2019 annual operating budget...2019 annual operating budget the housing authority of the city of...

2019 ANNUAL

OPERATING

BUDGET THE HOUSING AUTHORITY OF THE CITY OF

DURHAM, NORTH CAROLINA

MISSION STATEMENT: TO DEVELOP, OWN, MANAGE AND CONTRIBUTE TO

DIVERSE COMMUNITIES OF CHOICE.

PROPOSED DECEMBER 2018 – PENDING BOARD APPROVAL

2019 ANNUAL OPERATING BUDGET

1

PAGE INTENTIONALLY LEFT BLANK


2

TABLE OF CONTENTS

SECTION I – INTRODUCTION TO THE BUDGET FOR 2019

Transmittal Letter ............................................................................................................................................ 5

Board of Commissioners ................................................................................................................................ 6

Organizational Structure ................................................................................................................................ 7

Staffing and Budget Allocations .................................................................................................................... 8

SECTION II – THE AUTHORITY IN 2019

Profile of the Authority ................................................................................................................................. 11

Strategic Plan .................................................................................................................................................. 12

SECTION III – THE BUDGET FOR 2019

FY2019 Summary Budget ............................................................................................................................. 14

FY2019/FY2018 Summary Budget Comparison ........................................................................................ 17

Low Income Public Housing (LIPH)

LIPH Program Summary .............................................................................................................................. 18

LIPH Budget Assumptions & Projections .................................................................................................. 19

LIPH – Property Management Team 1 ....................................................................................................... 20






3

TABLE OF CONTENTS

Affordable Housing (AFH)

AFH – Program Summary ........................................................................................................................... 36

AFH – Budget Assumptions & Projections ................................................................................................ 37

AFH – Property Management Team 4 ........................................................................................................ 38

AFH – Property Management Team 5 ........................................................................................................ 43

Central Office Cost Center (COCC)

COCC Program Summary ........................................................................................................................... 46

COCC Budget Assumptions & Projections ................................................................................................ 50

COCC Consolidated Budget ........................................................................................................................ 52

Housing Choice Voucher Program (HCVP)

HCVP Program Summary ............................................................................................................................ 53

HCVP Budget Assumptions & Projections ................................................................................................ 54

HCVP Budgets (Administration|HAP) ..................................................................................................... 56

Development Ventures, Inc (DVI)

DVI Program Summary ................................................................................................................................ 58

DVI Budget ..................................................................................................................................................... 59

Learning Assistance, Inc (LAI)

LAI Program Summary and Budget ........................................................................................................... 60


4

SECTION I INTRODUCTION TO THE BUDGET FOR 2019


5

2019 ANNUAL

OPERATING BUDGET December 2018

To the Chairman and the Board of Commissioners

I am pleased to present the 2019 preliminary budget proposal for

The Housing Authority of the City of Durham (The Authority) and

its Instrumentalities.

This document provides the Board, Staff and other Stakeholders

with a comprehensive view of inflows and outflows of financial

resources used for daily operations. It explains our core businesses,

how our programs are funded and how we allocate these funds

annually. It is also a tool for management to aid in decision-making

and performance-monitoring.

In 2019, The Authority will celebrate its 70th anniversary and we are

more committed than ever to continue blazing the trails as the

developer, property manager and administrator of affordable

housing and programs in the City of Durham.

Our focus this year is to cultivate a “Spirit of Excellence” which

starts with investing in our most valuable asset – our employees. As

we move to a more privatized property management platform, it is

important that we stay abreast with industry trends and refine our

skillset. We will focus on quality employee training as a means to

increase efficiency and usability in our operations.

We look forward to discussions about this budget and we are ready

to answer any questions you may have.

Respectfully submitted,

Anthony Scott

Chief Executive Officer

2019 OPERATING

INCOME (LOSS)

Low Income Public Housing

$321,530

Central Office Cost Center

$74,980

HCVP Administration

($188,709)

Development Ventures, Inc

$774,270

Edgemont Elms Housing, Inc

$114,223

Goley Pointe, LLC

($21,582)

Learning Assistance, Inc

$3,029

Preiss Steele Place, LLC

$136,510

Damar Court, LLC

$60,170

Morreene Road, LLC

$18,562


6

BOARD OF COMMISSIONERS

The Housing Authority of the City of Durham is governed by a seven-member Board of

Commissioners. The Board is comprised of active public servants within the Durham community who

are appointed by the Durham City Council. These concerned and dedicated citizens serve without pay.

Residents of subsidized housing also have the opportunity to serve as members of the Board. Each

Commissioner is appointed for a five-year term. The Chief Executive Officer acts as the

Secretary/Treasurer for the Board.

Daniel C. Hudgins, Chairman

George K. Quick, Vice Chairman

Gloria M. Nottingham, Member

Patrice Nelson, Member

Larry D. Yon, II., Member

Robert Glenn, Member

Vacant, Member (To be appointed)

The Board of Commissioners ensure that the Authority operates within the State statutes and the

programs are run according to HUD regulations. Through the approval and adoption of resolutions,

the Board authorizes the Chief Executive Officer and Senior Staff to implement policies and procedures

that define business activities.


7

ORGANIZATIONAL STRUCTURE

The organization has a matrix structure where programs and functional responsibilities have

reasonably equal weight. The Board of Commissioners appoints the Chief Executive Officer to

administer the affairs of the Authority.


8

STAFFING AND BUDGET ALLOCATIONS

Over the past (5) years, total staffing for the Authority has decreased from 101 in 2015 to a budgeted

number of 102 for 2019. In 2019, 4 new positions – Information Technology Manager, Project Manager –

Development, Project Manager – Strategic Management and Project Training Manager – Strategic

Management will be added in the Central Office Cost Center. In addition, it is proposed that an

Assistant Property Manager be added to Property Management Team 5. Lastly, Property Management

Team 4 will include a Site Laborer.

A new department, Strategic Management was formed in 2018 which is made up of the Compliance

department. The main objective of the Compliance function is to ensure that the property management

businesses and practices are compliant with Federal, State and Local regulations as well as operating

and management agreements.

For budgeting and operational purposes, the staff is allocated to specific cost centers as follows:

Property Management – Low Income Public Housing and Affordable Housing

Housing Choice Voucher Program


Other Grant Funded Programs

The charts below show the 5-year trend for staffing in the Agency. In 2019, the budget proposes a 1.5%

Cost-of-Living Adjustment increase for all employees.


9

STAFFING AND BUDGET ALLOCATIONS

STAFFING

Budget Allocations

Cost Center 2015 2016 2017 2018 2019

Operations (LIPH and Affordable Housing)

Property Management TEAM 1

AMP 003 - Scattered Sites 1.30 1.30 1.27 1.25 1.25

AMP 009 - JJ Henderson 4.50 4.50 4.45 4.45 4.45

AMP 014 - Forest Hills Heights 1.30 1.30 1.34 1.37 1.37

Sub-total Team 1 7.10 7.10 7.06 7.07 7.07


AMP 005 - Cornwallis Road 6.10 6.10 6.14 6.02 6.02

AMP 015 - Laurel Oaks 0.98 0.98 1.00 0.95 0.95

Sub-total Team 2 7.08 7.08 7.14 6.97 6.97


AMP 001 - McDougald Terrace 11.20 11.20 11.18 11.23 11.23

Sub-total Team 3 11.20 11.20 11.18 11.23 11.23


AMP 032 1010 Worth Street - - - 0.04 0.04

Goley Pointe - 0.50 0.46 0.63 0.63

Edgemont Elms Housing, Inc. 0.60 1.40 1.44 1.92 1.92

Priess-Steele Place, LLC 0.43 1.10 1.13 1.48 1.48

Sub-total Team 4 1.03 3.00 3.03 4.07 4.07


AMP 010 - Morreene Road 3.00 2.90 2.85 3.40 3.40

AMP 011 - Damar Court 2.70 2.20 2.24 2.71 2.71

Sub-total Team 5 5.70 5.10 5.09 6.12 6.12


AMP 004 - Oldham Towers 1.60 1.60 1.56 1.57 1.57

AMP 006 - Liberty Street 3.00 3.10 3.10 3.06 3.06

AMP 008 - Hoover Road 2.50 2.50 2.49 2.50 2.50

Sub-total Team 6 7.10 7.20 7.15 7.13 7.13


AMP 007 - Club Blvd 2.80 2.80 1.55 1.59 2.19

AMP 012 - Oxford Manor 6.40 6.40 3.62 3.63 5.02

Sub-total Team 7 9.20 9.20 5.17 5.22 7.21

Total Operations (LIPH|AFH) 48 50 46 48 50

Operations (HCVP)

Housing Choice Voucher Program 15.00 16.00 17.00 17.00 17.00

Total Operations (HCVP) 15 16 17 17 17


Executive Office 4.00 4.00 4.80 5.00 4.00

Administration 6.00 5.00 8.00 8.00 5.00

Financial Services 6.20 5.20 5.20 4.50 5.00

Development 9.50 8.00 6.20 7.50 7.50

Asset Management - 1.00 2.00 1.20 1.20

Strategic Management 6.00

Resident Serivices 11.60 10.60 2.00 2.00 3.00

Total COCC 37 34 28 28 32

Grant Funded

Family Self-Sufficiency 3.00 2.00 3.00

21st Century 1.00 -

Governor's Crime Commission 1.00

Total Positions 101 100 95 96 102


10

SECTION II THE AUTHORITY IN 2019


11

PROFILE OF THE AUTHORITY

The Authority is an autonomous, non-profit municipal entity created by the City of Durham in 1949

pursuant to state law and the National Housing Act of 1937. The Authority exists to provide safe,

decent, and sanitary housing for low-income families of Durham in accordance with the rules and

regulations prescribed by the U.S. Department of Housing and Urban Development (HUD). Although

it maintains close ties with the City on several respects, the Authority is not a component of the City, as

defined by the pronouncements of the Governmental Accounting Standards Board (GASB). The City is

not financially accountable for the operations of the Authority, has no responsibility to fund its deficits

or receive its surpluses, and does not guarantee the Authority’s debt.

The Authority currently has about available 1,386 public housing units in 13 different communities

located throughout the City of Durham. Additionally, the Authority assists in providing 472 affordable

housing units at 5 communities. The Authority also has business-interest in about 135 units of

affordable housing managed by The Community Builders (TCB).

The Authority is authorized to administer 2,815 Housing Choice Vouchers that provide rental

assistance to families renting housing units owned by private landlords.

The Authority utilizes the business model of asset management as required by HUD. Funding,

Budgeting, Accounting, Management and Oversight/Performance Assessment are completed on the

project/program level.

For 2019, DHA will manage 4 main businesses – Low Income Public Housing, Affordable Housing,

Housing Choice Voucher and Central Office Cost Center. Also, Development Ventures, Inc. – an

instrumentality of the Authority will manage all its development and re-development activities. In

addition, Learning Assistance. Inc. - a component unit of the Authority, will manage its scholarship

program.


12

STRATEGIC PLAN

The Strategic Plan of the Authority was developed to set goals and objectives for the Authority for the

next 5 years. The main focus was to create a framework that more closely mirrored the long term plans

of DHA, the community, and most importantly how DHA can better serve its clients.

The Strategic Plan establishes a management control system that consists of both a structure and a

process to guide departmental efforts in attaining the mission of the organization.

The Chief Executive Officer in collaboration with the senior management team defined six major goals

that are aligned with the vision of creating new opportunities, increasing the efficiency and

effectiveness of operations and cultivating a culture that is set on progressive change.

The Authority is committed to developing, providing and managing quality affordable housing within

the City of Durham and endeavors to meet and exceed these goals in the coming years.

The diagram and table below provide details of the foundation on which Strategic Plan is built on.


13

SECTION III THE BUDGET FOR 2019


14

FY 2019 SUMMARY BUDGET

The primary source of external funding for the Authority is the U.S. Department of Housing and Urban

Development (HUD) which provides funding for a variety of programs such as the Low Income Public

Housing (LIPH) and the Housing Choice Voucher Program (HCVP). In addition to the federal

programs, the Authority has established several legal entities to explore and develop innovative

strategies for providing alternative affordable housing possibilities for low-to-moderate-income

residents of the City of Durham. This has allowed the Authority the flexibility to develop several

private/public partnerships to assist with the development of a variety of affordable housing projects.

For the 2019 Budget, projected revenues and expenses are $41,225,248 and $39,905,314 respectively.

These amounts include Housing Choice Voucher revenues and expenses for Housing Assistance

Payments and Fees Earned by the Central Office Cost Center.

The following tables and charts show the summarized operating revenues and expenses by program.

THE HOUSING AUTHORITY OF THE CITY OF DURHAM

FY2019 SUMMARY BUDGET

Fund/Entity

Operating

Revenue

% of Total

Revenue

Operating

Expenses

% of Total

Expenses

Operating

Income/

(Loss)

DHA Entities

Low Income Public Housing 10,585,917$ 25.5% 10,264,387$ 25.5% 321,530$

Central Office Cost Center 4,093,887$ 9.9% 4,018,907$ 10.0% 74,980$

HCVP Administration 1,918,735$ 4.6% 2,107,444$ 5.2% (188,709)$

HCVP HAP 21,312,390$ 51.3% 21,312,390$ 53.0% -$

Development Ventures, Inc. 1,047,685$ 2.5% 273,415$ 0.7% 774,270$

Learning Assistance, Inc. 18,120$ 0.0% 15,091$ 0.0% 3,029$

Edgemont Elms Housing, Inc. 465,411$ 1.1% 351,188$ 0.9% 114,223$

Preiss Steele Place, LLC. 622,384$ 1.5% 485,874$ 1.2% 136,510$

Goley Pointe, LLC. 114,815$ 0.3% 136,397$ 0.3% (21,582)$

Damar Court, LLC. 581,769$ 1.4% 521,599$ 1.3% 60,170$

Morreene Road, LLC. 744,532$ 1.8% 725,970$ 1.8% 18,562$

Total 41,505,645$ 100.0% 40,212,662$ 100.0% 1,292,983$


15


26%

10%

5%

51%

3%

0%

1% 1%0%

1%2%

Operating Revenues $41,505,645



HCVP Administration

HCVP HAP

Development Ventures, Inc.

Learning Assistance, Inc.

Edgemont Elms Housing, Inc.

Preiss Steele Place, LLC.

Goley Pointe, LLC.

Damar Court, LLC.

Morreene Road, LLC.


16


26%

10%

5%

53%

1%0%

1%

1% 0% 1%

2%

Operating Expenses $40,212,662



HCVP Administration

HCVP HAP



Edgemont Elms Housing, Inc.

Preiss Steele Place, LLC.

Goley Pointe, LLC.

Damar Court, LLC.

Morreene Road, LLC.


17

FY 2018/2018 SUMMARY BUDGET COMPARISON

The following chart compares the 2019 budget to the approved 2018 budget. Operating revenue for

2018 is about 9% less than 2017. This variance is attributed to a decrease in budgeted revenues for

Damar Court and Preiss Steele Place. Housing Assistance Payments expected for the Housing Choice

Voucher program is about 7% more due to an increase in expected unit months leased.

Operating expenses are projected to decrease about 5% overall which is attributed decreases in

expenses for Low Income Public Housing, Learning Assistance, Inc., Edgemont Elms Housing, Inc. and

both Morreene and Damar, LLCs.

DURHAM HOUSING AUTHORITY FY2018 Approved FY 2019 Recommended

Operating

Revenue

Operating

Expenses

Operating

Income/

(Loss)

Operating

Revenue

Operating

Expenses

Operating

Income/

(Loss)

% Change -

Revenues

% Change -

Expenses

Durham Housing Authority

Low Income Public Housing 10,407,262 10,440,827 (33,565) 10,585,917 10,264,387 321,530 2% -2%

Central Office Cost Center 3,498,284 3,670,493 (172,209) 4,093,887 4,018,907 74,980 15% 9%

HCVP Administration 1,674,631 1,759,642 (85,011) 1,918,735 2,107,444 (188,709) 13% 17%

HCVP HAP 19,880,440 19,880,440 - 21,312,390 21,312,390 - 7% 7%

Total 35,460,617 35,751,402 (290,785) 37,910,929 37,703,128 207,801

Component Units

Development Ventures, Inc. - 272,056 (272,056) 1,047,685 273,415 774,270 100% 0%

Learning Assistance, Inc. 17,980 12,000 5,980 18,120 15,091 3,029 1% 20%

Edgemont Elms Housing, Inc. 431,837 393,631 38,206 465,411 351,188 114,223 7% -12%

Preiss-Steele Place, LLC. 659,532 512,057 147,475 622,384 485,874 136,510 -6% -5%

Goley Pointe, LLC. 104,806 118,625 (13,819) 114,815 136,397 (21,582) 9% 13%

Damar Court, LLC. 658,177 534,924 123,253 581,769 521,599 60,170 -13% -3%

Morreene Road, LLC. 735,169 870,166 (134,997) 744,532 725,970 18,562 1% -20%

Total 2,607,501 2,713,459 (105,958) 3,594,716 2,509,534 1,085,182

Total 38,068,118 38,464,861 (396,743) 41,505,645 40,212,662 1,292,983 -9% -5%


18

LOW INCOME PUBLIC HOUSING

PROGRAM SUMMARY

The Authority manages several communities pursuant to HUD's Low Rent Public Housing program.

There are:

• 1,409 Public Housing units within 14 developments which are owned and managed by the

Authority;

• 14* Public Housing units within 1 development owned by a subsidiary of Development

Ventures, Inc., Goley Pointe, LLC and managed by the Authority.

*Operating Subsidy for these units pass-through the Authority.

For the Public Housing program, HUD determines an allowable amount for the operation of a housing

community, factors in the amount the Authority may be able to collect from tenants for rent they pay,

and HUD then provides a subsidy to housing authorities to make up that difference.

According to the asset management model mandated by HUD, each AMP is treated as a separate

project for budgeting and accounting purposes. Although we present information and discuss budget

changes for the AMPs on a consolidated basis, each AMP's budget stands on its own.

For internal management purposes, and as reflected in this section for presentation of budgets, the

Authority has organized operations staff into management teams. Each management team is

responsible for their assigned AMPs. In some cases, like Management Team 3, this may be a single

property like McDougald Terrace. In other cases, like Management Team 1, there may be multiple

properties like Scattered Sites, JJ Henderson and Forest Hill Heights.

In cases where multiple properties are managed, costs for the management team are allocated. The

most common allocation is for salaries and related personnel costs, which are allocated based on the

number of bedrooms per community. Depending on the nature of the expense, the allocation may also

be done based on the number of units without regard to bedroom size.

On a consolidated basis, budgeted revenues for FY2019 are $10,585,917, an increase of about 2% from

budgeted FY2018 revenues of $10,407,262.

Budgeted expenses for FY2019 are $10,082,723 a decrease of 4% from the budgeted FY2018 expenses of

$10,440,827.


19


FY2019 BUDGET ASSUMPTIONS & PROJECTIONS

The following information provides additional detail regarding the projections of revenues and

expenses for the AMPs.

REVENUES:

1. Total Tenant Revenue includes dwelling rent and other charges to tenant accounts.

Rental revenue is budgeted based on average rents charged in 2018.

2. Total Fee Revenue includes Operating Subsidy which is budgeted at 92% of the total

approved calculation for 2018. Over the past few years’, HUD has funded the Authority

at less than 100% of the calculated Operating Subsidy level. Although these amounts

have increased slightly (2015 – 85.36%|2016 90.21%|2017 93.10%), the 2018 budget is

projected using a conservative approach since the final proration for 2018 is unknown at

this time.

3. Total Other Revenue includes non-dwelling rental income and all other income received

for the AMP from non-tenants.

EXPENSES:

1. Administrative salaries - All administrative salaries are based on actual 2018 rates with

an increase of 1.5%. Vacated positions are budgeted for using the highest-range of

salaries for the position.

2. Management Fees are based on projected occupancy levels multiplied by the 2018 HUD-

published multifamily management fee rate of $56.89 per unit per month.

3. Bookkeeping fees are budgeted for by multiplying the maximum-allowed rate of $7.50

per unit per month by the projected leasing rates.

4. Asset Management Fees are budgeted for AMPS that show excess cash from the 2017

audited financials. These fees can be charged to each AMP each month by multiplying

the number of ACC units by $10 per unit, subject to excess cash.


20


PROPERTY MANAGEMENT TEAM 1

Management Team 1 is responsible for managing 3 properties with a total of 283 units

1. Scattered Sites | AMP #003 (1962)

This property is made up of 50 residential units and 1 management office/community center. It is a

designated senior housing development.

2. JJ Henderson | AMP #009 (1978)

This property is made up of 178 residential units and is also a designated senior housing development

3. Forest Hill Heights | AMP #014 (1981)

This property is made up of 55 residential units and is also a designated senior housing development

Staffing for Management Team 1 is comprised of the positions shown in the organizational chart below.

The costs for personnel are allocated as indicated in the pie graph.

18%

63%

19%

Scattered Sites JJ Henderson Forest Hills


21



FY 2019 BUDGET – SCATTERED SITES

LIPH - Scattered Sites

FY2019 Budget

2018

Budget

2018

Jan - Jun

2018

Estimated

2019

Recommended

Annual

Change

% Annual

Change

REVENUES

Total Tenant Revenue 164,312 81,864 163,728 164,317 589 0%

Total Fee Revenue 144,688 82,311 164,622 162,379 (2,243) -1%

Total Other Revenue 10 - - - -

TOTAL REVENUE 309,010 164,175 328,350 326,696 (1,654) -1%

EXPENSES

Total Operating - Administrative 100,733 42,488 84,976 86,284 1,308 2%

Total Tenant Services 6,000 3,000 6,000 20,775 14,775 246%

Total Utilities 83,264 48,133 96,266 99,154 2,888 3%

Total Maintenance 82,696 33,531 67,062 86,507 19,445 29%

Total Protective Services - - - 1,000 1,000

Total Insurance Premiums 8,326 4,322 8,644 9,001 357 4%

Total Other General Expenses 12,873 5,501 11,002 13,167 2,165 20%

Total Interest Expense and Amortization Cost - - - - -

TOTAL OPERATING EXPENSES 293,892 136,975 273,950 315,887 41,937 15%

EXCESS of OPERATING REVENUE over OPERATING EXPENSES 15,118 27,200 54,400 10,809 (43,591) -80%

TOTAL EXPENSES 293,892 136,975 273,950 315,887 41,937 15%

EXCESS (DEFICIENCY) of TOTAL REVENUE over(under) TOTAL 15,118 27,200 54,400 10,809 (43,591)

(To)/From Unrestricted Net Position (15,118) (27,200) (54,400) (10,809) 43,591

Change in Net Position - - - - -


22



FY 2019 BUDGET – JJ HENDERSON

LIPH - JJ Henderson

FY2019 Budget

2018

Budget

2018

Jan - Jun

2018

Estimated

2019

Recommended

Annual

Change

% Annual

Change

REVENUES

Total Tenant Revenue 482,987 241,771 483,542 465,716 (17,826) -4%


Total Other Revenue 33,916 12,864 25,728 18,192 (7,536) -29%

TOTAL REVENUE 972,902 508,408 1,016,816 960,582 (56,234) -6%

EXPENSES



Total Utilities 226,873 105,523 211,046 217,373 6,327 3%


Total Protective Services 6,000 - - 6,000 6,000

Total Insurance Premiums 50,064 29,713 59,426 61,068 1,642 3%



TOTAL OPERATING EXPENSES 1,046,571 447,203 894,406 997,441 103,035 12%

EXCESS of OPERATING REVENUE over OPERATING EXPENSES (73,669) 61,205 122,410 (36,859) (159,269) -130%

TOTAL EXPENSES 1,046,571 447,203 894,406 997,441 103,035 12%

EXCESS (DEFICIENCY) of TOTAL REVENUE over(under) TOTAL (73,669) 61,205 122,410 (36,859) (159,269)

(To)/From Unrestricted Net Position 73,669 (61,205) (122,410) 36,859 159,269



23



FY 2019 BUDGET – FOREST HILL HEIGHTS

LIPH - Forest Hills

FY2019 Budget

2018

Budget

2018

Jan - Jun

2018

Estimated

2019

Recommended

Annual

Change

% Annual

Change

REVENUES

Total Tenant Revenue 191,178 95,517 191,034 193,752 2,718 1%


Total Other Revenue 2,194 943 1,886 2,052 166 9%

TOTAL REVENUE 331,368 172,384 344,768 345,584 816 0%

EXPENSES

Total Operating - Administrative 104,550 47,128 94,257 93,139 (1,118) -1%


Total Utilities 87,949 45,884 91,768 94,521 2,753 3%


Total Protective Services 500 - - 500 500





EXCESS of OPERATING REVENUE over OPERATING EXPENSES (29,936) 29,307 58,613 19,590 (39,023) -67%

TOTAL EXPENSES 361,304 143,077 286,155 325,994 39,839 14%

EXCESS (DEFICIENCY) of TOTAL REVENUE over(under) TOTAL (29,936) 29,307 58,613 19,590 (39,023)

(To)/From Unrestricted Net Position 29,936 (29,307) (58,613) (19,590) 39,023



24




1. Cornwallis Road | AMP #005 (1967)

This property is made up of 200 residential units and 1 management office/community

center.

2. Laurel Oaks | AMP #015 (2004)

This property is made up of 30 residential units and 1 management office. It is a

designated senior housing development



86%

14%

Cornwallis Laurel Oaks


25



FY2019 BUDGET – CORNWALLIS

LIPH - Cornwallis

FY2019 Budget

2018

Budget

2018

Jan - Jun

2018

Estimated

2019

Recommended

Annual

Change

% Annual

Change

REVENUES


Total Fee Revenue 1,156,968 616,390 1,232,780 1,215,993 (16,787) -1%


TOTAL REVENUE 1,572,935 818,364 1,636,728 1,665,169 28,441 2%

EXPENSES



Total Utilities 415,989 207,634 415,268 425,965 10,697 3%






TOTAL OPERATING EXPENSES 1,727,983 696,309 1,392,618 1,669,857 287,609 20%


TOTAL EXPENSES 1,727,983 696,309 1,392,618 1,669,857 287,609 20%





26



FY2019 BUDGET – LAUREL OAKS

LIPH - Laurel Oaks

FY2019 Budget

2018

Budget

2018

Jan - Jun

2018

Estimated

2019

Recommended

Annual

Change

% Annual

Change

REVENUES




TOTAL REVENUE 289,294 156,531 313,062 297,189 (15,873) -5%

EXPENSES



Total Utilities 82,654 47,503 95,006 97,850 2,844 3%




Total Other General Expenses 65,422 14,545 29,090 16,891 (12,199) -42%




TOTAL EXPENSES 354,258 116,290 231,842 292,849 61,007 26%





27



Management Team 3 is responsible for managing 1 property with a total of 360 units

1. McDougald Terrace | AMP #001 (1959)


center.



100%

McDougald


28



FY2019 BUDGET – MCDOUGALD TERRACE

LIPH - McDougald Terrace

FY2019 Budget

2018

Budget

2018

Jan - Jun

2018

Estimated

2019

Recommended

Annual

Change

% Annual

Change

REVENUES


Total Fee Revenue 2,059,112 1,005,694 2,011,388 1,983,999 (27,389) -1%

Total Other Revenue 2,756 975 1,950 2,000 50 3%

TOTAL REVENUE 2,851,108 1,398,049 2,796,098 2,785,709 (10,389) 0%

EXPENSES



Total Utilities 642,573 308,242 616,484 634,979 18,495 3%

Total Maintenance 1,060,568 450,445 900,890 1,124,298 223,408 25%

Total Protective Services 25,268 570 1,140 26,140 25,000 2193%

Total Insurance Premiums 77,949 37,859 75,718 75,718 - 0%



TOTAL OPERATING EXPENSES 2,601,947 1,176,030 2,352,060 2,917,013 564,799 24%

EXCESS of OPERATING REVENUE over OPERATING EXPENSES 249,161 222,019 444,038 (131,304) (575,342) -130%

TOTAL EXPENSES 2,601,947 1,176,030 2,352,060 2,917,013 564,799 24%

EXCESS (DEFICIENCY) of TOTAL REVENUE over(under) TOTAL 249,161 222,019 444,038 (131,304) (575,342)

(To)/From Unrestricted Net Position (249,161) (222,019) (444,038) 131,304 575,342



29




1. Oldham Towers | AMP #004 (1967)

This property is made up of 106 residential units and 1 community center.

2. Liberty Street | AMP #006 (1972)

This property is made up of 108 residential units and 1 management office.

3. Hoover Road | AMP #008 (1969)




22%

43%

35%

Oldham Towers Liberty Street Hoover Road


30



FY2019 BUDGET – OLDHAM TOWERS

LIPH - Oldham

FY2019 Budget

2018

Budget

2018

Jan - Jun

2018

Estimated

2019

Recommended

Annual

Change

% Annual

Change

REVENUES



Total Other Revenue 2,789 1,235 2,470 2,388 (82) -3%

TOTAL REVENUE 512,545 267,717 535,434 551,153 15,719 3%

EXPENSES


Total Tenant Services 12,720 6,360 12,720 12,720 - 0%

Total Utilities 99,223 38,199 76,398 100,465 24,067 32%


Total Protective Services 5,000 789 1,578 2,500 922 58%


Total Other General Expenses 14,515 8,754 17,508 16,899 (609) -3%




TOTAL EXPENSES 500,794 229,124 458,248 511,873 51,121 12%





31



FY2019 BUDGET – LIBERTY

LIPH - Liberty

FY2019 Budget

2018

Budget

2018

Jan - Jun

2018

Estimated

2019

Recommended

Annual

Change

% Annual

Change

REVENUES



Total Other Revenue 5,769 - - - -

TOTAL REVENUE 816,221 427,198 854,396 855,768 1,372 0%

EXPENSES


Total Tenant Services 12,960 6,480 12,960 9,225 (3,735) -29%

Total Utilities 194,306 92,945 185,890 190,944 5,054 3%

Total Maintenance 275,264 128,833 257,666 238,971 (18,695) -7%

Total Protective Services 5,000 215 430 5,443 5,013 1166%






TOTAL EXPENSES 811,014 348,004 696,008 717,857 21,837 3%





32



FY2019 BUDGET – HOOVER

LIPH - Hoover

FY2019 Budget

2018

Budget

2018

Jan - Jun

2018

Estimated

2019

Recommended

Annual

Change

% Annual

Change

REVENUES




TOTAL REVENUE 477,068 249,426 498,852 503,406 4,554 1%

EXPENSES



Total Utilities 137,084 68,004 136,008 140,090 4,082 3%







EXCESS of OPERATING REVENUE over OPERATING EXPENSES (28,380) (1,812) (3,624) (7,066) (3,442) 95%

TOTAL EXPENSES 505,448 251,238 502,476 510,472 6,595 2%

EXCESS (DEFICIENCY) of TOTAL REVENUE over(under) TOTAL (28,380) (1,812) (3,624) (7,066) (3,442)

(To)/From Unrestricted Net Position 28,380 1,812 3,624 7,066 3,442



33




1. Oxford Manor | AMP #012 (1972)


center.

2. Club Boulevard | AMP #007 (1969)




30%

70%

Club Blvd Oxford Manor


34



FY2019 BUDGET – CLUB BOULEVARD

LIPH - Club Blvd

FY2019 Budget

2018

Budget

2018

Jan - Jun

2018

Estimated

2019

Recommended

Annual

Change

% Annual

Change

REVENUES

Total Tenant Revenue 303,725 147,949 295,898 296,213 315 0%



TOTAL REVENUE 746,522 379,700 759,400 753,404 (5,996) -1%

EXPENSES



Total Utilities 232,665 90,195 180,390 185,802 5,412 3%








TOTAL EXPENSES 773,956 275,165 550,330 677,006 125,194 23%





35



FY2019 BUDGET – OXFORD MANOR

LIPH - Oxford Manor

FY2019 Budget

2018

Budget

2018

Jan - Jun

2018

Estimated

2019

Recommended

Annual

Change

% Annual

Change

REVENUES


Total Fee Revenue 1,095,573 559,164 1,118,328 1,103,100 (15,228) -1%

Total Other Revenue 31,855 2,585 5,170 5,325 155 3%

TOTAL REVENUE 1,515,904 753,212 1,506,424 1,526,231 19,807 1%

EXPENSES



Total Utilities 416,863 178,496 356,992 389,885 32,893 9%








TOTAL EXPENSES 1,455,781 548,306 1,096,612 1,319,169 222,557 20%





36

AFFORDABLE HOUSING

PROGRAM SUMMARY

Through its commitment to increase and maintain affordability in housing within the City of Durham,

the Authority has been instrumental in the development/redevelopment of affordable housing. The

Authority, through Management Agreements, manages the following properties:

• *Worth Street

• Preiss Steele Place

• Edgemont Elms

• Goley Pointe

• Damar Court

• Morreene Road

*This property was redeveloped by Development Ventures Inc., and is a Public Housing unit managed

by Property Management Team 4.

The Authority has a dedicated and trained staff, Property Management Teams 4 and 5, who are

responsible for managing these properties that are not conventional public housing properties.

As with the other property management teams, salaries and related personnel costs are allocated to

these properties by bedroom size.

Preiss Steele Place is a Low Income Housing Tax Credit (LIHTC) development with 82 units. The

property is also under a Project-Based contract with the Authority’s HCV Program. All units in this

development are eligible to receive rental assistance.

Edgemont Elms is an affordable housing development with 59 units. 16 of these units are under a

Project-Based Rental Assistance contract with HUD’s Multifamily Program. The remaining units are

affordable with some tenants receiving tenant-based rental assistance through the Authority’s HCV

Program.

Goley Pointe is also an affordable housing development with 20 units. Of these, 14 of them are Public

Housing units with operating subsidy that flows through the Authority. The remaining units are

affordable with some tenants receiving tenant-based rental assistance through the Authority’s HCV

Program.

Damar Court is a Low Income Housing Tax Credit development with 102 units. The property is also

under a Project-Based Rental Assistance contract with HUD’s Multifamily Program.

Morreene Road is a Low Income Housing Tax Credit development with 224 units. The property is also

under a Project-Based Rental Assistance contract with HUD’s Multifamily Program.


37

AFFORDABLE HOUSING


The following information provides additional detail regarding the projections of revenues and

expenses budgeted for the Affordable Housing properties.

REVENUES:

1. Dwelling Rental income for FY2019 is budgeted based on averaged actual rental

income received in 2018.

2. Dwelling Rental Income, also includes all rental assistance received from other

programs.

3. For Goley Pointe, operating subsidy is budgeted for the public housing units at 92%

of 2018 calculated amount.

EXPENSES:

1. Administrative salaries and all personnel related costs are allocated to the properties

based on the number of bedrooms per property.

2. Management Fees for Preiss Steele Place are charged according to the management

agreement which requires a charge of 6% of all dwelling rental income received at

the property to be billed as fees.

3. Management Fees for Edgemont Elms are charged according to the management


the property to be billed as fees. The subsidized units are charged $43.00 per unit

month leased in accordance with the published Multifamily management fee rate

4. Management Fees for Goley Pointe are charged according to the management


the property to be billed as fees. The subsidized units are charged fees based on the

published and approved rates for Low Income Public Housing.

5. Management Fees for Damar Court and Morreene Road are charged according to the

management agreements which require 5.5% of all dwelling income received at the

properties to be billed as fees.

6. All affordable housing units are charged for Supportive Services which are

calculated based on costs that are front-lined from Resident Services, Compliance

and Safety/Security.


38

AFFORDABLE HOUSING



1. Worth Street | AMP #032 (2014)

2. Preiss Steele Place | AFH #900 (1993)

This property is made up of 82 residential units. It is a LIHTC development and is also

under a Project-Based Voucher Contract with the HCV Program

3. Edgemont Elms | AFH #800 (1989)

This property is made up of 58 residential units, 16 of which are Public Housing

4. Goley Pointe | AFH #700 (2016)

This property is made up of 20 residential units, 14 of which are Public Housing



47%

1%

15%

37%

Edgemont Elms 1010 Worth St

Goley Point Preiss-Steele Place


39

AFFORDABLE HOUSING


FY2019 BUDGET – WORTH STREET

LIPH - Worth Street

FY2019 Budget

2018

Budget

2018

Jan - Jun

2018

Estimated

2019

Recommended

Annual

Change

% Annual

Change

REVENUES


Total Fee Revenue 2,509 3,128 6,256 6,170 (86) -1%

Total Other Revenue - - - - -

TOTAL REVENUE 12,385 6,932 13,864 15,026 1,162 8%

EXPENSES

Total Operating - Administrative 3,089 1,215 2,430 3,202 776 32%

Total Tenant Services 120 60 120 120 - 0%

Total Utilities 711 299 598 616 18 3%

Total Maintenance 2,614 564 1,128 3,752 2,624 233%

Total Protective Services - - - - -

Total Insurance Premiums 175 92 184 190 6 3%

Total Other General Expenses 1,161 351 702 1,090 388 55%




TOTAL EXPENSES 7,870 2,581 5,162 8,969 3,811 74%





40

AFFORDABLE HOUSING


FY2019 BUDGET – PREISS STEELE PLACE

Preiss Steele Place

FY2019 Budget

2018

Budget

2018

Jan - Jun

2018

Estimated

2019

Recommended

Annual

Change

% Annual

Change

REVENUES


Total Fee Revenue - - - - -

Total Other Revenue 8,010 1,835 3,670 3,689 19 1%

TOTAL REVENUE 659,532 314,104 628,208 622,384 (5,824) -1%

EXPENSES


Total Tenant Services 8,441 - 7,957 8,275 318 4%

Total Utilities 74,994 26,292 52,584 54,162 1,578 3%


Total Protective Services 906 260 520 3,036 2,516 484%



Total Interest Expense and Amortization Cost 105,516 50,615 101,230 97,181 (4,049) -4%


EXCESS of OPERATING REVENUE over OPERATING EXPENSES 147,474 88,363 176,212 136,509 (39,703)

TOTAL EXPENSES 512,058 225,741 451,996 485,874 33,873 7%





41

AFFORDABLE HOUSING


FY2019 BUDGET – EDGEMONT ELMS

Edgemont Elms

FY2019 Budget

2018

Budget

2018

Jan - Jun

2018

Estimated

2019

Recommended

Annual

Change

% Annual

Change

REVENUES


Total Fee Revenue 65,608 32,790 65,580 - (65,580) -100%

Total Other Revenue 144 36 72 74 2 3%

TOTAL REVENUE 431,838 200,421 400,842 465,411 64,569 16%

EXPENSES


Total Tenant Services - - - - -

Total Utilities 40,594 17,142 34,284 34,707 423 1%




Total Other General Expenses 10,910 (5,059) (10,118) 13,713 23,831 -236%

Total Interest Expense and Amortization Cost 25,986 11,962 23,924 22,968 (956) -4%



TOTAL EXPENSES 393,630 133,938 267,876 351,188 83,019 31%





42

AFFORDABLE HOUSING


FY2019 BUDGET – GOLEY POINTE

Goley Pointe

FY2019 Budget

2018

Budget

2018

Jan - Jun

2018

Estimated

2019

Recommended

Annual

Change

% Annual

Change

REVENUES


Total Fee Revenue 49,594 26,328 52,656 51,938 (718) -1%

Total Other Revenue - 160 320 - (320) -100%

TOTAL REVENUE 104,806 68,500 137,000 114,815 (22,185) -16%

EXPENSES


Total Tenant Services 1,680 840 1,680 1,680 - 0%

Total Utilities 24,651 11,070 22,140 22,804 664 3%


Total Protective Services - 584 1,168 2,203 1,035 89%






TOTAL EXPENSES 118,623 64,932 129,864 136,397 6,427 5%





43

AFFORDABLE HOUSING



1. Damar Court | AMP #011 (1967)


2. Morreene Road | AMP #010 (1968)


center.



56%

44%

Morreene Road Damar Court


44

AFFORDABLE HOUSING


FY2019 BUDGET – DAMAR COURT

Damar Court

FY2019 Budget

2018

Budget

2018

Jan - Jun

2018

Estimated

2019

Recommended

Annual

Change

% Annual

Change

REVENUES




TOTAL REVENUE 658,177 264,687 529,374 581,769 52,395 10%

EXPENSES


Total Tenant Services - - - 5,150 5,150

Total Utilities 158,100 63,612 127,224 131,041 3,817 3%


Total Protective Services 4,500 - - - -


Total Other General Expenses 39,524 (1,334) (2,668) 35,303 37,971 -1423%




TOTAL EXPENSES 534,923 211,069 422,138 521,599 96,615 24%





45

AFFORDABLE HOUSING


FY2019 BUDGET – MORREENE ROAD

Morreene Road

FY2019 Budget

2018

Budget

2018

Jan - Jun

2018

Estimated

2019

Recommended

Annual

Change

% Annual

Change

REVENUES



Total Other Revenue - 25,924 51,848 43,032 (8,816) -17%

TOTAL REVENUE 735,169 435,045 870,090 744,532 (125,558) -14%

EXPENSES


Total Tenant Services - - - 5,150 5,150

Total Utilities 257,128 95,810 191,620 197,369 5,749 3%


Total Protective Services 10,609 - - - -


Total Other General Expenses 75,084 (58) (116) 60,245 60,361 -52035%




TOTAL EXPENSES 870,167 295,066 590,132 725,970 132,719 23%





46

CENTRAL OFFICE COST CENTER

PROGRAM SUMMARY

The Central Office Cost Center (COCC) is the fund mandated by HUD to account for “centralized”

services and functions necessary to operate a housing authority. Most of the functions of the COCC are

not directly attributable to the public housing communities or other programs. In essence, they are the

overhead functions. For the Authority, these include:

• Executive Office

• Administration

• Financial Services

• Asset Management

• Resident Services

• Development

• Strategic Management

Funding for the COCC is in the form of fees charged to projects or programs. The fees include those

specified by HUD as management fees, bookkeeping fees, asset management fees, or fees for services.

HUD regulates which of these fees may be charged to any given program and how the fee is to be

calculated.

The Authority does provide Technical Services on a “fee for service” basis. The Authority examined

private sector rates for specialized maintenance services – electrical, plumbing, etc. - and has

established rates for these service consistent with the private sector. When an “end user” department

uses these services, they are charged as if they had contracted with a private sector vendor.

As per the rules of Asset Management, service provided by COCC staff that are directly traceable to

properties are front-lined. In 2019, personnel expenses for Resident Services, Compliance and

Safety/Security are charged directly to all properties using the established allocation by number of

bedrooms.

Program management fees are charged to the HCV program according to HUD regulations. These fees

are the higher of 20 percent of earned Administrative Fees or $12.00 per voucher leased per month. In

addition, the COCC can also charge the program $7.50 per voucher leased per month as bookkeeping

fees.

The COCC also charges all grant awards received by the AMPS a fee of up to 10% of the award. These

include Capital and Replacement Housing Factor funds.

As determined by Resource Sharing Agreements, the COCC may also receive fees from the Authority’s

instrumentalities (DVI) and Component Units (Learning Assistance, etc.)


47


PROGRAM SUMMARY

Staffing for the COCC is comprised of the positions shown in the organizational chart below. All

Directors with the exception of the Resident Services Director, are directly expensed to the COCC.


48


PROGRAM SUMMARY

Executive Office

The Executive Office includes the Board of Commissioners, Chief Executive Officer and Staff

responsible for coordinating the day-to-day activities of the Authority. This department is also

responsible for communications with internal as well as external stakeholders including the United

States Department of Housing and Urban Development (HUD), other federal entities, the State, City

and County governments, Investors and Residents in the Public, Affordable and HCV Housing

Programs.

Administration

As mentioned previously, the Administration department which was created in 2017 is made up of

Human Resources and Safety/Security. Human Resources is responsible for planning, implementing

and evaluating employee relations. Tasks performed include: labor relations, employee recruitment,

compensation and benefits management, training and development as well as maintaining awareness

of and compliance with federal, state and local labor laws.

The Safety & Security team works cooperatively with residents, staff, the public and law enforcement

agencies to reduce crime, preserve peace and provide safe environments within the Authority’s

housing developments, both owned and managed. Tasks include monitoring building surveillance,

responding to alarms, patrol and organizing outreach to DHA’s neighborhoods throughout the year.

Financial Services

The Financial Services department includes Accounting, Budgeting, Procurement and Information

Technology. The Accounting team maintains a system of internal administrative and accounting

controls. This includes the evaluation of property/program management as well as departmental

activities that affect the financial operations of the Authority. This department coordinated and

executes all financial documents, annual budget and monthly financial reports.

Procurement is responsible for coordinating the solicitation of all Requests for Quotes (RFQ), Requests

for Proposals (RFP), Invitations for Bid (IFB) and finalizing all contractual agreements on behalf of all

departments. All departments are responsible for the procurement of materials and supplies for their

respective areas in accordance with Asset Management.

Information Technology services provides support for all computer systems, applications and phones.

Tasks include providing services to departments that ensure technological systems are reliable, stable

and cost efficient.


49


PROGRAM SUMMARY Development

The Development department is responsible for planning and organizing all development,

construction and modernization projects for the Authority. Tasks include budgeting for HUD funds

under the Capital Fund and Replacement Housing Factor programs. This department also manages the

affairs for the development instrumentality of the Authority, Development Ventures Inc, tasked with

spearheading all development/redevelopment projects.

The Authority also provides Technical Services – Plumbing and Locksmith Services on a Fee-For-

Services basis to all properties. This team is included in the Development department and charges

comparable rates

Asset Management

This department oversees property management and maintenance services for managed developments.

Tasks include the establishment of the Admissions and Continued Occupancy Policy (ACOP),

governing HUD-Aided Public Housing, Policies and Procedures for property management including

lease agreements and application processing.

Resident Services

The Resident Services department offers, in partnership with other agencies, support services to

provide opportunities for all residents in properties or programs managed by the Authority. This

department implements several programs and services to assist residents. All resident service grants,

including but not limited to Family Self Sufficiency, Continuum of Care etc., are administered by this

department. In addition, the Resident Services department maintains the activities of Learning

Assistance, Inc. – a component unit of the Authority.

Strategic Management

The Strategic Management department is made up of the Compliance team. The team ensures that the

property and program management business areas of the Authority maintain compliance with federal,

state and local regulations and requirements. Typical duties include the development of policies and

procedures for property/program management, ensuring employee awareness of guidelines and

regulations, developing compliance-related reporting and preparing risk assessment analysis to

expand visibility.

In an effort to promote proper safeguarding of resources against waste and inefficiency, encourage

accuracy and reliability of operational data, each COCC department manages an individual budget.

However, it is important to note that the COCC departments are not a separate asset managed entity

on their own. Unless otherwise required by a managed grant, all resources of the COCC are shared

amongst the departments depending on need. The COCC budget is presented on a consolidated basis

even though each departmental head oversees their own administrative budget.


50



REVENUES:

1. Property/program management fees charged to the other programs. AMPs are charged based

on standard rates set by HUD. For FY2019, Property Management fees are budgeted at $56.89,

the current approved HUD reasonable fee. The bookkeeping fee and asset management fees

remain the same at $7.50 per unit and $10.00 per unit respectively. Property Management and

Bookkeeping fees are charged per occupied unit. Asset management fees are charged per ACC

unit and subject to excess cash as calculated from the previous year Financial Data Schedule

(FDS).

2. The HCV program is charged a program management fee which is the higher of $12.00 per

voucher leased per month or 20% of the Administrative Fee earned. In addition, a bookkeeping

fee of $7.50 per voucher leased per month is charged to HCV.

3. Affordable Housing properties will be charged management fees according to their individual

management agreements.

4.

5. Technical Services fees are charged for service performed at the properties. The rates for 2019

are as follows: Licensed Plumber - $98.00 per hour | Certified Locksmith $80.00. The revenue

for this line item is budgeted according to the expenses budgeted for each property.

6. The COCC also charges a program management fee of 10% of Capital Funds awarded. For 2019,

the budgeted amount is $389,150.

7. As per the Resource Sharing Agreement, DVI will pay the COCC a budgeted total of $247,561 in

2019.

8. The Resident Services department will administer the Family Self Sufficiency program. The

budgeted amount expected is $144,000.


51



EXPENSES:

1. Administrative salaries are budgeted with an increase of 1.5%. All vacant positions to be filled

are budgeted at the highest level in the salary range of that position.

2. The Authority will convert to Microsoft 365 and migrate email hosting services to the Microsoft

platform in 2019

3. In previous years’, Employee Benefit Contributions were budgeted for under General Expenses.

Effective 2018, these expenses will be budgeted for under the specific category where salaries

are budgeted.

4. Staff in Resident Services (including the Director), Compliance and Safety/Security are all

budgeted under the COCC but are front-lined to the properties.

The below shows the schedule of revenues for the COCC in 2019.

Central Office Cost Center - FY2019 Schedule of Revenues

Low Income Public Housing 2,155,687.42

Capital Fund Program 389,150.00

Preiss Steele Place 79,531.88

Edgemont Elms 60,075.79

Goley Pointe 27,200.33

Damar Court 97,800.77

Morreene Road 137,540.81

Housing Choice Voucher Program 632,678.00

Development Ventures, Inc 247,561.00

FSS Program 144,000.00

Other Government Grants 122,661.00

Frontline (Eliminations) (1,016,394.00)

Total Revenue 3,077,493.00


52


FY2019 BUDGET

COCC

FY2019 Budget

2018

Budget

2018

Jan - Jun

2018

Estimated

2019

Recommended

Annual

Change

% Annual

Change

REVENUES

Total Tenant Revenue - - - - -

Total Fee Revenue 3,461,517 1,367,697 2,879,373 3,971,226 1,091,853

Total Other Revenue 36,767 37,802 - 122,661 122,661

TOTAL REVENUE 3,498,284 1,405,498 2,879,373 4,093,887 1,214,514 42%

EXPENSES

Total Operating - Administrative 2,688,902 1,230,974 2,461,948 2,579,426 119,998 5%


Total Utilities 29,669 35,062 70,125 72,228 2,104 3%


Total Protective Services - 1,436 2,873 2,959 86 3%


Total Other General Expenses - 552 1,104 - (1,104) -100%


TOTAL OPERATING EXPENSES 3,730,983 1,653,367 3,306,734 4,018,907 658,613 22%

EXCESS of OPERATING REVENUE over OPERATING EXPENSES (232,699) (247,869) (427,361) 74,980 502,341 -118%

TOTAL EXPENSES 3,730,983 1,653,367 3,306,734 4,018,907 658,613

EXCESS (DEFICIENCY) of TOTAL REVENUE over(under) TOTAL (232,699) (247,869) (427,361) 74,980 502,341

(To)/From Unrestricted Net Position 232,699 247,869 427,361 (74,980) (502,341)


Recommended


53

HOUSING CHOICE VOUCHER

PROGRAM SUMMARY

The Authority operates a Housing Choice Voucher Program (HCV) pursuant to U.S. Department of

Housing and Urban Development (HUD) requirements. The HCV Program is structured to provide a

housing voucher to program participants. Participants then locate housing in the local rental market.

When an acceptable unit is located, both the program participant and the landlord are required to enter

into a HAP contract with the Authority. Program participants pay approximately 30% of the rent and

the voucher is used to pay the balance up to a predetermined market rate established by HUD on an

annual basis.

In general, tenant-based vouchers are issued to the participants. However, some vouchers are “project-

based” and are allocated to specific properties, so a participant has to be able to qualify to live in that

particular property.

The Authority also administers Veterans’ Administration Supportive Housing vouchers (VASH)

targeted at providing assistance to homeless veterans.

HCV Administration provides support for a maximum of 2,815 vouchers. However, it is important to

note that HUD requires housing authorities manage the program within their allotted budget, not the

allotted maximum vouchers. This means that the program may have a utilization rate that falls below

the allotted vouchers but a 100% budget utilization. Primary services include the acceptance and

processing of applications for vouchers; inspections of units on at least an annual basis, and

recertification of program participant eligibility on an annual basis.

Housing Assistance Program (HAP) funds are “pass-through” in nature. Any surplus that occurs is

retained for future needs, but is strictly limited to being used only for housing assistance payments.

Due to the pass-through nature of the funds, no personnel or other expenses are allocated to HCV

Program HAP.

In addition to the traditional HCV program, the HCV department also administers a small number

Tenant Based Rental Assistance vouchers through two grant-funded programs, Shelter Plus Care (S+C)

and Housing Opportunities for Persons with HIV/AIDS (HOPWA). Both programs reimburse the costs

of Housing Assistance Payments expensed on a monthly basis and include a small fee for

administering the programs.

The HCVP program is considered a separately asset managed program and pays the COCC program

management fees.


54


PROGRAM SUMMARY

Staffing for the HCVP program is comprised of the positions shown in the organizational chart below


55



The budget for the HCV Program is divided into two parts – Administration and Housing Assistance

Payments (HAP). The following information provides additional detail regarding the projections of

revenues and expenses for the HCV Program.

REVENUES:

1. Housing Assistance Payment funds to be received have been budgeted at $21,312,390 using an

average HAP amount of $655 and an average unit month leased number of 2,715 vouchers by

the end of 2019

2. Administrative Fees earned are budgeted at $1,900,867 which a 6% increase from the amount

expected to be received in 2018 of $1,789,528 due to projected increases in leasing

3. Other revenues include administrative fees earned from managing the two TBRA programs,

Shelter Plus Care and HOPWA.

EXPENSES:

1. Housing Assistance Payment expenses are budgeted at the same level as expected revenues of

$21,312,390

2. Program management fees due to the COCC for FY 2019 are calculated as 20% of the projected

administrative fees. Bookkeeping fees of $7.50 per unit month leased are also charged.

3. The most significant change in expenses for the HCV program beginning in 2019 the program

management and bookkeeping fees. In the past, the maximum allowable fees have not been

charged to the program.

4. All other expenses are directly incurred by the HCV department/program.


56


FY2019 BUDGET – ADMINISTRATION

HCVP - Admin

FY2019 Budget

2018

Budget

2018

Jan - Jun

2018

Estimated

2019

Recommended

Annual

Change

% Annual

Change

REVENUES


Total Fee Revenue 1,665,341 904,282 1,808,564 1,914,563 105,999 6%

Total Other Revenue 9,290 2,086 4,172 4,172 (0) 0%

TOTAL REVENUE 1,674,631 906,368 1,812,737 1,918,735 105,999 6%

EXPENSES

Other - Meals/Entertainment - -

Total Operating - Administrative 1,633,232 690,838 1,381,676 1,922,323 540,647 39%


Total Utilities - - - - -








TOTAL EXPENSES 1,759,643 750,628 1,501,256 2,107,444 606,194 40%





57


FY2019 BUDGET – HAP

HCVP - HAP

FY2019 Budget

2018

Budget

2018

Jan - Jun

2018

Estimated

2019

Recommended

Annual

Change

% Annual

Change

REVENUES


Total Fee Revenue 19,753,628 9,299,445 19,510,312 21,312,390 1,802,078 9%


TOTAL REVENUE 19,753,628 9,299,445 19,510,312 21,312,390 1,802,078 9%

EXPENSES

Total Operating - Administrative - - - - -



Total Maintenance - - - - -


Total Insurance Premiums - - - - -

Total Other General Expenses - - - - -


TOTAL OPERATING EXPENSES - - - - -

EXCESS of OPERATING REVENUE over OPERATING EXPENSES 19,753,628 9,299,445 19,510,312 21,312,390 1,802,078 9%

TOTAL EXPENSES 19,753,628 9,755,156 19,510,312 21,312,390 1,802,078 9%

EXCESS (DEFICIENCY) of TOTAL REVENUE over(under) TOTAL - (455,711) - - -

(To)/From Unrestricted Net Position - 455,711 - - -



58

DEVELOPMENT VENTURES, INC

PROGRAM SUMMARY

Development Ventures Incorporated (DVI) is an instrumentality of the Durham Housing Authority.

DVI exists to develop affordable housing options to low-income residents of Durham on behalf of

DHA. DVI is primarily involved in the development and ownership of new housing communities.

As a result of several ongoing projects, DVI will continue to evolve in FY2019. The entity owns two

properties – Lincoln and Fayette. To date, DVI has completed the development/redevelopment of the

following properties: Preiss Steele Place, Edgemont Elms, Goley Pointe and 1010 Worth Street.

By the end of 2019, it is expected that Morreene Road and Damar Court redevelopments will be

complete.

It is important to note that DVI has no employees and is therefore operating under a Resource Sharing

Agreement with DHA. The terms of the agreement include a yearly fee to the COCC that is equivalent

to the following:

18% of the Chief Executive Officers’ salary and benefits, 80% of the Director of Developments’ salary

and benefits, 10% of the Capital Fund Program Administrators’ salary and benefits and 100% of the

Real Estate Strategies Specialists’ salary and benefits.

DVI is also responsible for expenses charged to Lincoln and Fayette Place. The main source of revenue

for DVI is developer fees earned at closing or deferred based on the development transactions. All

developer fees will be booked as revenues or receivables according to the schedules attached to the

development transactions.


59

DEVELOPMENT VENTURES, INC

FY 2019 BUDGET


FY2019 Budget

2018

Budget

2018

Jan - Jun

2018

Estimated

2019

Recommended

Annual

Change

% Annual

Change

REVENUES



Total Other Revenue - 191 382 1,047,685 1,047,303

TOTAL REVENUE - 191 382 1,047,685 1,047,303 274221%

EXPENSES

Total Operating - Administrative 268,898 132,007 266,614 254,811 (11,803) -4%


Total Utilities 4,226 2,633 5,266 5,424 158 3%

Total Maintenance 6,180 1,023 2,045 2,107 61 3%



Total Other General Expenses - - - - -

Total Interest Expense and Amortization Cost - 6,338 12,676 - (12,676) -100%

TOTAL OPERATING EXPENSES 289,181 147,376 297,352 273,415 (23,937) -8%

EXCESS of OPERATING REVENUE over OPERATING EXPENSES (289,181) (147,185) (296,971) 774,270 1,071,240 -361%

TOTAL EXPENSES 289,181 147,376 297,352 273,415 (23,937)

EXCESS (DEFICIENCY) of TOTAL REVENUE over(under) TOTAL (289,181) (147,185) (296,971) 774,270 1,071,240

(To)/From Unrestricted Net Position 289,181 147,185 296,971 (774,270) (1,071,240)

Change in Net Position -$ -$ -$ -$ -$

Recommended


60

LEARNING ASSISTANCE, INC.

PROGRAM SUMMARY AND BUDGET

Learning Assistance, Inc., is a component unit of the Authority, incorporated as a North Carolina non-

profit in 1987. The mission of the organization is to award scholarships to public housing youth and

young adult residents. The primary source of income for Learning Assistance, Inc., is the proceeds

from an agency endowment established in 1994 with the Greater Triangle Community Foundation.

Other income recognized is usually the result of a donations made to the organization.

The program is managed by the Resident Services department located in the Central Office Cost

Center.


FY2019 Budget

2018

Budget

2018

Jan - Jun

2018

Estimated

2019

Recommended

Annual

Change

% Annual

Change

REVENUES



Total Other Revenue 18,020 22,620 17,592 18,120 528

TOTAL REVENUE 18,020 22,620 17,592 18,120 528 3%

EXPENSES

Total Operating - Administrative - 4,377 5,154 5,091 (63) -1%



Total Maintenance - - - - -


Total Insurance Premiums - - - - -

Total Other General Expenses 12,000 400 800 10,000 9,200 1150%




TOTAL EXPENSES 12,000 4,777 5,954 15,091 9,137



Change in Net Position -$ -$ -$ -$ -$

Recommended


61

PAGE INTENTIONALLY LEFT BLANK


62

WE ARE CREATIVE

WE PRACTICE TEAMWORK

WE SATISFY CUSTOMERS

WE ARE ENTHUSIASTIC

WE TAKE RESPONSIBILITY

WE ARE ETHICAL

WE ARE PRODUCTIVE

2019 annual operating budget...2019 annual operating budget the housing authority of the city of...

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