2018 ANNUAL OPERATING BUDGET

Transcription

1 2018 ANNUAL OPERATING BUDGET THE HOUSING AUTHORITY OF THE CITY OF DURHAM, NORTH CAROLINA MISSION STATEMENT: TO DEVELOP, OWN, MANAGE AND CONTRIBUTE TO DIVERSE COMMUNITIES OF CHOICE.

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3 TABLE OF CONTENTS SECTION I INTRODUCTION TO THE BUDGET FOR 2018 Transmittal Letter... 5 Board of Commissioners... 6 Organizational Structure... 7 Staffing and Budget Allocations... 8 SECTION II THE AUTHORITY IN 2018 Profile of the Authority Funding Highlights Strategic Plan FY2018 Goals & Objectives SECTION III THE BUDGET FOR 2018 FY2018 Summary Budget FY2018/FY Summary Budget Comparison Low Income Public Housing (LIPH) LIPH Program Summary LIPH Budget Assumptions & Projections LIPH Consolidated Budget LIPH Property Management Team LIPH Property Management Team LIPH Property Management Team LIPH Property Management Team LIPH Property Management Team LIPH Property Management Team Affordable Housing (AFH) AFH Program Summary

4 TABLE OF CONTENTS AFH Budget Assumptions & Projections AFH Property Management Team Central Office Cost Center (COCC) COCC Program Summary COCC Budget Assumptions & Projections COCC Consolidated Budget Housing Choice Voucher Program (HCVP) HCVP Program Summary HCVP Budget Assumptions & Projections HCVP Budgets (Administration HAP) Development Ventures, Inc (DVI) DVI Program Summary DVI Budget Learning Assistance, Inc (LAI) LAI Program Summary and Budget Other Programs & Grants Birchwood and Hope VI Family Self Sufficiency Governors Crime Commission Rental Assistance Demonstration (RAD) RAD Program Summary RAD Budgets Damar & Morreene

5 SECTION I INTRODUCTION TO THE BUDGET FOR

6 2018 ANNUAL OPERATING BUDGET November 15, Board of Commissioners The Housing Authority of the City of Durham 330 East Main Street Durham, NC To the Board of Commissioners: I am pleased to present the 2018 preliminary budget proposal for The Housing Authority of the City of Durham (The Authority). The purpose of this document is to provide the Board, Staff and other Stakeholders with a comprehensive view of inflows and outflows of financial resources used for daily operations. In addition, it sheds light on how our programs are funded, how we allocate these funds annually and most importantly, how our strategic plans for the future will give this agency competitive advantage when it comes to affordable housing within the City of Durham. Over the past few years, our efforts to mitigate threats presented by funding shortfalls have been challenging. However, we are more committed than ever to strengthen our current programs, take advantage of new opportunities and improve efficiency. The annual budget and the Authority s policies are some of the most important statements that drive decision-making and management control. The entire staff stands ready to assist you during your review and discussions about this budget. Respectfully submitted, 2018 OPERATING INCOME (LOSS) Low Income Public Housing - $599,700 Low Income Public Housing (excluding RAD) - $316,157 Central Office Cost Center - $18,072 HCVP Administration ($85,011) Development Ventures, Inc - $6,570 Edgemont Elms Housing, Inc ($5,580) Goley Pointe, LLC - $1,740 Learning Assistance, Inc - $5,980 Preiss Steele Place, LLC - $145,148 Anthony Scott Chief Executive Officer 5

7 BOARD OF COMMISSIONERS The Housing Authority of the City of Durham is governed by a seven-member Board of Commissioners. The Board is comprised of active public servants within the Durham community who are appointed by the Durham City Council. These concerned and dedicated citizens serve without pay. Residents of subsidized housing also have the opportunity to serve as members of the Board. Each Commissioner is appointed for a five-year term. The Chief Executive Officer acts as the Secretary/Treasurer for the Board. Thomas M. Niemann, Chairman George K. Quick, Vice Chairman Daniel C. Hudgins, Member Gloria M. Nottingham, Member Patrice Nelson, Member Larry D. Yon, II., Member Robert Glenn, Member The Board of Commissioners ensure that the Authority operates within the State statutes and the programs are run according to HUD regulations. Through the approval and adoption of resolutions, the Board authorizes the Chief Executive Officer and Senior Staff to implement policies and procedures that define business activities. 6

8 ORGANIZATIONAL STRUCTURE The organization has a matrix structure where programs and functional responsibilities have reasonably equal weight. The Board of Commissioners appoints the Chief Executive Officer to administer the affairs of the Authority. 7

9 STAFFING AND BUDGET ALLOCATIONS Over the past (5) years, total staffing for the Authority has decreased from 112 to a budgeted number of 96 for This is mainly due to funding cuts and restructuring to improve efficiency. A new department, Administration was formed in, to streamline functionality. The department includes Human Resources, Safety & Security and Compliance. The main objective of the Compliance function is to ensure that the property management businesses and practices are compliant with Federal, State and Local regulations as well as requirements. Over the past few years, the Development department, which is charged with the management of the development arm of the agency, has been budgeted under Development Ventures Inc. Beginning in 2018, the Development department will be budgeted under the Central Office Cost Center. For budgeting and operational purposes, the staff is allocated to specific cost centers as follows: Operations Low Income Public Housing and Affordable Housing Operations Housing Choice Voucher Program Central Office Cost Center Other Grant Funded Programs The charts below show the 5-year trend for staffing in the Agency. 8

10 STAFFING Budget Allocations Cost Center Operations (LIPH and Affordable Housing) Property Management TEAM 1 AMP Scattered Sites AMP JJ Henderson AMP Forest Hills Heights Sub-total Team Property Management TEAM 2 AMP Cornwallis Road AMP Laurel Oaks Sub-total Team Property Management TEAM 3 AMP McDougald Terrace Sub-total Team Property Management TEAM 4 AMP Worth Street Goley Pointe Edgemont Elms Housing, Inc Priess-Steele Place, LLC Sub-total Team Property Management TEAM 5 AMP Morreene Road AMP Damar Court Sub-total Team Property Management TEAM 6 AMP Oldham Towers AMP Liberty Street AMP Hoover Road Sub-total Team Property Management TEAM 7 AMP Club Blvd AMP Oxford Manor Sub-total Team Residemt Selection Team LIPH Recertification Team Total Operations (LIPH AFH) Operations (HCVP) Housing Choice Voucher Program Total Operations (HCVP) Central Office Cost Center Executive Office Administration Financial Services Development Asset Management Resident Serivices Total COCC Grant Funded Family Self-Sufficiency st Century Governor's Crime Commission 1.00 Total Positions

11 SECTION II THE AUTHORITY IN

12 PROFILE OF THE AUTHORITY The Authority is an autonomous, non-profit municipal entity created by the City of Durham in 1949 pursuant to state law and the National Housing Act of The Authority exists to provide safe, decent, and sanitary housing for low-income families of Durham in accordance with the rules and regulations prescribed by the U.S. Department of Housing and Urban Development (HUD). Although it maintains close ties with the City on several respects, the Authority is not a component of the City, as defined by the pronouncements of the Governmental Accounting Standards Board (GASB). The City is not financially accountable for the operations of the Authority, has no responsibility of fund its deficits or receive its surpluses, and has not guaranteed the Authority s debt. The Authority currently has available 1,886 public housing units in 21 different communities located throughout the City of Durham. 477 of these units begun their transition to RAD in. Additionally, the Authority assists in providing 130 affordable housing units at 3 communities. The Authority is authorized to administer approximately 2,791 Housing Choice Vouchers that provide rental assistance to families renting housing units owned by private landlords. The Authority utilizes the business model of asset management as required by HUD. Funding, Budgeting, Accounting, Management and Oversight/Performance Assessment are completed on the project/program level. For 2018, DHA will manage 5 main businesses Low Income Public Housing, Housing Choice Voucher, Central Office Cost Center, Affordable Housing and Rental Assistance Demonstration. Also, Development Ventures Inc an instrumentality of the Authority will manage all its development and re-development activities. In addition, Learning Assistance Inc, a component unit of DHA, will manage its scholarship program. 11

13 FUNDING HIGHLIGHTS The primary source of external funding for the Authority is the U.S. Department of Housing and Urban Development (HUD) which provides funding for a variety of programs such as the Low Income Public Housing (LIPH) and the Housing Choice Voucher Program (HCVP). In addition to the federal programs, the Authority has established several legal entities to explore and develop innovative strategies for providing alternative affordable housing possibilities for low-to-moderate-income residents of the City of Durham. This has allowed the Authority the flexibility to develop several private/public partnerships to assist with the development of a variety of affordable housing projects. As shown in the tables below, funding for the Authority has continued to decrease over the last 5 years. In 2014, Operating Subsidy received was $8,339,712 compared to and expected amount of $7,838,088 in Also, DHA has not received any ROSS grants since 2016 and the award for FSS expected in 2018 is about $68,893 less than what was received in. LOW INCOME REPALCEMENT FISCAL YEAR PUBLIC HOUSING CAPITAL FUND HOUSING FACTOR ,339,712 2,306, , ,351,917 2,531, , ,260,124 2,702, ,188 8,261,168 2,660, , ,838,088 2,527, ,260 FISCAL YEAR HOUSING CHOICE VOUCHER PROGRAM (HAP) HOUSING CHOICE VOUCHER PROGRAM (ADMIN) ROSS GRANTS FSS GRANTS ,475,354 1,583, ,000 69, ,479,350 1,576, , , ,450,014 1,778, , ,446 19,508,122 1,760, , ,753,628 1,655, ,787 12

14 STRATEGIC PLAN - FY 2018 GOALS & OBJECTIVES STRATEGIC GOALS Strategic Goal 1 Develop Financial Stability & Operational Efficiency Strategic Goal 2 Achieve & Retain status as a High Performing Organization Strategic Goal 3 Maintain Strong Community Partnerships Strategic Goal 4 Cultivate and Maintain Quality Customer Service Strategic Goal 5 Create Healthy and Sustainable Communities Strategic Goal 6 Manage a Strong and Diversified Asset Portfolio STRATEGIC OBJECTIVES Strategic Objective 1A Improve financial operations, structure & reporting Strategic Objective 1B Diversify revenue sources Strategic Objective 1C Upgrade Information systems & technology Strategic Objective 1D Ensure work processes and policies are aligned to support DHA s mission Strategic Objective 2A Recruit & retain quality employees Strategic Objective 2B Strengthen DHA s financial wellbeing Strategic Objective 2C Obtain maximum performance measurement scores Strategic Objective 2D Develop and Internal Control system Strategic Objective 3A Build new and strengthen existing community relationships Strategic Objective 3B Increase community awareness Strategic Objective 3C Promote community involvement Strategic Objective 3D Support efforts to improve communities Strategic Objective 4A Ensure effective internal/external communication exists within the organization Strategic Objective 4B Treat everyone with RESPECT Strategic Objective 4C Ensure that DHA staff is knowledgeable about programs offered Strategic Objective 4D Build stronger levels of trust and transparency Strategic Objective 5A Elicit/Involve community participation in decisionmaking Strategic Objective 5B Promote public health and safety Strategic Objective 5C Provide diversity & diverse housing opportunities Strategic Objective 5D Improve availability of and access to opportunities Strategic Objective 6A Maintain wellmanaged properties and fleet as well as competitive rents Strategic Objective 6B Invest in private-market real estate Strategic Objective 6C Seek alternative funding sources Strategic Objective 6D Develop a pool of qualified builders, development partners and contractors 13

15 SECTION III THE BUDGET FOR

16 FY 2018 SUMMARY BUDGET Operating Operating % of Total Operating % of Total Income/ Fund/Entity Revenue Revenue Expenses Expenses (Loss) DHA Entities AM Ps (consolidated) $ 12,143, % $ 11,543, % $ 599,700 Central Office Cost Center $ 3,706, % $ 3,688, % $ 18,072 HCVP Administration $ 1,674, % $ 1,759, % $ (85,011) HCVP HAP $ 19,880, % $ 19,880, % $ - Development Ventures Incorporated $ 295, % $ 289, % $ 6,570 Edgemont Elms Housing, Inc. $ 422, % $ 428, % $ (5,580) Goley Pointe, LLC $ 112, % $ 110, % $ 1,740 Learning Assistance, Inc. $ 17, % $ 12, % $ 5,980 Total $ 38,254, % $ 37,712, % $ 541,471 15

17 FY 2018 SUMMARY BUDGET Operating Operating % of Total Operating % of Total Income/ Fund/Entity Revenue Revenue Expenses Expenses (Loss) DHA Entities AM Ps (consolidated) $ 12,143, % $ 11,543, % $ 599,700 Central Office Cost Center $ 3,706, % $ 3,688, % $ 18,072 HCVP Administration $ 1,674, % $ 1,759, % $ (85,011) HCVP HAP $ 19,880, % $ 19,880, % $ - Development Ventures Incorporated $ 295, % $ 289, % $ 6,570 Edgemont Elms Housing, Inc. $ 422, % $ 428, % $ (5,580) Goley Pointe, LLC $ 112, % $ 110, % $ 1,740 Learning Assistance, Inc. $ 17, % $ 12, % $ 5,980 Total $ 38,254, % $ 37,712, % $ 541,471 16

18 FY 2018/ SUMMARY BUDGET COMPARISON FY2018 FY Operating Operating Operating Operating Income/ Operating Operating Income/ % - % - Fund/Entity Revenue Expenses (Loss) Revenue Expenses (Loss) Revenues Expenses Low Income Public Housing 12,143,196 11,543, ,700 12,599,757 12,530,809 68,948-4% -9% Central Office Cost Center 3,706,746 3,688,674 18,072 3,331,325 3,113, ,422 10% 16% HCVP Administration 1,674,631 1,759,642 (85,011) 1,771,551 1,771, % -1% HCVP HAP 19,880,440 19,880,440-18,658,761 18,658,761-6% 6% Total (before eliminations) 37,405,013 36,872, ,761 36,361,394 36,075, ,370 3% 2% Low Income Public Housing (excluding RAD) 10,472,348 10,156, , Component Units Development Ventures Incorporated 295, ,181 6, , , , % -168% Edgemont Elms Housing, Inc. 422, ,158 (5,580) 470, , ,534-11% 19% Goley Pointe 112, ,965 1, % 100% Learning Assistance, Inc. 17,980 12,000 5,980 18,700 18,720 (20) -4% -56% Total 849, ,304 8,710 1,374,183 1,140, ,847-62% -36% Non-DHA Entities Preiss-Steele Place LLC 659, , , , , ,308-3% 25% Total $ 659,532 $ 514,384 $ 145,148 $ 677,097 $ 386,789 $ 290,308-3% 25% RAD Units Damar Court 535, ,463 (22,891) 100% 100% Morreene Road 1,113,536 1,082,970 30, % 100% Total $ 1,649,108 $ 1,641,433 $ 7,675 $ - $ - $ - 17

19 LOW INCOME PUBLIC HOUSING PROGRAM SUMMARY The Authority manages several communities pursuant to HUD's Low Rent Public Housing program. There are: 1,721 Public Housing units within 14 developments which are owned and managed by the Authority; 135* Public Housing units within 4 developments that were constructed pursuant to a HOPE VI Grant and managed by The Community Builders (TCB); 16* Public Housing units within 1 development owned by a component unit of the Authority, Edgemont Elms Housing, Inc and managed by the Authority; 14* Public Housing units within 1 development owned by a subsidiary of Development Ventures, Inc., Goley Pointe, LLC and managed by the Authority. *Operating Subsidy for these units pass-through the Authority. For the Public Housing program, HUD determines an allowable amount for the operation of a housing community, factors in the amount the Authority may be able to collect from tenants for rent they pay, and HUD then provides a subsidy to housing authorities to make up that difference. According to the asset management model mandated by HUD, each AMP is treated as a separate project for budgeting and accounting purposes. Although we present information and discuss budget changes for the AMPs on a consolidated basis, each AMP's budget stands on its own. For internal management purposes, and as reflected in this section for presentation of budgets, the Authority has organized operations staff into management teams. Each management team is responsible for their assigned AMPs. In some cases, like Management Team 3, this may be a single property like McDougald Terrace. In other cases, like Management Team 1, there may be multiple properties like Scattered Sites, JJ Henderson and Forest Hill Heights. In cases where multiple properties are managed, costs for the management team are allocated. The most common allocation is for salaries and related personnel costs, which are allocated based on the number of bedrooms per community. Depending on the nature of the expense, the allocation may also be done based on the number of units without regard to bedroom size. On a consolidated basis, budgeted expenses for the AMPs for the FY2018 Budget are $11,671,320, an increase of $254,779 (2%) from expected FY expenses. At the time of this report, Damar and Morreene are included under LIPH pending closings of RAD transactions. Budgeted revenues are $12,143,197, a decrease of $378,867 (3%) from expected FY revenues. This is budgeted to yield net operating income of $471,877. In those cases, where individual AMPs have deficits, the consolidated unrestricted net position (surplus) for 2018 will be used to balance the budget. 18

20 LOW INCOME PUBLIC HOUSING FY2018 BUDGET ASSUMPTIONS & PROJECTIONS The following information provides additional detail regarding the projections of revenues and expenses for the AMPs. REVENUES: 1. Dwelling Rental income is budgeted based on actual rent roll information for January September. The October and December rent roll amounts were projected using the average of the previous 9 months. The numbers were then averaged over 12 months and used to determine 2018 occupancy rates and rental income totals. 2. Unless otherwise specified, all other tenant revenue was budgeted using a 3% cost of living adjustment increase on the estimated amounts. 3. Operating Subsidy is budgeted at 88% of the total approved eligibility for. Final funding for was unknown when the 2018 budget was being prepared. Although the calculated eligibility amount for had been approved by HUD, the final awarded amount may be prorated at less than 100%. 4. Capital Fund administrative revenue is budgeted at (-%5) decrease from actual receipts in. This decrease is due to anticipated budgetary cuts by the Federal government. 5. Other Revenue includes non-dwelling rental income and all other income received for the AMP from non-tenants. EXPENSES: 1. Administrative salaries - All administrative salaries are based on actual rates. Any vacated positions are budgeted for using the mid-range salaries for the position. 2. Management Fees are based on projected occupancy levels multiplied by the 2015 HUDpublished Multifamily management fee rate of $53.20 per unit per month. 3. Bookkeeping fees are budgeted for by multiplying the maximum-allowed rate of $7.50 per unit per month by the projected leasing rates. 4. All other administrative expenses, unless specified by contract/agreement/management estimate, are budgeted using a 3% cost of living adjustment increase from. 5. Asset Management Fees are budgeted for AMPS that show excess cash from the 2016 audited financials. These fees can be charged to each AMP each month by multiplying the number of ACC units by $10 per unit, subject to excess cash. 19

21 LOW INCOME PUBLIC HOUSING CONSOLIDATED FY2018 BUDGET LIPH - Consolidated FY2018 Budget Budget Jan - Sep Estimated 2018 Annual % Annual REVENUES Total Tenant Revenue 3,963,241 2,846,406 4,042,603 4,086,250 43,648 1% Total Fee Revenue 7,939,867 6,313,081 8,349,146 7,922,417 (426,729) -5% Total Other Revenue 135,845 97, , ,530 4,214 3% TOTAL REVENUE 12,038,953 9,256,551 12,522,064 12,143,197 (378,867) -3% EXPENSES Total Operating - Administrative 3,260,582 2,442,708 3,403,520 3,330,056 (73,465) -2% Total Tenant Services 262, , , ,120 (17,040) -8% Total Utilities 3,522,957 2,176,782 2,902,341 2,982,769 80,428 3% Total Maintenance 3,940,772 3,127,392 4,186,102 4,233,992 47,890 1% Total Protective Services 104,750 1,424 1,899 72,921 71, % Total Insurance Premiums 450, , , ,298 16,224 4% Total Other General Expenses 442, , , ,341 1,897 1% Total Interest Expense and Amortization Cost TOTAL OPERATING EXPENSES 11,984,320 8,355,615 11,416,541 11,543, ,956 1% EXCESS of OPERATING REVENUE over OPERATING EXPENSES 54, ,937 1,105, ,700 (505,823) 26% TOTAL EXPENSES 11,984,320 8,359,815 11,416,541 11,543, ,956 1% EXCESS (DEFICIENCY) of TOTAL REVENUE over(under) TOTAL 54, ,937 1,105, ,700 (505,823) (To)/From Unrestricted Net Position (54,633) (900,937) (1,105,523) (599,700) 505,823 in Net Position

22 LOW INCOME PUBLIC HOUSING PROPERTY MANAGEMENT TEAM 1 Management Team 1 is responsible for managing 3 properties 1. Scattered Sites AMP #003 (1962) This property is made up of 50 residential units and 1 management office/community center. It is a designated senior housing development. 2. JJ Henderson AMP #009 (1978) This property is made up of 178 residential units and is also a designated senior housing development 3. Forest Hill Heights AMP #014 (1981) This property is made up of 55 residential units and is also a designated senior housing development Staffing for Management Team 1 is comprised of the positions shown in the organizational chart below. The costs for personnel are allocated as indicated in the pie graph. 19% 18% 63% Scattered Sites JJ Henderson Forest Hills 21

23 LOW INCOME PUBLIC HOUSING FY 2018 BUDGET SCATTERED SITES LIPH - Scattered Sites FY2018 Budget Budget Jan - Sep Estimated 2018 Annual % Annual REVENUES Total Tenant Revenue 163, , , ,483 (273) 0% Total Fee Revenue 154, , , ,688 (7,802) -5% Total Other Revenue % TOTAL REVENUE 317, , , ,181 (8,074) -3% EXPENSES Total Operating - Administrative 98,955 68, ,026 97,682 (2,344) -2% Total Tenant Services 7,250 4,500 6,000 6,000-0% Total Utilities 73,198 60,631 80,842 83,264 2,423 3% Total Maintenance 95,805 57,247 92,580 80,196 (12,384) -13% Total Protective Services 2, Total Insurance Premiums 8,806 6,016 8,022 8, % Total Other General Expenses 13,000-7,672 7,398 (273) -4% Total Interest Expense and Amortization Cost TOTAL OPERATING EXPENSES 299, , , ,866 (12,275) -4% EXCESS of OPERATING REVENUE over OPERATING EXPENSES 18,545 43,563 16,114 20,315 4,200 26% TOTAL EXPENSES 299, , , ,866 (12,275) -4% EXCESS (DEFICIENCY) of TOTAL REVENUE over(under) TOTAL 18,545 43,563 16,114 20,315 4,200 (To)/From Unrestricted Net Position (18,545) (43,563) (16,114) (20,315) (4,200) in Net Position

24 LOW INCOME PUBLIC HOUSING FY 2018 BUDGET JJ HENDERSON LIPH - JJ Henderson FY2018 Budget Budget Jan - Sep Estimated 2018 Annual % Annual REVENUES Total Tenant Revenue 527, , , ,252 27,282 6% Total Fee Revenue 475, , , ,999 (24,581) -5% Total Other Revenue 38,681 24,696 32,928 33, % TOTAL REVENUE 1,041, , , ,167 3,688 0% EXPENSES Total Operating - Administrative 342, , , ,997 25,748 8% Total Tenant Services 25,665 16,020 21,240 21, % Total Utilities 270, , , ,874 6,608 3% Total Maintenance 356, , , ,481 17,872 5% Total Protective Services 6, ,000 6,000 Total Insurance Premiums 48,749 36,250 48,334 50,064 1,730 4% Total Other General Expenses 27,939 1,628 26,212 28,720 2,508 10% Total Interest Expense and Amortization Cost TOTAL OPERATING EXPENSES 1,079, , ,909 1,032,496 60,587 6% EXCESS of OPERATING REVENUE over OPERATING EXPENSES (38,356) 27,719 7,570 (49,329) (56,899) -752% TOTAL EXPENSES 1,079, , ,909 1,032,496 60,587 6% EXCESS (DEFICIENCY) of TOTAL REVENUE over(under) TOTAL (38,356) 27,719 7,570 (49,329) (56,899) (To)/From Unrestricted Net Position 38,356 (27,719) (7,570) 49,329 56,899 in Net Position

25 LOW INCOME PUBLIC HOUSING FY 2018 BUDGET FOREST HILL HEIGHTS LIPH - Forest Hills FY2018 Budget Budget Jan - Sep Estimated 2018 Annual % Annual REVENUES Total Tenant Revenue 188, , , , % Total Fee Revenue 140, , , ,996 (7,438) -5% Total Other Revenue 2,153 1,597 2,130 2, % TOTAL REVENUE 330, , , ,258 (6,916) -2% EXPENSES Total Operating - Administrative 104,528 72,295 95, ,488 8,803 9% Total Tenant Services 7,975 4,950 6,600 6,600-0% Total Utilities 103,149 64,043 85,388 87,949 2,562 3% Total Maintenance 107,392 84, , ,767 10,419 9% Total Protective Services 1, Total Insurance Premiums 9,064 6,608 8,811 9, % Total Other General Expenses 9, ,947 10,625 (321) -3% Total Interest Expense and Amortization Cost TOTAL OPERATING EXPENSES 343, , , ,116 22,337 EXCESS of OPERATING REVENUE over OPERATING EXPENSES (12,488) 28,489 23,395 (5,858) (29,253) TOTAL EXPENSES 343, , , ,116 22,337 EXCESS (DEFICIENCY) of TOTAL REVENUE over(under) TOTAL (12,488) 28,489 23,395 (5,858) (29,253) (To)/From Unrestricted Net Position 12,488 (28,489) (23,395) 5,858 29,253 in Net Position

26 LOW INCOME PUBLIC HOUSING PROPERTY MANAGEMENT TEAM 2 Management Team 2 is responsible for managing 2 properties 1. Cornwallis Road AMP #005 (1967) This property is made up of 200 residential units and 1 management office/community center. 2. Laurel Oaks AMP #015 (2004) This property is made up of 30 residential units and 1 management office. It is a designated senior housing development Staffing for Management Team 1 is comprised of the positions shown in the organizational chart below. The costs for personnel are allocated as indicated in the pie graph. 14% 86% Cornwallis Laurel Oaks 25

27 LOW INCOME PUBLIC HOUSING FY2018 BUDGET CORNWALLIS LIPH - Cornwallis FY2018 Budget Budget Jan - Sep Estimated 2018 Annual % Annual REVENUES Total Tenant Revenue 374, , , ,534 14,526 4% Total Fee Revenue 1,181, ,322 1,219,312 1,156,968 (62,344) -5% Total Other Revenue 31, % TOTAL REVENUE 1,587,470 1,183,909 1,598,395 1,550,579 (47,816) -3% EXPENSES Total Operating - Administrative 413, , , ,350 29,732 7% Total Tenant Services 28,565 18,000 23,640 24, % Total Utilities 587, , , ,990 12,116 3% Total Maintenance 508, , , ,441 27,832 4% Total Protective Services 4, ,000 5,000 Total Insurance Premiums 71,663 64,728 86,305 87,595 1,290 1% Total Other General Expenses 8,000 6,444 8,592 8, % Total Interest Expense and Amortization Cost TOTAL OPERATING EXPENSES 1,622,013 1,271,634 1,695,638 1,772,226 76,588 5% EXCESS of OPERATING REVENUE over OPERATING EXPENSES (34,543) (87,724) (97,243) (221,647) (124,404) TOTAL EXPENSES 1,622,013 1,271,634 1,695,638 1,772,226 76,588 EXCESS (DEFICIENCY) of TOTAL REVENUE over(under) TOTAL (34,543) (87,724) (97,243) (221,647) (124,404) (To)/From Unrestricted Net Position 34,543 87,724 97, , ,404 in Net Position

28 LOW INCOME PUBLIC HOUSING FY2018 BUDGET LAUREL OAKS LIPH - Laurel Oaks FY2018 Budget Budget Jan - Sep Estimated 2018 Annual % Annual REVENUES Total Tenant Revenue 80,598 93, , ,981 6,758 6% Total Fee Revenue 177, , , ,206 (9,330) -5% Total Other Revenue 3, % TOTAL REVENUE 260, , , ,199 (2,572) -1% EXPENSES Total Operating - Administrative 72,768 55,739 78,488 81,339 2,851 4% Total Tenant Services 21,828 2,700 3,600 3,600-0% Total Utilities 111,957 60,185 80,247 82,654 2,407 3% Total Maintenance 85,695 68,039 90, ,506 19,787 22% Total Protective Services 2, ,500 1,500 Total Insurance Premiums 7,955 5,821 7,761 7, % Total Other General Expenses 2,000 45,328 62,583 64,785 2,202 4% Total Interest Expense and Amortization Cost TOTAL OPERATING EXPENSES 305, , , ,294 28,897 EXCESS of OPERATING REVENUE over OPERATING EXPENSES (44,040) (4,274) (23,626) (55,095) (31,469) TOTAL EXPENSES 305, , , ,294 28,897 EXCESS (DEFICIENCY) of TOTAL REVENUE over(under) TOTAL (44,040) (4,274) (23,626) (55,095) (31,469) (To)/From Unrestricted Net Position 44,040 4,274 23,626 55,095 31,469 in Net Position

29 LOW INCOME PUBLIC HOUSING PROPERTY MANAGEMENT TEAM 3 Management Team 3 is responsible for managing 1 property 1. McDougald Terrace AMP #001 (1959) This property is made up of 360 residential units and 1 management office/community center. Staffing for Management Team 3 is comprised of the positions shown in the organizational chart below. The costs for personnel are allocated as indicated in the pie graph. 100% McDougald 28

30 LOW INCOME PUBLIC HOUSING FY2018 BUDGET MCDOUGALD TERRACE LIPH - McDougald FY2018 Budget Budget Jan - Sep Estimated 2018 Annual % Annual REVENUES Total Tenant Revenue 650, , , ,547 (704) 0% Total Fee Revenue 1,979,649 1,563,296 2,169,920 2,059,112 (110,808) -5% Total Other Revenue 1,673 1,341 2,681 2, % TOTAL REVENUE 2,631,771 2,080,410 2,946,853 2,835,414 (111,438) -4% EXPENSES Total Operating - Administrative 703, , , ,982 49,077 7% Total Tenant Services 52,175 32,400 43,200 41,280 (1,920) -4% Total Utilities 638, , , ,574 18,716 3% Total Maintenance 973, , , , % Total Protective Services 27, ,268 25, % Total Insurance Premiums 79,667 56,211 74,948 77,949 3,001 4% Total Other General Expenses 30,000 11,007 22,135 20,405 (1,729) -8% Total Interest Expense and Amortization Cost TOTAL OPERATING EXPENSES 2,503,922 1,788,529 2,368,329 2,461,025 92,697 4% EXCESS of OPERATING REVENUE over OPERATING EXPENSES 127, , , ,389 (204,135) TOTAL EXPENSES 2,503,922 1,788,529 2,368,329 2,461,025 92,697 EXCESS (DEFICIENCY) of TOTAL REVENUE over(under) TOTAL 127, , , ,389 (204,135) (To)/From Unrestricted Net Position (127,849) (291,880) (578,524) (374,389) 204,135 in Net Position

31 LOW INCOME PUBLIC HOUSING PROPERTY MANAGEMENT TEAM 5 Management Team 5 is responsible for managing 2 properties 1. Morreene Road AMP #010 (1968) This property is made up of 224 residential units and 1 management office/community center. 2. Damar Court AMP #011 (1967) This property is made up of 30 residential units and 1 management office. It is a designated senior housing development Staffing for Management Team 5 is comprised of the positions shown in the organizational chart below. The costs for personnel are allocated as indicated in the pie graph. These budgets are pre-rad Morreene and Damar are the first two properties to convert to RAD with anticipated closings before December. 44% 56% Morreene Road Damar Court 30

32 LOW INCOME PUBLIC HOUSING FY 2018 BUDGET MORREENE ROAD LIPH - Morreene Road FY2018 Budget Budget Jan - Sep Estimated 2018 Annual % Annual REVENUES Total Tenant Revenue 425, , , , % Total Fee Revenue 595, , , ,077 (30,777) -5% Total Other Revenue 4,200 33,238 44,317 45,647 1,330 3% TOTAL REVENUE 1,025, ,434 1,061,536 1,032,404 (29,132) -3% EXPENSES Total Operating - Administrative 309, , , ,285 (58,812) -16% Total Tenant Services 29,405 20,160 26,880 26,880-0% Total Utilities 237, , , ,681 5,932 3% Total Maintenance 192, , , ,435 (10,697) -5% Total Protective Services 4, ,500 3,500 Total Insurance Premiums 31,085 22,698 30,265 31,536 1,272 4% Total Other General Expenses 220,295-20,588 19,994 (594) -3% Total Interest Expense and Amortization Cost TOTAL OPERATING EXPENSES 1,024, , , ,311 (59,399) EXCESS of OPERATING REVENUE over OPERATING EXPENSES , , ,093 30,267 TOTAL EXPENSES 1,024, , , ,311 (59,399) EXCESS (DEFICIENCY) of TOTAL REVENUE over(under) TOTAL , , ,093 30,267 (To)/From Unrestricted Net Position (210) (194,441) (210,826) (241,093) (30,267) in Net Position

33 LOW INCOME PUBLIC HOUSING FY 2018 BUDGET DAMAR COURT LIPH - Damar Court FY2018 Budget Budget Jan - Sep Estimated 2018 Annual % Annual REVENUES Total Tenant Revenue 183, , , ,379 (992) -1% Total Fee Revenue 489, , , ,037 (24,954) -5% Total Other Revenue % TOTAL REVENUE 673, , , ,444 (25,946) -4% EXPENSES Total Operating - Administrative 194, , , ,110 (21,057) -11% Total Tenant Services 14,645 9,180 18,360 12,240 (6,120) -33% Total Utilities 202, , , ,929 4,629 3% Total Maintenance 203, , , ,583 (44,412) -17% Total Protective Services 10, ,768 2, % Total Insurance Premiums 23,204 16,126 21,502 23,448 1,946 9% Total Other General Expenses 25,283 1,395 2,419 1,916 (503) -21% Total Interest Expense and Amortization Cost TOTAL OPERATING EXPENSES 673, , , ,994 (63,009) EXCESS of OPERATING REVENUE over OPERATING EXPENSES ,107 5,386 42,449 37,063 TOTAL EXPENSES 673, , , ,994 (63,009) EXCESS (DEFICIENCY) of TOTAL REVENUE over(under) TOTAL ,107 5,386 42,449 37,063 (To)/From Unrestricted Net Position (210) (14,107) (5,386) (42,449) (37,063) in Net Position

34 LOW INCOME PUBLIC HOUSING PROPERTY MANAGEMENT TEAM 6 Management Team 6 is responsible for managing 3 properties 1. Oldham Towers AMP #004 (1967) This property is made up of 106 residential units and 1 community center. 2. Liberty Street AMP #006 (1972) This property is made up of 108 residential units and 1 management office. 3. Hoover Road AMP #008 (1969) This property is made up of 54 residential units and 1 management office. Staffing for Management Team 6 is comprised of the positions shown in the organizational chart below. The costs for personnel are allocated as indicated in the pie graph. 35% 22% 43% Oldham Towers Liberty Street Hoover Road 33

35 LOW INCOME PUBLIC HOUSING FY2018 BUDGET OLDHAM TOWERS LIPH - Oldham FY2018 Budget 2018 Annual % Annual Budget Jan - Sep Estimated REVENUES Total Tenant Revenue 264, , , , % Total Fee Revenue 311, , , ,062 (16,931) -5% Total Other Revenue 10,600 2,031 2,708 2, % TOTAL REVENUE 586, , , ,638 (15,936) -3% EXPENSES Total Operating - Administrative 172, , , ,276 (3,388) -2% Total Tenant Services 15,325 9,540 19,080 12,720 (6,360) -33% Total Utilities 117,411 72,254 96,342 99,224 2,882 3% Total Maintenance 179, , , ,772 5,472 3% Total Protective Services 12, ,000 4, % Total Insurance Premiums 20,505 14,832 19,776 20, % Total Other General Expenses 23,681 4,470 19,064 19,024 (40) 0% Total Interest Expense and Amortization Cost TOTAL OPERATING EXPENSES 541, , , ,494 3,747 1% EXCESS of OPERATING REVENUE over OPERATING EXPENSES 45,527 81,270 71,828 52,145 (19,683) TOTAL EXPENSES 541, , , ,494 3,747 EXCESS (DEFICIENCY) of TOTAL REVENUE over(under) TOTAL 45,527 81,270 71,828 52,145 (19,683) (To)/From Unrestricted Net Position (45,527) (81,270) (71,828) (52,145) 19,683 in Net Position

36 LOW INCOME PUBLIC HOUSING FY2018 BUDGET LIBERTY LIPH - Liberty FY2018 Budget Budget Jan - Sep Estimated 2018 Annual % Annual REVENUES Total Tenant Revenue 267, , , ,582 1,492 1% Total Fee Revenue 545, , , ,172 (29,551) -5% Total Other Revenue 5,000 4,201 5,601 5, % TOTAL REVENUE 818, , , ,524 (27,891) -3% EXPENSES Total Operating - Administrative 214, , , ,999 (11,857) -5% Total Tenant Services 15,660 9,720 12,960 12,960-0% Total Utilities 220, , , ,306 5,659 3% Total Maintenance 268, , , ,263 7,480 3% Total Protective Services 7, ,000 5,000 Total Insurance Premiums 25,412 18,944 25,259 26, % Total Other General Expenses 19,633 29,442 44,456 45, % Total Interest Expense and Amortization Cost TOTAL OPERATING EXPENSES 771, , , ,941 7,980 1% EXCESS of OPERATING REVENUE over OPERATING EXPENSES 46,558 98,135 79,454 43,583 (35,871) TOTAL EXPENSES 771, , , ,941 7,980 1% EXCESS (DEFICIENCY) of TOTAL REVENUE over(under) TOTAL 46,558 98,135 79,454 43,583 (35,871) (To)/From Unrestricted Net Position (46,558) (98,135) (79,454) (43,583) 35,871 in Net Position

37 LOW INCOME PUBLIC HOUSING FY2018 BUDGET HOOVER LIPH - Hoover FY2018 Budget 2018 Annual % Annual Budget Jan - Sep Estimated REVENUES Total Tenant Revenue 102,546 72, , ,541 (2,721) -2% Total Fee Revenue 355, , , ,995 (19,453) -5% Total Other Revenue 4,000 3,425 4,567 4, % TOTAL REVENUE 462, , , ,240 (22,037) -4% EXPENSES Total Operating - Administrative 136, , , ,197 (36,637) -21% Total Tenant Services 7,830 4,860 9,720 6,480 (3,240) -33% Total Utilities 165,467 99, , ,084 3,993 3% Total Maintenance 198, , , ,671 7,236 4% Total Protective Services 6, ,768 2, % Total Insurance Premiums 16,040 12,150 16,200 16, % Total Other General Expenses 10, % Total Interest Expense and Amortization Cost TOTAL OPERATING EXPENSES 540, , , ,021 (25,454) -5% EXCESS of OPERATING REVENUE over OPERATING EXPENSES (77,919) 2,810 (38,198) (34,781) 3,417 TOTAL EXPENSES 540, , , ,021 (25,454) -5% EXCESS (DEFICIENCY) of TOTAL REVENUE over(under) TOTAL (77,919) 2,810 (38,198) (34,781) 3,417 (To)/From Unrestricted Net Position 77,919 (2,810) 38,198 34,781 (3,417) in Net Position

38 LOW INCOME PUBLIC HOUSING PROPERTY MANAGEMENT TEAM 7 Management Team 7 is responsible for managing 2 properties 1. Oxford Manor AMP #012 (1972) This property is made up of 172 residential units and 1 management office/community center. 2. Club Boulevard AMP #007 (1969) This property is made up of 77 residential units and 1 management office. Staffing for Management Team 7 is comprised of the positions shown in the organizational chart below. The costs for personnel are allocated as indicated in the pie graph. 30% 70% Club Blvd Oxford Manor 37

39 LOW INCOME PUBLIC HOUSING FY2018 BUDGET CLUB BOULEVARD LIPH - Club Boulevard FY2018 Budget Budget Jan - Sep Estimated 2018 Annual % Annual REVENUES Net Tenant Rental Revenue 284, , , ,800 (1,378) 0% Total Tenant Revenue 289, , , ,699 (1,061) 0% Total Fee Revenue 437, , , ,023 (23,596) -5% Total Other Revenue 7,023 3,249 4,332 4, % TOTAL REVENUE 734, , , ,496 (24,215) -3% EXPENSES Total Operating - Administrative 143, , , ,129 4,367 9% Total Tenant Services 11,165 6,930 9,240 9,240-0% Total Utilities 269, , , ,666 6,777 3% Total Maintenance 221, , , ,623 4,119 2% Total Protective Services 10, ,000 5,000 Total Insurance Premiums 66,792 51,117 68,156 70,393 2,237 3% Total Other General Expenses 10,724 4,790 12,016 11,392 (624) -5% Total Interest Expense and Amortization Cost TOTAL OPERATING EXPENSES 734, , , ,442 21,877 4% EXCESS of OPERATING REVENUE over OPERATING EXPENSES (154) 22,013 27,579 (26,946) (46,092) TOTAL EXPENSES 734, , , ,442 21,877 4% EXCESS (DEFICIENCY) of TOTAL REVENUE over(under) TOTAL (154) 22,013 27,579 (26,946) (46,092) (To)/From Unrestricted Net Position 154 (22,013) (27,579) 26,946 46,092 in Net Position

40 LOW INCOME PUBLIC HOUSING FY2018 BUDGET OXFORD MANOR LIPH - Oxford Manor FY2018 Budget Budget Jan - Sep Estimated 2018 Annual % Annual REVENUES Total Tenant Revenue 435, , , ,582 (1,909) 0% Total Fee Revenue 1,093, ,064 1,154,602 1,095,573 (59,029) Total Other Revenue 28,435 23,196 30,928 31, % TOTAL REVENUE 1,557,978 1,183,258 1,654,021 1,594,011 (60,010) -4% EXPENSES Total Operating - Administrative 350, , , ,178 (65,899) -17% Total Tenant Services 24,795 15,480 20,520 20, % Total Utilities 525, , , ,863 5,704 1% Total Maintenance 543, , , ,071 13,066 2% Total Protective Services 10, ,618 10,018 Total Insurance Premiums 41,041 30,420 40,560 42,162 1,602 Total Other General Expenses 40,498 5,512 7,350 7, % Total Interest Expense and Amortization Cost TOTAL OPERATING EXPENSES 1,535, ,994 1,411,270 1,376,101 (35,169) EXCESS of OPERATING REVENUE over OPERATING EXPENSES 22, , , ,910 (24,841) TOTAL EXPENSES 1,535, ,194 1,411,270 1,376,101 (35,169) EXCESS (DEFICIENCY) of TOTAL REVENUE over(under) TOTAL 22, , , ,910 (24,841) (To)/From Unrestricted Net Position (22,441) (188,264) (242,751) (217,910) 24,841 in Net Position

41 AFFORDABLE HOUSING PROGRAM SUMMARY Through its commitment to increase and maintain affordability in housing within the City of Durham, the Authority has been instrumental in the development/redevelopment of affordable housing. The Authority, through Management Agreements, manages the following properties: Preiss Steele Place; Edgemont Elms Goley Pointe *Worth Street *This property was redeveloped by Development Ventures Inc., and is a Public Housing unit managed by Property Management Team 4. The Authority has a dedicated and trained staff, Property Management Team 4, that is responsible for managing these properties that are not conventional public housing properties. As with the other property management teams, salaries and related personnel costs are allocated to these properties by bedroom size. Preiss Steele Place is a Low Income Housing Tax Credit (LIHTC) development with 82 units. The property is also under a Project-Based contract with the Authority s HCV Program. All units in this development are eligible to receive rental assistance. Edgemont Elms is an affordable housing development with 58 units. 16 of these units are Public Housing units with operating subsidy that flows through the Authority. The remaining units market rate with some tenants receiving tenant-based rental assistance through the Authority s HCV Program. Goley Pointe is also an affordable housing development which has 20 units. Of these, 14 of them are Public Housing units with operating subsidy that flows through the Authority. The remaining units are marker rate with some tenants receiving tenant-based rental assistance through the Authority s HCV Program. Worth Street is a public housing unit that was redeveloped by DVI. The unit is managed by Property Management Team 4. It is important to note that although Authority staff manage these affordable housing properties, all except Worth Street are owned by separate legal entities. Edgemont Elms and Goley Pointe are considered component units of the Authority and are reported on the annual Financial Data Schedule submitted to HUD. 40

42 AFFORDABLE HOUSING FY2018 BUDGET ASSUMPTIONS & PROJECTIONS The following information provides additional detail regarding the projections of revenues and expenses budgeted for the Affordable Housing properties. REVENUES: 1. Dwelling Rental income for FY2018 is budgeted based on the January September rent rolls, with an estimate for November and December. The average of the total calculated was used to budget for Dwelling Rental Income, also includes all rental assistance received from other programs. 3. For Edgemont Elms and Goley Pointe, operating subsidy is budgeted for the public housing units at 88% of eligibility. EXPENSES: 1. Administrative salaries and all personnel related costs are allocated to the properties based on the number of bedrooms per property. 2. Management Fees for Preiss Steele Place are charged according to the management agreement which requires a charge of 6% of all dwelling rental income received at the property to be billed as fees. 3. Management Fees for Edgemont Elms are charged according to the management agreement which requires a charge of 6% of all dwelling rental income received at the property to be billed as fees. 4. Management Fees for Goley Pointe are charged according to the management agreement which requires a charge of 6% of all dwelling rental income received at the property to be billed as fees. 5. Preiss Steele Place, Edgemont Elms and Goley Pointe are charged a blended Resident Services Fee of $24.45 per unit per month. This is for Resident supportive services which include Safety and Security services provided to the property. 6. Edgemont Elms and Goley Pointe are charged $13.86 per unit per month for Compliance Services **The Public Housing Units (16) for Edgemont Elms are tentatively set to be converted to RAD PBRA effective December 1,. The management fee charged to the property will be decreased to 5.85% as per HUD Multifamily regulations. 41

43 AFFORDABLE HOUSING PROPERTY MANAGEMENT TEAM 4 Management Team 4 is responsible for managing 4 properties 1. Worth Street AMP #032 (2014) 2. Preiss Steele Place AFH #900 (1993) This property is made up of 82 residential units. It is a LIHTC development and is also under a Project-Based Voucher Contract with the HCV Program 3. Edgemont Elms AFH #800 (1989) This property is made up of 58 residential units, 16 of which are Public Housing 4. Goley Pointe AFH #700 (2016) This property is made up of 20 residential units, 14 of which are Public Housing Staffing for Management Team 7 is comprised of the positions shown in the organizational chart below. The costs for personnel are allocated as indicated in the pie graph. 2% 24% 0% 74% Edgemont Elms Goley Point 1010 Worth St Preiss-Steele Place 42

44 AFFORDABLE HOUSING FY2018 BUDGET WORTH STREET LIPH Worth FY2018 Budget 2018 Annual % Annual Budget Jan - Sep Estimated REVENUES Total Tenant Revenue 9,752 3,804 5,715 6, % Total Fee Revenue 1,600 1,764 2,644 2,509 (135) -5% Total Other Revenue TOTAL REVENUE 11,352 5,568 8,359 8, % EXPENSES Total Operating - Administrative 2,922 3,798 5,527 3,044 (2,482) -45% Total Tenant Services % Total Utilities % Total Maintenance 4, ,059 2,615 1, % Total Protective Services Total Insurance Premiums (3) -2% Total Other General Expenses 1, % Total Interest Expense and Amortization Cost TOTAL OPERATING EXPENSES 10,559 5,324 8,050 7,169 (882) EXCESS of OPERATING REVENUE over OPERATING EXPENSES ,472 1,164 TOTAL EXPENSES 10,559 5,324 8,050 7,169 (882) EXCESS (DEFICIENCY) of TOTAL REVENUE over(under) TOTAL ,472 1,164 (To)/From Unrestricted Net Position (793) (244) (309) (1,472) (1,164) in Net Position

45 AFFORDABLE HOUSING FY2018 BUDGET PREISS STEELE PLACE AFH - Preiss Steele Place FY2018 Budget Budget Jan - Sep Estimated 2018 Annual % Annual REVENUES Total Tenant Revenue 669, , , , % Total Fee Revenue Total Other Revenue 8,000 4,411 8,821 8,010 (811) -9% TOTAL REVENUE 677, , , ,532 (742) 0% EXPENSES Total Operating - Administrative 163, , , ,122 21,915 15% Total Tenant Services 6,250 5,794 8,195 8, % Total Utilities 60,000 54,607 72,810 74,994 2,184 3% Total Maintenance 128,009 75, , ,298 27,441 27% Total Protective Services % Total Insurance Premiums 18,735 19,817 26,423 26,255 (168) -1% Total Other General Expenses 7,280 4,261 5,681 5, % Total Interest Expense and Amortization Cost - 76, , ,516 3,073 3% TOTAL OPERATING EXPENSES 384, , , ,384 54,888 EXCESS of OPERATING REVENUE over OPERATING EXPENSES 293, , , ,148 (55,630) TOTAL EXPENSES 384, , , ,384 54,888 EXCESS (DEFICIENCY) of TOTAL REVENUE over(under) TOTAL 293, , , ,148 (55,630) (To)/From Unrestricted Net Position (293,140) (135,176) (200,778) (145,148) 55,630 in Net Position

46 AFFORDABLE HOUSING FY2018 BUDGET EDGEMONT ELMS AFH - Edgemont Elms FY2018 Budget 2018 Annual % Annual Budget Jan - Sep Estimated REVENUES Total Tenant Revenue 385, , , ,571 (72) 0% Total Fee Revenue 71,826 51,918 69,150 65,608 (3,542) Total Other Revenue 13,415 5,533 11,067 11, % TOTAL REVENUE 470, , , ,578 (3,282) -1% EXPENSES Total Operating - Administrative 143, , , ,993 4,087 Total Tenant Services 1,920 1,440 1,920 1,920-0% Total Utilities 53,416 29,558 39,411 40,594 1,182 3% Total Maintenance 112,930 82, , ,726 3,454 3% Total Protective Services 2, ,400 2,400 Total Insurance Premiums 11,934 8,681 11,575 12, % Total Other General Expenses 21,972 29,253 69,379 70,431 1,052 2% Total Interest Expense and Amortization Cost - 18,922 25,229 25, % TOTAL OPERATING EXPENSES 347, , , ,158 13,465 EXCESS of OPERATING REVENUE over OPERATING EXPENSES 122,744 28,445 11,167 (5,580) (16,747) TOTAL EXPENSES 347, , , ,158 13,465 EXCESS (DEFICIENCY) of TOTAL REVENUE over(under) TOTAL 122,744 28,445 11,167 (5,580) (16,747) (To)/From Unrestricted Net Position (122,744) (28,445) (11,167) 5,580 16,747 in Net Position

47 AFFORDABLE HOUSING FY2018 BUDGET GOLEY POINTE AFH - Goley Pointe FY2018 Budget Budget Jan - Sep Estimated 2018 Annual % Annual REVENUES Total Tenant Revenue 81,839 47,311 63,081 63, % Total Fee Revenue 63,000 35,362 52,204 49,594 (2,610) Total Other Revenue TOTAL REVENUE 144,839 82, , ,705 (2,580) -2% EXPENSES Total Operating - Administrative 40,859 27,734 40,458 43,707 3,249 Total Tenant Services 1, (933) Total Utilities 36,500 17,950 23,933 24, Total Maintenance 51,812 18,253 24,338 31,042 6,704 28% Total Protective Services Total Insurance Premiums 5,453 3,982 5,309 5, Total Other General Expenses 6,336-3,843 5,972 2,129 55% Total Interest Expense and Amortization Cost TOTAL OPERATING EXPENSES 142,640 68,619 98, ,965 12,150 EXCESS of OPERATING REVENUE over OPERATING EXPENSES 2,199 14,054 16,470 1,740 (14,730) TOTAL EXPENSES 142,640 68,619 98, ,965 12,150 EXCESS (DEFICIENCY) of TOTAL REVENUE over(under) TOTAL 2,199 14,054 16,470 1,740 (14,730) (To)/From Unrestricted Net Position (2,199) (14,054) (16,470) (1,740) 14,730 in Net Position

48 CENTRAL OFFICE COST CENTER PROGRAM SUMMARY The Central Office Cost Center (COCC) is the fund mandated by HUD to account for centralized services and functions necessary to operate a housing authority. Most of the functions of the COCC are not directly attributable to the public housing communities or other programs. In essence, they are the overhead functions. For the Authority, these include: Executive Office which includes Board of Commissioners Administration which includes Human Resources Compliance Safety&Security Financial Services which includes Accounting Procurement Information Technology Development which includes Technical Services Asset Management Resident Services Funding for the COCC is in the form of fees charged to projects or programs. The fees include those specified by HUD as management fees, bookkeeping fees, asset management fees, or fees for services. HUD regulates which of these fees may be charged to any given program and how the fee is to be calculated. The Authority does provide Technical Services on a fee for service basis. The Authority examined private sector rates for specialized maintenance services electrical, plumbing, etc. - and has established rates for these service consistent with the private sector. When an end user department uses these services, they are charged as if they had contracted with a private sector vendor. The Authority employs a similar methodology for Resident Services and Compliance Services. In addition to the HUD regulated management fees, the Authority also charges a Management fees and Supportive Services fees to all other entities like Edgemont Elms Housing, Inc., Preiss-Steele Place, LLC, and Goley Pointe, LLC. The amounts are typically computed as a percent of net rental income as determined in the management agreement between the Authority and these entities. Program management fees are charged to the HCV program according to HUD regulations. These fees can either be up to 20 percent of earned Administrative Fees or $12.00 per voucher leased per month. In addition, the COCC can also charge the program $7.50 per voucher leased per month as bookkeeping fees. The COCC also charges all grant awards received by the AMPS a fee of up to 10% of the award. These include Capital and Replacement Housing Factor funds. As determined by Resource Sharing Agreements, the COCC may also receive fees from the Authority s instrumentalities (DVI) and Component Units (Learning Assistance, etc.) Lastly, the COCC receives fees from Bond transactions of the Authority. 47

49 CENTRAL OFFICE COST CENTER PROGRAM SUMMARY Executive Office The Executive Office includes the Board of Commissioners, Chief Executive Officer and Staff responsible for coordinating the day-to-day activities of the Authority. This department is also responsible for communications with internal as well as external stakeholders including the United States Department of Housing and Urban Development (HUD), other federal entities, the State, City and County governments, Investors and Residents in the Public, Affordable and HCV Housing Programs. Administration As mentioned previously, the Administration department which was created in is made up of Human Resources, Compliance and Safety/Security. Human Resources is responsible for planning, implementing and evaluating employee relations. Tasks performed include: labor relations, employee recruitment, compensation and benefits management, training and development as well as maintaining awareness of and compliance with federal, state and local labor laws. The Compliance team ensures that the property and program management business areas of the Authority maintain compliance with federal, state and local regulations and requirements. Typical duties include the development of policies and procedures for property/program management, ensuring employee awareness of guidelines and regulations, developing compliance-related reporting and preparing risk assessment analysis to expand visibility. The Safety & Security team works cooperatively with residents, staff, the public and law enforcement agencies to reduce crime, preserve peace and provide safe environments within the Authority s housing developments, both owned and managed. Tasks include monitoring building surveillance, responding to alarms, patrol and organizing outreach to DHA s neighborhoods throughout the year. Financial Services The Financial Services department includes Accounting, Budgeting, Procurement and Information Technology. The Accounting team maintains a system of internal administrative and accounting controls. This includes the evaluation of property/program management as well as departmental activities that affect the financial operations of the Authority. This department coordinated and executes all financial documents, annual budget and monthly financial reports. Procurement is responsible for coordinating the solicitation of all Requests for Quotes (RFQ), Requests for Proposals (RFP), Invitations for Bid (IFB) and finalizing all contractual agreements on behalf of all departments. All departments are responsible for the procurement of materials and supplies for their respective areas in accordance with Asset Management. 48

50 CENTRAL OFFICE COST CENTER PROGRAM SUMMARY Information Technology services provides support for all computer systems, applications and phones. Tasks include providing services to departments that ensure technological systems are reliable, stable and cost efficient. Development The Development is responsible for planning and organizing all development, construction and modernization projects for the Authority. Tasks include budgeting for HUD funds under the Capital Fund and Replacement Housing Factor programs. This department also manages the affairs for the development instrumentality of the Authority, Development Ventures Inc, tasked with spearheading all development/redevelopment projects. The Authority also provides Technical Services Plumbing and Locksmith Services on a Fee-For- Services basis to all properties. This team is included in the Development department and charges comparable rates Asset Management This department oversees property management and maintenance services for managed developments. Tasks include the establishment of the Admissions and Continued Occupancy Policy (ACOP), governing HUD-Aided Public Housing Policies and Procedures for property management including lease agreements and application processes and information. Resident Services The Resident Services department offers, in partnership with other agencies, support services to provide opportunities for all residents in properties or programs managed by the Authority. This department implements several programs and services to assist residents. All resident service grants, including but not limited to Family Self Sufficiency, Continuum of Care etc., are administered by this department. In addition, the Resident Services department maintains the activities of Learning Assistance, Inc. a component unit of the Authority. In an effort to promote proper safeguarding of resources against waste and inefficiency, encourage accuracy and reliability of operational data, each COCC department manages an individual budget. However, it is important to note that the COCC departments are not a separate asset managed entity on their own. Unless otherwise required by a managed grant, all resources of the COCC are shared amongst the departments depending on need. The COCC budget is presented on a consolidated basis even though each departmental head oversees their own budget. 49

51 CENTRAL OFFICE COST CENTER FY2018 BUDGET ASSUMPTIONS & PROJECTIONS REVENUES: 1. Property/program management fees charged to the other programs. AMPs are charged based on standard rates set by HUD. For FY2018, Property Management fees are budgeted at $53.20, the current approved HUD reasonable fee. The bookkeeping fee and asset management fees remain the same at $7.50 per unit and $10.00 per unit respectively. Property Management and Bookkeeping fees are charged per occupied unit. Asset management fees are charged per ACC unit and subject to excess cash as calculated from the previous year Financial Data Schedule (FDS). 2. The HCV program can be charged a program management fee up to $12.00 per voucher leased per month and a bookkeeping fee of $7.50 per voucher leased per month or up to 20% of the Administrative Fee earned. FY2018, the Authority will charge the HCV program $10.00 per voucher leased as program management fees. 3. Preiss Steele Place, Edgemont Elms and Goley Pointe, will be charged a management fee equal to 6% of net rental income as management fees. 4. Resident Service fees are budgeted at $15.08 per occupied unit. The fee charged in has been increased using the HUD inflation factor of Compliance Services fees budgeted at $13.86 per occupied unit. The fee charged in has been increased using the HUD inflation factor of Safety and Security fees are budgeted at $9.37 per occupied unit. The fee charged in has been increased using the HUD inflation factor of In addition to management fees, the affordable housing properties are charged a Resident Services fee of $24.45 and if applicable the same Compliance fees as the public housing properties. 8. Technical Services fees are charged for service performed at the properties. The rates for 2018 are as follows: Licensed Plumber - $98.00 per hour Certified Locksmith $ The revenue for this line item is budgeted according to the expenses budgeted for each property. 9. The COCC also charges a program management fee of 10% of Capital Funds awarded. For 2018, the budgeted amount is $252, As per the Resource Sharing Agreement, DVI will pay the COCC a budgeted total of $247,561 in

52 CENTRAL OFFICE COST CENTER FY2018 BUDGET ASSUMPTIONS & PROJECTIONS 11. Proceed from Bond Issuance and current Bond fees are expected to be about $155,321 in As per the Resident Services and Asset Management Agreements, the HOPE VI properties managed by TCB will pay a total of about $7,368 to the COCC in The Resident Services department will administer two grants in 2018 Family Self Sufficiency and Governors Crime Commission. The budgeted amounts are $137,787 and $36,767 respectively. EXPENSES: 1. Administrative salaries and benefits are budgeted at the same level as in the previous year. All vacant positions to be filled are budgeted at the mid-range level for salaries. 2. Computer Maintenance Agreements for 2018 have increased by about 19%. The Authority will convert to Microsoft 365 and improve operations by obtaining Adobe licenses. 3. In previous years, Employee Benefit Contributions were budgeted for under General Expenses. Effective 2018, these expenses will be budgeted for under the specific category where salaries are budgeted. The below shows the schedule of fees for the COCC in Central Office Cost Center - FY2018 Schedule of Fees Low Income Public Housing 2,407, Capital Fund Program 252, Preiss Steele Place 70, Edgemont Elms 53, Goley Pointe 14, Housing Choice Voucher Program 322, HOPE VI Properties 7, Development Ventures, Inc 247, Bond Fees 155, Total FY ,532,

53 CENTRAL OFFICE COST CENTER FY2018 BUDGET COCC- Consolidated FY2018 Budget 2018 Annual % Annual Budget Jan - Sep Estimated REVENUES Total Tenant Revenue Total Fee Revenue 2,926,853 2,670,098 3,474,211 3,669, ,768 6% Total Other Revenue 3, ,767 36, % TOTAL REVENUE 2,930,399 2,670,525 3,474,716 3,706, ,030 7% EXPENSES Total Operating - Administrative 2,358,220 1,693,914 2,258,552 2,690, ,005 19% Total Tenant Services 450, , , ,752 19,399 3% Total Utilities 15,236 21,604 28,806 29, % Total Maintenance 274, , , ,173 1,147 0% Total Protective Services Total Insurance Premiums 52,619 43,624 58,166 65,521 7,355 13% Total Other General Expenses 4,860 9,812 12,168 - (12,168) -100% Total Interest Expense and Amortization Cost TOTAL OPERATING EXPENSES 3,156,166 2,430,739 3,240,070 3,688, ,604 14% EXCESS of OPERATING REVENUE over OPERATING EXPENSES (225,767) 239, ,646 18,072 (216,574) TOTAL EXPENSES 3,156,166 2,430,739 3,240,070 3,688, ,604 EXCESS (DEFICIENCY) of TOTAL REVENUE over(under) TOTAL (225,767) 239, ,646 18,072 (216,574) (To)/From Unrestricted Net Position 225,767 (239,786) (234,646) (18,072) 216,574 in Net Position $ - $ - $ - $ - $ - 52

54 HOUSING CHOICE VOUCHER PROGRAM SUMMARY The Authority operates a Housing Choice Voucher Program (HCV) pursuant to U.S. Department of Housing and Urban Development (HUD) requirements. The HCV Program is structured to provide a housing voucher to program participants. Participants then locate housing in the local rental market. When an acceptable unit is located, both the program participant and the landlord are required to enter into a HAP contract with the Authority. Program participants pay approximately 30% of the rent and the voucher is used to pay the balance up to a predetermined market rate established by HUD on an annual basis. In general, tenant-based vouchers are issued to the participants. However, some vouchers are projectbased and are allocated to specific properties, so a participant has to be able to qualify to live in that particular property. The Authority also administers Veterans Administration Supportive Housing vouchers (VASH) targeted at providing assistance to homeless veterans. HCV Administration provides support for a maximum of 2,791 vouchers. However, it is important to note that HUD requires housing authorities manage the program within their allotted budget, not the allotted maximum vouchers. This means that the program may have a utilization rate that falls below the allotted vouchers but a 100% budget utilization. Primary services include the acceptance and processing of applications for vouchers; inspections of units on at least an annual basis, and recertification of program participant eligibility on an annual basis. Housing Assistance Program (HAP) funds are pass-through in nature. Any surplus that occurs is retained for future needs, but is strictly limited to being used only for housing assistance payments. Due to the pass-through nature of the funds, no personnel or other expenses are allocated to HCV Program HAP. In addition to the traditional HCV program, the HCV department also administers a small number Tenant Based Rental Assistance vouchers through two grant-funded programs, Shelter Plus Care (S+C) and Housing Opportunities for Persons with HIV/AIDS (HOPWA). Both programs reimburse the costs of Housing Assistance Payments expensed on a monthly basis and include a small fee for administering the programs. The HCVP program is considered a separately asset managed program and pays the COCC program management fees. 53

55 HOUSING CHOICE VOUCHER PROGRAM SUMMARY Staffing for the HCVP program is comprised of the positions shown in the organizational chart below 54

56 HOUSING CHOICE VOUCHER FY2018 BUDGET ASSUMPTIONS & PROJECTIONS The budget for the HCV Program is divided into two parts Administration and Housing Assistance Payments (HAP). The following information provides additional detail regarding the projections of revenues and expenses for the HCV Program. REVENUES: 1. Housing Assistance Payment funds to be received have been budgeted at $19,753,628 using an average HAP amount of $612 and an average unit month leased number of 2,691 vouchers 2. Administrative Fees earned are budgeted at $1,600,872 which a 6% decrease from the amount expected to be received in of $1,7 3. Other revenues include administrative fees earned from managing the two TBRA programs, Shelter plus care and HOPWA. The expected fees for 2018 are $6,177 for Shelter Plus Care and 7% of HAP/URP paid per month for HOPWA. EXPENSES: 1. Housing Assistance Payment expenses are budgeted at the same level as expected revenues of $19,753, Program management fees due to the COCC for FY 2018 are calculated as $10 per unit month leased. Over the past few years, administrative fee earned for this program has decreased dramatically. In addition to the decrease in rates, final funding has been prorated below 100% of eligibility. HCVP has been unable to pay the maximum fee required to the COCC for program management over the past few years. The rate is $12 per unit month leased for program management and $7.50 per unit month leased for bookkeeping. The Authority may also opt to charge the program 20% of the administrative fee received. 3. The most significant change in expenses for the HCV program beginning in 2018 will be a rent charge paid to the COCC. The amount in 2018 will be $5,000 a month. In the past the HCV department has been charged Utilities and Maintenance expenses using an allocation based on the number of employees. The rent charge is based on a rate per square footage of leased office space in downtown Durham. The average rate is about $2.01/square footage. The HCV department occupies about 6,000 square feet of the central office building. 4. All other expenses are directly incurred by the HCV department/program and budgeted at a 3% increase from expected FY amounts. 55

57 HOUSING CHOICE VOUCHER FY2018 BUDGET ADMINISTRATION HCVP Admin FY2018 Budget 2018 Annual % Annual Budget Jan - Sep Estimated REVENUES Total Tenant Revenue Total Fee Revenue 1,778,751 1,341,878 1,768,892 1,665,341 (103,551) -6% Total Other Revenue 6,300 6,765 9,020 9, % TOTAL REVENUE 1,785,051 1,348,643 1,777,912 1,674,631 (103,281) -6% EXPENSES Total Operating - Administrative 1,645,248 1,144,185 1,525,581 1,633, ,651 7% Total Tenant Services Total Utilities 16,916 14,762 29,524 - (29,524) -100% Total Maintenance 27,294 34,118 45,490 4,865 (40,625) -89% Total Protective Services Total Insurance Premiums 25,593 21,061 28,081 18,439 (9,642) -34% Total Other General Expenses 70,000 34,383 45, ,107 57, % Total Interest Expense and Amortization Cost TOTAL OPERATING EXPENSES 1,785,051 1,248,509 1,674,521 1,759,642 85,121 5% EXCESS of OPERATING REVENUE over OPERATING EXPENS - 100, ,391 (85,011) (188,402) TOTAL EXPENSES 1,785,051 1,248,509 1,674,521 1,759,642 85,121 EXCESS (DEFICIENCY) of TOTAL REVENUE over(under) TOTAL - 100, ,391 (85,011) (188,402) (To)/From Unrestricted Net Position - (100,133) (103,391) 85, ,402 in Net Position

58 HOUSING CHOICE VOUCHER FY2018 BUDGET HAP HCVP HAP FY2018 Budget 2018 Annual % Annual Budget Jan - Sep Estimated REVENUES Total Tenant Revenue Total Fee Revenue 16,479,350 14,613,345 19,366,302 19,753, ,326 2% Total Other Revenue TOTAL REVENUE 16,479,350 14,613,345 19,366,302 19,753, ,326 2% EXPENSES Housing Assistance Payments - Regular 16,479,350 14,792,377 19,723,169 19,753,628 30,459 0% TOTAL EXPENSES 16,479,350 14,792,377 19,723,169 19,753,628 30,459 EXCESS (DEFICIENCY) of TOTAL REVENUE over(under) TOTAL 16,479,350 14,613,345 19,366,302 19,753, ,326 (To)/From Unrestricted Net Position (16,479,350) (14,613,345) (19,366,302) (19,753,628) (387,326) in Net Position

59 DEVELOPMENT VENTURES, INC PROGRAM SUMMARY Development Ventures Incorporated (DVI) is an instrumentality of the Durham Housing Authority. As an IRS 501(c)(3) entity, DVI exists to develop affordable housing options to low-income residents of Durham on behalf of DHA. DVI is primarily involved in the development and ownership of new housing communities. As a result of several ongoing projects, DVI will continue to evolve in FY2018. The entity owns two properties Lincoln and Fayette. To date, DVI has completed the development/redevelopment of the following properties: Preiss Steele Place, Edgemont Elms, Goley Pointe and 1010 Worth Street. By the end of, it is expected that 3 properties will close development deals to convert from Public Housing to Rental Assistance Demonstration Project Based Rental Assistance. These are the 16 Public Housing units at Edgemont Elms, Morreene Road and Damar Court. It is important to note that DVI has no employees and is therefore operating under a Resource Sharing Agreement with DHA. The terms of the agreement include a yearly fee to the COCC that is equivalent to the following: 18% of the Chief Executive Officers salary and benefits, 80% of the Director of Developments salary and benefits, 10% of the Capital Fund Program Administrators salary and benefits and 100% of the Real Estate Strategies Specialists salary and benefits. DVI is also responsible for expenses charged to Lincoln and Fayette Place. The main source of revenue for DVI is developer fees earned at closing or deferred based on the development transactions. All developer fees will be booked as revenues or receivables according to the schedules attached to the development transactions. 58

60 DEVELOPMENT VENTURES, INC FY 2018 BUDGET DVI - Administration FY2018 Budget 2018 Annual % Annual Budget Jan - Sep Estimated REVENUES Total Tenant Revenue Total Fee Revenue Total Other Revenue 729,299 31, , , ,013 78% TOTAL REVENUE 729,299 31, , , ,013 78% EXPENSES Total Operating - Administrative 504, , , , % Total Tenant Services Total Utilities 10,050 3,078 4,103 4,226-3% Total Maintenance 34,630 4,500 6,000 6, % Total Protective Services Total Insurance Premiums 9,355 7,191 9,589 9, % Total Other General Expenses 61, Total Interest Expense and Amortization Cost - 20,394 27,192 - (27,192) -100% TOTAL OPERATING EXPENSES 620, , , ,181 (26,636) EXCESS of OPERATING REVENUE over OPERATING EXPENSES 109,166 (206,115) (149,469) 6, ,039 TOTAL EXPENSES 620, , , ,181 (26,636) EXCESS (DEFICIENCY) of TOTAL REVENUE over(under) TOTAL 109,166 (206,115) (149,469) 6, ,039 (To)/From Unrestricted Net Position (109,166) 206, ,469 (6,571) (156,039) in Net Position

61 LEARNING ASSISTANCE, INC. PROGRAM SUMMARY AND BUDGET Learning Assistance, Inc., is a component unit of the Authority, incorporated as a North Carolina nonprofit in The mission of the organization is to award scholarships to public housing youth and young adult residents. The primary source of income for Learning Assistance, Inc., is the proceeds from an agency endowment established in 1994 with the Greater Triangle Community Foundation. Other income recognized is usually the result of a donations made to the organization. For FY2018 $17,000 has been budgeted for scholarships to be awarded. The program is managed by the Resident Services department located in the Central Office Cost Center. LAI - Learning Assistance, Inc. FY2018 Budget 2018 Annual % Annual Budget Jan - Jun Estimated REVENUES Total Other Revenue 18,700 9,304 12,406 17,980 5,574 45% TOTAL REVENUE 18,700 9,304 12,406 17,980 5,574 45% EXPENSES Total Operating - Administrative 1, (167) -100% Total Other General Expenses 17,020 1,757 2,343 12,000 9, % TOTAL OPERATING EXPENSES 18,720 1,882 2,509 12,000 9, % EXCESS of OPERATING REVENUE over OPERATING EXPENSES (20) 7,422 9,896 5,980 (3,917) TOTAL EXPENSES 18,720 1,882 2,509 12,000 9,491 EXCESS (DEFICIENCY) of TOTAL REVENUE over(under) TOTAL (20) 7,422 9,896 5,980 (3,917) (To)/From Unrestricted Net Position 20 (7,422) (9,896) (5,980) 3,917 in Net Position

62 OTHER PROGRAMS/GRANTS OTHER AMPS: Birchwood this AMP is comprised of four single-family residential homes that were part of the Authority s Turnkey III program. The Authority is currently in the process of obtaining permission to dispose of these units. To the extent the properties need to be managed, the Senior Property Manager is responsible. Currently all of the units are vacant. The primary expense of this AMP is maintenance costs for landscaping. The budgeted amount for this line item if $6,000. HOPE VI: In an effort to revitalize a distressed area within North East Central Durham, the Authority through HUD s HOPE VI neighborhood revitalization program provided loans and grants towards the development of the following rental units: 1. Main Street Townhomes AMP #29 (2004) This property consists of 43 townhouse-style units in 4 buildings. There are 21 public housing units included in the 43 low income housing tax credit units. 2. Calvert Place AMP #16 (2005) This property is made up of 75 residential units all of which are allocated low-income housing tax credits. 43 units are set aside as public housing 3. Morning Glory AMP #30 (2005) Morning Glory Senior Village is a development that consists of 25 cottage and apartment style public housing units designated for seniors. This property is also allocated low income housing tax credits. 4. Holman Homes AMP #28 (2008) This property consists of 83 rental units, 74 of which are low-income housing tax credit units and 46 of the 74 are public housing units. The remaining 9 units are market rate. The operating subsidy budgets for these properties are shown in the below: HOPE VI FY2018 Budget 2018 Annual % Annual Budget Jan - Sep Estimated HUD PHA OPERATING GRANTS Main Street Townhomes 79,453 58,796 78,308 74,299 (4,009) -5% Calvert Place 164, , , ,092 (8,480) -5% Morning Glory 45,730 39,846 53,070 50,353 (2,717) -5% Holman Homes 79, , , ,247 (9,514) -5% Total Operating Subsidy 368, , , ,991 (24,720) -5% 61

63 OTHER PROGRAMS/GRANTS FAMILY SELF SUFFICIENCY: The Family Self-Sufficiency (FSS) program enables HUD-assisted families to increase their earned income and reduce their dependency on rental subsidies and welfare assistance. The Authority has managed an FSS program since Each year, HUD makes funding available through a competitive process to PHA s that administer an FSS program. The awarded funds are to pay for personnel costs for FSS program coordinator(s). For 2018, the expected award is $137,787, a decrease of about 33% from the award of $206,680 GOVERNORS CRIME COMMISSION: The Authority has been awarded a grant through the Juvenile Justice Committee of the Governor s Crime Commission effective October 1, September 30, The awarded funds are to pay for budgeted costs associated with salaries and benefits for personnel responsible for administering the grant. The award amount for 2018 is $36,

64 RENTAL ASSISTANCE DEMONSTRATION PROGRAM SUMMARY The Rental Assistance Demonstration (RAD) program was created by HUD to give public housing authorities a tool to improve as well as preserve current public housing stock. With the tool, Agencies can leverage public and private debt and equity in order to reinvest in their current public housing stock. With RAD, units move to a Section 8 platform with a long-term contract that must be renewed by law. This makes units permanently affordable to low-income households. The Authority s strategic long-term goal is to convert all existing public housing stock to the RAD model. The RAD conversion plan is divided into two main phases as shown in the tables below. Starting with a straight conversion of the 16 public housing units at Edgemont Elms, 91 public units at the HOPE VI properties and all units at Damar Court and Morreene Road. All 7 properties will be converting to the RAD PBRA model by the end of. 63

65 RENTAL ASSISTANCE DEMONSTRATION FY 2018 BUDGET MORREENE ROAD RAD - Morreene Road FY2018 Budget Budget Jan - Sep Estimated 2018 Annual % Annual REVENUES Total Tenant Revenue 425, , ,365 1,113, , % Other Fees Total Fee Revenue 595, , ,854 - (602,854) -100% Total Other Revenue 4,200 33,238 44,317 - (44,317) -100% TOTAL REVENUE 1,025, ,434 1,061,536 1,113,536 52,000 5% EXPENSES Total Operating - Administrative 309, , , ,598 (144,499) -39% Total Tenant Services 29,405 20,160 26, , , % Total Utilities 237, , , ,128 59,380 30% Total Maintenance 192, , , ,503 89,370 43% Total Protective Services 4, ,609 10,609 Total Insurance Premiums 31,085 22,698 30,265 44,261 13,996 46% Total Other General Expenses 220,295-20, ,555 79, % Total Interest Expense and Amortization Cost TOTAL OPERATING EXPENSES 1,024, , ,710 1,082, ,260 EXCESS of OPERATING REVENUE over OPERATING EXPENSES , ,826 30,566 (180,260) TOTAL EXPENSES 1,024, , ,710 1,082, ,260 EXCESS (DEFICIENCY) of TOTAL REVENUE over(under) TOTAL , ,826 30,566 (180,260) (To)/From Unrestricted Net Position (210) (194,441) (210,826) (30,566) 180,260 in Net Position

66 RENTAL ASSISTANCE DEMONSTRATION FY 2018 BUDGET DAMAR COURT RAD - Damar Court FY2018 Budget Budget Jan - Sep Estimated 2018 Annual % Annual REVENUES Total Tenant Revenue 183, , , , , % Total Fee Revenue 489, , ,991 - (487,991) -100% Total Other Revenue (27) -100% TOTAL REVENUE 673, , , ,572 (128,817) -19% EXPENSES Total Operating - Administrative 194, , , ,854 (48,313) -24% Total Tenant Services 14,645 9,180 18,360 - (18,360) -100% Total Utilities 202, , , ,100 3,800 2% Total Maintenance 203, , , ,886 (117,109) -45% Total Protective Services 10, ,500 4, % Total Insurance Premiums 23,204 16,126 21,502 18,963 (2,539) -12% Total Other General Expenses 25,283 1,395 2,419 80,160 77, % Total Interest Expense and Amortization Cost TOTAL OPERATING EXPENSES 673, , , ,463 (100,540) EXCESS of OPERATING REVENUE over OPERATING EXPENSES ,107 5,386 (22,891) (28,277) TOTAL EXPENSES 673, , , ,463 (100,540) EXCESS (DEFICIENCY) of TOTAL REVENUE over(under) TOTAL ,107 5,386 (22,891) (28,277) (To)/From Unrestricted Net Position (210) (14,107) (5,386) 22,891 28,277 in Net Position

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68 WE TAKE RESPONSIBILITY WE ARE ETHICAL WE SATISFY CUSTOMERS WE ARE PRODUCTIVE WE ARE ENTHUSIASTIC WE ARE CREATIVE WE PRACTICE TEAMWORK 67