Fiscal Year Budget. April 1, 2017 through March 31, 2018

Transcription

1 Fiscal Year 2018 April 1, 2017 thrugh March 31, 2018 Original Submissin: March 21, 2017

2 Table f Cntents Management Discussin 1 Operating Statement & Summary f Funding Flw 8 Line Item Analysis & Assumptins 10 Operating and Administrative Segment Review 15 FY 18 Operating Statement by Operating Grup FY 18 Funding Flw Analysis By Operating Grup FY 18 Staffing Summary by Operating Grup Cmmentary Rent Assistance Cmmentary Public Husing Prtfli Cmmentary Affrdable Husing Prtfli Cmmentary Asset Management Cmmentary Prperty Management Cmmentary Safety Cmmentary Integrated Facilities Services Cmmentary Develpment & Cmmunity Revitalizatin Cmmentary Resident Services Cmmentary Administratin Cmmentary Real Estate Finance Attachments 47 Summary f Mving t Wrk Initiative Funds FY 18 Estimated Husehlds Served by Categry FY 18 Estimated Rent Assistance Husehlds Served by Categry Subsidy Prratin Trends Cumulative Change in HCV Funding vs. Cumulative Change in Metr Area Apartment Rent FTE Change Cmparisn Schedule Acrnym Key FY 18 Operating Statement by Operating Grup FY 18 Funding Flw Analysis By Operating Grup... 58

3 Management Discussin This dcument presents the planned activities and financial budget fr Hme Frward fr the fiscal year beginning April 1, 2017 and ending March 31, 2018 (FY 18). General Overview The Federal Husing Act f 1937 authrized the creatin f public husing authrities. Utilizing the 1937 Federal Husing Act, the Prtland City Cuncil established Hme Frward (at that time, the Husing Authrity f Prtland, Oregn) as a municipal crpratin under the Oregn Revised Statutes in December A nine member Bard f Cmmissiners gvern Hme Frward. The City f Prtland recmmends five appintments and the City f Gresham and Multnmah Cunty bth recmmend tw appintments each. Hme Frward is nt financially dependent n the City f Prtland and is nt cnsidered a cmpnent unit f the City. The Executive Directr is appinted by the Bard and is respnsible fr the daily functining f Hme Frward. Hme Frward is ne f nly 39 public husing authrities in the cuntry (ut f mre than 3,000) that have been selected by the U.S. Department f Husing and Urban Develpment (HUD) and apprved by Cngress t participate in the Mving t Wrk (MTW) prgram. Mving t Wrk is a lng-term federal pilt prgram designed t learn whether public husing authrities can serve their cmmunities better with mre lcal discretin ver funding allcatin, plicies, and prcedures. Hme Frward has been perating as a Mving t Wrk agency since April 1, The MTW designatin allws fr exemptins frm certain federal requirements allwing the merger f Husing Chice Vucher & administrative funds and public husing perating & capital funds int a single fund. This enables Hme Frward t create and implement innvative prgrams acrss its missin-based business lines. Hme Frward is cmprised f several missin-based business lines, including new business line breakuts fr FY 18. They are: Rent Assistance - Hme Frward prvides rent assistance t ver 10,000 husehlds n an annual basis. This includes traditinal and nn-traditinal rent assistance prgrams. Traditinal prgrams include Husing Chice Vuchers, Vuchers fr Hmeless Vets (VASH), Family Unificatin Prgram vuchers (FUP), SRO/MODs and Shelter Plus Care. Nn-traditinal rent assistance prgrams include shrt and medium-term rent assistance, and rent assistance cmbined with partner services. The Husing Chice Vucher prgram (Sectin 8) is the largest rent assistance prgram administered by Hme Frward, with funding determined by vuchers authrized, vucher utilizatin, and prratin rates. Public Husing Prtfli Hme Frward s Public Husing stck prvides an imprtant resurce t the cmmunity by prviding 1,306 units f husing thrughut Multnmah Cunty. These prperties were acquired thrugh bnds and ntes guaranteed by HUD and thrugh grants, subject t the terms f an Annual Cntributins Cntract with HUD. Fr these prperties, perating revenue is generated frm tw main surces: 1) HUD subsidies based n a HUD apprved rate multiplied by the number f HUD apprved units multiplied by a prratin rate, and 2) Tenant revenue rents cllected frm residents which are driven by ccupancy levels and by tenant incme levels. Additinally, funds frm the Capital Grant Prgram prvided by HUD are used t maintain and imprve this Public Husing Prtfli. Substantially all additins t land, structures and equipment f Public Husing are accmplished thrugh these Capital Grant funds. Affrdable Husing Prtfli In additin t public husing prperties, Hme Frward als maintains a prtfli f affrdable husing prperties. Fr these prperties, revenue is mainly generated by tenant rents and impacted by ccupancy levels and cntractually allwed affrdable rental rates based n unit size. These prperties fall int tw wnership categries: 1) Hme Frward wned prperties prperties where Hme Hme Frward 1

4 Frward wns a majrity wnership stake, and 2) Tax credit partnership prperties prperties that utilize the Lw Incme Husing Tax Credit (LIHTC) fr which Hme Frward has a minrity wnership stake. Fr this budget, the financial activity f tax credit partnership activity is excluded except fr the unrestricted cash generated and remitted t Hme Frward. Asset Management services The Asset Management grup is respnsible fr verseeing the perfrmance f the entire Hme Frward real estate prtfli. This is a grwth in respnsibility, as prir t this year, the Asset Management grup nly versaw the perfrmance f the Affrdable Husing prtfli. Nw, the Asset Management team prvides asset management services fr the full prtfli, including 109 prperties, and ver 6,400 units f husing thrughut Multnmah Cunty. Fr prperties where fees are allwed, revenue is generated frm Asset Management fees. Additinal funds are generated frm unrestricted cash flw frm the prperties. Prperty Management services Over the past decade, Hme Frward s Prperty Management grup has expanded frm managing nly public husing prperties t verseeing the cmpliance and maintenance at 33 traditinal public husing prperties, ne affrdable husing prperty, and seven tax credit prperties. These 41 prperties prvide husing fr 2,381 husehlds. The grup is respnsible fr daily peratins, including rent cllectin, general maintenance, lease enfrcement, and prgram cmpliance. Integrated Facilities Services Integrated Facilities Services is the perating grup fr Hme Frward s specialized maintenance services. Prir t FY 18, this grup was included in Prperty Management as Cre services. Services include: Electrical wrk Garbage and recycling pick up Hauling Painting Pest cntrl Plumbing Hme Frward managed prperties utilize Integrated Facilities Services based n need and are billed fr services prvided. Resident Services includes scial and ecnmic develpment prgrams fr families, alng with administratin f cmmunity husing and service partnerships thrughut Multnmah Cunty. Prgrams include cngregate supprtive husing and family self-sufficiency prgrams. These prgrams are typically funded by cst reimbursement grants, prperty fees, and unrestricted funds. Safety This is a new service line created in FY 18. This grup is respnsible fr develping and implementing a cmprehensive health and safety prgram fr Hme Frward. The prgram will fcus n identifying and mitigating risks t prperties and peratins and t assure rganizatinal cmpliance with lcal, state and federal envirnmental, health and safety regulatins. The Safety grup will als versee safety and cmpliance training fr all Hme Frward staff. In additin t these missin based business lines, Hme Frward has administrative and real estate finance peratins. Hme Frward 2

5 Principles The budget dcument prvides greater cntext arund where we are investing ur resurces t achieve the gals f ensuring the members f ur cmmunity are hused. This dcument presents cmparative budget infrmatin in tw frmats: first, in a Generally Accepted Accunting Principle (GAAP) frmat, and secnd, in a Funding Flw (simplified perating cash basis) frmat. It is imprtant fr the reader t understand this distinctin, as certain revenue and expense items may be recrded in ne fiscal year, while the cash invlved impacts a different fiscal year (such as develpment fee revenue), r has n cash impact (such as depreciatin expense). Additinally, this dcument nly presents the results f Hme Frward and des nt include the budget f any cmpnent units, except fr its single member LLC prperties fr which Hme Frward has 100% cntrl in the peratins f thse prperties. This includes Ainswrth, Madrna, and St. Francis prperties. The budget was created with several guiding principles: All funds will be accunted fr, meaning that current year activities will be funded with current year revenue, business line reserves, allwable transfers frm ther prgrams, r agency level reserves. Any remaining funds will be assigned t reserves fr specific purpses r t general reserves t address funding vlatility. In a typical year, all prgrams cmbined (excluding Develpment) shuld have, at a minimum, break even funding flw. Hwever, given the funding vlatility with the Husing Chice Vucher prgram, in rder t maintain the current payment standards and t ensure families stay hused, we will utilize a cmbinatin f Hme Frward and HUD-Held Reserves. Because the life cycle f develpment prjects spans several years, we mnitr develpment perfrmance t match that life cycle rather than using a single year snapsht. Revenues fr the Husing Chice Vucher prgram and administratin, Public Husing perating subsidy, and Public Husing Capital Grant are budgeted based n estimated calculatins f rates and prratins using best available data and histrical trends. Funds using MTW flexibility t supprt lcally designed prgramming are aligned with strategic initiatives. Hme Frward strives t meet the MTW requirement f serving substantially the same number f husehlds as it wuld if it did nt have MTW status. Funds frm the sale f real estate will be used nly fr the acquisitin, develpment, and/r preservatin f real estate assets. Summary See sectin Line Item Analysis & Assumptins fr a mre detailed analysis f line item changes, and sectin Operating and Administrative Segment Review fr a mre detailed analysis f results by perating grup. Key Activities and Financial Highlights fr FY 18 (Please nte: numbers may differ slightly frm surce dcuments due t runding) Key activities planned fr FY 18 include: The Rent Assistance department is anticipating a significant increase in husing assistance payments during FY 18. In respnse t the husing crisis, Hme Frward increased its payment standard effective April This increase has led t imprvements in the lease up rate and the stabilizatin f husing fr families thrughut the Hme Frward 3

6 cunty. Hwever, due t the uncertainty f cntinued federal funds fr this critical prgram, Hme Frward will need t utilize reserves just t cntinue husing current families and we will nt be able t pull any names frm the new waitlist. This means that the 3,000 husehlds waiting fr an pprtunity t receive additinal husing supprt will need t wait at least ne mre year befre a vucher might be issued, absent an increase in funding. Prperties wned and/r managed by Hme Frward include 6,444 units f husing with an expected ccupancy rate f 98%. Sectin 18 and Rental Assistance Demnstratin (RAD) cnversin T preserve the lng-term use f its Public Husing prtfli, Hme Frward intends t cnvert all its remaining public husing prperties frm a public husing perating & capital subsidy funding stream t a vucher-based funding stream. T accmplish this, Hme Frward submitted 9 Sectin 18 applicatins and 43 RAD applicatins. With bth prgrams, Hme Frward wuld be allwed t cnvert current public husing units t a prject based vucher subsidy stream and wuld be able t utilize debt and/r ther mixed finance pprtunities t assist with necessary capital imprvements. Under the RAD prgram, nce prperty cnversins are cmpleted, the units cntinue t be funded using public husing perating subsidy and capital funds fr the remaining mnths f the year f cnversin and then funded with Sectin 8 funds beginning January f the fllwing year. We expect t cnvert six prperties under the first phase f the RAD prgram during FY 18. Financial highlights f the FY 2018 budget include: Annual perating revenues will increase frm $134.0 millin t $144.3 millin, an increase f $10.3 millin. This is mainly due t: A $2.3 millin increase in develpment fee incme related t cnstructin prjects at St. Francis Park, Square Manr and Nrtheast Grand. Dwelling rental is expected t increase $2.2 millin mainly due t the additin f Lvejy Statin t the Affrdable prtfli. Previusly, this was a tax credit partnership prperty with Hme Frward wning nly a.01% wnership stake. During FY 17, Hme Frward tk 100% wnership f the prperty. Other revenue is $2.1 millin higher in FY 18 due t an increase in prtability revenue. Funding fr Husing Chice Vuchers is prjected t increase by $1.2 millin due higher vucher funding frm HUD that was the result f a rental cst study cnducted during December 2015 and apprved in April HUD Grants increase by $1.6 millin due t an increase in funds fr the Shelter Plus Care prgram. Public Husing Operating Subsidy revenue decreases $1.1 millin primarily due t the expiratin f Asset Repsitining Fee revenue assciated with the 85 Stries prjects. Annual perating expenses will increase frm $136.9 millin t $151.0 millin, an increase f $14.1 millin. This is mainly due t: The Rent Assistance department is anticipated t incur $13.3 millin in husing assistance payments. Other administrative expenses will increase $710 thusand primarily due t a $338 thusand increase in utside prperty management fees assciated with the additin f prperties such as Lvejy Statin, and a $196 thusand increase in technlgy and cmmunicatin csts. Hme Frward 4

7 Overall persnnel expenses increase by $474 thusand. This includes an increase in wages and benefits, ffset by a reductin in ttal headcunt f five full-time equivalent psitins. Other Tenant Services decreases $374 thusand primarily due t the reduced utilizatin f a vucher success fund. Of the $151.0 millin f perating expenses, $93.9 millin represents rent assistance payments made directly t landlrds n behalf f Hme Frward participants. Backing ut this activity, Hme Frward s perating expenses wuld be $57.1 millin. Based n the impact f items abve, perating incme will decrease by $3.7 millin frm an perating incme f $2.9 millin in FY 17 t an perating lss f $6.6 millin in FY 18. Net ther incme (expenses) will decrease by $3.3 millin t ($2.4 millin) in FY 18 primarily due t the gain assciated with the sale f the Plaza Twnhuse that tk place in FY 17. Net capital cntributins decrease frm $4.9 millin in FY 17 t $3.5 millin, a decrease f $1.4 millin due t a reductin in capital activity, mainly assciated with FY 17 funding fr the prperties invlved with the first phase f 85 Stries. The cmbined impact yields a, $8.5 millin decrease in changes t net assets, ging frm $2.9 millin in FY 17 t ($5.6 millin) in FY 18. Impact n Funding Flw Because several perating grups are funded with a cmbinatin f traditinal incme type accunts and cash flw transactins, Hme Frward presents its budget in nt nly a GAAP presentatin but als in a funding flw frmat. The funding flw frmat starts with a missin-based business line s perating incme/(lss) psitin and adjusts fr nn-cash transactins, reserve transfer in and ut, and ther capital and financing activity. As nted in the budget principles sectin, the expectatin is that all agency cash flw in and ut is accunted fr. A funding flw summary presented by perating grup is presented belw: Operating Incme/(Lss) After Overhead Department Capital and Financing Uses Nn-Reserve Funding Flw Adjustments Unrestricted Cash frm Current Operatins Additins t Reserves Other Reserve Transfers In/(Out) t Fund Current activities Net Funding Flw Prgram Grup Rent Assistance $ (6,550,556) $ (15,750) $ 1,362 $ - $ - $ 6,564,944 $ - Public Husing Prperties (2,132,802) - 2,639, (506,385) - Affrdable Husing Prperties 6,027,231 (300,977) (5,862,349) 4,048,625 (925,000) (2,987,530) - Asset Management (1,843,188) (15,750) ,858,938 - Prperty Management (131,397) (15,750) 6, ,646 - Safety (121,908) ,908 - Integrated Facilities Services (414,801) (1,750) 5, ,462 - Resident Services (1,439,790) (5,250) (195,332) 401,701-1,238,671 - Other 273,578 (385,592) 79, ,300 - (847,480) - (6,333,633) (740,819) (3,326,348) 5,330,626 (925,000) 5,995,174 - Develpment (313,640) (15,750) (2,732,320) 8,602,643 (5,540,933) - - Ttal Agency $ (6,647,273) $ (756,569) $ (6,058,668) $ 13,933,269 $ (6,465,933) $ 5,995,174 $ - Hme Frward 5

8 Department Capital and Financing Uses represents additinal uses f funds t cver equipment purchases r debt repayments that are nt already accunted fr in the ther funding flw categries. Nn-Reserve Funding Flw Adjustments include add backs fr depreciatin, ffsets fr allcated capital acquisitins and certain debt payments, prperty level reserves, and increases/decreases related t the timing f affrdable husing cash flws. Unrestricted Cash frm Current Operatins accunts fr the cash impact due t the difference in timing in revenue earned and revenue paid fr given missin based business lines. Additins t Reserves reflect the transfer f perating incme int lnger term reserve accunts. Please nte, the bracketed number in this clumn des nt necessarily represent an utflw f agency cash but rather an increase t agency reserves. Other Reserve Transfers In/Out t Fund Current Activities reflect the inflw r (utflw) f reserve acrss funds t cver current year activities. Net Reserves changes include: $4.1 millin will be drawn frm Mving t Wrk reserves t fund lcally develped initiatives designed t imprve access t husing and build family self-sufficiency skills. Using single fund flexibility, an additinal $2.5 millin will be drawn frm Mving t Wrk reserves t fund current husing assistance payments and administratin. As part f a ten-year plan t ensure adequate reserve levels fr Hme Frward, $125 thusand will be directed t an agency-level perating reserve and $300 thusand will be directed t an agency-level capital reserve. $500 thusand f Affrdable Prtfli funds will be transferred int an agency prperty insurance fund t cver future prperty lsses. $5.5 millin f cllected develpment fee revenue will be transferred t reserves and used t cver department peratins and fund prject csts that span multiple fiscal years. Staffing Update Hme Frward staff prvide services that are funded with bth agency resurces (Hme Frward legal entity) and resurces frm ther legal entities, such as varius tax credit partnerships. The breakut by funding resurce and the change in budgeted full-time equivalents (FTEs) is: Full-Time Equivalents (FTEs) FY17 FY18 Inc.(Dec.) Agency Funded (3) Other Legal Entity Funded (2) Ttal Agency Managed Psitins (5) In ttal, full-time equivalent emplyees have been reduced by 5.0 FTEs, primarily due t wrklad realignment by the prperty management grup. Hme Frward 6

9 Risks and Opprtunities As is the case every year, the level f cngressinal apprpriatins determines federal funding. While this funding has been vlatile ver the last five years, there is extreme uncertainty as t what level f investment the federal gvernment will cntinue t prvide. Given that there is a new executive administratin, a change in cngressinal cntrl, and the federal gvernment perating under a cntinuing reslutin scheduled t expire April 28, 2017, we have had t develp a budget with estimates f mst f its majr federal prgram. The apprach used was t base funding activity n flat funding and histrical trends, t use prgram reserves as needed, and t prepare t implement budget revisins as sn as mre accurate infrmatin is available. Als, with the anticipatin f a reductin f crprate taxes, interest in the federal Lw Incme Husing Tax Credit (LIHTC) has declined, causing a reductin in pricing fr tax credit prperties. This reductin may impact Hme Frward by requiring mre internal funds r higher levels f debt t develp future prperties. It may even cause planned real estate deals t be delayed fr an extended perid. Fr develpment prjects, there is always the risk f delays in cnstructin but we are cnfident in the histrical success f the Develpment team t mnitr and manage prjects t mitigate this risk. Additinally, the Develpment team mnitrs new funding pprtunities and strategies fr financing affrdable husing. Nt nly is there vlatility at the federal level but the State f Oregn is facing a $1.7 billin budget deficit. Absent an increase in state-level tax revenues, significant budget cuts will need t be made t balance the state budget. In additin t funding vlatility, in any given year there is the ptential fr weather-related incident/natural disaster that impacts mst agency prperties. Cnclusin Even with the abve backdrp we have witnessed an unprecedented level f interest, invlvement, and dedicatin by the lcal cmmunity t address the current husing crisis. Hme Frward will cntinue t fcus n prgram imprvements, n systems alignment, and will wrk with reginal partners t identify ways t preserve and increase affrdable husing. We appreciate yur interest in Hme Frward s planned activities and financial expectatins fr the upcming year, and fr yur nging supprt fr the peple f ur cmmunity. Hme Frward 7

10 Operating Statement & Summary f Funding Flw Operating Statement Increase/ Operating Statement FY17 FY18 (Decrease) Dwelling Rental $ 16,193,145 $ 18,416,689 $ 2,223,544 Nn-dwelling Rental 1,959,166 2,370, ,563 HUD Subsidies -Husing Assistance 78,240,839 79,488,892 1,248,053 HUD Subsidies -Admin Fee 6,575,611 6,587,135 11,524 HUD Subsidies -Public Husing 10,831,825 11,117, ,784 HUD Grants 6,930,774 8,503,858 1,573,084 Develpment Fee Revenue, Net 582,461 2,854,465 2,272,004 State, Lcal & Other Grants 6,769,460 6,920, ,315 Other Revenue 5,945,584 8,088,641 2,143,057 Ttal IA Revenue - - Ttal Operating Revenues $ 134,028,865 $ 144,348,792 $ 10,319,928 PH Subsidy Transfer 3,266,876 3,239,639 (27,237) Husing Assistance Payments 80,598,958 93,862,296 13,263,338 Administrative Persnnel Expense 6,571,554 6,805, ,605 Other Admin Expenses 7,246,472 7,957, ,877 Fees/verhead charged 75,000 7,200 (67,800) Tenant Svcs Persnnel Expense 2,335,806 2,157,415 (178,391) Other Tenant Svcs Expenses 2,904,899 2,531,219 (373,680) Prgram Expense 9,289,796 10,015, ,627 Maintenance Persnnel Expense 3,677,438 3,370,662 (306,777) Other Maintenance Expenses 6,444,743 6,536,380 91,638 Utilities 4,435,466 4,666, ,845 Ttal IA Expense (195,973) (204,513) (8,540) Depreciatin 8,858,989 8,391,815 (467,175) General 1,416,261 1,659, ,451 Impairment Charge Ttal Operating Expenses $ 136,926,285 $ 150,996,067 $ 14,069,781 Operating Incme (Lss) $ (2,897,420) $ (6,647,275) $ (3,749,854) Ttal Overhead Allcatins Operating Incme (Lss) after Overhead $ (2,897,420) $ (6,647,274) $ (3,749,854) Investment Incme 224, , ,742 Interest Expense (2,645,895) (2,828,484) (182,589) Investment in Partnership Valuatin Charge Gain (Lss) n Sale f Assets 3,307,721 (74,159) (3,381,880) Chg in Derivative Cntract Value Net Other Incme (Expense) $ 886,713 $ (2,414,013) $ (3,300,726) HUD Nnperating Cntributins 4,942,817 3,459,892 (1,482,925) Reserve Funded Capital Cntributins Net Capital Cntributins $ 4,942,817 $ 3,459,892 $ (1,482,925) Change in Net Psitin $ 2,932,110 $ (5,601,395) $ (8,533,505) Hme Frward 8

11 Funding Flw Analysis Increase/ Funding Flw Analysis FY17 FY18 (Decrease) Funding Flw Analysis $ (2,897,420) $ (6,647,274) $ (3,749,854) Funding Flw Adjustments 2,489,919 7,325,921 4,836,002 Funding Surce r (Shrtfall) $ (407,501) $ 678,647 $ 1,086,149 Funding Required r (Cntributed) fr Current Agency Activities $ 407,501 $ (678,647) $ (1,086,149) Final Funding Surce r (Shrtfall) $ - $ - $ - Hme Frward 9

12 Line Item Analysis & Assumptins Revenue Dwelling Rental fr FY 18 is $18.4 millin, $2.2 millin greater than FY 17. Affrdable Husing Prtfli Dwelling Rental increases $2.6 millin primarily due t the impact f prperty transitins Lvejy Statin alne adds $1.8 millin f dwelling rental revenue. Public Husing Prtfli Dwelling Rental increases $127 thusand primarily due t the cntinuing impact f rent refrm and the implementatin f minimum rents. Nn-dwelling Rental fr FY 18 is $2.4 millin, $412 thusand greater than FY 17. Nn-dwelling rental includes cmmercial rents, payments received frm special needs master leased prperties, land lease revenue, cell twer revenues, and parking revenue. Land Lease Revenue increases $168 thusand primarily due t the West and the Wds Limited Partnerships. Parking Revenue increases $105 thusand frm increased revenue in the Affrdable Prtfli primarily due t prperty transitins. Cmmercial rental incme increases $179 thusand frm increased revenue in the Affrdable Prtfli primarily due t prperty transitins. HUD Subsidies Husing Assistance fr FY 18 is $79 millin, $1.2 millin greater than FY 17. HUD s Husing Chice Vucher prratin is budgeted t remain the same as FY 17, at 99.8%. VASH vucher funding increases $729 thusand due t increased utilizatin. Mving t Wrk vucher funding increased nly $517 thusand. HUD Subsidies Administrative Fees fr FY 18 are $6.6 millin, $12 thusand greater than FY 17. Administrative Fee funding increases $12 thusand due t increases VASH and FUP vucher utilizatin, as well as increased prt-ins. Administrative fees fr HUD Husing Assistance are budgeted based n funding apprpriatins and assume flat rate fr CY HUD Subsidies Public Husing fr FY 18 is $11 millin, $286 thusand greater than FY 17. assumes that Operating Subsidy s prratin will be 85.5% in FY 18. HUD Grants fr FY 18 are $8.5 millin, $1.6 millin greater than FY 17. Shelter Plus Care HUD Grants increase $1.8 millin due t award increase. Develpment Fee Revenue fr FY 18 is $2.9 millin, $2.3 millin greater than FY 17. FY 18 Develper Fee is earned fr the fllwing Prjects: Hme Frward 10

13 Prject (in thusands) FY 18 Develper Fee St. Francis Park $500 Square Manr 900 NE Grand Avenue 1,300 State, Lcal & Other Grants fr FY 18 are $6.9 millin, $151 thusand greater than FY 17. Grant (in thusands) FY 17 FY 18 Inc.(Dec.) Shrt-Term Rent Assistance City f Prtland $1,916 $1,588 $(328) Multnmah Cunty 1,180 1, Hmeless Family System f Care 1,188 2,422 1,234 Family Futures (908) Emergency Fd & Shelter (13) City f Gresham United Way (5) PILOT Revenue (58) Shrt-Term Rent Assistance Ttal $5,727 $6,081 $354 Husing Wrks Grant 33 0 (33) Medicaid Multnmah Cunty Yuth Prgrams (206) City f Prtland Bud Clark City f Prtland Landlrd Guarantee 71 6 (65) Other (17) Ttal $6,769 $6,921 $151 Hme Frward 11

14 Other Revenue fr FY 18 is $9.2 millin, $2.1 millin greater than FY 17. Other Revenue cnsists f: Revenue (in thusands) FY 17 FY 18 Inc.(Dec.) Prtability Revenue $2,271 $4,365 $2,094 Prperty Related Incme Management & General Partner Fees (50) Prperty Related Incme Operatins Prperty Related Incme Resident Services West & Wds Cntributins Integrated Facilities Services Fees frm Tax Credits (72) Fraud & Bad Debt Recvery (1) Cnduit Financing Revenue (49) Other Ttal $5,946 $8,089 $2,143 Expense PH Subsidy Transfer fr FY 18 is $3.2 millin, $27 thusand less than FY 17. Public Husing Subsidy transfer decreases due t December 2017 scheduled subsidy cnversin fr the first six RAD prperties. Husing Assistance Payments fr FY 18 are $93.9 millin, $13.3 millin greater than FY 17. Husing Assistance Payment expense increases primarily due t: Mving t Wrk vucher expense increases $9.4 millin due t a 10.2% increase t vucher payment standards in respnse t changes in Prtland Metr Area Fair Market Rents. Veterans Assistance Supprtive Husing (VASH) vucher expenses increased $560 thusand due t payment standard increases described abve as well as increased utilizatin frm 86 newly leased vuchers. $4.2 millin increase in Other Rent Assistance due in part t $1.2 millin increase in Hmeless Families System f Care Grant and $1.8 millin increase in Shelter Plus Care. Offset by a ($265 thusand) decrease in Rent Assistance Mving t Wrk Prgrams Hme Frward 12

15 Persnnel Expense fr FY 18 is $22.3 millin, $474 thusand greater than FY 17. Persnnel Expense FY17 FY18 Inc.(Dec.) Administrative Persnnel Expense $6,571,554 $6,805,159 $233,605 Tenant Services Persnnel Expense 2,335,806 2,157,415 (178,391) Prgram Expense 9,289,796 10,015, ,627 Maintenance Persnnel Expense 3,677,438 3,370,662 (306,777) Ttal Persnnel Expense $21,874,594 $22,348,659 $474,064 Salary and wages increased $215 thusand due t prjected cmpensatin increases ffset by FTE changes. Other emplyee cmpensatin increased $259 thusand. Other emplyee cmpensatin includes PERS expense, emplyee medical and dental insurance, taxes, wrker s cmpensatin and unemplyment insurance. Ttal Full-Time Equivalents (FTE) fr agency funded psitins in FY 18 are budgeted at FTE. An additinal 35.2 FTE are funded directly frm tax credit limited partnerships. Cmbined FTE are FTE, a 5.0 FTE decrease frm FY 17. Other Administrative Expense fr FY 18 is $8 millin, $710 thusand greater than FY 17. Affrdable Husing Prtfli increases $338 thusand primarily due t increases in management fees and utside payrll frm prperty transitins. Administrative Grups increase $196 thusand primarily due t increases in sftware budget, data and netwrk expenses, staff training, and telephne csts. Develpment & Cmmunity Revitalizatin increases $79 thusand primarily due t equipment purchases and use f cnsultants fr subsidy cnversin prjects. Prperty Management increases $45 thusand due t changing the accunting fr ffice rent at Hllywd East. Integrated Facilities Services increases $24 thusand due t staff training and permit csts Other Tenant Services Expenses fr FY 18 are $2.5 millin, $374 thusand less than FY 17. Tenant services expense decreases primarily due t $366 thusand decrease in Vucher Success Fund. Other Maintenance Expenses fr FY 18 are $6.5 millin, $92 thusand greater than FY 17. Utilities fr FY 18 are $4.7 millin, $231 thusand greater than FY 17. Affrdable Husing Prtfli increases $208 thusand primarily due t prjected rate increases frm the utility cmpanies. Public Husing Prtfli increases $56 thusand primarily due t prjected rate increases frm the utility cmpanies. Hme Frward 13

16 Ttal Inter Agency (IA) Expense fr FY 18 is ($205 thusand), relatively flat cmpared t FY 17. This credit represents the cst f labr assciated with capital prjects that will be mved t wrk in prgress and capitalized as part f prperty imprvements n the Agency balance sheet. Depreciatin fr FY 18 is $8.4 millin, $467 thusand less than FY 17. Depreciatin is a nn-cash expense. The change is due t the prperty transitins in the real estate prtfli. General expenses fr FY 18 are $1.7 millin, $243 thusand greater than FY 17. Bad Debt Expense increases $40 thusand primarily due t Rent Assistance increase based n histrical debt expenses. Prperty Taxes, Misc. Taxes and Permits increased $36 thusand due prperty transitins in the Affrdable Husing Prtfli. Insurance expenses increase $188 thusand primarily due t increasing premiums and prperty transitins. Net Other Incme (Expense) Investment Incme fr FY 18 is $489 thusand, $264 thusand greater than FY 17. Investment incme increases $264 thusand due primarily t interest earned n General Fund Investments. Interest Expense fr FY 18 is ($2.8 millin), $183 thusand greater than FY 17. This is primarily due t Lvejy Statin Nn-HUD Mrtgage and Nn-HUD Bnd. Gain (Lss) n Sale f Assets fr FY 18 is ($75 thusand), $3.4 millin less than FY 17. In FY 17, Plaza Twnhmes was sld and generated a gain n sale f $5.3 millin. The ffsetting budgeted lss n sale f assets represents reductins in the bk value f assets reprted when undepreciated assets are replaced during renvatin activities. In FY 17 Fairview Oaks is expected t experience $1.1 millin in write ffs frm renvatins. Net Capital Cntributins HUD Nn-perating Cntributins fr FY 18 are $3.5 millin, $1.5 millin less than FY 17. HUD Nn-perating Cntributins (in thusands) FY17 FY18 Inc.(Dec.) 85 Stries $2,644 $2,270 (374) PH Capital Fund Trutn Bnd Payment (1) PH Capital Fund Capital Imprvement 1, (1,108) Ttal 4,943 3,460 (1,483) Hme Frward 14

17 Operating and Administrative Segment Review FY 18 Operating Statement by Operating Grup* Hme Rent Public Husing Affrdable Asset Prperty Integrated Resident Real Estate Frward Operating Statement Assistance Prtfli Prtfli Management Management Safety Facilities Develpment Services Administratin Finance Reserves Eliminatin Ttal Dwelling Rental $ - $ 3,405,428 $ 18,879,648 $ - $ - $ - $ - $ - $ - $ - $ - $ - $ (3,868,388) $ 18,416,689 Nn-dwelling Rental - 165,772 1,612, , , ,313 - (442,071) 2,370,729 HUD Subsidies -Husing Assistance 76,893,148-2,892, (296,683) 79,488,892 HUD Subsidies -Admin Fee 6,587, ,587,135 HUD Subsidies -Public Husing 57,446 6,816, ,817-3,931, , (449,817) 11,117,609 HUD Grants 6,609, ,064 77, , , ,503,858 Develpment Fee Revenue, Net ,854, ,854,465 State, Lcal & Other Grants 6,099,757-20, , ,920,775 Other Revenue 4,537, , , ,060 2,210,951-1,528, , ,460 31,915 (0) - (2,499,841) 8,088,641 Ttal IA Revenue 138, ,579 26, , , , (897,546) - Ttal Operating Revenues 100,923,091 10,760,443 24,589, ,639 6,984,911-1,528,382 3,106,733 3,222, , ,313 - (8,454,347) 144,348,792 PH Subsidy Transfer ,689, (449,817) 3,239,639 Husing Assistance Payments 98,007,711-19, (4,165,071) 93,862,296 Administrative Persnnel Expense 306, , ,622 90,679 82, , ,383 5,253, ,805,159 Other Admin Expenses 584,788 1,477,375 4,161, , ,972 10,000 31, , ,630 2,331,395 6,828 - (1,450,741) 7,957,349 Fees/verhead charged 344, ,500 5,336-7,200 56,074 - (0) - - (442,071) 7,200 Tenant Svcs Persnnel Expense 577, ,688 1,414, ,157,415 Other Tenant Svcs Expenses 603,946 89,926 50, ,702,807 84, ,531,219 Prgram Expense 4,712,270 1,363,714 50, , , ,503 1,445, ,354 81, ,015,423 Maintenance Persnnel Expense - 1,981,301 81, ,356-1,002, ,370,662 Other Maintenance Expenses - 1,944,339 4,890, , , , (801,271) 6,536,380 Utilities - 1,915,927 2,719, , , (247,829) 4,666,311 Ttal IA Expense 295, , , ,473 11,017 - (5,099) 81,366 (782,338) - - (897,546) (204,513) Depreciatin 1,362 2,639,187 5,236,775-6,501-5, , ,532 88,263 - (50,040) 8,391,815 General 192, , , ,539-11,488-16,506 32, ,659,712 Ttal Operating Expenses 105,626,167 11,734,259 18,562,439 1,497,504 6,168, ,696 1,658,122 2,417,310 4,031,505 7,597,588 95,095 - (8,504,387) 150,996,067 Operating Incme (Lss) (4,703,076) (973,816) 6,027,231 (955,866) 816,143 (111,696) (129,741) 689,422 (809,358) (7,015,775) 469,218-50,040 (6,647,274) Ttal Overhead Allcatins 1,847,480 1,158, , ,540 10, ,061 1,003, ,432 (6,770,095) Operating Incme (Lss) after Overhead (6,550,556) (2,132,802) 6,027,231 (1,843,188) (131,397) (121,908) (414,801) (313,640) (1,439,790) (245,680) 469,218-50,040 (6,647,275) Reserve Funding 4,126,816 - (937,086) - 181,905 10,000 - (5,197,951) 410,640 (63,865) (184,318) 1,653, Operating Incme (Lss) after Reserve Funding (2,423,740) (2,132,802) 5,090,145 (1,843,188) 50,508 (111,908) (414,801) (5,511,591) (1,029,150) (309,546) 284,900 1,653,859 50,040 (6,647,275) Investment Incme ,796-2, ,306 8, ,630 Interest Expense - - (2,589,934) (118,870) (119,680) - - (2,828,484) Gain (Lss) n Sale f Assets - (39,587) (34,572) (74,159) Net Other Incme (Expense) - (39,587) (2,527,709) - 2, ,435 (110,693) - - (2,414,013) HUD Nnperating Cntributins - 835, ,624, ,459,892 Net Capital Cntributins - 835, , ,702,748 (199,508) - 3,459,892 Other Equity Changes Change In Net Psitin $ (2,423,740) $ (1,337,215) $ 2,683,913 $ (1,843,188) $ 53,049 $ (111,908) $ (414,801) $ (5,511,591) $ (1,029,150) $ (48,110) $ 2,876,955 $ 1,454,351 $ 50,040 $ (5,601,396) *See Appendix fr larger versin f this table. Hme Frward 15

18 FY 18 Funding Flw Analysis By Operating Grup* Hme Rent Public Husing Affrdable Asset Prperty Integrated Resident Real Estate Frward Assistance Prtfli Prtfli Management Management Safety Facilities Develpment Services Administratin Finance Reserves Eliminatin Ttal Operating Incme (Lss) after Overhead $ (6,550,556) $ (2,132,802) $ 6,027,231 $ (1,843,188) $ (131,397) $ (121,908) $ (414,801) $ (313,640) $ (1,439,790) $ (245,680) $ 469,218 $ - $ 50,040 $ (6,647,275) Real Estate Prtfli Affrdable Husing Prperties Operating Activity - - (10,839,915) (10,839,915) Revenue frm Prperties t Hme Frward - - (259,207) (195,332) - (301,561) - - (756,100) Unrestricted Cash t HAP - - 4,048, , , ,330,626 Net Replacement Reserve Activity (New Market West) (98,400) (98,400) Net Replacement Reserve Activity (Special Needs) - - (186,534) (186,534) Develper Fee - Impact t Funding Flw Develper Fee Revenue (2,854,465) (2,854,465) Develper Fee - Cash t HAP(Net) ,602, ,602,643 Financing/Investment Activity Investment Incme - Unrestricted , ,541 Principal & Interest - Special Needs - - (114,443) (114,443) Principal & Interest - New Market West (287,192) (287,192) Capital Acquisitins IT Equipment and Sftware (15,750) - - (15,750) (15,750) - (1,750) (15,750) (5,250) (70,000) Nn-Cash Operating Activity Depreciatin Expense 1,362 2,639,187 5,236,775-6,501-5, , ,532 88,263 - (50,040) 8,391,815 Operating Activity Funded by Cash Reserves MIF Initiative Reserve Activity MTW Special Initiates Fund 2,397, , , ,572,084 MTW - Lcal Blended Subsidy (LBS) 1,611, ,611,287 MTW Administratin , ,241 (Excess)/Deficit Sectin 8 1,967, ,967,602 Tax Credit Supprt Services , , ,961 Special Purpse Reserve Activity Inter Departmental Reserve Transfers - - (27,000) ,394 - (103,394) Agency Initiatives ,105 10, , ,105 DCR Operating Reserve (5,540,933) (5,540,933) Affrdable Prtfli Reserve - - (300,000) (300,000) Insurance Reserve - - (500,000) (500,000) Agency Operating Reserve - - (125,000) (125,000) Funding Surce r (Shrtfall) (588,545) 506,385 2,975,444 (1,858,938) (0) (111,908) (411,462) 0 (865,154) (0) 1,032, ,647 Department Reserve Activity Rent Assistance 588, ,545 Public Husing Prtfli - (506,385) (506,385) Affrdable Prtfli - - (2,975,444) (2,975,444) Asset Management ,858, ,858,938 Safety , ,908 Integrated Facilities , ,462 Resident Services , ,154 Real Estate Finance (1,032,826) - - (1,032,826) Funding Required r (Cntributed) fr Current Agency Activities 588,545 (506,385) (2,975,444) 1,858, , , ,154 - (1,032,826) - - (678,647) Final Funding Surce r (Shrtfall) $ - $ 0 $ 0 $ 0 $ (0) $ (0) $ - $ 0 $ (0) $ (0) $ 0 $ - $ - $ (0) *See Appendix fr larger versin f this table. Numbers may be ff slightly due t runding. Hme Frward 16

19 FY 18 Staffing Summary by Operating Grup Fiscal Year 2018 Full-Time Equivalent Changes by Operating Grup Rent Public Husing Affrdable Asset Prperty Integrated Resident Agency Limited Agency Assistance Prtfli Prtfli Management Management Safety Facilities Develpment Services Administratin Funded Partnerships Managed FY 2018 ed FTE FY 2017 ed FTE Changes 0.9 (7.1) (1.8) 0.8 (0.7) 2.0 (0.3) 1.2 (3.0) (2.0) (5.0) Hme Frward 17

20 Cmmentary Rent Assistance Summary Data FY 17 FY 18 Inc.(Dec.) Operating Revenue $95,574,212 $100,923,091 $5,348,879 Operating Expense 91,996, ,626,167 13,629,177 Operating Incme Befre OH 3,577,223 (4,703,076) (8,280,229) Allcated Overhead 1,873,593 1,847,480 (26,113) Operating Incme After OH 1,703,630 (6,550,556) (8,251,186) Funding Flw Activity (1,789,569) 5,962,011 7,754,579 Funding Required r (Cntributed) fr Current Agency Activities $85,939 $588,545 $502,606 Ttal ed FTE Key Assumptins Husing Chice Vucher Assistance funding is expected t increase $1.17 millin in FY 18 due t an increased level f funding fr the VASH and FUP prgrams. Husing Chice Vucher Husing Assistance Payments are expected t increase by $10 millin in FY 18 due t increased csts in all prgrams. MTW Prgram Ttal Vuchers Average Vucher Cst Ttal HAP Expense FY 17 FY 18 FY 17 FY 18 Tenant Based 6,214 $ $ $47,438,505 $50,522,129 Prject Based 2, ,953,834 20,541,771 VASH ,600,937 4,161,202 FUP , ,903 Ttal HAP Expense $66,890,374 $76,057,005 Majr Prgrams/Initiatives/Activities and Estimated Impact Husing Chice Vuchers $83.6 millin: The Husing Chice Vucher (HCV) prgram is the federal gvernment's majr prgram fr assisting very lwincme families, the elderly, and the disabled t affrd decent, safe, and sanitary husing in the private market. Since husing assistance is prvided n behalf f the family r individual, participants are able t find their wn husing, including single-family hmes, twnhuses and apartments. Hme Frward manages three distinct HCV prgrams: Mving t Wrk (MTW) Vuchers - $76 millin Hme Frward 18

21 Hme Frward manages 8,418 Mving t Wrk vuchers. Utilizatin f these vuchers fr FY 18 is anticipated t be 93.3%. Veterans Affairs Supprtive Husing (VASH) Vuchers - $4.2 millin Hme Frward manages 585 VASH vuchers in partnership with the Department f Veterans Affairs. Utilizatin f these vuchers fr FY 18 is anticipated t be 92.2%. Family Unificatin Prgram (FUP) Vuchers - $831 thusand Hme Frward manages 100 FUP vuchers. Utilizatin f these vuchers fr FY 18 is anticipated t be 96.5%. Hmeless Preventin Services $12.3 millin: In additin t federally funded HCV, Hme Frward receives grant funding and partners with cmmunity service prviders t ffer Shrt-Term Rent Assistance (STRA). STRA prvides limited husing assistance t husehlds in Multnmah Cunty that are experiencing hmelessness r are at risk f hmelessness. Hme Frward als manages Shelter Plus Care grants which prvide rent assistance and supprtive services t peple with disabilities wh are experiencing hmelessness. Rent Assistance Mving t Wrk Initiatives - $2.11 millin: Hme Frward uses Mving t Wrk flexibility t fund a variety f lcal prgrams that supprt affrdable husing and further align the rganizatin with ur strategic perating plan. Amng these prgrams are: Alder and Earl Byles Schl Husing Partnerships - $684 thusand Hme Frward will prvide shrt t medium-term rent assistance and leverage supprt at cmmunity schls with the gal f imprving academic utcmes and husing stability. Lcal Shrt-Term Rent Assistance - $719 thusand In cllabratin with cmmunity partners, Hme Frward prvides additinal husing assistance t eligible husehlds in Multnmah Cunty wh are at risk f evictin, are newly hmeless, r are experiencing immediate crises in their husing. Vucher Success Fund - $441 thusand With supprt frm the Prtland Husing Bureau, Hme Frward will aid vucher hlders in finding and btaining stable husing. Cause f Year Over Year Change fr Majr Revenue/Expense Fluctuatins State, Lcal & Other Grants Revenue is budgeted t increase by $225 thusand. This change is primarily cmprised f: $1.16 millin additinal grant funding fr the Cntinuum f Care (Shelter Plus Care) prgram. Increases in grant funding will be ffset by a $907 thusand reductin due t Family Futures grant nt being awarded. Husing Assistance Payments Expense will increase by $13.8 millin due t: Hme Frward 19

22 $9.9 millin increase in Husing Chice Vucher subsidies as husing csts increase. Mnthly per unit cst is expected t increase frm $701/unit in FY 17 t $748/unit in FY 18. $1.8 millin in Shrt-Term Rent Assistance, as well as increases in spending fr Shelter Plus Care. Other Tenant Services expense will decrease by $417 thusand as funding fr the Vucher Success Fund is decreased in FY 18. Cause f Changes in Funding Flw Rent Assistance will utilize a $6.4 millin draw frm Reserve Funding. The Mving t Wrk Husing Chice Vucher Prgram generated a deficit, requiring Mving t Wrk initiatives t be funded frm reserves, as well as cvering the deficit generated frm the Husing Chice Vucher Prgram. Hme Frward 20

23 Cmmentary Public Husing Prtfli Summary Data FY 17 FY 18 Inc.(Dec.) Operating Revenue $10,675,735 $10,760,443 $84,708 Operating Expense 11,165,702 11,734, ,557 Operating Incme Befre OH (489,967) (973,816) (483,849) Allcated Overhead 1,597,078 1,158,986 (438,092) Operating Incme After OH (2,087,044) (2,132,802) (45,758) Funding Flw Activity 3,016,631 2,639,187 (377,444) Funding Required r (Cntributed) fr Current Agency Activities $(929,587) $(506,385) $423,202 Ttal ed FTE (5.2) The Public Husing Prtfli includes the budget activity fr 33 traditinal Public Husing prperties and 46 prperty level staff. Hme Frward s Public Husing stck prvides an imprtant resurce t the cmmunity by prviding husing fr 1,299 husehlds thrughut Multnmah Cunty. Prperty staff fcus n the management and maintenance f the prperties and wrk twards preserving the aging husing stck. In FY 18, staff will cntinue t integrate maintenance, prperty management, inspectins, and services with the gal f decreasing maintenance csts and turnver time. Key Assumptins Public Husing Prtfli Operating Subsidy Assumptins FY 17 FY 18 Units in Public Husing Prtfli 1,351 1,306 Eligibility Per Unit Per Mnth $490 $509 ed Prratin 83.5% 85.5% ed Prratin Per Unit Per Mnth $410 $435 Ttal Subsidy (in thusands) $6,639 $6,816 Husehlds Served ccupancy is assumed at 98%. FTEs During Fiscal Year 2017 staff reviewed pen psitins, wrklads and cnslidated prperty assignments where feasible. The result was a net decrease f 5.2 FTE. FY 17 FTE als included 1.97 FTE budgeted t Madrna which transferred t AH prfli. This includes: Hme Frward 21

24 Decreases f: 2.4 FTE Net change between Prperty, Site and Assistant Prperty Managers 0.5 FTE Maintenance Supervisr 1 FTE Maintenance Generalist III 1.5 FTE Maintenance Generalist I Transfer 1.97 FTE t AH Prtfli f staff budget at Madrna Majr Prgrams/Initiatives/Activities and Estimated Impact Prperty staff will assist the cnversin f public husing prperties thrugh the RAD prgram by cmpleting inspectins, new leases and reviews Planned Capital Grant prjects are: a cmprehensive rehab at Harld Lee Village, water line replacement at Williams Plaza, Sewer Repair at Tamarack, Security Cameras at Stark Manr and abatement and flring prjects thrughut the prtfli. As part f the RAD cnversin, Madrna Place Apartments is the first Public Husing prperty t mve t the Affrdable Prtfli reprting grup. This change may cnceal underlying budget fluctuatins. The fllwing table shws Madrna Place Apartments budget fr FY 17: Summary Data fr Madrna Place Apartments FY 17 Operating Revenues $554,852 Operating Expenses 582,020 Net Operating Incme Befre OH (27,168) Ttal Overhead Allcatins 53,197 Net Operating Incme After OH $(80,365) Cause f Year Over Year Change fr Majr Revenue/Expense Fluctuatins Operating Revenue shws an increase f $85 thusand cmpared t the FY 17. Dwelling Rental will increase $127 thusand as a result f the cntinuing impact f rent refrm and the implementatin f minimum rents. HUD Subsidies fr Husing Assistance decrease $214 thusand due t Madrna Place Apartments mving t Affrdable Husing. The Lcal Blended Subsidy will mve with Madrna. HUD Subsidies fr Public Husing increase $177 thusand cmpared t the FY 17 based n calendar year 2016 actual funding and inflatin increases. Hme Frward 22

25 Operating Expense shws an increase f $569 thusand cmpared t the FY 17. Decreased Maintenance Persnnel Expenses and Depreciatin are driving much f the reductin in expenses, ffset by a $1.16 millin increase in Other Administratin Expenses. The increase in Other Administratin Expenses is due t a new apprach t reflecting prperty management fees. Previusly, the expense f the Prperty Management department was recrded as departmental verhead. Nw, the revenue is reflected in Prperty Management, while the expense is allcated t each prperty. Fr FY 18, the Prperty Management department is charging $1.15 millin. Prgram Expense decreases $85 thusand, primarily due t a Prgram Persnnel Expense decrease f $108 thusand in Traditinal Public Husing. Maintenance Expenses decrease $358 thusand due t a $106 thusand Maintenance Persnnel Expense decrease in Traditinal Public Husing and a $251 thusand decrease in Other Maintenance Expenses. The decrease in Other Maintenance Expenses can be traced back t Cre Maintenance expenses in Traditinal Public Husing. Tenant Services increased $36 thusand fr relcatin services at Harld Lee Village during the rehab A $334 thusand decrease in depreciatin is due in part t a $178 thusand reductin in depreciatin at Madrna Place Apartments. Madrna Place Apartments will mve t Affrdable Husing fr FY 18. (see table) Operating Incme after Overhead is -$2.13 millin. Cause f Changes in Funding Flw Net Capital Cntributins decreased $1.1 millin cmpared FY 17 due t cmpletin f prjects. In FY 18 there is $835 thusand budgeted fr the cntinuatin f cmprehensive rehab at Harld Lee Village. The Public Husing Prtfli fully funds all f its peratins and has $506 thusand in excess cash flw prjected fr FY 18 t cntribute t current agency activity. Hme Frward 23

26 Cmmentary Affrdable Husing Prtfli Summary Data FY 17 FY 18 Inc.(Dec.) Operating Revenue $21,135,258 $24,589,669 $3,454,411 Operating Expense 17,624,295 18,562, ,144 Operating Incme Befre OH 3,510,964 6,027,231 2,516,267 Allcated Overhead Operating Incme After OH 3,510,964 6,027,231 2,516,267 Funding Flw Activity (1,811,861) (3,051,786) (1,239,926) Funding Required r (Cntributed) fr Current Agency Activities $(1,699,103) $(2,975,444) $(1,276,341) Ttal ed FTE (0.4) The Affrdable Prtfli cnsists f 76 prperties with 5,134 units thrughut Multnmah Cunty financed by private debt, public debt, and tax credits. T better illustrate the perfrmance and behavir f the business lines, the Affrdable Prtfli (Real Estate Units) has been separated frm Asset Management, a service functin. The summary data belw is fr prperties wned by Hme Frward, which includes the master-leased prtfli (505 units in 34 prperties). Tax Credit partnership activity is excluded except fr the unrestricted cash generated and remitted t Hme Frward. The Affrdable Prtfli is a majr cntributr f revenue t the agency thrugh cash flw frm mature prperties. The majr challenge fr the Affrdable Husing Prtfli in the upcming year is balancing the agency s need fr cash flw t fund current services while cmpleting much needed capital imprvements at a number f aging sites. Rising insurance csts and the transitin t RAD funding will als impact the prtfli in the upcming fiscal year. Key Assumptins Change n Net Operating Incme, Unit Size and FTE by Transitin Type Prperty Units FTE FY 17 FY 18 Year Over Year Change Tax Credit Cnversin Lvejy Statin $- $1,100,418 $1,100,418 RAD Madrna Place , ,004 New Prperty Baldwin N Interstate ,700 26,700 Ttal $- $1,301,122 $1,301,122 The average budgeted ccupancy is 98% (cnsistent with actual prperty perfrmance). In FY 18 Madrna staffing is in Affrdable Husing. 1.6 FTE are budgeted in FY 18. Hme Frward 24

27 Majr Prgrams/Initiatives/Activities and Estimated Impact There is an expected increase f insurance premiums due t recent lss histry. The impact t the Affrdable Prtfli will be $151 thusand fr the Affrdable Prtfli and $334 thusand fr the Tax Credit Prtfli. T prepare fr increased insurance deductibles, a $500 thusand insurance reserve has been established frm a cmbinatin f Prperty and Asset Management Department Reserves. $4.6 millin in Maintenance Prjects including the fllwing large prjects: Fairview Oaks (Exterir Rehab) Hamiltn West (Windw Replacement) Rckwd Landing (Rf Replacement) Gretchen Kafury (Windw Replacement) Richmnd Place (Multiple Prjects) Cause f Year Over Year Change fr Majr Revenue/Expense Fluctuatins Operating Revenue shws an increase f $3.4 millin, $2.6 millin caused by the prperty transitins. Excluding this adjustment, Operating Revenue increases $865 thusand. The belw cmments explain the $865 thusand change. Dwelling rental increases $610 thusand due t increasing payment standards (capped at 5% maximum increase). The prjected increase is prtfli-wide but Rckwd Statin ($211 thusand), Fairview Oaks ($155 thusand) and Gretchen Kafury ($66 thusand) makes up the majrity f the increase. HUD Subsidies Husing Assistance increases $350 thusand due t an increase in HUD Multifamily Sectin 8 cntract rent ($277 thusand Grace Peck, $68 thusand Rsenbaum). Operating Expenses shws an increase f $860 thusand, $1.4 millin due t the abve prperty changes. The belw cmments reflect the net decrease f $510 thusand. Depreciatin decreases $564 thusand due t treatment f Tax Credit Cnversins (Sequia Square $114 thusand, Hamiltn West $166 thusand and St. Francis $298 thusand). Accunting will depreciate Tax Credit Cnversins at value at cnversin instead f riginal bk value. Cause f Changes in Funding Flw Unrestricted cash t the agency is expected t be $5.3 millin, an increase f $1.7 millin frm FY 17. $1.3 millin f the unrestricted cash t the agency has been reallcated t the apprpriate perating grups. The funding f a Real Estate Capital Reserve ($300 thusand) is part f a ten-year plan t address capital needs within the Affrdable Prtfli. This is a $100 thusand decrease frm the prir year. The funding f an Agency Operating Reserve ($125 thusand) is als part f a ten-year plan t address adequate funding fr unfreseen Agency level perating reserves. The funding f a $500 thusand insurance reserve that is intended t pay fr deductibles in the upcming year. Depending n the debt and equity structure, prperties in this prtfli may nt be able t apply service fees (such as Hme Frward 25

28 Asset Management r Resident Services) as perating expenses. The Affrdable Prtfli fully funds all f its eligible perating csts and prvides $3.0 millin t fund these ther agency initiatives and services. Hme Frward 26

29 Cmmentary Asset Management Summary Data FY 17 FY 18 Inc.(Dec.) Operating Revenue $570,427 $541,639 $(28,788) Operating Expense 1,350,988 1,497, ,516 Operating Incme Befre OH (780,561) (955,866) (175,305) Allcated Overhead 1,290, ,322 (403,181) Operating Incme After OH (2,071,065) (1,843,188) 227,877 Funding Flw Activity (25,200) (15,750) 9,450 Funding Required r (Cntributed) fr Current Agency Activities $2,096,264 $1,858,938 $(237,327) Ttal ed FTE T better illustrate the perfrmance and behavir f the business lines the Affrdable Prtfli (Real Estate Units) has been separated frm Asset Management, a service functin. The Asset Management grup is respnsible fr verseeing the perfrmance f the entire Hme Frward real estate prtfli with the fllwing breakdwn: Prtfli Type Prperties Units Public Husing 33 1,310 Special Needs Affrdable 25 4,629 Tax Credit 17 2,225 Ttal 109 6,444 Key Assumptins Changes in Staffing A net additin f 0.4 FTE due t Asset Management f the Public Husing Prtfli. Cause f Year Over Year Change fr Majr Revenue/Expense Fluctuatins Operating Expenses shw an increase f $160 thusand. Planned cmpensatin increases and FTE additins increase persnnel csts by $133 thusand. Cause f Changes in Funding Flw As nted in the Affrdable Prtfli sectin, the Asset Management Department needs $1.8 millin t fully fund all planned peratins t versee the perfrmance f the prperties. Hme Frward 27

30 Cmmentary Prperty Management Summary Data FY 17 FY 18 Inc.(Dec.) Operating Revenue $5,733,937 $6,984,911 $1,250,973 Operating Expense 6,256,579 6,168,768 (87,811) Operating Incme Befre OH (522,642) 816,143 1,338,785 Allcated Overhead 1,068, ,540 (121,360) Operating Incme After OH (1,591,542) (131,397) 1,460,145 Funding Flw Activity (21,767) 131, ,165 Funding Required r (Cntributed) fr Current Agency Activities $1,613,310 $- $(1,613,310) Ttal ed FTE (1.8) Prperty Management is the service department fr Hme Frward s self-managed prperties. Prperty Management grup is respnsible fr verseeing the cmpliance and maintenance at 33 traditinal public husing prperties, ne affrdable husing prperty and seven tax credit prperties. These 41 prperties prvide husing fr 2,381 husehlds. Overall, the Prperty Management grup supervises 97 FTE. Thirty-five f thse staff are budgeted in Hme Frward Tax Credit prperties. The perating activity fr the Tax Credit prperties is reprted utside f the Prperty Management budget but their assciated verhead csts are included. Anther 46 staff are budgeted at the traditinal public husing prperties and the assciated csts are within the Prperty Prtfli budget. The 16 staff captured in this budget include management and cmpliance staff; curier, and maintenance staff wh prvide peer training and backfill. In FY 18, Prperty Management will cntinue t transitin ur business mdel and supprt the gals f Hme Frward s Strategic Operatins Plan. Prperty Management will implement year six f rent refrm, supprt the first public husing prperties cnverting t RAD (Rental Assistance Demnstratin) and participate in the RAD Phase 2 and Sectin 18 applicatins fr the remaining Public Husing prperties. Over the last year Prperty Management reviewed vacant staff psitin, wrklads and cnslidated assignments where feasible and will extend this wrk int FY 18. Prperty Management will als cntinue t evaluate hw best t integrate maintenance, prperty management, inspectins, and services with the gal f decreasing maintenance csts and turnver time. Key Assumptins This budget includes the Public Husing Operating Subsidy that is transferred t Hme Frward mixed finance prperties. Operating Subsidy is budgeted at 85.5% prratin. FTEs Prperty Management shws a net decrease f 1.8 FTE. This includes: Decreases: 2 FTE MG1 budgeted in FY 17 as seasnal help 0.45 FTE Assistant Directr psitin that was cnverted t a Reginal Manager psitin in FY 17 Hme Frward 28

31 0.26 FTE Maintenance Supervisr Transfers: 0.3 FTE Real Estate Specialist t Integrated Facilities 0.2 FTE Maintenance Generalist III frm the Prperty Prtfli Increase: 1 FTE RAD Prgram Analyst funded thrugh Public Husing Reserves Majr Prgrams/Initiatives/Activities and Estimated Impact Physical Needs Assessments are budgeted fr the prpsed Sectin 18 prperties and are funded by Capital Fund grant. Prperty Management staff will supprt the cnversin f six RAD public husing prperties as well as future RAD cnversin and the Sectin 18 applicatins fr nine Public Husing prperties. Staff will cntinue t assess prperty management peratins and develp strategies t achieve a sustainable business mdel. Cause f Year Over Year Change fr Majr Revenue/Expense Fluctuatins Operating Revenue shws an increase f $1.25 millin cmpared t the FY 17. Public Husing HUD Subsidies increase $88 thusand, mainly due t an increase in Public Husing HUD Operating Subsidy Transfer as f result f Madrna becming an affrdable prperty as a result f the RAD cnversin. Other Revenue increases $1.14 millin, primarily due t the transitin t a prperty management fee mdel where fees are being charged t prperties. Prperty Management Fees in 2018 ttal $1.15 millin. Ttal Inter-Agency Revenue increases $20 thusand, due t a staff hme department reassignment. The Inter- Agency Revenue was previus budgeted in a public husing prperty. Operating Expenses shw a decrease f $88 thusand cmpared t the FY 17. PH Subsidy Transfer increases $89 thusand due t PH Subsidy t Partnerships decrease f $27 thusand as a result f the RAD transfer in December and PH Subsidy t AH Prperties increase f $116 thusand which is a result f Madrna transferring t an AH prperty. Administratin Expenses increase $96 thusand. $50 thusand f the increase in Administrative Persnnel Expense is primarily due t the additin f 1 FTE RAD Prgram Analyst, which was ffset by a decrease f.5 FTE Assistant Directr. Other Adminstrative Expenses increased $45 thusand which is driven by a $73 thusand increase t External Office Rent and a $28 thusand decrease in Other Admin Expenses fr items that mved t the prperty budgets. Fees/Overhead Charged decreases $68 thusand due t reclassifying the rent at Hllywd East frm internal ffice rent t external rent in the Adminstratin Expense grup. Hme Frward 29

32 Prgram Expense decreases $53 thusand. There was a $40 thusand decrease in temprary help as result f transferring applicable cst t prperty budgets. There was als a $13 thusand decrease in Prgram Persnnel as a result f the transfer f supprt staff t the Integrated Facilities Services grup. Maintenance Expenses decrease $208 thusand Maintenance Persnnel Expense decreases $129 thusand. $79 thusand is due t the reductin f 2 FTE Maintenance Generalist 1 psitins ffset by a.2 FTE increase in MGIII FTE and budgeted cmpensatin increases. An additinal $50 thusand is the transfer f Overtime t the prperty budgets. Other Maintenance Expenses decrease $79 thusand due primarily t a decrease in Public Husing Department Maintenance Cntracts and Services. Ttal Inter-Agency Expense increases $93 thusand due t Inter-Agency staffing changes including the additin f 1 FTE RAD Prject Accuntant and.15 FTE Rent Assistance Prgram Analyst. General Expenses decrease $41 thusand primarily due t the transfer f the bad debt expense t prperty budgets. Operating Incme Befre Overhead shws an increase f $1.34 millin due t a fee being charged t each prperty fr prperty management services. Allcated Overhead decreased $121 thusand due t a change in Overhead methdlgy. Operating Incme after Overhead is a $1.46 millin gain ver last budget year because f the change in Overhead allcatin and the institutin f a prperty management fee increasing revenues. Cause f Changes in Funding Flw There is a $153 thusand increase in funding flw as Reserve Funding. Prperty Management is using $138 thusand f public husing reserves fr tw new RAD psitins t help the agency thrugh the cnversin. Prperty Managements use f funding fr agency activities decreased $1.61 millin due t reduced expenses and the new prperty management fee revenue. Hme Frward 30

33 Cmmentary Safety Summary Data FY 17 FY 18 Inc.(Dec.) Operating Revenue $- $- $- Operating Expense - 111, ,696 Operating Incme Befre OH - (111,696) (111,696) Allcated Overhead - 10,212 10,212 Operating Incme After OH - (121,908) (121,908) Funding Flw Activity - 10,000 10,000 Funding Required r (Cntributed) fr Current Agency Activities $- $111,908 $111,908 Ttal ed FTE Safety is a new perating grup, tasked with crdinating Hme Frward s prperty and staff safety awareness and training. The verarching bjective is t utilize a practive apprach in reducing lsses, with a fcus n prviding safe and cmfrtable hmes fr ur residents, and a safe and inviting wrkplace fr ur emplyees. The Safety grup will identify ptential risks t prperties and peratins, develp strategies t mitigate risks, and deliver safety and cmpliance training t Hme Frward staff. Key Assumptins FTEs the Safety Grup includes: 0.4 FTE Directr f Integrated Services and Safety 0.4 FTE Facilities and Safety Supervisr Majr Prgrams/Initiatives/Activities and Estimated Impact Staff will cnduct physical assessments f prperties and make safety and training recmmendatins. This will include: Tracking and ensuring cmpliance with varius ccupatinal and safety laws and regulatins and Creating and implementing safety plicies t guide agency departments and staff. Cause f Year Over Year Change fr Majr Revenue/Expense Fluctuatins Operating Expenses are $112 thusand fr FY 18. Administratin includes $91 thusand in Persnnel Expenses and $10 thusand fr training and supprt f safety activities. Overhead Allcatins are $10 thusand based n Hme Frward s new allcatin methdlgy. Hme Frward 31

34 Operating Incme after Overhead is -$122 thusand. Cause f Changes in Funding Flw Funding flw activity includes use f $10 thusand f Public Husing reserves and $112 thusand f Agency funding fr FY 18 activities. Hme Frward 32

35 Cmmentary Integrated Facilities Services Summary Data FY 17 FY 18 Inc.(Dec.) Operating Revenue $1,739,447 $1,528,382 $(211,066) Operating Expense 1,601,316 1,658,122 56,806 Operating Incme Befre OH 138,131 (129,741) (267,872) Allcated Overhead (1,347) 285, ,408 Operating Incme After OH 139,479 (414,801) (554,280) Funding Flw Activity 5,934 3,339 (2,595) Funding Required r (Cntributed) fr Current Agency Activities $(145,413) $411,462 $556,875 Ttal ed FTE (0.7) Integrated Facilities Services is the perating grup fr Hme Frward s specialized maintenance services. Services include electrical wrk, plumbing, pest cntrl, painting, hauling, and garbage and recycling pick up. Hme Frward Managed Prperties utilize Integrated Facilities Services based n need and are billed fr services prvided. This grup was frmerly included in Prperty Management as Cre. In FY 18, Integrated Facilities Services will fcus n reviewing hw services are billed t prperties, ensuring all Hme Frward csts are included in rates and hw t streamline services. Key Assumptins FTEs Facilities Services shws a net decrease f.7 FTE. This includes: Decreases: 0.5 FTE Supervising Electrician 1 FTE MGIII Shp Mechanic Transfers: 0.3 FTE Real Estate Specialist frm Prperty Management Increase: 0.6 FTE Directr f Integrated Facility and Safety Majr Prgrams/Initiatives/Activities and Estimated Impact Replacement garbage carts will cst $12 thusand. Imprve hw services are billed t prperties fr a mre efficient prcess. Hme Frward 33

36 Cntinued planning and analysis f services t Hme Frward Prperties. Cause f Year Over Year Change fr Majr Revenue/Expense Fluctuatins Operating Revenue fr FY 18 shws a decrease f $211 thusand cmpared t the FY 17. The driver f this change is reductin f fees cllected frm Hme Frward Managed and Tax Credit prperties. The utilizatin f Integrated Facilities Services was based n annualized actuals fr the prperties. Operating Expense shws an increase f $57 thusand cmpared t the FY 17 mainly due t department persnnel increases. Administrative and Prgram Persnnel expenses increased $108 thusand due t the additin f a Department Directr and transfer f supprt staff. Other Administrative Expenses increased $14 thusand fr electrical and garbage/recycling permits Maintenance Persnnel decreased $102 thusand as a result f the FTE reductin fr the Shp Mechanic and Electrician. Other Maintenance expense increases $46 thusand primarily due t a $22 thusand increase in vehicle repair cntracts as a result f the age f the vehicles, $9 thusand fr truck parking, and $12 thusand is budgeted fr replacement garbage carts. Aut insurance decreases $4 thusand due t a reductin in the fleet which was ffset by increased insurance premiums. Operating Incme changed frm $138 thusand in FY 17 t -$130 thusand in FY 18. This $268 thusand decrease in perating incme is a result f less utilizatin f Integrated Facilities by prperties. The gal is t decrease the gap by finding additinal prjects with Hme Frward s Develpment grup and cntinue t review services and find ways t imprve efficiency. Allcated Overhead increased $286 thusand based n the new methd fr distributing verhead. Cause f Changes in Funding Flw The cmbinatin f the change in perating incme and the new verhead methdlgy leaves Integrated Facilities at a funding shrtfall f $477 thusand. Hme Frward 34

37 Cmmentary Develpment & Cmmunity Revitalizatin Summary Data FY 17 FY 18 Inc.(Dec.) Operating Revenue $862,318 $3,106,733 $2,244,415 Operating Expense 2,127,970 2,417, ,340 Operating Incme Befre OH (1,265,652) 689,422 1,955,075 Allcated Overhead 950,539 1,003,062 52,522 Operating Incme After OH (2,216,192) (313,640) 1,902,552 Funding Flw Activity 2,216, ,640 (1,902,951) Funding Required r (Cntributed) fr Current Agency Activities $- $- $- Ttal ed FTE The Develpment and Cmmunity Revitalizatin (DCR) department undertakes develpment f new affrdable rental husing, plus acquisitin and rehabilitatin f existing affrdable husing prperties. As part f its develpment and rehabilitatin effrts, DCR is als respnsible fr structuring the financing that supprts these cnstructin activities. Relcatin services are prvided as necessary in supprt f varius develpment and rehabilitatin prjects. The department earns Develper Fees t supprt the csts f develpment. Active Prjects: 13 Active Prjects ttal budget: $285 millin Staff FTE FY 18: 17 Key Assumptins DCR staffing is budgeted t increase frm 15 FTE t 17 FTE fr FY 18 staffing levels. A full-term Design and Cnstructin Prject Manager is added t FY 18 budget t assist with the increased wrklad f the DCR Department due t the repsitining f all the existing Public Husing Prtfli via RAD cnversin and new develpments being pursued thrugh current PHB/NOFA. A full-term Office Assistant II is added t FY 18 budget t assist with the increased wrklad f the DCR Department. This psitin is shared by DCR Department, Asset Management and Executive & Bard f Cmmissiners. The department will cntinue t utilize Inter-Agency transfers t reflect staffing csts that are capitalized in real prperties r transferred frm ther departments. Hme Frward 35

38 Develper Fees Accrued and Received FY 18 (amunt in Millins) Prject Prject Ttal Develper Fee Revenue FY 18 Accrued Develper Fee Revenue FY 18 Develper Fee t be Received 85 Stries Grup 1 $58.0 $5.1 $0.0 $ Stries Grup St. Francis Park Square Manr NE Grand Avenue Framewrk Prject Ttal $281.6 $16.3 $2.9 $8.6 Majr Prgrams/Initiatives/Activities and Estimated Impact 85 Stries Grups 1 & 2 - High-rise Twers Rehabilitatin Grup 1 includes Gallagher Plaza and Nrthwest Twer and Grup 2 includes Hllywd East and Sellwd Center. Bth f these tax credit partnerships utilize 4% lw incme husing tax credits, bnd funds and internal grant and reserve funds. Cnstructin f these prjects was cmpleted in April Stries Grup 1 (In Millins) FYE 15 FYE 16 FYE 17 FYE 18 Ttal Prject Uses $24.5 $26.4 $6.7 $0.4 Ttal Prject Surces $24.5 $26.4 $6.7 $ Stries Grup 2 (In Millins) FYE 15 FYE 16 FYE 17 FYE 18 Ttal Prject Uses $30.0 $28.7 $7.5 $0.4 Ttal Prject Surces $30.0 $28.7 $7.5 $0.4 Hme Frward 36

39 St. Francis Park Develpment - Hme Frward has partnered with Cathlic Charities fr the develpment f an affrdable husing prject in Sutheast Prtland. The tax credit partnership will utilize 4% lw incme husing tax credits, bnd funds and PHB lan funds. Hme Frward will serve as the Limited Partner Investr and develper f recrd with Cathlic Charities serving as the General Partner and prperty manager. Prject cnstructin is scheduled t be cmpleted in May St. Francis Park (In Millins) FYE 15 FYE 16 FYE 17 FYE 18 FYE 19 Ttal Prject Uses $2.2 $4.0 $13.9 $3.0 $0.1 Ttal Prject Surces $2.2 $4.0 $13.9 $3.0 $0.1 Square Manr Gladstne Square and Multnmah Manr Apartments Rehabilitatin This tax credit partnership will utilize 4% lw incme husing tax credits, bnd funds, grants and reserve funds. Prject cnstructin is scheduled t begin fr Gladstne Square in March 2017 and Multnmah Manr cnstructin is estimated t begin in May The first initial installment f the develper fee will be paid at the clse f cnstructin finance estimated fr June Square Manr (In Millins) FYE 17 FYE 18 FYE 19 FYE 20 Ttal Prject Uses $10.3 $8.7 $1.0 $0.1 Ttal Prject Surces NE Grand Prject NE Grand is a mixed-incme, mixed-use new cnstructin develpment. The Prtland Husing Bureau awarded the land and funding t Hme Frward. The develpment will utilize 4% lw incme husing tax credits, bnd funds, grants and reserve funds. The initial installment f the develper fee will be paid at the clse f cnstructin finance scheduled fr August Cnstructin is scheduled t begin in September NE Grand (In Millins) FYE 17 FYE 18 FYE 19 FYE 20 FYE 21 Ttal Prject Uses $1.0 $11.0 $25.0 $10.0 $0.8 Ttal Prject Surces Framewrk Prject - Framewrk is a mixed-use new cnstructin develpment. The develpment will utilize 4% lw incme husing tax credits, bnd funds, grants and reserve funds. Clse f cnstructin finance is scheduled in July 2017 and cnstructin is scheduled t begin in August Framewrk (In Millins) FYE 17 FYE 18 FYE 19 FYE 20 FYE 21 Ttal Prject Uses $0.5 $16.0 $28.4 $19.5 $1.5 Ttal Prject Surces Hme Frward 37

40 Capital Imprvement Prjects There are seven capital imprvement prjects that are currently in prgress. These prjects have a ttal budget f $3.6 millin and will utilize the Capital Fund Prgram (CFP) grant and reserves fund. Prjects Prject (in Millins) Estimated Prject Cmpletin Harld Lee Cmprehensive Rehabilitatin $1.8 Jan-2017 Tamarack Sewer Emergency Repair 0.6 Mar-2018 Williams Plaza Water Line Repair 0.3 Mar-2018 Stark Manr Cmaera System 0.3 Jun-2017 Tillicum Nrth Exterir Painting 0.2 Aug-2017 Tillicum Suth Exterir Painting 0.2 Aug-2017 Fairview Cmprehensive Rehabilitatin 0.2 May-2017 Ttal $3.6 Cause f Year Over Year Change fr Majr Revenue/Expense Fluctuatins Operating Revenue increases $2.2 millin frm FY 17. Develper Fee Revenue increases $2.3 millin frm FY 17 budget, a ttal f $2.9 millin in develper fees will be earned in FY 18 Develper Fees (in Millins) Prjects Ttal FY 18 St. Francis Park $1.4 $0.45 Square Manr LP NE Grand Framewrk Ttal $5.8 $2.9 Cnduit Financing Revenue fr FY 18 is budgeted t earn $147 thusand fr Hme Frward s bnd issuance t Parcel 3. Ttal Operating Expense increases $289 thusand frm FY 17 budget primarily due t: Persnnel expenses increase f $212 thusand due t tw new psitins and increase in benefit csts. Other administrative expenses increase f $77 thusand. Cnsultant and Other Prfessinal Services increase f $74 thusand fr services related t Public Husing Prtfli repsitining via RAD and upcming new develpments. Hme Frward 38

41 Sftware and Expendable Office Equipment increase f $24 thusand fr sftware and cmputer upgrades. Preliminary/Clse-ut Develpment Expenses decrease f $25 thusand due t cmpletin f 85 Stries prject Other Miscellaneus Expenses increase $4 thusand t fllw trend f actual expenditures ver the last tw fiscal years. Cause f Changes in Funding Flw The cash t Hme Frward highlights the cyclical nature f prjects where develper fees will be earned and paid ver the next fiscal year. The prject lifecycle f the department is exhibited by: The St. Francis Park prject generates a $1.4 millin develper fee ver multiple fiscal years. The first installment f $250 thusand was paid at the clse f finance in March Secnd Installment f $250 thusand is due t be paid at cnstructin cmpletin scheduled in May Third Installment f $234 thusand is due t be paid upn receipt f Frm 8609 scheduled in Octber Furth installment f $50 thusand is due t be paid upn satisfactin f all cnditins f Final Installment scheduled in April 2018 Develpment fee balance f $616 thusand will be evidenced by a prmissry nte and shall be paid ut f the Limited Partnership cash flw frm Operatins. 85 Stries Grup 1 generates a $5.1 millin develper fee ver multiple fiscal years. In FY 18 expected payments f earned develper fees is $3.7 millin. Secnd Installment f $700 thusand is due t be paid upn satisfactin f cnstructin cmpletin estimated in March Third Installment f $3.3 millin is due t be paid at finance cnversin scheduled in April Furth installment f $450 thusand is due t be paid upn satisfactin f all cnditins f Final Installment scheduled in September Stries Grup 2 generates a $5.4 millin develper fee ver multiple fiscal years. In FY 18 expected payments f earned develper fees is $3.8 millin. Secnd Installment f $800 thusand is due t be paid upn satisfactin f cnstructin cmpletin estimated in March Third installment f $3.4 millin is due t be paid at finance cnversin scheduled in April Furth installment f $450 thusand is due t be paid upn satisfactin f all cnditins f Final Installment scheduled in September Square Manr will generate $1.4 millin in develper fee ver multiple fiscal years. The first installment f $248 thusand is due t be paid at the clse f cnstructin finance estimated in June Hme Frward 39

42 NE Grand will generate $2.5 millin in develper fee ver multiple fiscal years. The first installment f $480 thusand is due t be paid at the clse f cnstructin finance estimated in August Hme Frward 40

43 Cmmentary Resident Services Summary Data FY 17 FY 18 Inc.(Dec.) Operating Revenue $3,383,121 $3,222,147 $(160,974) Operating Expense 4,043,332 4,031,505 (11,826) Operating Incme Befre OH (660,211) (809,358) (149,147) Allcated Overhead (281,372) 630, ,804 Operating Incme After OH (378,838) (1,439,790) (1,060,951) Funding Flw Activity 172, , ,557 Funding Required r (Cntributed) fr Current Agency Activities $206,760 $865,154 $658,394 Ttal ed FTE (0.3) In FY 18, the Resident Services team will cntinue t play a pivtal rle in the crdinatin and delivery f services at 51 Hme Frward prperties thrughut Multnmah Cunty. The grup plans t deliver services t apprximately 3000 residents prviding arund 15,000 service interactins. Thrugh intentinal alignment with cmmunity partners we will wrk hlistically with bth individual and family systems t further their gals f scial, emtinal, academic and ecnmic advancement and well-being. In supprt f the ne Strategic Plan we will infuse trauma awareness, healing and equity fr meaningful engagement and service delivery. We will als attempt t extend services and supprt t a greater number f Hme Frward recipients thrugh asset develpment, the creatin f a Health and Supprt Services platfrm and alignment with early childhd strategies identified by the Prgram Directr f Educatin and Yuth Initiatives. Finally, with prpsed shifts in funding, we fresee pprtunities t critically review rganizatinal practices and extend strategies t adequately fund services ver time. This summary includes the services budgets fr Hme Frward s three HOPE VI develpments (Humbldt Gardens, Stephens Creek Crssing and New Clumbia), Bud Clark Cmmns, 85 Stries - Phase I and prgrams and services t residents at traditinal affrdable husing and public husing prperties. Key Assumptins FTEs Resident Services shws a net decrease f 0.3 FTE. This includes: Decreases: 1 FTE Prgram Supervisr due t the end f the Hpe VI Cmmunity Services Grant 0.3 FTE Resident & Cmmunity Services Crdinatr due t the sale f Plaza Twnhmes Transfers: 1 FTE Prgram Directr, Educatin & Yuth was reassigned frm the administrative grup t Resident Services Hme Frward 41

44 Majr Prgrams/Initiatives/Activities and Estimated Impact Barrier Reductin and Opprtunity Funds: $35 thusand is prpsed in Mving t Wrk Initiative funds (MIF) t cntinue effrts t implement strategies t increase independence at senir and individuals with disabilities, shrtterm respite care fr individual impact by vilence and t prvide pprtunities fr ecnmic advancement a family prperties. Service Apprach Redesign: $33 thusand is prpsed in Mving t Wrk Initiative funds t create a service delivery mdel that meets the needs are wants f Hme Frward s residents and participants. The Urban Institute is investing $86 thusand natinally in the research and develpment phase. Service staff will cntinue t supprt residents during the RAD cnversins. Cause f Year Over Year Change fr Majr Revenue/Expense Fluctuatins Operating Revenue decreases $161 thusand frm the FY 17 budget primarily due t a $209 thusand reductin in HUD grants: HUD grants decrease $114 thusand in the Stephens Creek Crssing Supplemental, due t a crrespnding staff and prgram expense reductin. HUD grants decrease $96 thusand at Humbldt Garden Supprt. There is an increase in revenue frm the prperty, with the bjective f using less endwment, thereby extending its life. Revenues frm State, Lcal & Other Grants have a net decrease f $71 thusand due t: $206 thusand Yuth Activities grant frm Multnmah Cunty ending. The assciated tenant services cntract is ending. $116 thusand increase under a City f Prtland Cntract at Bud Clark Cmmns Supprt. A $102 thusand increase in Other Revenue is attributable t changes acrss multiple prperties. The tw prperties with the largest changes are: Gladstne and Multnmah Manr Resident Services with an increase f $21 thusand in Resident Services Prgram Fees frm Tax Credits, and Humbldt Garden Supprt with an increase f $62 thusand in Resident Services Prgram Fees frm Tax Credits. Operating Expenses decrease $12 thusand frm FY 17 budget. Tenant Services Persnnel Expense decreases $116 thusand, primarily due t a $125 thusand decrease in SCC Supplemental. Other Tenant Services Expenses decrease $35 thusand. Due in part t a $206 thusand decrease in in Cntract Tenant Services fr Yuth Activities. The end f this cntract cincides with the end f the Multnmah Cunty grant mentined abve. This decrease is partially ffset by a $100 thusand increase in Cntract Tenant Services at Bud Clark Cmmns Supprt. Prgram Expenses increase $131 thusand due in large part t a $117 thusand increase in Prgram Persnnel Expenses attributable t budgeted wage and benefit increases and the transfer f ne full-time staff persn frm the Administrative Services grup. Hme Frward 42

45 Operating Lss Befre Overhead increased $149 thusand due t the transfer f staff and ther budgeted increases t staff cmpensatin and benefits fr agency funded staff. Allcated Overhead in Resident Services increases $912 thusand due t a change in verhead allcatin methdlgy. Cause f Changes in Funding Flw Departmental Reserve Transfer increased $403 thusand primarily driven by the change in verhead methdlgy. The Resident services Department needs $658 thusand t fully fund all planned peratins. Hme Frward 43

46 Cmmentary Administratin Summary Data FY 17 FY 18 Inc.(Dec.) Operating Revenue $505,534 $581,812 $76,279 Operating Expense 7,319,511 7,597, ,468 Operating Incme Befre OH (6,813,977) (7,015,775) (201,799) Allcated Overhead (6,497,894) (6,670,095) (272,200) Operating Incme After OH (316,082) (245,680) 70,402 Funding Flw Activity 316, ,680 (70,402) Funding Required r (Cntributed) fr Current Agency Activities $- $- $- Ttal ed FTE The Administratin grup prvides management and administrative supprt t Hme Frward s perating departments. In additin, the Administratin grup researches, develps new prgram pprtunities, and manages agency level initiatives t further the Agency s missin. Key Assumptins Staffing increase f 1.2 FTE primarily due t: Increases: Adding a Facilities and Safety Supervisr (0.6 FTE) t handle the prperty versight f the New Market West ffice building Adding a RAD Prject Accuntant (1.0 FTE) (t be funded by reserves) Transfers: The reassignment f a Prgram Directr t Resident Services (1.0 FTE) Other miscellaneus changes (0.6 FTE) Majr Prgrams/Initiatives/Activities and Estimated Impact Neighbr t Neighbr Initiative $31 thusand Each year Hme Frward prvides residents in ur apartment cmmunities with an pprtunity t apply fr small cmmunity engagement grants addressing issues and interests specific t their cmmunity. Past prject activities have included wellness, nutritin, gardening, crafts, scial events and mre. Prgrams are ften supprted by Cmmunity Partner cntributins and resident vlunteer time, enabling cmmunities t leverage these small dllar awards t accmplish big things. Resident Legal Services and Expungement Partnership - $75 thusand Hme Frward 44

47 Wrking with cmmunity partner Metrplitan Public Defender, this initiative helps Hme Frward residents meet nging bligatins t the curts, request criminal recrd expungements and prvide ther legal and cnsulting services. Cause f Year Over Year Change fr Majr Revenue/Expense Fluctuatins Operating Revenue, primarily rent charged t the perating grups fr New Market West (NMW), increases $76 thusand due t increased maintenance and debt service csts. Operating Expenses increase $332 thusand frm the FY 17. Persnnel csts increased $228 thusand due t a net increase f 1.2 FTE cmbined with planned cmpensatin increases and a higher PERS liability. Sftware increases f $113 thusand due t higher licensing fees (YARDI and Micrsft) and the additin f Business t Business Nw ($20 thusand). Telephne and cmmunicatin increases f $11 thusand. Resident Legal Services and Expungement partnership increased $21 thusand. Training increased $60 thusand due t prgramming including Trauma Infrmed Care, Equity/Diversity Training Cuncil Large Public Husing Agencies (CLPHA), MTW cnferences and ther rganizatinal training. Decreases f $78 thusand fr less extensive maintenance needs at New Market West and a $58 thusand decrease fr insurance csts at the administrative level ffset these increased csts. Cause f Changes in Funding Flw Overhead increased $168 thusand due t rising labr csts and ther csts referenced in the Operating Expenses sectin. Draws frm Reserves increase $25 thusand primarily due t an increase f the Resident Legal Services initiative. Hme Frward will utilize $378 thusand in HUD Held Reserves t finance: $31 thusand in Neighbr t Neighbr Initiative; $78 thusand in Resident Legal Services and Expungement; and $172 thusand in Mving t Wrk Initiative persnnel and indirect csts. Hme Frward 45

48 Cmmentary Real Estate Finance Summary Data FY 17 FY 18 Inc.(Dec.) Operating Revenue $511,868 $564,313 $52,445 Operating Expense 152,638 95,095 (57,543) Operating Incme Befre OH 359, , ,988 Allcated Overhead Operating Incme After OH 359, , ,170 Departmental Reserve Transfer Funding Required r (Cntributed) fr Current Agency Activities $(820,668) $(1,032,826) $(212,158) Ttal ed FTE The Real Estate Finance grup captures the financing activity fr Hme Frward. It allws fr greater transparency by islating the perating and financing activities f the agency. Key Changes West and the Wds Limited Partnerships. Land lease revenue increases $163 thusand in FY 18 cmpared t FY 17. Cell twer revenue decreases $55 thusand in FY 18 cmpared t FY 17. Stephens Creek Crssing Site Imprvements. Hme Frward wned site imprvents at Stephens Creek Crssing will generate $88 thusand f depreciatin expense in FY 18. These are nn-cash expenses. Hme Frward 46

49 Attachments Summary f Mving t Wrk Initiative Funds Initative Descriptin First Year FY 17 FY 18 Actin fr Prsperity Ecnmic Opprtunity Prgram Earl Byles Husing Partnership STRA Funding (sub-prgrams Oxfrd and Alder) Vucher Success Fund Expungement Partnership Families Frward-Ecnmic Opprtunity In cllabratin with cmmunity partners, transitin participants int emplyment within tw years by prviding access t stable husing, case management, and pririty access t wrkfrce services. Hme Frward will prvide supprt alng with Wrksurce and Human Slutins t prvide assistance t unstably hused r hmeless husehlds wh are successfully engaged in Wrksurce training r emplyment prgrams. Hme Frward will prvide shrt t medium-term rent assistance and leverage schl supprt at Earl Byles Schl with the gal f imprved academic utcmes and husing stability. In cllabratin with cmmunity partners, prvide limited husing assistance t eligible husehlds in Multnmah Cunty wh are at risk f evictin, are newly hmeless, r are experiencing immediate crises in their husing. In partnership with the Prtland Husing Bureau, Hme Frward intends t use this prgram t increase HCV success rates. This will be accmplished by assisting participants directly with husing search and placement as well as by prcuring a Cmprehensive Ecnmic Study t establish Fair Market Rents that mre accurately reflect lcal market cnditins. Wrking with cmmunity partner Metrplitan Public Defender t supprt Hme Frward residents with the fllwing: criminal recrd expungements; cnsultatin t meet nging bligatins t the curts; recurring events in the cmmunity t prvide drp in expungement and cnsultatin services. Mved t new initiative Barrier Reductin and Opprtunities Wrk with cmmunity partners t extend ecnmic advancement pprtunities t the husehlds we serve. FY 12 $280,926 $10,445 FY , ,144 FY , ,954 FY , ,162 FY , ,787 FY 17 52,500 74,999 FY 11 26,250 - Hme Frward 47

50 Initative Descriptin First Year FY 17 FY 18 Shrt-Term Respite Care Wrksystems Liaisn Barrier Reductin and Opprtunities Neighbr 2 Neighbr Lcal Blended Subsidy (LBS) VASH Security Depsit Mved t new initiative Barrier Reductin and Opprtunities Funding fr shrt-term respite care fr residents adversely impacted by cmmunity vilence. Funds an agreement with Wrksystems fr residents in pursuit f ecnmic advancement prducts. Cmbines initiatives t prmte asset building, shrt-term respite care fr resident impacted by cmmunity vilence and assists elderly and disable ppulatin age-in-place by maintain their quality f life. A grant prgram fr resident grups frm ur public r affrdable husing cmmunities. Resident grups submit applicatins fr grant funds t imprve their cmmunity livability and reinfrce cmmunity values. LBS uses a blend f MTW Sectin 8 and public husing perating funds t subsidize rental units. Leveraging subsidy allws fr a mre adequate revenue stream and increases the number f husehlds that can be served. Funds will pay fr the LBS implementatin csts. Initiative addresses a serius barrier t successful use f VASH vuchers by prviding security depsits fr hmeless veterans leasing units requiring depsits. FY 17 3,150 - FY 17 47,250 47,250 FY 12 21,000 68,075 FY 12 23,100 31,500 FY 12 1,302,227 1,611,287 FY 12 38,297 28,617 VASH Prgram Backfill Addresses the shrtfall in funding fr the VASH prgram FY 16 96,899 - Landlrd Incentive Fund Dmestic Vilence Transfer Funds Gladstne Agency Based Assistance Attract new landlrds and units in lw pverty areas t the Husing Chice Vucher prgram. Eligible units must be lcated in zip cdes cnsidered lw-pverty areas and nt have had a Husing Chice Vucher tenant in the prir 24 mnths. In cllabratin with ther MTW-authrized husing authrities and the lcal dmestic vilence service system, Implement an inter-jurisdictinal transfer prgram t assist participants wh are victims f dmestic vilence relcate t cities utside Multnmah Cunty. Hme Frward will prvide up t $2,000 in relcatin assistance fr up t five husehlds per year. Prgram t prvide additinal funding fr prject based vuchers at Gladstne Square. FY 13 32,550 34,650 FY 13 10,500 10,500 FY ,000 - Hme Frward 48

51 Initative Descriptin First Year FY 17 FY 18 Cmmunity Cllege Educatin Prgram Affrdable Husing Opprtunity Fund Alder Schl Oxfrd Family Unificatin Prgram Extensin OHI Tenant Educatin Pilt prgram t prvide husing assistance fr cmmunity cllege students experiencing hmelessness. Hme Frward will purchase land fr future develpment f Affrdable Husing. Hme Frward will prvide shrt t medium-term rent assistance and leverage schl supprt at Alder schl with the gal f imprved academic utcmes and husing stability. Leverages services dllars frm Multnmah Cunty t assist Oxfrd fster yuth. Fulfills public cmmitment t extend vuchers fcused n reuniting yuth with the families. Opprtunity Husing Initiative prgrams t explre different appraches t help families achieve ecnmic independence. A prgram designed t help ur tenants better understand the rental prcess. FY ,500 - FY 17 2,400,000 - FY , ,350 FY 14 36,726 35,093 FY , ,915 FY 12 3,780 3,969 FY ,873 92,673 Ttal MTW Initatives $7,115,357 $4,183,371 Hme Frward 49

52 FY 18 Estimated Husehlds Served by Categry Categry Husehlds Served Percent Affrdable Husing 2,317 15% Affrdable Husing 85 Stries Tax Credits Special Needs 642 1, % 10% 3% Public Husing 1,276 8% Rent Assistance 10,913 70% Ttal 17,151 Rent Assistance Occupying Affrdable Husing / Tax Credit Units* (1,554) -10% Unduplicated Ttal 15, % *Rent Assistance Occupying Affrdable Units represents vucher hlders that live within ur Affrdable and Tax Credit prperties. The 1,554 represents residents already included in the Rent Assistance / Affrdable Husing / Tax Credit Prtflis. An adjustment is made t prvide an unduplicated ttal. Hme Frward 50