HomeMy WebLinkAboutMINUTES - 03252014 - HA D.1RECOMMENDATIONS
1. APPROVE the 2014-2015 Annual Agency Budget; and
2. ADOPT PHA Board Resolution No. 5175 approving the Budget on HUD Form 52574.
BACKGROUND
In compliance with United States Department of Housing and Urban Development's (HUD) regulations, staff
prepared the Housing Authority’s (HACCC) FY 2014/2015 budget for the Board’s approval. The proposed budget
presented here includes the most recent federal funding projections available from HUD and industry groups.
HACCC's actual funding levels won't be determined until later in the calendar year.
Action of Board On: 03/25/2014 APPROVED AS RECOMMENDED OTHER
Clerks Notes:
VOTE OF COMMISSIONERS
AYE:John Gioia, District I
Supervisor
Candace Andersen, District II
Supervisor
Karen Mitchoff, District IV
Supervisor
Federal D. Glover, District V
Supervisor
ABSENT:Mary N. Piepho, District III
Supervisor
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: March 25, 2014
Joseph Villarreal, Executive Director
By: June McHuen, Deputy
cc:
D.1
To:Contra Costa County Housing Authority Board of Commissioners
From:Joseph Villarreal, Housing Authority
Date:March 25, 2014
Contra
Costa
County
Subject:2014-2015 Annual Agency Budget
BACKGROUND (CONT'D)
>
The following are select comments on this year’s budget:
HACCC will continue to provide housing assistance to over 8,000 families in its various programs.
A loss of approximately $7.3 million (8.1%) in overall funding is projected due to federal shortfalls.
A loss of $4.5 million (6%) in eligible HCV housing assistance payments.
A loss of $1.9 million (25%) in eligible HCV administrative fees.
A loss of $800,000 (13%) in eligible public housing operating subsidies.
A loss of $65,377 (4.1%) from last year in public housing capital funds.
Overall staffing is projected at 96, up from 90 last year.
A 2.5% salary increase is projected.
In response to a recent change in HUD regulations, public housing operations will now be charged
$808,982 for security/police services ($621,570) and resident services ($187,412).
Several water districts have replaced old meters. This has resulted in a spike in recorded usage. In turn, this
has led to a projected increase in annual costs to public housing of $225,000.
One police officer and two Sheriff Deputies continue to be funded in the public housing program.
Three resident services staff continue to be funded in the public housing program.
6,353 vouchers are projected (6,781 is HACCC's official allocation)
Local voucher subsidy reserves are estimated to drop to $672,000 by the end of the fiscal year due to a
change in federal policies. HUD will now hold almost all voucher subsidy reserves. HACCC's monthly
subsidy costs are approximately $6.1 million.
The Section 8 file conversion project has been completed and the document imaging project will begin
under this budget.
A full-time DA Fraud Investigator continues to be funded in the HCV program.
HACCC’s proposed overall budget is shown below in comparison to last year’s approved budget along with the
projected change in reserve levels. Following the overview, the budget is broken out for each of HACCC’s four
major program areas: Housing Choice Vouchers, Public Housing, State and Local programs and Certificate
Programs.
Attached to this Board Order are HACCC’s Program Budget Levels and Consolidated Analysis of Agency
Reserves. The complete budget is available for viewing at HACCC’s administrative office.
Agency Overview:
HACCC Agency
Summary 2014-2015 Budget 2013-2014 Budget Change
Revenue $96,591,595 $96,194,211 $397,384
Expenditures $20,778,242 $20,106,060 $672,182
Program Costs, Debt
Services & Other Capital
Improvements $77,888,483 $80,947,781 ($3,059,298)
To Reserves ($2,075,130)($4,859,630) $2,784,500
Explanation of Change:
HACCC Consolidated
Reserves Restricted Reserve Bal.Unrestricted Reserve Bal.Reserve Balances
Projected 3/31/14 $2,770,368 $6,124,794 $8,895,162
This Budget ($1,559,583) ($575,547) ($2,075,130)
Projected to 3/31/15 $1,210,785 $5,609,247 $6,820,032
The major change ($3,059,298) in this year's budget compared to last year's is in the area of Program Costs. This
is largely a reflection of cost savings in Section 8 subsidies that will enable HACCC to issue more vouchers over
the coming fiscal year. The loss in restricted reserves is almost entirely due to HUD's ongoing recapture of
Section 8 Housing Assistance Payments (HAP) reserves.
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 the unrestricted
balance within the State and Local Fund. This balance can be used in any of HACCC’s programs.
Housing Choice Voucher Overview:
The HCV program provides rental assistance to families in the private rental market. HACCC qualifies families
for the program based on income. Eligible 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. HAP is paid by
HACCC directly to the owner. Through its HCV program, HACCC is authorized to provide affordable housing
assistance to as many as 6,781 families. Due to funding and regulatory restrictions, HACCC is projected to house
an average of only 6,353 families per month under the proposed budget.
HCV Summary 2014-2015 Budget 2013-2014 Budget Change
Revenue $77,818,409 $77,678,861 $139,548
Expenditures $6,102,682 $6,004,117 $98,565
Program Costs, Debt
Services & Other Capital
Improvements $73,409,526 $76,230,848 ($2,821,322)
To Reserves ($1,693,799)($4,556,104)$2,862,305
HCV Reserves Restricted Reserve Bal.Unrestricted Reserve Bal.Reserve Balances
Projected 3/31/14 $2,243,711 $2,577,015 $4,820,726
This Budget ($1,571,637)($122,162)($1,693,799)
Projected to 3/31/15 $672,074 $2,454,853 $3,126,927
Explanation of Change:
Cost savings enacted by HACCC over the past few years continue to impact the budget. Program costs are slated
to drop by about $3 million dollars in this year's budget versus last due to ongoing savings related to subsidy size
reductions. As a result, HACCC has begun issuing vouchers for project-based units and will continue to do so in
the 2014-2015 budget year. "Regular" vouchers will also be issued in the coming fiscal year.
The file project has been successfully completed. Conversion of all Section 8 files to document imaging will begin
this year.
Public Housing & Capital Fund Overview:
HACCC owns and manages 1,177 public housing units at 16 different sites throughout the County. Revenue to
manage these properties is derived from tenant rents and operating subsidies received from HUD. Because tenant
rents are set by income and not the actual operating costs of the properties, most public housing properties across
the nation are not able to charge enough rent to meet operating needs. HUD's operating subsidies are designed to
offset some of the shortfalls in actual operating costs versus tenant rents. HUD also provides annual Capital Fund
grants via formula to approximately 3,300 housing authorities. Capital Fund grants may be used for the
development, financing, and modernization of public housing developments and for management improvements.
Public Housing
Summary - All Units 2014-2015 Budget 2013-2014 Budget Change
Revenue $10,373,673 $9,558,091 $815,582
Expenditures $9,769,794 $9,044,072 $725,722
Program Costs, Debt
Services & Other Capital
Improvements $800,664 $804,481 ($3,817)
To Reserves ($196,785)($290,462)$93,677
Public Housing by Asset
Management Property (AMP)Area 2014-2015
Revenue
2014-2015
Expenditure
2014-2015
Residual/(Loss)
AMP-1 & 8 Ca001,Ca011,Ca013 Martinez, Bay
Point $1,172,455 $917,434 $255,021
AMP-2 Ca045a,Ca045b San Pablo $1,074,651 $968,850 $105,801
AMP-3 Ca004,Ca008,Ca012 Brentwood,
Oakley $903,841 $876,986 $26,865
AMP-4 Ca010 Rodeo $2,145,058 $2,416,097 $(271,039)
AMP-5 & 9 Ca003,Ca005,Ca015 Pittsburg &
Antioch $2,396,613 $2,612,934 $(216,321)
AMP 6 & 7 Ca006,009a,Ca009b North
Richmond $1,087,842 $1,303,537 $(215,695)
Program Totals*$8,780,460*$9,095,828*$(315,368)*
* Operations only, does not include CFP
Public Housing Reserves Restricted Reserve
Balance
Unrestricted Reserve
Balance Reserve Balance
Projected 3/31/14 $-0-$1,002,670 $1,002,670
This Budget $-0-($196,785) ($196,785)
Projected to 3/31/15 $-0-$805,885 $805,885
Explanation of Change:
The increase in revenue is mostly due to an increase in operating subsidy and rents as occupancy in our properties
continued to climb last year. Operating subsidy was also increased because the income levels of public housing
tenants as a whole dropped last year at many properties. If rents drop in a given year, HUD will increase the
Operating Subsidy provided in the subsequent year.
The increase in expenditures is due to HUD's change in regulations that now require housing authorities to fund
police and social services out of operations instead of the capital fund. HACCC had used about half of its annual
capital fund grant to pay for sheriff deputies in North Richmond and Rodeo, a police officer in Pittsburg, and three
social service providers in North Richmond along with HACCC's three development staff. An increase of
$225,000 has also been budgeted in response to new water meters that were placed at several properties. As a
result, billing has risen.
Housing Certificate Programs Overview:
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. HACCC operates the housing and financial portions of the
program and the County’s Homeless Program operates the supportive services and casework portions.
Approximately 285 clients are assisted 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
agrees 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.
Certificate Programs
Summary 2014-2015 Budget 2013-2014 Budget Change
Revenue $3,178,497 $3,441,563 ($263,066)
Expenditures $300,717 $310,949 ($10,232)
Program Costs, Debt
Services & Other Capital
Improvements $2,879,314 $3,164,610 ($285,296)
To Reserves ($1,534)($33,996)$32,462
Certificate Programs
Reserves Restricted Reserve Bal.Unrestricted Reserve Bal.Reserve Balances
Projected 3/31/14 $14,743 $37,470 $52,213
This Budget $-0-($1,534)($1,534)
Projected to 3/31/15 $14,743 $35,936 $50,679
Explanation of Change:
The primary changes in the Certificate Programs are related to reduced HAP funding and HAP expenses due to
natural fluctuations in the size of the Shelter Plus Care program.
State and Local Overview:
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 City of Antioch to run their rental rehabilitation
program. Additionally, HACCC receives management fees for administering HUD programs.
State & Local Summary 2014-2015 Budget 2013-2014 Budget Change
Revenue $5,221,016 $5,515,696 ($294,680)
Expenditures $4,605,049 $4,746,922 ($141,873)
Program Costs, Debt
Services & Other Capital
Improvements $798,979 $747,842 $51,137
To Reserves ($183,012)$20,932 ($203,944)
State & Local Reserves Restricted Reserve Bal.Unrestricted Reserve Bal.Reserve Balances
Projected 3/31/14 $255,957 $2,507,639 $2,763,596
This Budget $12,054 ($195,066)($183,012)
Projected to 3/31/15 $268,011 $2,312,573 $2,580,584
Explanation of Change:
The major change in the State and Local programs is the elimination of the County and Local Rental
Rehabilitation program. This program activity will be closed out 3/31/14
FISCAL IMPACT
The budget proposes a decrease in the Housing Authority’s overall reserves of $2,075,130.
CONSEQUENCE OF NEGATIVE ACTION
Should the Board not adopt Resolution No. 5175 approving the Authority’s budget for fiscal year 2014-2015,
HACCC will not be in compliance with HUD regulations. Further, the Authority would not be in compliance in
fulfilling its financial and programmatic obligations to program participants and property owners, as well as
Authority employees, contractors and vendors.
CLERK'S ADDENDUM
ATTACHMENTS
Resolution 5175
2014-15 Agency Budget Attachments