Title
Resolution to Amend the Budget and Appropriate Funds Not to Exceed $60,000.00 from the General Fund Fund Balance to the Ann Arbor Housing Commission for Operating Support (8 Votes Required)
Memorandum
The Ann Arbor Housing Commission is projecting a budget deficit for FY19 in the amount of $60,000 due to insufficient funding from HUD to administer the Voucher Program as well as due to high vacancies related to the RAD public housing conversion process.
The AAHC's FY19 $20 million budget included $228,000 City general funds. The City currently provides $160,000/year recurring general funds to the AAHC and any additional general funds for operations are non-recurring. The AAHC is projecting an additional $205,000 budget deficit through June 30, 2019. However, City Administration is projecting that the AAHC will receive a $144,877 rebate from the Risk Fund in FY20, if approved by City Council, which will leave a $60,000 budget deficit.
It is difficult to budget for HUD programs due to the volatility and unpredictability of the federal budget process and the related timing of the City's budget process.
City budget year is July - June, adoption date = May
Federal budget year is October - September, adoption date = unknown
HUD budget year is January - December, adoption date = unknown & retroactive
The City's FY19 budget was adopted in May 2018. HUD's budget for CY18 was adopted in May 2018 retroactive to January 2018 and through December 2018. And HUD's budget for CY19 was adopted in March 2019 retroactive to January 2019 and through December 2019.
Although it is also near impossible to predict HUD's FY20 budget, given the president's proposed FY20 HUD budget cuts, the AAHC is projecting a total of $220,000 budget deficit for FY20 and $160,000 budget deficit for FY21 based on level funding with FY19.
These budget deficits are decreasing each year because the AAHC is converting its public housing under the Rental Assistance Demonstration program to Pro...
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