HomeMy WebLinkAboutMINUTES - 09152015 - HA C.04RECOMMENDATIONS
ACCEPT the 4th Quarter (Unaudited) Budget Report for the period ending 3/31/2015.
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 4th quarter period ending 3/31/15. 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
Changes in HACCC's overall budget position for the fourth quarter are shown in the chart below. An increase in
Housing Choice Voucher (HCV) funding due to improved utilization had the most significant impact on HACCC's
budget.
Projected revenue increased by $4,939,286. This was largely a result of new project-based voucher units being
brought online and new clients being called from the wait list for the first time in over 10 years. The increased
revenue was largely funded through the use of HUD-held restricted reserves. Expenditures increased by $4,906,450.
This is also as a result of the utilization increase in the HCV program.
Action of Board On: 09/15/2015 APPROVED AS RECOMMENDED OTHER
Clerks Notes:
VOTE OF COMMISSIONERS
AYE:John Gioia, Commissioner
Candace Andersen,
Commissioner
Mary N. Piepho,
Commissioner
Karen Mitchoff,
Commissioner
ABSENT:Federal D. Glover,
Commissioner
Fay Nathaniel,
Commissioner
Aqueela Bowie,
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 15, 2015
Joseph Villarreal, Executive Director
By: June McHuen, Deputy
cc:
C.4
To:Contra Costa County Housing Authority Board of Commissioners
From:Joseph Villarreal, Housing Authority
Date:September 15, 2015
Contra
Costa
County
Subject:FY 2014-2015 4th Quarter Budget Report
BACKGROUND (CONT'D)
>
The net change to reserve totals for the end of the fourth quarter was a loss of $2,457,307. This loss was primarily a
result of the HCV program utilization of the restricted reserves outlined above.
HACC Agency Summary Annual Budget
4th Quarter
Actual
3/31/15
Remaining FY
Estimate Annual Total Variance
Revenue $ 96,541,964 $ 101,481,250 $ -0-$ 101,481,250 $ 4,939,286
Expenditures $ 99,032,107 $ 103,938,557 $ -0-$ 103,938,557 $(4,906,450)
$ (2,490,143)$ (2,457,307)$ -0-$ ( 4,660,311)
Analysis of Agency Reserves:
Program
Beginning
Balance 4/1/14
(Unaudited)
4th Quarter ending
3/31/15
(Unaudited)
Reserve
Balance period
ending 3/31/15
(Unaudited)
Restricted Reserves
Housing Choice Vouchers $ 8,494,765 $ (3,048,717)$ 5,446,048
Public Housing & Cap. Funds $ -0-$ -0-$ -0-
State & Local Programs $ 495,355 $ ( 71,211)$ 424,144
Housing Certificates Programs $ 6,493 $ (6,493)$ -0-
Total Restricted Reserves $ 8,996,613 $ (3,126,421)$ 5,870,192
Unrestricted Reserves
Housing Choice Vouchers $ 2,579,450 $ 850,140 $ 3,429,590
Public Housing & Cap. Funds $ 958,328 $ (37,971)$ 920,357
State & Local Programs $ 2,159,553 $ (92,049)$ 2,067,504
Housing Certificates Programs $ 50,738 $ (51,007)$ (269)
Total Unrestricted Reserves $ 5,748,069 $ 669,113 $ 6,417,182
Total Reserves $ 14,744,682 $ (2,457,307)$ 12,287,375
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
6,783 families.
Summary of Difference Between Budgeted and Quarterly-End Actual:
Revenue – While funding constraints do not currently allow HACCC to lease all 6,783 units it has been allocated, the
number of HCV units under contract increased to an average of 6,298 units over the entire fiscal year, with 6,376
number of HCV units under contract increased to an average of 6,298 units over the entire fiscal year, with 6,376
families under contract at the end of the fiscal year. The increased revenue of $4,417,438 is a direct result of utilizing
HACCC's HUD-held reserves to assist the increased number of families under contract during the fiscal year.
Expenditures – Increased expenditures reflect an increase in housing payments made to private landlords on behalf of
the new families who came under contract.
Housing Choice
Vouchers Annual Budget
4th Quarter Actual
3/31/15
(Unaudited)
Remaining FY
Estimate Annual Total Variance
Revenue $ 77,818,409 $ 82,235,847 $ -0-$ 82,235,847 $ 4,417,438
Expenditures $ 79,713,312 $ 84,434,424 $ -0-$ 84,434,424 $ (4,721.112)
$ (1,894,903) $ (2,198,577)$ -0-$ (2,198,577)
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 Quarterly-End Actual:
Revenue – Annualized revenue is $13,274 greater than projected. The $10,337,317 actual annual revenue is $412,108
greater than last fiscal year. This is a result of an increase in rental income of $230,000 through increased occupancy
and $180,000 in capital funding.
Expenditures - The $206,570 savings is related to Capital Fund expenditures that are in progress and have not yet
been completed.
Public Housing
Operating and
Capital Fund
Annual Budget
4th Quarter Actual
3/31/15
(Unaudited)
Remaining FY
Estimate Annual Total Variance
Revenue $ 10,324,043 $ 10,337,317 $ -0-$ 10,337,317 $ 13,274
Expenditures $ 10,581,858 $ 10,375,288 $ -0-$ 10,375,288 $ 206,570
$ (257,815)$ (37,971)$ -0-$ (37,971)
Housing Choice Vouchers
Beginning
Balance 4/1/14
(Unaudited)
4th Quarter
3/31/15
(Unaudited)
Reserve Balance
period ending
3/31/15
(Unaudited)
Restricted Reserves $ 8,494,765 $ (3,048,717)$ 5,446,048
Unrestricted Reserves $ 2,579,450 $ 850,140 $ 3,429,590
Total Reserves $11,074,215 $ (2,198,577)$ 8,875,638
Analysis of Program Reserves:
Public Housing & Capital
Fund
Beginning
Balance 4/1/14
(Unaudited)
4th Quarter
3/31/15
(Unaudited)
Reserve Balance
period ending
3/31/15
(Unaudited)
Restricted Reserves $ -0-$ -0-$ -0-
Unrestricted Reserves $ 958,328 $ (37,971)$ 920,357
Total Reserves $ 958,328 $ (37,971)$ 920,357
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.
Summary of Difference between Budgeted and Quarterly-End Actual:
Revenue –The $81,374 growth in revenue is a result of revenue for reimbursable overhead costs from the Housing
Choice Voucher program to the Shelter Plus Care Program that were incurred by the State & Local fund.
Expenditures - The $1,731 decline was less than 1%.
State & Local
Programs Annual Budget
4th Quarter Actual
3/31/15
(Unaudited)
Remaining FY
Estimate Annual Total Variance
Revenue $ 5,221,015 $ 5,302,389 $ -0-$ 5,302,389 $ 81,374
Expenditures $ 5,463,918 $ 5,465,649 $ -0-$ 5,465,649 $ (1,731)
$ (242,903)$ (163,260) $ -0-$ (163,260)
Analysis of Reserves:
State & Local Programs
Beginning
Balance 4/1/14
(Unaudited)
4th Quarter
3/31/15
(Unaudited)
Reserve Balance
Period ending
3/31/15
(Unaudited)
Restricted Reserves $ 495,355 $ (71,211)$ 424,144
Unrestricted Reserves $ 2,159,553 $ (92,049)$ 2,067,504
Total Reserves $ 2,654,908 $ (163,260)$ 2,491,648
Housing Certificate Programs
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 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.
Summary of Difference Between Budgeted and Quarter-End Actual:
Revenue: The $427,200 increase in revenue is a result of an increase in Housing Assistance Payments (HAP).
Expenditure: The $483,166 decline is largely attributable to the $427,200 increase in HAP. The remaining $55,966 is
allowed overhead previously incurred by the State and Local fund.
Housing
Certificate
Programs
Annual Budget
4th Quarter Actual
3/31/15
(Unaudited)
Remaining FY
Estimate Annual Total Variance
Revenue $ 3,178,497 $ 3,606,697 $ -0-$ 3,606,697 $ 427,200
Expenditures $ 3,180,031 $ 3,663,197 $ -0-$ 3,663,197 $ (483,166)
$ (1,534)$ (57,500)$ -0-$ (57,500)
Analysis of Reserves:
Housing Certificate Programs
Beginning
Balance 4/1/14
(Unaudited)
4th Quarter
3/31/15
(Unaudited)
Reserve Balance
period ending
3/31/15
(Unaudited)
Restricted Reserves $ 6,493 $ (6,493)$ -0-
Unrestricted Reserves $ 50,738 $ (51,007)$ (269)
Total Reserves $ 57,231 $ (57,500)$ (269)
FISCAL IMPACT
None. Information item only.
CONSEQUENCE OF NEGATIVE ACTION
None.
CLERK'S ADDENDUM