2018 annual operating budgetrental assistance to families renting housing units owned by private...
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2018 ANNUAL
OPERATING
BUDGET THE HOUSING AUTHORITY OF THE CITY OF
DURHAM, NORTH CAROLINA
MISSION STATEMENT: TO DEVELOP, OWN, MANAGE AND CONTRIBUTE TO
DIVERSE COMMUNITIES OF CHOICE.
2018 ANNUAL OPERATING BUDGET
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PAGE INTENTIONALLY LEFT BLANK
2018 ANNUAL OPERATING BUDGET
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TABLE OF CONTENTS
SECTION I – INTRODUCTION TO THE BUDGET FOR 2018
Transmittal Letter ............................................................................................................................................ 5
Board of Commissioners ................................................................................................................................ 6
Organizational Structure ................................................................................................................................ 7
Staffing and Budget Allocations .................................................................................................................... 8
SECTION II – THE AUTHORITY IN 2018
Profile of the Authority ................................................................................................................................. 11
Funding Highlights ....................................................................................................................................... 12
Strategic Plan FY2018 Goals & Objectives ................................................................................................. 13
SECTION III – THE BUDGET FOR 2018
FY2018 Summary Budget ............................................................................................................................. 15
FY2018/FY2017 Summary Budget Comparison ........................................................................................ 17
Low Income Public Housing (LIPH)
LIPH Program Summary .............................................................................................................................. 18
LIPH Budget Assumptions & Projections .................................................................................................. 19
LIPH Consolidated Budget .......................................................................................................................... 20
LIPH – Property Management Team 1 ....................................................................................................... 21
LIPH – Property Management Team 2 ....................................................................................................... 25
LIPH – Property Management Team 3 ....................................................................................................... 28
LIPH – Property Management Team 5 ....................................................................................................... 30
LIPH – Property Management Team 6 ....................................................................................................... 33
LIPH – Property Management Team 7 ....................................................................................................... 37
Affordable Housing (AFH)
AFH – Program Summary ........................................................................................................................... 40
2018 ANNUAL OPERATING BUDGET
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TABLE OF CONTENTS
AFH – Budget Assumptions & Projections ................................................................................................ 41
AFH – Property Management Team 4 ........................................................................................................ 42
Central Office Cost Center (COCC)
COCC Program Summary ........................................................................................................................... 47
COCC Budget Assumptions & Projections ................................................................................................ 50
COCC Consolidated Budget ........................................................................................................................ 52
Housing Choice Voucher Program (HCVP)
HCVP Program Summary ............................................................................................................................ 53
HCVP Budget Assumptions & Projections ................................................................................................ 55
HCVP Budgets (Administration|HAP) ..................................................................................................... 56
Development Ventures, Inc (DVI)
DVI Program Summary ................................................................................................................................ 58
DVI Budget ..................................................................................................................................................... 59
Learning Assistance, Inc (LAI)
LAI Program Summary and Budget ........................................................................................................... 60
Other Programs & Grants
Birchwood and Hope VI ............................................................................................................................... 61
Family Self Sufficiency | Governors Crime Commission ........................................................................ 62
Rental Assistance Demonstration (RAD)
RAD Program Summary .............................................................................................................................. 63
RAD Budgets – Damar & Morreene ........................................................................................................... 64
2018 ANNUAL OPERATING BUDGET
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SECTION I INTRODUCTION TO THE BUDGET FOR 2018
2018 ANNUAL OPERATING BUDGET
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2018 ANNUAL
OPERATING BUDGET November 15, 2017
Board of Commissioners
The Housing Authority of the City of Durham
330 East Main Street
Durham, NC 27701
To the Board of Commissioners:
I am pleased to present the 2018 preliminary budget proposal for
The Housing Authority of the City of Durham (The Authority). The
purpose of this document is to provide the Board, Staff and other
Stakeholders with a comprehensive view of inflows and outflows of
financial resources used for daily operations.
In addition, it sheds light on how our programs are funded, how
we allocate these funds annually and most importantly, how our
strategic plans for the future will give this agency competitive
advantage when it comes to affordable housing within the City of
Durham.
Over the past few years, our efforts to mitigate threats presented by
funding shortfalls have been challenging. However, we are more
committed than ever to strengthen our current programs, take
advantage of new opportunities and improve efficiency.
The annual budget and the Authority’s policies are some of the
most important statements that drive decision-making and
management control. The entire staff stands ready to assist you
during your review and discussions about this budget.
Respectfully submitted,
Anthony Scott
Chief Executive Officer
2018
OPERATING
INCOME (LOSS)
Low Income Public
Housing - $599,700
Low Income Public
Housing (excluding RAD)
- $316,157
Central Office Cost Center
- $18,072
HCVP Administration –
($85,011)
Development Ventures,
Inc - $6,570
Edgemont Elms Housing,
Inc – ($5,580)
Goley Pointe, LLC -
$1,740
Learning Assistance, Inc -
$5,980
Preiss Steele Place, LLC -
$145,148
2018 ANNUAL OPERATING BUDGET
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BOARD OF COMMISSIONERS
The Housing Authority of the City of Durham is governed by a seven-member Board of
Commissioners. The Board is comprised of active public servants within the Durham community who
are appointed by the Durham City Council. These concerned and dedicated citizens serve without pay.
Residents of subsidized housing also have the opportunity to serve as members of the Board. Each
Commissioner is appointed for a five-year term. The Chief Executive Officer acts as the
Secretary/Treasurer for the Board.
Thomas M. Niemann, Chairman
George K. Quick, Vice Chairman
Daniel C. Hudgins, Member
Gloria M. Nottingham, Member
Patrice Nelson, Member
Larry D. Yon, II., Member
Robert Glenn, Member
The Board of Commissioners ensure that the Authority operates within the State statutes and the
programs are run according to HUD regulations. Through the approval and adoption of resolutions,
the Board authorizes the Chief Executive Officer and Senior Staff to implement policies and procedures
that define business activities.
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ORGANIZATIONAL STRUCTURE
The organization has a matrix structure where programs and functional responsibilities have
reasonably equal weight. The Board of Commissioners appoints the Chief Executive Officer to
administer the affairs of the Authority.
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STAFFING AND BUDGET ALLOCATIONS
Over the past (5) years, total staffing for the Authority has decreased from 112 to a budgeted number of
96 for 2018. This is mainly due to funding cuts and restructuring to improve efficiency.
A new department, Administration was formed in 2017, to streamline functionality. The department
includes Human Resources, Safety & Security and Compliance. The main objective of the Compliance
function is to ensure that the property management businesses and practices are compliant with
Federal, State and Local regulations as well as requirements.
Over the past few years, the Development department, which is charged with the management of the
development arm of the agency, has been budgeted under Development Ventures Inc. Beginning in
2018, the Development department will be budgeted under the Central Office Cost Center.
For budgeting and operational purposes, the staff is allocated to specific cost centers as follows:
Operations – Low Income Public Housing and Affordable Housing
Operations – Housing Choice Voucher Program
Central Office Cost Center
Other Grant Funded Programs
The charts below show the 5-year trend for staffing in the Agency.
2018 ANNUAL OPERATING BUDGET
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STAFFING
Budget Allocations
Cost Center 2014 2015 2016 2017 2018
Operations (LIPH and Affordable Housing)
Property Management TEAM 1
AMP 003 - Scattered Sites 1.44 1.30 1.30 1.27 1.25
AMP 009 - JJ Henderson 5.04 4.50 4.50 4.45 4.45
AMP 014 - Forest Hills Heights 1.52 1.30 1.30 1.34 1.37
Sub-total Team 1 6.56 5.80 5.80 5.79 7.07
Property Management TEAM 2
AMP 005 - Cornwallis Road 6.02 6.10 6.10 6.14 6.19
AMP 015 - Laurel Oaks 0.98 0.98 0.98 1.00 0.97
Sub-total Team 2 7.00 7.08 7.08 7.14 7.17
Property Management TEAM 3
AMP 001 - McDougald Terrace 11.00 11.20 11.20 11.18 11.23
Sub-total Team 3 11.00 11.20 11.20 11.18 11.23
Property Management TEAM 4
AMP 032 1010 Worth Street - - - - 0.03
Goley Pointe - - 0.50 0.46 0.47
Edgemont Elms Housing, Inc. 0.60 0.60 1.40 1.44 1.45
Priess-Steele Place, LLC 0.43 0.43 1.10 1.13 1.12
Sub-total Team 4 1.03 1.03 3.00 3.03 3.07
Property Management TEAM 5
AMP 010 - Morreene Road 3.92 3.00 2.90 2.85 2.85
AMP 011 - Damar Court 3.08 2.70 2.20 2.24 2.27
Sub-total Team 5 7.00 5.70 5.10 5.09 5.12
Property Management TEAM 6
AMP 004 - Oldham Towers 1.76 1.60 1.60 1.56 1.57
AMP 006 - Liberty Street 3.44 3.00 3.10 3.10 3.06
AMP 008 - Hoover Road 2.80 2.50 2.50 2.49 2.50
Sub-total Team 6 8.00 7.10 7.20 7.15 7.13
Property Management TEAM 7
AMP 007 - Club Blvd 2.70 2.80 2.80 1.55 1.59
AMP 012 - Oxford Manor 6.30 6.40 6.40 3.62 3.63
Sub-total Team 7 9.00 9.20 9.20 5.17 5.21
Residemt Selection Team 3.00 - - - -
LIPH Recertification Team 4.00 - - - -
7.00 - - - -
Total Operations (LIPH|AFH) 58 48 50 46 46
Operations (HCVP)
Housing Choice Voucher Program 15.00 15.00 16.00 17.00 17.00
Total Operations (HCVP) 15 15 16 17 17
Central Office Cost Center
Executive Office 4.00 4.00 4.00 4.80 5.00
Administration 2.00 6.00 5.00 8.00 8.00
Financial Services 9.00 6.20 5.20 5.20 4.50
Development 13.50 9.50 8.00 6.20 7.50
Asset Management - - 1.00 2.00 3.00
Resident Serivices 10.10 11.60 10.60 2.00 2.00
Total COCC 39 37 34 28 30
Grant Funded
Family Self-Sufficiency 3.00 2.00
21st Century 1.00 -
Governor's Crime Commission 1.00
Total Positions 112 101 100 95 96
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SECTION II THE AUTHORITY IN 2018
2018 ANNUAL OPERATING BUDGET
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PROFILE OF THE AUTHORITY
The Authority is an autonomous, non-profit municipal entity created by the City of Durham in 1949
pursuant to state law and the National Housing Act of 1937. The Authority exists to provide safe,
decent, and sanitary housing for low-income families of Durham in accordance with the rules and
regulations prescribed by the U.S. Department of Housing and Urban Development (HUD). Although
it maintains close ties with the City on several respects, the Authority is not a component of the City, as
defined by the pronouncements of the Governmental Accounting Standards Board (GASB). The City is
not financially accountable for the operations of the Authority, has no responsibility of fund its deficits
or receive its surpluses, and has not guaranteed the Authority’s debt.
The Authority currently has available 1,886 public housing units in 21 different communities located
throughout the City of Durham. 477 of these units begun their transition to RAD in 2017. Additionally,
the Authority assists in providing 130 affordable housing units at 3 communities.
The Authority is authorized to administer approximately 2,791 Housing Choice Vouchers that provide
rental assistance to families renting housing units owned by private landlords.
The Authority utilizes the business model of asset management as required by HUD. Funding,
Budgeting, Accounting, Management and Oversight/Performance Assessment are completed on the
project/program level.
For 2018, DHA will manage 5 main businesses – Low Income Public Housing, Housing Choice
Voucher, Central Office Cost Center, Affordable Housing and Rental Assistance Demonstration. Also,
Development Ventures Inc – an instrumentality of the Authority will manage all its development and
re-development activities. In addition, Learning Assistance Inc, a component unit of DHA, will manage
its scholarship program.
2018 ANNUAL OPERATING BUDGET
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FUNDING HIGHLIGHTS
The primary source of external funding for the Authority is the U.S. Department of Housing and Urban
Development (HUD) which provides funding for a variety of programs such as the Low Income Public
Housing (LIPH) and the Housing Choice Voucher Program (HCVP). In addition to the federal
programs, the Authority has established several legal entities to explore and develop innovative
strategies for providing alternative affordable housing possibilities for low-to-moderate-income
residents of the City of Durham. This has allowed the Authority the flexibility to develop several
private/public partnerships to assist with the development of a variety of affordable housing projects.
As shown in the tables below, funding for the Authority has continued to decrease over the last 5 years.
In 2014, Operating Subsidy received was $8,339,712 compared to and expected amount of $7,838,088 in
2018. Also, DHA has not received any ROSS grants since 2016 and the award for FSS expected in 2018
is about $68,893 less than what was received in 2017.
FISCAL YEAR
LOW INCOME
PUBLIC HOUSING CAPITAL FUND
REPALCEMENT
HOUSING FACTOR
2014 8,339,712 2,306,552 409,601
2015 8,351,917 2,531,524 303,495
2016 8,260,124 2,702,972 324,188
2017 8,261,168 2,660,386 319,221
2018 7,838,088 2,527,367 303,260
FISCAL YEAR
HOUSING CHOICE
VOUCHER
PROGRAM (HAP)
HOUSING CHOICE
VOUCHER
PROGRAM (ADMIN) ROSS GRANTS FSS GRANTS
2014 17,475,354 1,583,635 164,000 69,000
2015 16,479,350 1,576,761 164,000 101,816
2016 18,450,014 1,778,952 164,000 189,446
2017 19,508,122 1,760,856 206,680
2018 19,753,628 1,655,205 137,787
2018 ANNUAL OPERATING BUDGET
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STRATEGIC PLAN - FY 2018 GOALS & OBJECTIVES
STRATEGIC GOALS
Strategic Goal
1
Develop
Financial
Stability &
Operational
Efficiency
Strategic Goal
2
Achieve &
Retain status
as a High
Performing
Organization
Strategic
Goal
3
Maintain
Strong
Community
Partnerships
Strategic Goal 4
Cultivate and
Maintain
Quality
Customer
Service
Strategic Goal
5
Create
Healthy and
Sustainable
Communities
Strategic Goal
6
Manage a
Strong and
Diversified
Asset Portfolio
STRATEGIC OBJECTIVES
Strategic
Objective 1A
Improve
financial
operations,
structure &
reporting
Strategic
Objective 2A
Recruit &
retain quality
employees
Strategic
Objective 3A
Build new
and
strengthen
existing
community
relationships
Strategic
Objective 4A
Ensure effective
internal/external
communication
exists within the
organization
Strategic
Objective 5A
Elicit/Involve
community
participation
in decision-
making
Strategic
Objective 6A
Maintain well-
managed
properties and
fleet as well as
competitive
rents
Strategic
Objective 1B
Diversify
revenue
sources
Strategic
Objective 2B
Strengthen
DHA’s
financial well-
being
Strategic
Objective 3B
Increase
community
awareness
Strategic
Objective 4B
Treat everyone
with RESPECT
Strategic
Objective 5B
Promote
public health
and safety
Strategic
Objective 6B
Invest in
private-market
real estate
Strategic
Objective 1C
Upgrade
Information
systems &
technology
Strategic
Objective 2C
Obtain
maximum
performance
measurement
scores
Strategic
Objective 3C
Promote
community
involvement
Strategic
Objective 4C
Ensure that
DHA staff is
knowledgeable
about programs
offered
Strategic
Objective 5C
Provide
diversity &
diverse
housing
opportunities
Strategic
Objective 6C
Seek
alternative
funding
sources
Strategic
Objective 1D
Ensure work
processes and
policies are
aligned to
support
DHA’s
mission
Strategic
Objective 2D
Develop and
Internal
Control
system
Strategic
Objective 3D
Support
efforts to
improve
communities
Strategic
Objective 4D
Build stronger
levels of trust
and
transparency
Strategic
Objective 5D
Improve
availability of
and access to
opportunities
Strategic
Objective 6D
Develop a
pool of
qualified
builders,
development
partners and
contractors
2018 ANNUAL OPERATING BUDGET
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SECTION III THE BUDGET FOR 2018
2018 ANNUAL OPERATING BUDGET
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FY 2018 SUMMARY BUDGET
Fund/Entity
Operating
Revenue
% of Total
Revenue
Operating
Expenses
% of Total
Expenses
Operating
Income/
(Loss)
DHA Entities
AMPs (consolidated) 12,143,197$ 31.7% 11,543,497$ 30.6% 599,700$
Central Office Cost Center 3,706,746$ 9.7% 3,688,674$ 9.8% 18,072$
HCVP Administration 1,674,631$ 4.4% 1,759,642$ 4.7% (85,011)$
HCVP HAP 19,880,440$ 52.0% 19,880,440$ 52.7% -$
Development Ventures Incorporated 295,751$ 0.8% 289,181$ 0.8% 6,570$
Edgemont Elms Housing, Inc. 422,578$ 1.1% 428,158$ 1.1% (5,580)$
Goley Pointe, LLC 112,705$ 0.3% 110,965$ 0.3% 1,740$
Learning Assistance, Inc. 17,980$ 0.0% 12,000$ 0.0% 5,980$
Total 38,254,028$ 100.0% 37,712,557$ 100.0% 541,471$
2018 ANNUAL OPERATING BUDGET
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FY 2018 SUMMARY BUDGET
Fund/Entity
Operating
Revenue
% of Total
Revenue
Operating
Expenses
% of Total
Expenses
Operating
Income/
(Loss)
DHA Entities
AMPs (consolidated) 12,143,197$ 31.7% 11,543,497$ 30.6% 599,700$
Central Office Cost Center 3,706,746$ 9.7% 3,688,674$ 9.8% 18,072$
HCVP Administration 1,674,631$ 4.4% 1,759,642$ 4.7% (85,011)$
HCVP HAP 19,880,440$ 52.0% 19,880,440$ 52.7% -$
Development Ventures Incorporated 295,751$ 0.8% 289,181$ 0.8% 6,570$
Edgemont Elms Housing, Inc. 422,578$ 1.1% 428,158$ 1.1% (5,580)$
Goley Pointe, LLC 112,705$ 0.3% 110,965$ 0.3% 1,740$
Learning Assistance, Inc. 17,980$ 0.0% 12,000$ 0.0% 5,980$
Total 38,254,028$ 100.0% 37,712,557$ 100.0% 541,471$
2018 ANNUAL OPERATING BUDGET
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FY 2018/2017 SUMMARY BUDGET COMPARISON
FY2018 FY 2017
Fund/Entity
Operating
Revenue
Operating
Expenses
Operating
Income/
(Loss)
Operating
Revenue
Operating
Expenses
Operating
Income/
(Loss)
% Change -
Revenues
% Change -
Expenses
Low Income Public Housing 12,143,196 11,543,496 599,700 12,599,757 12,530,809 68,948 -4% -9%
Central Office Cost Center 3,706,746 3,688,674 18,072 3,331,325 3,113,903 217,422 10% 16%
HCVP Administration 1,674,631 1,759,642 (85,011) 1,771,551 1,771,551 - -6% -1%
HCVP HAP 19,880,440 19,880,440 - 18,658,761 18,658,761 - 6% 6%
Total (before eliminations) 37,405,013 36,872,252 532,761 36,361,394 36,075,024 286,370 3% 2%
Low Income Public Housing (excluding RAD) 10,472,348 10,156,191 316,157 - - -
Component Units
Development Ventures Incorporated 295,751 289,181 6,570 885,070 773,737 111,333 -199% -168%
Edgemont Elms Housing, Inc. 422,578 428,158 (5,580) 470,413 347,879 122,534 -11% 19%
Goley Pointe 112,705 110,965 1,740 - - - 100% 100%
Learning Assistance, Inc. 17,980 12,000 5,980 18,700 18,720 (20) -4% -56%
Total 849,014 840,304 8,710 1,374,183 1,140,336 233,847 -62% -36%
Non-DHA Entities
Preiss-Steele Place LLC 659,532 514,384 145,148 677,097 386,789 290,308 -3% 25%
Total 659,532$ 514,384$ 145,148$ 677,097$ 386,789$ 290,308$ -3% 25%
RAD Units
Damar Court 535,572 558,463 (22,891) 100% 100%
Morreene Road 1,113,536 1,082,970 30,566 100% 100%
Total 1,649,108$ 1,641,433$ 7,675$ -$ -$ -$
2018 ANNUAL OPERATING BUDGET
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LOW INCOME PUBLIC HOUSING
PROGRAM SUMMARY
The Authority manages several communities pursuant to HUD's Low Rent Public Housing program.
There are:
• 1,721 Public Housing units within 14 developments which are owned and managed by the
Authority;
• 135* Public Housing units within 4 developments that were constructed pursuant to a HOPE VI
Grant and managed by The Community Builders (TCB);
• 16* Public Housing units within 1 development owned by a component unit of the Authority,
Edgemont Elms Housing, Inc and managed by the Authority;
• 14* Public Housing units within 1 development owned by a subsidiary of Development
Ventures, Inc., Goley Pointe, LLC and managed by the Authority.
*Operating Subsidy for these units pass-through the Authority.
For the Public Housing program, HUD determines an allowable amount for the operation of a housing
community, factors in the amount the Authority may be able to collect from tenants for rent they pay,
and HUD then provides a subsidy to housing authorities to make up that difference.
According to the asset management model mandated by HUD, each AMP is treated as a separate
project for budgeting and accounting purposes. Although we present information and discuss budget
changes for the AMPs on a consolidated basis, each AMP's budget stands on its own.
For internal management purposes, and as reflected in this section for presentation of budgets, the
Authority has organized operations staff into management teams. Each management team is
responsible for their assigned AMPs. In some cases, like Management Team 3, this may be a single
property like McDougald Terrace. In other cases, like Management Team 1, there may be multiple
properties like Scattered Sites, JJ Henderson and Forest Hill Heights.
In cases where multiple properties are managed, costs for the management team are allocated. The
most common allocation is for salaries and related personnel costs, which are allocated based on the
number of bedrooms per community. Depending on the nature of the expense, the allocation may also
be done based on the number of units without regard to bedroom size.
On a consolidated basis, budgeted expenses for the AMPs for the FY2018 Budget are $11,671,320, an
increase of $254,779 (2%) from expected FY2017 expenses. At the time of this report, Damar and
Morreene are included under LIPH pending closings of RAD transactions. Budgeted revenues are
$12,143,197, a decrease of $378,867 (3%) from expected FY2017 revenues. This is budgeted to yield net
operating income of $471,877. In those cases, where individual AMPs have deficits, the consolidated
unrestricted net position (surplus) for 2018 will be used to balance the budget.
2018 ANNUAL OPERATING BUDGET
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LOW INCOME PUBLIC HOUSING
FY2018 BUDGET ASSUMPTIONS & PROJECTIONS
The following information provides additional detail regarding the projections of revenues and
expenses for the AMPs.
REVENUES:
1. Dwelling Rental income is budgeted based on actual rent roll information for January –
September 2017. The October and December rent roll amounts were projected using the
average of the previous 9 months. The numbers were then averaged over 12 months and
used to determine 2018 occupancy rates and rental income totals.
2. Unless otherwise specified, all other tenant revenue was budgeted using a 3% cost of
living adjustment increase on the estimated 2017 amounts.
3. Operating Subsidy is budgeted at 88% of the total approved eligibility for 2017. Final
funding for 2017 was unknown when the 2018 budget was being prepared. Although
the calculated eligibility amount for 2017 had been approved by HUD, the final awarded
amount may be prorated at less than 100%.
4. Capital Fund administrative revenue is budgeted at (-%5) decrease from actual receipts
in 2017. This decrease is due to anticipated budgetary cuts by the Federal government.
5. Other Revenue includes non-dwelling rental income and all other income received for
the AMP from non-tenants.
EXPENSES:
1. Administrative salaries - All administrative salaries are based on actual 2017 rates. Any
vacated positions are budgeted for using the mid-range salaries for the position.
2. Management Fees are based on projected occupancy levels multiplied by the 2015 HUD-
published Multifamily management fee rate of $53.20 per unit per month.
3. Bookkeeping fees are budgeted for by multiplying the maximum-allowed rate of $7.50
per unit per month by the projected leasing rates.
4. All other administrative expenses, unless specified by contract/agreement/management
estimate, are budgeted using a 3% cost of living adjustment increase from 2017.
5. Asset Management Fees are budgeted for AMPS that show excess cash from the 2016
audited financials. These fees can be charged to each AMP each month by multiplying
the number of ACC units by $10 per unit, subject to excess cash.
2018 ANNUAL OPERATING BUDGET
20
LOW INCOME PUBLIC HOUSING
CONSOLIDATED FY2018 BUDGET
LIPH - Consolidated
FY2018 Budget
2017
Budget
2017
Jan - Sep
2017
Estimated
2018
Recommended
Annual
Change
% Annual
Change
REVENUES
Total Tenant Revenue 3,963,241 2,846,406 4,042,603 4,086,250 43,648 1%
Total Fee Revenue 7,939,867 6,313,081 8,349,146 7,922,417 (426,729) -5%
Total Other Revenue 135,845 97,064 130,316 134,530 4,214 3%
TOTAL REVENUE 12,038,953 9,256,551 12,522,064 12,143,197 (378,867) -3%
EXPENSES
Total Operating - Administrative 3,260,582 2,442,708 3,403,520 3,330,056 (73,465) -2%
Total Tenant Services 262,403 154,530 221,160 204,120 (17,040) -8%
Total Utilities 3,522,957 2,176,782 2,902,341 2,982,769 80,428 3%
Total Maintenance 3,940,772 3,127,392 4,186,102 4,233,992 47,890 1%
Total Protective Services 104,750 1,424 1,899 72,921 71,022 3740%
Total Insurance Premiums 450,161 342,046 456,075 472,298 16,224 4%
Total Other General Expenses 442,695 110,733 245,444 247,341 1,897 1%
Total Interest Expense and Amortization Cost - - - - -
TOTAL OPERATING EXPENSES 11,984,320 8,355,615 11,416,541 11,543,497 126,956 1%
EXCESS of OPERATING REVENUE over OPERATING EXPENSES 54,633 900,937 1,105,523 599,700 (505,823) 26%
TOTAL EXPENSES 11,984,320 8,359,815 11,416,541 11,543,497 126,956 1%
EXCESS (DEFICIENCY) of TOTAL REVENUE over(under) TOTAL 54,633 900,937 1,105,523 599,700 (505,823)
(To)/From Unrestricted Net Position (54,633) (900,937) (1,105,523) (599,700) 505,823
Change in Net Position - - - - -
2018 ANNUAL OPERATING BUDGET
21
LOW INCOME PUBLIC HOUSING
PROPERTY MANAGEMENT TEAM 1
Management Team 1 is responsible for managing 3 properties
1. Scattered Sites | AMP #003 (1962)
This property is made up of 50 residential units and 1 management office/community center. It is a
designated senior housing development.
2. JJ Henderson | AMP #009 (1978)
This property is made up of 178 residential units and is also a designated senior housing development
3. Forest Hill Heights | AMP #014 (1981)
This property is made up of 55 residential units and is also a designated senior housing development
Staffing for Management Team 1 is comprised of the positions shown in the organizational chart below.
The costs for personnel are allocated as indicated in the pie graph.
18%
63%
19%
Scattered Sites JJ Henderson Forest Hills
2018 ANNUAL OPERATING BUDGET
22
LOW INCOME PUBLIC HOUSING
FY 2018 BUDGET – SCATTERED SITES
LIPH - Scattered Sites
FY2018 Budget
2017
Budget
2017
Jan - Sep
2017
Estimated
2018
Recommended
Annual
Change
% Annual
Change
REVENUES
Total Tenant Revenue 163,717 123,977 158,755 158,483 (273) 0%
Total Fee Revenue 154,042 116,313 152,490 144,688 (7,802) -5%
Total Other Revenue - 5 10 10 0 3%
TOTAL REVENUE 317,759 240,295 311,255 303,181 (8,074) -3%
EXPENSES
Total Operating - Administrative 98,955 68,338 100,026 97,682 (2,344) -2%
Total Tenant Services 7,250 4,500 6,000 6,000 - 0%
Total Utilities 73,198 60,631 80,842 83,264 2,423 3%
Total Maintenance 95,805 57,247 92,580 80,196 (12,384) -13%
Total Protective Services 2,200 - - - -
Total Insurance Premiums 8,806 6,016 8,022 8,326 305 4%
Total Other General Expenses 13,000 - 7,672 7,398 (273) -4%
Total Interest Expense and Amortization Cost - - - - -
TOTAL OPERATING EXPENSES 299,214 196,733 295,141 282,866 (12,275) -4%
EXCESS of OPERATING REVENUE over OPERATING EXPENSES 18,545 43,563 16,114 20,315 4,200 26%
TOTAL EXPENSES 299,214 196,733 295,141 282,866 (12,275) -4%
EXCESS (DEFICIENCY) of TOTAL REVENUE over(under) TOTAL 18,545 43,563 16,114 20,315 4,200
(To)/From Unrestricted Net Position (18,545) (43,563) (16,114) (20,315) (4,200)
Change in Net Position - - - - -
2018 ANNUAL OPERATING BUDGET
23
LOW INCOME PUBLIC HOUSING
FY 2018 BUDGET – JJ HENDERSON
LIPH - JJ Henderson
FY2018 Budget
2017
Budget
2017
Jan - Sep
2017
Estimated
2018
Recommended
Annual
Change
% Annual
Change
REVENUES
Total Tenant Revenue 527,304 341,546 465,971 493,252 27,282 6%
Total Fee Revenue 475,358 367,312 480,580 455,999 (24,581) -5%
Total Other Revenue 38,681 24,696 32,928 33,916 988 3%
TOTAL REVENUE 1,041,343 733,554 979,479 983,167 3,688 0%
EXPENSES
Total Operating - Administrative 342,797 232,025 316,249 341,997 25,748 8%
Total Tenant Services 25,665 16,020 21,240 21,360 120 1%
Total Utilities 270,668 165,205 220,266 226,874 6,608 3%
Total Maintenance 356,981 254,707 339,609 357,481 17,872 5%
Total Protective Services 6,900 - - 6,000 6,000
Total Insurance Premiums 48,749 36,250 48,334 50,064 1,730 4%
Total Other General Expenses 27,939 1,628 26,212 28,720 2,508 10%
Total Interest Expense and Amortization Cost - - - - -
TOTAL OPERATING EXPENSES 1,079,699 705,835 971,909 1,032,496 60,587 6%
EXCESS of OPERATING REVENUE over OPERATING EXPENSES (38,356) 27,719 7,570 (49,329) (56,899) -752%
TOTAL EXPENSES 1,079,699 705,835 971,909 1,032,496 60,587 6%
EXCESS (DEFICIENCY) of TOTAL REVENUE over(under) TOTAL (38,356) 27,719 7,570 (49,329) (56,899)
(To)/From Unrestricted Net Position 38,356 (27,719) (7,570) 49,329 56,899
Change in Net Position - - - - -
Recommended
2018 ANNUAL OPERATING BUDGET
24
LOW INCOME PUBLIC HOUSING
FY 2018 BUDGET – FOREST HILL HEIGHTS
LIPH - Forest Hills
FY2018 Budget
2017
Budget
2017
Jan - Sep
2017
Estimated
2018
Recommended
Annual
Change
% Annual
Change
REVENUES
Total Tenant Revenue 188,256 147,865 195,610 196,069 458 0%
Total Fee Revenue 140,122 111,198 145,434 137,996 (7,438) -5%
Total Other Revenue 2,153 1,597 2,130 2,194 64 3%
TOTAL REVENUE 330,531 260,661 343,174 336,258 (6,916) -2%
EXPENSES
Total Operating - Administrative 104,528 72,295 95,685 104,488 8,803 9%
Total Tenant Services 7,975 4,950 6,600 6,600 - 0%
Total Utilities 103,149 64,043 85,388 87,949 2,562 3%
Total Maintenance 107,392 84,262 112,349 122,767 10,419 9%
Total Protective Services 1,400 - - 500 500
Total Insurance Premiums 9,064 6,608 8,811 9,186 376 4%
Total Other General Expenses 9,511 15 10,947 10,625 (321) -3%
Total Interest Expense and Amortization Cost - - - - -
TOTAL OPERATING EXPENSES 343,019 232,172 319,779 342,116 22,337
EXCESS of OPERATING REVENUE over OPERATING EXPENSES (12,488) 28,489 23,395 (5,858) (29,253)
TOTAL EXPENSES 343,019 232,172 319,779 342,116 22,337
EXCESS (DEFICIENCY) of TOTAL REVENUE over(under) TOTAL (12,488) 28,489 23,395 (5,858) (29,253)
(To)/From Unrestricted Net Position 12,488 (28,489) (23,395) 5,858 29,253
Change in Net Position - - - - -
Recommended
2018 ANNUAL OPERATING BUDGET
25
LOW INCOME PUBLIC HOUSING
PROPERTY MANAGEMENT TEAM 2
Management Team 2 is responsible for managing 2 properties
1. Cornwallis Road | AMP #005 (1967)
This property is made up of 200 residential units and 1 management office/community
center.
2. Laurel Oaks | AMP #015 (2004)
This property is made up of 30 residential units and 1 management office. It is a
designated senior housing development
Staffing for Management Team 1 is comprised of the positions shown in the organizational chart below.
The costs for personnel are allocated as indicated in the pie graph.
86%
14%
Cornwallis Laurel Oaks
2018 ANNUAL OPERATING BUDGET
26
LOW INCOME PUBLIC HOUSING
FY2018 BUDGET – CORNWALLIS
LIPH - Cornwallis
FY2018 Budget
2017
Budget
2017
Jan - Sep
2017
Estimated
2018
Recommended
Annual
Change
% Annual
Change
REVENUES
Total Tenant Revenue 374,958 247,532 379,008 393,534 14,526 4%
Total Fee Revenue 1,181,432 936,322 1,219,312 1,156,968 (62,344) -5%
Total Other Revenue 31,080 56 74 76 2 2%
TOTAL REVENUE 1,587,470 1,183,909 1,598,395 1,550,579 (47,816) -3%
EXPENSES
Total Operating - Administrative 413,668 322,579 430,618 460,350 29,732 7%
Total Tenant Services 28,565 18,000 23,640 24,000 360 2%
Total Utilities 587,069 302,925 403,873 415,990 12,116 3%
Total Maintenance 508,548 556,957 742,609 770,441 27,832 4%
Total Protective Services 4,500 - - 5,000 5,000
Total Insurance Premiums 71,663 64,728 86,305 87,595 1,290 1%
Total Other General Expenses 8,000 6,444 8,592 8,850 258 3%
Total Interest Expense and Amortization Cost - - - - -
TOTAL OPERATING EXPENSES 1,622,013 1,271,634 1,695,638 1,772,226 76,588 5%
EXCESS of OPERATING REVENUE over OPERATING EXPENSES (34,543) (87,724) (97,243) (221,647) (124,404)
TOTAL EXPENSES 1,622,013 1,271,634 1,695,638 1,772,226 76,588
EXCESS (DEFICIENCY) of TOTAL REVENUE over(under) TOTAL (34,543) (87,724) (97,243) (221,647) (124,404)
(To)/From Unrestricted Net Position 34,543 87,724 97,243 221,647 124,404
Change in Net Position - - - - -
Recommended
2018 ANNUAL OPERATING BUDGET
27
LOW INCOME PUBLIC HOUSING
FY2018 BUDGET – LAUREL OAKS
LIPH - Laurel Oaks
FY2018 Budget
2017
Budget
2017
Jan - Sep
2017
Estimated
2018
Recommended
Annual
Change
% Annual
Change
REVENUES
Total Tenant Revenue 80,598 93,197 117,223 123,981 6,758 6%
Total Fee Revenue 177,365 140,332 182,536 173,206 (9,330) -5%
Total Other Revenue 3,000 9 12 12 0 3%
TOTAL REVENUE 260,963 233,538 299,771 297,199 (2,572) -1%
EXPENSES
Total Operating - Administrative 72,768 55,739 78,488 81,339 2,851 4%
Total Tenant Services 21,828 2,700 3,600 3,600 - 0%
Total Utilities 111,957 60,185 80,247 82,654 2,407 3%
Total Maintenance 85,695 68,039 90,719 110,506 19,787 22%
Total Protective Services 2,800 - - 1,500 1,500
Total Insurance Premiums 7,955 5,821 7,761 7,911 150 2%
Total Other General Expenses 2,000 45,328 62,583 64,785 2,202 4%
Total Interest Expense and Amortization Cost - - - - -
TOTAL OPERATING EXPENSES 305,003 237,812 323,397 352,294 28,897
EXCESS of OPERATING REVENUE over OPERATING EXPENSES (44,040) (4,274) (23,626) (55,095) (31,469)
TOTAL EXPENSES 305,003 237,812 323,397 352,294 28,897
EXCESS (DEFICIENCY) of TOTAL REVENUE over(under) TOTAL (44,040) (4,274) (23,626) (55,095) (31,469)
(To)/From Unrestricted Net Position 44,040 4,274 23,626 55,095 31,469
Change in Net Position - - - - -
Recommended
2018 ANNUAL OPERATING BUDGET
28
LOW INCOME PUBLIC HOUSING
PROPERTY MANAGEMENT TEAM 3
Management Team 3 is responsible for managing 1 property
1. McDougald Terrace | AMP #001 (1959)
This property is made up of 360 residential units and 1 management office/community
center.
Staffing for Management Team 3 is comprised of the positions shown in the organizational chart below.
The costs for personnel are allocated as indicated in the pie graph.
100%
McDougald
2018 ANNUAL OPERATING BUDGET
29
LOW INCOME PUBLIC HOUSING
FY2018 BUDGET – MCDOUGALD TERRACE
LIPH - McDougald
FY2018 Budget
2017
Budget
2017
Jan - Sep
2017
Estimated
2018
Recommended
Annual
Change
% Annual
Change
REVENUES
Total Tenant Revenue 650,449 515,773 774,251 773,547 (704) 0%
Total Fee Revenue 1,979,649 1,563,296 2,169,920 2,059,112 (110,808) -5%
Total Other Revenue 1,673 1,341 2,681 2,756 74 3%
TOTAL REVENUE 2,631,771 2,080,410 2,946,853 2,835,414 (111,438) -4%
EXPENSES
Total Operating - Administrative 703,458 523,305 673,904 722,982 49,077 7%
Total Tenant Services 52,175 32,400 43,200 41,280 (1,920) -4%
Total Utilities 638,039 467,894 623,858 642,574 18,716 3%
Total Maintenance 973,383 697,517 930,023 930,567 544 0%
Total Protective Services 27,200 195 260 25,268 25,008 9623%
Total Insurance Premiums 79,667 56,211 74,948 77,949 3,001 4%
Total Other General Expenses 30,000 11,007 22,135 20,405 (1,729) -8%
Total Interest Expense and Amortization Cost - - - - -
TOTAL OPERATING EXPENSES 2,503,922 1,788,529 2,368,329 2,461,025 92,697 4%
EXCESS of OPERATING REVENUE over OPERATING EXPENSES 127,849 291,880 578,524 374,389 (204,135)
TOTAL EXPENSES 2,503,922 1,788,529 2,368,329 2,461,025 92,697
EXCESS (DEFICIENCY) of TOTAL REVENUE over(under) TOTAL 127,849 291,880 578,524 374,389 (204,135)
(To)/From Unrestricted Net Position (127,849) (291,880) (578,524) (374,389) 204,135
Change in Net Position - - - - -
Recommended
2018 ANNUAL OPERATING BUDGET
30
LOW INCOME PUBLIC HOUSING
PROPERTY MANAGEMENT TEAM 5
Management Team 5 is responsible for managing 2 properties
1. Morreene Road | AMP #010 (1968)
This property is made up of 224 residential units and 1 management office/community
center.
2. Damar Court | AMP #011 (1967)
This property is made up of 30 residential units and 1 management office. It is a
designated senior housing development
Staffing for Management Team 5 is comprised of the positions shown in the organizational chart below.
The costs for personnel are allocated as indicated in the pie graph.
These budgets are pre-RAD – Morreene and Damar are the first two properties to convert to RAD with
anticipated closings before December 2017.
56%
44%
Morreene Road Damar Court
2018 ANNUAL OPERATING BUDGET
31
LOW INCOME PUBLIC HOUSING
FY 2018 BUDGET – MORREENE ROAD
LIPH - Morreene Road
FY2018 Budget
2017
Budget
2017
Jan - Sep
2017
Estimated
2018
Recommended
Annual
Change
% Annual
Change
REVENUES
Total Tenant Revenue 425,334 311,387 414,365 414,680 315 0%
Total Fee Revenue 595,557 472,810 602,854 572,077 (30,777) -5%
Total Other Revenue 4,200 33,238 44,317 45,647 1,330 3%
TOTAL REVENUE 1,025,091 817,434 1,061,536 1,032,404 (29,132) -3%
EXPENSES
Total Operating - Administrative 309,737 276,475 368,097 309,285 (58,812) -16%
Total Tenant Services 29,405 20,160 26,880 26,880 - 0%
Total Utilities 237,706 148,311 197,748 203,681 5,932 3%
Total Maintenance 192,653 155,349 207,133 196,435 (10,697) -5%
Total Protective Services 4,000 - - 3,500 3,500
Total Insurance Premiums 31,085 22,698 30,265 31,536 1,272 4%
Total Other General Expenses 220,295 - 20,588 19,994 (594) -3%
Total Interest Expense and Amortization Cost - - - - -
TOTAL OPERATING EXPENSES 1,024,881 622,994 850,710 791,311 (59,399)
EXCESS of OPERATING REVENUE over OPERATING EXPENSES 210 194,441 210,826 241,093 30,267
TOTAL EXPENSES 1,024,881 622,994 850,710 791,311 (59,399)
EXCESS (DEFICIENCY) of TOTAL REVENUE over(under) TOTAL 210 194,441 210,826 241,093 30,267
(To)/From Unrestricted Net Position (210) (194,441) (210,826) (241,093) (30,267)
Change in Net Position - - - - -
Recommended
2018 ANNUAL OPERATING BUDGET
32
LOW INCOME PUBLIC HOUSING
FY 2018 BUDGET – DAMAR COURT
LIPH - Damar Court
FY2018 Budget
2017
Budget
2017
Jan - Sep
2017
Estimated
2018
Recommended
Annual
Change
% Annual
Change
REVENUES
Total Tenant Revenue 183,710 132,830 176,372 175,379 (992) -1%
Total Fee Revenue 489,521 373,826 487,991 463,037 (24,954) -5%
Total Other Revenue - 20 27 27 1 3%
TOTAL REVENUE 673,231 506,676 664,389 638,444 (25,946) -4%
EXPENSES
Total Operating - Administrative 194,189 152,701 199,167 178,110 (21,057) -11%
Total Tenant Services 14,645 9,180 18,360 12,240 (6,120) -33%
Total Utilities 202,575 115,725 154,300 158,929 4,629 3%
Total Maintenance 203,125 197,246 262,995 218,583 (44,412) -17%
Total Protective Services 10,000 195 260 2,768 2,508 965%
Total Insurance Premiums 23,204 16,126 21,502 23,448 1,946 9%
Total Other General Expenses 25,283 1,395 2,419 1,916 (503) -21%
Total Interest Expense and Amortization Cost - - - - -
TOTAL OPERATING EXPENSES 673,021 492,568 659,003 595,994 (63,009)
EXCESS of OPERATING REVENUE over OPERATING EXPENSES 210 14,107 5,386 42,449 37,063
TOTAL EXPENSES 673,021 492,568 659,003 595,994 (63,009)
EXCESS (DEFICIENCY) of TOTAL REVENUE over(under) TOTAL 210 14,107 5,386 42,449 37,063
(To)/From Unrestricted Net Position (210) (14,107) (5,386) (42,449) (37,063)
Change in Net Position - - - - -
Recommended
2018 ANNUAL OPERATING BUDGET
33
LOW INCOME PUBLIC HOUSING
PROPERTY MANAGEMENT TEAM 6
Management Team 6 is responsible for managing 3 properties
1. Oldham Towers | AMP #004 (1967)
This property is made up of 106 residential units and 1 community center.
2. Liberty Street | AMP #006 (1972)
This property is made up of 108 residential units and 1 management office.
3. Hoover Road | AMP #008 (1969)
This property is made up of 54 residential units and 1 management office.
Staffing for Management Team 6 is comprised of the positions shown in the organizational chart below.
The costs for personnel are allocated as indicated in the pie graph.
22%
43%
35%
Oldham Towers Liberty Street Hoover Road
2018 ANNUAL OPERATING BUDGET
34
LOW INCOME PUBLIC HOUSING
FY2018 BUDGET – OLDHAM TOWERS
LIPH - Oldham
FY2018 Budget
2017
Budget
2017
Jan - Sep
2017
Estimated
2018
Recommended
Annual
Change
% Annual
Change
REVENUES
Total Tenant Revenue 264,426 184,713 234,873 235,788 914 0%
Total Fee Revenue 311,807 252,486 330,993 314,062 (16,931) -5%
Total Other Revenue 10,600 2,031 2,708 2,789 81 3%
TOTAL REVENUE 586,833 439,229 568,574 552,638 (15,936) -3%
EXPENSES
Total Operating - Administrative 172,644 127,998 170,664 167,276 (3,388) -2%
Total Tenant Services 15,325 9,540 19,080 12,720 (6,360) -33%
Total Utilities 117,411 72,254 96,342 99,224 2,882 3%
Total Maintenance 179,740 128,476 171,301 176,772 5,472 3%
Total Protective Services 12,000 390 520 5,000 4,480 862%
Total Insurance Premiums 20,505 14,832 19,776 20,477 701 4%
Total Other General Expenses 23,681 4,470 19,064 19,024 (40) 0%
Total Interest Expense and Amortization Cost - - - - -
TOTAL OPERATING EXPENSES 541,306 357,960 496,746 500,494 3,747 1%
EXCESS of OPERATING REVENUE over OPERATING EXPENSES 45,527 81,270 71,828 52,145 (19,683)
TOTAL EXPENSES 541,306 357,960 496,746 500,494 3,747
EXCESS (DEFICIENCY) of TOTAL REVENUE over(under) TOTAL 45,527 81,270 71,828 52,145 (19,683)
(To)/From Unrestricted Net Position (45,527) (81,270) (71,828) (52,145) 19,683
Change in Net Position - - - - -
Recommended
2018 ANNUAL OPERATING BUDGET
35
LOW INCOME PUBLIC HOUSING
FY2018 BUDGET – LIBERTY
LIPH - Liberty
FY2018 Budget
2017
Budget
2017
Jan - Sep
2017
Estimated
2018
Recommended
Annual
Change
% Annual
Change
REVENUES
Total Tenant Revenue 267,186 192,443 248,090 249,582 1,492 1%
Total Fee Revenue 545,945 441,523 577,723 548,172 (29,551) -5%
Total Other Revenue 5,000 4,201 5,601 5,769 168 3%
TOTAL REVENUE 818,131 638,167 831,415 803,524 (27,891) -3%
EXPENSES
Total Operating - Administrative 214,739 162,103 242,856 230,999 (11,857) -5%
Total Tenant Services 15,660 9,720 12,960 12,960 - 0%
Total Utilities 220,645 141,485 188,647 194,306 5,659 3%
Total Maintenance 268,484 178,337 237,783 245,263 7,480 3%
Total Protective Services 7,000 - - 5,000 5,000
Total Insurance Premiums 25,412 18,944 25,259 26,218 959 4%
Total Other General Expenses 19,633 29,442 44,456 45,195 739 2%
Total Interest Expense and Amortization Cost - - - - -
TOTAL OPERATING EXPENSES 771,573 540,032 751,961 759,941 7,980 1%
EXCESS of OPERATING REVENUE over OPERATING EXPENSES 46,558 98,135 79,454 43,583 (35,871)
TOTAL EXPENSES 771,573 540,032 751,961 759,941 7,980 1%
EXCESS (DEFICIENCY) of TOTAL REVENUE over(under) TOTAL 46,558 98,135 79,454 43,583 (35,871)
(To)/From Unrestricted Net Position (46,558) (98,135) (79,454) (43,583) 35,871
Change in Net Position - - - - -
Recommended
2018 ANNUAL OPERATING BUDGET
36
LOW INCOME PUBLIC HOUSING
FY2018 BUDGET – HOOVER
LIPH - Hoover
FY2018 Budget
2017
Budget
2017
Jan - Sep
2017
Estimated
2018
Recommended
Annual
Change
% Annual
Change
REVENUES
Total Tenant Revenue 102,546 72,084 110,262 107,541 (2,721) -2%
Total Fee Revenue 355,909 291,987 380,448 360,995 (19,453) -5%
Total Other Revenue 4,000 3,425 4,567 4,704 137 3%
TOTAL REVENUE 462,455 367,496 495,277 473,240 (22,037) -4%
EXPENSES
Total Operating - Administrative 136,051 100,385 177,834 141,197 (36,637) -21%
Total Tenant Services 7,830 4,860 9,720 6,480 (3,240) -33%
Total Utilities 165,467 99,819 133,092 137,084 3,993 3%
Total Maintenance 198,586 146,576 195,435 202,671 7,236 4%
Total Protective Services 6,000 195 260 2,768 2,508 965%
Total Insurance Premiums 16,040 12,150 16,200 16,858 658 4%
Total Other General Expenses 10,400 701 935 963 28 3%
Total Interest Expense and Amortization Cost - - - - -
TOTAL OPERATING EXPENSES 540,374 364,686 533,475 508,021 (25,454) -5%
EXCESS of OPERATING REVENUE over OPERATING EXPENSES (77,919) 2,810 (38,198) (34,781) 3,417
TOTAL EXPENSES 540,374 364,686 533,475 508,021 (25,454) -5%
EXCESS (DEFICIENCY) of TOTAL REVENUE over(under) TOTAL (77,919) 2,810 (38,198) (34,781) 3,417
(To)/From Unrestricted Net Position 77,919 (2,810) 38,198 34,781 (3,417)
Change in Net Position - - - - -
Recommended
2018 ANNUAL OPERATING BUDGET
37
LOW INCOME PUBLIC HOUSING
PROPERTY MANAGEMENT TEAM 7
Management Team 7 is responsible for managing 2 properties
1. Oxford Manor | AMP #012 (1972)
This property is made up of 172 residential units and 1 management office/community
center.
2. Club Boulevard | AMP #007 (1969)
This property is made up of 77 residential units and 1 management office.
Staffing for Management Team 7 is comprised of the positions shown in the organizational chart below.
The costs for personnel are allocated as indicated in the pie graph.
30%
70%
Club Blvd Oxford Manor
2018 ANNUAL OPERATING BUDGET
38
LOW INCOME PUBLIC HOUSING
FY2018 BUDGET – CLUB BOULEVARD
LIPH - Club Boulevard
FY2018 Budget
2017
Budget
2017
Jan - Sep
2017
Estimated
2018
Recommended
Annual
Change
% Annual
Change
REVENUES
Net Tenant Rental Revenue 284,160 199,322 282,178 280,800 (1,378) 0%
Total Tenant Revenue 289,033 207,258 292,760 291,699 (1,061) 0%
Total Fee Revenue 437,989 355,848 461,619 438,023 (23,596) -5%
Total Other Revenue 7,023 3,249 4,332 4,774 442 10%
TOTAL REVENUE 734,045 566,355 758,711 734,496 (24,215) -3%
EXPENSES
Total Operating - Administrative 143,932 109,959 146,329 159,129 4,367 9%
Total Tenant Services 11,165 6,930 9,240 9,240 - 0%
Total Utilities 269,135 169,417 225,889 232,666 6,777 3%
Total Maintenance 221,951 202,130 269,503 273,623 4,119 2%
Total Protective Services 10,500 - - 5,000 5,000
Total Insurance Premiums 66,792 51,117 68,156 70,393 2,237 3%
Total Other General Expenses 10,724 4,790 12,016 11,392 (624) -5%
Total Interest Expense and Amortization Cost - - - - -
TOTAL OPERATING EXPENSES 734,199 544,342 731,133 761,442 21,877 4%
EXCESS of OPERATING REVENUE over OPERATING EXPENSES (154) 22,013 27,579 (26,946) (46,092)
TOTAL EXPENSES 734,199 544,342 731,133 761,442 21,877 4%
EXCESS (DEFICIENCY) of TOTAL REVENUE over(under) TOTAL (154) 22,013 27,579 (26,946) (46,092)
(To)/From Unrestricted Net Position 154 (22,013) (27,579) 26,946 46,092
Change in Net Position - - - - -
Recommended
2018 ANNUAL OPERATING BUDGET
39
LOW INCOME PUBLIC HOUSING
FY2018 BUDGET – OXFORD MANOR
LIPH - Oxford Manor
FY2018 Budget
2017
Budget
2017
Jan - Sep
2017
Estimated
2018
Recommended
Annual
Change
% Annual
Change
REVENUES
Total Tenant Revenue 435,972 271,999 468,492 466,582 (1,909) 0%
Total Fee Revenue 1,093,571 888,064 1,154,602 1,095,573 (59,029)
Total Other Revenue 28,435 23,196 30,928 31,855 928 3%
TOTAL REVENUE 1,557,978 1,183,258 1,654,021 1,594,011 (60,010) -4%
EXPENSES
Total Operating - Administrative 350,194 235,009 398,077 332,178 (65,899) -17%
Total Tenant Services 24,795 15,480 20,520 20,640 120 1%
Total Utilities 525,182 308,369 411,159 416,863 5,704 1%
Total Maintenance 543,577 399,754 533,005 546,071 13,066 2%
Total Protective Services 10,250 450 600 10,618 10,018
Total Insurance Premiums 41,041 30,420 40,560 42,162 1,602
Total Other General Expenses 40,498 5,512 7,350 7,570 220 3%
Total Interest Expense and Amortization Cost - - - - -
TOTAL OPERATING EXPENSES 1,535,537 994,994 1,411,270 1,376,101 (35,169)
EXCESS of OPERATING REVENUE over OPERATING EXPENSES 22,441 188,264 242,751 217,910 (24,841)
TOTAL EXPENSES 1,535,537 999,194 1,411,270 1,376,101 (35,169)
EXCESS (DEFICIENCY) of TOTAL REVENUE over(under) TOTAL 22,441 188,264 242,751 217,910 (24,841)
(To)/From Unrestricted Net Position (22,441) (188,264) (242,751) (217,910) 24,841
Change in Net Position - - - - -
Recommended
2018 ANNUAL OPERATING BUDGET
40
AFFORDABLE HOUSING
PROGRAM SUMMARY
Through its commitment to increase and maintain affordability in housing within the City of Durham,
the Authority has been instrumental in the development/redevelopment of affordable housing. The
Authority, through Management Agreements, manages the following properties:
• Preiss Steele Place;
• Edgemont Elms
• Goley Pointe
• *Worth Street
*This property was redeveloped by Development Ventures Inc., and is a Public Housing unit managed
by Property Management Team 4.
The Authority has a dedicated and trained staff, Property Management Team 4, that is responsible for
managing these properties that are not conventional public housing properties.
As with the other property management teams, salaries and related personnel costs are allocated to
these properties by bedroom size.
Preiss Steele Place is a Low Income Housing Tax Credit (LIHTC) development with 82 units. The
property is also under a Project-Based contract with the Authority’s HCV Program. All units in this
development are eligible to receive rental assistance.
Edgemont Elms is an affordable housing development with 58 units. 16 of these units are Public
Housing units with operating subsidy that flows through the Authority. The remaining units market
rate with some tenants receiving tenant-based rental assistance through the Authority’s HCV Program.
Goley Pointe is also an affordable housing development which has 20 units. Of these, 14 of them are
Public Housing units with operating subsidy that flows through the Authority. The remaining units are
marker rate with some tenants receiving tenant-based rental assistance through the Authority’s HCV
Program.
Worth Street is a public housing unit that was redeveloped by DVI. The unit is managed by Property
Management Team 4.
It is important to note that although Authority staff manage these affordable housing properties, all
except Worth Street are owned by separate legal entities. Edgemont Elms and Goley Pointe are
considered component units of the Authority and are reported on the annual Financial Data Schedule
submitted to HUD.
2018 ANNUAL OPERATING BUDGET
41
AFFORDABLE HOUSING
FY2018 BUDGET ASSUMPTIONS & PROJECTIONS
The following information provides additional detail regarding the projections of revenues and
expenses budgeted for the Affordable Housing properties.
REVENUES:
1. Dwelling Rental income for FY2018 is budgeted based on the January 2017 –
September 2017 rent rolls, with an estimate for November and December 2017. The
average of the total calculated was used to budget for 2018.
2. Dwelling Rental Income, also includes all rental assistance received from other
programs.
3. For Edgemont Elms and Goley Pointe, operating subsidy is budgeted for the public
housing units at 88% of 2017 eligibility.
EXPENSES:
1. Administrative salaries and all personnel related costs are allocated to the properties
based on the number of bedrooms per property.
2. Management Fees for Preiss Steele Place are charged according to the management
agreement which requires a charge of 6% of all dwelling rental income received at
the property to be billed as fees.
3. Management Fees for Edgemont Elms are charged according to the management
agreement which requires a charge of 6% of all dwelling rental income received at
the property to be billed as fees.
4. Management Fees for Goley Pointe are charged according to the management
agreement which requires a charge of 6% of all dwelling rental income received at
the property to be billed as fees.
5. Preiss Steele Place, Edgemont Elms and Goley Pointe are charged a blended Resident
Services Fee of $24.45 per unit per month. This is for Resident supportive services
which include Safety and Security services provided to the property.
6. Edgemont Elms and Goley Pointe are charged $13.86 per unit per month for
Compliance Services
**The Public Housing Units (16) for Edgemont Elms are tentatively set to be converted to RAD – PBRA
effective December 1, 2017. The management fee charged to the property will be decreased to 5.85% as
per HUD Multifamily regulations.
2018 ANNUAL OPERATING BUDGET
42
AFFORDABLE HOUSING
PROPERTY MANAGEMENT TEAM 4
Management Team 4 is responsible for managing 4 properties
1. Worth Street | AMP #032 (2014)
2. Preiss Steele Place | AFH #900 (1993)
This property is made up of 82 residential units. It is a LIHTC development and is also
under a Project-Based Voucher Contract with the HCV Program
3. Edgemont Elms | AFH #800 (1989)
This property is made up of 58 residential units, 16 of which are Public Housing
4. Goley Pointe | AFH #700 (2016)
This property is made up of 20 residential units, 14 of which are Public Housing
Staffing for Management Team 7 is comprised of the positions shown in the organizational chart below.
The costs for personnel are allocated as indicated in the pie graph.
74%
2%
24%0%
Edgemont Elms 1010 Worth St
Goley Point Preiss-Steele Place
2018 ANNUAL OPERATING BUDGET
43
AFFORDABLE HOUSING
FY2018 BUDGET – WORTH STREET
LIPH - 1010 Worth
FY2018 Budget
2017
Budget
2017
Jan - Sep
2017
Estimated
2018
Recommended
Annual
Change
% Annual
Change
REVENUES
Total Tenant Revenue 9,752 3,804 5,715 6,132 417 7%
Total Fee Revenue 1,600 1,764 2,644 2,509 (135) -5%
Total Other Revenue - - - - -
TOTAL REVENUE 11,352 5,568 8,359 8,641 282 3%
EXPENSES
Total Operating - Administrative 2,922 3,798 5,527 3,044 (2,482) -45%
Total Tenant Services 120 90 120 120 - 0%
Total Utilities 756 518 691 711 20 3%
Total Maintenance 4,852 794 1,059 2,615 1,556 147%
Total Protective Services - - - - -
Total Insurance Premiums 178 124 179 176 (3) -2%
Total Other General Expenses 1,731 - 476 503 27 6%
Total Interest Expense and Amortization Cost - - - - -
TOTAL OPERATING EXPENSES 10,559 5,324 8,050 7,169 (882)
EXCESS of OPERATING REVENUE over OPERATING EXPENSES 793 244 309 1,472 1,164
TOTAL EXPENSES 10,559 5,324 8,050 7,169 (882)
EXCESS (DEFICIENCY) of TOTAL REVENUE over(under) TOTAL 793 244 309 1,472 1,164
(To)/From Unrestricted Net Position (793) (244) (309) (1,472) (1,164)
Change in Net Position - - - - -
Recommended
2018 ANNUAL OPERATING BUDGET
44
AFFORDABLE HOUSING
FY2018 BUDGET – PREISS STEELE PLACE
AFH - Preiss Steele Place
FY2018 Budget
2017
Budget
2017
Jan - Sep
2017
Estimated
2018
Recommended
Annual
Change
% Annual
Change
REVENUES
Total Tenant Revenue 669,307 478,357 651,452 651,522 70 0%
Total Fee Revenue - - - - -
Total Other Revenue 8,000 4,411 8,821 8,010 (811) -9%
TOTAL REVENUE 677,307 482,768 660,273 659,532 (742) 0%
EXPENSES
Total Operating - Administrative 163,893 109,978 142,207 164,122 21,915 15%
Total Tenant Services 6,250 5,794 8,195 8,441 246 3%
Total Utilities 60,000 54,607 72,810 74,994 2,184 3%
Total Maintenance 128,009 75,642 100,857 128,298 27,441 27%
Total Protective Services - 660 880 906 26 3%
Total Insurance Premiums 18,735 19,817 26,423 26,255 (168) -1%
Total Other General Expenses 7,280 4,261 5,681 5,852 170 3%
Total Interest Expense and Amortization Cost - 76,832 102,443 105,516 3,073 3%
TOTAL OPERATING EXPENSES 384,167 347,592 459,495 514,384 54,888
EXCESS of OPERATING REVENUE over OPERATING EXPENSES 293,140 135,176 200,778 145,148 (55,630)
TOTAL EXPENSES 384,167 347,592 459,495 514,384 54,888
EXCESS (DEFICIENCY) of TOTAL REVENUE over(under) TOTAL 293,140 135,176 200,778 145,148 (55,630)
(To)/From Unrestricted Net Position (293,140) (135,176) (200,778) (145,148) 55,630
Change in Net Position - - - - -
Recommended
2018 ANNUAL OPERATING BUDGET
45
AFFORDABLE HOUSING
FY2018 BUDGET – EDGEMONT ELMS
AFH - Edgemont Elms
FY2018 Budget
2017
Budget
2017
Jan - Sep
2017
Estimated
2018
Recommended
Annual
Change
% Annual
Change
REVENUES
Total Tenant Revenue 385,382 259,233 345,643 345,571 (72) 0%
Total Fee Revenue 71,826 51,918 69,150 65,608 (3,542)
Total Other Revenue 13,415 5,533 11,067 11,399 332 3%
TOTAL REVENUE 470,623 316,684 425,860 422,578 (3,282) -1%
EXPENSES
Total Operating - Administrative 143,307 117,680 156,906 160,993 4,087
Total Tenant Services 1,920 1,440 1,920 1,920 - 0%
Total Utilities 53,416 29,558 39,411 40,594 1,182 3%
Total Maintenance 112,930 82,704 110,272 113,726 3,454 3%
Total Protective Services 2,400 - - 2,400 2,400
Total Insurance Premiums 11,934 8,681 11,575 12,108 533 5%
Total Other General Expenses 21,972 29,253 69,379 70,431 1,052 2%
Total Interest Expense and Amortization Cost - 18,922 25,229 25,986 757 3%
TOTAL OPERATING EXPENSES 347,879 288,239 414,693 428,158 13,465
EXCESS of OPERATING REVENUE over OPERATING EXPENSES 122,744 28,445 11,167 (5,580) (16,747)
TOTAL EXPENSES 347,879 288,239 414,693 428,158 13,465
EXCESS (DEFICIENCY) of TOTAL REVENUE over(under) TOTAL 122,744 28,445 11,167 (5,580) (16,747)
(To)/From Unrestricted Net Position (122,744) (28,445) (11,167) 5,580 16,747
Change in Net Position - - - - -
Recommended
2018 ANNUAL OPERATING BUDGET
46
AFFORDABLE HOUSING
FY2018 BUDGET – GOLEY POINTE
AFH - Goley Pointe
FY2018 Budget
2017
Budget
2017
Jan - Sep
2017
Estimated
2018
Recommended
Annual
Change
% Annual
Change
REVENUES
Total Tenant Revenue 81,839 47,311 63,081 63,111 30 0%
Total Fee Revenue 63,000 35,362 52,204 49,594 (2,610)
Total Other Revenue - - - - -
TOTAL REVENUE 144,839 82,673 115,285 112,705 (2,580) -2%
EXPENSES
Total Operating - Administrative 40,859 27,734 40,458 43,707 3,249
Total Tenant Services 1,680 700 933 - (933)
Total Utilities 36,500 17,950 23,933 24,651 718
Total Maintenance 51,812 18,253 24,338 31,042 6,704 28%
Total Protective Services - - - - -
Total Insurance Premiums 5,453 3,982 5,309 5,593 283
Total Other General Expenses 6,336 - 3,843 5,972 2,129 55%
Total Interest Expense and Amortization Cost - - - - -
TOTAL OPERATING EXPENSES 142,640 68,619 98,815 110,965 12,150
EXCESS of OPERATING REVENUE over OPERATING EXPENSES 2,199 14,054 16,470 1,740 (14,730)
TOTAL EXPENSES 142,640 68,619 98,815 110,965 12,150
EXCESS (DEFICIENCY) of TOTAL REVENUE over(under) TOTAL 2,199 14,054 16,470 1,740 (14,730)
(To)/From Unrestricted Net Position (2,199) (14,054) (16,470) (1,740) 14,730
Change in Net Position - - - - -
Recommended
2018 ANNUAL OPERATING BUDGET
47
CENTRAL OFFICE COST CENTER
PROGRAM SUMMARY
The Central Office Cost Center (COCC) is the fund mandated by HUD to account for “centralized”
services and functions necessary to operate a housing authority. Most of the functions of the COCC are
not directly attributable to the public housing communities or other programs. In essence, they are the
overhead functions. For the Authority, these include:
• Executive Office – which includes Board of Commissioners
• Administration – which includes Human Resources|Compliance|Safety&Security
• Financial Services – which includes Accounting|Procurement|Information Technology
• Development – which includes Technical Services
• Asset Management
• Resident Services
Funding for the COCC is in the form of fees charged to projects or programs. The fees include those
specified by HUD as management fees, bookkeeping fees, asset management fees, or fees for services.
HUD regulates which of these fees may be charged to any given program and how the fee is to be
calculated.
The Authority does provide Technical Services on a “fee for service” basis. The Authority examined
private sector rates for specialized maintenance services – electrical, plumbing, etc. - and has
established rates for these service consistent with the private sector. When an “end user” department
uses these services, they are charged as if they had contracted with a private sector vendor.
The Authority employs a similar methodology for Resident Services and Compliance Services.
In addition to the HUD regulated management fees, the Authority also charges a Management fees and
Supportive Services fees to all other entities like Edgemont Elms Housing, Inc., Preiss-Steele Place,
LLC, and Goley Pointe, LLC. The amounts are typically computed as a percent of net rental income as
determined in the management agreement between the Authority and these entities.
Program management fees are charged to the HCV program according to HUD regulations. These fees
can either be up to 20 percent of earned Administrative Fees or $12.00 per voucher leased per month. In
addition, the COCC can also charge the program $7.50 per voucher leased per month as bookkeeping
fees.
The COCC also charges all grant awards received by the AMPS a fee of up to 10% of the award. These
include Capital and Replacement Housing Factor funds.
As determined by Resource Sharing Agreements, the COCC may also receive fees from the Authority’s
instrumentalities (DVI) and Component Units (Learning Assistance, etc.)
Lastly, the COCC receives fees from Bond transactions of the Authority.
2018 ANNUAL OPERATING BUDGET
48
CENTRAL OFFICE COST CENTER
PROGRAM SUMMARY
Executive Office
The Executive Office includes the Board of Commissioners, Chief Executive Officer and Staff
responsible for coordinating the day-to-day activities of the Authority. This department is also
responsible for communications with internal as well as external stakeholders including the United
States Department of Housing and Urban Development (HUD), other federal entities, the State, City
and County governments, Investors and Residents in the Public, Affordable and HCV Housing
Programs.
Administration
As mentioned previously, the Administration department which was created in 2017 is made up of
Human Resources, Compliance and Safety/Security. Human Resources is responsible for planning,
implementing and evaluating employee relations. Tasks performed include: labor relations, employee
recruitment, compensation and benefits management, training and development as well as maintaining
awareness of and compliance with federal, state and local labor laws.
The Compliance team ensures that the property and program management business areas of the
Authority maintain compliance with federal, state and local regulations and requirements. Typical
duties include the development of policies and procedures for property/program management,
ensuring employee awareness of guidelines and regulations, developing compliance-related reporting
and preparing risk assessment analysis to expand visibility.
The Safety & Security team works cooperatively with residents, staff, the public and law enforcement
agencies to reduce crime, preserve peace and provide safe environments within the Authority’s
housing developments, both owned and managed. Tasks include monitoring building surveillance,
responding to alarms, patrol and organizing outreach to DHA’s neighborhoods throughout the year.
Financial Services
The Financial Services department includes Accounting, Budgeting, Procurement and Information
Technology. The Accounting team maintains a system of internal administrative and accounting
controls. This includes the evaluation of property/program management as well as departmental
activities that affect the financial operations of the Authority. This department coordinated and
executes all financial documents, annual budget and monthly financial reports.
Procurement is responsible for coordinating the solicitation of all Requests for Quotes (RFQ), Requests
for Proposals (RFP), Invitations for Bid (IFB) and finalizing all contractual agreements on behalf of all
departments. All departments are responsible for the procurement of materials and supplies for their
respective areas in accordance with Asset Management.
2018 ANNUAL OPERATING BUDGET
49
CENTRAL OFFICE COST CENTER
PROGRAM SUMMARY
Information Technology services provides support for all computer systems, applications and phones.
Tasks include providing services to departments that ensure technological systems are reliable, stable
and cost efficient.
Development
The Development is responsible for planning and organizing all development, construction and
modernization projects for the Authority. Tasks include budgeting for HUD funds under the Capital
Fund and Replacement Housing Factor programs. This department also manages the affairs for the
development instrumentality of the Authority, Development Ventures Inc, tasked with spearheading
all development/redevelopment projects.
The Authority also provides Technical Services – Plumbing and Locksmith Services on a Fee-For-
Services basis to all properties. This team is included in the Development department and charges
comparable rates
Asset Management
This department oversees property management and maintenance services for managed developments.
Tasks include the establishment of the Admissions and Continued Occupancy Policy (ACOP),
governing HUD-Aided Public Housing Policies and Procedures for property management including
lease agreements and application processes and information.
Resident Services
The Resident Services department offers, in partnership with other agencies, support services to
provide opportunities for all residents in properties or programs managed by the Authority. This
department implements several programs and services to assist residents. All resident service grants,
including but not limited to Family Self Sufficiency, Continuum of Care etc., are administered by this
department. In addition, the Resident Services department maintains the activities of Learning
Assistance, Inc. – a component unit of the Authority.
In an effort to promote proper safeguarding of resources against waste and inefficiency, encourage
accuracy and reliability of operational data, each COCC department manages an individual budget.
However, it is important to note that the COCC departments are not a separate asset managed entity
on their own. Unless otherwise required by a managed grant, all resources of the COCC are shared
amongst the departments depending on need. The COCC budget is presented on a consolidated basis
even though each departmental head oversees their own budget.
2018 ANNUAL OPERATING BUDGET
50
CENTRAL OFFICE COST CENTER
FY2018 BUDGET ASSUMPTIONS & PROJECTIONS
REVENUES:
1. Property/program management fees charged to the other programs. AMPs are charged based
on standard rates set by HUD. For FY2018, Property Management fees are budgeted at $53.20,
the current approved HUD reasonable fee. The bookkeeping fee and asset management fees
remain the same at $7.50 per unit and $10.00 per unit respectively. Property Management and
Bookkeeping fees are charged per occupied unit. Asset management fees are charged per ACC
unit and subject to excess cash as calculated from the previous year Financial Data Schedule
(FDS).
2. The HCV program can be charged a program management fee up to $12.00 per voucher leased
per month and a bookkeeping fee of $7.50 per voucher leased per month or up to 20% of the
Administrative Fee earned. FY2018, the Authority will charge the HCV program $10.00 per
voucher leased as program management fees.
3. Preiss Steele Place, Edgemont Elms and Goley Pointe, will be charged a management fee equal
to 6% of net rental income as management fees.
4. Resident Service fees are budgeted at $15.08 per occupied unit. The fee charged in 2017 has been
increased using the HUD inflation factor of 1.02.
5. Compliance Services fees budgeted at $13.86 per occupied unit. The fee charged in 2017 has
been increased using the HUD inflation factor of 1.02.
6. Safety and Security fees are budgeted at $9.37 per occupied unit. The fee charged in 2017 has
been increased using the HUD inflation factor of 1.02
7. In addition to management fees, the affordable housing properties are charged a Resident
Services fee of $24.45 and if applicable the same Compliance fees as the public housing
properties.
8. Technical Services fees are charged for service performed at the properties. The rates for 2018
are as follows: Licensed Plumber - $98.00 per hour | Certified Locksmith $80.00. The revenue
for this line item is budgeted according to the expenses budgeted for each property.
9. The COCC also charges a program management fee of 10% of Capital Funds awarded. For 2018,
the budgeted amount is $252,736.
10. As per the Resource Sharing Agreement, DVI will pay the COCC a budgeted total of $247,561 in
2018.
2018 ANNUAL OPERATING BUDGET
51
CENTRAL OFFICE COST CENTER
FY2018 BUDGET ASSUMPTIONS & PROJECTIONS
11. Proceed from Bond Issuance and current Bond fees are expected to be about $155,321 in 2018.
12. As per the Resident Services and Asset Management Agreements, the HOPE VI properties
managed by TCB will pay a total of about $7,368 to the COCC in 2018.
13. The Resident Services department will administer two grants in 2018 – Family Self Sufficiency
and Governors’ Crime Commission. The budgeted amounts are $137,787 and $36,767
respectively.
EXPENSES:
1. Administrative salaries and benefits are budgeted at the same level as in the previous year. All
vacant positions to be filled are budgeted at the mid-range level for salaries.
2. Computer Maintenance Agreements for 2018 have increased by about 19%. The Authority will
convert to Microsoft 365 and improve operations by obtaining Adobe licenses.
3. In previous years’, Employee Benefit Contributions were budgeted for under General Expenses.
Effective 2018, these expenses will be budgeted for under the specific category where salaries
are budgeted.
The below shows the schedule of fees for the COCC in 2018.
Central Office Cost Center - FY2018 Schedule of Fees
Low Income Public Housing 2,407,541.00
Capital Fund Program 252,736.00
Preiss Steele Place 70,070.00
Edgemont Elms 53,742.00
Goley Pointe 14,933.00
Housing Choice Voucher Program 322,920.00
HOPE VI Properties 7,368.00
Development Ventures, Inc 247,561.00
Bond Fees 155,321.00
Total FY 2018 3,532,192.00
2018 ANNUAL OPERATING BUDGET
52
CENTRAL OFFICE COST CENTER
FY2018 BUDGET
COCC- Consolidated
FY2018 Budget
2017
Budget
2017
Jan - Sep
2017
Estimated
2018
Recommended
Annual
Change
% Annual
Change
REVENUES
Total Tenant Revenue - - - - -
Total Fee Revenue 2,926,853 2,670,098 3,474,211 3,669,979 195,768 6%
Total Other Revenue 3,546 427 505 36,767 36,262 7179%
TOTAL REVENUE 2,930,399 2,670,525 3,474,716 3,706,746 232,030 7%
EXPENSES
Total Operating - Administrative 2,358,220 1,693,914 2,258,552 2,690,557 432,005 19%
Total Tenant Services 450,870 456,264 608,353 627,752 19,399 3%
Total Utilities 15,236 21,604 28,806 29,670 864 3%
Total Maintenance 274,361 205,519 274,026 275,173 1,147 0%
Total Protective Services - - - - -
Total Insurance Premiums 52,619 43,624 58,166 65,521 7,355 13%
Total Other General Expenses 4,860 9,812 12,168 - (12,168) -100%
Total Interest Expense and Amortization Cost - - - - -
TOTAL OPERATING EXPENSES 3,156,166 2,430,739 3,240,070 3,688,674 448,604 14%
EXCESS of OPERATING REVENUE over OPERATING EXPENSES (225,767) 239,786 234,646 18,072 (216,574)
TOTAL EXPENSES 3,156,166 2,430,739 3,240,070 3,688,674 448,604
EXCESS (DEFICIENCY) of TOTAL REVENUE over(under) TOTAL (225,767) 239,786 234,646 18,072 (216,574)
(To)/From Unrestricted Net Position 225,767 (239,786) (234,646) (18,072) 216,574
Change in Net Position -$ -$ -$ -$ -$
Recommended
2018 ANNUAL OPERATING BUDGET
53
HOUSING CHOICE VOUCHER
PROGRAM SUMMARY
The Authority operates a Housing Choice Voucher Program (HCV) pursuant to U.S. Department of
Housing and Urban Development (HUD) requirements. The HCV Program is structured to provide a
housing voucher to program participants. Participants then locate housing in the local rental market.
When an acceptable unit is located, both the program participant and the landlord are required to enter
into a HAP contract with the Authority. Program participants pay approximately 30% of the rent and
the voucher is used to pay the balance up to a predetermined market rate established by HUD on an
annual basis.
In general, tenant-based vouchers are issued to the participants. However, some vouchers are “project-
based” and are allocated to specific properties, so a participant has to be able to qualify to live in that
particular property.
The Authority also administers Veterans’ Administration Supportive Housing vouchers (VASH)
targeted at providing assistance to homeless veterans.
HCV Administration provides support for a maximum of 2,791 vouchers. However, it is important to
note that HUD requires housing authorities manage the program within their allotted budget, not the
allotted maximum vouchers. This means that the program may have a utilization rate that falls below
the allotted vouchers but a 100% budget utilization. Primary services include the acceptance and
processing of applications for vouchers; inspections of units on at least an annual basis, and
recertification of program participant eligibility on an annual basis.
Housing Assistance Program (HAP) funds are “pass-through” in nature. Any surplus that occurs is
retained for future needs, but is strictly limited to being used only for housing assistance payments.
Due to the pass-through nature of the funds, no personnel or other expenses are allocated to HCV
Program HAP.
In addition to the traditional HCV program, the HCV department also administers a small number
Tenant Based Rental Assistance vouchers through two grant-funded programs, Shelter Plus Care (S+C)
and Housing Opportunities for Persons with HIV/AIDS (HOPWA). Both programs reimburse the costs
of Housing Assistance Payments expensed on a monthly basis and include a small fee for
administering the programs.
The HCVP program is considered a separately asset managed program and pays the COCC program
management fees.
2018 ANNUAL OPERATING BUDGET
54
HOUSING CHOICE VOUCHER
PROGRAM SUMMARY
Staffing for the HCVP program is comprised of the positions shown in the organizational chart below
2018 ANNUAL OPERATING BUDGET
55
HOUSING CHOICE VOUCHER
FY2018 BUDGET ASSUMPTIONS & PROJECTIONS
The budget for the HCV Program is divided into two parts – Administration and Housing Assistance
Payments (HAP). The following information provides additional detail regarding the projections of
revenues and expenses for the HCV Program.
REVENUES:
1. Housing Assistance Payment funds to be received have been budgeted at $19,753,628 using an
average HAP amount of $612 and an average unit month leased number of 2,691 vouchers
2. Administrative Fees earned are budgeted at $1,600,872 which a 6% decrease from the amount
expected to be received in 2017 of $1,7
3. Other revenues include administrative fees earned from managing the two TBRA programs,
Shelter plus care and HOPWA. The expected fees for 2018 are $6,177 for Shelter Plus Care and
7% of HAP/URP paid per month for HOPWA.
EXPENSES:
1. Housing Assistance Payment expenses are budgeted at the same level as expected revenues of
$19,753,628
2. Program management fees due to the COCC for FY 2018 are calculated as $10 per unit month
leased. Over the past few years, administrative fee earned for this program has decreased
dramatically. In addition to the decrease in rates, final funding has been prorated below 100% of
eligibility. HCVP has been unable to pay the maximum fee required to the COCC for program
management over the past few years. The rate is $12 per unit month leased for program
management and $7.50 per unit month leased for bookkeeping. The Authority may also opt to
charge the program 20% of the administrative fee received.
3. The most significant change in expenses for the HCV program beginning in 2018 will be a rent
charge paid to the COCC. The amount in 2018 will be $5,000 a month. In the past the HCV
department has been charged Utilities and Maintenance expenses using an allocation based on
the number of employees. The rent charge is based on a rate per square footage of leased office
space in downtown Durham. The average rate is about $2.01/square footage. The HCV
department occupies about 6,000 square feet of the central office building.
4. All other expenses are directly incurred by the HCV department/program and budgeted at a 3%
increase from expected FY2017 amounts.
2018 ANNUAL OPERATING BUDGET
56
HOUSING CHOICE VOUCHER
FY2018 BUDGET – ADMINISTRATION
HCVP Admin
FY2018 Budget
2017
Budget
2017
Jan - Sep
2017
Estimated
2018
Recommended
Annual
Change
% Annual
Change
REVENUES
Total Tenant Revenue - - - - -
Total Fee Revenue 1,778,751 1,341,878 1,768,892 1,665,341 (103,551) -6%
Total Other Revenue 6,300 6,765 9,020 9,291 271 3%
TOTAL REVENUE 1,785,051 1,348,643 1,777,912 1,674,631 (103,281) -6%
EXPENSES
Total Operating - Administrative 1,645,248 1,144,185 1,525,581 1,633,231 107,651 7%
Total Tenant Services - - - - -
Total Utilities 16,916 14,762 29,524 - (29,524) -100%
Total Maintenance 27,294 34,118 45,490 4,865 (40,625) -89%
Total Protective Services - - - - -
Total Insurance Premiums 25,593 21,061 28,081 18,439 (9,642) -34%
Total Other General Expenses 70,000 34,383 45,844 103,107 57,263 125%
Total Interest Expense and Amortization Cost - - - - -
TOTAL OPERATING EXPENSES 1,785,051 1,248,509 1,674,521 1,759,642 85,121 5%
EXCESS of OPERATING REVENUE over OPERATING EXPENSES - 100,133 103,391 (85,011) (188,402)
TOTAL EXPENSES 1,785,051 1,248,509 1,674,521 1,759,642 85,121
EXCESS (DEFICIENCY) of TOTAL REVENUE over(under) TOTAL - 100,133 103,391 (85,011) (188,402)
(To)/From Unrestricted Net Position - (100,133) (103,391) 85,011 188,402
Change in Net Position - - - - -
Recommended
2018 ANNUAL OPERATING BUDGET
57
HOUSING CHOICE VOUCHER
FY2018 BUDGET – HAP
HCVP HAP
FY2018 Budget
2017
Budget
2017
Jan - Sep
2017
Estimated
2018
Recommended
Annual
Change
% Annual
Change
REVENUES
Total Tenant Revenue - - - - -
Total Fee Revenue 16,479,350 14,613,345 19,366,302 19,753,628 387,326 2%
Total Other Revenue - - - - -
TOTAL REVENUE 16,479,350 14,613,345 19,366,302 19,753,628 387,326 2%
EXPENSES
Housing Assistance Payments - Regular 16,479,350 14,792,377 19,723,169 19,753,628 30,459 0%
TOTAL EXPENSES 16,479,350 14,792,377 19,723,169 19,753,628 30,459
EXCESS (DEFICIENCY) of TOTAL REVENUE over(under) TOTAL 16,479,350 14,613,345 19,366,302 19,753,628 387,326
(To)/From Unrestricted Net Position (16,479,350) (14,613,345) (19,366,302) (19,753,628) (387,326)
Change in Net Position - - - - -
Recommended
2018 ANNUAL OPERATING BUDGET
58
DEVELOPMENT VENTURES, INC
PROGRAM SUMMARY
Development Ventures Incorporated (DVI) is an instrumentality of the Durham Housing Authority. As
an IRS 501(c)(3) entity, DVI exists to develop affordable housing options to low-income residents of
Durham on behalf of DHA. DVI is primarily involved in the development and ownership of new
housing communities.
As a result of several ongoing projects, DVI will continue to evolve in FY2018. The entity owns two
properties – Lincoln and Fayette. To date, DVI has completed the development/redevelopment of the
following properties: Preiss Steele Place, Edgemont Elms, Goley Pointe and 1010 Worth Street.
By the end of 2017, it is expected that 3 properties will close development deals to convert from Public
Housing to Rental Assistance Demonstration – Project Based Rental Assistance. These are the 16 Public
Housing units at Edgemont Elms, Morreene Road and Damar Court.
It is important to note that DVI has no employees and is therefore operating under a Resource Sharing
Agreement with DHA. The terms of the agreement include a yearly fee to the COCC that is equivalent
to the following:
18% of the Chief Executive Officers’ salary and benefits, 80% of the Director of Developments’ salary
and benefits, 10% of the Capital Fund Program Administrators’ salary and benefits and 100% of the
Real Estate Strategies Specialists’ salary and benefits.
DVI is also responsible for expenses charged to Lincoln and Fayette Place. The main source of revenue
for DVI is developer fees earned at closing or deferred based on the development transactions. All
developer fees will be booked as revenues or receivables according to the schedules attached to the
development transactions.
2018 ANNUAL OPERATING BUDGET
59
DEVELOPMENT VENTURES, INC
FY 2018 BUDGET
DVI - Administration
FY2018 Budget
2017
Budget
2017
Jan - Sep
2017
Estimated
2018
Recommended
Annual
Change
% Annual
Change
REVENUES
Total Tenant Revenue - - - - -
Total Fee Revenue - - - - -
Total Other Revenue 729,299 31,415 165,739 295,751 130,013 78%
TOTAL REVENUE 729,299 31,415 165,739 295,751 130,013 78%
EXPENSES
Total Operating - Administrative 504,305 202,367 268,323 268,898 88 0%
Total Tenant Services - - - - -
Total Utilities 10,050 3,078 4,103 4,226 - 3%
Total Maintenance 34,630 4,500 6,000 6,180 180 3%
Total Protective Services - - - - -
Total Insurance Premiums 9,355 7,191 9,589 9,876 288 3%
Total Other General Expenses 61,793 - - - -
Total Interest Expense and Amortization Cost - 20,394 27,192 - (27,192) -100%
TOTAL OPERATING EXPENSES 620,133 237,531 315,207 289,181 (26,636)
EXCESS of OPERATING REVENUE over OPERATING EXPENSES 109,166 (206,115) (149,469) 6,571 156,039
TOTAL EXPENSES 620,133 237,531 315,207 289,181 (26,636)
EXCESS (DEFICIENCY) of TOTAL REVENUE over(under) TOTAL 109,166 (206,115) (149,469) 6,571 156,039
(To)/From Unrestricted Net Position (109,166) 206,115 149,469 (6,571) (156,039)
Change in Net Position - - - - -
Recommended
2018 ANNUAL OPERATING BUDGET
60
LEARNING ASSISTANCE, INC.
PROGRAM SUMMARY AND BUDGET
Learning Assistance, Inc., is a component unit of the Authority, incorporated as a North Carolina non-
profit in 1987. The mission of the organization is to award scholarships to public housing youth and
young adult residents. The primary source of income for Learning Assistance, Inc., is the proceeds
from an agency endowment established in 1994 with the Greater Triangle Community Foundation.
Other income recognized is usually the result of a donations made to the organization. For FY2018
$17,000 has been budgeted for scholarships to be awarded.
The program is managed by the Resident Services department located in the Central Office Cost
Center.
LAI - Learning Assistance, Inc.
FY2018 Budget
2017
Budget
2017
Jan - Jun
2017
Estimated
2018
Recommended
Annual
Change
% Annual
Change
REVENUES
Total Other Revenue 18,700 9,304 12,406 17,980 5,574 45%
TOTAL REVENUE 18,700 9,304 12,406 17,980 5,574 45%
EXPENSES
Total Operating - Administrative 1,700 125 167 - (167) -100%
Total Other General Expenses 17,020 1,757 2,343 12,000 9,657 412%
TOTAL OPERATING EXPENSES 18,720 1,882 2,509 12,000 9,491 378%
EXCESS of OPERATING REVENUE over OPERATING EXPENSES (20) 7,422 9,896 5,980 (3,917)
TOTAL EXPENSES 18,720 1,882 2,509 12,000 9,491
EXCESS (DEFICIENCY) of TOTAL REVENUE over(under) TOTAL (20) 7,422 9,896 5,980 (3,917)
(To)/From Unrestricted Net Position 20 (7,422) (9,896) (5,980) 3,917
Change in Net Position - - - - -
Recommended
2018 ANNUAL OPERATING BUDGET
61
OTHER PROGRAMS/GRANTS
OTHER AMPS:
Birchwood – this AMP is comprised of four single-family residential homes that were part of the
Authority’s Turnkey III program. The Authority is currently in the process of obtaining permission to
dispose of these units. To the extent the properties need to be managed, the Senior Property Manager
is responsible. Currently all of the units are vacant. The primary expense of this AMP is maintenance
costs for landscaping. The budgeted amount for this line item if $6,000.
HOPE VI:
In an effort to revitalize a distressed area within North East Central Durham, the Authority
through HUD’s HOPE VI neighborhood revitalization program provided loans and grants
towards the development of the following rental units:
1. Main Street Townhomes | AMP #29 (2004)
This property consists of 43 townhouse-style units in 4 buildings. There are 21 public
housing units included in the 43 low income housing tax credit units.
2. Calvert Place| AMP #16 (2005)
This property is made up of 75 residential units all of which are allocated low-income
housing tax credits. 43 units are set aside as public housing
3. Morning Glory| AMP #30 (2005)
Morning Glory Senior Village is a development that consists of 25 cottage and apartment
style public housing units designated for seniors. This property is also allocated low
income housing tax credits.
4. Holman Homes| AMP #28 (2008)
This property consists of 83 rental units, 74 of which are low-income housing tax credit
units and 46 of the 74 are public housing units. The remaining 9 units are market rate.
The operating subsidy budgets for these properties are shown in the below:
HOPE VI
FY2018 Budget
2017
Budget
2017
Jan - Sep
2017
Estimated
2018
Recommended
Annual
Change
% Annual
Change
HUD PHA OPERATING GRANTS
Main Street Townhomes 79,453 58,796 78,308 74,299 (4,009) -5%
Calvert Place 164,064 124,313 165,572 157,092 (8,480) -5%
Morning Glory 45,730 39,846 53,070 50,353 (2,717) -5%
Holman Homes 79,453 139,471 185,761 176,247 (9,514) -5%
Total Operating Subsidy 368,700 362,426 482,711 457,991 (24,720) -5%
Recommended
2018 ANNUAL OPERATING BUDGET
62
OTHER PROGRAMS/GRANTS
FAMILY SELF SUFFICIENCY:
The Family Self-Sufficiency (FSS) program enables HUD-assisted families to increase their earned
income and reduce their dependency on rental subsidies and welfare assistance. The Authority has
managed an FSS program since 1992.
Each year, HUD makes funding available through a competitive process to PHA’s that administer an
FSS program. The awarded funds are to pay for personnel costs for FSS program coordinator(s).
For 2018, the expected award is $137,787, a decrease of about 33% from the 2017 award of $206,680
GOVERNORS CRIME COMMISSION:
The Authority has been awarded a grant through the Juvenile Justice Committee of the Governor’s
Crime Commission effective October 1, 2017 – September 30, 2018. The awarded funds are to pay for
budgeted costs associated with salaries and benefits for personnel responsible for administering the
grant. The award amount for 2018 is $36,767.
2018 ANNUAL OPERATING BUDGET
63
RENTAL ASSISTANCE DEMONSTRATION
PROGRAM SUMMARY
The Rental Assistance Demonstration (RAD) program was created by HUD to give public housing
authorities a tool to improve as well as preserve current public housing stock. With the tool, Agencies
can leverage public and private debt and equity in order to reinvest in their current public housing
stock. With RAD, units move to a Section 8 platform with a long-term contract that must be renewed by
law. This makes units permanently affordable to low-income households.
The Authority’s strategic long-term goal is to convert all existing public housing stock to the RAD
model. The RAD conversion plan is divided into two main phases as shown in the tables below.
Starting with a straight conversion of the 16 public housing units at Edgemont Elms, 91 public units at
the HOPE VI properties and all units at Damar Court and Morreene Road. All 7 properties will be
converting to the RAD – PBRA model by the end of 2017.
2018 ANNUAL OPERATING BUDGET
64
RENTAL ASSISTANCE DEMONSTRATION
FY 2018 BUDGET – MORREENE ROAD
RAD - Morreene Road
FY2018 Budget
2017
Budget
2017
Jan - Sep
2017
Estimated
2018
Recommended
Annual
Change
% Annual
Change
REVENUES
Total Tenant Revenue 425,334 311,387 414,365 1,113,536 699,171 169%
Other Fees - - - -
Total Fee Revenue 595,557 472,810 602,854 - (602,854) -100%
Total Other Revenue 4,200 33,238 44,317 - (44,317) -100%
TOTAL REVENUE 1,025,091 817,434 1,061,536 1,113,536 52,000 5%
EXPENSES
Total Operating - Administrative 309,737 276,475 368,097 223,598 (144,499) -39%
Total Tenant Services 29,405 20,160 26,880 150,316 123,436 459%
Total Utilities 237,706 148,311 197,748 257,128 59,380 30%
Total Maintenance 192,653 155,349 207,133 296,503 89,370 43%
Total Protective Services 4,000 - - 10,609 10,609
Total Insurance Premiums 31,085 22,698 30,265 44,261 13,996 46%
Total Other General Expenses 220,295 - 20,588 100,555 79,967 388%
Total Interest Expense and Amortization Cost - - - - -
TOTAL OPERATING EXPENSES 1,024,881 622,994 850,710 1,082,970 232,260
EXCESS of OPERATING REVENUE over OPERATING EXPENSES 210 194,441 210,826 30,566 (180,260)
TOTAL EXPENSES 1,024,881 622,994 850,710 1,082,970 232,260
EXCESS (DEFICIENCY) of TOTAL REVENUE over(under) TOTAL 210 194,441 210,826 30,566 (180,260)
(To)/From Unrestricted Net Position (210) (194,441) (210,826) (30,566) 180,260
Change in Net Position - - - - -
Recommended
2018 ANNUAL OPERATING BUDGET
65
RENTAL ASSISTANCE DEMONSTRATION
FY 2018 BUDGET – DAMAR COURT
RAD - Damar Court
FY2018 Budget
2017
Budget
2017
Jan - Sep
2017
Estimated
2018
Recommended
Annual
Change
% Annual
Change
REVENUES
Total Tenant Revenue 183,710 132,830 176,372 535,572 359,200 204%
Total Fee Revenue 489,521 373,826 487,991 - (487,991) -100%
Total Other Revenue - 20 27 - (27) -100%
TOTAL REVENUE 673,231 506,676 664,389 535,572 (128,817) -19%
EXPENSES
Total Operating - Administrative 194,189 152,701 199,167 150,854 (48,313) -24%
Total Tenant Services 14,645 9,180 18,360 - (18,360) -100%
Total Utilities 202,575 115,725 154,300 158,100 3,800 2%
Total Maintenance 203,125 197,246 262,995 145,886 (117,109) -45%
Total Protective Services 10,000 195 260 4,500 4,240 1632%
Total Insurance Premiums 23,204 16,126 21,502 18,963 (2,539) -12%
Total Other General Expenses 25,283 1,395 2,419 80,160 77,741 3214%
Total Interest Expense and Amortization Cost - - - - -
TOTAL OPERATING EXPENSES 673,021 492,568 659,003 558,463 (100,540)
EXCESS of OPERATING REVENUE over OPERATING EXPENSES 210 14,107 5,386 (22,891) (28,277)
TOTAL EXPENSES 673,021 492,568 659,003 558,463 (100,540)
EXCESS (DEFICIENCY) of TOTAL REVENUE over(under) TOTAL 210 14,107 5,386 (22,891) (28,277)
(To)/From Unrestricted Net Position (210) (14,107) (5,386) 22,891 28,277
Change in Net Position - - - - -
Recommended
2018 ANNUAL OPERATING BUDGET
66
PAGE INTENTIONALLY LEFT BLANK
2018 ANNUAL OPERATING BUDGET
67
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