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File #: 18-1108    Version: 1 Name: 7/18/18 AAHC 3 FTE increase FY19 budget
Type: Resolution Status: Passed
File created: 7/16/2018 In control: City Council
On agenda: 7/16/2018 Final action: 7/16/2018
Enactment date: 7/16/2018 Enactment #: R-18-289
Title: Resolution to Increase 3 FTE's in the FY19 Budget (8 Votes Required)
Resolution to Increase 3 FTE's in the FY19 Budget (8 Votes Required)
The Ann Arbor Housing Commission is requesting approval of 3 additional FTE's in the FY19 budget due to increased HUD funding opportunities. These positions will be fully paid for by HUD and the AAHC is not requesting additional general funds.

The Ann Arbor Housing Commission (AAHC) was notified on May 20, 2018 that the federal department of Housing and Urban Development (HUD) allocated AAHC $12,313,758 for the CY2018 (January 2018 to December 2018) for the Housing Choice Voucher Program Housing Assistance Payments (HAP). This represents a $600,000 increase over AAHC Calendar Year 2017 actual expenditures for rental subsidies. This amount is also an increase of close to $1 million more than HUD projected the AAHC CY2018 funding would be. The AAHC based our initial budget on widely expected budget cuts, which actually turned into budget increases. This additional funding increase will allow the AAHC to hire an additional FTE using 100% federal dollars at no additional cost to the City.

The federal budget year is October 1 to September 30th and HUD's budget is January to December. Unfortunately, since Congress did not adopt the budget until March of 2018, HUD was not able to provide a budget to the AAHC until 5 months into our HUD budget year which only leaves the AAHC 7 months to expend these funds or risk losing them. The AAHC projects that it would need to lease up an additional 140 vouchers by December 31, 2018 to expend $600,000 in the 2018 calendar year. If the AAHC leases up these additional vouchers by December 31, 2018, HUD will annually renew the funding for both rental subsidies and approximately $93,000/year in administrative fees for the AAHC to pay for 1 FTE ($78,000) and related administrative costs such as inspection fees and software licensing fees.

In addition, HUD issued 2 new Notices of Funding Availability (NOFA's) in May 2018 for additional special needs ...

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