2019 operating budget final - hacepbudget presents the operating budget for hacep’s programs,...

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ANNUAL OPERATING BUDGET

HOUSING AUTHORITY OF THE CITY OF EL PASO

CALENDAR YEAR 2019

Francisco Ortega Chairman

Eileen Karlsruher Vice Chairman

Anna Louise Valdez Perez Commissioner

Robbert Anderson Commissioner

Yadira Beltran Resident Commissioner

Gerald Cichon

Chief Executive Officer/Secretary

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THIS PAGE IS LEFT BLANK INTENTIONALLY

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TABLE OF CONTENTS Introduction ............................................................................................................ 7

Budget Summary ....................................................................................................... 8

Board Of Commissioners ........................................................................................... 10

Our Chief Executive Officer ....................................................................................... 11

Acknowledgment .................................................................................................... 12

Awards ................................................................................................................ 14

Distinguished Budget Presentation Award For Fy17 Budget .................................................. 15

HACEP Group Of Companies ....................................................................................... 16

Strategic Goals And Strategies .................................................................................... 17

Transforming Public Housing: Rad – Strategic Goal ............................................................ 18

HUD Performance Indicators - Strategic Goal .................................................................. 28

Community And Resident Services – Strategic Goals .......................................................... 31

Organization Charts ................................................................................................. 34

The City Of El Paso Ethnicity Composition ...................................................................... 45

Section 8 Resident Demographics ................................................................................. 46

Public Housing Resident Demographics .......................................................................... 49

Economic Conditions And Outlook ................................................................................ 51

Where The Money Comes From ................................................................................. 51

Where The Money Goes .......................................................................................... 52

HACEP Management Fee Five-Year Trend ....................................................................... 53

2019 Budget – Programs/Activities/Properties Managed By HACEP ......................................... 56

Federal Programs ..................................................................................................... 58

Low Income Public Housing ....................................................................................... 58

HCV (Section 8 Housing Choice Voucher) ....................................................................... 58

Siesta Gardens ........................................................................................................ 59

Section 8 New Construction ........................................................................................ 59

Tio Cooper ........................................................................................................... 59

COCC (Central Office Cost Center) ............................................................................... 60

Departments ........................................................................................................ 60

Internal Services .................................................................................................... 60

EP Home (Business Activities) ....................................................................................... 60

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Business Activities ................................................................................................... 61

PHRC (Paisano Housing Redevelopment Corp) .................................................................. 61

APFC (Alamito Public Facilities Corporation) .................................................................... 61

Blended Component Units (Business Activities) ................................................................... 61

AHV (Affordable Housing Ventures) .............................................................................. 61

AHA (Affordable Housing Acquisition) ............................................................................ 61

HAC (Housing Acquisition Corporation) ......................................................................... 62

RAD ................................................................................................................. 62

Other ............................................................................................................... 62

2019 Budget – 2018 Budget, Actuals In Comparison To 2019 Budget ........................................ 63

2019 Budget – RAD And Impact On 2019 Budget ................................................................ 64

CHAPs And Conversion Status .................................................................................... 65

2019 Budget – Hacep Budget Assumptions: Corporate Allocations And Assignment Of Costs ........... 65

Compensation ........................................................................................................ 66

Salaries .............................................................................................................. 66

Benefits .............................................................................................................. 66

HACEP Cost Allocations ............................................................................................ 66

Insurance ............................................................................................................ 67

Audit Fees ........................................................................................................... 67

Capital Funds Programs ............................................................................................ 68

Assignment of Cost .................................................................................................. 68

Operating Subsidy Revenues ......................................................................................... 70

Low Rent Public Housing .......................................................................................... 70

Section 8 New Construction ...................................................................................... 70

Housing Choice Vouchers ......................................................................................... 70

Housing Choice Voucher Administrative Fees .................................................................... 70

Management Fees ..................................................................................................... 71

Low Rent Public Housing .......................................................................................... 71

RAD Converted Properties ........................................................................................ 71

LITCH Only Properties ............................................................................................ 72

Section 8 New Construction ...................................................................................... 72

Housing Choice Vouchers ......................................................................................... 72

Non-Accs ........................................................................................................... 72

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Siesta Gardens ...................................................................................................... 73

Properties Not Earning Management Fees ........................................................................ 73

EP Home ............................................................................................................ 73

Financial Management Policy ...................................................................................... 74

Long Term Debt...................................................................................................... 78

Budget Process ....................................................................................................... 82

Board Resolutions ................................................................................................... 85

Budgets ............................................................................................................... 90

The Housing Authority Of The City Of El Paso Tx Combined Statement Of Revenues, Expenses And Reserves CY 2019 Budget ........................................................................................ 90

All Programs Combined Statement Of Revenues, Expenses And Reserves CY 2019 Budget ........... 91

Housing Choice Voucher (Hcv) Program Combined Statement Of Revenues, Expenses And Reserves CY 2019 Budget ................................................................................................... 92

Public Housing Projects Combined Statement Of Revenues, Expenses And Reserves CY 2019 Budget ...................................................................................................................... 93

Internal Service Funds Combined Statement Of Revenues, Expenses And Reserves CY 2019 Budget 94

Section 8 New Construction Combined Statement Of Revenues, Expenses And Reserves CY 2019 Budget .............................................................................................................. 95

Central Office Cost Centers (Cocc) Combined Statement Of Revenues, Expenses And Reserves CY 2019 Budget ....................................................................................................... 96

Tio Cooper Combined Statement Of Revenues, Expenses And Reserves ................................. 97

CY 2019 Budget ................................................................................................... 97

Siesta Gardens Combined Statement Of Revenues, Expenses And Reserves CY 2019 Budget ........ 98

Non-Dwelling Properties Combined Statement Of Revenues, Expenses And Reserves CY 2019 Budget ...................................................................................................................... 99

Business Activities Combined Statement Of Revenues, Expenses And Reserves CY 2019 Budget ... 100

Ep Home Combined Statement Of Revenues, Expenses And Reserves CY 2019 Budget .............. 101

Blended Component Units Combined Statement Of Revenues, Expenses And Reserves CY 2019 Budget ............................................................................................................. 102

CY 2019 – Revenue Summary ..................................................................................... 103

HACEP Historical Revenue ........................................................................................ 103

Operating Expense Budget By Major Programs And Funds ................................................... 104

HACEP Historical Operating Expense Budget Comparison 2015-2019 ...................................... 105

Public Housing Properties Amp Detail Budgets ................................................................ 106

Glossary .............................................................................................................. 168

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INTRODUCTION This document is the annual budget of the Housing Authority of the City of El Paso (HACEP) for adoption by the Board of Commissioners for the calendar year January 1 - December 31, 2019. The budget presents the operating budget for HACEP’s programs, departments, communities and entities that are reportable under a government umbrella. This budget does not include entities, properties or programs that are considered discretely presented component units of HACEP by virtue of the limitation on the HACEP ownership and the limitation of the HACEP control over the entity, property or program. Examples of a discretely presented component units are affordable housing properties that have changed majority ownership from HACEP to a tax credit investing entity. These discretely presented component units that are not presented in this budget have separate non-governmental budget processes. Although the discretely presented component units are not presented in the budget, to the extent that HACEP is expected to earn revenues from these units is included in this budget.

HACEP owns many properties and is currently in the process of completing what is to date the largest RAD (Rental Assistance Demonstration) transformation of affordable housing from the public housing program to the multi-family program, providing a more stable operating funding platform with the ability to generate capital and equity funds for capital improvements and new construction that is not available in the public housing program. As a HACEP public housing property moves into the RAD program, a new entity becomes the owner of that property. If HACEP is part of the development team for the project, HACEP earns a developer fee. EP Home (HACEP 3rd Party Property Management Company) in many cases is the property manager of these RAD properties (discretely presented component units) and the cost to provide this service along with the fees earned is presented in the budget.

The budget is intended to ensure HACEP remains financially sound while providing services in keeping its agency’s mission. Over the past few years there has been a continued reduction in federal funding. HACEP has overcome this funding by cost reduction programs through improved efficiency and by generating new sources of revenue. CY 2019 budget projects revenue of $72,391,042 and expense of $60,980,952 creating a surplus of $11,410,090 much of this surplus to be earned through development fee revenues from various RAD affordable housing projects that are either currently under construction or have recently been constructed or had major renovation. Much of the surplus is planned to be invested in other affordable housing projects.

In addition to operating federal programs, HACEP also provides alternative housing to moderate-to-low income residents of El Paso through its affiliates. HACEP also offers various programs for the children, youth, adults, and seniors of our housing communities that are designed to improve their quality of life.

HACEP CY2019 Budget is prepared and presented in compliance with HUD regulations for financial reporting, and as such, the HACEP COMBINED BUDGET is broken down into the various HUD funding programs or categories and revenue/expense accounting groups.

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HACEP’s accounting system maintains records to conform with Generally Accepted Accounting Principles (GAAP) as applicable to Units of Local Government. An audit under OMB Circular A133 is required to be conducted annually. HACEP utilizes accrual accounting method.

BUDGET SUMMARY

The Housing Authority of the City of El Paso, Texas was established in 1938 to provide low-income residents of the City of El Paso with access to low-cost housing. The 1937 National Housing Act created housing authorities to clear slum and blight and to provide safe and sanitary housing for persons of low income.

FY2019 Budget

FY2018 Budget

Variance FY 19 <FY18 Budget>

Percent %

OPERATING INCOME & SUBSIDYDwelling Rental 11,648,749 11,250,833 397,916 3%Interest on Investments- Operations 648,596 3,469,612 (2,821,016) -435%Developer Fee 2,852,862 5,503,703 (2,650,841) -93%Section 8 Income 34,586,018 33,369,061 1,216,957 4%Other Operating Receipts 10,042,511 10,475,861 (433,350) -4%Excess Utilities - - - -Nondwelling Rentals - - - 0%HUD Subsidy 5,975,490 12,868,253 (6,892,763) -115%CFP Grant Transfers - 611,448 (611,448) -HAP Subsidy - - - -Management Fees 5,113,175 5,810,423 (697,248) -14%Fee for Service- Other Programs 937,680 750,053 187,627 20%Administrative Fee Income 470,247 529,440 (59,193) -13%Other Governmental Grants 115,714 128,227 (12,513) -11%

GRAND TOTAL OPERATING INCOME & SUBSIDY 72,391,042 84,766,914 (12,375,872) -17%

OPERATING EXPENDITURESAdministrative Expense 15,509,876 18,073,989 2,564,113 17%Management Fee Expense 3,995,558 4,527,953 532,395 13%Tenant Services Expense 590,187 1,191,621 601,434 102%Utilities Expense 2,002,358 3,744,598 1,742,240 87%Maintenance 2,959,858 4,087,245 1,127,387 38%Total Protective Service Expense 517,496 410,945 (106,551) -21%Total - Other General Expenses 35,405,618 38,774,255 3,368,637 10%Less: Interest Expense - - - - Principal Payment on Debt - - - -Capital Investments - - - -Capital Investments - - - -TOTAL OPERATING EXPENSES 60,980,951 70,810,606 (9,829,655) -16%

NET INCOME (Deficit) from Operations 11,410,091 13,956,309 (2,546,218) -22%

Checks and Balances

2019 BUDGET SUMMARY

COMPARATIVE SUMMARY OF TOTAL 2018 and 2019 REVENUES AND EXPENDITURES

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HACEP was set up by state statute as a unit of local government and is not connected with the City or County of El Paso, Texas. Neither the City nor the County of El Paso is financially responsible for the operations of HACEP, nor are they responsible to fund deficits, receive surpluses, or guarantee HACEP’s debts. HACEP is the largest Public Housing Authority (PHA) in the State of Texas and the 14th largest in the United States. HACEP operates many programs and types of housing - Public Housing, Housing Choice Voucher (Section 8), Section 8 New Construction, Migrant Worker Program, Tax Credit and Market Rate Properties.

The governing board of the Authority’s Board of Commissioners is comprised of five members and appointed by the mayor of the City of El Paso, Texas. The Commissioners can hold two three-year terms. The Board is the policy-making body of HACEP. The Board of Commissioners of HACEP is also the Commissioners for all HACEP's affiliates and subsidiaries. The Board appoints the Chief Executive Officer to administer the operations of HACEP. The primary source of funding for HACEP is from the U.S. Department of Housing and Urban Development (HUD).

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BOARD OF COMMISSIONERS

Eileen Karlsruher

Vice-Chairman

Francisco Ortega

Chairman

Yadira Beltran

Resident Commissioner

Anna Louise Valdez Perez

Commissioner

Robbert Anderson

Commissioner

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OUR CHIEF EXECUTIVE OFFICER The mission of HACEP is to improve the quality of life for economically challenged families by providing quality, affordable, subsidized, transitional housing, and opportunities to achieve self-sufficiency. As Chief Executive Officer of the Housing Authority of the City of El Paso, Texas -- one of the nation's largest and highest-performing providers of affordable housing programs for low-income families, Mr. Cichon manages a $70+ million budget that supports 274 employees, 5,709 Housing Choice Vouchers, 492 Section 8 New Construction units, 844 Public Housing units, 421 Business Activity units, 842 Blended Component units, and 6,341 Tax Credit/PBRA units that collectively house some 40,000 El Pasoans – or 6% of the El Paso community.

Soon after his appointment in January 2008, Mr. Cichon oversaw the successful completion of the $58 million HOPE VI Alamito Transformation Project, revitalizing three different communities – Alamito Terrace, Alamito Gardens and Alamito Place – a total of 440 units. Mr. Cichon went on to secure more than $21 million from the American Recovery and Reinvestment Act (ARRA) –

including an $8.3 million competitive grant to build a NetZero, fossil-fuel free, LEED Platinum affordable housing community for the elderly. Now known as the Paisano Green Community, it is 30 times more efficient than Platinum LEED and stands as a one-of-a-kind in affordable housing for the United States. Only two years later in 2014 did Mr. Cichon embark HACEP on a $1.4 billion endeavor to revitalize 100% of El Paso’s affordable housing stock at zero cost to the local tax payer, all by 2020.

In May 2009, he executed a successful restructuring of the public housing department to the Asset Management Program to improve the allocation of management resources and customer service to its 20,000 residents, while maintaining the department's status as a high performer by the U.S. Department of Housing and Urban Development (HUD). He then implemented fraud and compliance units to the Public Housing and Housing Choice Voucher programs to seek and prosecute unlawful practices among residents who understate reported income and to ensure HACEP meets all federally-mandated rules and regulations within its housing programs. He also distributed additional housing choice vouchers to families in need, while other housing authorities had to cut participants due to budgetary shortfalls, improved HUD’s scoring of the HCV Program from a standard to a high performer on the SEMAP assessment, and implemented a Section 504 compliance department to ensure HACEP provides adequate accommodations for persons with disabilities. Meanwhile, Mr.

Gerald Cichon Chief Executive Officer

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Cichon successfully re-energized a stalled $20 million HOPE VI revitalization project to transform the Alamito complex in Downtown El Paso into a vibrant $58 million mixed-income community.

Mr. Cichon has reimagined HACEP as the safest housing authority in the country (and two-times safer than the safest city in the U.S.), a high-performer agency for seven consecutive years, and continues to develop a sustainable business model for housing in the U.S.

Mr. Cichon holds an MBA from Northwestern University’s Kellogg School of Management, a Juris Doctorate from St. Mary’s University School of Law, and a Bachelor of Science from the University of Colorado, Boulder, CO. His professional certifications include a licensed Texas real estate agent, a certified public housing manager, and a certified asset manager.

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ACKNOWLEDGMENT Considerable effort has gone into the development of this budget and has involved many individuals within HACEP. Our sincere appreciation goes to each and every employee who contributed to the development of this document. We would like to especially acknowledge the following staff:

Mr. Satish Bhaskar, Chief Operating Officer

Ms. Galaxie Rodriguez, Budgeting & Strategic Financial Planning

Ms. Sandra Medina, Financial Analyst

We appreciate the leadership and support of the Board of Commissioners in the preparation of this budget and a special appreciation for the Finance Committee for their guidance and counsel provided to the staff.

Sincerely,

Gerald Cichon, Satish Bhaskar,

Chief Executive Officer Chief Operating Officer

AWARDS

GFOA Distinguished Budget Presentation Award Program

FY 2017, FY 2016, FY 2015, FY 2014

Amistad’s Humanitarian of the Year 2017 Award – Gerald Cichon

Amistad Humanitarian Leader of the Year 2017 Award – HACEP

2017 Leadership of Excellence Award (American Economic

Institute, AEI) – HACEP

Bond Deal of the Year 2016

Texas NAHRO 2016 Best Annual Report

Texas NAHRO 2016 Best Newsletter

Southwest NAHRO 2016 Best Newsletter

Southwest NAHRO 2016 Special Achievement by an Employee

Southwest NAHRO 2016 Best Publication by an Agency

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DISTINGUISHED BUDGET PRESENTATION AWARD FOR FY17 BUDGET

Government Finance Officers Association of the United States and Canada (GFOA) presented a Distinguished Budget Presentation Award to Housing Authority of the City of El Paso, Texas, for its Annual Budget for the fiscal year beginning July 1, 2017. In order to receive this award, a governmental unit must publish a budget document that meets program criteria as a policy document, as a financial plan, as an operations guide, and as a communications device.

This award is valid for a period of one year only. We believe our current budget continues to conform to program requirements, and we are submitting it to GFOA to determine its eligibility for another award.

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HACEP GROUP OF COMPANIES

Affordable Housing Ventures (AHV) A Texas non-profit Corp established for

the purpose of acquiring 1078 Tax Credit Units in various properties

Affordable Housing Enterprises (AHE) A Texas non-profit Corp established as

General Contractor for development activities

Affordable Housing Acquisition (AHA) A Texas non-profit Corp established for

the purpose of acquiring 369 affordable and market rate units (Villa Alegre)

Housing Acquisition Corporation (HAC) A Texas for profit Corp for property

management and owns partnership interests in 5 Tax Credit properties

Paisano Housing Redevelopment Corporation (PHRC) A 501c3PFC established

as a development company for development and redevelopment of properties

Alamito Public Facilities Corporation (APFC) A PFC (Public Facilities Corp)

established to issue bonds

EP Housing Operation & Management Enterprises (EP HOME) A PFC to

consolidate property management post-RAD conversions

Asset Consolidation & Management Enterprises (ACME) holds assets

EP RAD-2 A PFC established to own 368 units in RAD-2 properties

Various LTDs - Texas private business organizations with HACEP as the owner.

The "limited" structure separates liabilities from the business owners and the

business partnerships.

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STRATEGIC GOALS AND STRATEGIES

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HACEP major revenue sources are still federal subsidies, in particular HAP Subsidies managed through the Section 8 program and public housing subsidies. However, with the implementation of the new property management model – EP Home, Management Fee income is a growing revenue source with the potential for further growth with property management opportunities for non-HACEP properties.

RAD continues into 2019. Several of the properties already converted are to be leased up in 2019 and properties converted in 2018 will enter the construction phase.

In 2019, we continue to downsize staffing levels where appropriate, provide training and technical resources to current staff and hire experienced individuals to enhance the capabilities of the organization to produce efficiencies to generate additional non-government revenue, reduce costs or provide enhanced opportunities for resident self-sufficiency.

HACEP will continue a robust communication strategy, networking efforts, legislative initiatives and outreach to further the goals of El Paso regarding affordable housing programs.

TRANSFORMING PUBLIC HOUSING: RAD – STRATEGIC GOAL

HACEP embarked on a bold move to completely change the face of public housing for the city of El Paso in a way that would ensure the sustainability and durability of this assistance for the families we serve today and for those who may need it in the generations to come.

TAYS SOUTH GROUNDBREAKING

HACEP broke ground on Tays South that will fully reconstruct over 80 units, some of which were completely uninhabitable due to infrastructure issues, to become brand new living spaces in South Central El Paso.

On April 19, 2017, HACEP hosted a ribbon cutting ceremony for the newly reconstructed South Tays Community in south central El Paso, a 198-unit multifamily affordable housing community which marked the agency’s second nine-percent development to be complete. The improved development offered 91 additional homes to families in need, and was the largest redevelopment effort for the neighborhood in the last 50 years.

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TAYS SOUTH GROUND BREAKING

TAYS SOUTH DURING CONSTRUCTION

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TAYS SOUTH DEVELOPMENT TRANSFORMATION – BEFORE (1941)

TAYS SOUTH DEVELOPMENT TRANSFORMATION – AFTER (2016)

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TAYS SOUTH RIBBON CUTTING

Top: South Tays Community Ribbon Cutting Ceremony – CEO Gerald Cichon

Left: Previous Board Chairman Burt Blacksher

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Other RAD Properties

#1 Morehead Community – 62 Units

#2 Ochoa Community – 70 Units

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RAD PROPERTIES CONTINUED

#3 Krupp Community – 96 Units

#4 Baines Community – 58 Units

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#5 Truman Community – 90 Units

#6 Anderson Community – 58 Units

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#7 Woodrow Bean Community – 31 Units

#8 Eisenhower Community – 194 Units

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#9 Johnson Community – 126 Units

#10 Baird Community – 55 Units

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#11 Webber Community – 98 Units

#12 Hart Community – 48 Units

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HUD PERFORMANCE INDICATORS - STRATEGIC GOAL HACEP operates two major Federal Housing Programs: Public Housing and Housing Choice Vouchers. The assessment systems used are Public Housing Assessment System (PHAS) for Public Housing and Section Eight Management Assessment System (SEMAP). Additionally, the New Construction Projects received a REAC score for the maintenance of the properties.

PUBLIC HOUSING ASSESSMENT SYSTEM (PHAS)

On September 1, 1998, the US Department of Housing and Urban Development (HUD) established the Public Housing Assessment System (PHAS). PHAS provides a comprehensive and strategic measurement of a PHA’s essential operations. PHAS assess the physical condition of the housing authority’s public housing units, management operations of the public housing, the Housing Authority’s financial condition and Capital funds management. For the fiscal year which ended June 30, 2016, HACEP received a final score of 98, classifying HACEP as a High Performer.

In December of 2013 HUD approved HACEP’s application to convert its entire Public Housing Stock to Rental Assistance Demonstration (RAD). Under this demonstration program, all public housing units will be transferred from Section 9 funding to Section 8 funding. The units that need modernization will be completed over the next five years. The plan is to implement this program in three phases. The first phase commenced construction in April 2015, the second phase was a straight conversion (no new construction or rehabilitation was needed). The third and final phase is converting in smaller groups than the first phase and construction has commenced on some of those groups in November 2016. This conversion under RAD will continue through 2020. With the conversion of the properties through the RAD program, recent PHAS scores have not been published for HACEP

PHAS Performance Level

Based on the overall PHAS score, a PHA falls into one of the three categories:

High Performer: A PHA that scores at least 90% overall score while obtaining at least 60% of the score available under each of the four categories.

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Standard Performer: A PHA that scores between 60% and 90% of overall score.

Troubled Performer: A PHA that obtains a total score of less than 60% of the overall score is designated as a troubled performer and referred to HUD’s Troubled Housing Recovery Center for oversight and remedial action.

PHAS Indicator # 1 Physical Condition

PHAs are required to maintain Public Housing Communities that meet HUD’s Uniform Physical Condition Standards (UPCS). These standards are established to ensure that the communities are maintained to provide a decent, safe and sanitary living condition. The standards address six major areas of housing:

1) Site 2) Building Exterior 3) Building System 4) Common Areas 5) Health 6) Safety

The total value of the physical condition indicator is 40 of the 100 points available under the PHAS. In order to achieve a passing score on the physical Condition Indicator, a PHA must receive a score of at least 60 percent of the 40 available points.

PHAS Indicator # 2 Financial Condition

This indicator measures whether a PHA has sufficient financial resources and managing those recourses efficiently. The three components of this indicator are:

1) Quick Ration: Compares quick assets to current liabilities, including inventory. 2) Months Expendable Net Asset Ratio: Compares the net available unrestricted assets, to

the average monthly operating expenses. The result of this calculation indicates the number of months of operating expenses that can be covered by these resources.

3) Debt Service Coverage: Compare net income available to make debt payments.

The total point for the Financial Indicator is 25 of the 100 points available under PHAS. A PHA must obtain at least 60% of the 3-0 points available under this indicator.

PHAS Indicator # 3 Management Operations

The indicator is measured from the PHA unaudited FDS and audited Financial statements. The three Management Operations indicators are:

1) Occupancy Rate 2) Tenant Accounts Receivable 3) Accounts Payable

The total point for Management Operations indicator is 25 of the 100 overall PHAS score. A PHA must obtain at least 60% of the 30 points available under this indicator.

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PHAS Indicator # 4 Capital Funds Programs

This indicator measures the PHA performance with respect to obligation and expenditures of its Capital funds Program. There are two components to this indicator:

1) Timeliness of fund obligations 2) Occupancy Rate

The total point available for this indicator is 5. A PHA must obtain at least 50% of the 5 points available under this indicator, failing which the PHA will be designated as a Capital Funds Troubled performer.

SESCTION 8 MANAGEMENT ASSESSMENT PROGRAM (SEMAP)

The Section 8 Management Assessment program measures how a PHA administers its Housing Choice Voucher Program. There are 14 indicators of performance that measure the PHA on how it assists eligible families. The 14 key SEMAP indicators are:

Indicator 1: Selection form the Waiting List

Indicator 2: Rent Reasonableness

Indicator 3: Determination of Adjusted Income

Indicator 4: Utility allowance Schedule

Indicator 5: HQS Quality Control Inspections

Indicator 6: HQS Enforcement

Indicator 7: Expanding Housing Opportunities

Indicator 8: Payment Standards

Indicator 9: Annual Reexaminations

Indicator 10: Correct Tenant Rent Calculations

Indicator 11: Pre-Contract HQS Inspections

Indicator 12: Annual HQS Inspections

Indicator 13: Lease-Up

Indicator 14: Family-Self Sufficiency (FSS)

SEMAP Performance Level

SEMAP is used to measure PHA performance and administration of the Housing Choice Voucher Program. SEMAP uses HUD’s national database of tenant information and information from

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audits conducted annually by independent auditors. HUD annually assigns a rating on each of the 14 indicators and an overall performance rating. Based on its overall SEMAP score, a PHA will be classified into one of the following categories:

High Performer: A PHA that achieves a score greater than or equal to 90% of the points available is designated a high performer.

Standard Performer: A PHA that achieves a score of 60 to 89 percent is designated a standard performer.

Troubled Performer: A PHA that achieves a score of less than 60 percent of the total points is designated as a troubled performer.

HACEP SEMAP Score History

For the fiscal year which ended June 30, 2017, HACEP scored 90 percent, classifying HACEP as a Standard Performer. With the change of the Fiscal year, the SEMAP score will be for the period of December 31, 2018 and has not been issued at this time.

REAC SCORE FOR SECTION 8 NEW CONSTRUCTION

HUD’s Multi-Family grades the Authority’s capabilities under the standards based on Real Estate Assessment Center (REAC) inspection. For the fiscal year which ended June 30, 2017, HACEP scored 90 percent, classifying HACEP as a High Performer. With the change of the Fiscal year, the REAC score will be for the period of December 31, 2018 and has not been issued at this time.

COMMUNITY AND RESIDENT SERVICES – STRATEGIC GOALS It has always been the mission of the agency to go beyond providing affordable housing to our community’s most vulnerable families. This unwavering commitment has been captured by a simple mantra, “to give our families a hand up, not a hand out.” As society changes, so do the needs of our families – the services HACEP provides to its residents reflect these changes and go beyond providing public housing assistance. Below is a snapshot of those services, some of which have earned national recognition and merit.

COMMUNITY ENGAGEMENT

Every HACEP community receives guidance on creating their very own resident council. Residents within each community can elect their own president, vice-president, secretary, treasurer and sergeant at arms to represent their community. Presidents from each community together make up the Jurisdiction-Wide Resident Council, or JWRC, and meet monthly to discuss important issues to help improve the quality of life for HACEP residents.

SEMAP Maximum Score FY 2014 FY 2015 FY 2016 FY 2017 FY 2018*

HACEP Score 100 90 90 90 90 90

* Estimated score for 2018

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The dedication of the JWRC and each resident council helps guide the HACEP Team and the types of services needed to provide that “hand up.”

HOMEOWNERSHIP PROGRAM

Part of HACEP’s mission is to help families reach their goals of self-sufficiency. One such path to economic independence and a more stable and healthier life is through homeownership. As the income of families rise while they are living in the affordable housing program, so does their contribution to their rent in affordable housing. The amount of the increase in family rent resulting from an increase in earned income is escrowed, which is to be used toward their future down payment on their own home.

The HCV FSS Homeownership Program, launched in 2003, is a component of the Housing Choice Voucher (HCV) Program where participants use their voucher toward their home mortgage payments. HCV allows for 100 families to participate due to the number of vouchers available. As required by the FSS program, residents set five-year goals and once these goals are achieved, with the guidance and encouragement of their HACEP FSS coordinator, the families graduate to homeownership. In 2018, HACEP’s HCV group celebrated the graduation of 12 families to homeownership.

2018 BACK-TO-SCHOOL-FAIR

In 2018, The Hunt Family Foundation donated $10,000 to HACEP. This generous donation made the 2018 HCV Back-to-School Fair possible. During the July event, more than 300 backpacks were filled with basic school supplies and given to public housing families. For the past eight years, HACEP has impacted the lives of over 3,000 children across its affordable housing programs by providing the tools necessary to help the children find success in the classroom. One of the cornerstones of HACEP’s mission is to provide families with the tools necessary to lead a life of self-sufficiency, and in many ways this annual event is a major thread through the fabric of this initiative.

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Jennifer Han, the IBF World Champion, was on hand to help hand out backpacks and sign autographs for families. The longtime HACEP partner stressed the importance of pursing an education in order to achieve life goals. In addition to receiving backpacks, children and families had access to local health care vendors. More than 20 vendors highlighted public services offered to families. Families were able to receive information on health services, along with health care items and bicycle helmets, provided by The Texas Department of State Health Services.

HACEP RESIDENT HONORED WITH NATIONAL YOUTH AWARD

CITY OF EL PASO NAMED ALL-AMERICA CITY FOR THIRD TIME

HACEP resident Aileen Martinez was honored in June with the All-America City Youth Leadership Award in Denver, Colorado. Martinez took part in El Paso’s delegation competing for the 2018 All-America City Award presentation, hosted by the National Civic League, which recognizes ten cities each year for outstanding civic accomplishments.

The All-America City Youth Leadership Award was created in memory of the National Civic League’s (NCL) former President John Parr who valued the power and impact of youth leadership. The award was bestowed upon Martinez, 14, for her work ethic, leadership and dedication in leading her middle school to three national Chess championship titles, and her ability to overcome adversity and using it to motivate others.

During the event, El Paso was also named a 2018 All-America City - this marks the third time the City of El Paso was honored with the award. It previously won the award in 1969 and 2010. The El Paso delegation’s theme was “City of Champions,” and the delegation was led by longtime HACEP community partner and IBF World Champion Jennifer Han. To win, each community must describe successful efforts to address pressing local challenges. HACEP’s Rental Assistance Demonstration (RAD) initiative was a major component of the presentation, with Martinez’s story playing a pivotal and emotional role in the presentation.

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ORGANIZATION CHARTS Governance Organizational Chart

Board of Commissioners

Chief Executive

Officer (CEO)

Chief Financial Officer (CFO)

Chief Operations

Officer (COO)

Chief RAD Officer

Chief Property Manager

(CPM)

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Executive

CEO

IT Senior Project

Manager

Director HCV

COO

CFO

Executive Secretary (3)

Legal Counsel

Public Information Officer (PIO)

Yardi Project Manager

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Property Management

Goals and objectives: To property manage properties and maintain compliance and maintain statutory compliance for affordable housing. Primarily responsible for PHAs.

CPM

Special Assistant to

CEO

Regional Manager

Property Leads

Property Managers

Resident Services

Equal Opportunity Compliance

Officer

Program Integrity Manager

Program Integrity

Technician (2)

Maintenance (3)

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Human Resources and Procurement

Goals and objectives: To provide back office support for other departments and ensure compliance with federal and state purchasing regulations.

Legal Counsel

Senior Human Resources Manager

Human Resources Specialist

Procurement Manager

Contract Specialist (3)

Buyer (1)

Compliance Coordinator

Print Shop

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Finance

Goals and Objectives: To provide back office accounting and treasury support for the company. Additionally, to oversee the assets of the company in terms of investment liabilities.

CFO

Sr. Finance Manager

HCV Accountant

Financial Analyst (2)

Manager -Shared Services

(6)

Sr. Finance Manager

Accounting Manager

Property Accountants

(8)

Sr. Finance Manager

Financial Analyst

Treasury Accountant

Asset Manager

Asset Management Compliance Specialist

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HCV

Goals and objectives: Oversee the HCV housing programs and ensure compliance with SEMAP scores.

CEO

Director HCV

HCV Admissions Supervisor

HCV Technicians

(6)

Compliance Manager

Home Ownership Coordinator

HQS Inspector

(2)

QA Technician

(2)

Occupancy

Supervisor

HCV Technicians

(8)

Customer Service

Manager

Customer Service Rep (3)

Eligibility Administrative

Clerk

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Development

Goals and objectives: Primarily responsible for the RAD and the earning of developer fee.

COO

Chief RAD Officer

Relocation & Logistics Manager

Relocation Technicians

(3)

Logistics Technicians

(2)

Project Coordinator

RAD

Director of Design

Design Project

Manager (3)

Assistant Director -

Construction

Design Project

Manager (2)

Project Managers

(2)

Financial Analyst (Draws)

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STAFFING SUMMARY

The table below shows a comparison of HACEP’s staffing levels from 2015 through 2019.

The total personnel counts decreased for CY - 2019 compared to prior years due to the following:

HACEP new structure Closing of some departments (Work Orders, Warehouse, Auto Shop and Specialty Crew)

HACEP Executive4%

HACEP Finance/IT/Procurement

9%

HACEP Housing Choice Vouchers

11%

HACEP Public Housing Management…

HACEP Maintenance25%

HACEP …

HACEP RAD3%

HACEP Security10%

HACEP HR1%

EP Home Finance/IT/Procurement

2%

EP Home Maintenance13%

2019

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EMPLOYEE DEMOGRAPHICS

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THE CITY OF EL PASO ETHNICITY COMPOSITION

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SECTION 8 RESIDENT DEMOGRAPHICS

Family Income Number Percent

Under $5,000 715 13%$5,000 - $9,999 1376 25%$10,000 - $14,999 1376 25%$15,000 - $19,999 770 14%$20,000 - $24,999 495 9%$25,000 + 770 14%Total Count 5,502 100%

Average Income 14,662$

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Demographics Count Members by Age Count Bedroom Size Count

White 633 0-5 1,392 0 110

Black 380 6-17 3,923 1 1,486

Hispanic 11390 17-61 5,821 2 1,981

Asians, etc. 253 62+ 1,519 3 1,541

TOTAL 12,655 TOTAL 12,655 4+ 385

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PUBLIC HOUSING RESIDENT DEMOGRAPHICS

Family Income Number Percent

Under $5,000 173 21%$5,000 - $9,999 297 36%$10,000 - $14,999 165 20%$15,000 - $19,999 82 10%$20,000 - $24,999 58 7%$25,000 + 49 6%Total Count 824 100%

Average Income 10,983$

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Demographics Count Members by Age Count Bedroom Size Count

White 0 0-5 49 0 8

Black 8 6-17 264 1 181

Hispanic 808 17-61 371 2 198

Asians, etc. 8 62+ 140 3 321

TOTAL 824 TOTAL 824 4+ 132

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ECONOMIC CONDITIONS AND OUTLOOK WHERE THE MONEY COMES FROM

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WHERE THE MONEY GOES

COCC General Administrative

18%

LRH16%

Section 8 Vouchers

48%Section 8 New Construction

2%

Tio Cooper0%

Siesta Gardens…

Other Activities16%

2018

COCC General Administrative

15%

LRH 6%

Section 8 Vouchers

55%Section 8 New Construction

3%

Tio Cooper 0%

Siesta Gardens

0%Other

Activities 21%

2019

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A continuing resolution is in effect that funds the Federal Budget. The Federal government has approved the increase to the debt ceiling and the debate continues as to the best solution to curtail this problem.

Based on the Federal Budget, HUD continues to prorate funding to PHAs for HCV programs, which are necessitated for the reduction of service levels. The unemployment rate nationally stands at 4.0% and the unemployment rate in El Paso is at 4.0%.

HACEP MANAGEMENT FEE FIVE-YEAR TREND Management Fees FY 2017 FY 2018 FY 2019 FY 2020 FY 2021

Low Rent Housing 1,931,147 1,534,223 507,438 - -

Section 8 HCV 1,323,775 1,363,488 1,335,906 1,362,624 1,389,877

Section 8 NC 275,945 275,945 321,575 328,007 334,567

Siesta Gardens 9,798 9,798 9,422 9,422 9,422

Other Activities 333,384 343,386 577,874 589,431 601,220

Multi-family Low rent 3,164,382 3,043,843 2,938,834 2,997,611 3,057,563

CFP Management Fees 611,448 366,869 - - -

Total 7,649,879 6,937,552 5,691,049

5,287,095

5,392,648

-

1,000,000

2,000,000

3,000,000

4,000,000

5,000,000

6,000,000

7,000,000

8,000,000

FY 2017 FY 2018 FY 2019 FY 2020 FY 2021

MANAGEMENT FEE FIVE-YEAR TREND

Low Rent Housing Section 8 HCV Section 8 NC Seista Gardens

Other Activities Multi-family Low rent CFP Management Fees Total

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HACEP FUNDING

The majority of HACEP’s funding comes from the US Department of Housing and Urban Development (HUD) in the form of Operating Subsidies, Capital Funds Grants, and Housing Assistance for HCV Landlords.

As of this date, HUD has not announced the proration of Public Housing Subsidies for CY 2019. HACEP has assumed that the proration would be 85%. Based on HUDs notice, the HCV program will be funded at 76% toward administrative fees and 98% for HCV Housing Assistance Payments. HUD has also decided to hold back any Net Restricted Assets (NRA) from HACEP at the HUD level.

As HACEP is converting to Rental Assistance Demonstration (RAD), a separate budget has been included to assist in the transition and implementation of RAD.

For decades now, HUD has been underfunding PHA, in both operating and CFP for Public Housing and Administrative Fees and HAP assistance for Landlords. To counter these cuts, HACEP has taken steps to reduce expenses through cost cuts, reduction in staffing, and reduction in service levels in the HCV program. HACEP has been budgeted to cover the cost of administrative revenue by providing unrestricted funds.

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HISTORICAL OPERATING FUND PRORATION LEVELS

Year Proration Level

2014 89.00%

2015 86.63%

2016 87.74%

2017 85.00%

2018 94.74%

2019 (est.) 85.00%

2019 BUDGET – PROGRAMS/ACTIVITIES/PROPERTIES MANAGED BY HACEP

HACEP manages programs and properties. It is the Consolidated entity for all of the companies in its purview, with the COCC (Central Office Corporate Center) functioning as the corporate office. This 2019 budget however, does not include the separate properties that are not directly 100% owned/controlled by HACEP. These separate properties have changed ownership under RAD and although a HACEP company is the general partner in these properties, it is a minority owner with less than 1% ownership. The budgets for these separate properties are submitted for approval by the majority owners. The 2019 HACEP budget must be approved by the Board of Commissioners. Following is a list of the programs and properties included in the HACEP budget:

LIPH (Public Housing

Properties)HCV (Section 8) Departments Companies Properties

AMP 11 – S Site 430

HCV HAP (including VASH)

Executive PHRCChai Manor

(LIHTC)


Mainstream HAP Finance/Procurement PHRCElvin Estates

(LIHTC)


Veterans Development/RAD HACEP Salazar

AMP 12 - OasisHCV

AdministrationHuman Resources HACEP Gonzales


IT HACEP Cisneros


Yardi HACEP Kennedy Bros

AMP 14 - Pooley Print Shop HACEP Sitgraves

AMP 15 – Leasing Internal Services APFC

AMP 18 - Machuca Health Insurance ACME

AMP 18 - Robinson Workers Comp HAC

AMP 18 – Roosevelt

Unemployment

AMP 18 - Rubin Pilot

Federal Programs COCC Business Activities

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Companies Properties Properties Property Property 5300 Paisano

Western Redd Road, LTD Western Redd (LIHTC) Hervey Tio Cooper Siesta Gardens Yarbrough

Western Yarbrough, LTD Western Yarbrough

(LIHTC)Henderson 1600 Montana

AHV Western Burgundy (LIHTC) Munoz Telles

AHV Western Carolina (LIHTC) Sitgraves Flora Garcia

AHV Western Crosby (LIHTC)

AHVWestern Eastside Seniors

(LIHTC)

AHA Villa Alegre (Non-ACC)

HACEP Las Casitas (Non-ACC)

HACEP Lomaland (Non-ACC)

HACEP Desert Sun (Non-ACC)

HACEP Kennedy (2) (Non-ACC)

HACEP Orchard (Non-ACC)

HACEP St Johns (Non-ACC)

HACEP Sitgraves (Tax Credit)

El Paso RAD 2 Paisano Green

El Paso RAD 2 Montwood Heights

El Paso RAD 2 Alamito Place Casitas

Section 8 New Construction

Tio Cooper (USDA)

Siesta Gardens

(Continuum Of Care)

Non-Dwelling

Properties (COCC)

Blended Component Unit

(Business Activities)

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FEDERAL PROGRAMS Low Income Public Housing

Under this program, HACEP rents units to low-income families. The program is operated under an Annual Contribution Contract (ACC) with HUD, and HUD provides an operating subsidy to enable HACEP to provide housing at a rent that is based upon the greater of 30% of adjusted household income or 10% of gross income. The CFP is a primary funding source for physical and management improvements to HACEP's properties. Funding is based on a formula allocation from HUD determined on the size and age of HACEP's housing stock.

HCV (Section 8 Housing Choice Voucher)

The HCV is the federal government's major program for assisting very low-income families, the elderly, and the disabled to afford safe, decent and sanitary housing in the private market. Housing choice vouchers are administered locally by HACEP. HACEP receives funds from HUD to administer the voucher program. A housing subsidy is paid to the landlord directly by HACEP on behalf of the participating family. The family then pays the difference between the actual rent charged by the landlord and the amount subsidized by HUD.

VASH - In addition to the Section 8 vouchers, HACEP has vouchers under the VASH (Veterans Housing Assistance) program that are set aside for veterans. This is a referral program and is operated in conjunction with the local Office of Veterans Administration. These 250 vouchers have been merged with the Section 8 vouchers.

Mainstream Vouchers Program HACEP administers a program of rental assistance payments to private owners on behalf of eligible low-income families whose head of household has a disability. The program provides payments covering the difference between the maximum rent on a dwelling unit, as approved by HUD, and the amount of rent contribution by a participating household.

Veterans Lodge – Veterans Lodge is a Continuum of Care (COC) Voucher Program. Through this program, HACEP serves 15 chronically homeless residents who are referred through the Veterans Administration.

HCV Programs Voucher Budget/

Renewal Funding

Section 8 (including 250 VASH Vouchers)

5,619

Mainstream Vouchers 75

Veterans Lodge 15

Siesta Gardens 22

Total 5,731

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SIESTA GARDENS Siesta Gardens is a Continuum of Care (COC) Voucher Program. Through this program, HACEP owns and maintains this apartment complex, which serves 22 chronically homeless residents who are referred through Emergence Health and Mental Network (EHN). Funding for this program is provided through the Section 8 HCV program in the form of Project Based Vouchers (PBV).

SECTION 8 NEW CONSTRUCTION The Section 8 New Construction Program assists low-income families in affording safe, decent, and sanitary housing by encouraging property owners (HACEP included) to construct new housing or rehabilitate substandard housing. These newly improved units are then leased to low-income families with rental subsidy from HUD.

The four Section 8 New Construction properties are funded with 492 Project-Based Section 8 vouchers provided through HUD’s Multifamily Division. Payment each month is received from residents and from HUD in the form of voucher subsidy for actual units rented. An approved Property Management Fee (earned by EP home) is an expense in the budget and is earned and received based on the amount of rent collections.

S8NC Properties # Units

Henderson 144

Hervey 124

Munoz Manor 160

Sitgraves1 64

Total 492

TIO COOPER The 50 unit Tio Cooper property was financed through a USDA (US Department of Agriculture) -financed Rural Rental Housing program. This program provides annual subsidy payments to owners on behalf of low-income tenants that are domestic farm laborers or individuals who

1 Note that there are 3 units in the Sitgraves property are not funded from the Section 8 new Construction Program and are market units owned by HACEP affiliate – Affordable Housing Acquisition (AHA)

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derive a substantial portion of their income from farm labor and their families that are unable to pay their full rent.

COCC (CENTRAL OFFICE COST CENTER) Departments

The Central Office Cost Center ("COCC") is mandated by HUD to account for "centralized" services and functions necessary to the Authority's operations. Funding for the COCC is in the form of fees charged to other Authority programs and activities as well as to affiliate entities. The fees charged include those specified by HUD as Management Fees, Bookkeeping Fees, asset Management Fees and other fees for service. HUD regulates which and how fees may be charged to HUD programs.

Internal Services

HACEP sponsors a self-funded medical and dental benefits plan (the Medical Plan) and utilizes a third party administrator for Medical Plan administration. The Medical Plan is accounted for in an Internal Service Fund. An excess insurance policy covers individual claims in excess of $250,000 and $2,000,000 in the aggregate. Utilizing Actuary analysis from the Company Benefits broker, for the 2019 budget, HACEP projects to basically break even with deposits to the fund equaling expenditures from the fund. Although the 2018 year is not over yet, with current trends, HACEP projects a small loss with expenditures in excess of deposits to the fund of less than .5%, an amount that is expected to be absorbed into COCC losses/gains.

HACEP provides workers compensation benefits under a self-insurance program administered by a risk management services company, and accounts for this program in an internal service fund. In addition, the Authority purchases an excess workers compensation and employer’s liability indemnity policy to cover workers compensation claims in excess of $450,000 per accident per individual. With deposits of $54 per employee per month to the fund, for 2019, HACEP projects a surplus in the fund to add to the fund reserve.

HACEP is self-insured for employee Unemployment Insurance. With deposits of $35 per employee per month to the fund. For 2019, HACEP projects a surplus in the fund to add to the fund reserve.

PILOT (Payment in Lieu of Taxes) is a cost to the Public Housing properties. The City of El Paso has allowed HACEP to retain these funds to provide additional assistance to the residents of the community. The income and expenses for PILOT are recorded in the Internal Services Fund.

EP HOME (BUSINESS ACTIVITIES)

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EP Home is a company formed by HACEP to provide property management services to HACEP owned properties. HACEP will pay Property Management Fees to EP Home as enumerated in the MOU.

BUSINESS ACTIVITIES PHRC (Paisano Housing Redevelopment Corp)

PHRC, a public facilities corporation is the 501c3 non-profit Development Company for HACEP and has worked as a partner with other multi-family developers in various development deals, has self-developed various properties and is currently orchestrating the largest HUD RAD conversion with Tax Credits and other funding sources in the United States to PBRA (project based rental assistance) and PBV (project based vouchers). PHRC is the managing partner for several non-profits. It is responsible for ensuring that select properties are in compliance with Texas Department of Housing & Community Affairs (TDHCA).

APFC (Alamito Public Facilities Corporation)

APFC, a non-profit uses the broadest possible powers to finance or to provide for the acquisition, construction, rehabilitation, renovation, repair, equipping, furnishing, and placement in service of real estate, primarily through the filing of allocations of private activity bonds with the Texas Bond Review Board and issuing the bonds.

BLENDED COMPONENT UNITS (BUSINESS ACTIVITIES) HACEP and wholly owned affiliates, are general partners in various LIHTC partnerships. The partnerships own apartment properties and rent housing to low-income families and the elderly. These partnerships are either classified as blended component units or discreetly presented component units depending on the HACEP affiliate ownership percentage. Generally the partnerships that are 100% owned by the HACEP affiliate are blended component units and reported in the HACEP financial statements as part of the primary government (HACEP). Partnerships where the HACEP affiliate is a minority owner, typically in a tax credit deal that is still in the 15 year compliance period, are included in HACEP yearend reporting but reported separately. These discreetly presented component units are not part of the annual HACEP budget.

AHV (Affordable Housing Ventures)

AHV was established for the purpose of acquiring tax credit units. To date 364 units have been purchased.

AHA (Affordable Housing Acquisition)

AHA owns and manages 369 properties that were purchased without the use of federal funds.

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HAC (Housing Acquisition Corporation)

The predecessor property management company to EP Home.

RAD

These affiliates were formed to own developments that were converted to properties that would receive HUD subsidy under the Multi-family PBRA (Project Based Rental Assistance) Program.

EP RAD-2 Paisano Green Community, LLC owns Paisano Green.

EP RAD-2 Alamito Place Casitas, LLC owns Alamito Place Casitas.

EP RAD-2 Montwood Heights 10, LLC owns Montwood Heights.

Other

Western Redd Road, Ltd owns the Western Redd Road property and Western Yarbrough, LTD owns the Western Yarbrough property

NON-DWELLING PROPERTIES (COCC)

HACEP leases five non-dwelling properties to various non-for-profit organizations. These properties are categorized as non-dwelling because they are commercial spaces. HACEP utilizes the 5300 E. Paisano property as its central office and does not pay rent to itself. Three of the other four properties have leased tenants and expect to receive the below listed rental income. The last property is a community center and currently does not have a lessee. However, it is currently used by EP Home staff for additional office space.

Properties Address Current Occupant Projected Revenue CY-19

COCC 5300 E. Paisano HACEP N/A

Montana 1600 Montana Emergence Health $290,434

Yarbrough 440 S. Yarbrough Ignite Church $67,287

Julian Telles 8820 Old County Project Bravo $8,123

Flora Garcia 10200 Hedgerow N/A N/A

Total $365,843

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2019 BUDGET – 2018 BUDGET, ACTUALS IN COMPARISON TO 2019 BUDGET In order to reduce reporting issues and provide for better financial consolidations, HACEP received permission from HUD to change the accounting year from July 1 – June 30 to January 1 – December 31. To achieve this change, 2018 became an 18 month year – July 1, 2017 – December 31, 2018.

To compare the 2019 budget to 2018 for budget to budget and for budget to actual, we reviewed how the 2018 18 month budget was created in relation to how funds were expensed during this period.

Creating the 18 month budget: With the expectation that there would not be major fluctuations in revenue or expenses over the 18 months, the 18 month 2018 budget was prepared by using the original 12 month annual budget and creating 12 equal months. The additional 6 months for the 18 month budget was created with 6 of these equal months. Therefore the 18 month budget is 1.5 of the original 12 month budget. Since the additional 6 months are in essence equal to 6 months of the original 12 month budget, for comparative purposes of 2018 to 2019, we used the original 2018 12 month budget.

Projected 2018 Actuals and 2019 Budget Impact: The 2019 budget preparation started in August 2018, in the 14th month of the 18 month period. In October 2018, the 16th month of the 18 month budget, we re-evaluated expenses and re-projected some based on the expense trend by that time. We found that select expenses fluctuated from the initial expectation as follows:

Payroll System Costs – In June 2018 HACEP transitioned from provider #1 to Provider #2 for

payroll processing. This transition is expected to save $158,000 annually, with most of these savings to be achieved in the last 6 months of 2018 (July –Dec 2018). This annual anticipated payroll system cost reduction is reflected in the 2019 budget.

Company Name Amount Charge per Month

Employees

Provider # 1 19,370 276 Provider # 2 6,167 266

Payroll Costs – With the improving economy, in the last 6 months, HACEP experienced a higher than normal increase in staff reduction, just as many employers in the area are experiencing. Recognizing that some of this attrition is related to departing employees receiving higher salaries, the 2019 budget leaves the number of employees to the 2018 level with an increase in the amount of money allotted to payroll to competitively attract experienced employees. In 2019 this created a 3% increase in payroll costs over the last 12 months of 2018.

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Health Insurance – HACEP has been fortunate to have health care costs that have not increased the HACEP contribution since 2017. However in 2019, a projected increase of 10% is expected.

Consulting Costs – As more RAD units that were converted in prior years were leased up, a recognition that additional experienced technical assistance was required in order to effectively and efficiently manage the programs increased consulting cost in the last six months of 2018. This use of consultants is expected to carry into 2019 without an increase over projected actual 2018 cost.

Yardi System Costs – During the last six months of 2018, a new module of Yardi was implemented. Additionally there was a recognition that the initial Yardi setup at the beginning of 2018 required changes in order to allow staff to effectively and efficiently perform tasks in Yardi. With RAD as a new program, HUD, TDHCA, Yardi and HACEP have had to adjust to the nuances of the program. In 2019, additional software licenses are anticipated and additional modules may be implemented that will allow residents to better communicate with HACEP.

Interest Revenue – During 2018, more GAP Loan proceeds were dispensed to the RAD projects, increasing the Loan Receivables on the Balance Sheet but also increasing the Interest Earnings. During 2019, additional GAP and Seller Note proceeds are expected to be expended further increasing interest earnings.

2019 BUDGET – RAD AND IMPACT ON 2019 BUDGET RAD is a voluntary program of HUD that seeks to preserve public housing by providing Public Housing Authorities (PHAs) with access to more stable funding to make needed improvements to properties. With stabilized funding, it is easier for PHAs to borrow money and use low income housing tax credits as well as other forms of financing. These private sources of additional money will enable PHAs to make improvements essential for preserving affordable housing. HACEP was awarded a portfolio wide allocation to convert Public Housing to Project Based Rental Assistance (PBRA) through the Rental Assistance Demonstration (RAD) program.

Under RAD, HACEP enters into a multiple year contract with HUD to take ownership of the multifamily properties currently managed by HACEP on behalf of HUD, transitioning from the Section 9 program to the Section 8 program. RAD enables HACEP to partner with investors and lenders on financing tools to fund the capital rehabilitation of the properties and convert them from Rental Supplement and Rental Assistance Payments to project-based vouchers.

Much of the RAD portfolio is not included in the corporate budget, because they are treated as discreetly presented component units to HACEP. The RAD units that are in the Corporate Budget do not have external equity providers and did not receive tax credits. The funding for development costs was from bank financing and HACEP Gap Loan financing.

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CHAPS and Conversion Status

In 2019, HACEP is projected to have 844 public housing units left in their portfolio in 5 AMPS.

2019 BUDGET – HACEP BUDGET ASSUMPTIONS: CORPORATE ALLOCATIONS AND ASSIGNMENT OF COSTS

AMP Beginning Units FY '15 FY '16 FY '17 CY '18

Remaining Units CY '19

AMP 011 892 454 - - 162 276 AMP 012 854 536 96 148 - 74 AMP 013 1,328 - 81 210 1,037 - AMP 014 1,104 - - 175 806 123 AMP 015 906 600 - 63 188 55 AMP 016 76 - - 76 - - AMP 018 564 - - 24 224 316 AMP 023 142 - - 142 - - AMP 024 10 - 10 - - - AMP 025 89 - 73 - - - AMP 026 73 - 89 - - - AMP 028 64 - - - 64 - Additional Units Added to Portfolio 117 34

Total for Year 1,590 466 872 2,481 844

Total to Date 6,102 1,590 2,056 2,928 5,409 6,253 Units post conversion = 6,253. The difference of 151 units is due to the unit increases for Tays South (117) and Sherman North (34).

FY 15 - 07/01/14 to 6/30/15

FY 16 - 07/01/15 to 6/30/16

FY 17 - 07/01/16 to 6/30/17

CY 18 - 07/01/17 to 12/31/18 - For 18 months

CY 19 - 01/01/19 to 12/31/19 - Units remaining in Public Housing

Units Converted by Year

844

5,258

568

5,534

6,253

6,102

Total Units Pending Conversion

Total Units Converted

CHAPs Pending Application

CHAPs Approved to Date

Total Units Post Conversion

Total Units Pre Conversion

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The various properties/programs have varying degrees of guidelines to follow. Therefore, as a practice, where appropriate, HACEP and its property management company EP Home follow the most restrictive of the regulations in managing properties/programs.

COMPENSATION Salaries

Per Public Housing Asset Based Accounting guidelines, the salaries of the following staff are allocated among properties (Public Housing, Tax Credits, Market, etc.): Tenant Rent Collection, Tenant Services, Compliance and Protective Services. HUD’s regulation allows where it is not economical to have full-time personnel dedicated to a specific property, the organization may establish a reasonable method to spread these personnel costs to the properties receiving the services.

Salaries are budgeted using an overall increase of 3%.

Benefits

Based on Public Housing Asset Based Accounting guidelines, the benefits have been reported within the major cost categories of Administration, Tenant Services, Protective Services and Maintenance. The following benefits are included based on benefit plan for eligible participants:

In CY2019, there will be three health benefit plans offered to employees. HACEP/EP home will contribute the same amount per category of employee (Single, Family etc.) to each of the plans. Based on our third party consultant HUB, the projected health insurance increase for CY19 varies by health insurance plan chosen by employee and averages at about a one percent increase to the employee and about one percent increase to HACEP

Employer portion of health insurance ranges from $0/month (employee may have opted to not participate) to $1106/month depending on employee’s selection for coverage

HACEP/EP home is self-insured for health benefits with a $250,000 stop loss for employee medical costs in excess of $250,000

Employer portion for retirement - 7% of base salary/per employee Employer portion for Life Insurance - $.37/$1,000/per employee Employer portion for Disability Insurance - $.62/$1,000/per employee Employer portion for Unemployment - $420 annually/per employee. HACEP is self-insured. Workers Compensation - $648 annually/per employee. HACEP is self-insured. Employee Assistance Plan (EAP) - $5K/per employee provided through HAI at no cost to HACEP

Employees.

HACEP COST ALLOCATIONS The following is a list of costs that by nature are to be allocated to relevant and appropriate programs based on a specified basis. The Budget department has utilized different methods in calculating the appropriate allocations for each program at HACEP. The follow is a list and description of such cost allocations:

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Insurance

General Liability HACEP: General liability insurance is with the Housing Authority Insurance (HAI) of which HACEP is a joint-investor. For the public housing properties/Select other properties, Section 8 and COCC, HAI provides a breakdown of the premium by AMP for public housing properties and property for the other properties and by cost center for programs. Where properties have their own insurance policies, the cost of their individual insurance policy is in the property budget.

Commercial Property HACEP: Commercial property insurance is with the Housing Authority

Insurance (HAI) of which HACEP is a joint-investor. For the public housing properties/Select other properties, Section 8 and COCC, HAI provides a breakdown of the premium by AMP for public housing properties and property for the other properties and by cost center for programs. Where properties have their own insurance policies, the cost of their individual insurance policy is in the property budget. Business personal property is included in our property coverage.

Vehicle HACEP: The vehicles are owned by HACEP through COCC. The vehicle insurance

premium is a cost to COCC. The vehicles are primarily used by the police officers. An annual fee of $ 400,000 is charged to the properties for the services of the police officers and the use of vehicles.

Workers Compensation and Excess Workers Compensation: As a self –insured agency, an

analysis of the past claims and administrative cost was made to determine a monthly rate to project for the fiscal year. For CY19, the projected rate is $54 per employee per month. These premiums are charged to the all properties/programs and deposited into a separate Workers Compensation Fund.

Unemployment: As a self-insured agency, an analysis of the past claims and administrative

cost were made to determine a monthly rate to project for the fiscal year. For CY19 the projected rate is $35 per employee per month. These premiums are charged to all properties and programs then deposited into a separate Unemployment Fund.

Audit Fees

The annual HACEP audit fee will be allocated to the following programs using the stated percentage:

COCC 10% Housing Choice Voucher Program 10% Section 8 New Construction 5% Public Housing and other properties 75%

Tio Cooper and Chai Manor each have separate annual audits.

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Capital Funds Programs

For CY19, the Housing Authority will utilize all Capital Fund administrative fees (along with the balance of the grants) towards financing of the GAP Loans HACEP provides for the RAD properties. The estimate for these capital funds (CFP) is $7,000,000.

ASSIGNMENT OF COST Bank Charges

The properties and the COCC scan checks/money orders received into Yardi and simultaneously to the bank (JP Morgan). The fees charged for this service are included in the Bank Fee line of the budget and are allocated to the properties/programs based on number of units. The non-Public Housing properties have their own bank accounts and bank fees are charged directly to them. The Section 8 HCV Program has its own bank account for HAP payments. Standard bank analysis fees are allocated to COCC, Public housing and Section 8 Administrative expenses based on the bank analysis fee statement.

Resident Services

To the extent practical, all resident services will be site-based with costs tracked by property. Where we cannot reasonably track costs to a property, HACEP will pro-rate all reasonable centralized resident service costs across developments, based on Public Housing Asset Management Accounting guidelines.

General Corporate Oversight

These costs are considered part of COCC and are included as part of the Management Fees.

Human Resources

HACEP can charge projects for the cost of advertising, drug testing, and other direct costs incurred for the front-line staff.

Drug Testing – Employees

This is a direct cost and will be allocated to the cost center based on the usage.

Tenant/Prospective Tenant Background Checks

Costs associated with background checks for tenant/prospective tenants will be allocated based on usage each month. The Texas Department of Public Safety will provide this information to Finance each month.

Fuel Usage

Each vehicle is provided with a gas card. This enables HACEP to monitor the usage of each vehicle. With regards to properties in this budget, the total fuel cost will be calculated for the entire property and then distributed based on the number of units within the properties. The budgeted amount was calculated by taking historical figures by property/program and then distributing based on number of units.

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Telephone Costs

Telephone costs are directly identified to a location, program or a employee at a location and as such are charged as a direct cost to that property/program. All other telecommunication costs are charged to COCC and subsequently considered part of the Management Fee.

Membership fees

HACEP participates in the following housing organization:

NAHRO (National Association of Housing and Redevelopment Officials) CLPHA (Council of Large Public Housing Agencies) Southwest NAHRO PHDA (Public Housing Authorities Directors Association)

The membership fee paid to the organizations is budgeted at the property/program level.

Centralized Procurement

All costs related to procurement are currently reported as COCC costs. In the future, we plan to establish a fee-for-service at a flat rate for procurement services requested by an property/program.

Construction Management

The Construction department will perform construction management for EPHOME properties at a fee of 7% of invoice to perform the work. At this time, there are no construction management services budgeted to the properties.

Risk Management

All costs related to Risk Management are treated as COCC costs.

Corporate Legal

These costs are considered part of COCC. However, if attorneys are engaged to provide services directly to a property/program, such as evictions, then a fee will be charged to the appropriate Property.

Security / Protective Services

To the extent practical, all protective services will be site-based with costs tracked by property. Where we cannot reasonably track costs to this level, HACEP will pro-rate all reasonable, centralized, protective service costs across properties. Any security cost that is incurred outside of the property will be charged to the COCC cost center.

Compliance Costs

HACEP Compliance Department provides services to all of the properties managed by EP Home. A $20/per unit fee is charged by HACEP to each of the properties to cover the costs incurred by HACEP

Utilities

All utilities are projected with an increase of 3% over prior year projected actuals.

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OPERATING SUBSIDY REVENUES Low Rent Public Housing

HUD has not completed the process to determine the Operating Subsidy available for Public Housing in CY2019 as of this time. Therefore a projection of operating subsidy was done using the HUD methodology with estimates for factors such as inflation rate and proration factors. Due to federal budget uncertainty, the budgeted operating subsidy for CY19 is prorated at 85%; although, the final approved rate is not known at this time. When operating subsidy is received, it is credited directly to the respective AMP as revenue. This amount is then allocated among the properties within the AMP based on the number of units in each property.


Rent increases are to be requested each year from the HUD Multi-Family Department and are based on applying the published OCAF (Operating Cost Adjustment Factor) to the Contract Rent. The Gross Rents include the Contract Rent and a factor for Utility Allowances by apartment size. The amount of the Utility Allowance is to be benchmarked every three years.

Housing Choice Vouchers

The HCV budget is based on 5,709 available vouchers, (excludes 22 vouchers for Siesta, which

are budgeted elsewhere). HUD has not provided the budget authority for CY2019 at this time. Therefore we based the

funds available for HAP assistance to landlords assuming a funding availability at 98% of projected budget authority. Under cash management, excess HAP funds will be held by HUD rather than by the PHA in the NRA account. If additional funds are needed to lease in CY2019, HACEP can request HUD-held reserves to pay for the vouchers.

Section 8 Interest Income: Only one Section 8 account is maintained, this includes both administrative and HAP funds. Each month, the Treasury and Finance Department will make an allocation of interest between HAP and Administrative fees. Per PIH Notice all interest payment will be remitted to HUD as prescribed.

Fraud Recovery: All funds received as a result of a fraud settlement are split 50/50 between

HACEP and HUD funds for Section 8. Under certain circumstances the PHA can retain the cost of the collection of the fraud recovery, whichever is greater. However, when reporting to VMS, these are reported as revenue in one account. There is $4,000 Reported as a projection of Fraud Recovery.

Housing Choice Voucher Administrative Fees

The formula that determines Administrative Fee Income to be received from HUD is based on

an average number of 5619 vouchers per month.

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A 76% proration was used in projecting HCV Administrative Fee income. HCV Administrative

Fee Income is calculated based on the Estimated Unit Months Leased for the year by HUD using the Voucher Management System (VMS). This amount was then prorated at 76%, and HAP was prorated at 100%.

MANAGEMENT FEES Low Rent Public Housing

COCC has entered into a Memorandum of Understanding with each AMP. For each of these fees, a monthly invoice will be prepared and submitted to each AMP. The cost that will be charged to each AMP for the various Management Fees are detail below:

Property Management Fees: HUD published CY18 Management Fees and define a Property Management Fee of $50.29 PUM (Per Unit Month) to be charged to each AMP on a monthly basis. The Management Fee earned each month will be based on the number of occupied units and “allowable vacancies” (as defined under Section 990.145 of the HUD operating fund rule). This is the last available HUD approved publication of Management Fees.

Bookkeeping Fees: A Bookkeeping Fee of $7.50 PUM will be charged to each AMP on a monthly basis. The Bookkeeping Fee earned each month will be based on the number of occupied units and “allowable vacancies” (as defined under Section 990.145 of the HUD operating fund rule).

Asset Management Fees: Based on Section CFR 24-990.190(f) HACEP will charge an “add-on”

asset Management Fee of $10.00 PUM. PHA may supersede the section and charge higher amounts subject to the availability of funds. The charge can only be to the extent of the HUD defined excess cash calculation for the previous fiscal year. The Asset Management Fee will be calculated based on the number of ACC units (not occupied units) and is paid to COCC.

RAD Converted Properties

EP Home has entered into a Memorandum of Understanding with each property. The cost that will be charged to each properties for the various Management Fees are detail below:

Property Management Fees: For the RAD properties, HUD published CY18 Management Fees

define a Property Management Fee of 6% of net Income or not to exceed the amount of $45.00 PUM (Per Unit Month) to be charged to each property on a monthly basis. The Management Fee earned each month for all of these units is generally based on the number of occupied units and “allowable vacancies” (as defined HUD Handbook 4350.1 rules). Each partnership also signs an agreement with the property management company (EP Home) that may provide for differing Management Fee provisions, but none exceed the amounts allowed under the HUD guidelines. These are the last available HUD approved publication of Management Fees.

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Bookkeeping Fees: For RAD converted properties, there is no Bookkeeping Fee. Cost of

accounting is embedded in the Property Management Fees. Asset Management Fees: Asset Management Fees for RAD converted properties are

determined by the Limited Partnership Agreements, and paid to each individual partnership. Compliance Fees: HACEP will charge a $20.00 per unit per month to the RAD properties for a

compliance fee per the Limited Partnership Agreements. This fee is to offset the cost of the HACEP compliance staff. Third party compliance (currently Novagradac) fees to review LIHTC files are charged to properties at actual cost.

Resident Services Fees: Several RAD converted properties are charged a resident service fee

per unit, per month to cover the cost of salaries and resident services.

LIHTC Only Properties

Property Management and Bookkeeping Fees: The LIHTC properties charge varying Management Fee rates per their individual agreements that cover both the Property Management Fee and the Bookkeeping Fee.


Property Management and Bookkeeping Fees: Section 8 New Construction is charged Property Management Fees that cover both the Property Management Fee and the Bookkeeping Fee. These fees are based on an approved rate by HUD (currently 6%) applied to the actual cash collections from tenants and HUD HAP.

Housing Choice Vouchers

S8 Management and Bookkeeping Fees: The Section 8 program pays Management Fees and Bookkeeping Fees to COCC for its oversight of the program. The funds available for administrative fees payable to COCC are established based on the projected unit months leased. The Project Based Accounting Management Fee Principle allows the PHA to either (A) charge a flat fee of 20% of eligible administrative expenses or, (B) charge a monthly PUM of $12.00 for administrative fees and $7.50 PUM for Bookkeeping Fees.

For the 2019 budget, we selected the S8 Management Fee rate of $12 per leased voucher and the Bookkeeping Fee rate of $7.50 per leased voucher.

Non-ACCs

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Property Management and Bookkeeping Fees: The NON-ACC properties pay Property Management Fees and Bookkeeping Fees that is consistent with the rates for Public Housing. Siesta Gardens

Property Management and Bookkeeping Fees: Siesta Gardens pays Property Management Fees and Bookkeeping Fees that are consistent with the rates for Public Housing.

Properties Not Earning Management Fees

The following properties do not pay any Property Management Fees or Bookkeeping Fees:

Tio Cooper Non-Dwelling Properties

EP Home

EP Home will be the property management company for HACEP properties. EP Home will receive the Management Fees charged to the properties with 2% of the total fee received then paid to HACEP.

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FINANCIAL MANAGEMENT POLICY HACEP maintains a Financial Policy Handbook that defines the financial responsibilities of HACEP that guide staff by providing a framework to conduct HACEP activities. The Handbook has been reviewed and approved by the Board of Commissioners and is updated as needed. A number of pertinent policies and practices are outlined in this section.

Reporting Entity

HACEP is a unit of local Government. HACEP’s five-member Board of Commissioners are appointed by the Mayor of the City of El Paso, Texas. HACEP is not a component unit of the City or County of El Paso, Texas.

Calendar Year

HACEP converted from fiscal year to calendar year starting in 2018. Current fiscal begins on July and ends June, a budget revision was prepared to take into account the remainder six month for 2018. All tax Credit and component unit properties already maintain a calendar year.

Budget Adoption

HACEP is only required to adopt a budget for the public housing program. However, HACEP adopts budgets as a model of good business practice and stewardship of public funds. HACEP adopts budgets for each HUD Program as well as other business activities. All annual budgets lapse at year end. Multi-year budgets are prepared for capital budgets program for the length of the projects and are annualized for annual budget adoption.

Budget Reporting and Oversight

Financial systems are maintained to report HACEP’s revenues and expenditures. Monthly reporting of the status of the budgets versus actual are provided to the Board of Commissioners as well as managers of different projects and departments.

Budget Revision Policy

If substantial changes are required to the budget, then a mid-year budget revision will be prepared and submitted to the Board of Commissioners for approval. Any change to the Public Housing Program budgets will have to be adopted by resolution and filed with the HUD office.

All changes require a Budget Change Order (BCO) request to be submitted to the Budget Office. The approvals will be based on the level of authorization:

Managers: Budget change within own department/Project Directors: Budget changes within their department Division Chiefs: Budgets that affect more than one department as permissible and budget

authority Chief Financial Officer: Budget that effect multiple departments Chief Executive Officer: New program not included in the original budget Board of Commissioners: Approval of Budget & Budget revisions

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Grant Budgets

Capital Funds Grants are an annual appropriation from HUD. Once the funds are allocated, a line item budget is prepared by the Development and Capital Funds department in conjunction with Public Housing Department, and Resident Councils in conformity with the Five-year rolling Capital Funds Plan. Based on our decision to convert to RAD, all future CFP allocation for remaining Public Housing projects will be set aside for RAD development activities.

Ross Grants

HACEP is a recipient of three Resident Opportunity and Self-Sufficiency Grants. These grants support self-sufficiency program in Public Housing, HCV and Multi-Family program. For multi-year funded grants, a prorated amount is included in the current year fund.

Operating Reserves

The Public Housing Program does not permit budgeting for replacement reserves, as HUD provided annual allocation of CFP funds for Capital expenditures. Starting this fiscal year, HACEP will be making provision for replacement reserves for all programs other than Public Housing. As Public Housing units are converted into RAD units, HACEP will be required to make provision to replacement reserves.

Voucher Management System (VMS)

HACEP is required to submit the financial activities of the HCV program on a monthly basis to the VMS system. This system records the operational utilization of vouchers and also monitors administrative cost of operations.

Financial Data System (FDS)

HACEP is required by HUD to submit on an annual basis the result of the unaudited results of the agency operation within 60 days of the close of the fiscal year. Non-compliance of these requirements carries penalties and sanctions.

Annual Audit

An annual audit and submission is required within eight and a half months of the close of the fiscal year under OBM circular A-133. HACEP has consistently received an unqualified opinion for several years.

Personnel Policy

This budget is prepared in compliance with HACEP’s approved Personnel Policy. Included in this budget are provisions based on staff vacation and sick leave accruals, annual merit and incentive payments, contribution to benefits, and retirement contributions.

Regular full-time employees receive compensation for vacations, holidays, illness and other certain qualifying absence.

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Payroll Policy

HACEP payroll is processed on a bi-weekly basis. Payroll guidelines are strictly managed by the Human Resource Department.

Investment Policy

Federal Statutes authorizes investment in excess of federal funds in instruments issued or guaranteed by the federal government. HACEP has adopted this policy for the invested funds. The types of investment which are authorized to be made with HACEP funds are controlled by State statute and contract with HUD. HACEP is required to invest its excess funds in a manner that provide the highest yield with maximum security. Permissible investments include obligations of the U.S. Government, obligation of U.S. Government agencies and instrumentalities, Certificate of Deposits issued by Commercial banks and saving and loan institutions, repurchase agreements, investment pools approved by the State of Texas, and money market mutual funds comprised solely of United States Government Securities.

HACEP maintains a separate Investment Policy Manuals. The Director of Finance and the Chief Financial Officer are designated Investment Officers.

Debt Issuance Policy

HACEP is authorized by the Texas State Statute to issue tax-exempt revenue and special obligation bonds to fund its corporate purposes. The obligations are not obligations of the City or County of El Paso. As such bondholder’s recovery are limited to the funds of HACEP. All HACEP bonds have to be approved by the Board of Commissioners by resolution. The bonds can be sold at private or public sale.

It is HACEP’s policy not to issue long-term debt to support current operations.

Tenant Accounts Receivable Write-off Policy

Tenant Accounts Receivable owed to HACEP by residents who moved out of HACEP communities are written off after 90 days, periodically during the year. All write-offs are subject to a resolution by the Board of Commissioners. Write-off of tenant accounts receivable from HACEP books does not preclude HACEP from efforts to collect the liabilities. As a practice, all balances are forwarded to third party collection agency for recovery efforts.

Capitalization Policy

Capital assets are carried at purchase cost. Maintenance and repairs are charged to the current operating expense and improvements are capitalized. Upon retirement or disposition of property and equipment, the cost and related accumulated depreciation are removed from the respective accounts and any gains and losses are recognized. HACEP’s capitalization policy has a purchase threshold of $5,000

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Capital Assets History from 2013 - 2017

Depreciation Policy

Depreciation of capital assets is computed using the straight-line method over the estimated useful life of the asset, as follows:

Building 27.5 years

Site Improvement 10.0 years

Computers & Equipment 5.0 years

Furniture & Vehicles 5.0 year

Material Salvage

HACEP has a salvage policy that authorizes and controls the disposition of material and property, which prevents unauthorized disposition of HACEP property and material and abides by all applicable laws and regulations.

Policy Compliance

All HACEP’s policies are to be compiled by staff as applicable. The approved policies include the following:

Personnel Policy Finance Policy Procurement Policy Investment Policy Administrative Plan – HCV Admissions and Occupancy Policy- Public Housing Admissions and Occupancy Policy- Multifamily Section 3 Policy Records Retention Policy Disaster Recovery Plan Risk Management Plan

Capital Asset FY 2013 FY 2014 FY 2015 FY 2016 FY 2017

Land 31,109,105 31,384,186 27,615,680 27,584,003 24,389,984

Construction in Progress 19,097,287 331,778,694 355,476,896 372,179,987 379,623,587

Building 313,274,149 14,040,215 6,714,004 7,313,182 5,091,364

Furniture & Equipment 14,099,855 7,949,819 6,323,452 5,263,211 5,229,944

Total Assets 377,580,396 385,152,914 396,130,032 412,340,383 414,334,879

Accumulated Depreciation 247,669,913 258,849,420 202,370,629 195,434,086 136,204,957

Net Capital Assets 129,910,483 126,303,494 193,759,403 216,906,297 278,129,922

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LONG TERM DEBT During fiscal year ended June 30, 2015, HACEP financed construction partially with debt from development programs offered through the City of El Paso. Eastside Crossing, Chai Manor and Elvin Estates were the recipients of the development loans of $2.0 million in aggregate.

Loan payable to the United States Department of Agriculture (USDA) in connection with the development of the 50-unit Herbert “Tio” Cooper Apartment Community for Migrant Farm Worker Families. The loan with the original amount of $1,500,000 carries an annual interest rate of 1%, requires monthly principal and interest payments of $4,640, matures March 2035 and is secured by the underlying property. $811,213

Community Development Loan payable from the City of El Paso in the amount of $400,000 for the Siesta Gardens project. The loan is non-interest bearing with monthly principal payments of $1,111, matures May 2037. $228,890

Loan payable to a bank for the rehabilitation of a 369-unit housing project located in East El Paso, Texas. Interest shall accrue on the outstanding principal balance of the loan on a fixed rate of 3.65%. The loan will be interest only through June 2013 at which time the loan will amortize over 10 years. The loan is secured by a first lien and security on the underlying property and improvements. $7,000,000

Loan payable to the City of El Paso in connection with the rehabilitation of a 369-unit housing project located in East El Paso, Texas. The loan is interest free and payable in one hundred twenty (120) equal monthly installments commencing ninety (90) days after the first day of the month following the completion date of the project. $480,000

Loans payable in the maximum amount of $1,700,000 and $157,052 to the City of El Paso in connection with the construction of the property known as Elvin Estates. The loans are interest free and shall be forgiven in its entirety in 20 years after project completion so long as the Authority maintains compliance with the Neighborhood Stabilization Program Development Agreement. $1,857,052

Loan payable to the City of El Paso dated June 2013 in connection with the construction of the property known as Chai Manor. The loan bears no interest with equal monthly payments of $6,667 for 120 months. The loan matures May 2023. However, as long as the Authority maintains compliance with the terms of the Community Development Rental Housing Program, such monthly payments shall be deferred, and the original balance shall be forgiven in its entirety ten (10) years after the date of project completion.

Loan payable to JP Morgan Chase bank dated May 23, 2013 in connection with the construction of the property known as Eastside Crossing. The loan accrues interest at 3% and matures forty (40) years after project completion.

HOME Funds loan payable to the City of El Paso in the maximum amount of $100,000 in connection with the construction of the property known as Eastside Crossing. The loan accrues interest at three

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percent (3%) per annum and is due forty-two (42) years from the date of the first advance (February 5, 2014). The loan is secured by real property.

Long Term Debt Schedule LENDER/DESCRIP

TION OF DEBT INTEREST RATE AND MATURITY

2014 2015 2016 2017-2018

Tio Cooper Loan payable to the United States Department of Agriculture (USDA)

1% Matures in March 2035

$ 1,020,226 $972,945 $928,410 $811,213

Siesta Gardens Community Development Loan payable from the City of El Paso

Non-Interest bearing Matures in May, 2037

$ 302,224 $289,891 $275,558 $228,891

Elvin Estates The City of El Paso in connection with the Elvin Estates property.

Non-Interest bearing and shall be forgiven in 20 years after project completion

$1,857,052 $1,857,052 $1,857,052 $1,857,052

Rehabilitation of a 369 unit housing project in East El Paso

Bank Institution 3.65% Matures in 10 years starting in June, 2013

$5,200,000 $5,200,000 $4,509,427 $7,000,000

Rehabilitation of a 369 unit housing project in East El Paso

The City of El Paso

Interest free Payable in 120 equal monthly payments starting 90 days after first day of the month following completion date of the project.

$800,000 $800,000 $800,000 $480,000

Chai Manor The City of El Paso

Non-Interest bearing. Matures in June, 2023

$800,000 $800,000 $615,771

$575,771

Chai Manor The City of El Paso

Interest free. Deferred or forgiven after 10 years

$200,000 $200,000 $200,000 $200,000

Eastside Crossing Loan payable to JP Morgan Chase bank

3% Matures 40 years after project completion

$5,312,932

$5,312,932

$5,364,079

$4,861,255

HOME funds Eastside Crossing 3% Matures 42 years from the first advance (Feb 2014)

$63,000

$63,000

$100,000

$100,000

Total Long term Debt $15,555,434 $15,495,820 $14,650,297 $16,114,182

The Housing Authority of the City of El Paso has no legal debt limits. A Housing Authority is a non-Federal agency that manages Federal Assistance as a single authoritative, government wide comprehensive source of Federal financial assistance programs. Federal assistance is restricted to approval on a yearly basis. CFR §200.40

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Impact of Capital Investments on Operating Budget

The house stock of HACEP dates back of 1940. As a result, the cost of maintenance of the properties has been substantially high. It is expected that after the rehabilitation of the units is complete, the cost of maintenance will be reduced by 45%.

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BUDGET PROCESS Purpose

The purpose of this document is to provide a process that provides HACEP a framework to prepare, review and revise its budgets with the input of management at all levels. The budget is prepared from the bottom-up approach. A budget is prepared for each cost center and accumulated to roll up to the agency wide budget.

Strategic Planning Process

With the guidance from HACEP’s Chief Financial Officer and from direct input from the department managers and division heads, the Budget department prepares the budget for the New Year. The Chief Executive Officer may make cuts necessary before presenting the budget to the Finance Committee. The Finance Committee reviews the budget and provides its input and guidance before submission of the budget to the Board of Commissioners for approval.

Board Resolution

The following resolutions are passed by the board approving appropriation for the upcoming Fiscal Year:

AMP based budget and the Central Office Cost Center Section 8 Voucher Program Other Housing Programs EP Home, Blended Component Units and Business Activities

Description of the Budget

The budget is an annual planning tool that encompasses the financial operating of HACEP and all its entities. The budget may be broken down by funds, program and cost centers.

Function of the Budget Document

The budget is a policy document that outlines the projects sources and uses of funds to obtain the goals of objective set forth by HACEP for the New Year. The budget reflects the financial and operational structures of HACEP. It is a communication device that provides summary information that can be understood by the staff, the Board of Commissioners and the public.

Budget and Accounting Process

HACEP maintains all its books on an accrual basis in conformity with Generally Accepted Accounting Principles. Revenues are recognized when earned and expenses are recorded at the time liabilities are incurred.

Encumbrances are not recorded as expenses. Annual budget appropriations for all funds lapse at the fiscal year end. Accrual will be made for all goods and services received but not paid.

Capital Outlays are recorded as assets on a GAAP basis and expended on a Budget basis. Depreciation expenses are not budgeted but recorded only for GAAP purposes.

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Contributions to Replacement Reserves are recorded as assets on a GAAP basis and expended on a budget basis.

For long term debt, the full amount of interest and principal is budgeted as expenditure. For GAAP purposes, only interest is expensed. The principal amount paid is reduced from the liability balance of the long-term debt.

Budget Preparation

HACEP has an executive team that is comprised of the CEO, COO, CFO, CPM, CLO and CRO (see organizational charts). The executive team defines the budgetary goals. The Chief Financial Officer constitute the core working group for the strategic direction of the budget preparation. Early in the fiscal year, the Sr. Financial Manager prepares a budget timeline for the New Year. Once the timeline is approved, the Sr. Financial Manager meets with each department to determine their direction for the New Year based on the HACEP Goals.

Salaries of all approved positions for the New Year are projected to reflect scheduled changes and updated into HACEP Budget worksheet. Each Manager is furnished with a budget worksheet historical data for the previous year, the current budget and annualized expenses, which shall serve as a starting point for preparing their budget. Each budget is reviewed and approved by their respective department head and forwarded to the Budget department.

Once all budgets are compiled, the Sr. Financial Manager forwards the budget worksheets to all departments and cost centers and Chief Financial Officer for review. Once approved, a meeting is set with the senior staff, in which they present their budget to the Executive teams. A Finance Committee meeting follows and the CFO, COO and CEO present the budget to the Finance Committee. Once the Finance Committee approves the budget, it is then placed on the agenda for the Board of Commissioners meeting and for their approval. Upon approval of the Budgets by the Board of Commissioners, the resolution and budgets are forwarded to the HUD office for the respective HUD Program.

Budget Control Level

Revisions that affect the total expenditure of any cost center have to be approved by the Chief Financial Officer, Chief Operating Officer and the Chief Executive Officer.

Budget Document Compilation

The staff responsible for the preparation of HACEP’s budget documentation is Galaxie Rodriguez, Sr. Financial Manager, and Sandra Medina, Financial Analyst.

They can be reached at 915-849-3767.

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6-Aug-18 Determine which properties to budget for.

6-Aug-18 Send out Current Schedule of Positions (with no values) to all directors for reviews and/or changes.

7-Aug-18 CY-19 Schedule of Positions - List of all employees, including interns. Detail information from Paylocity.

8-Aug-18CY-19 Schedule of Positions Longevity details - including names, hire dates and amounts.

New hires are ineligible.

10-Aug-18 CY-19 Schedule of Positions Tuition Reimbursement Projections per employee.

13-Aug-18 CY-19 Schedule of Positions Overtime Projections - estimated hours per employee.

20-Aug-18

Section 8 NC Resident Participation

Public Housing Resident Participation

RAD Resident Participation.

31-Aug-18 Transportation Projections for projects and grant.

8-Sep-18 CY-19 Schedule of Positions Grant Funded employees allocations per property (HACEP, RAD, S8 NC, Other).

15-Sep-18 CY-19 Schedule of Positions employees allocations per property (HACEP, RAD, S8 NC, Other).

30-Sep-18 Projected Report - Fund 900, 901 & 902 (Health, Workers Comp and Unemployment).

10-Oct-18 Contracts Listing with dates, values, vendor details and description for COCC department.

15-Oct-18 Review all open POs of CY-18 to be considered for CY-19 Budget.

31-Oct-18 CY-19 Budget Templates updated and linked.

31-Oct-18 Other Business Activities - PHRC, AFDC, AF Ventures, AF Enterprises, LIHTC, HAC, Non-Profit.

9-Nov-18 Directors' review and approval of CY-19 Budget.

12-Nov-18 CFO review and approval of CY-19 Budget.

14-Nov-18 COO review and approval of CY-19 Budget.

16-Nov-18 CEO review and approval of CY-19 Budget.

30-Nov-18 Provide approved CY-19 Schedule of Positions allocations to CFO.

12-Dec-18 Preliminary approval of CY-19 Budget by the Finance Committee.

12-Dec-18 Items due to Executive Secretary.

19-Dec-18 CY-19 Budget presentation and approval by the Board of Commissioners.

21-Dec-18 Submit Board Resolutions to HUD.

31-Dec-18 Upload CY-19 Budget to YARDI.

18-Mar-19 Submit Budget to GFOA.

2019 BUDGET PREPARATION CALENDAR

85 | P a g e

BOARD RESOLUTIONS Signed HUD Form

86 | P a g e

Board Resolution No. 2379

87 | P a g e


88 | P a g e


89 | P a g e


90 | P a g e

BUDGETS THE HOUSING AUTHORITY OF THE CITY OF EL PASO TX COMBINED STATEMENT OF REVENUES, EXPENSES AND RESERVES CY 2019 BUDGET

BUDGET FISCAL YEAR* BUDGET BUDGET2019 2018 Variance Variance

TOTAL TOTAL Dollar Percent

REVENUES

Rental income (Dwelling & Non-Dwelling) 11,648,749 11,250,834 397,915 3.54%

Federal Subsidies 40,561,509 46,976,989 (6,415,480) -13.66%

Management Fees 5,050,229 5,727,774 (677,545) -11.83%

Revenue Services (Fee for Service) 3,025,065 750,053 2,275,012 303.31%

Other Income 11,456,894 15,979,562 (4,522,668) -28.30%

Interest 648,596 3,469,612 (2,821,016) -81.31%

Operating Program Transfers 0 612,090 (612,090) -100.00%

TOTAL REVENUES 72,391,042 84,766,914 (12,375,873) -14.60%

EXPENSES

Administrative 15,509,876 18,073,989 (2,564,113) -14.19%

Resident Services 590,187 1,191,621 (601,434) -50.47%

Utilities 2,002,358 3,744,599 (1,742,241) -46.53%

Maintenance 2,959,858 4,087,246 (1,127,388) -27.58%

Protective Services 517,496 410,945 106,551 25.93%

General Expenses 5,033,089 9,232,042 (4,198,953) -45.48%

Housing Assistance Payments (HAP) 30,372,529 29,542,212 830,317 2.81%

TOTAL EXPENSES 60,980,952 70,810,606 (9,829,654) -13.88%

NET OPERATING INCOME 11,410,090 13,956,308 (2,546,219) -18.24%

Additional Funds 12,869,619 18,915,601 (6,045,982) -31.96%

Principal & Interest Payments (1,645,222) (1,231,151) (414,071) 33.63%

Transfer in/(out) (137,215) 0 (137,215) 0.00%

Capital Improvement 645,969 (20,416,405) 21,062,374 -103.16%

Cash flow from Operating 0 0 0 0.00%

Funding of Replacement Reserves (542,400) (542,400) 0 0.00%

Beginning Balance 7/01/17 51,720,674 60,968,982 (9,248,308) -15.17%

Estimated Cash Flow 12/31/18 51,599,380 (17,991,521) 69,590,901 -386.80%

Projected Ending Balance 12/31/18 0 50,493,974 (50,493,974) -100.00%

Estimated Cash Flow 12/31/19 0 10,681,953 (10,681,953) -100.00%

Ending Reserves 12/31/19 63,009,470 61,175,927 1,833,543 3.00%

91 | P a g e

ALL PROGRAMS COMBINED STATEMENT OF REVENUES, EXPENSES AND RESERVES CY 2019 BUDGET

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92 | P a g e

HOUSING CHOICE VOUCHER (HCV) PROGRAM COMBINED STATEMENT OF REVENUES, EXPENSES AND RESERVES CY 2019 BUDGET

HG CHOICE VOUCHER PROGRAM COMBINED STATEMENT OF REVENUES, EXPENSES VES

HCV HCV Mainstream Veterans BUDGET FISCAL YEAR*Administration HAP 2019 2018

TOTAL TOTAL

REVENUES

Rental income (Dwelling & Non-Dwelling) - - - - - -

Federal Subsidies 3,321,780 30,922,623 334,572 7,043 34,586,018 33,369,061.00

Management Fees - - - - - -

Revenue Services (Fee for Service) - - - - - -

Other Income 14,219 - 44,002 58,221 9,720.00

Interest 4,800 - - - 4,800 -

Operating Program Transfers - - - - - -

-

TOTAL REVENUES 3,340,799 30,922,623 378,574 7,043 34,649,039 33,378,781

EXPENSES

Administrative 1,698,046 - - - 1,698,046 1,775,225.00

Central Office Fees 1,314,846 - 17,550 3,510 1,335,906 1,209,078.00

Resident Services - - - - - -

Utilities - - - - - -

Maintenance 3,500 - - - 3,500 22,480.00

Protective Services - - - - - -

General 56,500 - - - 56,500 45,163.00

Housing Assistance Payments (HAP) - 30,058,315 314,214 - 30,372,529 29,542,212.00

TOTAL EXPENSES 3,072,892 30,058,315 331,764 3,510 33,466,481 32,594,158

NET TOTALS 267,907 864,308 46,810 3,533 1,182,557 784,623

Additional Funds

Principal & Interest Payments - - - - - -

Transfer in/(out) - - - - - -

Capital Improvement - - - - - -

Cash flow from Operating - - - - - -

Beginning Balance 7/01/17 1,029,724 132,496 93,674 9,409 1,265,303 846,457

Estimated Cash Flow 12/31/18 1,430,200 161,194 93,674 9,409 1,694,477 320,059

Beginning Balance 01/01/19 - 1,166,516

Estimated Cash Flow 12/31/19 - 784,623

Ending Reserves 12/31/19 1,698,107$ 1,025,502$ 140,484$ 12,942$ 2,877,034$ 1,951,139$

93 | P a g e

PUBLIC HOUSING PROJECTS COMBINED STATEMENT OF REVENUES, EXPENSES AND RESERVES CY 2019 BUDGET

AMP 11 AMP 12 AMP 13 AMP 14 AMP 15 AMP 18 BUDGET Fiscal Year*

2019 2018

TOTAL TOTAL

REVENUESRental income (Dwelling & Non-Dwelling) 386,270 111,818 - 326,988 721,880 511,713 2,058,669 6,596,590 Federal Subsidies 1,221,667 442,489 - 322,070 261,707 509,414 2,757,347 10,160,208 Management Fees - - - - - - - - Revenue Services (Fee for Service) - - - - - - - - Other Income 11,716 2,855 - 25,057 7,042 10,823 57,493 331,969 Interest - - - - 5,906 - 5,906 1,418 Operating Program Transfers - - - - - - - 611,448

TOTAL REVENUES 1,619,654 557,162 - 674,115 996,534 $1,031,950 4,879,415 17,701,633

EXPENSESAdministrative 225,953 60,378 - 136,247 230,450 265,408 918,436 1,739,299 Central Office Fees 176,161 56,387 - 111,146 113,002 142,412 599,108 1,947,089 Resident Services 14,598 6,215 - 14,932 6,427 22,877 65,049 171,945 Utilities 156,420 4,329 - 145,026 131,701 210,105 647,582 2,907,881 Maintenance 203,394 55,237 - 88,376 149,872 241,038 737,916 2,433,406 Protective Service 13,145 3,424 - 6,431 9,578 14,643 47,222 410,945 General 154,267 84,501 - 43,023 32,506 146,781 461,078 944,267 Nonroutine Maintenance - - - - - - - - Capital outlays - - - - - - - -

TOTAL EXPENSES 943,937 270,472 - $545,181 673,536 $1,043,265 3,476,391 10,554,832

NET TOTALS 675,717 286,690 - $128,934 322,998 ($11,315) 1,403,024 7,146,801

Additional Funds - - - - - - -

Principal & Interest Payments - - - - - - - -

Transfer in/(out) - -

Capital Improvement (4,766,431) - - - - - (4,766,431) (20,096,405)

Cash flow from Operating - - - - - - - -

Funding of Replacement Reserves - - - - - - - -

Beginning Balance 7/01/17 8,427,177 2,259,461 3,755,590 1,679,329 9,648,507 25,770,063 22,486,319

Estimated Cash Flow 12/31/18 1,025,854 2,530,561 1,206,202 1,880,822 2,064,698 8,708,137 (3,118,397)

Ending Reserves 12/31/2019 1,701,571$ 2,817,251$ -$ 1,335,136$ 2,203,820$ 2,053,383$ 10,111,161$ 12,655,112$

94 | P a g e

INTERNAL SERVICE FUNDS COMBINED STATEMENT OF REVENUES, EXPENSES AND RESERVES CY 2019 BUDGET

Health InsuranceWorkers

Compensation PILOTUnemployment

Insurance BUDGET FISCAL YEAR*2019 2018

TOTAL TOTAL

REVENUESRental income (Dwelling & Non-Dwelling) - - - - - - Federal Subsidies - - - - - - Management Fees - - - - - - Revenue Services (Fee for Service) - - - - - - Other Income 3,251,003 191,907 92,403 124,384 3,659,697 3,383,978.00 Interest - - - - - - Operating Program Transfers - - - - - -

TOTAL REVENUES 3,251,003 191,907 92,403 124,384 3,659,697 3,383,978

EXPENSESAdministrative 333,084 90,000 1,204 - 424,288 384,643.00 Central Office Fees - - - - - - Resident Services - - 22,815 - 22,815 88,382.00 Utilities - - - - - - Maintenance - - - - - - Protective Services - - - - - - General 1,708,198 80,000 - 113,719 1,901,917 2,517,692.00 Nonroutine Maintenance - - - - - -

TOTAL EXPENSES 2,041,282 170,000 24,019 113,719 2,349,020 2,990,717

NET TOTALS 1,209,721 21,907 68,384 10,665 1,310,677 393,261

Additional Funds


Transfer in/(out) - - - - -


Cash flow from Operating - - - - - -

Funding of Replacement Reserves - - - - - -

Beginning Balance 7/01/17 - - 471,913 - 471,913 464,276

Estimated Cash Flow 12/31/18 - - 884,241 - 884,241 9,675

Beginning Balance 01/01/19 - - - - 473,951


Ending Reserves 12/31/19 1,209,721$ 21,907$ 952,625$ 10,665$ 2,194,918$ 867,212$

95 | P a g e

SECTION 8 NEW CONSTRUCTION COMBINED STATEMENT OF REVENUES, EXPENSES AND RESERVES CY 2019 BUDGET

Hervey Henderson Sitgraves Munoz BUDGET FISCAL YEAR*

2019 2018

TOTAL TOTAL

REVENUESRental income (Dwelling & Non-Dwelling) 304,798 293,739 182,383 439,833 1,220,753 1,183,249 Federal Subsidies 692,367 935,099 394,478 787,823 2,809,767 2,708,045 Management Fees - - - - - - Revenue Services (Fee for Service) - - - - - - Other Income 5,641.35 1,453.86 1,150.51 168.29 8,414.01 15,633 Interest 8,206.45 1,370.97 4,033 8,200 21,810.42 1,166 Operating Program Transfers - - - - - -

TOTAL REVENUES 1,011,012$ 1,231,664$ 582,044$ 1,236,024$ 4,060,744$ 3,908,093$

EXPENSESAdministrative 108,339.08 110,811.95 56,443.30 199,097.57 474,691.90 320,009 Central Office Fees 84,649.87 102,324.33 36,551.17 107,120.05 330,645.42 309,486 Resident Services - - - - - - Utilities 46,694.70 57,682.93 32,064.44 74,260.61 210,702.67 198,373 Maintenance 124,391.34 122,180.67 95,854.31 168,409.06 510,835.38 475,874 Protective Services 5,737 6,663 2,961 7,403 22,764 - General 29,929 33,931.70 15,547 43,743 123,150.70 108,985 Nonroutine Maintenance - - - - - -

TOTAL EXPENSES 399,740.98 433,594.58 239,421.21 600,033.28 1,672,790.06 1,412,727

NET TOTALS 611,271 798,069.05 342,623.26 635,990.36 2,387,954.16 2,495,366

Additional Funds


Transfer in/(out) (403,657.83) (468,763.93) (218,105.44) (520,848.81) (1,611,376) (2,727,899)


Funding of Replacement Reserves (62,000) (72,000) (33,500) (80,000) (247,500) (247,500)

Beginning Balance 7/01/17 1,090,793.18 1,266,727.56 589,380.19 1,407,475.07 4,354,376 12,250,071

Estimated Cash Flow 12/31/18 1,205,245 1,447,042 659,752 1,373,020 4,685,058 (7,926,636)

Beginning Balance 01/01/19 - 4,323,435

Estimated Cash Flow 12/.31/2019 - (480,033)

Ending Reserves 12/31/2019 1,816,516.33 2,245,110.69 1,002,375.00 2,009,010.63 7,073,012.65 3,843,402

96 | P a g e

CENTRAL OFFICE COST CENTERS (COCC) COMBINED STATEMENT OF REVENUES, EXPENSES AND RESERVES CY 2019 BUDGET

ExecutiveFinance/

ProcurementDevelopment and

RADHuman

Resources Print ShopInformation Technology YARDI BUDGET FISCAL YEAR*

2019 2018TOTAL TOTAL

REVENUESRental income (Dwelling & Non-Dwelling) - - - - - - - - - Federal Subsidies - - - - - - - - 611,448.00 Management Fees - 2,111,394 - - - - - 2,111,394 3,500,055.00 Revenue Services (Fee for Service) - 1,394,582 - - 133,869 109,080 449,855 2,087,385 220,613.00 Other Income 353,824 59,374 2,852,862 - - - - 3,266,060 5,744,285.00 Interest - 96,935 - - - - - 96,935 75,186.00 Operating Program Transfers - - - - - - - - -

- TOTAL REVENUES 353,824 3,662,286 2,852,862 - 133,869 109,080 449,855 7,561,775 10,151,587

EXPENSESAdministrative 1,784,070 1,736,831 2,576,359 619,993 143,209 930,787 573,929 8,365,178 10,623,428.00 Central Office Fees - - - - - - - - - Resident Services - - 270,395 - - - - 270,395 850,874.00 Utilities - - - - - - - - - Maintenance - - 6,107 - 6,400 - - 12,507 16,863.00 Protective Services - 400,000 - - - - - 400,000 - General - 7,994 - - - - 7,994 412,188.00 Nonroutine Maintenance - - - - - - - - - Capital outlays - - - - - - - -

TOTAL EXPENSES 1,784,070 2,144,825 2,852,862 619,993 149,609 930,787 573,929 9,056,075 11,903,353

NET TOTALS (1,430,246) 1,517,461 - (619,993) (15,741) (821,707) (124,074) (1,494,300) (1,751,766)

Additional Funds - -

Principal & Interest Payments - - - - - - - - -

Transfer in/(out) 1,430,246 (1,517,461) 0 619,993 15,741 695,807 124,074 1,368,400 2,000,000

Capital Improvement - - - - - 125,900 - 125,900 -

Cash flow from Operating - - - - - - - - -

Funding of Replacement Reserves - - - - - - - - -

Beginning Balance 7/01/17 - 430,458 - - - - - 430,458 7,094,525

Estimated Cash Flow 12/31/18 1,430,246 (1,119,645) - 619,993 15,741 821,707 124,074 1,892,116 (6,704,372)

Beginning Balance 01/01/19 - - 390,153


Ending Reserves 06/30/19 (0)$ 397,816$ -$ 0$ 0$ (0)$ (0)$ 397,816$ 638,388$

97 | P a g e

TIO COOPER COMBINED STATEMENT OF REVENUES, EXPENSES AND RESERVES

CY 2019 BUDGET

Tio Cooper BUDGET FISCAL YEAR*2019 2019 2018

TOTAL TOTAL

REVENUESRental income (Dwelling & Non-Dwelling) 116,064 116,064 138,103 Federal Subsidies 160,892 160,892 128,227 Management Fees - - - Revenue Services (Fee for Service) - - - Other Income 7,325 7,325 6,763 Interest 3,855 3,855 94 Operating Program Transfers - 642

TOTAL REVENUES 288,136 288,136 273,829

EXPENSESAdministrative 80,006 80,006 83,799 Central Office Fees - - - Resident Services - - - Utilities 48,502 48,502 45,196 Maintenance 93,157 93,157 46,785 Protective Services - - - General - 9,093 Nonroutine Maintenance - - -

TOTAL EXPENSES 221,665 221,665 184,873

NET TOTALS 66,471 66,471 88,956

Additional Funds

Principal & Interest Payments (47,705) (47,705) (55,221)

Transfer in/(out) - - -

Capital Improvement 86,500 86,500 -

Funding of Replacement Reserves (25,000) (25,000) (25,000)

Beginning Balance 7/01/17 516,097 516,097 412,998

Estimated Cash Flow 12/31/18 616,242 616,242 18,593

Beginning Balance 01/01/19 431,591


Ending Reserves 12/31/19 682,713 682,713 440,326

98 | P a g e

SIESTA GARDENS COMBINED STATEMENT OF REVENUES, EXPENSES AND RESERVES CY 2019 BUDGET

Siesta Gardens BUDGET FISCAL YEAR*2019 2018

TOTAL TOTAL

REVENUESRental income (Dwelling & Non-Dwelling) 15,483 15,483 125,316 Federal Subsidies 247,484 247,484 - Management Fees - - Revenue Services (Fee for Service) - - Other Income 877 877 - Interest - - Operating Program Transfers - - -

TOTAL REVENUES 263,844 263,844 125,316

EXPENSESAdministrative 16,267 16,267 15,999 Central Office Fees 12,812 12,812 9,422 Resident Services 1,219 1,219 - Utilities 24,834 24,834 26,967 Maintenance 25,484 25,484 9,150 Protective Services 8,797 8,797 - General 124,000 124,000 264 Nonroutine Maintenance - -

TOTAL EXPENSES 213,413 213,413 61,802

NET TOTALS 50,431 50,431 63,514

Additional Funds

Principal & Interest Payments (13,333) (13,333) (13,333)

Transfer in/(out) - - -

Capital Improvement - - -

Funding of Replacement Reserves (11,000) (11,000) (11,000)

Beginning Balance 7/01/17 253,425 253,425 -


Beginning Balance 01/01/19 -

Estimated Cash Flow 12/31/19 -

Ending Reserves 12/31/19 471,417 471,417 39,181

99 | P a g e

NON-DWELLING PROPERTIES COMBINED STATEMENT OF REVENUES, EXPENSES AND RESERVES CY 2019 BUDGET

5300 Paisano Yarbrough Montana Telles Flora Garcia BUDGET FISCAL YEAR*

2019 2018TOTAL TOTAL

REVENUESRental income (Dwelling & Non-Dwelling) - 67,287 290,434 - - 357,721 360,563 Federal Subsidies - - - - - - - Management Fees - - - - - - - Revenue Services (Fee for Service) - - - - - - - Other Income - - - 8,123 - 8,123 11,800 Interest - - - - - - - Operating Program Transfers - - - - - - -

TOTAL REVENUES - $67,287 $290,434 $8,123 $0 365,843 372,363

EXPENSESAdministrative - - 1,490 - 1,890 3,380 3,638 Central Office Fees - - - - - - - Resident Services - - - - - - Utilities 172,843 1,090 60,178 1,442 10,780 246,333 272,137 Maintenance 145,638 1,000 10,211 5,899 970 163,718 133,731 Protective Services - - - - - - - General 55,631 358 1,561 624 - 58,174 24,150 Nonroutine Maintenance - - - - - - -

TOTAL EXPENSES 374,111 $2,449 $73,439 7,964 13,641 471,605 433,656

NET TOTALS (374,111) 64,838 216,994 158 (13,641) (105,761) (61,293)

Additional Funds

Principal & Interest Payments - - - - - - -

Transfer in/(out) 374,111 (64,838) (216,994) (158) 13,641 105,761 381,293

Capital Improvement - - - - - - (320,000)

Funding of Replacement Reserves - - - - - - -

Beginning Balance 7/01/17 - - - - - - -

Estimated Cash Flow 12/31/18 - - - - -

Ending Reserves 12/31/19 -$ -$ -$ -$ -$ -$ -

100 | P a g e

BUSINESS ACTIVITIES COMBINED STATEMENT OF REVENUES, EXPENSES AND RESERVES CY 2019 BUDGET

Pais

ano

Hou

sing

R

edev

elop

men

t C

orpo

ratio

n

Hou

sing

Ac

quis

ition

Cor

pora

tion

Alam

ito

Publ

ic

Faci

litie

s C

orp

(APF

C)

Asse

t C

onso

lidat

ion

Man

agem

nt

Ente

rpris

es (A

CM

E)

Cha

i M

anor

Elvi

n Es

tate

sSa

laza

rG

onza

lez

Cis

nero

sK

enne

dy

(2 U

nits

)Si

tgra

ves

(3 u

nits

)

BU

DG

ETFI

SCAL

YEA

R*

(PH

RC

)(H

AC)

2019

2018

TOTA

LTO

TAL

REV

ENUE

SR

enta

l inco

me

(Dw

ellin

g &

Non-

Dw

ellin

g)-

-

-

56

7,77

5

90,5

43

1,91

1,12

6

28

6,79

0

10

7,01

5

22

,565

22,3

59

3,00

8,17

4

96

2,06

9

Fede

ral S

ubsi

dies

-

-

-

-

-

-

Man

agem

ent F

ees

-

-

-

-

-

-

D

evel

oper

Fee

s-

C

ompl

ianc

e Fe

e-

-

-

-

-

-

(30,

000)

O

ther

Inco

me

104,

403

20

0,71

5

-

3,57

5,49

7

27

,965

1,46

7

7,

555

1,

183

513

36

9

77

1

3,92

0,43

7

6,

080,

975

Inte

rest

12,2

99

502,

990

-

-

51

5,28

9

3,39

1,74

8

O

pera

ting

Prog

ram

Tra

nsfe

rs-

-

-

-

-

-

TOTA

L R

EVEN

UES

104,

403

21

3,01

4

50

2,99

0

3,

575,

497

595,

739

92

,010

1,

918,

681

287,

973

107,

529

22,9

34

23

,130

7,

443,

900

10,4

04,7

92

EXPE

NSES

Adm

inis

trativ

e 20

9,79

6

9,75

0

250

407

55,2

20

8,

698

182,

503

13

,887

5,

231

175

173

48

6,08

9

414,

744

C

entra

l Offi

ce F

ees

-

2,89

6

-

-

3,

729

8,

399

162,

537

24

,309

13

,804

78

0

2,

498

218,

951

55

,324

R

esid

ent S

ervic

es-

-

-

-

14

,744

225

30

,975

2,27

3

2,

801

-

-

51,0

18

12,1

50

Utilit

ies

26,7

38

-

-

-

51

,211

20,9

49

299,

046

2,

436

849

-

-

40

1,23

0

142,

836

M

aint

enan

ce-

12

,750

-

-

82,7

97

25

,239

23

5,26

4

34,0

64

9,84

8

2,

859

2,

214

405,

036

23

8,83

6

Prot

ectiv

e Se

rvic

es-

-

-

-

2,

776

69

4

13,4

04

1,

666

740

-

-

19

,280

-

G

ener

al1,

913,

325

515

-

-

13

,620

3,27

2

67

,138

48,9

75

6,34

5

54

8

14

8

2,05

3,88

6

5,

072,

923

Nonr

outin

e m

aint

enan

ce-

-

-

-

-

-

-

Cap

ital o

utla

ys-

-

-

-

-

-

-

-

TO

TAL

EXPE

NSES

2,14

9,85

9

25

,911

25

0

40

7

22

4,09

7

67,4

76

990,

868

12

7,61

0

39

,618

4,

362

5,

032

3,63

5,49

1

5,

936,

813

NET

TOTA

LS(2

,045

,456

)

18

7,10

3

50

2,74

0

3,

575,

090

371,

642

24

,534

92

7,81

3

160,

363

67,9

11

18,5

72

18

,098

3,

808,

410

4,46

7,97

9

Addi

tiona

l Fun

ds12

,869

,619

12,8

69,6

19

18,9

15,6

01

Prin

cipa

l & In

tere

st P

aym

ents

(160

,553

)

-

(8

0,00

0)

-

(2

40,5

53)

(587

,159

)

Tran

sfer

in/(o

ut)

-

-

-

-

-

34

6,60

6

Cap

ital Im

prov

emen

t-

-

-

-

-

-

-

Fu

ndin

g of

Rep

lace

men

t Res

erve

s-

-

-

(30,

000)

(7,5

00)

(3

7,50

0)

(37,

500)

Begi

nnin

g Ba

lanc

e 7/

01/1

75,

098,

587

1,63

1,95

9

78,6

33

421,

991

99

2,54

9

138,

455

37,2

20

37

,545

8,

436,

939

7,96

8,71

4

Estim

ated

Cas

h Fl

ow 1

2/31

/18

18,5

08,6

89

1,

733,

541

25

1,71

4

3,

645,

541

1,23

4,26

8

16

2,91

4

95

7,37

7

89,1

42

74,3

89

49,1

66

50

,523

26

,757

,264

29

,826

Begi

nnin

g Ba

lanc

e 01

/01/

19-

9,

317,

440

Estim

ated

Cas

h Fl

ow 1

2/31

/19

-

23,1

05,5

27.0

0

Endi

ng R

eser

ves

12/3

1/19

16

,463

,233

1,92

0,64

4

754,

454

7,22

0,63

1

1,

605,

910

187,

448

1,88

5,19

0

24

9,50

5

14

2,30

0

67

,738

68,6

21

30,5

65,6

74

32,4

22,9

67

BU

SIN

ESS

ACTI

VITI

ES

CO

MB

INED

STA

TEM

ENT

OF

REV

ENU

ES, E

XPEN

SES

AND

RES

ERVE

S20

19 B

UD

GET

REP

OR

T

101 | P a g e

EP HOME COMBINED STATEMENT OF REVENUES, EXPENSES AND RESERVES CY 2019 BUDGET

EP HOME BUDGET FISCAL YEAR*2019 2018

TOTAL TOTAL

REVENUESRental income (Dwelling & Non-Dwelling) - - Federal Subsidies - - Management Fees 2,938,834 2,938,834 2,227,719 Compliance Fee 937,680 937,680 529,440 Other Income 258,709 258,709 286,684 Interest - - - Operating Program Transfers - -

TOTAL REVENUES 4,135,223 4,135,223 3,043,843

EXPENSESAdministrative 2,363,745 2,363,745 2,463,850 Central Office Fees 969,815 969,815 735,147 Resident Services 174,412 174,412 65,034 Utilities - - - Maintenance 223,871 223,871 256,011 Protective Services - - - General 10,959 10,959 - Nonroutine maintenance - - - Capital outlays - - -

TOTAL EXPENSES 3,742,802 3,742,802 3,520,042

NET TOTALS 392,421 392,421 (476,199)

Additional Funds -

Principal & Interest Payments - - 346,606

Transfer in/(out) - -

Capital Improvement - - -

Funding of Replacement Reserves - - -


Estimated Cash Flow 12/31/18 925,542 925,542 (542,471)

Beginning Balance 01/01/19 - 208,438

Estimated Cash Flow 12/31/19 - (129,593)

Ending Reserves 12/31/19 1,317,963 1,317,963 78,845

102 | P a g e

BLENDED COMPONENT UNITS COMBINED STATEMENT OF REVENUES, EXPENSES AND RESERVES CY 2019 BUDGET

Affo

rdab

le Ho

using

Ve

ntur

es

Villa

Al

egre

Las

Casit

asSt

. Joh

n'sDe

sert

Sun

Lom

aland

Orch

ard

Mont

wood

Paisa

noAl

amito

Pl

ace

Wes

tern

Bu

rgun

dyW

este

rn

Caro

lina

Wes

tern

Cr

osby

Wes

tern

Re

ddW

este

rn

Yarb

roug

h

BUDG

ETEL

IMIN

ATIO

NSFIS

CAL Y

EAR*

(AHV

)20

1920

1920

18TO

TAL

TOTA

LTO

TAL

REVE

NUES

Renta

l inco

me (

Dwell

ing &

Non

-Dwe

lling)

-

1,847

,687

19

,913

79,47

2

139,7

65

11

5,144

32,48

7

64

,949

39

5,670

496,3

46

51

2,024

397,1

02

36

0,102

214,2

06

19

7,019

4,871

,885

1,8

84,94

4

Fede

ral S

ubsid

ies-

-

-

-

Mana

gem

ent F

ees

-

-

-

-

Com

plian

ce Fe

e-

-

-

-

30,00

0

Othe

r Inco

me

36,32

7

13

4,797

566

2,233

2,3

13

5,936

74

1

175

4,7

53

1,101

10

,032

2,7

63

1,8

68

1,650

6,2

85

211,5

38

10

7,755

Inter

est

-

-

-

-

Oper

ating

Pro

gram

Tran

sfers

-

-

-

-

-

TOTA

L REV

ENUE

S36

,327

1,982

,484

20

,479

81,70

5

142,0

77

12

1,080

33,22

8

65

,124

40

0,423

497,4

47

52

2,056

399,8

65

36

1,969

215,8

55

20

3,304

5,083

,424

-

2,0

22,69

9

EXPE

NSES

Adm

inistr

ative

10

,716

160,3

87

2,3

58

9,818

21

,654

10,07

5

2,712

15

,304

81

,209

83

,452

68

,229

59

,693

68

,889

42

,054

43

,200

67

9,750

249,3

55

Centr

al Of

fice F

ees

-

255,3

40

4,0

69

8,749

22

,174

11,13

5

3,254

-

-

-

63

,808

50

,542

47

,511

31

,374

30

,364

52

8,320

528,3

20

262,4

06

Resid

ent S

ervic

es-

-

75

180

-

48

-

1,126

-

-

96

0

1,1

20

84

0

45

0

48

0

5,2

79

3,236

Utilit

ies-

21

0,139

961

590

10,54

8

17

,174

4,2

03

673

26

,764

40

,101

43

,435

20

,572

14

,345

13

,979

19

,689

42

3,175

151,2

09

Maint

enan

ce-

34

5,047

3,823

27

,412

27

,444

27,93

0

3,075

5,6

80

35

,000

46

,077

69

,085

56

,238

58

,331

36

,809

41

,881

78

3,833

454,1

10

Prote

ctive

Ser

vices

-

17,07

3

23

1

-

1,2

96

648

185

-

-

-

-

-

-

-

-

19,43

3

-

Gene

ral

-

115,2

00

87

4

5,5

58

8,953

4,6

38

1,530

53

9

3,247

3,6

09

30,67

3

14,29

1

25,27

1

9,169

11

,879

23

5,430

97,31

7

Nonr

outin

e main

tenan

ce-

-

-

-

-

Capit

al ou

tlays

-

-

-

-

-

TOTA

L EXP

ENSE

S10

,716

1,103

,187

12

,392

52,30

7

92,06

8

71

,649

14

,959

23,32

1

146,2

20

17

3,239

276,1

90

20

2,456

215,1

87

13

3,835

147,4

93

2,6

75,21

9

528,3

20

1,217

,633

NET T

OTAL

S25

,611

879,2

97

8,0

87

29,39

8

50,00

9

49

,431

18

,269

41,80

4

254,2

03

32

4,208

245,8

66

19

7,409

146,7

82

82

,020

55

,811

2,4

08,20

5

(528

,320)

80

5,066

Addit

ional

Fund

s-

-

Princ

ipal &

Inter

est P

aym

ents

-

(6

03,20

0)

(7,20

0)

(8,40

0)

-

(195

,138)

(225

,818)

(99,7

88)

(71,4

88)

(7

3,815

)

(2

9,225

)

(2

9,559

)

(1

,343,6

31)

(922

,044)

Tran

sfer in

/(out)

-

-

-

-

-

-

Capit

al Im

prove

ment

-

5,2

00,00

0

-

-

-

5,2

00,00

0

-

Fu

nding

of R

eplac

emen

t Res

erve

s-

(221

,400)

-

(221

,400)

(2

21,40

0)

Begin

ning B

alanc

e 7/01

/1718

2,134

8,072

,211

30

,893

73,37

2

169,9

14

84

,957

27

,032

99,07

5

413,2

81

41

6,983

62,04

2

157,0

64

9,7

88,95

8

8,694

,713

Estim

ated C

ash F

low 12

/31/18

194,6

34

3,1

90,91

9

33,70

4

96

,230

24

9,122

110,9

65

39

,709

99,07

5

218,1

42

28

9,555

90,83

8

105,0

60

42

,740

98

,095

15

6,529

5,015

,317

(1

16,97

9)

Begin

ning B

alanc

e 01/0

1/19

-

8,5

77,73

4

Estim

ated C

ash F

low 12

/31/19

-

(5

28,32

0)

(338

,378)

Endin

g Res

erve

s 12/3

1/19

22

0,245

4,070

,216

41

,791

125,6

28

29

9,131

160,3

96

57

,978

140,8

79

472,3

45

61

3,763

336,7

04

30

2,469

189,5

22

18

0,115

212,3

40

7,4

23,52

2

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8,2

39,35

6

BLEN

DED

COM

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NTCO

MBIN

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TATE

MEN

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REV

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S, E

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SES

AND

RESE

RVES

2019

BUD

GET

REPO

RT

103 | P a g e

CY 2019 – REVENUE SUMMARY

HACEP HISTORICAL REVENUE Historic Rental Revenue

Source of Revenue HCV Public Housing Sec. 8 New Const. COCC- Cost Centers Tio Cooper Siesta

Gardens

Other

Activity EP Home

Elimination

Entries

CY 2019

Budget

Internal

Services Rental income (Dwelling & Non-

Dwelling)2,058,669 1,220,753 357,721 116,064 15,483 7,880,059 - - 11,648,749 -

Federal Subsidies 34,586,018 2,757,347 2,809,767 - 160,892 247,484 - - - 40,561,509 -

Management Fees - - - 2,111,394 - - 2,938,834 (3,995,557) 1,054,672 -

Revenue Services (Fee for Service) - - - 2,087,385 - - 937,680 (1,092,804) 1,932,261 -

Other Income 58,221 57,493 8,414 3,274,183 7,325 877 4,131,976 258,709 (3,989,654) 3,807,544 3,659,697

Interest 4,800 5,906 21,810 96,935 3,855 - 515,289 - (109,234) 539,362 -

Operating Program Transfers - -

TOTAL REVENUES 34,649,039 4,879,415 4,060,744 7,927,618 288,136 263,844 12,527,324 4,135,223 (9,187,249) 59,544,096 3,659,697

Summary FY 2014 FY 2015 FY 2016 FY 2017 FY 2018

Tenant Revenue 18,624,654 18,011,103 13,828,964 10,965,734 10,869,400

Interest Income 370,006 154,451 79,445 2,862,543 3,283,254

Fed. Financial Assistance 51,811,035 56,748,165 16,163,928 13,788,548 13,607,928

Other Revenues 30,096,724 27,474,058 5,030,815 15,588,883 14,911,841

Total 100,902,419 102,387,777 35,103,152 43,205,708 42,672,423

104 | P a g e

OPERATING EXPENSE BUDGET BY MAJOR PROGRAMS AND FUNDS

CY 2019 OPERATING EXPENSES SUMMARY

Expense Category COCCInternal

ServicesPublic Housing S8V S8NC Tio Cooper

Siesta

GardensEP Home

Other

ActivitiesTotal Operating

Expenses

Administrative Expense 8,368,558 424,288 918,436 1,698,046 474,692 80,006 16,267 2,363,745 1,165,838 15,509,877

Central Office Fees - 599,108 1,335,906 330,645 - 12,812 969,815 747,271 3,995,558

Resident Services 270,395 22,815 65,049 - - - 1,219 174,412 56,297 590,187

Utilities Expenses 246,333 - 647,582 - 210,703 48,502 24,834 - 824,404 2,002,358

Maintenance Expense 176,225 - 737,916 3,500 510,835 93,157 25,484 223,871 1,188,869 2,959,858

Protective Services 408,797 - 47,222 - 22,764 - 8,797 - 38,714 526,293

General Expense 7,994 1,901,917 461,078 56,500 123,151 - 124,000 10,959 2,289,316 4,974,915

Operating Transfers 1,368,400 - (4,766,431) - (1,611,376) - - - - (5,009,407)

Interest Expense - - - - - 47,705 13,333 - 1,584,184 1,645,222

Payment to Debt - - - - - - - - - -

Operating Replacement Reserves - - - - (247,500) (47,705) 5,500 - 258,900 (30,805)

Development & Capital Outlays - - - - - - - 5,200,000 5,200,000

TOTAL 10,846,703 2,349,020 (1,290,040) 3,093,952 (186,086) 221,665 232,246 3,742,802 13,353,793 32,364,056

105 | P a g e

HACEP HISTORICAL OPERATING EXPENSE BUDGET COMPARISON 2015-2019

HACEP Programs 2015 2016 2017 2018 2019 Variance 2018 vs. 2019

COCC General Administrative 20,343,221 18,096,913 14,413,004 11,882,156 9,056,075 (2,826,081)

LRH 23,765,641 18,694,128 10,382,180 10,554,832 3,476,391 (7,078,441)

Section 8 Vouchers 33,031,661 33,585,184 34,171,577 32,601,009 33,466,482 865,473

Section 8 New Construction 2,063,734 1,856,333 1,639,751 1,412,726 1,672,790 260,064

Tio Cooper 206,815 208,732 166,140 184,873 221,665 36,792

Siesta Gardens 87,545 89,346 64,764 61,802 213,413 151,611

Other Activities 10,399,367 7,536,434 6,554,008 10,578,820 12,874,135 2,295,316

Total 89,897,984 80,067,071 67,391,425 67,276,218 60,980,952 (6,295,266)

106 | P a g e

PUBLIC HOUSING PROPERTIES AMP DETAIL BUDGETS

Budget

FY 18

Budget

CY 19

FY-19 Vs. FY

18

THE HOUSING AUTHORITY OF THE CITY OF EL PASO, TEXAS

2019 BUDGET

AMP 011 CONSOLIDATED

Net Rental Income 1,074,310 381,743 (692,567)

Total Other Income 116,308 11,716 (104,593)

Excess Utilities 15,304 4,528 (10,776)

Non-Dwelling Rental - - -

Interest on Gen Fund Investment 218 - (218)

HAP Payment - - -

HUD PHA Subsidy 1,989,990 1,228,869 (761,121)

HUD Subsidy Recapture (298,499) (7,201) 291,297

Total Operating Income 1,691,492 1,221,667 (469,824)

Grand Total Operating Income 2,826,573 1,619,654 (1,206,920)

Total Admin Salaries 181,616 72,682 (108,934)

Total Administration Benefits 42,057 22,113 (19,944)

Legal Expense 4,992 151 (4,841)

Staff Training 1,200 363 (837)

Staff Training-Tuition Reimbursement 20,000 - (20,000)

Travel 1,200 - (1,200)

Auditing Fee 9,990 11,999 2,009

Total Admin Expenses 37,382 12,513 (24,869)

Total Other Admin Expenses 54,350 54,039 (311)

Other Admin Exp-Bookkeeping Fee 31,536 15,774 (15,762)

Other Admin Exp-Property Management Fee 211,459 144,787 (66,672)

Other Admin Exp-Asset Management Fee 52,560 15,600 (36,960)

SubTotal Management Fees 295,555 176,161 (119,395)

Total Administrative Expenses 634,523 318,871 (315,652)

Total Tenant Salaries 15,006 9,168 (5,838)

Total Tenant Services Benefits 5,770 1,386 (4,383)

Total Tenant Services Other Expenses 10,950 4,044 (6,906)

Total Tenant Services Expenses 31,738 14,598 (17,140)

Utilities - Water 54,157 27,446 (26,711)

Utilities - Sewer 39,765 27,974 (11,791)

Utilities - Electricity 155,803 70,286 (85,517)

Utilities - Gas 24,627 15,975 (8,652)

Other Utilities Expense 16,178 14,739 (1,439)

Storm Water Fees 400 - (400)

Total Utilities Expenses 290,530 156,420 (134,110)

107 | P a g e

Budget

FY 18

Budget

CY 19

FY-19 Vs. FY

18


2019 BUDGET


Total Maint-Labor 85,376 59,269 (26,107)

Total Maintenance Benefits 43,702 29,229 (14,473)

Total Materials 15,030 30,644 15,613

Maint. Contracts-Grounds/Landscaping 1,434 - (1,434)

Maint. Contracts-Electrical 32,168 1,791 (30,377)

Maint. Contracts-HVAC 23,005 10,662 (12,342)

Maint. Contracts-Pest Control 25,691 10,144 (15,547)

Maint. Contracts-Elevator 1,691 - (1,691)

Maint. Contracts-Unit Turnaround 42,231 36,416 (5,815)

Maint. Contracts-Plumbing 39,286 - (39,286)

Maint. Contracts-Janitorial - - -

Maint. Contracts-Trash Removal 19,998 10,989 (9,009)

Maint. Contracts-Other 2,857 14,249 11,392

Subtotal Contract Cost 188,361 84,252 (104,109)

Total Ordinary Maintenance & Operating Expenses 407,859 203,394 (204,466)

Total Protective Services 30,925 12,770 (18,154)

Total Protective Services Benefits 3,979 - (3,979)

Total Protective Services Other Expenses 715 374 (341)

Total Protective Services Other Expenses 35,619 13,145 (22,475)

Total Insurance 134,362 64,605 (69,757)

PILOT- Payments in Lieu of Taxes 72,803 18,638 (54,165)

Total Other Expenses 72,803 18,638 (54,165)

Total General Expenses 5,494 154,267 148,773

Total Operating Expenses 1,609,949 943,936 (666,013)

Net Income From Operations 1,216,624 675,717 (540,906) -

CFP Revenue Soft 30,385 - (30,385)

CFP Revenue Hard - - -

CFP Expenses Soft - - -

CFP Expenses Hard - - -

TOTALS 30,385 - (30,385)

Capital Improvement - (4,766,431) -

Debt Service - - -

Beginning Balance 7/01/17 3,439,088 8,427,177 4,988,089

Estimated Cash Flow 12/31/2019 1,247,009 1,025,854 (221,155)

Ending Reserves 12/31/2019 4,686,097 1,701,571 (2,984,525)

108 | P a g e


ROOSEVELT

Budget

FY 18

Budget

CY 19

FY-19 Vs. FY

18

2019 BUDGET

Net Rental Income 313,987 171,617 (142,369)




Interest on Gen Fund Investment 59 (59)

HAP Payment - - -

HUD PHA Subsidy 663,330 697,297 33,967

HUD Subsidy Recapture (99,500) 72,535 172,034

Total Operating Income 570,961 774,359 203,399

Grand Total Operating Income 926,321 951,241 24,920



Legal Expense 2,892 - (2,892)

Staff Training 400 - (400)


Travel - - -

Auditing Fee 3,330 3,118 (212)


Total Other Admin Expenses 19,202 23,576 4,373


Other Admin Exp-Property Management Fee 70,486 73,181 2,694

Other Admin Exp-Asset Management Fee 17,520 - (17,520)




Total Tenant Services Benefits 1,959 1,386 (573)



Utilities - Water 33,264 25,443 (7,821)

Utilities - Sewer 24,240 26,134 1,894


Utilities - Gas 8,068 15,975 7,907

Other Utilities Expense 10,256 10,012 (245)

Storm Water Fees - - -


109 | P a g e


ROOSEVELT

Budget

FY 18

Budget

CY 19

FY-19 Vs. FY

18

2019 BUDGET

Total Maint-Labor 28,630 28,293 (337)

Total Maintenance Benefits 12,202 15,608 3,406

Total Materials 3,693 17,654 13,962

Maint. Contracts-Grounds/Landscaping - - -




Maint. Contracts-Elevator - - -




Maint. Contracts-Trash Removal 10,998 10,457 (541)

Maint. Contracts-Other - 7,248 7,248




Total Protective Services Benefits 1,351 (1,351)

Total Protective Services Other Expenses - 210 210


Total Insurance 19,458 24,804 5,346




Total Operating Expenses 542,843 529,017 (13,826)

Net Income From Operations 383,478 422,224 38,746





TOTALS 10,128 - (10,128)

Capital Imoprovement (2,521,373)

Debt Service



Ending Reserves 12/31/2019 1,539,969 964,886 (575,083)

110 | P a g e

Budget

FY 18

Budget

CY 19

FY-19 Vs. FY

18


2019 BUDGET

430 SCATTERED SITES

Net Rental Income 92,621 95,311 2,690


Excess Utilities - - -



HAP Payment - - -

HUD PHA Subsidy 281,688 253,519 (28,169)


Total Operating Income 239,459 215,491 (23,968)

Grand Total Operating Income 348,744 314,739 (34,005)



Legal Expense 600 - (600)

Staff Training 400 363 (37)


Travel - - -

Auditing Fee 1,414 7,428 6,014

Total Admin Expenses 7,414 7,791 377


Other Admin Exp-Bookkeeping Fee 4,464 3,822 (642)


Other Admin Exp-Asset Management Fee 7,440 7,440 -

SubTotal Management Fees 41,837 45,483 3,646


Total Tenant Salaries 2,166 2,869 703

Total Tenant Services Benefits 832 - (832)

Total Tenant Services Other Expenses 1,550 884 (666)

Total Tenant Services Expenses 4,547 3,753 (794)

Utilities - Water 174 1,631 1,457

Utilities - Sewer 334 1,214 880

Utilities - Electricity 557 3,786 3,228

Utilities - Gas - - -

Other Utilities Expense 347 2,594 2,247


Total Utilities Expenses 1,412 9,224 7,812

111 | P a g e

Budget

FY 18

Budget

CY 19

FY-19 Vs. FY

18


2019 BUDGET

430 SCATTERED SITES

Total Maint-Labor 1,550 14,773 13,223

Total Maintenance Benefits 6,768 6,497 (271)



Maint. Contracts-Electrical 4,940 190 (4,749)

Maint. Contracts-HVAC 4,200 4,517 317



Maint. Contracts-Unit Turnaround 2,000 16,930 14,930



Maint. Contracts-Trash Removal - 316 316

Maint. Contracts-Other 714 4,347 3,633

Subtotal Contract Cost 27,592 29,055 1,463


Total Protective Services 1,442 2,869 1,427

Total Protective Services Benefits 574 (574)


Total Protective Services Other Expenses 2,016 2,873 858

Total Insurance 24,408 16,129 (8,279)

PILOT- Payments in Lieu of Taxes 9,121 9,621 500

Total Other Expenses 9,121 9,621 500

Total General Expenses 710 12,959 12,249

Total Operating Expenses 176,942 185,524 8,582

Net Income From Operations 171,802 129,215 (42,587)





TOTALS 4,301 - (4,301)

Capital Improvement - (1,070,720)

Debt Service

Beginning Balance 7/01/17 486,812 1,893,062 1,406,250


Ending Reserves 12/31/2019 662,914 359,660 (303,254)

112 | P a g e

Budget

FY 18

Budget

CY 19

FY-19 Vs. FY

18


2019 BUDGET

470 SCATTERED SITES


Total Other Income 4,596 494 (4,102)




HAP Payment - - -

HUD PHA Subsidy 81,780 73,602 (8,178)





Total Administration Benefits 1,691 682 (1,009)


Staff Training - - -

Staff Training-Tuition Reimbursement - - -

Travel - - -

Auditing Fee 411 385 (26)

Total Admin Expenses 911 385 (526)


Other Admin Exp-Bookkeeping Fee 1,296 1,588 292





Total Tenant Salaries 629 833 204


Total Tenant Services Other Expenses 450 257 (193)


Utilities - Water 165 22 (143)

Utilities - Sewer 164 79 (84)

Utilities - Electricity 46 22 (23)


Other Utilities Expense 242 621 379


Total Utilities Expenses 616 745 129

113 | P a g e

Budget

FY 18

Budget

CY 19

FY-19 Vs. FY

18


2019 BUDGET

470 SCATTERED SITES






Maint. Contracts-HVAC 4,200 4,517 317














Total Insurance 24,408 16,129 (8,279)










TOTALS 4,301 - (4,301)

Capital Improvement - (1,070,720)

Debt Service



Ending Reserves 12/31/2019 662,914 359,660 (303,254)

114 | P a g e

Budget

FY 18

Budget

CY 19

FY-19 Vs. FY

18


2019 BUDGET

570 SCATTERED SITES






HAP Payment - - -

HUD PHA Subsidy 227,168 204,451 (22,717)






Legal Expense 600 151 (449)



Travel - - -

Auditing Fee 1,140 1,069 (72)

Total Admin Expenses 1,740 1,220 (521)











Utilities - Water 96 350 253

Utilities - Sewer 220 546 326

Utilities - Electricity - - -


Other Utilities Expense 303 1,512 1,209


Total Utilities Expenses 619 2,408 1,789

115 | P a g e

Budget

FY 18

Budget

CY 19

FY-19 Vs. FY

18


2019 BUDGET

570 SCATTERED SITES

















Total Protective Services Benefits 463 - (463)

Total Protective Services Other Expenses - - -



PILOT- Payments in Lieu of Taxes 9,811 739 (9,073)

Total Other Expenses 9,811 739 (9,073)








TOTALS 3,469 - (3,469)

Capital Improvement - (863,484) -

Debt Service - - -



Ending Reserves 12/31/2019 557,600 347,385 (210,215)

116 | P a g e

Budget

FY 18

Budget

CY 19

FY-19 Vs. FY

18


2019 BUDGET

580 HENRY CISNEROS

Net Rental Income 98,730 - (98,730)

Total Other Income 4,013 - (4,013)




HAP Payment - - -

HUD PHA Subsidy 72,694 - (72,694)

HUD Subsidy Recapture (10,904) - 10,904

Total Operating Income 61,796 - (61,796)

Grand Total Operating Income 93,482 - (164,540)

Total Admin Salaries 4,707 - (4,707)

Total Administration Benefits 1,326 - (1,326)

Legal Expense - - -



Travel - - -

Auditing Fee 365 - (365)

Total Admin Expenses 365 - (365)

Total Other Admin Expenses 1,634 - (1,634)

Other Admin Exp-Bookkeeping Fee 1,152 - (1,152)

Other Admin Exp-Property Management Fee 7,725 - (7,725)


SubTotal Management Fees 10,797 - (10,797)

Total Administrative Expenses 21,593 - (18,829)

Total Tenant Salaries 267 - (267)


Total Tenant Services Other Expenses 400 - (400)

Total Tenant Services Expenses 787 - (774)

Utilities - Water - - -

Utilities - Sewer - - -

Utilities - Electricity - - -


Other Utilities Expense - - -

Storm Water Fees 400 - (400)

Total Utilities Expenses - - (400)

117 | P a g e

Budget

FY 18

Budget

CY 19

FY-19 Vs. FY

18


2019 BUDGET

580 HENRY CISNEROS

Total Maint-Labor 28,630 - (28,630)

Total Maintenance Benefits 12,202 - (12,202)

Total Materials 411 - (411)


Maint. Contracts-Electrical 2,075 - (2,075)

Maint. Contracts-HVAC 2,400 - (2,400)

Maint. Contracts-Pest Control 1,560 - (1,560)


Maint. Contracts-Unit Turnaround 1,503 - (1,503)



Maint. Contracts-Trash Removal - - -

Maint. Contracts-Other 714 - (714)

Subtotal Contract Cost 15,395 - (15,395)

Total Ordinary Maintenance & Operating Expenses 56,638 - (56,638)

Total Protective Services 641 - (641)


Total Protective Services Other Expenses 715 - (715)

Total Protective Services Other Expenses 1,430 - (1,430)

Total Insurance 2,546 - (2,546)

PILOT- Payments in Lieu of Taxes 2,767 - (2,767)

Total Other Expenses 2,767 - (2,767)

Total General Expenses - - -

Total Operating Expenses 82,782 - (82,782)

Net Income From Operations 10,700 - (10,700)





TOTALS 1,110 - (1,110)

Capital Improvement

Debt Service

Beginning Balance 7/01/17 125,629 - (125,629)

Estimated Cash Flow 12/31/2019 11,810 - (11,810)

Ending Reserves 12/31/2019 137,439 - (137,439)

118 | P a g e

Budget

FY 18

Budget

CY 19

FY-19 Vs. FY

18


2019 BUDGET







HAP Payment - - -

HUD PHA Subsidy 578,417 520,575 (57,842)









Travel - - -

Auditing Fee 1,688 1,580 (108)


Total Other Admin Expenses 30,541 13,111 (17,430)






Total Tenant Salaries 2,585 4,399 1,814

Total Tenant Services Benefits 993 761 (232)

Total Tenant Services Other Expenses 1,850 1,055 (795)

Total Tenant Services Expenses 5,428 6,215 787

Utilities - Water 120 8 8


Utilities - Electricity 1,111 2,542 2,542

Utilities - Gas 48 231 231




119 | P a g e

Budget

FY 18

Budget

CY 19

FY-19 Vs. FY

18


2019 BUDGET




Total Materials 831 3,545 3,545

Maint. Contracts-Grounds/Landscaping 800 - -

Maint. Contracts-Electrical 4,230 - -

Maint. Contracts-HVAC 5,700 407 407

Maint. Contracts-Pest Control 5,875 1,074 1,074



Maint. Contracts-Plumbing 2,500 - -





Total Ordinary Maintenance & Operating Expenses 53,761 55,237 55,237


Total Protective Services Benefits 733 - -


Total Protective Services Other Expenses 6,662 3,424 3,424

Total Insurance 18,412 14,871 14,871

PILOT- Payments in Lieu of Taxes 12,497 11,755 11,755

Total Other Expenses 12,497 11,755 11,755




CFP Revenue Soft - - -




TOTALS - - -

Reserve for Replacements (515,382)

Debt Service


Estimated Cash Flow 12/31/2019 535,547 2,530,561 2,530,561

Ending Reserves 12/31/2019 515,382 2,817,250 2,817,250

120 | P a g e

Budget

FY 18

Budget

CY 19 FY-19 Vs FY 18


2019 BUDGET

550 SCATTERED SITES






HAP Payment - - -

HUD PHA Subsidy 445,537 400,983 (44,554)






Legal Expense - - -



Travel - - -

Auditing Fee 1,300 1,217 (83)












Utilities - Water 120 - (120)


Utilities - Electricity 1,111 402 (708)

Utilities - Gas 48 231 183



Total Utilities Expenses 1,614 1,808 194

121 | P a g e

Budget

FY 18

Budget



2019 BUDGET

550 SCATTERED SITES






Maint. Contracts-HVAC 3,600 133 (3,467)

Maint. Contracts-Pest Control 4,882 892 (3,990)



Maint. Contracts-Plumbing 833 - (833)










Total Insurance 15,107 10,455 (4,653)

PILOT- Payments in Lieu of Taxes 10,221 9,721 (500)

Total Other Expenses 10,221 9,721 (500)








TOTALS - - -

Reserve for Replacements

Debt Service



Ending Reserves 12/31/2019 886,946 2,195,830 1,308,884

122 | P a g e

Budget

FY 18

Budget

CY 19

FY-19 Vs. FY

18


612 SCATTERED SITES

2019 BUDGET






HAP Payment - - -

HUD PHA Subsidy 54,715 49,244 (5,471)

HUD Subsidy Recapture (8,207) (7,387) 820



Total Admin Salaries 1,757 1,452 (305)

Total Administration Benefits 514 265 (249)




Travel - - -



Total Other Admin Expenses 311 1,129 818

Other Admin Exp-Bookkeeping Fee 504 408 (96)

Other Admin Exp-Property Management Fee 3,379 3,858 479

Other Admin Exp-Asset Management Fee 840 840 -

SubTotal Management Fees 4,723 5,106 383

Total Administrative Expenses 7,965 8,100 135


Total Tenant Services Benefits 94 340 246


Total Tenant Services Expenses 513 1,226 713

Utilities - Water - 8 8

Utilities - Sewer - 20 20

Utilities - Electricity - 2,015 2,015


Other Utilities Expense - 354 354


Total Utilities Expenses - 2,397 2,397

123 | P a g e

Budget

FY 18

Budget

CY 19

FY-19 Vs. FY

18


612 SCATTERED SITES

2019 BUDGET


Total Maintenance Benefits 652 734 82

Total Materials 164 1,087 922

Maint. Contracts-Grounds/Landscaping 800 - (800)

Maint. Contracts-Electrical - - -


Maint. Contracts-Pest Control 468 75 (393)


Maint. Contracts-Unit Turnaround 790 399 (391)




Maint. Contracts-Other 1,200 - (1,200)

Subtotal Contract Cost 5,291 651 (4,641)


Total Protective Services 561 324 (237)




Total Insurance 1,453 1,562 109

PILOT- Payments in Lieu of Taxes 1,276 973 (303)

Total Other Expenses 1,276 973 (303)








TOTALS - - -


Debt Service



Ending Reserves 12/31/2019 96,760 260,316 163,556

124 | P a g e

Budget

FY 18

Budget

CY 19

FY-19 Vs. FY

18


OASIS RANCH 634

2019 BUDGET






HAP Payment - - -

HUD PHA Subsidy 78,164 70,348 (7,816)




Total Admin Salaries 2,614 2,075 (540)





Travel - - -



Total Other Admin Expenses 2,370 2,420 50

Other Admin Exp-Bookkeeping Fee 720 513 (207)

Other Admin Exp-Property Management Fee 4,828 5,089 261


SubTotal Management Fees 6,748 6,802 54



Total Tenant Services Benefits 134 421 287


Total Tenant Services Expenses 733 1,539 805



Utilities - Electricity - 125 125




Total Utilities Expenses - 125 125

125 | P a g e

Budget

FY 18

Budget

CY 19

FY-19 Vs. FY

18


OASIS RANCH 634

2019 BUDGET


Total Maintenance Benefits 410 1,048 638

Total Materials 36 - (36)



Maint. Contracts-HVAC 900 97 (803)

Maint. Contracts-Pest Control 525 107 (418)


Maint. Contracts-Unit Turnaround 900 1,854 954





Subtotal Contract Cost 5,754 5,352 (402)
















TOTALS - - -


Debt Service



Ending Reserves 12/31/2019 132,874 361,104 228,230

126 | P a g e

Budget

FY 18

Budget

CY 19

FY-19 Vs. FY

18


2019 BUDGET


Net Rental Income 2,525,826 - (2,525,826)


Excess Utilities 38,523 - (38,523)

Non-Dwelling Rental 2,356.64 - (2,357)


HAP Payment - - -

HUD PHA Subsidy 3,911,412 - (3,911,412)


Total Operating Income 3,366,061 - (3,366,061)

Grand Total Operating Income 5,590,925 - (6,348,677)



Legal Expense 25,169 - (25,169)

Staff Training 29,600 - (29,600)


Travel - - -

Auditing Fee 20,185 - (20,185)

Total Admin Expenses 135,887 - (135,887)






Total Administrative Expenses 1,259,292 - (1,268,311)

Total Tenant Salaries 27,343 - (27,343)

Total Tenant Services Benefits 10,211 - (10,211)

Total Tenant Services Other Expenses 24,400 - (24,400)

Total Tenant Services Expenses 61,954 - (61,954)

Utilities - Water 237,086 - (237,086)

Utilities - Sewer 162,053 - (162,053)

Utilities - Electricity 444,838 - (444,838)

Utilities - Gas 183,195 - (183,195)

Other Utilities Expense 94,197 - (94,197)


Total Utilities Expenses 1,121,369 - (1,121,369)

127 | P a g e

Budget

FY 18

Budget

CY 19

FY-19 Vs. FY

18


2019 BUDGET




Total Materials 31,175 - (31,175)









Maint. Contracts-Trash Removal 100,867 - (100,867)




Total Protective Services 66,173 - (66,173)







Total General Expenses 42,896 - (42,896)

Total Operating Expenses 3,583,691 - (3,583,691)

Net Income From Operations 2,611,579 - (2,611,579)





TOTALS 66,892 - (66,892)

Reserve for Replacements - - -

Debt Service - - -

Beginning Balance 7/01/17 8,142,315 - (8,142,315)

Estimated Cash Flow 12/31/2019 2,611,579 - (2,611,579)

Ending Reserves 12/31/2019 10,753,894 - (10,753,894)

* All of the properties associated with this AMP have converted to RAD

128 | P a g e

Budget

FY 18

Budget

CY 19

FY-19 Vs. FY

18


2019 BUDGET

TAYS NORTH




Non-Dwelling Rental 1,178 - (1,178)


HAP Payment - - -

HUD PHA Subsidy 1,114,111 - (1,114,111)









Travel - - -

Auditing Fee 7,124 - (7,124)












Utilities - Water 61,009 - (61,009)

Utilities - Sewer 41,914 - (41,914)


Utilities - Gas 58,175 - (58,175)



Total Utilities Expenses 289,730 - (289,730)

129 | P a g e

Budget

FY 18

Budget

CY 19

FY-19 Vs. FY

18


2019 BUDGET

TAYS NORTH





Maint. Contracts-Electrical - - -

Maint. Contracts-HVAC - - -




Maint. Contracts-Plumbing - - -




















TOTALS 19,437 - (19,437)


Debt Service



Ending Reserves 12/31/2019 2,953,185 - (2,953,185)

*Property has converted to RAD

130 | P a g e

Budget

FY 18

Budget

CY 19

FY-19 Vs. FY

18


2019 BUDGET

PETER DEWETTER






HAP Payment - - -

HUD PHA Subsidy 396,752 - (396,752)



Grand Total Operating Income (59,513) - (698,240)






Travel - - -

Auditing Fee 2,258 - (2,258)














Utilities - Electricity 677 - (677)




Total Utilities Expenses 677 - (677)

131 | P a g e

Budget

FY 18

Budget

CY 19

FY-19 Vs. FY

18


2019 BUDGET

PETER DEWETTER













Maint. Contracts-Other - - -

















TOTALS 6,922 - (6,922)


Debt Service - - -



Ending Reserves 12/31/2019 1,010,938 - (1,010,938)


132 | P a g e

Budget

FY 18

Budget

CY 19

FY-19 Vs. FY

18


2019 BUDGET

VALLE VERDE






HAP Payment - - -

HUD PHA Subsidy 100,190 - (100,190)









Travel - - -



-


-













Utilities - Gas 3,620 - (3,620)




133 | P a g e

Budget

FY 18

Budget

CY 19

FY-19 Vs. FY

18


2019 BUDGET

VALLE VERDE






Maint. Contracts-HVAC 198 - (198)

Maint. Contracts-Pest Control 537 - (537)























TOTALS 1,495 - (1,495)


Debt Service - - -



Ending Reserves 12/31/2019 431,505 - (431,505)


134 | P a g e

Budget

FY 18

Budget

CY 19

FY-19 Vs. FY

18


2019 BUDGET

JOHN C. CRAMER






HAP Payment - - -

HUD PHA Subsidy 432,820 - (432,820)









Travel - - -

Auditing Fee 2,463 - (2,463)















Utilities - Gas 21,439 - (21,439)




135 | P a g e

Budget

FY 18

Budget

CY 19

FY-19 Vs. FY

18


2019 BUDGET

JOHN C. CRAMER






























TOTALS 6,457 - (6,457)


Debt Service - - -



Ending Reserves 12/31/2019 1,368,555 - (1,368,555)


136 | P a g e

Budget

FY 18

Budget

CY 19

FY-19 Vs. FY

18


2019 BUDGET

RUBEN SALAZAR PARK






HAP Payment - - -

HUD PHA Subsidy 1,146,172 - (1,146,172)






Legal Expense - - -



Travel - - -

Auditing Fee 3,664 - (3,664)















Utilities - Gas 56,408 - (56,408)




137 | P a g e

Budget

FY 18

Budget

CY 19

FY-19 Vs. FY

18


2019 BUDGET

RUBEN SALAZAR PARK






























TOTALS 19,996 - (19,996)


Debt Service - - -



Ending Reserves 12/31/2019 3,052,487 - (3,052,487)


138 | P a g e

Budget

FY 18

Budget

CY 19

FY-19 Vs. FY

18


2019 BUDGET

SHERMAN SOUTH




Non-Dwelling Rental 1,178.32 - (1,178)


HAP Payment - - -

HUD PHA Subsidy 721,367 - (721,367)









Travel - - -

Auditing Fee 4,105 - (4,105)















Utilities - Gas 43,553 - (43,553)




139 | P a g e

Budget

FY 18

Budget

CY 19

FY-19 Vs. FY

18


2019 BUDGET

SHERMAN SOUTH






























TOTALS 12,585 - (12,585)


Debt Service - - -



Ending Reserves 12/31/2019 1,937,224 - (1,937,224)


140 | P a g e

Budget

FY 18

Budget

CY 19

FY-19 Vs. FY

18


2019 BUDGET


Net Rental Income 1,606,362 326,988 (1,279,374)



Non-Dwelling Rental 18,362.70 6,655 (11,707)


HAP Payment - - -

HUD PHA Subsidy 2,215,587 378,906 (1,836,681)


Total Operating Income 1,906,157 328,725 (1,577,431)

Grand Total Operating Income 3,712,222 674,115 (3,049,742)



Legal Expense 1,930 17,437 15,507



Travel 200.00 - (200)

Auditing Fee 12,084 5,364 (6,719)

Total Admin Expenses 98,999 2,607 4,622








Total Tenant Services Benefits 4,951 3,104 (1,847)



Utilities - Water 129,282 27,002 (102,279)

Utilities - Sewer 66,446 16,002 (50,444)


Utilities - Gas 103,459 10,479 (92,980)




141 | P a g e

Budget

FY 18

Budget

CY 19

FY-19 Vs. FY

18


2019 BUDGET




Total Materials 14,370 6,921 (7,449)

Maint. Contracts-Grounds/Landscaping - 285 285




Maint. Contracts-Elevator 10,274 2,459 (7,816)


Maint. Contracts-Plumbing 60,663 133 (60,530)



Maint. Contracts-Other 9,768 6,784 (2,984)







Total Insurance 75,753 15,054 (60,699)




Total Operating Expenses 2,570,606 545,181 (2,025,425)

Net Income From Operations 1,141,615 128,934 (1,012,681)





TOTALS 48,711 - (48,711)


Debt Service - - -

Beginning Balance 7/01/17 7,223,655 3,755,590 (3,468,065)

Estimated Cash Flow 12/31/2019 1,191,373 1,206,202 14,829

Ending Reserves 12/31/2019 8,415,028 1,335,136 (7,079,892)

*Only 1 property has not converted to RAD

142 | P a g e

Budget

FY 18

Budget

CY 19

FY-19 Vs. FY

18


2019 BUDGET

EDWARD M. POOLEY




Non-Dwelling Rental 11,015 6,655 (4,360)


HAP Payment - - -

HUD PHA Subsidy 421,007 378,906 (42,101)





Total Administration Benefits 15,426 16,561 1,135




Travel 500 - (500)

Auditing Fee 3,170 2,607 (563)



Other Admin Exp-Bookkeeping Fee 10,008 12,260 2,252




Total Administrative Expenses 177,944 213,957 36,013


Total Tenant Services Benefits 1,865 3,104 1,239


Total Tenant Services Expenses 10,195 14,932 4,737

Utilities - Water 26,136 27,002 866

Utilities - Sewer 8,574 16,002 7,428


Utilities - Gas 10,544 10,479 (65)




143 | P a g e

Budget

FY 18

Budget

CY 19

FY-19 Vs. FY

18


2019 BUDGET

EDWARD M. POOLEY








Maint. Contracts-Elevator 2,317 2,459 141




Maint. Contracts-Trash Removal 3,666 4,548 882


















TOTALS 9,747 - (9,747)


Debt Service - - -



Ending Reserves 12/31/2019 1,213,049 1,335,136 122,087

144 | P a g e

Budget

FY 18

Budget

CY 19

FY-19 Vs. FY

18


2019 BUDGET

AMBROSIO GUILLEN




Non-Dwelling Rental - -


HAP Payment - - -

HUD PHA Subsidy 295,311 - (295,311)









Travel 500.00 - (500)

Auditing Fee 2,224 - (2,224)















Utilities - Gas 29,035 - (29,035)




145 | P a g e

Budget

FY 18

Budget

CY 19

FY-19 Vs. FY

18


2019 BUDGET

AMBROSIO GUILLEN

Total Maint-Labor - - -

Total Maintenance Benefits - - -




























TOTALS 5,877 - (5,877)


Debt Service - - -



Ending Reserves 12/31/2019 1,236,828 - (1,236,828)

* Property converted to RAD

146 | P a g e

Budget

FY 18

Budget

CY 19

FY-19 Vs. FY

18


2019 BUDGET

CHELSEA PLAZA






HAP Payment - - -

HUD PHA Subsidy 499,756 - (499,756)






Legal Expense 22,488 - (22,488)



Travel 500.00 - (500)

Auditing Fee 3,763 - (3,763)









Total Tenant Services Benefits - - -






Utilities - Gas 17,876 - (17,876)




147 | P a g e

Budget

FY 18

Budget

CY 19

FY-19 Vs. FY

18


2019 BUDGET

CHELSEA PLAZA
















Total Protective Services - - -

Total Protective Services Benefits - - -













TOTALS 9,946 - (9,946)


Debt Service - - -



Ending Reserves 12/31/2019 2,805,270 - (2,805,270)


148 | P a g e

Budget

FY 18

Budget

CY 19

FY-19 Vs. FY

18


2019 BUDGET

SUN PLAZA



Excess Utilities 0 - (0)



HAP Payment - - -

HUD PHA Subsidy 999,513 - (999,513)









Travel 500 - (500)

Auditing Fee 3,763 - (3,763)















Utilities - Gas 46,005 - (46,005)




149 | P a g e

Budget

FY 18

Budget

CY 19

FY-19 Vs. FY

18


2019 BUDGET

SUN PLAZA






























TOTALS 23,140 - (23,140)


Debt Service - - -



Ending Reserves 12/31/2019 3,159,881 - (3,159,881)


150 | P a g e

Budget

FY 18

Budget



2019 BUDGET







HAP Payment - 497,140 497,140

HUD PHA Subsidy 798,836 307,890 (490,946)



Grand Total Operating Income 1,278,960 996,535 (282,425)






Travel - - -

Auditing Fee 5,184 10,104 4,919








Total Tenant Salaries 11,077 584 (10,492)

Total Tenant Services Benefits 3,275 263 (3,013)

Total Tenant Services Other Expenses 5,758 5,580 (178)


Utilities - Water 31,160 30,527 (634)

Utilities - Sewer 21,889 25,412 3,523


Utilities - Gas 38,809 21,518 (17,291)

Other Utilities Expense 12,765 13,777 1,012



151 | P a g e

Budget

FY 18

Budget



2019 BUDGET




Total Materials 10,684 25,060 14,376







Maint. Contracts-Plumbing 32,678 5,000 (27,678)


Maint. Contracts-Trash Removal 11,519 11,582 63

Maint. Contracts-Other 16,626 15,851 (775)







Total Insurance 74,967 44,735 (30,232)










TOTALS 12,706 - (12,706)


Debt Service - - -

Beginning Balance 7/01/17 1,884,152 1,679,329 (204,823)


Ending Reserves 12/31/2019 2,278,856 2,203,821 (75,035)

152 | P a g e

Budget

FY 18

Budget



2019 BUDGET

SCATTERED SITES 160






HAP Payment - - -

HUD PHA Subsidy 190,750 307,890 117,140

HUD Subsidy Recapture (23,386) (46,183) (22,797)








Travel - - -

Auditing Fee 1,238 904 (334)

Total Admin Expenses 1,779 904 (875)

Total Other Admin Expenses 4,478 (2,453) (6,931)






Total Tenant Salaries 2,627 584 (2,043)

Total Tenant Services Benefits 782 263 (519)



Utilities - Water 124 66 (58)


Utilities - Electricity 19 94 75

Utilities - Gas - 236 236

Other Utilities Expense 543 1,372 829

Storm Water Fees - -


153 | P a g e

Budget

FY 18

Budget



2019 BUDGET

SCATTERED SITES 160






Maint. Contracts-HVAC 1,758 1,679 (78)



Maint. Contracts-Unit Turnaround 567 13,539 12,972















Total Operating Expenses 159,517 159,976 459






TOTALS 2,876 - (2,876)


Debt Service - - -



Ending Reserves 12/31/2019 549,532 682,835 133,303

154 | P a g e

Budget

FY 18

Budget



2019 BUDGET

ALEX GONZALEZ MEMORIAL






HAP Payment - - -

HUD PHA Subsidy 124,854 - (124,854)









Travel - - -













Utilities - Water 275 - (275)

Utilities - Sewer 188 - (188)


Utilities - Gas 72 - (72)

Other Utilities Expense 376 - (376)



155 | P a g e

Budget

FY 18

Budget



2019 BUDGET

ALEX GONZALEZ MEMORIAL









Maint. Contracts-Unit Turnaround 382 - (382)





















TOTALS 1,882 - (1,882)


Debt Service - - -



Ending Reserves 12/31/2019 335,518 - (335,518)

156 | P a g e

Budget

FY 18

Budget

CY 19

FY-19 Vs FY

18


2019 BUDGET

MARTIN LUTHER KING






HAP Payment - 497,140 497,140

HUD PHA Subsidy 483,232 - (483,232)









Travel - - -

Auditing Fee 3,136 9,200 6,064










Total Tenant Services Other Expenses 3,483 4,796 1,312


Utilities - Water 30,762 30,461 (301)

Utilities - Sewer 21,474 25,138 3,664


Utilities - Gas 38,737 21,282 (17,455)

Other Utilities Expense 11,845 12,405 559



157 | P a g e

Budget

FY 18

Budget

CY 19

FY-19 Vs FY

18


2019 BUDGET

MARTIN LUTHER KING







Maint. Contracts-Pest Control 4,730 3,963 (767)



Maint. Contracts-Plumbing 19,768 5,000 (14,768)


Maint. Contracts-Trash Removal 11,519 11,502 (17)

Maint. Contracts-Other 9,816 8,905 (911)

















TOTALS 7,948 - (7,948)


Debt Service - - -

Beginning Balance 7/01/17 1,178,564 1,233,130 54,566


Ending Reserves 12/31/2019 1,393,806 1,520,986 127,180

158 | P a g e

Budget FY 18 Budget CY 19 FY-19 Vs FY 18



2019 BUDGET






HAP Payment - - -

HUD PHA Subsidy 1,833,142 599,311 (1,233,831)


Total Operating Income 1,579,619 515,930 (1,063,689)

Grand Total Operating Income 2,711,600 1,031,950 (1,679,649)



Legal Expense 5,576 10 (5,567)



Travel - - -

Auditing Fee 10,925 4,245 (6,680)









Total Tenant Services Benefits 4,924 4,517 (407)



Utilities - Water 144,846 56,835 (88,011)

Utilities - Sewer 95,596 45,070 (50,527)


Utilities - Gas 78,694 26,401 (52,293)




159 | P a g e




2019 BUDGET



Total Materials 16,334 26,489 10,155

Maint. Contracts-Grounds/Landscaping - 1,899 1,899
















Total Insurance 81,191 48,815 (32,376)




Total Operating Expenses 1,746,598 1,043,265 (703,333)

Net Income From Operations 965,000 (11,315) (976,315)





TOTALS 34,377 - (34,377)


Debt Service - - -



Ending Reserves 12/31/2019 5,152,005 2,053,383 (3,098,622)

160 | P a g e



2019 BUDGET

JUAN C. MACHUCA



Excess Utilities 1,786 2,019 233



HAP Payment - - -

HUD PHA Subsidy 233,448 247,991 14,543

HUD Subsidy Recapture (35,017) (37,199) (2,182)



Total Admin Salaries 13,161 29,814 16,653





Travel - - -

Auditing Fee 1,391 2,311 920



Other Admin Exp-Bookkeeping Fee 4,392 4,452 60


Other Admin Exp-Asset Management Fee 7,320 8,640 1,320




Total Tenant Services Benefits 818 1,832 1,014


Total Tenant Services Expenses 4,596 9,284 4,688

Utilities - Water 10,503 27,364 16,861

Utilities - Sewer 7,205 19,711 12,506

Utilities - Electricity 24,943 37,942 12,999

Utilities - Gas 4,230 9,332 5,101

Other Utilities Expense 3,862 7,540 3,678



161 | P a g e



2019 BUDGET

JUAN C. MACHUCA




Maint. Contracts-Grounds/Landscaping - 1,497 1,497





Maint. Contracts-Unit Turnaround 6,685 5,943 (743)


Maint. Contracts-Janitorial - -





Total Protective Services 4,887 5,645 758














TOTALS 3,841 - (3,841)


Debt Service - - -



Ending Reserves 12/31/2019 1,029,867 733,477 (296,390)

162 | P a g e



2019 BUDGET

JACKIE ROBSINSON MEMORIAL






HAP Payment - - -

HUD PHA Subsidy 704,171 316,877 (387,294)



Grand Total Operating Income 1,078,149 618,075 (460,074)

Total Admin Salaries 33,148 63,191 30,042


Legal Expense 1,692 10 (1,683)



Travel - - -

Auditing Fee 4,197 1,743 (2,453)







Total Administrative Expenses 192,234 192,501 266


Total Tenant Services Benefits 2,469 2,685 216



Utilities - Water 58,551 29,438 (29,113)

Utilities - Sewer 35,725 25,274 (10,451)


Utilities - Gas 41,607 17,070 (24,537)




163 | P a g e



2019 BUDGET

JACKIE ROBSINSON MEMORIAL




















Total Insurance 30,997 21,252 (9,745)










TOTALS 13,515 - (13,515)


Debt Service - - -


Estimated Cash Flow 12/31/2019 422,221 1,202,229 780,008

Ending Reserves 12/31/2019 1,848,904 1,269,624 (579,280)

164 | P a g e



2019 BUDGET

RUBIN HEIGHTS


-


-




HAP Payment - - -

HUD PHA Subsidy 38,270 34,443 (3,827)

HUD Subsidy Recapture (5,741) (5,166) 575



Total Admin Salaries 435 2,075 1,640

-


-




Travel - - -



Total Other Admin Expenses 1,836 1,250 (586)

Other Admin Exp-Bookkeeping Fee 720 900 180








Total Tenant Services Expenses 743 143 (600)

Utilities - Water - 33 33

Utilities - Sewer - 84 84

Utilities - Electricity - 689 689


Other Utilities Expense 392 275 (116)

Storm Water Fees - -


165 | P a g e



2019 BUDGET

RUBIN HEIGHTS

Total Maint-Labor - 2,383 2,383

Total Maintenance Benefits - 1,048 1,048



Maint. Contracts-Electrical 900 - (900)

Maint. Contracts-HVAC 900 208 (692)


Maint. Contracts-Elevator - -

Maint. Contracts-Unit Turnaround 939 2,034 1,094




Maint. Contracts-Other 600 869 269













CFP Revenue Soft 567 - (567)




TOTALS 567 - (567)


Debt Service - - -

-



Ending Reserves 12/31/2019 112,294 50,282 (62,012)

166 | P a g e



2019 BUDGET

HILLARY J. SANDOVAL JR.






HAP Payment - - -

HUD PHA Subsidy 857,252 - (857,252)









Travel - - -

Auditing Fee 5,109 - (5,109)















Utilities - Gas 32,857 - (32,857)




167 | P a g e



2019 BUDGET

HILLARY J. SANDOVAL JR.






























TOTALS 16,454 - (16,454)


Debt Service - - -



Ending Reserves 12/31/2019 2,160,940 - (2,160,940)

*Property Converted to RAD

168 | P a g e

GLOSSARY

ABA Annual Budget Authority (for HAP expenses in the HCV program) - is how much money Congress allows a federal agency to commit to spend; outlays are how much money actually flows out of the federal Treasury in a given year.

ACA Annual Community Assessment - the process of identifying the strengths, assets, needs and challenges of a specified community. Assets refer to the skills, talents and abilities of individuals as well as the resources that local institutions contribute to the community.

ACOP Admissions and Continued Occupancy Policy - a guide designed to assist public housing authority staff and HUD with a range of issues related to public housing occupancy, from application for admission and rent calculations through ongoing occupancy to lease termination.

AFFH Affirmatively Furthering Fair Housing - taking meaningful actions, in addition to combating discrimination, that overcome patterns of segregation and foster inclusive communities free from barriers that restrict access to opportunity based on protected characteristics.

AFR Applicable Federal Rate - is the minimum interest rate that the Internal Revenue Service (IRS) allows for private loans. Each month the IRS publishes a set of interest rates that the agency considers the minimum market rate for loans. Any interest rate that is less than the AFR would have tax implications.

AFS Audited Financial Statements - means a provider's financial statement that has been prepared in accordance with generally accepted accounting principles and that has been audited by an independent certified public accountant in accordance with generally accepted auditing standards and includes notes to the financial statement that state whether or not the community is in compliance with its reserve requirements.

AHAP Affordable Housing Assistance Program - An agreement to Enter into a Housing Assistance Payments Contract.

AHS American Housing Survey - is a statistical survey funded by HUD and conducted by the U.S. Census Bureau.

AMP Asset Management Project – a grouping of properties by the housing authority in a manner that HUD can track, monitor and fund

APP Annual Performance Plan - describes the annual performance targets which USDA intends to work toward within the fiscal year.

169 | P a g e

APPS Active Partners Performance System - allows HUD's business partners to manage their company and individual participation information and submit their APPS Previous Participation Certification (APPC) (formerly known as form 2530) requests directly to HUD for processing via the Internet.

APR Annual Performance Report - Annual Progress Report for homeless programs.

ARRA American Recovery and Reinvestment Act - is an economic stimulus package enacted by the 111th United States Congress and signed into law by President Barack Obama on February 17, 2009.

BLI Budget Line Item (in LOCCS) - a budget with grouped cost centers or departments as individual financial statement items.

BLS Bureau of Labor Statistics, U.S. Department of Labor - It is the principal fact-finding agency for the U.S. government in the broad field of labor economics and statistics and serves as a principal agency of the U.S. Federal Statistical System.

BOSS Budget Outlay Support System - with respect to any fiscal year, expenditures and net lending of funds under budget authority during such year.

CBD Commerce Business Daily - a newspaper, published by the Department of Commerce, that lists all procurement notices and awards by the federal government.

CDBG Community Development Block Grant (CPD program) - provides annual grants on a formula basis to states, cities, and counties to develop viable urban communities by providing decent housing and a suitable living environment, and by expanding economic opportunities, principally for low- and moderate-income persons.

CEF Community Empowerment Fund; administered by CPD - offers savings opportunities, financial education, and assertive support to individuals who are seeking employment, housing, and financial freedom.

CFCF Capital Fund Education and Community Training Facilities - provides capital funding to Public Housing Agencies (PHAs) for the construction, rehabilitation, or purchase of facilities to provide early childhood education, adult education, and job training programs for public housing residents.

CFFP Capital Fund Financing Program - to acquire capital or fixed assets, such as land, buildings, and machinery, businesses usually raise funds through capital funding programs to purchase these assets. The funds raised, ie. Debt incurred is repaid through annual CFP funds.

CFO Chief Financial Officer (HUD Office of) - provides leadership in instituting financial integrity, fiscal responsibility, and accountability.

CFP Capital Fund Program – HUD provided financial assistance in the form of grants to public housing agencies (PHAs) to carry out capital and management activities

170 | P a g e

including those listed in Section 9(d)(1) of the United States Housing Act of 1937 (1937 Act). Allocated to the housing authority through the annual appropriation bills approved by Congress.

CFR Code of Federal Regulations - is the codification of the general and permanent rules and regulations (sometimes called administrative law) published in the Federal Register by the executive departments and agencies of the federal government of the United States.

CHAS Comprehensive Housing Affordability Strategy - this data helps to determine the number of households in need of housing assistance.

CIO Chief Information Officer (HUD Office of) - the mission of the Office of the Chief Information Officer (OCIO) is to enable delivery of HUD programs, services, and management processes by providing high-quality information, technology solutions and services.

CIR Congressional and Intergovernmental Relations (HUD Office of) - the Assistant Secretary for Congressional and Intergovernmental Relations is the principal advisor to the Secretary, Deputy Secretary and senior staff with respect to legislative affairs, Congressional relations, and policy matters affecting Federal, state and local governments, and public and private interest groups.

CLPHA The Council of Large Public Housing Authorities - is a national nonprofit organization that aims to preserve and improve public and affordable housing through advocacy, research, policy analysis and education.

CMHI Cooperative Management Housing Insurance Fund (one of four FHA funds) - insures mortgages for multifamily cooperatives.

CO Contracting Officer - is a person who can bind the Federal Government of the United States to a contract that is greater than the Micro-Purchase threshold. This is limited to the scope of authority delegated to the Contracting Officer by the head of the agency. Like many housing authorities, at HACEP, the Contracting Officer is the head of the authority.

COCC Central Office Cost Center - a cost center is often a department within a company. The manager and employees of a cost center are responsible for its costs but are not directly responsible for revenues or investment decisions. In HACEP, the COCC is primarily departments such as Finance, Procurement, IT, etc.

CPD Community Planning and Development (HUD Office of) - seeks to develop viable communities by promoting integrated approaches that provide decent housing, a suitable living environment, and expand economic opportunities for low and moderate income persons.

DAP Development Application Processing - FHA for Multifamily Housing.

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DARTS Departmental Accounts Receivable Tracking/Collection System.

DCR Debt Coverage Ratio - Net Operating Income divided by Hard debt

DGMS Departmental Grants Management System - manages both programmatic and financial grant data and eliminates opportunities for duplication of effort.

DOFA Date of Full Availability - the last day of the month in which substantially all (95 percent or more) of the units in a housing development are available for occupancy.

DOT Declaration of Trust - is an important document in which trustees are appointed to hold property for beneficiaries.

DUNS Dun and Bradstreet Numbering System.

EA Environmental Assessment - analysis to determine effect of a project on the environment. May lead to an Environmental Impact Statement (EIS).

EDA Economic Development Administration (part of Dept. of Commerce) - is an agency in the United States Department of Commerce that provides grants and technical assistance to economically distressed communities in order to generate new employment, help retain existing jobs and stimulate industrial and commercial growth through a variety of investment programs.

EDI Economic Development Initiative CPD program - provides grants to local governments to enhance both the security of loans guaranteed through the Section 108 Loan Program and the feasibility of the economic development and revitalization projects they finance.

EDSC - Elderly/Disabled Service Coordinator - to assist the elderly, people with disabilities and low-income families to supportive services and other community resources.

EDSS Economic Development and Supportive Services CPD program - seeks to develop viable communities by promoting integrated approaches that provide decent housing, a suitable living environment, and expand economic opportunities for low and moderate income persons.

EEO Equal Employment Opportunity - is a government policy that requires that employers do not discriminate against employees and job applicants based upon certain characteristics, such as age, race, color, creed, sex, religion, and disability.

EGI Effective Gross Income - GPR - Vacancy Loss + Other Income

EHOP Equal Housing Opportunity Plan - Plan developed by Public Housing Agencies for use in Sec. 8 and Moderate Rehabilitation programs.

EIS Executive Information System – a segment of the IT software designed for senior management for analysis.

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EIV Enterprise Income Verification - provides a comprehensive on-line system for the determination and verification of various resident information and income that PHAs use in determining rental subsidy.

EMAD Economic and Market Analysis Division - HUD economists in prepare analyses and forecasts of economic and housing market conditions in the certain regions.

EMM Executive Management Meeting - a meeting of either your general membership or the board called at a time other than your regular meetings and usually to discuss a specific topic.

EPA U.S. Environmental Protection Agency - the Environmental Protection Agency is an independent agency of the United States federal government for environmental protection.

EPACS Executive Performance Accountability and Communication System – a HUD requirement for performance plans for Senior Executives

EPC Energy Performance Contracting - is an innovative financing technique that uses cost savings from reduced energy consumption to repay the cost of installing energy conservation measures.

EPIC Energy Performance Information Center - is a program designed to collect summary capital fund grant activity and energy efficiency measures.

EPPES Employee Performance Planning and Evaluation System. Used to measure/rate employee job performance.

ESG Emergency Shelter Grants (CPD program) - is designed to assist homeless individuals and families, and subpopulations within this group, such as victims of domestic violence, youth, people with mental illness, families with children and veterans.

EVS Employee Viewpoint Survey - measures employees' perceptions of whether, and to what extent, conditions characteristic of successful organizations are present in their agencies.

EZ Empowerment Zone - are economically distressed communities designated by government for aid. This aid is intended primarily to lift the communities out of poverty by stimulating business enterprise and creating jobs.

F47 - see MFIS.

FA Financial Analyst - a person that examines financial data and uses their findings to help the agency make business decisions.

FAR Federal Acquisition Regulation - is the primary regulation for use by all Federal Executive agencies in their acquisition of supplies and services with appropriated funds.

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FASPHA Financial Assessment Subsystem for Public Housing Authorities - participants are required to submit annual electronic financial statement data to HUD.

FBCO Faith-Based and Community Organizations - is an organization whose values are based on faith and/or beliefs, which has a mission based on social values of the particular faith, and which most often draws its activists (leaders, staff, volunteers) from a particular faith group.

FDS Financial Data Schedule - was created in order to standardize the financial information reported by Public Housing Authorities to HUD's Real Estate Assessment Center (REAC).

FEMA Federal Emergency Management Administration - supports citizens and emergency personnel to build, sustain, and improve the nation's capability to prepare for, protect against, respond to, recover from, and mitigate all hazards.

FFS Federal Financial System - is a web-based, workflow management and financial transaction system that provides core financial management functions for U.S. Immigration and Customs Enforcement (ICE) and five other components within the Department of Homeland Security.

FFY Federal Fiscal Year - the fiscal year is usually denoted by the calendar year in which it ends. For ex: operating on a fiscal calendar of October–September, United States federal government spending incurred on 14 November 2019 would belong to fiscal year 2020

FHA Federal Housing Administration (HUD Office of Housing) - is the largest mortgage insurer in the world with an active insurance portfolio of over $1.3 trillion.

FHAP Fair Housing Assistance Program (FHEO program) - program assisting state/local government with processing fair housing complaints.

FHEO Fair Housing and Equal Opportunity (HUD Office of) - was created by the Fair Housing Act of 1968 which sought to end discrimination in the sale, rental, and financing of housing based on race, color, religion, and national origin.

FHIP Fair Housing Initiatives Program (FHEO program) - program to assist state/local government, community groups and housing resource boards to combat housing discrimination.

FHLBB Federal Home Loan Bank Board - the Federal Home Loan Bank Board was a board created in 1932 that oversaw the Federal Home Loan Banks also created by the act.

FLRA Federal Labor Relations Authority - is an independent agency of the United States government that governs labor relations between the federal government and its employees.

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FMC Financial Management Center (Section 8; under PIH) - coordinates and manages funding and financial management activities for the housing voucher and moderate rehabilitation programs.

FMD Financial Management Division (Public Housing) – a HUD department to deliver high quality financial management services to external and internal customers, to provide exceptional accountability for program funds, to resolve material weaknesses in the financial administration of the Section 8 housing assistance programs, and to facilitate the successful provision of decent, safe and sanitary housing to eligible program recipients through prudent and timely administration of funds.

FMR Fair Market Rent (maximum rent for Section 8 rental assistance) - Fair Market Rents are established by HUD each year for the Section 8 Program.

FSS Family Self-Sufficiency program - helps families increase their earnings and build financial capability and assets. The FSS program serves: families in the Housing Choice Voucher program, families living in public housing, and families living in HUD-assisted multifamily developments.

FTE Full-time equivalent - an employee who works 2080 hours of paid employment.

FUP Family Unification Program - promotes family unification by providing Housing Choice Vouchers (HCVs) to families for whom the lack of adequate housing is the primary factor in separation, or the threat of imminent separation, of children from their families and to youths 18 to 21 years old who left foster care at age 16 or older and lack adequate housing.

FWG Field Working Group – group of individuals working in the field.

FY Fiscal year - a fiscal year is essentially a customized 12-month period used for accounting purposes.

GI General Insurance Fund - one of four FHA insurance funds.

GIMS Grants Interface Management System - is a program or application that assists fund-seeking organizations such as non-profits and universities in administering and automating the grant process.

GIS Geographic Information System - is a system designed to capture, store, manipulate, analyze, manage, and present all types of geographical data.

GMC Grants Management Center (under Public and Indian Housing) - is an internal service organization within the Office of Public and Indian Housing (PIH) that supports various HUD Program Offices, and individual programs, such as Housing Choice Voucher Family Self-Sufficiency, Public Housing Family Self-Sufficiency, ROSS Service Coordinators, and the Choice Neighborhoods Initiative.

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GMP Grants Management Process - it is a combination of a definition of a time frame and the activities that take place during the time frame.

GMS Grants Management System - is responsible for guidance and policies related to competitive grant programs.

GPR Gross Potential Rent - Number of Housing Units x Monthly Rent x 12 (months/annual)

GSA General Services Administration - an independent agency of the United States government, was established in 1949 to help manage and support the basic functioning of federal agencies.

GTM Government Technical Monitor (for contracts) - to assist the Contracting Officer's Representative (COR) in monitoring a contractor's performance.

GSE Government Sponsored Enterprises (Fannie Mae and Freddie Mac) - is to enhance the flow of credit to targeted sectors of the economy and to make those segments of the capital market more efficient and transparent, and to reduce the risk to investors and other suppliers of capital.

GTR Government Technical Representative (for contracts) - play a critical role in ensuring that contractors meet the commitment of their contracts.

HAMP Home Affordable Modification Program - to offer homeowners who are at risk of foreclosure reduced monthly mortgage payments that are affordable and sustainable over the long-term.

HAP Housing Assistance Payments - to provide rental assistance to very low income individuals and families enabling them to live in affordable decent, safe and sanitary housing. The HAP payments are made to the resident’s landlord.

HCV Housing Choice Voucher - allow very low-income families to choose and lease or purchase safe, decent, and affordable privately-owned rental housing. Funds are allocated to the housing authority through the annual appropriation bills approved by Congress.

HERA Housing and Economic Recovery Act - was created to address the subprime mortgage crisis of 2008. The Housing and Economic Recovery Act allowed the Federal Housing Administration (FHA) to guarantee up to $300 billion in new 30-year fixed rate mortgages for subprime borrowers.

HFA Housing Finance Agency - state or local agencies responsible for financing and preserving low/mod housing within a state.

HHS Health and Human Services (U.S. Department of) - the Department of Health and Human Services protects the health of all Americans and provides essential human services.

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HIFMIP HUD Integrated Financial Management Improvement Project - HUD’s effort to modernize its financial management system.

HOPE VI Program for Revitalization of Severely Distressed Public Housing (PIH program) - meant to revitalize the worst public housing projects in the United States into mixed-income developments.

HUD U.S. Department of Housing and Urban Development - mission is to create strong, sustainable, inclusive communities and quality affordable homes for all.

HUDCAPS - HUD’s Central Accounting Processing System.

HUD-VASH HUD-Veterans Affairs Supportive Housing program - combines Housing Choice Voucher (HCV) rental assistance for homeless Veterans with case management and clinical services provided by the Department of Veterans Affairs (VA).

HUSM HUD Utility Schedule Model - provide a consistent basis for calculating utility schedules.

IBS Integrated Business System - process of bringing together the component sub-systems into one system (an aggregation of subsystems cooperating so that the system is able to deliver the overarching functionality) and ensuring that the subsystems function together as a system.

IDA Individual Development Account - is an asset building tool designed to enable low-income families to save towards a targeted amount usually used for building assets in the form of home ownership, post-secondary education and small business ownership.

IG Inspector General (HUD Office of) - detecting and preventing fraud, waste, and abuse and promoting the effectiveness and efficiency of government operations.

IPA Independent Public Accountant - any of the firms of public accountants (or their survivors in any merger therewith) currently referred to as the "Big Four" or any other firm of public accountants of nationally recognized stature which is (i) independent (as such term is defined in the rules and regulations promulgated by the Securities and Exchange Commission under the Exchange Act) from the Person the financial statements of which are being reported on, (ii) selected by such Person and (iii) reasonably acceptable to the Required Lenders.

IPA Intergovernmental Personnel Act - Permits temporary assignment of employees to public and private sector.

IPIA Improper Payments Information Act - of 2002 (IPIA), Public Law No. 107-300, as amended, requires agencies to annually review their programs and activities to identify those susceptible to significant improper payments, as well as to conduct payment recapture audit programs.

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IRR Internal Rate of Return - is a metric used in capital budgeting to estimate the profitability of potential investments.

IT Information Technology - is the use of computers to store, retrieve, transmit, and manipulate data, or information, often in the context of a business or other enterprise.

ITIM Information Technology Investment Management - identifies critical processes for successful information technology (IT) investment and organizes these processes into a framework of increasingly mature stages.

LIHTC Low Income Housing Tax Credit - is a dollar-for-dollar tax credit in the United States for affordable housing investments.

LM Loan Management - is the process by which a company (mortgage bank, servicing firm, etc.) collects interest, principal, and escrow payments from a borrower.

LMR Labor Management Relations - refers to interactions between employees, as represented by labor unions, and their employers.

MBA Mortgage Bankers Association - is the United States national association representing all facets of the real estate finance industry.

MBE Minority Business Enterprise - is an American designation for businesses which are at least 51% owned, operated and controlled on a daily basis by one or more (in combination) American citizens of the following ethnic minority and/or gender (e.g. woman-owned) and/or military veteran classifications.

MBS Mortgage-Backed Securities (for secondary market issued by Ginnie Mae) - are bonds

secured by home and other real estate loans.

MDDR Multifamily Delinquency and Default Reporting - is a Web-based application designed to provide lenders, the ability to submit delinquencies, defaults, and elections to assign.

MFHRHIIP Multifamily Housing Rental Housing Integrity Improvement Project - is a priority Secretarial initiative designed to reduce income and rent errors and improper payments in the administration of both public housing and Section 8 programs.

MFIS Multifamily Insurance System (also known as F47 insured loans) - to ensure the ongoing availability of capital for the acquisition, rehabilitation, development and refinancing of all apartment properties.

MHA Making Home Affordable - program to help struggling homeowners avoid foreclosure.

MIS Management Information System - is the study of people, technology, organizations, and the relationships among them.

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MLIS Mortgage Lending Information System – system that consistently provides timely title searches, valuation reports, and settlement services to lending institutions.

M&M Management and Marketing - Single family program to manage and market acquired properties using contractors.

MOU Memorandum of Understanding - is a nonbinding agreement between two or more parties outlining the terms and details of an understanding, including each parties' requirements and responsibilities.

MTCS Multifamily Tenant Characteristics System - one of three databases where tenant and rental housing subsidy data may be found.

MTW Moving to Work - providing select PHAs exemptions from many existing public housing and voucher rules and more flexibility with how they use their Federal funds.

NAHB National Association of Home Builders - is one of the largest trade associations in the United States.

NAHRO National Association of Housing and Redevelopment Officials - is the leading housing and community development advocate for the provision of adequate and affordable housing and strong, viable communities for all Americans—particularly those with low- and moderate-incomes.

NAPA National Academy of Public Administration - helps government leaders solve their most critical management challenges and to improve governance and advance the field of public administration.

NAR National Association of Realtors - is a North American trade association for those who work in the real estate industry.

NAREB National Association of Real Estate Brokers - it the oldest minority trade association in America.

NCHS National Center for Health Statistics - is a principal agency of the U.S. Federal Statistical System which provides statistical information to guide actions and policies to improve the health of the American people.

NCSBCS National Conference of States on Building Codes and Standards - the objective of this grant was to conduct a seminar for state building code officials and state energy officials to discuss various issues.

NFC National Finance Center - is a federal government agency that provides human resources, financial and administrative services for agencies of the United States federal government.

NFFE National Federation of Federal Employees - one of two employee unions in HUD.

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NGMS Next Generation Management System - is a business-driven investment whose aim is to enhance HUD's affordable housing (AH) program management, improve end user satisfaction, streamline complex business processes, and integrate disparate Information Technology (IT) systems into a common, modernized platform.

NOFA Notice of Funding Availability (HUD) - is a notice published each year in Grants.gov for HUD’s Discretionary Funding Programs. This notice describes the type of funding available on a competitive basis and provides a contact where an application may be submitted, typically up to 60 to 90 days from the date of NOFA publication.

NOI Net Operating Income - Effective Gross Income - Operating Expenses

OFFP Operating Fund Financing Program - Public Housing Authorities (PHAs) are permitted to borrow private capital to finance development and modernization of public housing.

OGC Office of General Counsel (HUD) - its mission is to assure decent and affordable housing, enabling all Americans to achieve homeownership, providing resources for communities to build strong neighborhoods, preventing homelessness, and enforcing fair housing laws.

OLR Office of Labor Relations (HUD) - now OLSE (see next).

OLSE Office of Labor Standards and Enforcement (HUD) - is responsible for the administration and enforcement of Federal labor standards provisions in HUD programs.

OMB Office of Management and Budget (U.S.) - most prominent function is to produce the President's Budget, but OMB also measures the quality of agency programs, policies, and procedures to see if they comply with the president's policies and coordinates inter-agency policy initiatives.

PACS Performance Accountability and Communication System (HUD) - for managers and supervisors.

PAS Program Accounting System – accounting procedures and is a uniform automated accounting system for the grant, subsidy, and loan programs of the Department. It is also used to process a limited number of loan transactions.

PASS Physical Inspection Assessment Subsystem - coordinates the procurement of UPCS inspections for Public Housing Agencies/Authorities (PHAs) and Office of Multifamily Housing (MFH) assisted and insured properties.

PBV Project-Based Voucher Program - is one part of the HCV program. It helps pay for rent in privately owned rental housing, but only in specific privately owned buildings or units.

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PEL Project Expense Level - is the HUD model-generated estimate of the cost to operate each project, exclusive of taxes, utilities, and certain add-ons.

PFS Pre-Foreclosure sale (REO program) - a HUD home is a 1-to-4 unit residential property acquired by HUD as a result of a foreclosure action on an FHA-insured mortgage. HUD becomes the property owner and offers it for sale to recover the loss on the foreclosure claim.

PHA Public Housing Authority - housing authorities have a strong relationship with local, state, and federal governments, they are actually independent agencies.

PHMAP Public Housing Management Assessment Program (under PIH) - provide an objective system of measuring PHA performance using standard criteria for all PHAs that will enable the Department and PHAs to compare performance of PHAs.

PHRS Public Housing Revitalization Specialist - develops and implements intervention strategy designed to bring troubled PHAs to a passing score within one year of designation

PIC Public and Indian Housing Information Center (HUD) - is responsible for maintaining and gathering data about all of PIH's inventories of HAs, Developments, Buildings, Units, HA Officials, HUD Offices and Field Staff and IMS/PIC users.

PIH Public and Indian Housing (HUD Office of) - ensures safe, decent, and affordable housing, creates opportunities for residents' self-sufficiency and economic independence, and assures the fiscal integrity of all program participants.

PILOT Payment in Lieu of Taxes - a payment in lieu of taxes is a payment made to compensate a government for some or all of the property tax revenue lost due to tax exempt ownership or use of real property.

PUM Per Unit Month - formula income amount (PUM-Income) is calculated by dividing the Total Net Tenant Rental Revenue by number of units and by Unit Months Leased (UMLs). PUM-Expense is calculated by dividing the Total Operating Expenses by number of units and Unit Months Leased (UMLs).

PV Present Value - the value in the present of a sum of money, in contrast to some future value it will have when it has been invested at compound interest.

QHWRA Quality Housing and Work Responsibility Act - was signed by President Clinton on October 21, 1998 and is found in Title V of HUD's FY1999 appropriations act.

QMR (HUD) Quality Management Review program - oversight of field operations.

RAD Rental Assistance Demonstration - is a federal housing program that was enacted as part of the Consolidated and Further Continuing Appropriations Act, 2012, and is administered by the U.S. Department of Housing & Urban Development (HUD).

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RAMPS Recovery Act Management and Performance System - was created by HUD to provide an efficient way to provide the environmental compliance information required by ARRA.

REAC Real Estate Assessment Center (HUD) - to provide and promote the effective use of accurate, timely and reliable information assessing the condition of HUD's portfolio; to provide information to help ensure safe, decent and affordable housing; and to restore the public trust by identifying fraud, abuse and waste of HUD resources.

REAP Resource Estimation and Allocation Process (under Chief Financial Officer) - defines workload and estimates resources.

REMIC Real Estate Mortgage Investment Conduit (under Ginnie Mae) - an entity that holds a fixed pool of mortgages and issues multiple classes of interests in itself to investors.

REMS Real Estate Management System (under REAC) - the business of managing land and buildings, including activities such as keeping buildings in good condition and organizing the renting of property.

RHF Replacement Housing Factor - PHA may receive RHF grants for public housing units demolished or sold for a period of up to five years.

RHIIP Rental Housing Integrity Improvement Project - is a priority Secretarial initiative designed to reduce income and rent errors and improper payments in the administration of both public housing and Section 8 programs.

RFP Request for Proposals - used to solicit proposals for contracts under the negotiated procurement method.

RFQ Request for Quotations - used to solicit price quotes under the simplified acquisition procurement method.

RIF Reduction in Force - action by management to reduce or adjust an agency’s workforce.

ROI Return on Investment - Cash Flow divided by Initial Investment.

ROSS Resident Opportunity and Supportive Services - funding under this program is made only to PHAs to hire a program coordinator who links residents with training opportunities, job placement organizations, and local employers.

S+C Shelter Plus Care - provides a variety of permanent housing choices, accompanied by a range of supportive services funded through other sources.

SAC Special Applications Center (under PIH) - provides a variety of permanent housing choices, accompanied by a range of supportive services funded through other sources.

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SAVE Systematic Alien Verification for Entitlements Program - provides secure and efficient verification service for federal, state and local benefit-granting agencies to verify a benefit applicant’s immigration status or naturalized/derived citizenship.

SCS2 Strong Cities, Strong Communities - seeks to strengthen neighborhoods, towns, cities, and regions around the country by enhancing the capacity of local governments to develop and execute their economic vision and strategies, providing necessary technical assistance and access to federal agency expertise, and creating new public and private sector partnerships.

Section 3 - Obligates PHAs to afford resident access to jobs and contracting opportunities created by federal funding.

Section 8 Housing Choice Voucher Program (Housing and Community Development Act of 1974) - the housing choice voucher program is the federal government's major program for assisting very low-income families, the elderly, and the disabled to afford decent, safe, and sanitary housing in the private market. Since housing assistance is provided on behalf of the family or individual, participants are able to find their own housing, including single-family homes, townhouses and apartments.

SEMAP Section 8 Management Assessment Program - measures the performance of the public housing agencies (PHAs) that administer the Housing Choice Voucher program in 14 key areas. SEMAP helps HUD target monitoring and assistance to PHA programs that need the most improvement.

SES Senior Executive Service - Personnel/Payroll system for executives (Civil Service Act of 1978).

SHP Supportive Housing Program - is designed to promote the development of supportive housing and supportive services, including innovative approaches to assist homeless persons in the transition from homelessness, and to promote the provision of supportive housing to homeless persons to enable them to live as independently as possible.

SLR Subsidy Layering Review - review of Section 8 project-based voucher housing assistance payment contracts and mixed-finance developments, including those with or without low-income housing tax credits (LIHTCs).

SRI Special Risk Insurance Fund (of FHA) - loan guarantee programs operating under the Federal Housing Administration’s General Insurance and Special Risk Insurance (GI/SRI) Fund encourage critical mortgage financing opportunities that strengthen communities across the country.

SRO Single-Room Occupancy - Mortgage insurance under Section 221(d) for single room apartments.

STARS System for tracking calls requesting computer-related assistance.

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START Neighborhood Networks Strategic Tracking and Reporting Tool - was created in 2001 to assist Neighborhood Networks center staff with the electronic preparation and submission to HUD of a business plan. The business plan provides the opportunity for center staff to define a center’s mission, organization, management, and operation.

TAC Technical Assistance Center (REAC Helpdesk) - provides multi-channel contact center services that support the HUD mission in order to create strong, sustainable, inclusive communities and quality affordable homes for all.

TANF Temporary Assistance to Needy Families - program provides grant funds to states and territories to provide families with financial assistance and related support services. State-administered programs may include childcare assistance, job preparation, and work assistance.

TARC Troubled Agency Recovery Center (under PIH) - center to assist with Troubled Agency’s and their recovery.

TASS Tenant Assessment Subsystem - to provide program administrators with the required SS/SSI information via a secure Internet facility.

TDAT Tribal Directory Assessment Tool - was developed by the Office of Environment and Energy (OEE) to help users identify tribes that may have an interest in the location of a HUD-assisted project, and provide tribal contact information to assist users with initiating Section 106 consultation under the National Historic Preservation Act (54 U.S.C. § 300101 et seq.)

TDHEs Tribally Designated Housing Entities - as sovereign nations, tribes are the direct recipients of federal funding from the United States Department of Housing and Urban Development. Each tribe designates an entity to administer its housing programs with these federal dollars.

TLI Targeted Lending Initiative (of Ginnie Mae) - in 1997, Ginnie Mae implemented the Targeted Lending Initiative (TLI) for the purpose of incenting lending in certain underserved communities through a reduced guaranty fee.

TRACS Tenant Rental Assistance Certification System - is a HUD computer system developed to help improve financial controls over assisted housing programs by automating manual procedures and incorporating automated controls.

UEL Utilities Expense Level - the UEL for each PHA is based on its consumption for each utility, the applicable rates for each utility, and an applicable inflation factor. The UEL for a given funding period is the product of the utility rate multiplied by the payable consumption level multiplied by the inflation factor. The UEL is expressed in terms of PUM costs.

UFAS Uniform Federal Accessibility Standards - uniform standards for the design, construction and alteration of buildings so that physically handicapped persons will

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have ready access to and use of them in accordance with the Architectural Barriers Act, 42 U.S.C. 4151-4157.

UMA Unit Months Available – months available in a given year to house an individual or family.

UML Unit Months Leased - is a measure of each month any one unit is leased.

UPCS Uniform Physical Condition Standards - set of standards used by inspectors working for HUD and REAC, to assess the physical condition of public housing units and housing units which are insured by or assisted under various programs of HUD.

USDA U.S. Department of Agriculture - is the U.S. federal executive department responsible for developing and executing federal laws related to farming, forestry, and food.

USHA United States Housing Act of 1937 - provided for subsidies to be paid from the U.S. government to local public housing agencies (LHAs) to improve living conditions for low-income families.

VA Veterans Affairs (U.S. Department of) - is a federal Cabinet-level agency that provides near-comprehensive healthcare services to eligible military veterans at VA medical centers and outpatient clinics located throughout the country; several non-healthcare benefits including disability compensation, vocational rehabilitation, education assistance, home loans, and life insurance; and provides burial and memorial benefits to eligible veterans and family members at 135 national cemeteries.

VASH HUD-Veterans Affairs Supportive Housing Program - combines the Department of Housing and Urban Development (HUD) Housing Choice Voucher (HCV) rental assistance for homeless veterans and their families with case management and clinical services provided by the Department of Veterans Affairs (VA) at its medical centers and in the community.

VCA Voluntary Compliance Agreement - conciliation agreement signed by a complainant to resolve a complaint.

VMS Voucher Management System - a central system to monitor and manage the Public Housing Agency (PHAs) use of vouchers.

WASS Web Access Security Subsystem - HUD’s security web based system.

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2019 operating budget final - hacepbudget presents the operating budget for hacep’s programs,...

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