Title
Resolution to Approve the FY15 Housing Commission Agency-Wide Operating Budget
Memorandum
The Housing Commission's fiscal year begins July 1st and ends June 30th of each year; and the Commission has prepared an initial agency wide operating budget for FY15 (July 1, 2014 thru June 30, 2015).
The FY15 Budget has several changes from previous year's budgets primarily due to the RAD conversion process. As properties convert from public housing to project-based vouchers, they are removed from the East and West AMPS as public housing units and moved to new cost centers based on their funding.
· For example, Miller Manor and S. Maple are expected to close by August 1, 2015, and therefore 1 month of revenue and expenditures are included in the West AMP. Starting August 1, 2015, the revenues and expenditures for S. Maple and Miller have been moved to Maple Towers.
· Baker, Hikone and Green-Baxter are also expected to close by August 1, 2015 and have been moved to River Run and therefore 1 month of revenues and expenditures are included in the East AMP.
· And all of the non-LIHTC properties that are converting or being sold have been moved to Colonial Oaks starting September 1, 2015.
· The East and West AMPS will continue to track the properties that will not convert until FY16.
· The cash-flow from the LIHTC properties are restricted and not included in the net-income admin line item. Some of the cash-flow will go to the AAHC, however, at the end of each fiscal year, after the audit is complete for these properties, the cash-flow will be distributed as agreed to in the development agreement with the equity investor.
The Central Office includes several new grants.
· New revenue from the Continuum of Care (CoC) grant because the AAHC will be getting paid in FY15 to administer the grant for local non-profits.
· The Family Self-Sufficiency Supportive Services Coordinator (FSS/SSC) positions have been moved to Central Office and the revenue from the CoC and FSS grants will be revenue to Central Office to pay for these positions.
· All of the services from CSTS, Peace, and CAN are now in central office as well as any outside funding for these positions because the RAD PBV/LIHTC properties do not allow services to be a line-item expenditure.
· The AAHDC Board approved $24,000/year in revenue to be transferred to the AAHC, and those revenues are in Central Office to pay for services.
· The Sale of W. Washington and Evelyn are on hold as I am evaluating whether to convert them to AAHC PBV units instead of selling them.
· Increase to Yardi software costs as we have added the HQS inspection module, Affordable Housing Module and we have increased the number of users.
· The budget also shows the fund balance for Cranbrook (S8 NC) moving to the Central Office cost center because the AAHC is no longer the contract administrator for Cranbrook as agreed to with HUD at the start of the contract.
The Development budget includes the Community Challenge Planning Grant from the County which will be primarily pass-through funds for subcontractors, with $30,000 in program administration fees.
Staff
Jennifer Hall, Executive Director, Ann Arbor Housing Commission
Body
WHEREAS, the Housing Commission's fiscal year begins July 1st and ends June 30th of each year; and
WHEREAS, the Commission has prepared an initial agency wide operating budget for FY15 (July 1, 2014 thru June 30, 2015); and
WHEREAS, the Commission staff is presenting this budget to the Board of Commissioners for its review prior to the start of the fiscal year 2015; and
WHEREAS, the Commission staff has prepared such budget by estimating revenues and expenses based on current year-to-date actual financial data for FY14, historical financial data, and project pro formas for the properties being converted under the RAD program; and
WHEREAS, the Commission staff will be preparing monthly agency wide financial reports for the Board comparing year-to-date actuals to budget and also intends to revise the budget on a quarterly basis as needed; and
NOW THEREFORE BE IT RESOLVED, that the Ann Arbor Housing Commission Board approve the Commission's Agency Wide FY15 operating budget as attached hereto.