Agenda

Return

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

Action of Board On: 09/15/2015

APPROVED AS RECOMMENDED

OTHER

Clerks Notes:

VOTE OF SUPERVISORS

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
,

BY:	, Deputy

RECOMMENDATIONS

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

BACKGROUND (CONT'D)

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.

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 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:

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

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)

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)

VOTE OF SUPERVISORS

RECOMMENDATIONS

BACKGROUND

BACKGROUND (CONT'D)

FISCAL IMPACT

CONSEQUENCE OF NEGATIVE ACTION

CLERK'S ADDENDUM