Agenda

Return

C.3

To:	Contra Costa County Housing Authority Board of Commissioners
From:	Joseph Villarreal, Housing Authority
Date:	December 8, 2020

Contra

Costa

County

Subject:

2nd Quarter 2020-2021 Budget Report

Action of Board On: 12/08/2020

APPROVED AS RECOMMENDED

OTHER

Clerks Notes:

VOTE OF SUPERVISORS

AYE:

John Gioia, Commissioner
Candace Andersen, Commissioner
Diane Burgis, Commissioner
Karen Mitchoff, Commissioner
Federal D. Glover, 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: December 8, 2020
,

BY:	, Deputy

RECOMMENDATIONS

ACCEPT the 2^nd Quarter 2020-2021 Unaudited Budget Report for the period ending 9/30/2020.

BACKGROUND

This report is intended to provide the Board of Commissioners with an overview of the financial operating position of the Housing Authority of the County of Contra Costa (HACCC) for the Period Ending 9/30/2020. 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.

BACKGROUND (CONT'D)

AGENCY OVERVIEW: Budget Report

HACCC's overall budget position for the 2^nd Quarter 9/30/2020 is shown in the chart below. Activity in the Public Housing Program had the most significant impact on HACCC's budget.

The variance in revenue and expenditures at the Agency Level is a summary of all variances reported at the program levels. The program revenue and expenditure variance summary is as follows:

Revenue Variance Summary
Housing Choice Vouchers favorable variance	$ 16,422,474
State and Local favorable variance	326,262
Housing Certificate favorable variance	308,697
Public Housing favorable variance	121,429
Agency Favorable Variance	$ 17,178,862

Expenditure Variance Summary
Public Housing favorable variance	$ 230,724
State and Local unfavorable variance	317,267
Housing Certificate unfavorable variance	388,150
Housing Choice Vouchers favorable variance	10,754,614
Agency Unfavorable Variance	$ 11,229,307

HACC Agency Summary	Annual Budget	2^nd Quarter Actual 9/30/2020	Remaining FY Estimate	Annual Total	Variance
Revenue	$ 181,082,890	$ 107,720,306	$ 90,541,446	$ 198,261,752	$ 17,178,862
Expenditures	$ 181,185,078	$ 101,821,847	$ 90,592,538	$ 192,414,385	$ 11,229,307
	$ (102,188)	$ 5,898,459	$ (51,092)	$ 5,847,367

The net change to overall reserves was an increase of $5,898,459. The summary of Agency Reserves by Program and type is as follows:

Analysis of Agency Reserves	Beginning Balance 4/1/20 (Audited)	2^nd Quarter ending 9/30/2020 (Unaudited)	Reserve Balance period ending 9/30/2020 (Unaudited)
Total Reserves	$ 32,749,897	$ 5,898,459	$ 38,378,356

Net Invested in Capital Assets
Housing Choice Vouchers	$ 353,583	$ 335,217	$ 688,800
Public Housing & Cap. Funds	$ 6,419,660	$ 1,040,538	$ 7,460,198
State & Local Programs	$ 13,474,466	$ (412,420)	$ 13,062,046
Housing Certificates Programs	-0-	-0-	-0-
Total Capital Assets	$ 20,247,709	$ 963,335	$ 21,211,044

Restricted Reserves
Housing Choice Vouchers	$ -0-	$ -0-	$ -0-
Public Housing & Cap. Funds	$ -0-	$ -0-	$ -0-
State & Local Programs	$ -0-	$ 199,617	$ 199,617
Housing Certificates Programs	$ -0-	$ -0-	$ -0-
Total Restricted Reserves	$ -0-	$ 199,617	$ 199,617

Unrestricted Reserves
Housing Choice Vouchers	$ 4,466,902	$ 5,138,377	$ 9,605,279
Public Housing & Cap. Funds	$ 2,284,261	$ (17,294)	$ 2,266,967
State & Local Programs	$ 5,481,025	$ (306,123)	$ 5,174,902*
Housing Certificates Programs	$ -0- .	$ (79,453)	$ (79,453)
Total Unrestricted Reserves	$ 12,232,188	$ 4,735,507	$ 16,967,695

*Reserve levels do not include unfunded pension & OPEB (Other Post-Employment Benefits) liability of roughly $16.3 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 9,280 families. However, due to funding constraints utilization is currently at 7,970.

Summary of Difference Between Budgeted and Annual Estimate:

Revenue – The $16,422,474 revenue difference is primarily a result of increased funding in HAP payments in the amount of $8,740,267. In addition, the Agency received $4,137,938 in CARES funding, increased Portability activities of $2,556,969, and an increase of $ 987,300 in administrative fees.

Expenditures- The -$10,754,614 expenditure difference is primarily a result of an $8,740,267 increase in HAP payments. In addition, the Agency had increased HAP for Portability of $2,556,969 and a savings of $ 542,622 in operating costs.

Housing Choice Vouchers	Annual Budget	2^nd Quarter Actual 9/30/2020 (Unaudited)	Remaining FY Estimate	Annual Total	Variance
Revenue	$ 154,948,218	$ 93,896,583	$ 77,474,109	$ 171,370,692	$ 16,422,474
Expenditures	$ 155,336,751	$ 88,422,990	$ 77,668,375	$ 166,091,365	$ 10,754,614
	$ (388,533)	$ 5,473,593	$ (194,266)	$ 5,279,327

Analysis of Program Reserves:

Housing Choice Vouchers	Beginning Balance 4/1/2020 (Unaudited)	2^nd Quarter Actual 9/30/2020 (Unaudited)	Reserve Balance period ending 9/30/2020 (Unaudited)
Net Invested in Capital Assets	$ 353,583	$ 335,217	$ 688,800
Restricted Reserves	$ -0-	$ -0-	$ -0-
Unrestricted Reserves	$ 4,466,902	$ 5,138,377	$ 9,605,279
Total Reserves	$ 4,820,485	$ 5,473,594	$10,294,079

Public Housing Operating and Capital Funds

Program Summary - HACCC owns and manages 1,179 public housing units at 16 different sites throughout the County. The Agency is currently in the process of disposing roughly 196 units on 3 sites. The 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 $121,429 revenue difference is primarily a result of CARES currently recorded in the amount of $ 709,717 and $314,234 in increased Capital Funding. The primary reductions in revenue are Operating Subsidy of -$739,571 and Dwelling Rent loss of -$162,950.

Expenditures - The $230,724 expenditure difference is a result of reduced operating costs in labor & benefits.

Public Housing Operating and Capital Fund	Annual Budget	2^nd Quarter Actual 9/30/2020 (Unaudited)	Remaining FY Estimate	Annual Total	Variance
Revenue	$ 13,577,775	$ 6,910,316	$ 6,788,888	$ 13,699,204	$ 121,429
Expenditures	$ 12,235,591	$ 5,887,072	$ 6,117,795	$ 12,004,867	$ (230,724)
	$ 1,342,184	$ 1,023,244	$ 671,093	$ 1,694,337

Analysis of Program Reserves:

Public Housing & Capital Fund	Beginning Balance 4/1/2020 (Unaudited)	2^nd Quarter Actual 9/30/2020 (Unaudited)	Reserve Balance period ending 9/30/20 (Unaudited)
Net Invested in Capital Assets	$ 6,419,660	$ 1,040,538	$ 7,460,198
Restricted Reserves	$ -0-	$ -0-	$ -0-
Unrestricted Reserves	$ 2,284,261	$ (17,294)	$ 2,266,967
Total Reserves	$ 8,703,921	$ 1,023,244	$ 9,727,165

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). 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 $326,262 revenue difference is primarily related to a $354,381 increase in revenue related to our tax credit properties and -$28,119 decrease in management fees from our federal programs.

Expenditures - The $317,267 expenditure difference is primarily related to an increase in operational cost of $198,047 and a $119,220 increase in Tax Credit property costs.

State & Local Programs	Annual Budget	2^nd Quarter Actual 9/30/2020 (Unaudited)	Remaining FY Estimate	Annual Total	Variance
Revenue	$ 6,717,909	$ 3,685,216	$ 3,358,955	$ 7,044,171	$ 326,262
Expenditures	$ 7,773,748	$ 4,204,141	$ 3,886,874	$ 8,091,015	$ 317,267
	$ (1,055,839)	$ (518,925)	$ (527,919)	$ (1,047,219)

Analysis of Reserves:

State & Local Programs	Beginning Balance 4/1/2020 Unaudited	2^nd Quarter Actual 9/30/2020 (Unaudited)		Reserve Balance Period ending 9/30/2020 (Unaudited)
Net Invested in Capital Assets	$ 13,474,466	$ (412,420)	$ 13,062,046
Restricted Reserves	$ -0-	$ 199,617	$ 199,617
Unrestricted Reserves	$ 5,481,025*	$ (306,123)	$ 5,174,902*
Total Reserves	$ 18,955,491*	$ (518,926)	$ 18,436,565*

* does not include the unfunded pension & OPEB liability of roughly 16.3 million.


Housing Certificate Programs

Program Summary - HACCC administers a Housing Certificate Program tied to the Continuum of Care Program (formerly known as Shelter Plus Care). The Continuum of 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 327 clients under this program.

Summary of Difference Between Budgeted and Annual Year-End Estimate:

Revenue- The $308,697 revenue difference is an increase HAP funding of $510,464 and a decrease of -$125,156 in Supportive Service and a decrease in administrative funding of -$76,612.

Expenditures- The -$388,150 expenditure difference is a result of a $524,681 increase in HAP items and a decrease of CCHS support services and operating costs of $162,606.

Housing Certificate Programs	Annual Budget	2^nd Quarter Actual 9/30/2020 (Unaudited)	Remaining FY Estimate	Annual Total	Variance
Revenue	$ 5,838,988	$ 3,228,191	$ 2,919,494	$ 6,147,685	$ 308,697
Expenditures	$ 5,838,988	$ 3,307,644	$ 2,919,494	$ 6,227,138	$ 388,150
	$ -0-	$ (79,453)	$ -0-	$ (79,453)

Analysis of Reserves:

Housing Certificate Programs	Beginning Balance 4/1/2020 Audited	2^nd Quarter Actual 9/30/2020 (Unaudited)	Reserve Balance period ending 6/30/2020 (Unaudited)

Restricted Reserves	$ -0-	$ -0-	$ -0-
Unrestricted Reserves	$ -0-	$ (79,453)	$ (79,453)
Total Reserves	$ -0-	$ (79,453)	$ (79,453)

FISCAL IMPACT

None. Information item only.