HomeMy WebLinkAboutMINUTES - 09102013 - HA D.1RECOMMENDATIONS
RECEIVE oral report from staff on the Housing Authority’s (HACCC) 2013 Capital Fund Grant Award.
BACKGROUND
The United States Department of Housing and Urban Development (HUD) provides annual capital fund grants via
formula to nearly 3,200 housing authorities across the country. Capital Fund grants are used for development,
financing, modernization, and management improvements related directly to public housing units and properties. In
August, HACCC was awarded $1,543,584 in HUD’s 2013 capital grant funding allocation. The grant’s obligation
start date is September 9, 2013.
Under current HUD regulations, at least 50% of a given grant must be spent on physical improvements and directly
related soft costs (e.g., architectural fees). The remaining amount (up to, but no more than 50%) can be spent on
security services, social services, management improvements and other similar costs that benefit the environment in
and around public housing, but are not directly linked to physical improvements of units or properties. HUD gives
housing authorities up to two years from the obligation start date to obligate all moneys in the grant (via signed
contracts) and up to four years to spend all of the funds. In the past, it was not uncommon for HACCC to have three
or four outstanding grants at once. In part this was due to the fact that individual grants were significantly larger in
the past
Action of Board On: 09/10/2013 APPROVED AS RECOMMENDED OTHER
Clerks Notes:
VOTE OF
COMMISSIONERS
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 10, 2013
Joseph Villarreal, Executive Director
By: , Deputy
cc:
D.1
To:Contra Costa County Housing Authority Board of Commissioners
From:Joseph Villarreal, Housing Authority
Date:September 10, 2013
Contra
Costa
County
Subject:2013 Capital Fund Report
BACKGROUND (CONT'D)
than they are now. In 2005 HACCC received $2.5 million in capital fund as opposed to the $1.5 million grant this
year.
Having multiple grants open at once effectively allowed soft costs in a given year to be spread across multiple
grants, each of which was larger than current grants. However, over the past five years not only have capital fund
grants consistently diminished, but HACCC has moved aggressively to utilize the capital fund to eliminate vacant
units from its portfolio. The agency has been very successful in reducing the number of vacant units in its
portfolio. Apart from North Richmond, all of HACCC’s properties generally maintain an occupancy rate above
95%, with most above 98%. To achieve these results, HACCC has aggressively used all of its capital fund grants
(including a large one received under the American Recovery and Reinvestment Act or ARRA) and has
exhausted all but a small portion of the agency’s 2012 grant. It is now likely that HACCC will have only one
open grant at any given time. Combined with ever-decreasing funding levels, this will make it increasingly hard
for the agency to fund all the services it does now while maintaining occupancy levels and improved financial
scores under HUD’s Public Housing Assessment System.
The oral report today is designed to give the Board a brief overview of the issues surrounding the capital fund
program and HACCC’s efforts to maintain and improve its housing stock. A more detailed discussion will be held
after HUD finalizes calendar year funding. This is expected in October, which means staff would provide the
Board with a more detailed analysis and discussion in November.
Attached to this Board Order are graphs showing federal funding trends for the public housing capital and
operating funds, a chart showing hard cost expenditures by HACCC for the 2007-2012 capital fund grants and
one showing the costs that will be charged to the capital and operating funds for security services, social services,
management improvements and other similar costs.
FISCAL IMPACT
None. Information item only.
CONSEQUENCE OF NEGATIVE ACTION
None. Information item only.
CLERK'S ADDENDUM
ATTACHMENTS
Capital Fund Hard Costs
Capital Fund Projected Soft Costs
Capital Fund History