Agenda

Return

C.2

To:	Contra Costa County Housing Authority Board of Commissioners
From:	Joseph Villarreal, Housing Authority
Date:	July 12, 2022

Contra

Costa

County

Subject:

FYE 2021-2022 Budget Report

Action of Board On: 07/12/2022

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
Cynthia Jordan, Commissioner
Joanne Segura, 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: July 12, 2022
,

BY:	, Deputy

RECOMMENDATIONS

ACCEPT the Fiscal Year End 2021-2022 Unaudited Budget Report for the period ending 3/31/2022.

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 Fiscal Year Ending 3/31/2022. The report begins with a summary of HACCC’s overall fiscal standing at the end of the fiscal year. 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 fiscal year end 3/31/2022 is shown in the chart below. Activity in the Housing Choice Vouchers 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	$ 5,229,453
Public Housing favorable variance	1,304,332
State and Local favorable variance	1,269,939
Housing Certificate favorable variance	331,699
Agency Favorable Variance	$ 8,135,423

Expenditure Variance Summary
Housing Choice Vouchers unfavorable variance	$ 5,765,640
State and Local unfavorable variance	1,101,650
Housing Certificate unfavorable variance	207,453
Public Housing favorable variance	($ 275,857)
Agency Unfavorable Variance	$ 6,798,886

HACC Agency Summary	Annual Budget	Annual Total	Variance
Revenue	$ 209,095,880	$ 217,231,303	$ 8,135,423
Expenditures	$ 209,110,005	$ 215,908,891	$ 6,798,886
	$ -14,125	$ 1,322,412

The net change to overall reserves was an increase of $1,322,412. The summary of Agency Reserves by Program and type is as follows:

Analysis of Agency Reserves	Beginning Balance 4/1/21 (Audited)	Actual for FY 3/31/2022 (Unaudited)	Reserve Balance FY period ending 3/31/2022 (Unaudited)
Total Reserves	$ 23,663,335	$ 1,322,412	$ 24,985,747

Net Invested in Capital Assets
Housing Choice Vouchers	$ 1,469,492	$ -35,495	$ 1,433,997
Public Housing & Cap. Funds	$ 7,546,665	$ 419,281	$ 7,965,946
State & Local Programs	$ 13,276,021	$ -1,009,975	$ 12,266,046
Housing Certificates Programs	$ -0-	$ -0-	$ -0-
Total Capital Assets	$ 22,292,178	$ -626,189	$ 21,665,989

Restricted Reserves
Housing Choice Vouchers	$ 1,748,306	$ -96,402	$ 1,651,904
Public Housing & Cap. Funds	$ -0-	$ -0-	$ -0-
State & Local Programs	$ 2,519,325	$ 49,496	$ 2,568,821
Housing Certificates Programs	$ -0-	$ -0-	$ -0-
Total Restricted Reserves	$ 4,267,631	$ -46,906	$ 4,220,725

Unrestricted Reserves
Housing Choice Vouchers	$ 2,830,208	$ 293,615	$ 3,123,823
Public Housing & Cap. Funds	$ -1,881,162	$ 1,616,450	$ -264,712
State & Local Programs	$ -3,845,520	$ 85,442	$ -3,760,078
Housing Certificates Programs	$ -0-	$ -0- .	$ -0-
Total Unrestricted Reserves	$ -2,896,474	$ 1,995,507	$ -900,967

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 has then normal Housing Voucher Program (9,368), the Main Stream Voucher Program (172), the Emergency Housing Voucher Program (201), and the Family Self-Sufficiency Voucher Program. The total authorized affordable housing assistance is 9,741.
Summary of Difference Between Budgeted and Annual Estimate:

Revenue – The primary revenue differences was a result of increased funding for HAP payments in the amount of $5,057,127 and $172,326 increase in administrative fees.

Expenditures- The primary expenditure differences was a result of increased HAP payments in the amount of $5,765,640.

Housing Choice Vouchers	Annual Budget	Annual Total	Variance
Revenue	$ 181,696,744	$ 186,926,197	$ 5,229,453
Expenditures	$ 180,998,839	$ 186,764,479	$ 5,765,640
	$ 697,905	$ 161,718

Analysis of Program Reserves:

Housing Choice Vouchers	Beginning Balance 4/1/2021 (Unaudited)	Actual for FY 3/31/2022 (Unaudited)	Reserve Balance period ending 3/31/2022 (Unaudited)
Net Invested in Capital Assets	$ 1,469,492	$ -35,495	$ 1,433,997
Restricted Reserves	$ 1,748,306	$ -96,402	$ 1,651,904
Unrestricted Reserves	$ 2,830,208	$ 293,615	$ 3,123,823
Total Reserves	$ 6,048,006	$ 161,718	$ 6,209,724

Public Housing Operating and Capital Funds

Program Summary - HACCC owns and manages 983 public housing units at 13 different sites throughout the County. The Agency disposed of roughly 196 units on 3 sites in the N. Richmond area. The Operating funds for all 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 increased revenue is a result of normal operating subsidy in the amount of $632,275 and $672,057 operating short fall funds.

Expenditures - The $275,857 expenditure difference is a result of reduced operating expenditures.

Public Housing Operating and Capital Fund	Annual Budget	Annual Total	Variance
Revenue	$ 13,924,080	$ 15,228,412	$ 1,304,332
Expenditures	$ 13,468,538	$ 13,192,681	$ 275,857
	$ 455,542	$ 2,035,731

Analysis of Program Reserves:

Public Housing & Capital Fund	Beginning Balance 4/1/2022 (Unaudited)	Actual for FY 3/31/2022 (Unaudited)	Reserve Balance period ending 3/31/22 (Unaudited)
Net Invested in Capital Assets	$ 7,546,665	$ 419,281	$ 7,965,946
Restricted Reserves	$ -0-	$ -0-	$ -0-
Unrestricted Reserves	$ -1,881,162	$ 1,616,450	$ -264,712
Total Reserves	$ 5,665,503	$ 2,035,731	$ 7,701,234

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 $1,269,939 increase revenue is a result of $816,009 of non-restricted HUD funds and $453,930 from tax credit properties.

Expenditures - The $1,101,650 expenditure increase were a result of Capitalized items related to the tax credit properties.

State & Local Programs	Annual Budget	Annual Total	Variance
Revenue	$ 7,018,676	$ 8,288,615	$ 1,269,939
Expenditures	$ 8,062,002	$ 9,163,652	$ 1,101,650
	$ -1,043,326	$ -875,037

Analysis of Reserves:

State & Local Programs	Beginning Balance 4/1/2021 Unaudited	Actual for FY 3/31/2022 (Unaudited)	Reserve Balance period ending 3/31/22 (Unaudited)
Net Invested in Capital Assets	$ 13,276,021	$ -1,009,975	$ 12,266,046
Restricted Reserves	$ 2,519,325	$ 49,496	$ 2,568,821
Unrestricted Reserves	$ -3,845,520	$ 85,442	$ -3,760,078
Total Reserves	$ 11,949,826	$ - 875,037	$ 11,074,789

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 300 clients under this program.

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

Revenue- The $331,699 revenue difference is an increase HAP funding of $110,356 and an increase of $221,343 in administrative funding.

Expenditures- The -$207,455 expenditure difference is a result of $110,356 increase in HAP items and an increase of $97,099 in tenant and social service costs..

Housing Certificate Programs	Annual Budget	Annual Total	Variance
Revenue	$ 6,456,380	$ 6,788,079	$ 331,699
Expenditures	$ 6,580,624	$ 6,788,079	$ 207,455
	$ (124,244)	$ -0-

Analysis of Reserves:

Housing Certificate Programs	Beginning Balance 4/1/2021 Audited	Actual for FY 3/31/2022 (Unaudited)	Reserve Balance period ending 6/30/2021 (Unaudited)

Restricted Reserves	$ -0-	$ -0-	$ -0-
Unrestricted Reserves	$ -0-	$ -0-	$ -0-
Total Reserves	$ -0-	$ -0-	$ -0-

FISCAL IMPACT

None. Information item only.

CONSEQUENCE OF NEGATIVE ACTION

Should the Board of Commissioners elect not to accept the report it would result in an audit finding of non-compliance and could ultimately affect future funding from the U.S. Department of Housing and Urban Development (HUD).