TIP 5: Consider resident service programs

Transcription

1 TIP 5: Consider resident service programs PHAs are not only property management & development companies, but are required to provide certain services to the residents 24 CFR Resident Participation Funding Add-on Spent in accordance with 24 CFR 964 Resident training centers Common areas Drug elimination activities Bus or van transportation options 41

2 TIP 6: Correct management deficiencies Constantly look for opportunities to improve efficiencies Deficiencies can be defined from audits (IPA, HUD, IG) as well as determined by the PHA Reduced funding levels mean we must consider: Review of organizational structure Review salary & benefits Training Software upgrade/change Hardware 42

3 TIP 7: Pay down OPEB & pension liability OPEB and Pension liabilities reduces your overall reserve levels, and the Operating Reserve calculation Net effect, will reduce your cash 43

4 TIP 8: Allow COCC to Charge Max. Fees Take advantage of Excess Cash transfers Per Excess Cash formula AMP Based Reports true costs of operating activities Project, Asset Bookkeeping/IT Fees, FFS Cash has more flexibility in the COCC Cash can be used for any housing need Reduces reserve levels at the AMPs Cash key component Operating Reserve Calculation 44

5 TIP 9: Prepare Timely Budget & Budget Revisions Allows PHA to provide realistic estimates of operating costs as well as capital requirements Maximization & utilization of funding sources Obligate reserves 45

6 TIP 10: Exclude Non-Federal Funds From AMPs Several Mixed Finance Developments Other State & Local funding sources Fee Income 46

7 TIP 11: Protect The COCC reserves Create an Instrumentality There is only regulatory guidance to suggest that fees earned by the COCC are nonfederal Permitted in OMB A87 Section A(2)(b) of Attachment A 47

8 TIP 12: Pre-2004 HCV Admin Fee reserves Pre-2004 Admin Fee Reserves COCC Instrumentality 48

9 Bakers dozen: improve management of capital fund CFP items to consider BLI Operations BLI 1408 Mgmt. Improvements BLI Administration BLI 1411 Audit Let s discuss options 49

10 Pre-2004 Admin Fees Pre-2004 Administrative Fee Funds If funds in the administrative fee reserve are not needed to cover PHA administrative expenses (to the end of the last expiring funding increment under the consolidated ACC), the PHA may use these funds for other housing purposes permitted by State and local law. However, HUD may prohibit use of the funds for certain purposes. PIH Notice

11 TIP 13: What have we learned? Refer to PIH Notice PHAs with 250 or more LIPH units, minimum amount of reserves was 4 months PHAs with less then 250 units, minimum reserves was 6 months Calculation was at the AMP combined level Offset of subsidy was allocated per unit basis over the AMPs 51

12 TIP 13: What Have We Learned HUD established a process by which PHAs could apply to exclude the initial allocation amounts HUD considered adjustments based on: Other- FASB 5, self-insurance, repayment of ineligible costs Commitments/Obligations FDS Reporting errors 52

13 HCV Reserves How do we calculate? How much is at risk? 53

14 PHA s role in the HCV program Funds come from the Federal Government The PHA acts as a middle man Most of these funds pass through the PHA and go on to Section 8 Program landlords HUD PHA HAP Admin Landlord 54

15 Section 8 Program funding overview S8 funding to the PHA is broken into two portions, which must be carefully and separately monitored: Housing Assistance Payment (HAP) Administrative Fee (Admin Fee) HAP PHA funds Admin fees 55

16 Restricted & Unrestricted The majority of the HCV program money passes through the PHA as HAP It has a specific use This money is Restricted Some of the money we receive from HUD stays at the PHA We may spend this money, for day-to-day operations These are our Admin Fees This money is Unrestricted 56

17 Unrestricted Monies Administrative Fees 57

18 Unrestricted Net Position UNP (formerly UNA) can also be referred to as Administrative Fee Reserves Funds are to be used for the day-to day operations of the HCV program These funds do not have a contractual restriction on their use Administrative Fees FSS Coordinator Grant Unrestricted Interest Income ½ of Fraud Recovery Portable Income 58

19 Cash Management & Programs Reserves HUD-held HAP funding (on behalf of the PHA) 59

20 Financial Basics: Annual Budget Authority The amount of formuladriven HAP that a PHA is entitled to each Calendar Year is called the Annual Budget Authority (ABA) PHAs used to be funded so they could lease up to their baseline number of units This is no longer necessarily the case 60

21 Budget Authority An amount authorized and appropriated by the Congress for payment to PHAs under the HCV program For each funding increment in the program, budget authority is the maximum amount that may be paid by HUD to the PHA over the ACC term of the funding increment 61

22 Program Reserves (HUD Held Reserves) The process of disbursing only the funds required for current HAP costs will result in the establishment of HUD-held program reserves HAP funds will remain obligated but undisbursed at the HUD level rather than held by the PHAs 62

23 Program Reserves The remaining ABA that is not provided to the PHA is considered HUDheld reserves or Program Reserves These reserves are rolled forward to the next year and can be used to fund HAP in the following year 63

24 How do we determine funding for HAP? 1. Appropriation calculation for the calendar year 2. Net Restricted Position (NRP) 3. Program Reserves 4. Set-Aside Funds 5. UNP** **UNP is available, but is generally not used to pay HAP 64

25 1. Appropriations ABA 65

26 Appropriations calculation for calendar year 66

27 Appropriation calculation HUD used VMS data from January to December of the prior calendar year Capping percentage HUD will make adjustments for the first-time renewal of certain vouchers These include tenant protection vouchers and special purpose vouchers such as Veterans Affairs Supportive Housing (VASH) vouchers First time increments not initially funded for twelve months will receive the additional funding required, as identified on the funding enclosures of the affected PHAs 67

28 Appropriation calculation HUD will apply an inflation factor 2016 s inflation factor was 1.00 (Or no inflation) In 2016 HUD prorated HAP funding at approximately 99.6% 68

29 Sample renewal funding attachment Enclosure A Calculation of Calendar Year 2016 Renewal Funding Housing Choice Voucher Program 1 HA Number: PA001 2 HA Name: TERRAPIN HA CY 2016 Renewal Funding CY 2016 HCV Renewal Funding (from line 15 below) $9,784,815 CY 2016 Non-Renewal Funding CY 2016 Non-Renewal Funding (TPVs, VASH, etc.) to Date $49,846 CY 2016 Estimated RAD 1 Funding (see Comment) $0 Total CY 2016 HCV Renewal and Non-Renewal Funding $9,834,661 ELIGIBILITY 3 Total Unit Months Leased per VMS - CY ,194 4 Total Unit Months Available - CY ,176 5 Capping Percentage (see Notes) % 6 Total CY 2015 HAP Expenses per VMS $9,679,940 7 Total CY 2015 Capped HAP Expenses (Line 5 x Line 6) $9,679,940 8 Renewal Funding Inflation Factor Inflated Eligibility Sub-Total (Line 7 x Line 8) $9,825, First Time Renewals $ Transfers In or Out $0 12 Total DHAP Eligibility $0 13 Total Renewal Eligibility (Line 9 + Line 10 + Line 11 + Line 12) $9,825, Proration Factor Prorated Eligibility (Line 13 x Line 14) $9,784,815 69

30 2. Net Restricted Position Us-held reserves 70

31 Equity AKA Net Position Net Restricted Position (NRP) is formally Net Restricted Assets (NRA) Unrestricted Net Position (UNP) is formally Unrestricted Net Assets (UNA) GASB 63 71

32 Net Restricted Position Net Restricted Position (NRP) typically consist of excess HAP funding since January 1, 2005 that the PHA has accumulated in PHA-held reserves that has not been recaptured though funding offsets It includes: FSS Escrow Forfeitures Typically ½ of Fraud Recovery And, as previously mentioned, excess HAP funding received Amounts should be minimal since the implementation of Cash Management in CY

33 Types of HAP That Could be Included in NRP Number Type Number Type 1 Hope VI 7 Temporary Housing Unit 2 Family Unification 8 1 Yr. Mainstream 3 Litigation 9 Non-Elderly Disabled 4 Homeownership 10 5 Yr. Mainstream** 5 Tenant Protection / Enhanced 6 VASH 11 All Other Vouchers ** New for 2015 Any vouchers transferred into your PHA from another PHA will be built into your funding at the HAP costs incurred at the prior PHA 73

34 3. Program reserves HUD-held reserves 74

35 HCV Cash Management Procedures Since CY 2005, PHAs have been accumulating NRP to pay for future HAP costs This amount has exceeded $1.5B in FY brought two new changes: 1. HUD will also instituted the new Cash Management procedures outlined in PIH Notice Established Program Reserves 75

36 Cash Management & Program Reserves The process of disbursing only the funds required for current HAP costs will result in the re-establishment of HUD-held program reserves, whereby excess HAP funds will remain obligated but undisbursed at the HUD level rather than held by the PHAs New BA will be moved into the program reserves if it is not needed for current costs 76

37 Cash Management Procedures Monthly HAP funding will be based on the higher of Calculated need based on VMS expenses from the most recently validated month or Available funds (monthly renewal obligation plus Program Reserves) 77

38 Disbursement Procedures Chart assumes beginning Program Reserve balance of $0. HAP Date Received VMS Reporting Period ABA $ 4,000,000 1/1/2016 $ 300,000 October VMS ,700,000 2/1/ ,000 November VMS ,400,000 3/1/ ,000 December VMS ,100,000 4/1/ ,000 January VMS ,775,000 5/1/ ,000 February VMS ,450,000 6/1/ ,000 March VMS ,125,000 7/1/ ,000 April VMS ,795,000 8/1/ ,000 May VMS ,465,000 9/1/ ,000 June VMS ,135,000 10/1/ ,000 July VMS ,000 11/1/ ,000 August VMS ,000 12/1/ ,000 September VMS 2016 $ 130,000 $ 3,870,000 *Program Reserves for CY

39 Program Reserves Just because your PHA is not receiving funding from HUD doesn t mean that your PHA doesn t have funds in Program Reserves or Annual Budget Authority (ABA) You must track your ABA and Program Reserves monthly to ensure you are receiving the proper funding to administer your program! 79

40 Program Reserves & Net Restricted Position Any Program Reserves and NRP that are rolled forward to the next year can be subject to an offset for funding Use them or lose them!! HUD will combine your NRP and Program Reserves at calendar year-end to determine your total reserves and use that number to determine a possible offset of funding 80

41 Questions? Thank you for your time 81