HACCC's overall budget position for the quarter ending 6/30/19 is shown in the chart below. Activity in the Section 8 Voucher and Housing Certificate programs had the most significant impact on HACCC's budget.  
  
The variance decrease in revenue of $7,677,196 is a result $6.94 million dollars of HAP funding not currently drawn in the housing voucher program due to timing issues related to program expansion associated with Richmond. Revenues were also reduced by a set aside of $740,000 for building improvements at the Martinez Voucher Office.  
  
The variance shown in projected Revenues and Expenditures is almost entirely tied to timing issues associated with the absorption of the Richmond Housing Authority's voucher program. Approximately $6.94 million of Housing Assistance Payments (HAP) had not been made at the time the books were closed for this report. The remaining variance is a result various operational savings.  
  

The net change to overall reserves was a decrease of $385,353. By program Housing Choice Voucher reserves decreased by $373,555 and State and Local a decrease by $179,253, while Public Housing reserves increased by $167,389 and the Housing Certificate Program saw a small increase of $66. The chart below reflects the current reserve balances by program.

*Reserve levels do not include unfunded pension & OPEB liability of roughly $12.2 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 6,936 families. However, due to funding constraints, utilization has drop to approximately 6,027 families. These numbers will be modified this fiscal year due to the program expansion of the Richmond housing vouchers program.  
  
Summary of Difference Between Budgeted and Annual Estimate:  
  
Revenue – As mentioned previously, the revenue decrease of $7,682,736 is a result of $6.94 million dollars of HAP funding not currently drawn in the housing voucher program due to timing issues related to program expansion associated with Richmond. Revenues were also reduced by a set aside of $740,000 for building improvements at the Martinez Voucher Office for roofing and air conditioning replacement.   
  
Expenditures - The projected decrease in expenditures of $7,317,414 is a result of $6.94 million of unexpended HAP and $377,414 of general operations expenditure reductions.   
  
  

None. Information item only.