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HOUSING AUTHORITY OF THE CITY OF EL PASO75 YEARS OF RESPECT + RESPONSIVENESS + RESULTS

2013 ANNUAL REPORT

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The mission of the Housing Authority of the City of El Paso is to provide safe, decent, and affordable housing to assisted families living at or below

80 percent of the area media income.

VISIONThe vision of the Housing Authority of the City of El Paso is to always accomplish its mission regardless of the level of funding it receives from the

federal government.

MISSION

HACEP is the largest public housing authority in Texas and the 14th largest in the United States.

HACEP serves 40,000 low-income El Pasoans, or 6 percent of the city’s

population, through its rental assistance programs.

HACEP has achieved “High Performer” status every year since 2003 by the U.S. Department of Housing and Urban Development.

Each year, HACEP infuses more than $9 million into the local economy

through its capital construction and renovation projects and $30 million to private landlords who participate in the Housing Choice Voucher Program.

HACEP operates 6,039 public housing units, 495 Section 8 New

Construction units, 5,300 Housing Choice Vouchers, and 1,300 tax credit and non-subsidized units.

HACEP operates a $91 million annual budget and has more than $204

million in net assets.

HACEP provides more than a hand out, but a hand up through its homeownership program. Since 2003, more than 150 HACEP families have closed on their own home. In addition, thousands of individuals

have attained their GED, learned English as a Second Language, and have attained sustainable employment.

HACEP employs nearly 430 people from professional executives to well-

trained craftsmen.

HACEP is one of the most financially sound public housing authorities in the U.S. and earned an unqualified financial audit with no findings for the

past three consecutive years.

HACEP provides 170 HUD-VASH Vouchers and 15 Shelter Plus Care units for homeless veterans, 22 Shelter Plus Care units for chronically homeless

disabled civilians, and 50 units for domestic farm laborers.

TOP 10 FACTS

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SECTION 1 / MESSAGES SECTION 2 / HACEP LEADERSHIP

PAGES 4-6 PAGE 9

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SECTION 3 / ACCOMPLISHMENTS

PAGES 11-17 PAGES 19-21

SECTION 4 / FINANCIAL STATEMENTS

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SECTION 1 / MESSAGES+ mayor’s message + chairman’s message + ceo’s message

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Upon my election as Mayor in May 2013, my top priority was to learn about every depart-ment and division under the direction of the City of El Paso and to understand all of their challenges. I knew that after eight years of continuous leadership by the previous administra-tion, some departments would require more attention to ensure that they perform at optimal efficiency and had the right people in charge to lead the way. At that time, one of the orga-nizations that never made it to the top of my list of priorities was the Housing Authority of the City of El Paso. It seemed that everyone I spoke with had nothing but great things to say about this agency. Through the continuity of leadership by the Board of Commissioners, CEO Gerald Cichon and his administration, and the staff – many of whom have dozens of years of continuous service – it appeared to me that this agency has its sails fully unfurled on a calm open sea.

That is not to say that occasion squalls and inclement weather were on HACEP’s horizon thanks to federal budgetary reductions, sequestration, and capital improvement concerns. However, I could quickly see that the right people with the right skills were running the ship in the right direction. It was only recently that I finally had a chance to meet the staff in early January 2014. It was then when I realized that everyone at HACEP has a deep passion to fulfill the mandates of it’s mission to provide safe, decent, and affordable housing to nearly 40,000 low-income El Pasoans every day. Through its consistent recognition as a High Performer by HUD, its solid financial performance, and headline development efforts, HACEP is raising the bar among its industry peers and placing El Paso on a map of affordable housing excellence across the country. This is yet another example of why in El Paso, “It’s All Good.”

As the 75th Anniversary of HACEP winds down, it is an appropriate time to reflect on the past starting back when City Council incorporated the Housing Authority of the City of El Paso on February 17, 1938. Times were certainly different. El Paso’s population at that time was 89,000 people. World War II was just beginning, and the country was still recovering from the Great Depression and a severe drought. Fortunately, President Franklin Roosevelt’s New Deal kicked in under the auspices of the Public Works Association and then later with the U.S. Housing Authority.

By this time, HACEP was just wrapping up the final touches of the Alamito Place in El Se-gundo Barrio, the first public housing community in El Paso. Featuring more than 350 units spread over 7 acres, Alamito was the first of what would become dozens of affordable housing communities sprinkled throughout El Paso at a rate that reflected the City’s expansion over the next seven and a half decades. Throughout this time, federal, state, and local regulations changed as did the look, amenities, demographics, and funding mechanisms of HACEP’s properties and programs. Despite all this, what has not changed throughout all of this time is the unwavering commitment of the staff to help others in need.

Now the 40,000 children, elderly, disabled, and working-poor who call HACEP home repre-sent 6 percent of the City’s population. With 75 years under its belt, I am confident that our local housing authority will be successful in its next 75 years to create additional affordable options for our most needy citizens. As El Paso continues a four-year trend as the safest large city in the U.S., we must not lose sight that there are more than 14,000 families on HACEP’s waiting lists patiently waiting for a hand up back to economic self-sufficiency.

It has been said that the character of a community can best be judged by how it cares for its most vulnerable residents. The City of El Paso reaffirms the value of services provided by HACEP and looks forward to our continuing partnership in making El Paso a place we are all proud to call home.

MAYOR’S MESSAGE

Sincerely,

Oscar Leeser Mayor of the City of El Paso

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Chairman’ S MESSAGE

It has been my privilege to serve as the Chair of the HACEP Board of Commissioners since 2008. Over these last several years, I have seen firsthand the impact that this public housing authority, now the 14th largest in the nation, affects the lives of so many El Pasoans. I have seen a remarkable improvement in the way the staff and administration handle the day-to-day operations. I have witnessed record numbers of residents closed on their own home. And I have seen how industry leaders are turning their heads to El Paso for answers to the big questions that affect the other 3,100 public housing authorities in the country. This past year was filled with a number of accomplishments worth celebrating. The first is that our Public Housing and Housing Choice Voucher Programs continue to maintain their High Performance status as measured by the Public Housing Assessment System (PHAS) and the Section Eight Management Assessment Program (SEMAP). By earning a PHAS score of 96 and a SEMAP score of 90 this year, our affordable housing operations continue their high performance distinction for the third consecutive year despite reductions in federal revenue. Meanwhile, HACEP’s first mixed income, mixed finance community is being delivered on time and on budget. Eastside Crossings is our first engagement with a 9 percent tax credit secured through the State of Texas. It will feature 64 public housing units, 79 affordable units, and 45 market rate units built to LEED Silver equivalent standards. With a pool, two covered playgrounds, covered parking, walking trails, and a fitness center, this property is a sterling example of the new form of affordable housing for the Sun City. Another accomplishment is HACEP’s exceptionally strong current ratio on its balance sheet. Despite the shrinking budget from sequestration, HACEP continues to have one of the stron-gest balance sheets in the industry. Through fiscally prudent cash management strategies and wise investments in technology, HACEP is leading the way to do more with less. Through careful oversight and continuous reviews, HACEP has also earned an unqualified audit with no management findings for the third consecutive year. During a recent Board meeting, our third-party auditor mentioned that he audits 40 public housing authorities across the country and that it is “extremely rare” to find no findings in large housing authorities. However, risk exists within organizations that do not take action now to prepare for the challenges of the future. Since most of HACEP’s public housing properties were built prior to 1980, HACEP’s risk is continued deterioration of its units without sufficient federal funds to maintain them. For this reason, HACEP has taken the bold step to engage in the Rental Assistance Demonstration, or RAD, to convert 6,100 public housing units from conventional Section 9 public housing to Section 8 project-based rental assistance. Beginning in early 2015, HACEP will begin relocating residents out of their current units to invest approximately $500 million to rehabilitate them. When everything is complete in 2019, the City of El Paso will have the highest quality and most energy efficient public housing in the United States. These efforts will also ensure HACEP’s sound footing for at least the next 40 years. This is truly a bold project, but the Board of Commissioners are very confident in the ability of the staff to communicate and partner with our residents to ensure our success. Through these fine accomplishments, and the steps we are taking now to address the chal-lenges of the future, I am confident that HACEP will continue to fulfill the mandates of its mission to provide safe, decent, and affordable housing in El Paso for the next 75 years.

Sincerely,

Joe Fernandez Chair of the HACEP Board of Commissioners

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CEO’S MESSAGE

This year was an historic one for the Housing Authority of the City of El Paso. On February 17, 2013, we celebrated the 75th Anniversary with an evening of entertainment and awards with the staff, stakeholders, partners, and elected leaders who helped us become one of the larg-est and highest performing public housing authorities in the United States. From that point forward, we placed anniversary banners at all of our properties, acquired a time capsule, and helped organize a celebration with the Jurisdiction Wide Resident Council to commemorate our commitment to provide the safest and most affordable housing anywhere in the country. We have come a long way over the past 75 years. With 6,039 public housing units in active service, HACEP is now the 14th largest housing authority in the country. While part of the reason for HACEP’s growth is a result of new public housing units online, including the Paisano Green Community, our increased size is unfortunately more closely tied to the loss of public housing units in other parts of the country. Each year, approximately 10,000 public housing units are lost due to insufficiently appropriated funds by Congress to HUD. Accord-ing to the Council of Large Public Housing Authorities, there is now a $26 billion backlog of capital needs in the 1 million public housing units across the country. For the 2013 bud-get, however, Congress appropriated $1.8 billion for capital improvements. Here in El Paso, HACEP conducted a comprehensive physical needs assessment and has determined that we have an $80 million need in capital improvements over the next five years, but anticipates only $25 million in funds during that same period. How is HACEP, let alone all of the other 3,100 public housing authorities in the U.S., going to address such a gap? The answer, at least for HACEP, is the Rental Assistance Demonstration (RAD) Program. On December 16, 2013, HUD approved HACEP’s application to convert 6,100 Section 9 public housing units to Section 8 project-based rental assistance units through the Rental Assis-tance Demonstration (RAD). Under RAD, HACEP will leverage private capital to address properties’ capital backlog and fund a capital replacement reserve for future repair and replacement needs. Since Congress approved 60,000 public housing units for RAD in FY2012, HACEP is the largest public housing authority in the U.S. to engage in this initiative. Begin-ning in January 2015, HACEP will start investing $500 million to rehabilitate and rebuild our units over the next five years to highest quality and most energy efficient standards. This, of course, will require the partnership and patience of our 20,000 residents as we temporar-ily relocate them to other public housing units while we spend anywhere from $35,000 to $80,000 per unit to eliminate asbestos, replace deteriorated duct work, switch from evapora-tive coolers to refrigerated air units, and install new cabinetry and Energy Star appliances. This is a massive undertaking. Fortunately, we are ready, our residents are ready, our City and County are ready, and HUD is ready for us to set our course on a sustainable trajectory for the next 40 years and lead the nation in transforming public housing as we know it. In the meantime, we will continue to focus on our customer service, eliminate inefficient business processes, and hire, train, and retain the best housing authority workforce anywhere in the country. As you read through this annual report, I hope that you gain renewed insight into an organi-zation that has been and will always be committed to our mission by serving others in need with compassion while taking great pride in our recognition as one of the largest and highest performing housing authorities in the United States.

Sincerely,

Gerald W. Cichon Chief Executive Officer

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Shane Griffith Public Information

& Government Relations Officer

SECTION 2 / HACEP LEADERSHIP

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b o a r d o f C O M M I S S I O N E R S

Satish Bhaskar Chief Financial Officer

EXECUTIVE STAFF

Sue Pratt Vice Chair

Lynn Coyle Lupita Licerio Kevin Quinn

Stan Waterhouse Chief Operating Officer

William Zeigler Chief Human Resources Officer

Yolanda Dion Director of Budgets

Shane Griffith Public Information

& Government Relations Officer

Hector Montoya Director of Finance

Gary Knudsen Director of

Information Technology

Juan Rivera Director of Development

& Capital Projects

Lorena Rivera Director of the Housing Choice

Voucher Program

Roman Velasquez Director of Public Housing

Commissioner Commissioner Resident Commissioner

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SECTION 3 / ACCOMPLISHMENTS+ 75th ANNIVERSARY CELEBRATIONS + 2013 ACCOMPLISHMENTS & AWARDS + HOUSING ACQUISITION CORPORATION + PAISANO HOUSING REDEVELOPEMENT CORPORATION + PROVIDING A HAND UP + COMMUNITY PARTNERS + HACEP & HAC EMPLOYEES

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Back in 1938, times were a little differ-ent than they are now. Snow White and the Seven Dwarfs, the first animated full-length movie, was released. How-ard Hughes set a new record by flying around the world in only 91 hours. And Germany was busy occupying other countries like Austria and Czechoslova-kia. Closer to home, local leaders were busy putting the final touches on the documents that formed the Housing Authority of the City of El Paso, Texas on February 17 of that year. It was out of the midst of the Great Depression that public housing authorities like HACEP were created by municipal ordinance to provide safe, decent, and affordable housing to those who needed it most. It all started with the construction of the Alamito Community in south central El Paso on the skirts of El Segundo Barrio - a vibrant, but economically-disadvantaged part of town where many immigrants from Mexico made their start in the United States. Constructed in 1941, Alamito embodied the ideals of Roosevelt’s New Deal - to create jobs, improve real estate, and help the working poor get on their feet. Now, 75 years later, Alamito stands today with bright new buildings, energy star homes, and with families of all demographics living near each other. Farther down the road at the corner of East Paisano and Boone, the Paisano Green Community was completed in 2012. Its energy effi-cient building envelopes, 650-plus solar panels, and two wind turbines have taken the concept of affordable housing to a new level. Due to its net zero status, the 73 elderly families who live here pay virtually no energy bills since the property produces as much energy as the residents consume.

While the look of our communities has changed over the years, our unwavering commitment to help others in need has not. Day after day, year after year, de-cade after decade, HACEP continuously fulfills the mandates of our mission. Now, the 40,000 children, elderly, dis-abled, formerly homeless, and working-poor residents who call HACEP home represent 6 percent of the City’s popula-tion. Over time, HACEP has proudly helped hundreds of thousands of people find a home over the past 75 years.

To commemorate our history 75th An-niversary, HACEP coordinated a series of events to recognize many of the dedi-cated volunteers and staff who served the residents over the years. In February, we hosted a 75th Anniversary Gala at the beautiful Grace Gardens banquet facility. The keynote speaker was Saul Ramirez, Jr., CEO of the National Asso-ciation of Housing and Redevelopment Officials (NAHRO). Staff, residents, and partners were recognized. In August, the Commissioners sealed a 75th Anniver-sary time capsule in which residents

75th anniversary celebrations

Alamito, 1938Time Capsule Sealing Ceremony

Mr. Velasquez with Resident at Resident PartyKitchen Interior, 1953

Cheerleader at Alamito, 195575th Anniversary Gala

Left to Right, Top to Bottom

and staff placed letters, communication materials, uniforms, logos, photos, and news articles that will help preserve HACEP’s history. The time capsule is on display in the breezeway next to the Board of Commissioners Room and will be opened on February 17, 2038 during the 100th Anniversary of HACEP. In December, HACEP and the Jurisdiction Wide Resident Council hosted a 75th celebration for residents complete with food, music, and dancing.

This year was packed with celebrations, milestones, and visions for the future. The one thing that will not change is our commitment to our residents, our stew-ardship of our public resources, and our focus to make our operations as efficient and customer centric as possible.

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HACEP ACCOMPLISHMENTS

DEPARTMENT OF FINANCE• Unqualified audit opinion with no management findings for the third consecutive year.• Implemented an integrated Payroll and Talent Management System.• Launched a Risk Management Leadership Team.• Achieved 25 out of 25 points on the Financial Assessment Subsystem (FASS).• Upgraded all PC-based computers to thin client in a shared server enterprise environment.

HACEP 2013 AWARDS• Award of Excellence in Project Design for Paisano Green Community by National Association of Housing and Redevelopment Officials.• Best Newsletter, Southwest (NAHRO).• Best Annual Report, Public Relations Association of the Southwest.• Best Event - Paisano Green Community Ribbon Cutting Ceremony, Public Relations Association of the Southwest.• Best External Publication - Innovative Solutions booklet, Public Relations Association of the Southwest.

Whether it’s maintaining our high performance status in Public Housing and the Housing Choice Voucher Programs, receiving prominent media coverage in both El Paso and across the U.S., or earning awards for our innovative programs and initiatives, HACEP works hard every day to deliver the most effective and efficient service to all of our clients, residents, business partners, and stakeholders. These accomplishments are a reflection of the efforts of the staff who dedicate their professional lives to serv-ing El Paso’s economically-challenged residents.

HACEP Recieves NAHRO Award of Excellence

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PUBLIC HOUSING PROGRAMS• PHAS High Performer for third consecutive year.• Youth Summer Conference with UTEP – increased to 400 HACEP youth participants.• Graduated first class of the Alpha Youth Leadership Academy.• Implemented new training standards and advancement opportunities for maintenance personnel.• Redesigned work order procedures and call center operations to enhance customer service and response times.

DEPARTMENT OF HOUSING CHOICE VOUCHER• SEMAP High Performer for fourth consecutive year.• Integrated Public Housing and HCV admissions and eligibility departments.• Replaced outdated handheld devices with tablets to enter inspection data and instantly upload data into client files.• Created a Master Scheduler by consolidating the separate scheduling functions of the Public Housing and HCV Pro grams into a single-person operation. • Awarded an additional 25 HUD-VASH vouchers for a total of 170 for homeless veterans.• Automated participant files by converting electronic im- ages into PDF documents and uploaded them to the e-HACEP system including Enterprise Income Verification (EIVs), HAP contracts, tenancy addendums, and HUD forms 50058.• Helped 22 families purchase their home through the FSS/Homeownership program.

90

2013

93 100

2012 2011

SEMAP SCORES

96 95 93

2013 2012 2011

phas scores

Paisano Green Community

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The HACEP Acquisition Corporation, doing business as Hous-ing Acquisition Corporation, or simply HAC, is a wholly owned subsidiary of the Housing Authority of the City of El Paso. HAC manages 1,288 Low Income Housing Tax Credit (LIHTC) and Non Subsidized (or Non-Annual Contributions Contract Non-ACC) properties. Both programs provide affordable housing to tenants who can afford to pay rents at 60 percent of the area median income. The LIHTC program is a dollar-for-dollar tax credit in the United States for affordable housing investments. It was created under the Tax Reform Act of 1986 (TRA86) that gives incentives for developers both public and private to create

hACEP acquisition corporation (hac)

Bienvivir Parkside Ltd.Cedar Oaks Ltd.Meadowbrook Townhomes Ltd.North Mountain Ltd.Saul Kleinfeld Ltd.Western Pebble Hills Ltd.Western Pellicano Ltd.

HAC currently invests through a limited partnership with the following entities, each of which has a property of the same name:

name units

56160

25200

303030

Total: 531

ENTITY units

Desert Sun Las Casita Lee Seniors Ltd.Lomaland TownhomesOrchardSt. JohnsVilla AlegreWestern Burgundy Ltd. Western Carolina Ltd. Western Crosby Ltd. Western Eastside Seniors Ltd.Western Gallagher Ltd. Western Redd Road Ltd. Western Yarbrough Ltd.

HAC also provides property management services to the following non-owned tax credit and market rate properties, each of which has a property of the same name:

285

1914

412

36964565619493032

Total: 757

affordable housing aimed at low-income Americans. LIHTC accounts for the majority - approximately 90 percent - of all affordable rental housing created in the United States today. The primary goal of HAC is to provide property management services to owned and non-owned affordable and other multi-family properties. HAC is managed by a professional team of 35 employees who specialize in property management, mainte-nance, and finance.

Berenice Yoder and Rosa Portillo, right, helped Dale and Barbara Adams relocate into a new apartment after their mobile home in Socorro was destroyed in

September 2013 from flood waters. Mr. Adams, a Veteran of the Vietnam War, is grateful to all the people from the Red Cross, the Salvation Army, and HAC who

helped him and his wife through their difficult experience.

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Alamito Gardens In 2007, the PHRC development Alamito Terrace created Alamito Gardens GP, LLC. PHRC owns 100 of this property in order to serve a General Partner for future construction project of 142 units in a Low-Income Housing Tax Credit real estate partnership designated for elderly residents. PHRC was also the developer of this property which was completed in 2011.

Kenworthy In 2011, PHRC acquired 47 acres of land on the Eastside of El Paso. Site improve-ment work is currently underway. This site will be utilized for the development of a mixed-income, mixed-finance commu-nity in the years to come.

Alamito Terrace In 2007, PHRC developed Alamito Terrace through Alamito Terrace GP, LLC. PHRC owns 100% as a general partner of the 76 units in a Low-Income Housing Tax Credit real estate partnership designated for elderly residents. PHRC was also the developer of this property which was completed in 2010.

Arrowhead Place In late 2012, PHRC acquired the General Partnership of this 24 unit complex. As General Partner, PHRC will provide oversight of the financial and operational compliance.

Elvin Estates In 2012, PHRC development Alamito Terrace obtained a grant from the City of El Paso for the construction of a 15-unit elderly apartment community. Construc-tion of this project was finished in March 2013.

Eastside Crossings In 2012, the PHRC development Alamito Terrace created Eastside Crossings GP, LLC. PHRC owns 100 of this property in order to serve a General Partner for construction project of 188 units in a Low-Income Housing Tax Credit real estate partnership. PHRC is also the developer of this property, which will be completed in 2013.

Paisano Housing Redevelopment Corporation

Geronimo Trail Townhomes In late 2012, PHRC acquired the General Partnership of this 22-unit community. As General Partner, PHRC will provide oversight of the financial and operational compliance.

Western Sunshine In late 2012, PHRC acquired the General Partnership of this 36-unit community. As General Partner, PHRC will provide oversight of the financial and operational compliance.

Bienvivir Parkside Seniors Bienvivir is a 56-unit affordable housing community of which PHRC maintains an investment in this limited partnership.

The Paisano Housing Redevelopment Corporation (PHRC) is a non-profit 501(c)(3) instrumentality of HACEP.

Eastside CrossingsExpected Completetion Fall 2014

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AVANCE – El Paso Border Network for Human Rights • Boys & Girls

Clubs of El Paso • Celebrando La Recuperación • Child Crisis Cen-

ter of El Paso • Children’s Kingdom Learning • Christian Joy Center

Academy • City of El Paso Department of Community and Human

Development • City of El Paso Department of Public Health • County

of El Paso Elections Department • El Paso Affordable Housing CUSO •

El Paso Collaborative for Community and Economic Development • El

Paso Community College • El Paso County Juvenile Probation Depart-

ment • El Paso Exploreum • El Paso First Health Plans • El Paso Police

Department • El Paso Public Libraries • El Paso Water Utilities • El Paso

Veterans Affairs Health Care System • Federal Reserve Bank of Dallas,

El Paso Branch • Greater El Paso Association of Realtors (GEPAR) •

HAI Group • KaBoom! • Las Americas Immigrant Advocacy Center

Latinitas, Inc. • Molina Health Care • Pan American Health Organiza-

tion • Paso del Norte Health Foundation • Project ARRIBA • Project

Bravo • Project VIDA Health Center • Region 19 Migrant Education

Program • Robles and Associates • Rio Grande Council of Govern-

ments - Area Agency on Aging • Southwest Gospel Ministries • Teach-

ers Federal Credit Union • Texas AgriLife Extension Service • Texas

Department of Aging and Disability Services • Texas Tech University

Health Sciences Center School • University of Texas at El Paso • Visit-

ing Nurses Association (VNA) • VOLAR Center for Independent Living

• Workforce Solutions Upper Rio Grande • Ysleta Independent School

District • YWCA - El Paso del Norte Region

COMMUNITY PARTNERS

The mission of HACEP extends beyond our asset and voucher man-agement operations. In order to effectively address the generational nature of dependence on government subsidized housing, HACEP focuses its community outreach efforts on the youth and upwardly mobile adults to empower them with the skills, support, and encour-agement they need to attain their dreams and graduate from the subsidized housing lifestyle. As families successfully leave our housing programs, they then open a slot for another family who has patiently waited for their turn to receive housing assistance.

providing a hand up

Alpha Youth Leadership Academy

Quad HOT Summer Conference

Back to School Supply Drive

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Miguel A. Acuna • Martha Adame • Arturo Aguilar • Cruz Aguilar • Gustavo Aguilar • German R. Aguilera • Pedro R. Aleman • Armando Almanza • Jose D. Alonso • Monica N. Alonzo • Alma R. Alvarado • Antonio Alvarez • Carlos R. Alvarez • Joseph Amor • Lilia R. Anaya • Alma R Andrade • Victor M. Arambula • Lorraine Arellano • Martha Arellano • Luis E. Arias • Steve C. Armstrong • Armida N Arredondo • Rodolfo Arredondo • Miguel A. Avalos • Eddie Avila • Hector M. Avila • Manuel A. Ayala • Carlos J. Baca • Bertha Balandran • Marcos Balbuena JR. • Christian Balder-rama • Jesus A. Baquera • Raul M. Barba • Roberto Barron JR. • Oscar Beanes • Sylvia Beard • Ruben Bernal • Ruth S. Bersch • Satish Bhaskar • Robert Bueno • Antonio R. Bugarin • Eric Bustillos • Jose L. Cabral • Berta Camacho • Laura A. Camarillo • Miguel A. Campa • Maria B. Campos • Gabriel Candia • Rafael Caraveo JR. • Martin R. Cardenas • Daniel Carranco • Oscar M. Carrasco • Jesus Carrejo • Lourdes P. Carrera • Claudia Carrillo • Grace Carrillo • Rodolfo R. Carrillo • Jose A. Casas • Eric G. Castaneda • Juan Castaneda • Jose Castanon • Jesus A. Castillo • Carlos Cazares • Raymond A. Chaires • Fernando J. Chasco • Adan Chavez • Bertha E. Chavez • Michael R Chavez • Gerald W. Cichon • Jose A. Cintron • Jose D. Colmenero • Manuel Colorado • Hector R. Conejo • Adela Contreras • Maria Corona • Ramon F. Corona • Alejandra Cortez • Eduardo Cortez • Susana M. Cos • Gilberto Cruz • Ruben Cueto • Phuoc H. Dang • Margaret C. Davis • Sonia De La Cruz • Oscar De La Rosa • Hector Del Palacio • Juan R. Del Rivero • Claudia I. Delgado • Armando Diaz • Jaime M. Diaz • Mario Diaz • Ramiro A. Diaz • Sylvia Diaz-striplin • Blanca Dominguez • Ricardo Dominguez • Gloria E. Dore • Joseph L. Dovenbarger • Jorge L. Dozal • Irma A. Duarte • Gaylynn S. Duran • Michael A. Duran • Linda Elmendorff • Manuel E. Encinas • Jose A. Enriquez • Amanda Zita Escobar • David Escobar • Maharai Esquivel • Martha J. Esquivel • Rita Yolanda Esquivel • Judith Estrada • Lorraine Estrada • Michael A. Evans • Godofredo Faudoa • Jose R. Favela • Arturo Flores • Ezequiel Flores • Juana Flores • Maria C. Flores • Mario F. Flores • Veronica Flores • Veronica A. Flores • Rita Galaviz • Marcos Galindo • Jose L. Gallinar • Sonia Gamboa • Leopoldo Garcia JR. • Elizabeth Garcia • Jose M. Garcia • Karyn Garcia • Luis E. Garcia • Maria Garcia • Roberto Garcia • Rodolfo Garcia • Vanessa Garcia • Omar A. Gardea • Ricardo S. Gaytan • Alejandra Gomez • Jose L. Gomez • Maribel Gomez • Sonia Gomez • Alberto Gonzales • George E. Gonzalez • Jose A. Gonzalez • Nydia Gonzalez • Robert F. Gonzalez • Salvador Gonzalez • Annabelle Gonzalez-Ortiz • Gerald L. Gordier • James R. Grado • Rocio Granados • Shane B. Griffith • Patricia Guerra • Josefina Guerrero • Jose L. Gutierrez • Richard Guzman • Gene D. Gwyn • Diana Heredia • Sergio Hermesdorf • Robert J. Hernandez JR. • Alejandro Hernandez • David Hernandez • Edward Hernandez • Jesus T. Hernandez • Leticia Hernandez • Luis A. Hernandez • Maria A. Hernandez • Maria Luisa Hernandez • Miguel A. Hernandez • Cassandra R. Herrera • Jesus Roberto Herrera • Luis Herrera • Ricardo Herrera • Virginia R. Hill • Enrique Hinojos JR. • Jose A. Holguin • Pedro D. Huerta • Zulema Huerta • Ricardo Jacquez • Raul Jaramillo • Azael A. Jimenez • Francisco M Jimenez • Juan Francisco Jimenez • Louis Johnson • Pamela R. Kimbell • Gary A. Knudsen • Gilberto Laca • Sonia Legarretta • Jeremy S. Lehman • Carlos Leon • Lorenzo A. Lira • Carlos M. Lopez JR. • Jose E. Lopez • Mariza Lopez • Martin Loya • Alfredo Lozano • Bertha A. Lucero • Santos Luevano • Jose G. Lujan • Amanda R. MacIas • Jaime G. MacIas • Ricardo Maese • Arturo Magallanez • Ricardo Maldonado • Victor Maldonado • Victor Mancha • Carlos Manzano • Monica Marin • Ana L. Marquez • Martha L. Marrufo • Deborah Martinez • Jose A. Martinez • Luis F. Martinez • Michael J. Martinez • Omar L. Martinez • Raul L. Martinez • Rebecca Martinez • Roberto Martinez • Sonya E. Martinez • Maria De Los Angeles Martos • Alfredo Mascorro • Santos L. McGuinness • Arturo Medina • David Medina • Gregorio Medina • Robert Medrano • Sergio M Melendez • Marta C. Mena • Jesus J. Mendez • Eduardo Miranda • Priscilla Miranda • Luis G. Mireles • Armando Molina • Jose L. Molina • Roman Montelongo • Raul G. Montes • Martin J. Montez • Cynthia M. Montion • Hector R. Montoya • Salvador J. Montoya • Reyna E Mora • Carlos Morales • Gerardo Morales • Hector Morales • Judith Morales • Morayma Morales • Nadia P. Morales • Jose Luis Moreno • Leonardo D. Moreno • Lisa K. Mota • Roman Moya • Felix Muniz • Jose Munoz JR. • Cynthia Munoz • Jaime Munoz • Jesus G. Munoz • Richard B. Munoz • Sergio T. Nahle • George E. Navarro • Stephen J. Navarro • Cipriano Nevarez • David Nieto • Jose Luis Nunez • Maria Angelica H. O’Brien • Juan A. Olvera • Alicia Ornelas • Manuel Ornelas • Ramon C. Ortega • Enrique Ortiz • Jose A. Ortiz JR. • Jose L. Ortiz • Daniel Pacheco • Miguel A. Pacheco • Saul Pacheco • David A. Padilla • Robert K. Paige • Monica A. Parra • Rex K Parsons • Lillian C. Payan • Albert Pedregon • Joel Pena • Linda A. Pena • Angelica M. Perales • Luis Ruben Perales • David Perez • Juan L. Perez • Lisandra P. Piper • Alfredo Pizarro • Guillermo Pizarro • Lucila M. Polar • Alfredo Ponce • Robert P. Porras • Rosalinda Portillo • Manuel Prieto JR. • Juan C. Prieto • Arthur S Provenghi • Lourdes P. Quezada • Lucio G. Ramirez • Martin E. Ramirez • Juan M. Ramos • Laura Ramos • Alonzo Rangel • Hector Rangel • Luz Marcela Renteria • Claudia L. Renteria-Arras • Tomas Reveles • Miguel B. Reyes • Elizabeth N. Reza • Manuel Reza • Jeannette L Richie • Dolores Rivera • Lorena Rivera • Arturo Roa • Arturo Robles • Gilberto Robles • Lydia Aguirre Rocha • Bernardo Rodriguez JR. • Eugene Rodriguez • Jesus P. Rodriguez • Olivia Rodriguez • Pedro J Rodriguez • Veronica Rodriguez • Tanya M. Rohwer • Carlos Rojas • Gustavo A. Rojas • Alejandro Romero • Maria D. Romero • Ann Romo • Rocio Rubio • Ernesto R. Ruiz • Aracely G. Saenz • Oscar Salcido • Esteban Salgado • Manuel S. Salinas • Glenn Samples • Rene A. Sanchez • Oscar S. Serrano • Juan R. Sifuentes • Ida Silva • David F. Smith • Elizabeth A. Smith • Carlos Soto • Norma Soto • Jose Talavera JR. • Richard Talavera • David Tapia • Hugo F. Tellez • Jonathan Terrazas • James Tobias • Jorge G. Torres • Marcos Torres • Maria Lourdes Torres • Miguel A. Torres • Ruben Trevino • Rosalba Urbina • Erika Valadez • Juan Valdez JR. • Melissa T. Valdez • Julie S. Valdivia • Carlos A. Valles • Juan Valles • Mario Valles • Raymond Valles • Norma B. Vara • Antioco Varela • Antonio Vasquez • Sergio R. Vasquez • Celia Velasquez • Roman Baltazar Velasquez • Antonio Vilchis • Maria A. Villanueva • Guillermo Villasenor • Jose M. Villegas • Ismael Villela • Carlos Wall • Charles S. Waterhouse • Alexandra N. Welch-Quarm • Thomas Manuel White • Lucia R. Wiesinger • Jose E. Wong • Rosa M. Yanez • Berenice Yoder • Charles E. Young • Raul Zavala • William Zeigler • Dolly I. Zengotita •

Robert Bagby • David Balderrama • Jose Luis Cabriales • Rafael Castillo • Marcela Ivette Chavez • Victor M Cisneros • Alejandro Delgado Jr. • Monica Delgado • Hector Fuenes • Laura Gill • Adrian Gonzalez • Ramon Gutierrez Jr. • Laura L Gutierrez • Enrique Ibarra • Nohemi Leyva de Trevizo • Brenda Longoria • Jesus J Lopez • Osvaldo R Lopez • Jose A Lozano • Edgar Mendoza •Armando Muro • Teresa Nanez • Gerardo Ochoa • Roy Padilla • Lily Perez • Danny Quinones • Alfredo Rayas • Raul Reyes • Graciela Reza • Alfonso E Rojas • Aaron A Salais • Sylvia G Sealey • Juan D Vasquez • Lizette Velarde • Ramon Zubia

HACEP EMPLOYEES

HAC EMPLOYEES

As of December 2013

18

SECTION 4 / FINANCIAL STATEMENTS

+ STATEMENTS OF NET ASSETS + STATEMENTS OF REVENUE, EXPENSES, AND CHANGES IN NET ASSETS + STATEMENTS OF CASH FLOWS + CAPITAL ASSETS

19

FINANCIAL STATEMENTS STATEMENTS OF Net Assets

( I N T H O U S A N D S )

2013 2012 2011

ASSETSCurrent Assets

TOTAL assetS

liabilitiesCurrent Liabilities

$62,838

9,835 Restricted Assets

Other Assets, noncurrent 27,131

$225,909

Noncurrent Liabilities 9,230

$65,755

10,503

26,221

$220,240

$12,910

7,498

YEAR ENDED JUNE 30,

Capital Assets, net 126,105 117,761

$8,842

TOTAL liabilities 18,072 20,408

net assetS 207,837 199,832

TOTAL liabilities & net assets $225,909 $220,240

2012

liabilities and net assets (in millions)

$235

$70,035

6,429

28,461

$234,835

16,474

129,910

$8,829

25,303

209,532

$234,835

$226

2013

$220

2011

20

STATEMENTS OF Revenue, Expenses, and Changes in Net Assets

( I N T H O U S A N D S )

2013 2012 2011

OPERATING REVENUEDwelling Rental

TOTAL OPERATING REVENUES

EXPENSESOperating Expenses

TOTAL EXPENSES

Operating Profit (loss)

Non-Operating Revenues (Expenses), Net

Net Income (loss) before Capital GrantsCapital Grants

Increase in Net Assets

NET ASSETS, END OF YEAR

$17,800

50,375Federal, State & Local Grants

Other Revenues 6,139

74,312

Depreciation Expense

Housing Assistance Payments

39,713

7,962

30,767

78,442

(4,130)

264

(3,866)11,871

Net Assets, Beginning of the Year, as Restated

8,005199,832

$207,837

$17, 295

59,096

3,140

79,531

38,388

7,203

28,244

73,835

5,696

(1,886)

3,81020,993

24,803175,029

$199,832

YEAR ENDED JUNE 30,

$18,463

51,201

4,537

74,201

37,180

10,219

31,597

78,996

(4,795)

(266)

(5,061)6,756

1,695207,837

$209,532

21

STATEMENTS OF CASH FLOWS

( I N T H O U S A N D S )

2013 2012 2011Cash Flows Provided byOperating Activities

cash and Cash equivalents,

YEAR ENDED JUNE 30,

Cash Flows used by Capital &Related Financing Activities

Cash Flows Provided (Used) by Investing Activities

Net Increase in Cash

Cash and Cash Equivalent, Beginning of Year

end of year

Building and Improvement

TOTAL capital assetSLess Accumulated Depreciation

Furniture and Equipment

Construction in Progress

capitaL assetS, net

CAPITAL ASSETSLand

$3,630

(3,502)

160

288

65,241

$65,529

$27,832

(6,068)

(2640)

19,124

46,117

$65,241

$31,139

347,491

273,000

$117,761

12,623

30,729

(229,730)

$31,151

363,650

302, 251

$126,104

13,425

16,823

(237,546)

$4,228

(1,918)

2,842

5,152

65,529

$70,681

$31,109

377,580

313,274

$129,910

14,100

19,097

(247,670)

22

THE HOUSING AUTHORITY OF EL PASO 5300 EAST PAISANO DRIVE, EL PASO texas , 79905

WWW.HACEP.ORG

SPECIAL THANKS TO THE GRAPHIC DESIGN DEPARTMENT AT THE UNIVERSITY OF TEXAS AT EL PASO DESIGNER : DAVID PADILLA /ART DIRECTOR : CLIVE COCHRAN