1. Housing Authority of the City of Alameda Budget Presentation For FY 2018-19
June 20, 2018

2. FY 2018-19 Budget Highlights (Attachment A)
Change
Budget $ %
Operating Income
15,603,775
16,051,618
447,843 3%
Operating Expenses
14,114,952
14,549,037
434,085
Net Operating Income
1,488,823
1,502,581
13,758 1%
HAP income
27,402,565
30,130,914
2,728,349
10%
HAP Expenses
Net HAP -
Less: Depreciation
1,552,833 0%
Operating Income After Depreciation
(64,010)
(50,252)
-21%
Cash Adjustments
426,238
1,347,282
921,044
216%
Operating Cash before CIP
362,228
1,297,030
934,802
258%
Reserve Funds Withdrawal
3,868,000
1,715,000
(2,153,000)
-56%
Operating Funds (IP Reserve)
1,300,000
Capital Improvement Projects
(3,868,000)
(4,015,000)
(147,000) 4%
(1,000,000)
OPERATING INCOME CASH
297,030
(65,198)
-18%

3. Budget Structure AAHC 4 properties transferred May 1
Presented here in operating budget but will be approved in separate meeting
Overall Includes:
Section 8 Housing Assistance Payments (HAP pass-through)
Operating income and Expenses
Properties, Sec8 admin fee, CDBG, HOME, Successor Agency, Rent Program (12 months) etc.
Capital Improvement Projects (CIP)
Does not include:
Island City Development (ICD)

4. Methodology FY 2018-19 Budget
A complete update of personnel costs as these form 53% of the expense budget
Revised rental income to reflect an average 5% increase in contract rent for 2019 (3% over the year)
Generally a 3% increase in expenses unless actual is higher
Does not include North Housing (approx. $15MM in land)

5. HAP Budget Highlights (Attachment B)

6. Section 8 Housing Assistance Payments (HAP pass-through)
Total HAP for FY $30,130,914
HAP is received by AHA and paid to landlords housing Section 8 tenants
Federal funds must be kept separate from all other Housing Authority funds
Assumes leasing of 17,820 units (1,485 per month), compared with 17,916 units month (or 1,493 per month) for prior year.

7. Operating Budget Highlights (Attachment C)

8. Operating Income
FY Total Operating Income is $16,051,618 or 3% higher
Due to developer fee from Littlejohn Commons. Rents increase but so do vacancy due to capital improvement projects.
Income sources:
Rental income from tenants in AHA-owned properties.
Rental subsidy (HAP) received for Section 8 recipients in AHA-owned properties.  
Tax increment Funding (TIF) for Independence Plaza 
Grant Income for the Family Self Sufficiency (FSS) program
Administrative Fee Income:
Only to cover the cost of administration for the Section 8 programs.
Included at a proration of 77%
Increase of $46K due to stable proration and increase in per unit fee
Other income – interest, CDBG, HOME etc.

9. Operating Expenses
FY Total operating expenses is $14,549,037 or 3% higher
Due mainly to staffing costs
More detailed line-by-line breakdown in Attachment C
Increases include
Salary and Benefits
Legal
Recruiting costs

10. Salary & Benefits Schedule of Authorized Positions (Attachment E):
FY (FTE) FY (FTE)
A number of positions eliminated in Housing Programs and Maintenance
COLA 3%
A proposed COLA not to exceed 3% for all employees, except Y-rated staff
Staff will come back to BOC in Aug/Sept. with COLA data
Benefits:
5% increase in maximum AHA contribution assumed
Assumes employee plus 2 dependents for all regular employees
Staff will come back to BOC in Aug/Sept. with updated benefit costs

11. Capital Improvement Projects (CIPs) (Attachment D)

12. Capital Improvement Projects
Four projects valued at $4 million
Sources to pay for these include:
Third party or grant funding (where available)
Property specific reserves held by lenders/bond holders, subject to their approval or held by AHA
Cash flow from the specific property or other properties

13. Operating Budget by Program

14. AHA Properties
Assumes 4% vacancy except Independent Plaza and Rosefield Village due to capital projects
Assumes 0.75% write off
5% increase in contract rent for all sites spread over the calendar year
Excess cash will be used for capital projects

15. Housing Programs Department
Administrative Fee
Revenues from Administrative Fees $ 1,634,828
Expenses ,888,
Net Loss ($1,253,175)
Cost issues – fourth year of losses
Reduced leasing due to market conditions and shortfall
Streamlining initiatives with HUD upcoming (e.g. triennual recerts)
Eliminating one FTE unfilled position
Staffing may need to be reallocated/reduced in future years to balance the Section 8 budget
Proposed Board Action
Approve fund transfer of up to $1,253,175 in next year, from Owned Property operating reserves to the Housing Choice Voucher program.

16. Successor Housing Agency
No revenues as utilizes Successor Housing agency funds received from the City in August of Cash and investment balance of $700K available for this purpose. The budget expenditures are:
Successor Agency Budget:
Salaries & Administration $ 205,612
Pre-development expenses $
Total Successor Agency Budget $ ,612

17. Items that will impact cash in FY 2018-19
2100 Clement: purchase of four units at approximately $840,000 from reserves. Two have been purchased.
Any additional GASB 68 or OPEB payments approved by the Board in the next fiscal year

18. Cash Flow Operating surplus FY 2018-19 $1,502,581
After CIP, cash flow additions for In-lieu and successor agency receipts and after principal and reserves payments
FY $297,030
Assumes use of surplus cash from operations for CIP
Continuation of AHA’s plan to invest in Owned Properties
Cash and investments at March 31, 2018 was in excess of $23 MM

19. Staff recommendation

20. Adoption of the Housing Authority’s Budget for Fiscal Years 2018-19 including approval of:
Housing Assistance Payment (HAP) Budget (Attachment B)
Operating Income and Expenses (Attachment C)
Capital Improvement Project (CIP) Budget and related use of property and agency reserves and surplus operating cash from Fiscal Years to cover these expenses (Attachment D)
Revised Schedule of Authorized Positions to be effective July 1, (Attachment E)
Transfer by the Executive Director of up to $1,253,175 in the budget year, as needed, from AHA property reserves to cover losses in the Section 8/Housing Programs operating budget. (Attachment C)