manner, HACCC and OPC have established a Trust Account administered by OPC and funded by HACCC using the approved CFP budget of approximately $1 million for direct relocation costs for Las Deltas families. It is imperative that we expedite payments of moving costs in the tight rental market faced by our families, especially security deposits and other moneys due to new landlords. The trust will be funded in increments. The initial increment was $150,000. OPC will provide HACCC with monthly invoices to reconcile the expenditures from the trust. Additionally, OPC conducted a competitive bid process to identify a moving company that will serve the families of Las Deltas. OPC entered into a subcontract agreement with Chipman Movers to pack, move and, if needed, store the families' belongings. FISCAL IMPACT Funding of approximately $1.4 million is provided in the Housing Authority's (HACCC) current PHA Annual Plan Capital Fund Program (CFP) budget for the cost of the relocation consultants and all direct relocation costs that will be provided to families. Of this amount, $1 million is targeted for direct relocation costs for the families of Las Deltas. CONSEQUENCE OF NEGATIVE ACTION None. Information item only. CLERK'S ADDENDUM ATTACHMENTS Relocation Moving Costs September 12, 2017 Contra Costa County Housing Authority 5 HOUSING AUTHORITY OF THE COUNTY OF CONTRA COSTA TO: BOARD OF COMMISSIONERS FROM: Joseph Villarreal, Executive Director DATE: September 12, 2017 SUBJECT: PAYMENT OF RELOCATION MOVING COSTS FOR RESIDENTS OF LAS DELTAS AS PART OF THE RENTAL ASSISTANCE DEMONSTRATION PROGRAM SPECIFIC REQUEST (S) OR RECOMMENDATION (S) & BACKGROUND AND JUSTIFICATION I. RECOMMENDED ACTION: ACCEPT report on the expenditure of Public Housing Capital Funds for required relocation moving costs that will be provided to the residents of the Las Deltas public housing development in North Richmond as part of the process to vacate the property and prepare it for disposition under HUD's Rental Assistance Demonstration (RAD) program. II. FINANCIAL IMPACT: Funding of approximately $1.4 million is provided in the Housing Authority's (HACCC) current PHA Annual Plan Capital Fund Program (CFP) budget for the cost of the relocation consultants and all direct relocation costs that will be provided to families. Of this amount, $1 million is targeted for direct relocation costs for the families of Las Deltas. III. REASONS FOR RECOMMENDATION/BACKGROUND As part of the RAD conversion of the Las Deltas public housing units, HACCC is required to assist the families living at Las Deltas to find new, affordable places to live. All of the residents living at Las Deltas at the time of conversion, must be assisted under the laws and regulations set forth in the Unif orm Relocation Act, California Relocation Assistance Law and the California Relocation Assistance and Real Property Acquisition Guidelines. It is expected that most, if not all, of the tenants at Las Deltas will move to another public housing property or will relocate using a housing choice voucher. At least one family has expressed interest in buying their unit. HUD regulations require that prior to the commencement of any relocation actions by a housing authority, the Board of Commissioners and HUD must approve the relocation plan. On July 19, 2016 the Board approved the procurement of relocation services from Overland, Pacific & Cutler (OPC) to provide relocation services to the residents of Las Deltas for a fee not to exceed $301,753 and on June 13, 2017 the Board approved the Relocation Plan for Las Deltas which included a total estimated relocation budget of approximately $1.3 million. The Board also approved a total relocation budget of approximately $1.4 million in HACCC's current PHA Annual Plan CFP budget on December 6, 2016. This amount was slightly higher than estimated in the Relocation Plan as some families had left the property during the period between approval of the two plans. Under relocation law, HACCC must provide residents who must move as a result of the conversion of Las Deltas from the public housing program with the following: Advisory Services. This includes referrals to comparable and suitable replacement homes, the inspection of replacement housing to ensure that it meets established standards, help in preparing claim forms for relocation payments and other assistance to minimize the impact of the move. September 12, 2017 Contra Costa County Housing Authority 6 Payment for Moving Expenses. Las Deltas residents may choose either a: o Payment for their Actual Reasonable Moving and Related Expenses, or o Fixed Moving Expense and Dislocation Allowance, or o A combination of both, based on circumstances. Replacement Housing Assistance. If they do not wish to continue in public housing or transfer to the voucher program, Las Deltas residents can receive this assistance in order to rent, or if they prefer and are able, to buy a comparable or suitable replacement home. To do this they may choose either: o Rental Assistance, or o Purchase Assistance. OPC will provide the majority of the advisory services by providing personal search assistance to the families who are moving and will also help ensure that HACCC meets its legal obligations surrounding relocation. Most, if not all, of the replacement housing assistance will be provided through the public housing and housing choice voucher programs. This Board Order is designed to clarify how payment for moving expenses will be provided to all eligible Las Deltas families. Among other expenses, moving costs can include security deposits, utility transfer fees and the costs to hire movers. In order to ensure that OPC can assist Las Deltas residents in a timely manner, HACCC and OPC have established a Trust Account administered by OPC and funded by HACCC using the approved CFP budget of approximately $1 million for direct relocation costs for Las Deltas families. It is imperative that we expedite payments of moving costs in the tight rental market faced by our families, especially security deposits and other moneys due to new landlords. The trust will be funded in increments. The initial increment was $150,000. OPC will provide HACCC with monthly invoices to reconcile the expenditures from the trust. Additionally, OPC conducted a competitive bid process to identify a moving company that will serve the families of Las Deltas. OPC entered into a subcontract agreement with Chipman Movers to pack, move and, if needed, store the families' belongings. V. CONSEQUENCES OF NEGATIVE ACTION: None. Information item only. September 12, 2017 Contra Costa County Housing Authority 7 RECOMMENDATIONS ACCEPT the 1st Quarter (Unaudited) Budget Report for the period ending 6/30/17. BACKGROUND This report is intended to provide the Board of Commissioners with an overview of the financial position of the Housing Authority of the County of Contra Costa (HACCC) for the 1st quarter period ending 6/30/2017. The report begins with a summary of HACCC’s overall fiscal standing at the end of the quarter. The overall numbers are then broken down by individual funds. Each fund overview includes a brief program summary and an explanation of the variance between budgeted and actual performance. AGENCY OVERVIEW: HACCC's overall budget position for the quarter ending 6/30/17 is shown in the chart below. Activity in Section 8 Voucher and Housing Certificate programs had the most significant impact on HACCC's budget. The projected revenue increase of $2,723,102 is primarily a result of the rapid increase in rents in the Section 8 Voucher and Housing Certificates programs which accounted for $2,461,155 or 90% of the increase. Rent increases for these programs were over $3.4 million during this period. Projected expenditure increase of $2,756,234 is a result of the rent increases referenced above less a major cost adjustment benefiting all of the federal programs in implementing GASB (General Accounting Standards Board) -75 Action of Board On: 09/12/2017 APPROVED AS RECOMMENDED OTHER Clerks Notes: VOTE OF COMMISSIONERS AYE:John Gioia, Commissioner Candace Andersen, Commissioner Diane Burgis, Commissioner Karen Mitchoff, Commissioner Federal D. Glover, Commissioner ABSENT:Fay Nathaniel, Commissioner Jannel George-Oden, Commissioner Contact: 925-957-8028 I hereby certify that this is a true and correct copy of an action taken and entered on the minutes of the Board of Supervisors on the date shown. ATTESTED: September 12, 2017 Joseph Villarreal, Executive Director By: June McHuen, Deputy cc: C.2 To:Contra Costa County Housing Authority Board of Commissioners From:Joseph Villarreal, Housing Authority Date:September 12, 2017 Contra Costa County Subject:FY 2017-2018 1st QUARTER BUDGET REPORT September 12, 2017 Contra Costa County Housing Authority 8 BACKGROUND (CONT'D) > Accounting and Financial Reporting for Post-Employment Benefits Other Than Pensions (OPEB). In accord with OMB requirements, OPEB obligations are now recorded under the management fund HACCC's State Local Programs. HACC Agency Summary Annual Budget 1st Quarter Actual 6/30/17 Remaining FY Estimate Annual Total Variance Revenue $ 114,281,783 $ 31,293,548 $ 85,711,337 $ 117,004,885 $ 2,723,102 Expenditures $ 113,496,710 $ 31,130,413 $ 85,122,533 $ 116,252,944 $(2,756,234) $ 785,073 $ 163,135 $ 588,805 $ 751,941 The net change to reserve totals for the end of this quarter was a gain of $163,135. The net gain was a result of a decrease to restricted reserves in the amount of $854,852 and an unrestricted reserve increase of $1,017,987 as shown in the summary below. Analysis of Agency Reserves Beginning Balance 4/1/17 (Unaudited) 1st Quarter ending 6/30/17 (Unaudited) Reserve Balance period ending 6/30/17 (Unaudited) Total Reserves $ 15,980,003 $ 163,135 $ 16,143,138 Restricted Reserves Housing Choice Vouchers $ 5,802,124 $ (894,648)$ 4,907,476 Public Housing & Cap. Funds $ -0-$ -0-$ -0- State & Local Programs $ 1,884,156 $ 39,796 $ 1,923,952 Housing Certificates Programs $ -0-$ -0-$ -0- Total Restricted Reserves $ 7,686,280 $ (854,852)$ 6,831,428 Unrestricted Reserves Housing Choice Vouchers $ 3,908,751 $ 365,700 $ 4,274,451 Public Housing & Cap. Funds $ 1,295,242 $ 479,306 $ 1,774,548 State & Local Programs $ 3,089,730 $ 172,981 $ 3,262,711* Housing Certificates Programs $ -0- .$ -0- .$ -0- . Total Unrestricted Reserves $ 8,293,723 $ 1,017,987 $ 9,311,710 * Does not include unfunded pension liability of $10.8 million. 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 reserves that can be used freely are unrestricted reserves within the State and Local Programs that are not tied to the tax credit properties. These reserves can be used to support any of HACCC’s programs. FISCAL IMPACT None. Information item only. ATTACHMENTS 1st Quarter Budget Report September 12, 2017 Contra Costa County Housing Authority 9 C:\DOCUME~1\DESTIN~1\LOCALS~1\Temp\BCL Technologies\easyPDF 7\@BCL@B8030CC3\@BCL@B8030CC3.docx HOUSING AUTHORITY OF THE COUNTY OF CONTRA COSTA TO: BOARD OF COMMISSIONERS FROM: Joseph Villarreal, Executive Director DATE: SUBJECT: FY 2017-2018 1st QUARTER BUDGET REPORT SPECIFIC REQUEST(S) OR RECOMMENDATION(S) & BACKGROUND AND JUSTIFICATION RECOMMENDATION: ACCEPT the 1st Quarter (Unaudited) Budget Report for the period ending 6/30/17. FINANCIAL IMPACT: None. Information 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 the County of Contra Costa (HACCC) for the 1st quarter period ending 6/30/2017. The report begins with a summary of HACCC’s overall fiscal standing at the end of the quarter. The overall numbers are then broken down by individual funds. Each fund overview includes a brief program summary and an explanation of the variance between budgeted and actual performance. AGENCY OVERVIEW: Budget Report HACCC's overall budget position for the quarter ending 6/30/17 is shown in the chart below. Activity in Section 8 Voucher and Housing Certificate programs had the most significant impact on HACCC's budget. The projected revenue increase of $2,723,102 is primarily a result of the rapid increase in rents in the Section 8 Voucher and Housing Certificates programs which accounted for $2,461,155 or 90% of the increase. Rent increases for these programs were over $3.4 million during this period. Projected expenditure increase of $2,756,234 is a result of the rent increases referenced above less a major cost adjustment benefiting all of the federal programs in implementing GASB (General Accounting Standards Board) - 75 Accounting and Financial Reporting for Postemployment Benefits Other Than Pensions (OPEB). In accord with OMB requirements, OPEB obligations are now recorded under the management fund HACCC's State Local Programs. HACC Agency Summary Annual Budget 1st Quarter Actual 6/30/17 Remaining FY Estimate Annual Total Variance Revenue $ 114,281,783 $ 31,293,548 $ 85,711,337 $ 117,004,885 $ 2,723,102 Expenditures $ 113,496,710 $ 31,130,413 $ 85,122,533 $ 116,252,944 $(2,756,234) $ 785,073 $ 163,135 $ 588,805 $ 751,941 The net change to reserve totals for the end of this quarter was a gain of $163,135. The net gain was a result of a decrease to restricted reserves in the amount of $854,852 and an unrestricted reserve increase of $1,017,987 as shown in the summary below. September 12, 2017 Contra Costa County Housing Authority 10 1st Qtr Budget Report Page 2 of 5 Analysis of Agency Reserves Beginning Balance 4/1/17 (Unaudited) 1st Quarter ending 6/30/17 (Unaudited) Reserve Balance period ending 6/30/17 (Unaudited) Total Reserves $ 15,980,003 $ 163,135 $ 16,143,138 Restricted Reserves Housing Choice Vouchers $ 5,802,124 $ (894,648) $ 4,907,476 Public Housing & Cap. Funds $ -0- $ -0- $ -0- State & Local Programs $ 1,884,156 $ 39,796 $ 1,923,952 Housing Certificates Programs $ -0- $ -0- $ -0- Total Restricted Reserves $ 7,686,280 $ (854,852) $ 6,831,428 Unrestricted Reserves Housing Choice Vouchers $ 3,908,751 $ 365,700 $ 4,274,451 Public Housing & Cap. Funds $ 1,295,242 $ 479,306 $ 1,774,548 State & Local Programs $ 3,089,730 $ 172,981 $ 3,262,711* Housing Certificates Programs $ -0- . $ -0- . $ -0- . Total Unrestricted Reserves $ 8,293,723 $ 1,017,987 $ 9,311,710 * Does not include unfunded pension liability of $10.8 million. 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 reserves that can be used freely are unrestricted reserves within the State and Local Programs that are not tied to the tax credit properties. These reserves can be used to support any of HACCC’s programs. FUNDS OVERVIEW: Housing Choice Vouchers Program Summary - The HCV program provides 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 HAP contract with the property owner. HAP is paid by HACCC directly to the owner. Through its HCV program, HACCC is authorized to provide affordable housing assistance to a maximum of 6,910 families. However, funding constraints limited program utilization to approximately 6,300 families. Summary of Difference Between Budgeted and Annual Estimate: Revenue – The projected revenue increase of $2,252,049 is a direct result of increases in rental costs in the County. These rental cost increases were confirmed by HUD after an appeal by housing agencies in Alameda and Contra Costa counties. As a result of the new study funded by local agencies, HUD approved an increase of up to 33% in the FMR for the two counties. Expenditures - The projected increase in expenditures of $3,010,967 was a result of the $3.4 million rental rate increase that HACCC has experienced. HACCC has a savings in expenditures due to the GASB cost adjustment concerning OPEB that has benefitted all of the federal programs. Housing Choice Annual Budget 1st Quarter Actual Remaining FY Annual Total Variance September 12, 2017 Contra Costa County Housing Authority 11 1st Qtr Budget Report Page 3 of 5 Vouchers 6/30/17 (Unaudited) Estimate Revenue $ 92,564,347 $ 25,393,136 $ 69,423,260 $ 94,816,396 $ 2,252,049 Expenditures $ 91,644,464 $ 25,922,083 $ 68,733,348 $ 94,655,431 $ (3,010,967) $ 919,883 $ (528,947) $ 689,912 $ 160,965 Analysis of Program Reserves: Public Housing Operating and Capital Funds Program Summary - HACCC owns and manages 1,179 public housing units at 16 different sites throughout the County. Operating funds for these properties come from tenant rents 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 formula to approximately 3,200 housing authorities. Capital Fund grants may be used for development, financing, modernization, and management improvements within public housing. Summary of Difference Between Budgeted and Annual Estimate: Revenue – The projected increase in revenue of $359,515 is a result of increased HUD funding over the annual budgeted amount for Capital Fund in the amount of $259,515 and an increase in HUD operating subsidy of $100,00. Expenditures - The projected decrease in expenditures of $236,686 is a result of implementing GASB (General Accounting Standards Board) -75 Accounting and Financial Reporting for Postemployment Benefits Other Than Pensions. Public Housing Operating and Capital Fund Annual Budget 1st Quarter Actual 6/30/17 (Unaudited) Remaining FY Estimate Annual Total Variance Revenue $ 11,053,573 $ 3,122,909 $ 8,290,180 $ 11,413,088 $ 359,515 Expenditures $ 11,521,156 $ 2,643,603 $ 8,640,867 $ 11,284,470 $ 236,686 $ (467,583) $ 479,306 $ (350,687) $ 128,618 Housing Choice Vouchers Beginning Balance 4/1/17 (Unaudited) 1st Quarter 6/30/17 (Unaudited) Reserve Balance period ending 6/30/17 (Unaudited) Restricted Reserves $ 5,802,124 $ (894,648) $ 4,907,476 Unrestricted Reserves $ 3,908,751 $ 365,700 $ 4,274,451 Total Reserves $ 9,710,875 $ (528,948) $ 9,181,927 September 12, 2017 Contra Costa County Housing Authority 12 1st Qtr Budget Report Page 4 of 5 Analysis of Program Reserves: Public Housing & Capital Fund Beginning Balance 4/1/17 (Unaudited) 1st Quarter 6/30/17 (Unaudited) Reserve Balance period ending 6/30/17 (Unaudited) Restricted Reserves $ -0- $ -0- $ -0- Unrestricted Reserves $ 1,295,242 $ 479,306 $ 1,774,548 Total Reserves $ 1,295,242 $ 479,306 $ 1,774,548 State and Local Programs Program Summary - HACCC administers a variety of programs and activities that are either not funded by HUD 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 also has a contract with the City of Antioch to run their rental rehabilitation program. HACCC receives management fees for administering the Public Housing and HCV programs under HUD’s asset-management model. In addition, the State and Local Program manages the employee pension and OPEB benefit program. Summary of Difference between Budgeted and Annual Year-End Estimate: Revenue –The projected decrease in revenue of $97,569 was due to an $80,525 rental loss in the tax credit programs and $17,844 in reduced management fees because of a lower occupancy rate at De Anza and the ongoing reduction in occupied units at Las Deltas as a result of the RAD program. Expenditures - The projected $236,471 reduction in expenditures is primarily related to the implementing GASB (General Accounting Standards Board) -75 Accounting and Financial Reporting for Postemployment Benefits Other Than Pensions. State & Local Programs Annual Budget 1st Quarter Actual 6/30/17 (Unaudited) Remaining FY Estimate Annual Total Variance Revenue $ 6,245,234 $ 1,463,740 $ 4,683,926 $ 6,147,666 $ (97,569) Expenditures $ 5,949,740 $ 1,250,964 $ 4,462,305 $ 5,713,269 $ 236,471 $ 295,494 $ 212,776 $ 221,621 $ 434,397 Analysis of Reserves: State & Local Programs Beginning Balance 4/1/17 (Unaudited) 1st Quarter 6/30/17 (Unaudited) Reserve Balance Period ending 6/30/17 (Unaudited) Restricted Reserves $ 1,884,156 $ 39,796 $ 1,923,952 Unrestricted Reserves $ 3,089,730 $ 172,981 $ 3,262,711* Total Reserves $ 4,973,886 $ 212,777 $ 5,186,663 * does not include the unfunded pension liability of 10.8 million. Housing Certificate Programs September 12, 2017 Contra Costa County Housing Authority 13 1st Qtr Budget Report Page 5 of 5 Program Summary - HACCC administers two separate Housing Certificate Programs; Shelter Plus Care and Moderate Rehabilitation (Mod Rehab). 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 311 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. Summary of Difference Between Budgeted and Annual Year-End Estimate: Revenue & Expenditure -The projected increase of $209,106 in revenue is tied to the increase of $218,425 in HAP expenses. HUD increases revenue (to a budget cap) to reimburse HACCC for added rental costs. Housing Certificate Programs Annual Budget 1st Quarter Actual 6/30/17 (Unaudited) Remaining FY Estimate Annual Total Variance Revenue $ 4,418,628 $ 1,313,763 $ 3,313,971 $ 4,627,734 $ 209,106 Expenditures $ 4,381,350 $ 1,313,762 $ 3,286,013 $ 4,599,775 $ (218,425) $ 37,278 $ 1 $ 27,959 $ 27,960 Analysis of Reserves: Housing Certificate Programs Beginning Balance 4/1/17 (Unaudited) 1st Quarter 6/30/17 (Unaudited) Reserve Balance period ending 6/30/17 (Unaudited) Restricted Reserves $ -0- $ -0- $ -0- Unrestricted Reserves $ -0- $ 1 $ -0- Total Reserves $ -0- $ 1 $ 1 September 12, 2017 Contra Costa County Housing Authority 14 RECOMMENDATIONS RECEIVE the Housing Authority of the County of Contra Costa’s investment report for the quarter ending June 30, 2017. BACKGROUND California Government Code (CGC) Section 53646 requires the Housing Authority of the County of Contra Costa (HACCC) to present the Board of Commissioners with a quarterly investment report that provides a complete description of HACCC’s portfolio. The report is required to show the issuers, type of investments, maturity dates, par values (equal to market value here) and the current market values of each component of the portfolio, including funds managed by third party contractors. It must also include the source of the portfolio valuation (in HACCC’s case it is the issuer). Finally, the report must provide certifications that (1) all investment actions executed since the last report have been made in full compliance with the Investment Policy and; (2) HACCC will meet its expenditure obligations for the next six months. (CGC 53646(b)). The state-mandated report has been amended to indicate the amount of interest earned and how the interest was allocated. The amended report is attached. In summary, HACCC had $28,834.77 in interest earnings for the quarter ending June 30th, 2017. That interest was earned within discrete programs and most of the interest earned is available only for use within the program which earned the interest. Further, interest earnings may be restricted to specific purposes within a given program. Action of Board On: 09/12/2017 APPROVED AS RECOMMENDED OTHER Clerks Notes: VOTE OF COMMISSIONERS AYE:John Gioia, Commissioner Candace Andersen, Commissioner Diane Burgis, Commissioner Karen Mitchoff, Commissioner Federal D. Glover, Commissioner ABSENT:Fay Nathaniel, Commissioner Jannel George-Oden, Commissioner Contact: 925-957-8028 I hereby certify that this is a true and correct copy of an action taken and entered on the minutes of the Board of Supervisors on the date shown. ATTESTED: September 12, 2017 Joseph Villarreal, Executive Director By: June McHuen, Deputy cc: C.3 To:Contra Costa County Housing Authority Board of Commissioners From:Joseph Villarreal, Housing Authority Date:September 12, 2017 Contra Costa County Subject:INVESTMENT REPORT FOR THE QUARTER ENDING JUNE 30, 2017 September 12, 2017 Contra Costa County Housing Authority 15 BACKGROUND (CONT'D) > The Housing Choice Voucher Program reserve as of 12/31/2013 held in cash and investments was transitioned to HUD held program reserve account. The only restricted funds remaining in investments for the Housing Voucher program is for the Family Self Sufficiency escrow account. Non-restricted interest earnings within both the voucher and public housing programs must be used solely within those programs, but such interest earnings can be used for a wider range of purposes within the individual programs. The interest earned in the State and Local fund can be used for any purpose within HACCC’s scope of operations. The interest earned for the quarter ending June 30th, 2017 is shown below. A more detailed report is attached. Public Housing Housing Choice Voucher Fund Rental Rehabilitation Fund State & Local Unrestricted Interest Earned Restricted Interest Earned Unrestricted Interest Earned Unrestricted Interest Earned Unrestricted Interest Earned $9,831.68 $965.51 $12,168.24 $225.55 $5,643.79 FISCAL IMPACT None. For reporting purposes only. CONSEQUENCE OF NEGATIVE ACTION Should the Board of Commissioners elect not to accept the investment report it would result in an audit finding of non-compliance and could ultimately affect future funding from the U.S. Department of Housing and Urban Development (HUD). CLERK'S ADDENDUM ATTACHMENTS INVESTMENT REPORT REPORT ATTACHMENT September 12, 2017 Contra Costa County Housing Authority 16 CONTINUED ON ATTACHMENT: _X_YES SIGNATURE __________________________________ Joseph Villarreal, Executive Director ______ RECOMMENDATION OF EXECUTIVE DIRECTOR _____ RECOMMENDATION OF BOARD COMMITTEE ______ APPROVE ______ OTHER SIGNATURE(S): ACTION OF BOARD ON _____________________________ APPROVED AS RECOMMENDED ________ OTHER ____ VOTE OF COMMISSIONERS I HEREBY CERTIFY THAT THIS IS A ___ UNANIMOUS (ABSENT ____________________________) TRUE AND CORRECT COPY OF AN AYES: ______________________ NOES:________________ ACTION TAKEN AND ENTERED ON THE ABSENT: ___________________ ABSTAIN: ____________ MINUTES OF THE BOARD OF COMMISSIONERS ON THE DATE SHOWN. ATTESTED ___________________________________ JOSEPH VILLARREAL, SECRETARY OF THE BOARD OF COMMISSIONERS cc: CAO Office AND EXECUTIVE DIRECTOR BY _________________________, DEPUTY HOUSING AUTHORITY OF THE COUNTY OF CONTRA COSTA TO: BOARD OF COMMISSIONERS FROM: Joseph Villarreal, Executive Director DATE: July 21st ,2017 SUBJECT: INVESTMENT REPORT FOR THE QUARTER ENDING JUNE 30, 2017 SPECIFIC REQUEST(S) OR RECOMMENDATION(S) & BACKGROUND AND JUSTIFICATION I. RECOMMENDED ACTION: RECEIVE the Housing Authority of the County of Contra Costa’s investment report for the quarter ending JUNE 30th ,2017. II. FINANCIAL IMPACT: None. For reporting purposes only. III. REASONS FOR RECOMMENDATION/BACKGROUND California Government Code (CGC) Section 53646 requires the Housing Authority of the County of Contra Costa (HACCC) to present the Board of Commissioners with a quarterly investment report that provides a complete description of HACCC’s portfolio. The report is required to show the September 12, 2017 Contra Costa County Housing Authority 17 issuers, type of investments, maturity dates, par values (equal to market value here) and the current market values of each component of the portfolio, including funds managed by third party contractors. It must also include the source of the portfolio valuation (in HACCC’s case it is the issuer). Finally, the report must provide certifications that (1) all investment actions executed since the last report have been made in full compliance with the Investment Policy and; (2) HACCC will meet its expenditure obligations for the next six months. (CGC 53646(b)). The state-mandated report has been amended to indicate the amount of interest earned and how the interest was allocated. The amended report is attached. In summary, HACCC had $28,834.77 in interest earnings for the quarter ending June 30th, 2017. That interest was earned within discrete programs and most of the interest earned is available only for use within the program which earned the interest. Further, interest earnings may be restricted to specific purposes within a given program. The Housing Choice Voucher Program reserve as of 12/31/2013 held in cash and investments was transitioned to HUD held program reserve account. The only restricted funds remaining in investments for the Housing Voucher program is for the Family Self Sufficiency escrow account. Non-restricted interest earnings within both the voucher and public housing programs must be used solely within those programs, but such interest earnings can be used for a wider range of purposes within the individual programs. The interest earned in the State and Local fund can be used for any purpose within HACCC’s scope of operations. The interest earned for the quarter ending June 30th, 2017 is shown below. A more detailed report is attached. Public Housing Housing Choice Voucher Fund Rental Rehabilitation Fund State & Local Unrestricted Interest Earned Restricted Interest Earned Unrestricted Interest Earned Unrestricted Interest Earned Unrestricted Interest Earned $9,831.68 $965.51 $12,168.24 $225.55 $5,643.79 IV. CONSEQUENCES OF NEGATIVE ACTION: Should the Board of Commissioners elect not to accept the investment report it would result in an audit finding of non-compliance and could ultimately affect future funding from the U.S. Department of Housing and Urban Development (HUD). September 12, 2017 Contra Costa County Housing Authority 18 September 12, 2017Contra Costa County Housing Authority19 September 12, 2017Contra Costa County Housing Authority20 September 12, 2017Contra Costa County Housing Authority21 September 12, 2017Contra Costa County Housing Authority22