HomeMy WebLinkAboutMINUTES - 03102015 - HA D.4RECOMMENDATIONS
1. APPROVE the 2015-2016 Annual Agency Budget; and
2. ADOPT PHA (Public Housing Agency) Board Resolution No. 5187 approving the Budget on HUD (U.S.
Department of Housing and Urban Development) Form 52574.
BACKGROUND
In compliance with the United States Department of Housing and Urban Development's (HUD) regulations, staff has
prepared the Housing Authority of the County of Contra Costa (HACCC) proposed FY 2015/2016 budget for the
Board’s approval. The proposed budget presented here includes the most recent federal funding projections available
from HUD and industry groups at the time of publication. HACCC's actual funding levels for the calendar year won't
be determined until sometime after October, once the federal budget is approved and national program utilization
levels are calculated. However, because funding for the Housing Choice Voucher (HCV) program is adjusted
quarterly and annual funding is fairly predictable for the Certificate and the State and Local programs, the public
housing budget is the only area with significant uncertainty at this time.
Action of Board On: 03/10/2015 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: March 10, 2015
Joseph Villarreal, Executive Director
By: , Deputy
cc:
D.4
To:Contra Costa County Housing Authority Board of Commissioners
From:Joseph Villarreal, Housing Authority
Date:March 10, 2015
Contra
Costa
County
Subject:2015-2016 Annual Agency Budget
BACKGROUND (CONT'D)
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The following are select comments on this year’s budget:
Budgeted revenue (mostly federal funding) is up by over $8.2 million as more families are now housed
under HACCC's various programs.
The majority of this gain ($6.1 million) is due to increased housing assistance payments (HAP) in the
HCV program.
HAP has also increased in the Certificate programs by $700,000. This is up 19% from last year's
budget.
Program costs are up by $6,405,333 from last year. This increase is mostly due to the increase in the
number of families served by HACCC under the HCV and Certificate programs and rising housing costs.
HACCC will provide housing assistance to over 8,100 families in its various programs.
6,416 vouchers are funded (6,781 is HACCC's official allocation).
A full-time DA Fraud Investigator continues to be funded for the HCV program.
The proposed budget anticipates a loss of $199,644 in the public housing program.
This loss is primarily attributable to a change in HUD regulations last year that now requires housing
authorities to pay for security/police ($698,102) and resident services ($201,740) out of operations instead
of the capital fund.
One police officer (Pittsburg), two Sheriff's Deputies (North Richmond and Rodeo) and three resident
services staff (North Richmond) are funded in the proposed budget.
Public housing capital funds increased by $200,000, a gain of 13% from last year.
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. A more detailed budget is available for viewing at HACCC’s administrative office.
Agency Overview:
HACCC Agency
Summary 2015-2016 Budget 2014-2015 Budget Change
Revenue $104,854,022 $96,591,595 $ 8,262,427
Expenditures $ 21,710,029 $20,778,242 ($ 931,787)
Program Costs, Debt
Services & Other Capital
Improvements $ 84,293,816 $77,888,483 ($ 6,405,333)
To Reserves ($ 1,149,823)($ 2,075,130)$ 925,307
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 the
HACCC Consolidated
Reserves Restricted Reserve Bal.Unrestricted Reserve Bal.Reserve Balances
Projected 3/31/15 $2,132,626 $6,544,322 $8,676,948
This Budget ($ 983,553) ( $166,270) ($1,149,823)
Projected to 3/31/16 $1,149,073 $6,378,052 $7,527,125
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 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 6,416 families per month under the proposed budget.
HCV Summary 2015-2016 Budget 2014-2015 Budget Change
Revenue $84,931,760 $77,818,409 $7,113,351
Expenditures $ 6,343,537 $6,102,682 ($ 240,855)
Program Costs, Debt
Services & Other Capital
Improvements $79,246,338 $73,409,526 ($5,836,812)
To Reserves ($ 658,115)($1,693,799)$1,035,684
HCV Reserves Restricted Reserve Bal.Unrestricted Reserve Bal.Reserve Balances
Projected 3/31/15 $ 1,684,052 $ 2,979,432 $ 4,663,484
This Budget ($ 854,383)$ 196,268 ($ 658,115)
Projected to 3/31/16 $ 829,669 $ 3,175,700 $ 4,005,369
Explanation of Change:
As stated above, the $7,113,351 increase in revenue and the $5,836,812 in costs are almost entirely related to
increases in housing assistance payment subsidies due to an increase in the number of families served by HACCC
along with rising rental costs.
Public Housing & Capital Fund Overview:
HACCC owns and manages 1,179 public housing units at 16 different sites throughout the County. Revenue to
manage these properties is derived from tenant rents and an operating subsidy 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 subsidy is designed to
offset some of the shortfall 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 2015-2016 Budget 2014-2015 Budget Change
Revenue $10,793,079 $10,373,673 $ 419,406
Expenditures $10,139,655 $ 9,769,794 ($ 369,861)
Program Costs, Debt
Services & Other Capital
Improvements $ 853,068 $ 800,664 ($ 52,404)
To Reserves ($ 199,644)($ 196,785)($ 2,859)
Public Housing by Asset
Management Property (AMP)Area 2015-2016
Revenue
2015-2016
Expenditure
2015-2016
Residual/(Loss)
AMP-1 & 8 Ca001,Ca011,Ca013 Martinez,
Bay Point $1,173,095 $1,047,075 $126,020
AMP-2 Ca045a,Ca045b San Pablo $1,128,620 $1,058,112 $ 70,508
AMP-3 Ca004,Ca008,Ca012 Brentwood,
Oakley $ 955,197 $ 809,510 $ 145,687
AMP-4 Ca010 Rodeo $2,116,502 $2,514,550 $(398,048)
AMP-5 & 9 Ca003,Ca005,Ca015 Pittsburg &
Antioch $2,450,820 $2,622,072 $(171,252)
AMP 6 & 7 Ca006,009a,Ca009b North
Richmond $1,275,511 $1,335,767 $( 60,256)
Program Totals*$9,099,745*$9,387,086*$(287,341)*
* Operations only, does not include CFP
Public Housing Reserves Restricted Reserve
Balance
Unrestricted Reserve
Balance Reserve Balance
Projected 3/31/15 $-0-$ 1,072,725 $ 1,072,725
This Budget $-0-($ 199,644)($ 199,644)
Projected to 3/31/16 $-0-$ 873,081 $ 873,081
Explanation of Change:
The increase in revenue of $419,406 from last year's budget is mostly due to an increase in available capital funds
of $369,861. The remaining increase of $49,545 is projected tenant rental income.
As mentioned above, the projected loss of $199,644 in the public housing program is primarily due to a change in
HUD regulations last year that now requires housing authorities to pay for security/police ($698,102) and resident
services ($201,740) out of operations instead of the capital fund. Every property that has these services shows a
loss, every property that does not have these services shows a profit. Some combination of cuts in staffing levels
and/or services will have to be made in order to balance the public housing budget. Staff will be discussing this
topic with the Board in future meetings.
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 2015-2016 Budget 2014-2015 Budget Change
Revenue $3,844,402 $3,178,497 $ 665,905
Expenditures $ 326,369 $ 300,717 ($ 25,652)
Program Costs, Debt
Services & Other Capital
Improvements $ 3,556,464 $2,879,314 ($ 677,150)
To Reserves ($ 38,431)($ 1,534)($ 36,897)
Certificate Programs
Reserves Restricted Reserve Bal.Unrestricted Reserve Bal.Reserve Balances
Projected 3/31/15 $ 17,071 $ 5,594 $ 22,665
This Budget ($ 6,762)($ 31,669)($ 38,431)
Projected to 3/31/16 $ 10,309 ($ 26,075)($ 15,766)
Explanation of Change:
The primary change in the Certificate Programs are related to increased HAP funding and HAP expense.
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 2015-2016 Budget 2014-2015 Budget Change
Revenue $5,284,782 $5,221,016 $ 63,766
Expenditures $4,900,468 $4,605,049 ($ 295,419)
Program Costs, Debt
Services & Other Capital
Improvements $ 637,947 $798,979 $ 161,032
To Reserves ($ 253,633)($183,012)($ 70,621)
State & Local Reserves Restricted Reserve Bal.Unrestricted Reserve Bal.Reserve Balances
Projected 3/31/15 $ 431,503 $ 2,486,571 $ 2,918,074
This Budget ($ 122,408)($ 131,224)($ 253,633)
Projected to 3/31/16 $ 309,095 $ 2,347,915 $ 2,657,020
Explanation of Change:
The $295,419 increase in expenditures from last year reflect administrative costs related to a new round of
funding for the Rental Rehabilitation program. The reduction in program costs reflect reimbursements from the
HCV program to the Shelter Plus Care program for overhead costs.
CONSEQUENCE OF NEGATIVE ACTION
Should the Board not adopt Resolution No. 5187 approving HACCC’s budget for fiscal year 2015-2016, HACCC
will not be in compliance with HUD regulations. Further, HACCC would not be in compliance in fulfilling its
financial and programmatic obligations to program participants and property owners, as well as HACCC
employees, contractors and vendors.
ATTACHMENTS
Resolution No. 5187