BACKGROUND (CONT'D)
AGENCY OVERVIEW: Budget Report
Changes in HACCC's overall budget position for the third quarter are shown in the chart below. Major changes in Section 8 voucher program (HCV) funding had the most significant impact on HACCC's budget.
Projected revenue increased by $2,426,731 as HCV utilization increased. This was as a result of new project-based units being brought online and new clients being called from the wait list for the first time in over 10 years. The increased revenues were largely funded through the use of HUD-held restricted reserves. Expenditures are on pace to end the year about $1.2 million less than budgeted. However, this would still be an increase of over $5 million from last fiscal year. As with revenues, this is mostly a result of increased leasing under the HCV program.
The net change to reserve totals for the end of the third quarter was a loss of $2,585,628, almost exactly on pace to match HACCC's budgeted loss of $6,224,050. This decline is reflective of HUD's ongoing mandate to eliminate locally controlled reserve funds.
|
HACC Agency Summary |
Annual Budget |
3rd Quarter
Actual
12/31/14 |
Remaining FY Estimate |
Annual Total |
Variance |
|
Revenue |
$ 96,541,964 |
$ 74,833,204 |
$ 24,135,491 |
$ 98,968,695 |
$2,426,731 |
|
Expenditures |
$104,840,697 |
$ 77,418,832 |
$ 26,210,174 |
$103,629,006 |
$1,211,691 |
|
|
$ (8,298,733) |
$ (2,585,628) |
$ (2,074,683) |
$ ( 4,660,311) |
|
Analysis of Agency Reserves
|
Program |
Beginning
Balance 4/1/14 (Unaudited)
|
3rd Quarter ending
12/31/14
(Unaudited) |
Reserve
Balance period ending 12/31/14 (Unaudited) |
|
|
|
|
|
|
Restricted Reserves |
|
|
|
|
Housing Choice Vouchers |
$ 8,494,765 |
$ (2,787,341) |
$ 5,707,424 |
|
Public Housing & Cap. Funds |
$ -0- |
$ -0- |
$ -0- |
|
State & Local Programs |
$ 495,355 |
$ (102,966) |
$ 392,389 |
|
Housing Certificates Programs |
$ 6,493 |
$ 11,840 |
$ 18,333 |
|
Total Restricted Reserves |
$ 8,996,613 |
$ (2,878,467) |
$ 6,118,146 |
|
|
|
|
|
|
Unrestricted Reserves |
|
|
|
|
Housing Choice Vouchers |
$ 2,579,450 |
$ 334,311 |
$ 2,913,761 |
|
Public Housing & Cap. Funds |
$ 958,328 |
$ 135,410 |
$ 1,093,738 |
|
State & Local Programs |
$ 2,159,553 |
$ (133,427) |
$ 2,026,126 |
|
Housing Certificates Programs |
$ 50,738 |
$ (43,453) |
$ 7,285 |
|
Total Unrestricted Reserves |
$ 5,748,069 |
$ 292,841 |
$ 6,040,910 |
|
|
|
|
|
|
Total Reserves |
$ 14,744,682 |
$ (2,585,626) |
$ 12,159,056 |
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. However, due to funding constraints, the program is only able to support approximately 6,300 families currently.
Summary of Difference Between Budgeted and Quarterly-End Estimate:
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 has increased. The net variance of $2,236,362 is a direct result of an increase in the number of units under contract.
Expenditures – As stated above, expenditures are on pace to end the year about $1.2 million less than budgeted. However, this is an increase of over $5 million from last fiscal year due to increased leasing under the HCV program. The vast majority of expenditures under the HCV program are for rent payments to private landlords.
|
Housing Choice Vouchers |
Annual Budget |
3rd Quarter Actual
12/31/2014
(Unaudited) |
Remaining FY
Estimate |
Annual Total |
Variance |
|
Revenue |
$ 77,818,409 |
$ 60,600,169 |
$ 19,454,602 |
$ 80,054,771 |
$ 2,236,362 |
|
Expenditures |
$ 85,614,890 |
$ 63,053,200 |
$ 21,403,722 |
$ 84,456,922 |
$ 1,157,967 |
|
|
$ (7,796,481) |
$ (2,453,031) |
$ (1,949,120) |
$ (4,402,151) |
|
Analysis of Program Reserves:
|
Housing Choice Vouchers |
Beginning
Balance 4/1/14 (Unaudited)
|
3rd Quarter
12/31/2014
(Unaudited) |
Reserve Balance period ending
12/31/14
(Unaudited) |
|
|
|
|
|
|
Restricted Reserves |
$ 8,494,765 |
$ (2,787,341) |
$ 5,707,424 |
|
Unrestricted Reserves |
$ 2,579,450 |
$ 334,311 |
$ 2,913,761 |
|
Total Reserves |
$11,074,215 |
$ (2,453,030) |
$ 8,621,185 |
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 Estimate:
Revenue – Annualized revenue is $133,721 less than projected. However, that would be an increase of over $265,000 from last fiscal year.
Expenditures - The $462,493 variance is a savings of $311,000 related to Capital Fund expenditures that either have not yet been completed or that have not yet been billed. The remaining $156,493 in savings were realized from savings in general operations, labor, utilities and tenant services.
|
Public Housing Operating and Capital Fund |
Annual Budget |
3rd Quarter Actual 12/31/14
(Unaudited) |
Remaining FY
Estimate |
Annual Total |
Variance |
|
Revenue |
$ 10,324,043 |
$ 7,609,311 |
$ 2,581,011 |
$ 10,190,322 |
$ (133,721) |
|
Expenditures |
$ 10,581,858 |
$ 7,473,901 |
$ 2,645,465 |
$ 10,119,366 |
$ 462,493 |
|
|
$ (257,815) |
$ 135,410 |
$ (64,454) |
$ 70,956 |
|
Analysis of Program Reserves:
|
Public Housing & Capital Fund |
Beginning
Balance 4/1/14
(Unaudited)
|
3rd Quarter
12/31/14
(Unaudited) |
Reserve Balance period ending
12/31/14
(Unaudited) |
|
Restricted Reserves |
$ -0- |
$ -0- |
$ -0- |
|
Unrestricted Reserves |
$ 958,328 |
$ 135,410 |
$ 1,093,738 |
|
Total Reserves |
$ 958,328 |
$ 135,410 |
$ 1,093,738 |
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 Estimate:
Revenue –The variance is less than 1%.
Expenditures - The $53,987 projected increase is related to temporary employment services for special projects and staff turnover.
|
State & Local Programs |
Annual Budget |
3rd Quarter Actual 12/31/14
(Unaudited) |
Remaining FY
Estimate |
Annual Total |
Variance |
|
Revenue |
$ 5,221,015 |
$ 3,915,532 |
$ 1,305,254 |
$ 5,220,786 |
$ (229) |
|
Expenditures |
$ 5,463,918 |
$ 4,151,925 |
$ 1,365,980 |
$ 5,517,905 |
$ (53,987) |
|
|
$ (242,903) |
$ (236,393) |
$ (60,726) |
$ (297,118) |
|
Analysis of Reserves:
|
State & Local Programs |
Beginning
Balance 4/1/14
(Unaudited)
|
3rd Quarter
12/31/14
(Unaudited) |
Reserve Balance
Period ending 12/31/14
(Unaudited) |
|
|
|
|
|
|
Restricted Reserves |
$ 495,355 |
$ (102,966) |
$ 392,389 |
|
Unrestricted Reserves |
$ 2,159,553 |
$ (133,427) |
$ 2,026,126 |
|
Total Reserves |
$ 2,654,908 |
$ (236,393) |
$ 2,418,515 |
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 Estimate:
Revenue-The $324,319 variance is primarily the result of an increase in Federal funding for rent payments (HAP) and administrative fees in the Shelter Plus Care program. HAP accounted for $287,441 of the increase.
Expenditure-The $354,782 variance is an increase in HAP and other program costs. The other program costs were fees paid to the County's Behavior Health Department for client supportive services.
Housing
Certificate
Programs |
Annual Budget |
3rd Quarter Actual 12/31/14
(Unaudited) |
Remaining FY
Estimate |
Annual Total |
Variance |
|
Revenue |
$ 3,178,497 |
$ 2,708,191 |
$ 794,624 |
$ 3,502,815 |
$ 324,319 |
|
Expenditures |
$ 3,180,031 |
$ 2,739,805 |
$ 795,008 |
$ 3,534,813 |
$ (354,782) |
|
|
$ (1,534) |
$ (31,614) |
$ (384) |
$ (31,998) |
|
Analysis of Reserves:
|
Housing Certificate Programs |
Beginning
Balance 4/1/14
(Unaudited)
|
3rd Quarter
12/31/14
(Unaudited) |
Reserve Balance period ending
12/31/14
(Unaudited) |
|
|
|
|
|
|
Restricted Reserves |
$ 6,493 |
$ 11,840 |
$ 18,333 |
|
Unrestricted Reserves |
$ 50,738 |
$ (43,453) |
$ 7,285 |
|
Total Reserves |
$ 57,231 |
$ (31,613) |
$ 25,618 |
FISCAL IMPACT
None. Information item only.
CLERK'S ADDENDUM