Fiscal Year 2018 ending Budget. April 1, 2018 through December 31, 2018

Transcription

1 Fiscal Year 2018 ending Budget April 1, 2018 thrugh December 31, 2018 Original Submissin: March 20, 2018

2 Table f Cntents Management Discussin 1 Operating Statement & Summary f Funding Flw 8 Line Item Analysis & Assumptins 10 Operating and Administrative Segment Review 14 Operating Statement by Operating Grup Funding Flw Analysis By Operating Grup Staffing Summary by Operating Grup Budget Cmmentary Rent Assistance Budget Cmmentary Public Husing Prtfli Budget Cmmentary Affrdable Husing Prtfli Budget Cmmentary Asset Management Budget Cmmentary Prperty Management Budget Cmmentary Safety Budget Cmmentary Integrated Facilities Services Budget Cmmentary Develpment & Cmmunity Revitalizatin Budget Cmmentary Cmmunity Services Budget Cmmentary Administratin Budget Cmmentary Real Estate Finance Attachments 43 Summary f Mving t Wrk Initiative Funds Estimated Husehlds Served by Categry 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 Operating Statement by Operating Grup Funding Flw Analysis By Operating Grup... 54

3 Management Discussin This dcument presents the planned activities and financial budget fr Hme Frward fr the nine mnth perid beginning April 1, 2018 and ending December 31, 2018 (FY ). Hme Frward is mving t a calendar year fiscal year with the first full year taking place in 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) as a municipal crpratin under the Oregn Revised Statutes in December Hme Frward is gverned by a nine-member Bard f Cmmissiners; fur appintments are recmmended by the City f Prtland, tw by the City f Gresham and tw by Multnmah Cunty. 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 Operating & Capital funds int a single fund. This enables Hme Frward t create and implement innvative prgrams acrss its fur main missin-based business lines. The missin-based business lines are: Develpment includes wrk n large scale develpment prjects such as 85 Stries, part f Hme Frward s public husing preservatin initiative, and imprvement f ur existing prperties thrugh the use f Capital Grants, lcal grants and mainstream financing prducts. Revenue fr this grup is generated frm develper fees; fees which may be earned in ne reprting perid but paid in a different perid. Real Estate Prperties Hme Frward wns, manages, r is a partner in 109 prperties with ver 6,400 units. (Of these ttals, 16 prperties with 2,145 units are wned thrugh tax credit partnerships f which Hme Frward is the minrity wner. The frecasted and budgeted results f these 16 prperties are nt included in this dcument.) Fr public husing, 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. Fr affrdable husing prperties, revenue is mainly generated by tenant rents and impacted by ccupancy levels and cntractually allwed affrdable rental rates based n unit size. Real Estate Services Real Estate Services includes Asset Management, Prperty Management and Integrated Facilities Services fr ur affrdable, master-leased, and public husing prperties. Hme Frward 1

4 As part f Hme Frward s strategic plan, the Asset Management grup nw prvides lng-term planning services t all f Hme Frward s real estate prtfli. Asset Management generates fee incme as well as uses cash flw generated frm the real estate prtfli. Hme Frward s Prperty Management grup is respnsible fr verseeing the daily peratins, cmpliance and maintenance at 42 prperties. These 42 prperties prvide husing fr 2,383 husehlds. The grup generates prperty management fees t cver its csts. Integrated Facilities Services is Hme Frward s specialized maintenance services including electrical wrk, plumbing, pest cntrl, painting, and garbage, trash and recycling hauling. Fees are earned based n billable services t Hme Frward s real estate prtfli. Rent Assistance 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 mediumterm rent assistance and rent assistance cmbined with partner services. Hme Frward prvides rent assistance t ver 10,000 husehlds n an annual basis. This year, Hme Frward will add 791 in Rental Assistance Demnstratin (RAD) Vuchers. This is a result f the first phase f RAD subsidy cnversin frm Public Husing Operating Subsidy and Capital Grant funding t Prject-Based Vuchers. 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. Cmmunity 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 and prperty fees. Budget 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. 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. Als, any remaining funds will be assigned t reserves fr specific purpses r t general reserves t address funding vlatility. 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. Hme Frward 2

5 Revenues fr the Husing Chice Vucher Prgram and administratin, Public Husing Operating Subsidy and Public Husing Capital Grant are budgeted based n estimated calculatins f rates and prratins as determined frm the January 2018 actual funding. With the federal gvernment perating n a cntinuing reslutin, ur actual funding was the best indicatr f future funding. Funds using MTW flexibility 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. Budget 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 (Please nte: numbers may differ slightly frm surce dcuments due t runding) Key activities planned fr FY include: The Rent Assistance department plans t have utilizatin at 92%. Actual utilizatin rates have fallen belw planned levels due t lease up challenges resulting frm Prtland s tight rental market and rising vucher csts. Unfrtunately, federal funding has nt been adequate t meet these husing csts. As a result, Hme Frward has stpped pulling frm the vucher waitlist and des nt anticipate being able t pull frm the waitlist during this fiscal year. Additinally, Hme Frward will receive 791 units f RAD Vucher funding as part f the cnversin frm public husing t a vucher funding stream. Develpment will prvide develpment services t Llyd Husing LP and the Framewrk prject. Develpment is prjected t earn $5.4 millin in develper fee fr the Llyd and Framewrk prjects. Public Husing will serve 1,284 husehlds in 33 public husing prperties given the expected ccupancy rate f 98%. Prperties in Hme Frward s Affrdable Husing Prtfli will serve 4,217 husehlds given the expected average ccupancy rate f 98%. Hme Frward-wned affrdable prperties are expected t serve 2,434 husehlds, tax credit limited partnerships will serve 2,102 husehlds, and special needs prperties will serve 505 husehlds. Fr this fiscal year, Funtain Place (an 80 unit apartment building) will cnvert frm a tax credit limited partnership t being fully wned by Hme Frward. In supprt f the emerging One strategic plan, Cmmunity Services will begin t lk at trauma, healing and equity as integral cmpnents fr meaningful engagement and service delivery, with the gal f extending services and supprt t a greater number f Hme Frward recipients. Financial highlights f the upcming budget include: Hme Frward 3

6 Annual perating revenues are prjected t be $118.1 millin. This is mainly due t: $5.4 millin in develper fee revenue frm Llyd Husing ($3.8 millin), Framewrk ($1.6 millin). Public Husing Operating Subsidy revenue f $6.0 millin which reflects reduced funding due t phase 1 f the RAD cnversin f 791 units t Prject-Based Vucher Subsidy. HUD funding fr Husing Chice Vuchers is prjected t increase due t the RAD cnversin ($2.4 millin). Admin fee will increase $402 thusand due t additinal funding received fr the RAD Vuchers. Annual perating expenses is prjected t be f $116.9 millin. This is mainly due t: The Rent Assistance department prjects the utilizatin rate t be 94.2%. Actual utilizatin rates have fallen belw planned levels due t lease up challenges resulting frm Prtland s tight rental market and the lack f federal funds t cver rising husing csts. Overall persnnel expenses will be $9.5 millin fr the upcming budget year. Other administrative expenses will be $6.4 millin primarily due t investment in Hme Frward s infrmatin technlgy infrastructure f $321 thusand alng with $142 thusand in cnsultant expenses related t the YARDI upgrade, prperty management fees f $789 thusand, and csts assciated with legal services f $197 thusand. Other Tenant Services expense will be $1.4 millin primarily due t $634 thusand related t CHSP and $202 thusand fr supprt services at Bud Clark Cmmns. Other maintenance expenses will be $6.0 millin primarily due t majr maintenance prjects at multiple affrdable prperties in FY Of the $116.9 millin f perating expenses, $73.8 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 $43.1 millin. Based n the impact f items abve, perating incme is prjected t be $1.2 millin. The cmbined impact yields an $1.1 millin decrease in changes t net assets. Impact n Funding Flw As nted in the Budget Principles sectin, the agency presents its budget in nt nly a GAAP presentatin but als in a funding flw frmat. The standard expectatin f the funding flw is that Hme Frward prgrams (excluding develpment) will break even fr the fiscal year, and that develpment activities will (at a minimum) break even ver the curse f the life f its varius prjects. Hme Frward 4

7 A funding flw summary presented by perating grup is presented belw: 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. Reserve transfers in t fund current activities reflect the inflw f reserve funds t cver current year expenses. This activity translates t a reductin f agency reserves. Additins t reserves reflect the transfer f remaining perating incme int reserve accunts. Please nte, the bracketed number in this clumn des nt represent an utflw f agency cash but rather an increase t agency reserves. Net reserves are dedicated t the fllwing identified purpses: $5.4 millin f cllected develpment fee revenue is transferred t reserves and used t cver department peratins and fund prject csts that span multiple fiscal years. As part f a ten year plan t ensure adequate reserve levels fr Hme Frward, $375 thusand will be directed t an insurance reserve and $225 thusand fr an agency-level capital reserve. Using single fund flexibility, $1.6 millin will be drawn frm Hme Frward-held reserves t fund MIF initiatives. $93 thusand will be cntributed t Agency Initiatives as a result f the cash flw f the perating grups. $435 thusand will be available frm business line-level reserves t address funding vlatility. Hme Frward 5

8 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 several tax credit partnerships. The breakut by funding surce and the change in budgeted full-time equivalents (FTEs) is: Full-Time Equivalents (FTEs) by Funding Surce FY 18 FY Budget Inc.(Dec.) Agency Funded Other Legal Entity Funded Ttal Agency Managed Psitins In ttal, full-time equivalent emplyees have increased by 1.3 FTE due t psitins related t RAD. 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 the passage f several cntinuing reslutins, the latest f which expires March 23, 2018, and a lack f detailed infrmatin frm the Cngressinal Apprpriatins bill, we have had t develp a budget with estimates fr 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 reductin f crprate taxes, interest in the federal Lw Incme Husing Tax Credit (LIHTC) is likely t decline. The reductin in the crprate tax rate frm 35 percent t 21 percent reduces the tax lss benefits f LIHTC investments, which causes 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 r 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, an increase frm last year s deficit stemming frm the changes t federal tax law. 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. Hme Frward 6

9 Cnclusin Hme Frward s FY budget was develped with the cntext that ur cmmunity cntinues experiencing a majr shrtage in husing that is affrdable. Our dedicated staff cntinue t align much needed services t supprt ur families, but we depend n receiving apprpriate levels f federal funding t match the reality f husing csts. Absent a renewed cmmitment frm ur federal partners, we will struggle with, but never give up n achieving ur missin - t assure that the peple f the cmmunity are sheltered. Hme Frward 7

10 Operating Statement & Summary f Funding Flw Operating Statement Operating Statement FY Budget Dwelling Rental 14,313,791 Nn-dwelling Rental 1,909,046 HUD Subsidies -Husing Assistance 67,815,576 HUD Subsidies -Admin Fee 5,298,156 HUD Subsidies -Public Husing 5,968,996 HUD Grants 4,932,979 Develpment Fee Revenue, Net 5,335,331 State, Lcal & Other Grants 5,062,420 Other Revenue 7,460,561 Ttal IA Revenue - Ttal Operating Revenues 118,096,857 PH Subsidy Transfer - Husing Assistance Payments 73,750,733 Administratin 11,762,355 Administrative Persnnel Expense 5,410,149 Other Admin Expenses 6,352,206 Fees/verhead charged (3) Tenant Services 3,085,516 Tenant Svcs Persnnel Expense 1,677,313 Other Tenant Svcs Expenses 1,408,203 Prgram Expense 7,984,996 Maintenance 8,445,409 Maintenance Persnnel Expense 2,447,074 Other Maintenance Expenses 5,998,335 Utilities 3,816,437 Ttal IA Expense (88,763) Depreciatin 6,555,420 General 1,591,741 Impairment Charge - Ttal Operating Expenses 116,903,841 Operating Incme (Lss) 1,193,015 Ttal Overhead Allcatins (0) Operating Incme (Lss) after Overhead 1,193,016 Investment Incme 495,538 Interest Expense (2,176,285) Gain (Lss) n Sale f Assets (1,114,845) Net Other Incme (Expense) (2,795,593) HUD Nnperating Cntributins 535,604 Net Capital Cntributins 535,604 Change in Net Psitin (1,066,974) Hme Frward 8

11 Funding Flw Analysis Funding Flw Analysis FY Budget Funding Flw Analysis $ 1,193,016 Funding Flw Adjustments (1,193,015) Final Funding Surce r (Shrtfall) $ 0 Hme Frward 9

12 Line Item Analysis & Assumptins Revenue Dwelling Rental $19.1 millin Affrdable Husing Prtfli - $16.4 millin due t prperty transitins ($1.7 millin), high ccupancy rates and rate increases (capped at 5%) except fr Prject-Based Vuchers (n increase). Public Husing Prtfli - $2.7 millin - will cntinue t benefit frm the cntinuing impact f rent refrm and the implementatin f minimum rents. Nn-dwelling Rental $2.0 millin Nn-dwelling rental includes cmmercial rents, payments received frm special needs master-leased prperties, land lease revenue, cell twer revenues, and parking revenue. HUD Subsidies - Husing Assistance $66 millin HUD s Husing Chice Vucher prratin is budgeted t at 97.1%, the current effective rate as f January RAD Funding will be $2.8 millin fr the 791 cnverted vuchers. HUD Subsidies - Administrative Fees $5.3 millin Administrative Fee funding will benefit frm the RAD cnversin f 791 units, resulting in $400 thusand in funding fr the budget year. Administrative fees fr HUD Husing Assistance are budgeted based n funding apprpriatins and assume flat rate fr CY HUD Subsidies - Public Husing $6.0 millin Budget assumes that Operating Subsidy s prratin will be 85% the next budget year. The Operating Subsidy will be $2.8 millin less than previus fiscal year, as 791 units have cnverted t RAD Prject-Based Vucher funding. Develpment Fee Revenue $5.4 millin Prjected fr the fllwing Prjects: Prject (in millins) Accrued Develper Fee Revenue Llyd Husing LP $3.8 Framewrk Prject 1.6 Ttal $5.4 Hme Frward 10

13 HUD, State, Lcal & Other Grants $5 millin Grant (in thusands) FY Budget Shrt-Term Rent Assistance State f Oregn $590 Hmeless Family System f Care 3,688 United Way 48 PILOT Revenue 119 Shrt-Term Rent Assistance Ttal $4,445 Medicaid 321 City f Prtland Bud Clark 297 Ttal $5,062 Other Revenue $7.3 millin Other Revenue (in thusands) FY Budget Prtability Revenue $3,695 Prperty Related Incme Management & General Partner Fees 644 Prperty Related Incme Operatins 578 Prperty Related Incme Cmmunity Services 555 West & Wds Cntributins 392 Integrated Facilities Services Fees 1,399 Other 10 Ttal $7,273 Expense Persnnel Expense $17.3 millin Ttal Full-time Equivalents (FTE) fr agency funded psitins in are budgeted t be FTE. An additinal 36.3 FTE are funded directly frm tax credit limited partnerships. Cmbined FTE are FTE, a 1.3 FTE increase frm the FY 18 Budget. Hme Frward 11

14 Persnnel Expense (in thusands) FY Budget Administrative Persnnel Expense $5.4 Cmmunity Services Persnnel Expense 1.7 Prgram Expense 7.7 Maintenance Persnnel Expense 2.4 Ttal Persnnel Expense $17.3 Planned cmpensatin increases and higher PERS expense are factred int the abve data. Other Administrative Expense $6.4 millin Affrdable Husing Prtfli is prjected t have the fllwing expenses Outside Payrll $1.4 millin Management fees $740 thusand Public Husing is prjected t incur $2.1 millin in Prperty Management fees. Administrative grups $1.9 millin due t $610 thusand in sftware and licensing fees, $142 thusand fr the YARDI upgrade and $277 thusand fr cnsultant prjects related t the YARDI upgrade and ther agency prjects. Other Tenant Services Expenses $1.4 millin Tenant Services Expense is prjected t include $1.1 millin in cntracted resident services. Other Maintenance Expenses $6.5 millin $1.6 millin in prjects at public husing prperties $4.3 millin in prjects at affrdable husing prperties $224 thusand in prjects at master-leased prperties $173 thusand in prjects at New Market West Utilities $4.1 millin Sewer rates are rising while rates cntinue t decrease fr gas and fuel. Ttal Inter Agency (IA) Expense ($89 thusand) 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. Hme Frward 12

15 Depreciatin $6.5 millin Depreciatin represents the nn-cash write-dwn f the prperties physical assets. Depreciatin expense decreases $319 thusand in the Affrdable Husing Prtfli primarily due t treatment f tax credit cnversins. General $1.6 millin Bad Debt Expense is prjected t be $296 thusand based n histrical debt. General insurance expenses will again increase due t rising premium rates and is prjected t be $835 thusand. Net Other Incme (Expense) Investment Incme $496 thusand Investment Incme is prjected t increase based upn higher interest rates. Interest Expense ($2.3 millin) is primarily due t prperty transitins ($330 thusand, Fairview $300 thusand, Lvejy $259 thusand). Gain (Lss) n Sale f Assets $1.1 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 the next budget Fairview Oaks ($758 thusand) and Richmnd Place ($242 thusand) are expected t experience write-ffs frm renvatins. Hme Frward 13

16 Operating and Administrative Segment Review FY Operating Statement by Operating Grup* Hme Rent Public Husing Affrdable Asset Prperty Integrated Cmmunity Real Estate Frward Operating Statement Assistance Prtfli Prtfli Management Management Safety Facilities Develpment Services Administratin Finance Reserves Eliminatin Ttal Dwelling Rental $ - $ 2,653,821 $ 15,335,847 $ - $ - $ - $ - $ - $ - $ - $ - $ - $ (3,675,877) $ 14,313,791 Nn-dwelling Rental - 118,925 1,259, , , ,136 - (367,243) 1,909,046 HUD Subsidies -Husing Assistance 65,668,736-2,146, ,815,576 HUD Subsidies -Admin Fee 5,298, ,298,156 HUD Subsidies -Public Husing 43,084 5,686, , , ,968,996 HUD Grants 3,547, , , , ,932,979 Develpment Fee Revenue, Net ,335, ,335,331 State, Lcal & Other Grants 4,444, , ,062,420 Other Revenue 3,790,250 65, , ,934 3,060,885-1,404, , (2,379,872) 7,460,561 Ttal IA Revenue 88, ,785 15, , ,942 31, (716,618) - Ttal Operating Revenues 82,880,924 8,758,778 19,218, ,719 3,759,471-1,404,018 5,417,242 2,397, , ,136 - (7,139,610) 118,096,857 PH Subsidy Transfer Husing Assistance Payments 77,337, (3,587,114) 73,750,733 Administrative Persnnel Expense 252, , ,837 71,260 62, , ,431 4,262, ,410,149 Other Admin Expenses 506,880 2,536,319 3,212,529 75, ,495 8,250 28, , ,666 1,900,482 5,130 - (2,379,872) 6,352,206 Fees/verhead charged 285, ,322 4, ,582 - (3) - - (367,243) (3) Tenant Svcs Persnnel Expense 447, ,018 1,102, ,677,313 Other Tenant Svcs Expenses 91,973 40,672 21, ,209,883 44, ,408,203 Prgram Expense 3,645,783 1,021,231 73, , , ,204 1,237, ,234 63, ,984,996 Maintenance Persnnel Expense - 1,288,760 67, , , ,447,074 Other Maintenance Expenses - 1,641,730 4,001,375-77,448 11,000 88, , ,998,335 Utilities - 1,509,202 2,152, , , ,816,437 Ttal IA Expense 199, , , ,329 8, , ,893 (663,784) - - (805,382) (88,763) Depreciatin 1,026 2,047,868 4,170,361-4,878-3,816 90, ,104 66,204 - (37,530) 6,555,420 General 128, , , ,292-13,874-2,074 40, ,591,741 Ttal Operating Expenses 82,896,911 10,396,568 15,011,016 1,180,603 1,978,607 99,153 1,183,686 2,052,765 3,093,467 6,116,869 71,337 - (7,177,141) 116,903,841 Operating Incme (Lss) (15,988) (1,637,790) 4,207,185 (681,883) 1,780,864 (99,153) 220,332 3,364,477 (696,374) (5,717,984) 431,799-37,530 1,193,015 Ttal Overhead Allcatins 1,543,234-98, ,500 1,769,992 7, , , ,620 (5,667,640) (0) Operating Incme (Lss) after Overhead (1,559,222) (1,637,790) 4,108,742 (1,352,383) 10,872 (106,654) (2,066) 2,510,524 (1,197,994) (50,343) 431,799-37,530 1,193,016 Reserve Funding 1,677,131 - (693,750) - 32,850 (0) (20,763) 1,145, ,952 (283,152) (140,317) (2,103,014) - (0) Operating Incme (Lss) after Reserve Funding 117,909 (1,637,790) 3,414,992 (1,352,383) 43,722 (106,654) (22,829) 3,655,587 (812,042) (333,496) 291,482 (2,103,014) 37,530 1,193,015 Investment Incme , ,652 6, ,538 Interest Expense - - (2,007,304) (87,324) (81,657) - - (2,176,285) Gain (Lss) n Sale f Assets - (5,889) (1,108,956) (1,114,845) Net Other Incme (Expense) - (5,889) (2,984,026) ,328 (75,006) - - (2,795,593) HUD Nnperating Cntributins - 230, , ,604 Net Capital Cntributins - 230,061 1,550, ,000, ,794,543 (5,039,000) - 535,604 Other Equity Changes Change In Net Psitin $ 117,909 $ (1,413,618) $ 1,980,967 $ (1,352,383) $ 43,722 $ (106,654) $ (22,829) $ 5,655,587 $ (812,042) $ (64,168) $ 2,011,018 $ (7,142,014) $ 37,530 $ (1,066,974) *See Appendix fr larger versin f this table. Hme Frward 14

17 FY Funding Flw Analysis By Operating Grup* Hme Rent Public Husing Affrdable Asset Prperty Integrated Cmmunity Real Estate Frward Assistance Prtfli Prtfli Management Management Safety Facilities Develpment Services Administratin Finance Reserves Eliminatin Ttal Operating Incme (Lss) after Overhead $ (1,559,222) $ (1,637,790) $ 4,108,742 $ (1,352,383) $ 10,872 $ (106,654) $ (2,066) $ 2,510,524 $ (1,197,994) $ (50,343) $ 431,799 $ - $ 37,530 $ 1,193,016 Real Estate Prtfli Affrdable Husing Prperties Operating Activity - - (8,196,159) (8,196,159) Revenue frm Prperties t Hme Frward (449,934) (355,029) - (251,691) - - (1,056,654) Unrestricted Cash t HAP - - 2,295, , ,061-1,185, ,320,510 Net Replacement Reserve Activity (New Market West) (73,800) (73,800) Net Replacement Reserve Activity (Special Needs) - - (139,901) (139,901) Develper Fee - Impact t Funding Flw Develper Fee Revenue (5,335,331) (5,335,331) Develper Fee - Cash t HAP(Net) ,541, ,541,000 Financing/Investment Activity Investment Incme - Unrestricted Principal & Interest - Special Needs - - (85,833) (85,833) Principal & Interest - New Market West (124,911) (124,911) 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 1,026 2,047,868 4,079,171-4,878-3,816 90, ,104 66,204 - (37,530) 6,464,230 Operating Activity Funded by Cash Reserves MIF Initiative Reserve Activity MTW Special Initiates Fund 1,000, ,845 40, ,082,097 MTW - Lcal Blended Subsidy (LBS) 902, ,439 MTW Administratin Excess Sectin 8 - LBS (328,796) (328,796) Tax Credit Supprt Services , ,640 MTW Reserve Special Purpse Reserve Activity Inter Departmental Reserve Transfers Agency Initiatives - - (1,461,248) 1,368, , ,728 - (903,267) DCR Operating Reserve ,208, ,208,864 Affrdable Prtfli Reserve - - (225,000) (225,000) Insurance Reserve - - (375,000) (375,000) Funding Surce r (Shrtfall) (0) 410, (0) 528, ,412 Department Reserve Activity Public Husing Prtfli - (410,079) (410,079) Real Estate Finance (528,333) - - (528,333) Funding Required r (Cntributed) fr Current Agency Activities - (410,079) (528,333) - (0) (938,412) 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 15

18 FY Staffing Summary by Operating Grup Rent Public Husing Affrdable Asset Prperty Integrated Cmmunity Agency Limited Agency Assistance Prtfli Prtfli Management Management Safety Facilities Develpment Services Administratin Funded Partnerships Managed FY Budgeted FTE FY 2018 Budgeted FTE Changes 0.3 (4.3) (0.5) Hme Frward 16

19 Budget Cmmentary Rent Assistance Summary Budget Data FY Budget Operating Revenue $82,880,924 Operating Expense 82,896,911 Operating Incme Befre OH (15,988) Allcated Overhead 1,543,234 Operating Incme After OH (1,559,222) Funding Flw Activity 1,559,221 Funding Required r (Cntributed) fr Current Agency Activities $0 Ttal Budgeted FTE 68.7 Key Assumptins Husing Chice Vucher Assistance funding is $65.7 millin, $793 thusand fr FUP and $3.6 millin fr VASH. Due t a lack f a Cngressinal Apprpriatins Bill and Cntinuing Reslutins, the January 2018 HCV funding rate is reflected fr the full year. Husing Chice Vucher Husing Assistance Payments are $77.6 millin, $813 thusand fr FUP and $3.7 millin fr VASH. Prgram Cst/Expenses Ttal Vuchers Average Vucher Cst Ttal HAP Expense Tenant-Based 6,092 $ $38,415,106 Prject-Based 2, ,136,845 VASH ,699,337 FUP ,382 RAD 791 $ $2,779,375 Average vucher csts cntinue t rise but enacted plicies such as the Prject-Based Vucher rent increase freeze have significantly slwed the rate f increases as cmpared t previus years. Ttal Budgeted FTE fr the year remains flat. Majr Prgrams/Initiatives/Activities and Estimated Budget Impact Husing Chice Vuchers $69.4 millin: The Husing Chice Vucher (HCV) prgram is the federal gvernment's majr prgram fr assisting very lwincme families, senirs, and peple with disabilities t affrd decent, safe, and sanitary husing in the private Hme Frward 17

20 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 - $64.9 millin Hme Frward manages 8,418 Mving t Wrk Vuchers. Due t nging funding cnstraints, utilizatin f these vuchers fr FY is anticipated t be 92.1%. Veterans Affairs Supprtive Husing (VASH) Vuchers - $3.7 millin Hme Frward manages 591 VASH Vuchers in partnership with the Department f Veterans Affairs. Utilizatin f these vuchers fr FY is anticipated t be 97.1%. Family Unificatin Prgram (FUP) Vuchers - $814 thusand Hme Frward manages 100 FUP Vuchers. Utilizatin f these vuchers fr FY is anticipated t be 94%. Rental Assistance Demnstratin (RAD) Vuchers - $2.4 millin Hme Frward manages 791 RAD Vuchers frm cnversins that ccurred in calendar year Utilizatin f these vuchers fr FY is anticipated t be 97%. Hmeless Preventin Services $7.8 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). Serving apprximately 455 husehlds per mnth, 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, serving apprximately 468 husehlds per mnth, which prvide rent assistance and supprtive services t peple with disabilities wh are experiencing hmelessness. Rent Assistance Mving t Wrk Initiatives - $1.9 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 - $310 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 Blended Subsidy - $902 thusand Lcal Blended Subsidy (LBS) prgram uses a blend f MTW Sectin 8 and RAD funds t subsidize units reserved fr families earning 80 percent r belw f area median incme. These units may be new cnstructin, rehabilitated, r existing husing. LBS has been utilized fr 284 units at three prperties. This includes 130 units at Bud Clark Cmmns, 45 units at Madrna Place, and 109 units at Stephens Creek Crssing. The remainder f MIF activity can be fund in the Mving t Wrk Initiative Schedule included in the Appendix. Hme Frward 18

21 Rental Assistance Demnstratin (RAD) - $402 thusand Hme Frward cnverted a ttal f 791 RAD units and will receive an administrative fee f $402 thusand fr these units. The cnversin will shift the funding frm Public Husing Operating Subsidy and Capital Grant Funding t Prject-Based Vucher Funding. Prperties Cnverted t Husing Chice Vucher Subsidy in FY 18 Prperty Units Cnverted Fairview Oaks & Wds 40 Martha Washingtn 25 New Clumbia Cecelia 72 New Clumbia Haven 29 New Clumbia Trutn 125 New Clumbia Wlsey 71 Rckwd Statin 25 The Jeffrey 20 Bud Clark Cmmns 130 Humbldt Gardens 100 Stephens Creek Crssing Nrth 64 Stephens Creek Crssing Suth 45 Madrna Place 45 Ttal RAD Cnversins 791 Hme Frward 19

22 Budget Cmmentary Public Husing Prtfli Summary Budget Data FY Budget Operating Revenue $8,758,778 Operating Expense 10,396,568 Operating Incme Befre OH (1,637,790) Allcated Overhead - Operating Incme After OH (1,637,790) Funding Flw Activity 2,047,868 Funding Required r (Cntributed) fr Current Agency Activities $(410,079) Ttal Budgeted FTE 39.9 The Public Husing Prtfli includes the budget activity fr 33 traditinal public husing prperties and 40 prpertylevel staff. Hme Frward s public husing stck prvides an imprtant resurce t the cmmunity by prviding husing fr 1,310 units thrughut Multnmah Cunty. Prperty staff fcus n the management and maintenance f the prperties and wrk twards preserving the aging husing stck. In FY , 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 Units in Public Husing Prtfli 1,310 Eligibility Per Unit Per Mnth $637 Budgeted Prratin 85% Budgeted Prratin Per Unit Per Mnth $541 Ttal Subsidy (in millins) $6.0 Husehlds Served ccupancy is assumed at 98%. FTEs During FY 18 staff reviewed pen psitins, wrklads and cnslidated prperty assignments where feasible. The result was a net decrease f 3.1 FTE. This includes: Decreases: 2.2 FTE Maintenance Supervisr Hme Frward 20

23 0.3 FTE Maintenance Generalist III 2.2 FTE Maintenance Generalist I Increases: 1.6 FTE net change between Prperty, Site and Assistant Prperty Managers Majr Prgrams/Initiatives/Activities and Estimated Budget Impact Hme Frward cnverted a ttal f 791 RAD units (frm Public Husing Operating Subsidy funding t vucher funding) in the previus fiscal year. Within the Public Husing Prtfli, Madrna Place was the nly prperty t cnvert t RAD in FY 18. Prperties Cnverted t Husing Chice Vucher Subsidy in FY 18 Prperty Units Cnverted Department Madrna Place 45 Public Husing Ttal RAD Cnversins 45 Prperty staff will assist with cnversin f 350 units f public husing t RAD. This cnversin will ccur at 7 prperties, beginning in January This will invlve cmpleting inspectins, signing new leases and cnducting prgram briefings fr each husehld. Outside f wrk planned under the RAD cnversin, planned Capital Grant prjects include plumbing and sewer line repair at Dekum Curt, abatement at Dekum Curt, garbage enclsure repair at Demar Dwns, and a capital needs assessment fr the entire Public Husing Prtfli. Majr Revenue and Expense Items Operating Revenue is $8.8 millin. Dwelling Rental is $2.7 millin. HUD Subsidies fr public husing is $5.7 millin. HUD Grants are $235 thusand. Operating Expense is $10.4 millin. Maintenance is $2.9 millin and includes $1.3 millin in Maintenance Persnnel Expense (includes planned cmpensatin increases), and $1.6 millin in Other Maintenance Expenses. Administratin is $2.5 millin and includes $2.1 millin in prperty management fees charged by the Prperty Management department. The remaining administratin expenses includes $95 thusand in cmmunicatins and equipment expense, $63 thusand in curtesy patrls, and $33 thusand in legal expenses. Depreciatin is $2.0 millin. Utilities are $1.5 millin. Hme Frward 21

24 Prgram Expense is $1.0 millin. Operating Incme after Overhead is $(1.6 millin). Agency Overhead is charged thrugh Prperty Management and is allcated t Public Husing Prtfli thrugh the prperty management fee. Funding Required fr Current Agency Activities Net Capital Cntributins are $230 thusand. The Public Husing Prtfli fully funds all f its peratins and has $410 thusand in cash flw prjected fr future prperty needs. Hme Frward 22

25 Budget Cmmentary Affrdable Husing Prtfli Summary Budget Data FY Budget Operating Revenue $19,218,202 Operating Expense 15,011,016 Operating Incme Befre OH 4,207,185 Allcated Overhead 98,443 Operating Incme After OH 4,108,742 Funding Flw Activity (4,108,742) Funding Required r (Cntributed) fr Current Agency Activities $(1,461,248) Ttal Budgeted FTE 2 The Affrdable Husing Prtfli cnsists f 58 prperties with 2,944 units thrughut Multnmah Cunty financed by private debt, public debt, and tax credits. The summary data belw is fr prperties wned exclusively 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 FTE fr this perating grup is nly 2, since the majrity f the FTE are at the external prperty management cmpanies. The expenses are n the Hme Frward financials, but the FTE are nt included in the Hme Frward head cunt as they are nt managed thrugh Hme Frward payrll. The Affrdable Husing 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 while cmpleting much needed capital imprvements at a number f aging sites. Rising insurance csts and the transitin t RAD funding will be ther issues in the upcming fiscal year. Key Assumptins Change n Net Operating Incme and Unit Size by Transitin Type Prperty Units FY Tax Credit Cnversin Funtain Place 80 $14,628 Ttal 80 $14,628 The average budgeted ccupancy is 98% (cnsistent with actual prperty perfrmance). FTE has increased by 0.4 FTE due t maintenance staff at sme master-leased prperties. Hme Frward 23

26 Majr Prgrams/Initiatives/Activities and Estimated Budget Impact Insurance premiums are prjected t be $573 thusand as premium rates cntinue t rise. T prepare fr increased insurance deductibles, a $375 thusand insurance reserve will be funded frm a cmbinatin f Prperty and Asset Management department reserves. $4.3 millin in Maintenance Prjects including the fllwing large prjects: Fairview Oaks (Exterir Rehab) Unthank (Heaters and Exterir Rehab) Grace Peck (Parking Lt and Smart Burners) Rckwd Landing (Rf Replacement) Gretchen Kafury (Terrace Deck and Siding) Majr Revenue and Expense Items Operating Revenues are budgeted t be $20.3 millin ($1.7 millin due t prperty transitins). The belw cmments highlight the majr trends. Dwelling rental is prjected t be $16.4 millin which is attributable t high ccupancy rates, and rental increases capped at 5%. Madrna (45 units), Fairview (40 units) and Rckwd (20 units) have cnverted t RAD subsidy and will be receiving funding thrugh the vucher funding. Fr Fairview and Rckwd, nly the units receiving Public Husing Operating Subsidy have cnverted. Operating Expenses are prjected t be $15.9 millin ($1.4 millin due t prperty transitins). Utilities f $2.4 millin reflecting rate increases and $299 thusand frm prperty transitins. Depreciatin f $4.2 millin ($319 thusand as a result f prperty transitins). Funding Required fr Current Agency Activities Unrestricted cash t the agency is expected t be $4.3 millin, f which $1.6 millin has been reallcated t the apprpriate perating grups. The funding f a Real Estate Capital Reserve ($225 thusand) is part f a ten-year plan t address capital needs within the Affrdable Husing Prtfli. This is a $100 thusand decrease frm the prir year. The funding f a $375 thusand insurance reserve that is intended t pay fr deductibles in the upcming year. Hme Frward 24

27 Budget Cmmentary Asset Management Summary Budget Data FY Budget Operating Revenue $498,719 Operating Expense 1,180,603 Operating Incme Befre OH (681,883) Allcated Overhead 670,500 Operating Incme After OH (1,352,383) Funding Flw Activity 1,352,383 Funding Required r (Cntributed) fr Current Agency Activities $1,368,133 Ttal Budgeted FTE 9.0 The Asset Management grup is respnsible fr verseeing the perfrmance f the entire Hme Frward prtfli with the fllwing breakdwn: Prtfli Type Prperties Units Public Husing 33 1,310 Special Needs Affrdable 24 2,434 Tax Credit 17 2,102 Ttal 108 6,351 Key Assumptins Changes in Staffing Asset Management staffing is prjected t hld steady at 9 FTE. Majr Revenue and Expense Items As nted in the Affrdable Husing Prtfli sectin, the Asset Management department needs $1.4 millin t fully fund all planned peratins t versee the perfrmance f the prperties. Operating Expenses f $1.2 millin are mainly cmprised f persnnel expenses and reflect planned cmpensatin increases. Overhead is prjected t be $671 thusand fr the upcming budget year. Funding Required fr Current Agency Activities The Asset Management department needs $1.4 millin t fully fund all planned peratins. Hme Frward 25

28 Budget Cmmentary Prperty Management Summary Budget Data FY Budget Operating Revenue $3,759,471 Operating Expense 1,978,607 Operating Incme Befre OH 1,780,864 Allcated Overhead 1,769,992 Operating Incme After OH 10,872 Funding Flw Activity (10,872) Funding Required r (Cntributed) fr Current Agency Activities $- Ttal Budgeted FTE 18.5 Prperty Management is the service department fr Hme Frward s self-managed prperties. The Prperty Management grup is respnsible fr verseeing the cmpliance and maintenance at 33 traditinal public husing prperties, ne prject-based Sectin 8 RAD prperty, and eight tax credit prperties that include tax credits and prject-based Sectin 8 RAD. These 42 prperties prvide husing fr 2,383 husehlds. Subsidy Type Prperties Public Husing 33 Prject-Based Sectin 8 RAD 1 Tax Credit 8 Ttal Prperties Managed 42 Overall, the Prperty Management grup supervises 95 FTE. Thirty-six 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 40 staff are budgeted at the traditinal public husing prperties and the assciated csts are within the Public Husing Prtfli budget. The 18.5 staff captured in this budget include management and cmpliance staff, and maintenance staff wh prvide peer training and backfill. Prperty Management will cntinue t transitin their business mdel and supprt the gals f Hme Frward s Strategic Operatins Plan. In FY 18 Prperty Management supprted the first public husing prperties cnverting t RAD (Rental Assistance Demnstratin) and will participate in RAD Phase 2 and Sectin 18 applicatins fr the remaining public husing prperties. In FY , Prperty Management will cntinue t prvide supprt fr prperties cnverting t RAD and Sectin 18. Hme Frward 26

29 Managed Prperties Cnverted t Husing Chice Vucher Subsidy in FY 18 Prperty Units Cnverted Department Bud Clark Cmmns 130 Prperty Management Humbldt Gardens 100 Prperty Management Stephens Creek Crssing Nrth 64 Prperty Management Stephens Creek Crssing Suth 45 Prperty Management Ttal RAD Cnversins 339 Over the last year Prperty Management reviewed vacant staff psitins, wrklads and cnslidated assignments where feasible. 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 FTEs Prperty Management shws a net increase f 2.8 FTE. This includes: Decreases: 1 FTE Prperty Manager II Increases: 1 FTE Cmpliance Specialist fcused n training and nbarding 1 FTE Cmpliance Manager 1 FTE Maintenance Generalist I 0.5 FTE Maintenance Generalist III 0.3 FTE Maintenance Supervisr The Prperty Manager II psitn was reclassified t a Cmpliance Manager. The Cmpliance Specialist psitn was added t supprt the department thrugh the RAD and LIHTC cnversins. The Maintenance Generalist I and Maintenance Generalist III were mved frm prperty budgets int the department budgets. Bth psitins will fill in at prperties when there are vacancies. Even thugh these psitin are budgeted within the Prperty Management department, the majrity f the expense will be charged directly t prperties. The Maintenance Supervisr psitin was previusly budgeted at the prperties as well and will be prviding supprt during RAD. Majr Prgrams/Initiatives/Activities and Estimated Budget 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 five RAD public husing prperties and tw Sectin 18 prperties beginning in January Hme Frward 27

30 Prperty Management will prvide supprt fr the 26 public husing prperties pending future cnversins f RAD and Sectin 18 applicatins. Cntinue t assess prperty management peratins and develp strategies t achieve a sustainable business mdel. Majr Revenue and Expense Items Operating Revenue is frecasted t be $3.8 millin. Public Husing HUD Subsidies is $127 thusand. Other Revenue is $3.1 millin and includes a prperty management fee mdel where fees are being charged t prperties instead f being charged verhead. This will allw fr the indirect csts t be captured in Operating Expenses. Prperty Management Fees are prjected t ttal $2.7 millin. $2.1 millin frm the Public Husing Prtfli. $600 thusand frm Tax Credit Prperty Management fees. HUD Grants are $557 thusand. Operating Expenses are frecasted at $2 millin. Administratin Expenses are $414 thusand. $213 thusand is in Administrative Persnnel Expense. $201 thusand is in Other Admin Expenses. Other Admin Expenses include $51 thusand in Office Rent; $46 thusand fr cnsultants and staff training t supprt RAD cnversins; $25 thusand fr Gresham plice supprt; and $10,000 fr staff safety and ther training. Prgram Expense is $750 thusand, primarily in persnnel expense. Maintenance Expenses are $391 thusand, $314 thusand f which are Maintenance Persnnel Expenses and $77 thusand are Other Maintenance Expenses. Ttal Inter-Agency Expense is $277 thusand. General Expenses are $136 thusand, cmprised mainly f Payment in Lieu f Taxes (PILOT). Persnnel expenses include planned cmpensatin increases. Operating Incme Befre Overhead is $1.8 millin. Allcated Overhead is $1.8 millin. Operating Incme after Overhead is a $11 thusand. Funding Required fr Current Agency Activities Sufficient prperty management fee revenue results in zer use f funding fr agency activities. Hme Frward 28

31 Budget Cmmentary Safety Summary Budget Data FY Budget Operating Revenue $- Operating Expense 99,153 Operating Incme Befre OH (99,153) Allcated Overhead 7,501 Operating Incme After OH (106,654) Funding Flw Activity 106,654 Funding Required r (Cntributed) fr Current Agency Activities $106,654 Ttal Budgeted FTE 0.8 Safety crdinates 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 residents, and a safe and inviting wrkplace fr emplyees. The Safety grup identifies ptential risks t prperties and peratins, develps strategies t mitigate risks, and delivers 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 Budget Impact Staff will cnduct physical assessments f prperties and make safety and training recmmendatins. This will include: Tracking and ensuring cmpliance with varius ccupatinal, safety laws, regulatins, and Creating and implementing safety plicies t guide agency departments and staff. Majr Revenue and Expense Items Operating Expenses are $99 thusand fr FY Administratin includes $71 thusand in Persnnel Expenses and $8 thusand in Other Admin Expenses fr training and supprt f safety activities. Overhead Allcatins are $8 thusand based n Hme Frward s allcatin methdlgy. Operating Incme after Overhead is $(107) thusand. Hme Frward 29

32 Funding Required fr Current Agency Activities Safety will use $107 thusand f Agency funding fr FY activities. Hme Frward 30

33 Budget Cmmentary Integrated Facilities Services Summary Budget Data FY Budget Operating Revenue $1,404,018 Operating Expense 1,183,686 Operating Incme Befre OH 220,332 Allcated Overhead 222,398 Operating Incme After OH (2,066) Funding Flw Activity 2,066 Funding Required r (Cntributed) fr Current Agency Activities $- Ttal Budgeted FTE 13.4 Integrated Facilities Services is the perating grup fr Hme Frward s specialized maintenance services. Services include electrical wrk, plumbing, pest cntrl, painting, trash/hauling, and garbage and recycling pick up. Hme Frward-managed prperties utilize Integrated Facilities Services based n need and are billed fr services prvided. Key Assumptins FTEs Facilities Services shws a net decrease f 0.5 FTE. This includes: Decreases: 1 FTE Maintenance Generalist II Increases: 0.5 FTE Supervising Electrician Majr Prgrams/Initiatives/Activities and Estimated Budget Impact Imprve hw services are billed t prperties fr a mre efficient prcess. Cntinued planning and analysis f services t Hme Frward Prperties. In FY , Integrated Facilities Services has psitined itself as a self-sustaining business unit. Trades billing n an hurly basis prvide services at rates that are cmpetitive with, and in sme instances, belw market rates. The Trash and hauling service is uniquely equipped t prvide vacate and hauling services that are nt available frm third party prviders. Mre analysis is planned t determine hw this department might expand its business. Hme Frward 31

34 Majr Revenue and Expense Items Operating Revenue is $1.4 millin. Operating Expenses are $1.2 millin. Administrative persnnel expense and prgram persnnel expense in supprt f department administratin is $200 thusand and includes planned cmpensatin increases. Each trade is frecasted t generate psitive net perating incme. Allcated Overhead is $222 thusand. Funding Required fr Current Agency Activities Integrated Facilities fully funds its peratins, requiring n funding fr agency activities. Hme Frward 32

35 Budget Cmmentary Develpment & Cmmunity Revitalizatin Summary Budget Data FY Budget Operating Revenue $5,417,242 Operating Expense 2,052,765 Operating Incme Befre OH 3,364,477 Allcated Overhead 853,952 Operating Incme After OH 2,510,524 Funding Flw Activity (2,510,524) Funding Required r (Cntributed) fr Current Agency Activities $- Ttal Budgeted FTE 17.0 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: $153 millin Key Assumptins DCR staffing is budgeted t remain at 17 FTE fr FY staffing levels. Full-term Senir Develper psitin is added t FY budget t assist Prtland Husing Bureau s (with the passage f the 2016 General Obligatin Bnd) plan t create 1,300 affrdable husing units. Hme Frward will be acting as a develpment cnsultant. All staff cst will be funded frm the develper fee earnings fr this prject. The increase in FTE due t the additin f the Senir Develper psitin will ffset by the eliminatin f the Design and Cnstructin Prject Manager psitin in FY This psitin which is currently vacant and will likely be needed in FY 2019 t cmplete the wrk assciated with the repsitining the entire Public Husing Prtfli via RAD cnversins and Sectin 18 dispsitins. The Relcatin Specialist psitin, which is currently vacant is expected t be filled in FY t assist with the increased wrklad due t a public husing repsitining effrt. The department will cntinue t utilize inter-agency transfers t reflect staffing csts capitalized in real prperties r transferred frm ther departments. Hme Frward 33

36 Develper Fees Accrued and Received FY (amunt in Millins) Prject Prject Budget Accrued Develper Fee Revenue Develper Fee Cash t be Received St. Francis Park $23.2 $0.0 $0.1 Square Manr Llyd Husing LP Framewrk Prject Ttal $149.1 $5.4 $1.2 Majr Prgrams/Initiatives/Activities and Estimated Budget Impact St. Francis Park Develpment - Hme Frward has partnered with Cathlic Charities fr the develpment f an affrdable husing prject in Sutheast Prtland. Hme Frward served as the Limited Partner Investr and develper f recrd with Cathlic Charities serving as the General Partner and prperty manager. Cnstructin was cmpleted and the prperty received the final Certificate f Occupancy in August St. Francis Park (In Millins) FY 15 FY 16 FY 17 FY 18 FY 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 utilizes a 4% lw incme husing tax credits, bnd funds, grants and reserve funds. Rehabilitatin prject fr Gladstne Square began in March 2017 and Multnmah Manr began in May Rehabilitatin f these prperties was cmpleted in January Square Manr (In Millins) FY 17 FY 18 FY FY 19 Ttal Prject Uses $10.3 $8.7 $1.0 $0.1 Ttal Prject Surces $10.3 $8.7 $1.0 $0.1 Llyd Husing (frmerly knwn as NE Grand) This prject is a mixed-use new cnstructin develpment. The Prtland Husing Bureau awarded the land and funding t Hme Frward. This tax credit partnership will utilize 4% lw incme husing tax credits, bnd funds, grants and reserve funds. Cnstructin finance clsed in December 2017 and cnstructin began in January Prject cmpletin schedule is December Hme Frward 34

37 Llyd Husing (In Millins) FY 18 FY FY 19 FY 20 FY21 Ttal Prject Uses $21.4 $30.7 $14.1 $1.5 $9.2 Ttal Prject Surces $21.4 $30.4 $14.1 $1.5 $9.2 Framewrk Husing Prject Hme Frward has partnered with Beneficial Bank LLC t redevelp their existing real estate prperty in the Pearl District. The prject will develp the site cnsisting f cmmercial and affrdable husing cndminiums. Hme Frward will serve as the General Partner and c-develper respnsible fr the cnstructin f the husing units. Cdy Develper will serve as the lead develper respnsible fr the cnstructin f the cmmercial units. Framewrk is a mixed-use new cnstructin develpment. This tax credit partnership will utilize 4% lw incme husing tax credits, bnd funds, grants and reserve funds. Clse f cnstructin finance is scheduled in March 2018 and cnstructin is scheduled t begin in March Framewrk (In Millins) FY 18 FY FY 19 FY 20 Ttal Prject Uses $6.3 $16.0 $4.8 $1.8 Ttal Prject Surces $6.3 $16.0 $418 $1.8 Capital Imprvement Prjects Currently, there are eight capital imprvement prjects in prgress. Ttal budget fr these prjects is $3.5 millin utilizing the Capital Fund Prgram (CFP) grant and reserves fund. Prjects Prject Budget (in Millins) Estimated Prject Cmpletin Harld Lee Cmprehensive Rehabilitatin $1.8 April 2018 Tamarack Sewer Emergency Repair 0.1 December 2018 Williams Plaza Water Line Repair 0.1 April 2018 Fairview Wds Recladding 1.0 June 2018 Richmnd Place Rehabilitatin 0.5 June 2018 Ttal $3.5 Majr Revenue and Expense Items Operating Revenue f $5.4 millin frm Develper Fees. Hme Frward 35

38 Develper Fees (in Millins) Prjects Ttal FY Llyd Husing LP $8.3 $3.8 Framewrk Ttal $11.6 $5.4 Ttal Operating Expense f $2.1 millin primarily due t: Persnnel expenses f $1.6 millin. Other administrative expenses f $430 thusand attributed t: Office Rent Expense f $47 thusand, Preliminary/Clse-ut Develpment Expenses f $38 thusand, Training and Travel Expenses f $34 thusand, Other Miscellaneus Admin Expenses f $157 thusand, and Inter-Agency Expenses f $154 thusand. Funding Required fr Current Agency Activities The cash t Hme Frward highlights the cyclical nature f prjects where develper fees earned and paid ver the next fiscal years. The prject lifecycle f the department exhibited by: The St. Francis Park prject generates $1.4 millin in develper fee ver multiple fiscal years. The first installment f $250 thusand paid at the clse f finance in March In FY expected payments f earned develper fees is $534 thusand. Secnd installment f $250 thusand is due t be paid upn receipt f Final Cst Certificatin f the Eligible Basis scheduled in April Third installment f $234 thusand is due t be paid upn receipt f Frm 8609 scheduled in June Furth installment f $50 thusand is due t be paid upn satisfactin f all cnditins f Final Installment scheduled in July Develper fee balance f $616 thusand evidenced by a prmissry nte will be paid ut f the Limited Partnership cash flw frm Operatins. Square Manr will generate $1.2 millin in develper fee ver multiple fiscal years. The first installment f $188 thusand paid frm the prceeds f the Limited Partners Secnd Installment t the Partnership in January In FY expected payments f earned develper fees is $753 thusand. Secnd installment f $189 thusand is due at cnstructin cmpletin scheduled in April Hme Frward 36

39 Third installment f $494 thusand is due upn receipt f Final Cst Certificatin f the Eligible Basis scheduled in September Furth installment f $70 thusand is due upn receipt f Frm 8609 scheduled in Octber Develpment fee balance f $300 thusand evidenced by a prmissry nte will be paid ut f the Limited Partnership cash flw frm Operatins. Llyd Husing will generate $8.3 millin in develper fee ver multiple fiscal years. First installment f $5.4 millin is due at Cnversin Installment estimated in April Secnd installment f $574 thusand is due upn receipt f Limited Partner s Final Installment estimated in August Develper fee balance f $2.3 millin evidenced by a prmissry nte will be paid ut f the Limited Partnership cash flw frm Operatins and prceeds available fr distributin frm Capital Transactin. Framewrk Husing will generate $3.3 millin in develper fee ver multiple fiscal years. The first installment f $493 thusand is due at the clse f cnstructin finance estimated in March Secnd installment f $424 thusand is due at cnstructin cmpletin scheduled in April Third installment f $1.4 millin is due upn receipt f Final Cst Certificatin f the Eligible Basis scheduled in February Furth installment f $319 thusand is due upn receipt f Frm 8609 scheduled in May Develper fee balance f $669 thusand evidenced by a prmissry nte will be paid ut f the Limited Partnership cash flw frm Operatins. Hme Frward 37

40 Budget Cmmentary Cmmunity Services Summary Budget Data FY Budget Operating Revenue $2,397,092 Operating Expense 3,093,467 Operating Incme Befre OH (696,374) Allcated Overhead 501,620 Operating Incme After OH (1,197,994) Funding Flw Activity 1,197,994 Funding Required r (Cntributed) fr Current Agency Activities $889,728 Ttal Budgeted FTE 29.4 The Cmmunity Services department prvides services fr Hme Frward residents, utilizing bth in-huse staff and cntractrs. In FY , the Cmmunity 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 3,000 residents prviding arund 15,000 service interactins. Thrugh intentinal alignment with cmmunity partners, the department 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 One Strategic Plan, the department will infuse trauma awareness, healing and equity fr meaningful engagement and service delivery. Cmmunity Services 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 Cmmunity Services FTE is flat fr FY Majr Prgrams/Initiatives/Activities and Estimated Budget Impact Barrier Reductin and Opprtunity Funds: $20 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: $19 thusand is prpsed in Mving t Wrk Initiative funds t create a service delivery mdel that meets the needs and wants f Hme Frward s residents and participants. Hme Frward 38

41 Service staff will cntinue t supprt residents during the RAD cnversins. Majr Revenue and Expense Items Operating Revenue is $2.4 millin: Prgram Fees frm prperties are $867 thusand. State, Lcal and Other Grants are $618 thusand. $321 thusand in Medicaid Revenue frm senir/disabled supprt services CHSP prgram. $297 thusand frm the City f Prtland fr Bud Clark Cmmns prgrams. HUD grants are $594 thusand frm senir/disabled supprt services, family services, and Stephens Creek Crssing prgrams. Operating Expenses are $3.1 millin: Tenant Services expense is $2.3 millin Direct Cmmunity Services, Prgram Supplies, Cntract Tenant Services and ther related expenses are $1.2 millin. Tenant Services Persnnel Expense is $1.1 millin and includes budgeted benefits and payrll increases. Prgram Persnnel Expense is $402 thusand and Admin Persnnel Expenses f $108 thusand. Other Admin expenses f $119 thusand ($19 thusand fr Cnsultants, $34 thusand fr training and travel). Inter-Agency expense is $150 thusand and includes $53 thusand f estimated accunting and financial supprt services. Operating Lss Befre Overhead is $(696 thusand). Allcated Overhead in Cmmunity Services is $502 thusand. Funding Required fr Current Agency Activities The Cmmunity Services department needs $890 thusand t fully fund all planned peratins. There is $308 thusand in funding flw activity. $237 thusand is fr resident supprt services at the tax credit prperties and $41 thusand is fr supprt services fr senirs and peple with disabilities. Hme Frward 39

42 Budget Cmmentary Administratin Summary Budget Data FY Budget Operating Revenue $398,885 Operating Expense 6,116,869 Operating Incme Befre OH (5,717,984) Allcated Overhead (5,667,640) Operating Incme After OH (50,343) Funding Flw Activity 50,343 Funding Required r (Cntributed) fr Current Agency Activities $- Ttal Budgeted FTE 52.5 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 1.3 FTE primarily due t: Increases: 0.75 FTE Human Resurce Assistant 0.55 FTE ther miscellaneus changes Majr Prgrams/Initiatives/Activities and Estimated Budget Impact Sftware Upgrade and Migratin - $143 thusand During the year, Hme Frward will wrk n upgrading its primary estate sftware platfrm t YARDI Vyager 7s. The new system will be a clud based service and will allw Hme Frward t take advantage f the newer functinality and features nly available n the clud platfrm including imprved navigatin tls and a custmized user interface. The upgrade als allws Hme Frward t stay supprted as YARDI discntinues their supprt f previus versins f Vyager. Resident Legal Services and Expungement Partnership - $41 thusand Wrking with cmmunity partner Metrplitan Public Defenders, this initiative helps Hme Frward residents meet nging bligatins t the curts, request criminal recrd expungements and prvide ther legal and cnsulting services. Hme Frward 40

43 Majr Revenue and Expense Items Operating Revenue, primarily rent charged t the perating grups fr New Market West (NMW), is $398 thusand. Operating Expenses are $6.2 millin Persnnel csts are $4.3 millin. These csts reflect an additin f 0.75 FTE as described abve, planned cmpensatin increases and a higher PERS liability. Sftware and Infrmatin Technlgy equipment expenses are $610 thusand primarily due t licensing fees (YARDI and Micrsft) and upgrading bslete cmputers. Cnsultant expenses are $277 thusand primarily due t the Upgrade and Migratin t YARDI Vyager 7s. Training expenses are $91 thusand fr prgramming including Trauma Infrmed Care, MTW cnferences and ther rganizatinal training. $178 thusand fr maintenance needs at New Market West including $57 thusand fr lighting upgrades. There is $47 in Agency Initiatives, primarily $39 thusand fr the Resident Legal Services and Expungement partnership. Funding Required fr Current Agency Activities Overhead fr Administratin is $5.7 millin. Hme Frward will utilize MTW flexibility t finance $41 thusand in legal services fr residents. Hme Frward 41

44 Budget Cmmentary Real Estate Finance Summary Budget Data FY Budget Operating Revenue $503,136 Operating Expense 71,337 Operating Incme Befre OH 431,799 Allcated Overhead - Operating Incme After OH 431,799 Departmental Reserve Transfer 3,419 Funding Required r (Cntributed) fr Current Agency Activities $(1,431,600) Ttal Budgeted 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. Majr Revenue and Expense Items West and the Wds Limited Partnerships Land lease revenue is $253 thusand. Cell twer revenue is $75 thusand. New Clumbia Land lease revenue is $68 thusand. Stephens Creek Crssing Land lease revenue is $108 thusand. Hme Frward wned site imprvents at Stephens Creek Crssing will generate $66 thusand f depreciatin expense in FY These are nn-cash expenses. Real Estate Finance will cntribute $1.4 millin in unrestricted cash t the agency. Hme Frward 42

45 Attachments Summary f Mving t Wrk Initiative Funds FY 18 Initative Descriptin First Year Budget (9 m.) Actin fr Prsperity* Ecnmic Opprtunity Prgram Earl Byles Husing Partnership STRA Funding (sub-prgrams Oxfrd and Alder) Expungement Partnership Wrksystems Liaisn Barrier Reductin and Opprtunities 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. 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. 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 senir and disabled ppulatin age-in-place by maintain their quality f life. FY 12 $- FY ,657 FY ,161 FY ,934 FY 17 40,950 FY 17 35,438 FY 12 $40,845 Hme Frward 43

46 FY 18 Initative Descriptin First Year Budget (9 m.) Neighbr 2 Neighbr Lcal Blended Subsidy (LBS) VASH Security Depsit Landlrd Incentive Fund Dmestic Vilence Transfer Funds Alder Schl New Drs/NAFY Family Unificatin Prgram Extensin OHI 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. 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. 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. FY 12 $- FY ,439 FY 12 15,918 FY 13 15,750 FY 13 7,875 FY ,941 FY 14 15,258 FY 14 44,150 FY 12 $2,977 Hme Frward 44

47 FY 18 Initative Descriptin First Year Budget (9 m.) Tenant Educatin A prgram designed t help ur tenants better understand the rental prcess. FY 16 $47,246 Ttal MTW Initatives $1,984,539 *Actin fr Prsperity amunt is nw included in the STRA Funding amunt Hme Frward 45

48 FY Estimated Husehlds Served by Categry Categry Affrdable Husing Special Needs Tax Credits 85 Stries Tax Credits Husehlds Served 2, ,677 Percent 17% 2% 4% 11% Public Husing Prtfli 1,319 8% Rent Assistance 10,200 65% Ttal 16,787 Rent Assistance Occupying Affrdable Husing / Tax Credit Units* (1,166) -7% Unduplicated Ttal 15, % *Rent Assistance Occupying Affrdable Units represents vucher hlders that live within ur Affrdable and Tax Credit prperties. The 1,166 represents residents already included in the Rent Assistance / Affrdable Husing / Tax Credit Prtflis. An adjustment is made t prvide an unduplicated ttal. Hme Frward 46

49 FY Estimated Rent Assistance Husehlds Served by Categry Hme Frward 47