Title
Resolution to Approve an Amendment to the FY22 Ann Arbor 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 Ann Arbor Housing Commission operating budget for FY22 (July 1, 2021 thru June 30, 2022).
The budget includes all of the HUD program cost centers for the AAHC on the left side of the budget spreadsheet. The budget also includes the AAHC's affiliated business entities on the right side of the budget sheet. The AAHDC, AAAHC (Lurie Terrace non-profit legal entity) and Colonial Oaks are affiliated entities and they are reported on the AAHC's audit, but the tax credit properties called Maple Tower, River Run, Swift Lane and West Arbor are audited separately as separate legal entities.
Staff recommend that the Board adopt an amended budget due to significant dollar amount changes since the budget was adopted.
* The City of Ann Arbor provides $546,000 in general funds as a direct pass-through to our non-profit partners that provide tenant services to residents and voucher participants. The original budget showed these funds as revenue and expenses in the AAHC's Central Office budget. After discussions with our auditor and City Finance staff, we decided that the City should allocate these funds to our non-profit, the Ann Arbor Housing Development Corporation (AAHDC) instead, in order to protect these funds from HUD. The AAHC's Central Office funds are subject to HUD oversight and theoretically HUD could take back funds from the AAHC Central Office. The revised budget shows a reduction of $546,000 from the Central Office line item "City General Fund" revenue and an increase of $546,000 to the AAHDC line item "City General Fund" revenue. Likewise, the revised budget shows $546,000 reduction in "tenant services" expenditure line item from the Central Office and increase in the AAHDC "tenant services" expenditure line item....
Click here for full text