HomeMy WebLinkAbout10/16/2025 - HOUSING CATALYST - AGENDA - Regular MeetingJoint Meeting of the Board of Commissioners of Housing Catalyst and Villages,
Ltd - October 16, 2025 Agenda
October 16, 2025 8:00am - 9:30am MDT
In person: Housing Catalyst, 1715 W Mountain Ave, Fort Collins, CO / ZOOM:
https://us06web.zoom.us/j/85448061473?pwd=0OYKbb0r6uLHjR16YB2Q7eS75LKPZw.1
I.Call to Order (8:00-8:05)
The Board is convening in two capacities:
As the governing board of Housing Catalyst and Villages, Ltd.
a.Mindful Moment
b.Citizen Input
II.Approval of Minutes from September 18, 2025 Board Meeting
HC BOC meeting 9.18.2025.pdf
III.Action Items
a.Adoption of FY2026 Budgets
HC-VIL BOC Memo - FY2026 Budget Adoption m2025.10 v1.0.pdf
HC FY2026 Budget Outcomes Report v1.0-FINAL .pdf
HC FY2026 Budget Assumptions Report v2.0-FINAL.pdf
HUD Form 52574 - FY2026 Budget m2025.10 .pdf
HC-VIL JOINT RES NO. HC-VIL-2025-10-01 Operating Budget Adoption for FY 2025 m2025.10.pdf
IV.Committee Updates
a.Development Committee Update
Development 5-Year Project Plans (Oct 2025).pdf
Development Milestones (Oct 2025).pdf
8:00am
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b.Audit & Finance Committee Update
AFC - 2025.10 Board Report FINAL_v1 .pdf
EXHIBIT D AFC - FY2025 Self Assessment Checklist Group - Final.pdf
c.Advocacy Committee Update
d.Other Updates
V.Discussion Items
VI.Legislative and Advocacy Updates
a.Colorado Legislative Update
b.National Legislative Update
c.Fort Collins City Council Legislative and Business Update
d.Larimer County Commission Update
VII.Legal Issues
VIII.Other Business
IX.Good News
X.Upcoming Events
Development Committee - November 3, 2025
Audit & Finance Committee - November 10, 2025
Advocacy Committee - October 21, 2025
Housing Catalyst Board of Commissioners - November 20, 2025
Wellington Community Housing Board of Directors - November 6, 2025
XI.Adjournment
XII.For Your Information
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9:30amEND
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Board of Commissioners of
Housing Catalyst
SEPTEMBE R 18 , 2025
Attendees:
Commissioners: Lizette Mill-Chair, Anne Nelsen-Vice Chair, Jennifer Wagner, Karen Dunbar,
(Virtual): Emily Francis
Staff: Julie Brewen, Tonya Frammolino, Michele Christensen, Angelika Lintner, Lisa Hernandez,
Traci McGraw, Brandi Adams, Meg Stewart, Isela Orozco, Attorney Kate Belford, (Virtual): Steven
Chapman, Carly Johanssen, Rachel Gaisford
I. CALL TO O RDER
Chairperson Mill called the meeting to order at 8:01 a.m.
a. Mindful Moment
The group engaged in a Mindful Moment as the meeting was called to order.
b. Citizen Input
There was no Citizen input.
II. APPROVAL O F MINUTES F RO M AUGUST 2 1 , 202 5
BOARD ME ETIN G
Commissioner Karen Dunbar moved to approve the minutes of the August 21,
2025 meeting. Commissioner Jennifer Wagner seconded, and the motion was
passed unanimously.
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III. ACTIO N IT EMS
a. Administrative Plan Update and 2026 Annual Agency Plan and Moving to Work
Supplement
Director of Rental Assistance Programs Traci McGraw, along with Rental
Assistance Program Manager Brandi Adams and JumpStart Coordinator Meg
Stewart, presented the Administrative Plan Update, 2026 Annual Agency Plan,
and Moving to Work Supplement.
The Administrative Plan modernizes policies to improve clarity and consistency,
incorporates enhanced civil rights protections, and includes compliance updates
under the Housing Opportunity Through Modernization Act (HOTMA) to
streamline income and asset verification. It also transitions to new national
inspection standards, consolidates the Homeownership Chapter, and authorizes
staff to make minor, non-substantial updates without requiring additional Board
approval. The 2026 Annual Agency Plan continues existing initiatives focused on
landlord engagement, community partnerships, and the preservation of
affordable housing, with no new Moving to Work (MTW) activities proposed. The
Moving to Work Supplement maintains landlord incentive and damage
reimbursement programs, streamlines administrative processes through biannual
re-examinations and flat-rate utility allowances, and updates tenant rent and
self-sufficiency policies to enhance program efficiency and participant outcomes.
Commissioner Jennifer Wagner moved to approve Resolution HC-RES-2025-09-
01, Administrative Plan, and Resolution HC -RES-2025-09-02, PHA Agency Plan
2026. Commissioner Karen Dunbar seconded, and the motion was passed
unanimously
IV . CO MMIT TEE UPDATES
a. Development Committee Update
Chief Real Estate Officer Kristin Fritz provided an update on the 5-Year Project
Plans and Milestones; both are in the Board meeting packet for reference.
Project updates of note included:
- 302 Conifer Project: The project is finalizing closing, with a date to be
announced soon. Housing Catalyst will receive its full partnership fee at
closing.
- The Grove in Bloom Project: The project is expected to close within 30 days,
and Housing Catalyst will receive its full partnership fee at that time.
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- Switchgrass Crossing: The project received 9% tax credits and is expected to
close in the first or second quarter of next year. Housing Catalyst will benefit
from both a land sale and partnership fee.
- Windtrail Apartments Project: CARE Communities has secured 4% tax credits
and bond financing. Housing Catalyst is serving as the special limited partner
and bond issuer for the project, which is scheduled to close in January.
- Village on Eastbrook: CHFA issued a clarification memo. The final tax credit
application is expected to be submitted by November, with closing
anticipated in the second quarter of next year.
- Remington Parking Lot: Discussions continue with the City of Fort Collins
regarding potential alternative site development. A Council Executive Session
is scheduled to determine next steps.
b. Audit & Finance Committee Update
Chief Financial Officer Tonya Frammolino noted the 2025 Board Report is
included in the meeting packet for reference. She also provided an update on the
Audit and Finance Committee, reporting that the committee completed its
annual charter self-assessment and confirmed the charter remains aligne d with
its fiduciary responsibilities. The review reflected strong participation and
highlighted several best practices to continue building upon. The committee also
identified opportunities to expand its focus in the coming year and discussed the
potential benefit of increasing committee membership. As part of this process,
the Board will be invited to review the self-assessment checklist and provide
feedback or comments.
c. Advocacy Committee Update
Vice Chair Anne Nelsen provided an update on the Advocacy Committee. The
committee is improving the tracking and reporting of advocacy activities to align
with NAHRO’s national framework and Housing Catalyst’s Strategic Plan goals. It
is also reviewing staff and commissioner time commitments. Chief Executive
Officer Julie Brewen highlighted upcoming engagements, including a virtual
meeting with federal partners from Washington, D.C. to discuss voucher program
budgets, a regional resource fair in Weld County under consideration, a
scheduled League of Women Voters tour at Village on Impala, and staff
attendance at the National NAHRO Conference later this month.
V . LEGISL ATIV E AN D ADVO CACY UP DATE
a. Colorado Legislative Update
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Ms. Brewen noted the Colorado legislature is currently not in session.
b. National Legislative Update
Ms. Brewen reported ongoing federal budget advocacy, noting Congress may
pass a continuing resolution. Housing Catalyst continues to coordinate with
NAHRO and federal partners on these efforts.
c. Fort Collins City Council Legislative and Business Update
Mayor Pro Tem Emily Francis provided a City Council update, noting the City is
monitoring potential state-level reallocations of Proposition 123 funding.
Upcoming Council items include the first reading of the Land Use Code updates
for corridors and centers on October 21, 2025. She also shared that Council is
considering a phased or partial adoption of the Impact Fee Study due to cost
concerns. Additionally, the City of Fort Collins will appoint Amelia Callahan to fill
the Housing Catalyst board seat vacated by Heather Clemenshaw.
d. Larimer County Commission Update
Chief Strategy & Operations Officer Michele Christensen shared Larimer County
Human Services departments are experiencing administrative strain from new
federal requirements affecting Medicaid and SNAP processing.
V I. LEGAL I SSUES
There are no new legal issues.
General Counsel Kate Belford provided a brief update, noting continued responses to
state-level legal and tenant-related changes in Colorado and Tennessee. She
recognized Housing Catalyst staff for their quick and effective implementation of
these changes, which have benefited thousands of tenants.
V II. G O O D NEWS
Chief Strategy & Operations Officer Michele Christensen announced that Housing
Catalyst has been awarded a $100,000 Larimer County Impact Fund grant to support
community-based behavioral health services. The funding will specifically support
the salary of the agency’s Behavioral Health Clinician, reinstating a program that had
previously gone unfunded last year.
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V III. ADJO UR N H O USING C ATALYST BO ARD O F
CO MMISSIO NERS AND V ILLAGES , LTD.
Chairperson Mill adjourned the meeting at 8:45 am.
IX. UPCO MING EV E NTS
Development Committee - October 6, 2025
Audit & Finance Committee - October 13, 2025
Advocacy Committee - October 20, 2025
Housing Catalyst Board of Commissioners - October 16, 2025
Wellington Community Housing Board of Directors - November 6, 2025
NAHRO 2025 National Conference & Exhibition - September 28 - 30, 2025
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Resolution # HC-RES-2025-10-01
To: Housing Catalyst Board of Commissioners | Villages Board of Directors
From: Tonya Frammolino, Chief Financial Officer
Meeting Date: October 17, 2025
Action Item: HC-VIL-RES-2025-10-01 | Adoption of the FY2026 Budgets
STRATEGIC GOAL:
Alignment to Goal 5: Achieve excellence in business operations
BACKGROUND:
The FY2026 Budget Report and accompanying Budget Assumptions Report provide a comprehensive
overview of projected financial and operational performance for Housing Catalyst and Villages, Ltd.
Together, these documents outline key assumptions, economic drivers, and resource allocations
necessary to support the agency’s programs and strategic objectives for the upcoming fiscal year.
The budgets reflect the organization’s continued emphasis on long-term financial sustainability, data-
driven decision-making, and operational efficiency. The FY2026 Budget was reviewed in detail by the
Audit and Finance Committee, which recommended submission to the full Boards for adoption.
DESCRIPTION OF ACTION ITEM:
This resolution approves formal adoption of the FY2026 Budgets for Housing Catalyst and Villages, Ltd.,
as presented.
Adoption also authorizes submission of Form HUD-52574 (Operating Budget) and supporting
documentation to the U.S. Department of Housing and Urban Development in compliance with federal
program requirements.
FISCAL IMPACT:
The FY2026 Budgets establish the expected financial performance for the Housing Catalyst parent
organization, Villages, Ltd., affiliated entities, and Low-Income Housing Tax Credit ( LIHTC )
partnerships.
Adoption confirms the availability of resources to meet operating needs, maintain debt-service
compliance, and support capital investment priorities.
Approval of these budgets ensures Housing Catalyst’s continued compliance with HUD and lender
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Resolution # HC-RES-2025-10-01
requirements and provides the framework for ongoing financial monitoring and reporting throughout
the fiscal year.
RECOMMENDATION:
It is recommended that the Boards of Commissioners and Directors jointly adopt the FY2026 Budgets
for Housing Catalyst and Villages, Ltd. and authorize submission of Form HUD-52574 and related
certifications to HUD.
ATTACHMENT(S):
• FY2026 Budget Report
• FY2026 Budget Assumptions Report
• Form HUD-52574 (Operating Budget)
• Joint Resolution No. HC-VIL-2025-10-01
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This report provides an overview of
Housing Catalyst’s projected financial
performance. Through commentary, exhibits
and supplemental data, we aim to provide a
clear understanding of the agency’s financial
position and the expected financial and
operational outcomes of our planned initiatives.
Housing Catalyst’s budget is created in
alignment with our mission, strategic plan, and
triple bottom line.
Budget
Outcomes
Report
2026 – 2028
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Contents
Overview................................................................................................................................................ 1
Purpose of this Report ........................................................................................................................ 1
Economic Conditions and Outlook ......................................................................................................... 2
National Economic Context ................................................................................................................ 2
Colorado Economic Context ............................................................................................................... 2
Local Economic Context ..................................................................................................................... 3
Long-Term Planning | Major Commitments | Initiatives .......................................................................... 3
Organizational Structure ........................................................................................................................ 4
Blended Component Units .................................................................................................................. 5
Discretely Presented Component Units .............................................................................................. 6
Report Assumptions .............................................................................................................................. 6
Agency Results ...................................................................................................................................... 6
Key Highlights .................................................................................................................................... 6
Operating Revenue ............................................................................................................................ 7
Operating Expenses ........................................................................................................................... 9
Agency Bottom Line ......................................................................................................................... 13
Catalyst Funds ................................................................................................................................. 14
Central Office Cost Centers (Overhead) ........................................................................................... 15
Business Units.................................................................................................................................. 22
Voucher Programs Overview ............................................................................................................... 30
Program Scale and Utilization .......................................................................................................... 31
Real Estate Portfolios .......................................................................................................................... 32
Villages, Ltd Portfolio ........................................................................................................................ 32
Low-income housing Tax Credit (LIHTC) Portfolio ............................................................................ 33
Wellington Portfolio .......................................................................................................................... 40
3-Year Rolling Budgets ........................................................................................................................ 41
Capital Budgets ................................................................................................................................... 41
Conclusion ........................................................................................................................................... 42
Appendix – Key Definitions .................................................................................................................. 43
Exhibits ................................................................................................................................................ 44
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Overview
For more than 50 years, Housing Catalyst has been building community in Northern Colorado. The
agency addresses the growing need for affordable homes through innovative, sustainable, community-
focused solutions. This includes developing and managing residential properties, administering rental
assistance, coordinating community programs and services, and building community support for
affordable housing through advocacy and education.
PURPOSE OF THIS REPORT
This report provides a comprehensive overview of Housing Catalyst’s financial and operational outcomes
for the 2026 calendar year. It includes key metrics, financial performance, and strategic initiatives, with
the goal of demonstrating how our efforts align with and further our mission of creating vibrant,
sustainable communities throughout Northern Colorado.
Housing Catalyst approaches the budget development process with one overarching goal in mind – to
satisfy our mission. We uphold our mission through a focus on our triple bottom line.
As Housing Catalyst has grown and evolved to fulfill its mission, the agency has taken oversight of various
entities and created entity structures to expand opportunities for residents earning below the area median
income. This oversight includes:
• Administering voucher programs for Larimer County Housing Authority,
• Managing Wellington Community Housing through a contractual agreement,
• Managing Villages, Ltd. a 501(c)(3) entity that owns and operates affordable rental homes,
• Developing multiple affordable housing projects utilizing tax credit financing through partnership
agreements with various external investors.
• Administering vouchers for the Colorado Division of Housing in Larimer and Weld counties.
Page 1 of 116 13
This year’s fiscal budget data includes all agency-wide
programs and departments, including blended units and
discretely presented units made up of managed entities
and affiliates.
This report reflects the efforts of Housing Catalyst’s
dedicated staff. The executive team extends its sincere
appreciation to all for their commitment to this process
and our mission.
Economic Conditions and Outlook
Housing Catalyst continues to face challenges related to funding instability, particularly the uncertainty of
federal appropriations and subsidy levels. Congressional budget negotiations remain unpredictable,
forcing the agency to base budget estimates on historic proration and shifting legislative actions.
Inflationary pressures and higher interest rates continue to complicate financial planning, increasing
operating costs while constraining the supply of affordable housing nationwide. To mitigate this risk,
Housing Catalyst is increasingly focused on maximizing revenue sources to reduce reliance on
government funding, which currently represents more than half of our revenue streams, including HUD
grants, Housing Assistance Payments (HAP), and other federal programs.
NATIONAL ECONOMIC CONTEXT
The U.S. economy is expected to grow modestly in 2025, with Deloitte’s baseline forecast projecting real
GDP growth of 1.4% in 2025 and 1.5% in 2026. Growth is dampened by elevated tariffs, restrictive
interest rates, and slowing consumer spending. Inflation is projected to be 3.6% by late 2025. While the
U.S. labor market remains relatively healthy with unemployment near 4.2%, business investment is
expected to remain subdued due to high financing costs and policy uncertainty.
As of the publication of this report, the federal government has shutdown. While short-term shutdowns
have historically had limited direct effect on Housing Assistance Payments, prolonged disruptions could
delay HUD appropriations, stall contract renewals, and increase uncertainty around program funding. For
Housing Catalyst, these conditions highlight the need for conservative assumptions and careful cash
management to safeguard residents and properties.
Our local challenges mirror national conditions. NAHRO reports that the U.S. faces a deficit of 7.3 million
affordable and available rental homes for extremely low-income households. More than half of all renter
households nationwide are cost-burdened, consistent with Fort Collins’ own experience where 53% of
renters spend more than 30% of their income on housing.
COLORADO ECONOMIC CONTEXT
According to the Colorado Futures Center’s Q2 2025 ColoradoCast, the state economy is slowing in the
near term but is not projected to enter recession before year-end. Growth rates are expected to recover
modestly by late 2025, but risks remain tied to tariffs, federal workforce reductions, and volatile equity
Page 2 of 116 14
markets. Colorado housing prices have experienced six consecutive months of decline, the longest
downturn since 2022. This trend does not translate into improved affordability for the households we
serve. Instead, it underscores the volatility of the housing market and reinforces the essential role of
multifamily affordable housing as a stabilizing force.
LOCAL ECONOMIC CONTEXT
Fort Collins has an estimated population of 170,368 (ACS2023) and a median household income of
$81,883. The median family income for Larimer County is estimated to be $91,364.
The Fort Collins rental market shows early signs of softening. CHFA’s Q1 2025 survey reports:
• Vacancy: 5.3%, up from 4.5% a year earlier.
• Median Rent: $1,645, down 2.7% YoY ($45 decrease) and down from a recent high of $1,751
in 2024.
• Inventory Growth: ~850 new units delivered year-over-year, contributing to the increase in
vacancy.
While vacancies have increased slightly, affordability pressures remain acute. The Harvard Joint Center
for Housing Studies reports that 53% of Fort Collins renters are cost-burdened and 27% are severely
cost-burdened. The City’s Affordable Housing Strategic Plan shows that, as of Q1 2025, Fort Collins
remains ~850 units below its affordable housing inventory target.
At the county level, Larimer continues to experience similar affordability challenges. Median rents rose
45% between 2010 and 2018 while renter incomes lagged behind, and recent surveys confirm that limited
affordable stock continues to constrain households.
Despite considerable development since 2015, only about 5% of Fort Collins’ overall housing stock is
considered affordable. If the City hopes to achieve its goal for 10% housing to be affordable by 2040, 282
affordable homes need to be added every year from 2020 onward. At the current rate, Fort Collins is
achieving only about 70% of its annual needed production.
Housing Catalyst is committed to increasing the supply of affordable housing through new development,
preservation, acquisitions, and partnerships.
Long-Term Planning | Major Commitments | Initiatives
Housing Catalyst is steadfast in its commitment to developing and preserving affordable housing
throughout Northern Colorado. This mission is supported by partnerships with the City of Fort Collins,
Colorado Division of Housing, Colorado Housing and Finance Authority, equity investors, and private
lenders. Through intentional design and sustainable development principles, Housing Catalyst continues
to create and maintain a diverse, vibrant portfolio of affordable housing that meets the needs of the local
community. The agency employs multiple strategies to build and preserve its affordable housing stock,
including new construction, acquisition, rehabilitation, and preservation of existing units.
The 2023-2027 Strategic Plan calls for Housing Catalyst to restructure its portfolio by disposition of
functionally obsolete properties or financially unsustainable models. The agency achieved a major
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milestone in this goal when it completed its disposition of public housing in 2025. Previous disposition
processes had shown public housing proceeds could be leveraged to create four new affordable homes
for every one public housing unit sold. The new homes were higher quality, more sustainable, and not
subject to the capital funding backlog of the public housing program.
Completed in March 2025, the Village on Impala became an example of what can be achieved by
repositioning public housing. The project leveraged public housing sales proceeds and a former public
housing site to create an updated, expanded, and cohesive community that netted 49 additional homes.
The redeveloped Village on Impala features 62 new affordable apartments and 12 renovated duplexes,
as well as a clubhouse, playground, and outdoor community spaces. The project complies with Energy
Star and Enterprise Green Community standards and features solar energy that offsets resident utility
costs.
Housing Catalyst continues to implement risk management and operational efficiency frameworks as
outlined in the 2023-2027 Strategic Plan. These initiatives will guide the agency’s growth, enabling
Housing Catalyst to continue to build vibrant, sustainable communities.
Organizational Structure
Housing Catalyst operates as a complex entity with a multifaceted structure that supports a broad range
of affordable housing initiatives. As a public housing authority and mission-driven organization, Housing
Catalyst’s operational and financial activities are strategically organized to ensure efficiency,
sustainability, and healthy, high-quality affordable housing for residents across Northern Colorado.
The organizational structure not only reflects the core activities of the agency itself but also includes
several affiliates and managed entities that play critical roles in the achievement of the organization’s
goals. These affiliates enable Housing Catalyst to extend its reach into various segments of the housing
market, including Low-Income Housing Tax Credit (LIHTC) properties, affordable and supportive housing
projects, as well as partnerships with both public and private entities.
Through these affiliate organizations and managed entities, Housing Catalyst can leverage diverse
funding streams, including public housing resources, tax credits, public-private partnerships, and other
innovative financial structures. This allows the agency to effectively manage and grow its housing
portfolio while maintaining long-term financial stability.
The figure below depicts the overall organizational entity structure, providing a clear visualization of
Housing Catalyst's corporate organization and its related entities. This illustration highlights the major
business segments, operational focus areas, and key partnerships, offering a comprehensive view of
how the agency manages its assets and resources to fulfill its mission.
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Figure 1 - Organizational Entity Structure
BLENDED COMPONENT UNITS
Housing Catalyst includes several controlled entities within its financial reporting entity as blended
component units, including:
• Larimer County Housing Authority (LCHA)
• General partnership entities controlled by Housing Catalyst
• Villages, Ltd., which owns and manages affordable rental homes
• Other special purpose entities
Housing Catalyst, LLC, a disregarded Limited Liability Corporation wholly owned by Housing Catalyst, is
also part of this structure. The entity currently owns the Mason Parking Lot, the land designated for Village
on Eastbrook development, and holds ownership interests in various general partnership entities and
special purpose entities. However, there are no notable budget items for Housing Catalyst, LLC for the
2026 calendar year.
These entities and units are consolidated and reported within the proprietary funds of Housing Catalyst,
according to the Governmental Accounting Standards Board (GASB), but are presented separately within
this budget for clarity. Housing Catalyst no longer holds any public housing properties.
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DISCRETELY PRESENTED COMPONENT UNITS
Housing Catalyst also manages eight LIHTC (Low-Income Housing Tax Credit) properties that are
presented separately due to their legal structure. These properties are reported separately within the
LIHTC section of this report.
Report Assumptions
The 2026 budget reflects Housing Catalyst’s focus on financial stability, operational efficiency, and
strategic growth. The accompanying Assumptions Report provides detail on key variances from 2025 pro
forma figures, which reflect January–August actuals and September–December budgeted results.
This Budget Outcomes Report focuses instead on summarizing projected 2026 results, including analysis
of Net Operating Income (NOI) for each entity or department and disclosure of non-operating items that
determine final net income or loss.
Agency Results
Housing Catalyst reports its annual financial results in the Annual Comprehensive Financial Report
(ACFR). The ACFR distinguishes agency results, referred to as Primary Government, which includes the
results from the Voucher programs, Villages, Ltd entity and holdings, and LIHTC properties, known as
Discretely Presented Component Units. For simplicity, this report will refer to Primary Government as
“Agency” and Discretely Presented Component Units as “LIHTC”.
A Note on the Development Department
The Development Department’s operating costs are relatively stable from year to year; however,
revenues from developer fees are cyclical and depend on the timing of project closings. In some years,
the fees earned are sufficient to cover expenses, while in other years they may fall short. To manage this
variability, Housing Catalyst presents results both with and without the Development Department and
maintains 12–18 months of Development operating expenses in cash reserves to ensure stability during
years when fees are not realized.
KEY HIGHLIGHTS
The 2026 budget projects continued growth in total operating revenue, rising about 7.0% over 2025,
driven by bond issuance fees, increased agency fees, and interest income. However, operating expenses
are projected to grow at a faster pace, about 11.8%, reducing net operating income in the 2026 budget.
This decline is largely tied to the cyclical nature of the Development Department, where timing of earned
developer fees can cause year-to-year swings.
Budget vs. Pro forma Overview:
• 2026 Budgeted Net Operating Income: $387,925
• 2025 Pro forma Net Operating Income: $863,440
Page 6 of 116 18
• Net Change: ($475,515; 55.1%)
When isolating the Agency’s core operations (excluding the Development Department), performance
strengthens year over year, with NOI improving from $1,017,788 in the 2025 pro forma to $1,143,127 in
the 2026 budget, or 12.3%. Core Agency Net Operating Income (NOI) has remained stable at 9.9% of
revenue which matches the 2025 pro forma forecast. The range over past several years is narrow with a
high of 10.1% and a low of 8.7%, underscoring the consistent performance of the Agency’s core
operations even amid broader economic fluctuations and development-related variability. This stability
demonstrates Housing Catalyst’s ability to manage costs effectively and sustain healthy operating
margins across changing conditions.
Non-operating income is projected at $1.29 million, primarily from soft-debt interest income accruals and
partially offset by voucher enhancement fund outlays, interest and depreciation expense. After non-
operating activity, the Agency expects positive net income of $1.67 million for 2026, representing a 13%
net margin of total revenue, reflecting solid underlying financial health despite reduced earnings in the
Development Department.
OPERATING REVENUE
The 2026 operating revenue budget for the agency is projected to be a total of $12,912,825 which
represents an increase from the 2025 pro forma of $850,230 or 7.0%. A significant factor contributing to
the increase in revenue is the bond issuance fees, $424k, related to Eastbrook and Windtrail Apartments.
The largest source of this revenue is generated from property management activities at 21%. Figure 2
illustrates a breakout of agency revenue by major source type.
Figure 2 - Operating Revenue by Type
Property
Fees (Net)
21%
Maintenance
Revenue (All forms)
11%
Site Labor Cost
Recapture
15%
Asset, Admin &
Board Fees
6%
Voucher
Management
Revenue
16%
Resident Services
Revenue
9%
Developer Fees (Incl
Acq & Dispo)
10%
Grant Revenue
7%
Bond Issuance &
Monitoring Fees
3%
Interest, CAM &
Other Revenue
2%
Page 7 of 116 19
In addition to the standard property management fees, the Agency charges Villages, Ltd. $737,211 in
fees for asset management, board administration, and entity oversight. These fees are eliminated in
consolidation and recorded as expenses on the Villages, Ltd. books.
FIVE-YEAR OPERATING REVENUE TREND
Housing Catalyst’s operating revenue shows moderate overall growth across the five-year period, but
with notable year-to-year swings tied to the Development Department. Revenue rose from $9.5 million in
2022 to a projected $13.0 million in 2026, representing an overall increase of 36.2%. Core revenues
demonstrate steady growth, averaging 4–5% annually, underscoring the strength of the Agency’s
ongoing operations. This performance compares favorably with broader nonprofit sector projections,
where annual revenue growth of ~4% is considered healthy and sustainable.
Development revenues, by contrast, are episodic, tied to the timing of project closings and fee
recognition. Over the five-year period, Development has contributed $10.8 million in revenue against $9.0
million in operating expenses, reinforcing that while annual results fluctuate, the Department more than
covers its costs over time. This combination of steady core growth and cyclical but net-positive
development activity underscores the importance of Housing Catalyst’s policy of holding 12–18 months
of operating reserves, which provides stability during years when developer fees fall short, ensuring the
Agency can continue advancing its mission without disruption.
Figure 3 - Five-Year Operating Revenue Spread
$9,513,310
$11,411,270
$12,454,638 $12,062,595
$12,912,825
$6,008,294
$9,595,081
$10,175,326 $10,258,408
$11,567,450
$3,505,016
$1,816,189 $2,279,311 $1,804,187 $1,345,375
$-
$2,000,000
$4,000,000
$6,000,000
$8,000,000
$10,000,000
$12,000,000
$14,000,000
2022 Actual 2023 Actual 2024 Actual 2025 Proforma 2026 Budget
Five-Year Operating Revenue Spread
Total Revenue - Agency Total Revenue - Core
Total Revenue - Development Linear (Total Revenue - Core)
Page 8 of 116 20
OPERATING EXPENSES
In 2026, Housing Catalyst’s operating expenses, excluding voucher-related costs, are projected to total
$12,524,902, an increase of 12.8% compared to the 2025 pro forma forecast. Labor continues to
represent the largest share of operating costs, accounting for 82.3% of the total (see Figure 4 for a full
expense distribution).
Several accounting changes affect comparability to prior years:
• Beginning in 2026, the Agency will report 100% of grant-eligible resident services expenses within
its operating budget. Any portion not covered by grant funding will be reimbursed by properties,
resulting in no net impact to the bottom line.
• In prior years, only a pro-rata share of common area maintenance (CAM) expenses was booked.
Starting in 2026, 100% of CAM expenses and the corresponding reimbursement will be reported.
As with resident services, the net effect on the bottom line is unchanged.
When adjusted for these accounting changes, the underlying year-over-year increase in operating
expenses is 9.5%.
Key drivers of this increase include:
• Labor costs, which continue to rise due to competitive market conditions, wage adjustments, and
higher benefit costs.
• Insurance, which on an adjusted basis reflects a 7% year-over-year increase, consistent with
trends across Colorado and the national multifamily insurance market.
• Technology and consulting investments, as the Agency transitions away from City-managed
IT services. This transition entails one-time costs for migration, as well as a period of overlapping
service contracts while legacy systems are phased out and new managed services are
established.
• Staff training and travel, expanded to strengthen organizational capacity and align with strategic
initiatives.
Each expense category has been calibrated to meet operational needs, support strategic initiatives, and
address the requirements of ongoing property management. The following sections provide a detailed
review of major expense drivers, the rationale for year-over-year changes, and their impact on the 2026
budget.
Page 9 of 116 21
Figure 4 - Operating Expenses by Type
Labor Expenses
FTE TRENDS
Budgeted staffing levels are projected to decline slightly
in 2026, with a net decrease of 1.3 FTEs from 94.1 to
92.8. While the overall headcount is lower, adjustments
across departments reflect Housing Catalyst’s focus on
aligning resources with operational priorities:
• Technology: +1.0 FTE to add a Yardi Specialist funded through Catalyst Funds, supporting the
significant volume of system initiatives underway.
• Rental Assistance: +0.2 FTE increase to meet service demand.
• Maintenance: –1.0 FTE, achieved through natural attrition as efficiency initiatives take hold.
• Resident Services: –1.5 FTE, reflecting a targeted strategy to concentrate services at properties
with the highest resident needs while lowering portfolio operating costs.
SALARY AND BENEFITS
Net salary costs are projected to increase by $367k, 4.8%, driven primarily by market rate adjustments
and performance-based increases. Benefit costs are expected to rise modestly by $30k, 1.7% bringing
the combined fringe rate (excluding sick, vacation, and other paid time off) to 22.3% of salary. This
Labor Including Benefits,
$10,310,283 , 82%
Staff Training
(Includes travel),
$349,431 , 3%
Technology Expenses,
$767,793 , 6%
Other Administrative
Expenses, $263,451 ,
2%
Resident Services
Expenses, $284,852 ,
2%
Facilities & Vehicle
Expenses, $175,395 ,
2%
Insurance, $237,724 ,
2%
Other General Expenses,
$135,973 , 1%
Other, $2,214,619
, 18%
2025 OPERATING EXPENSES
2025 FTE
COUNT
2026 FTE
COUNT
YOY
DECREASE
94.1 92.8 -1.3
Page 10 of 116 22
increase reflects refinement to the fixed health benefit reimbursement model. Through favorable
negotiations, Housing Catalyst secured stable reimbursement rates for 2026 and increased the employer
contribution by $15 per pay period per employee, substantially offsetting cost pressures while minimizing
the impact on employees.
BURDEN RATE & BENCHMARKS
The total burden rate — which combines salary, benefits, and paid time off — is budgeted at 38.4%. This
positions Housing Catalyst at the mid-point of comparable industry benchmarks, based on the latest
Bureau of Labor Statistics (BLS) data (see Figure 5). BLS data show total fringe rates of 29.8% for private
industry and 38.5% for state and local governments, with Housing Catalyst’s rate aligned to the latter,
reflecting its public service mission and competitive benefits.
With these adjustments, the Agency continues to balance fiscal responsibility with its commitment to
maintaining a strong, well-supported workforce.
Technology Investments
In 2026, technology-related expenses are projected to total $767,793, an increase of 9.0% over the 2025
pro forma. The primary driver of this growth is Housing Catalyst’s transition away from City-managed IT
services, a strategic initiative that will expand independence, improve reliability, and provide greater
flexibility for future technology decisions.
This transition requires a period of overlap in service costs as legacy systems are maintained while new
managed service agreements are implemented and staff are fully migrated. These one-time and dual-
running costs represent the single largest technology expense in 2026 but are essential to ensure
continuity of operations and minimize disruption during the shift.
Beyond the City transition, the 2026 budget also funds ongoing investments in IT infrastructure, software
licensing, system security, and hardware upgrades. These expenditures support organizational priorities
such as data security, system reliability, and improved staff productivity, while laying the groundwork for
longer-term efficiencies and scalability.
Legal and Other Administrative Expenses
In 2026, Housing Catalyst’s legal and administrative expenses are budgeted at $612,882, representing
a $138,414 year-over-year increase. The largest drivers of this increase are expanded investment in
professional development and targeted consulting support.
• Training & Professional Development: Total investment in training, education assistance, and
conferences (including related travel) is projected at $349,431, an increase of $63,467 compared
to the prior year. With 92.8 FTEs, this equates to approximately $3,765 per FTE. This level of
BLS Benchmark Data - (Includes Time Off)Low MID High
Private Industry 19.8% 29.8% 33.6%
State & Local Governments 36.4% 38.5% 42.7%
Figure 5 - BLS Benchmark Fringe Rate Data
Page 11 of 116 23
investment is consistent with national benchmarks that recommend allocating 1–5% of payroll
toward employee development (SHRM/ATD guidance). Housing Catalyst’s investment reflects a
deliberate focus on building staff capacity and ensuring long-term organizational effectiveness.
• Consulting Fees: Consulting costs are projected to rise by $30,551, driven by completion of the
Paylocity HRIS implementation and continued engagement of Gander Consulting to provide risk
management expertise and close oversight of the insurance portfolio, given ongoing volatility in
the property insurance market.
• Legal: Legal expenses are projected to increase by $5.4k, 30%, in 2026. The higher allocation
reflects anticipated volatility in the operating environment and ensures sufficient capacity to
address compliance, contract, and governance needs as they arise.
Overall, the increase in legal and administrative expenses underscores Housing Catalyst’s commitment
to strengthening staff capabilities, modernizing systems, and managing organizational risk. These
investments are intended to sustain efficiency and resilience as the Agency navigates a more complex
operating environment.
General Expenses
In 2026, Housing Catalyst’s general expenses are projected at $833,943, an increase of $270,000 (48%)
compared to the 2025 pro forma. The majority of this increase reflects accounting changes rather than
true cost growth, specifically the shift to recording 100% of resident services grant-eligible expenses and
100% of CAM (common area maintenance) insurance expenses, both of which are fully reimbursed and
have no net impact on the bottom line.
• Resident Services: Reported expenses rise by $194k, 212%, due to the change in accounting
treatment. Excluding this change, costs are consistent with prior years.
• Insurance: Reported expenses increase by $81k, 52%, but after adjusting for the CAM
accounting change, the underlying increase is 7.2%, in line with statewide market trends.
• Utilities: Facility utility costs are projected to increase by $10k, 29%, reflecting higher energy
rates.
• Maintenance: Facility maintenance expenses are expected to decline by $12.6k, 10%, reflecting
efficiency measures.
• Vehicle Expenses: Costs associated with the maintenance fleet are projected to decrease by
($7.1k, 24%), driven primarily by turnover in vehicles and lower fuel/repair needs. In addition,
vehicle lease costs show a net credit of ($3,400) due to a new accounting standard requiring the
Agency to record operating leases differently. In practical terms, this means that lease payments
are now offset by corresponding accounting entries, reducing the expense line. While the
presentation looks unusual, it does not represent “income” but rather a shift in how lease
expenses are reported under the new rules.
• Other General Expenses: Increase modestly by $4.6k, 3%.
Page 12 of 116 24
When adjusting for the resident services and insurance accounting changes, the underlying year-over-
year increase in general expenses is just $5k, or less than 1%.
This demonstrates that while reported costs appear significantly higher, the true year-over-year change
in general operating expenses is minimal, and increases are largely limited to utilities and insurance,
consistent with broader market conditions.
AGENCY BOTTOM LINE
Given ongoing funding uncertainty, the 2026 budget prioritizes resilience, maintaining steady core
revenues, prudent reserves, and disciplined expense management. While this conservative approach
safeguards stability in a volatile environment, it does not signal retrenchment. Housing Catalyst continues
to invest strategically in strategic initiatives that strengthen operations, expand capacity, and position the
Agency for growth when external conditions stabilize.
Operating expenses are projected to rise, particularly in labor, insurance, and technology. However, the
Agency’s strategy centers on maintaining strong cash reserves, aligning resources to mission-critical
priorities, and refining cost-recovery mechanisms to support long-term sustainability. This balanced
approach enables Housing Catalyst to withstand short-term pressures while continuing to move
deliberately toward its long-term goals and advance its mission.
Net Operating Income
For 2026, the Agency projects Net Operating Income of $388k, compared to $863k in the 2025 pro forma,
which is equal to 3.0% of revenue on a consolidated Agency basis (including Development). This
outcome reflects the Agency’s ability to maintain operating strength even as Development revenues
fluctuate year-to-year.
The 2026 budget reflects the balance of modest revenue growth and higher operating costs, producing
a positive bottom line that underscores the Agency’s continued ability to generate sufficient income from
operations to support its mission and maintain financial stability.
Other Non-Operating Income (Expenses)
Total non-operating income is projected at $1.3 million in 2026, a decrease of $90,600 (7%) compared
to the 2025 pro forma.
Key drivers include:
• Soft Debt Interest Income: Expected to decline by $77,600, to $1.47 million, reflecting timing of
cash flows from past development transactions.
• Interest Expense: Decreasing by $25,000 due to scheduled debt service reductions.
• Depreciation & Amortization: Lower by $7,800, reflecting gradual depreciation schedules.
• Voucher Enhancement Fund (VE Fund): Expenditures from the VE Fund are budgeted at
$100,000 in 2026, up from $50,000 in 2025. The VE Fund was originally established with $1
million in proceeds from the RAD/Section 18 repositioning, with the intent of supporting voucher-
related services over a 10-year period. Current uses include landlord incentives and funding for
Page 13 of 116 25
a portion of resident services program staffing at our PSH properties. While the intent was to
spread funding evenly across a decade, there is no strict cap on annual utilization, giving Housing
Catalyst the flexibility to draw more heavily in years of higher need. In 2026, Mason Place will
receive $80,000 and Redtail Ponds will receive $20,000 to help cover critical resident services
costs.
These non-operating activities demonstrate both the enduring benefits of Housing Catalyst’s prior
development work and the Agency’s ongoing commitment to supporting vulnerable residents through
targeted reinvestment.
Net Income
Total net income for 2026 is projected at $1.7M, compared to $2.2M in the 2025 pro forma, a change of
($566k, 25.3%). Net income as a share of revenue is projected at 13.0%, reflecting steady bottom-line
results despite rising costs and lower non-operating income.
By sustaining positive NOI, leveraging non-operating income streams, and committing VE Fund
resources to PSH communities, Housing Catalyst demonstrates a balanced financial approach that
prioritizes stability, mission delivery, and long-term resilience.
CATALYST FUND S
Housing Catalyst designates certain ancillary revenues as Catalyst Funds, derived from sources such as
bond issuance proceeds, special limited partner fees, and other non-recurring income. These funds are
reserved for one-time strategic investments that advance the Agency’s mission and long-term goals.
Because sources fluctuate year to year, Catalyst Funds provide the flexibility to respond to operational
needs, pilot new initiatives, and support organizational improvements without burdening the ongoing
operating budget.
For 2026, total Catalyst Fund sources are estimated at $431,134, with $250,000 designated for new
initiatives. Since inception, allocated Catalyst Funds have exceeded actual expenditures, and the Agency
begins 2026 with $417,750 in unspent balances available for future use. Department heads may submit
proposals at any time during the year, subject to Executive Team review and approval.
Three initiatives have been approved for the 2026 budget year:
• Maintenance Department Efficiency & Reorganization – $145,000
Funds the addition of a working Maintenance Supervisor to rebalance workloads and improve
oversight. The new position will supervise half the technician team while continuing to perform
billable maintenance work, reducing the technician-to-supervisor ratio from 10:1 to 5:1. Catalyst
support allows implementation of this position without increasing property-level costs, reducing
the 2026 work-order bill rate by approximately $7.75 per hour. Performance and cost impact will
be reviewed after 12–18 months to determine whether the role transitions to permanent operating
funding.
• Yardi Implementation & Process Improvement Specialist – $124,000
Page 14 of 116 26
Supports creation of a dedicated Yardi integration and process improvement role to connect
operations, accounting, and IT systems. This position will document workflows, bridge
departmental silos, and support adoption of new system features following the City IT transition.
The role directly supports Strategic Plan Goal 5: Operational Excellence and will be evaluated
after 12–18 months for potential absorption into the operating budget if efficiencies are
demonstrated.
• Resident Services Affordable Program – $100,000
Provides contingent funding for one additional Resident Services Specialist under the Affordable
Program. The total program cost is $528,546, offset by $6,664 in grant revenue and $428,546
billed to the Richmond and Horsetooth properties, which will continue to be served by the existing
FTE. Catalyst Funds are authorized to cover the cost of a potential second position, subject to
evaluation of overall portfolio needs. If analysis determines that an additional role is justified,
executive leadership will decide where that staff resource is best deployed and how it will be
funded long term. If the position is not retained, Catalyst Funds will not be drawn. Quarterly
reporting will assess impact on property performance, occupancy, and resident outcomes to
inform the final decision.
Together, these Catalyst Fund initiatives total $369,000 in potential investment for 2026 and exemplify
the Fund’s purpose: to advance efficiency, innovation, and mission-driven impact through targeted, time-
limited investments.
CENTRAL OFFICE COST CENTERS (OVERHEAD )
Housing Catalyst employs a Central Office Cost Center (COCC) model to allocate shared overhead
expenses across departments, ensuring that costs are accurately aligned with the operations they
support. This structure promotes transparency, consistency, and precision in financial reporting while
allowing Housing Catalyst to evaluate efficiency across the organization.
In 2026, six COCCs are included in the budget, encompassing Talent Management, Information
Technology, Financial Services, Administrative Services, and Communications, along with other general
administrative support functions. The combined total outlay for these cost centers is $4,930,490,
Figure 6 - Cost Center Structure
Programs | Real
Estate
Departments &
Divisions
Cost Centers ORGANIZATIONAL OVERHEAD
(ADMIN, FINANCE, TECH, COMMUNICATIONS, TALENT
MANAGEMENT & SGA)
Property
Operations:
Maintenance
Real Estate Portfolio
Property
Operations:
Property
Management
Real Estate Portfolio
Resident
Services
Residents and Voucher
Holders
Rental
Assistance
Voucher Programs
Real Estate
Development
Development, Rehabs, and Acquisitions
Page 15 of 116 27
representing the administrative infrastructure required to support agency-wide operations and a
combined increase of 7.8% exclusive of catalyst funds.
Overhead allocations follow two distinct methodologies:
• Talent Management and IT cost centers are applied using a fixed rate per full-time equivalent
(FTE) of $7,970 and $10,600, respectively.
• Administrative Services, Finance, SG&A, and Communications are distributed based on time
study data to reflect actual resource utilization.
Figure 7 illustrates the distribution of costs across the six cost centers as a percentage of total cost center
expenses, providing insight into internal resource allocation.
A detailed cost center report is available in the Exhibits, offering a detailed review of combined expenses
and each cost center. In the following section, we will conduct a deeper review of each cost center,
examining how each supports the agency's operational goals. This analysis will provide a more granular
understanding of the drivers behind overhead costs and their alignment with Housing Catalyst’s strategic
objectives.
Overhead as a Percentage of Revenue
In 2026, overhead (as allocated through COCCs) represents approximately 38% of Agency-only revenue.
However, this figure is misleading because the Agency handles many additional revenue streams beyond
its “Agency operations.” When overhead is compared to the total revenue managed by the Agency
(including voucher programs and real estate operations, after removing related-party transfers), the
effective overhead rate falls to 13.1%. That lower ratio better captures how overhead supports the full
scope of operations and provides a more meaningful benchmark for internal efficiency.
Labor Including
Benefits,
$9,823,489 , 83%Staff Training &
Conferences,
$280,677 , 2%
Technology
Expenses, $771,589
, 6%
Other
Administrative
Expenses, $378,839
, 3%
Resident Services
Programming,
$84,102 , 1%
Facilities Utilities &
Maintenance, $179,775 , 2%
Insurance & Taxes,
$175,628 , 1%Other General
Expenses, $214,259
, 2%
Figure 7 - Overhead by Cost Center
Communications,
$279,123 , 5%
Administrative Staff,
$1,719,549 , 33%
Financial Services,
$1,279,462 , 25%
Talent
Management,
$686,198 , 13%
S,G & A,
$217,961 , 4%
Technology Costs,
$1,039,765 , 20%
Page 16 of 116 28
This lower ratio is more indicative of how overhead supports the full scope of Agency operations. For
context, many nonprofit and nonprofit benchmarking sources suggest that overhead or administrative
cost rates in the range of 20–35% are common and reasonable, depending on complexity, scale, and
mission.
When viewed in the context of total revenues managed, including the voucher and real estate portfolios,
the Agency’s effective overhead ratio of 13.1% demonstrates strong cost efficiency relative to the scale
of operations. This broader measure more accurately reflects Housing Catalyst’s true administrative
capacity and the extent to which centralized resources support a complex, multi-program organization.
Clarification on HUD Treatment of the Rental Assistance Department
While Housing Catalyst’s COCC model reflects internal cost allocations across operating departments,
HUD’s accounting treatment of the Rental Assistance Department differs from this internal approach.
Internally, the department functions as a revenue center, with administrative fees from the Housing
Choice Voucher (HCV) program recognized as income supporting overall operations. However, for HUD
reporting purposes, the department is presented as a cost center of the voucher programs.
As long as sufficient unrestricted net assets are available to fund operations, 100% of the department’s
costs are charged to the voucher programs to reflect the full administrative cost of program delivery. This
can result in a year-over-year mismatch between recognized revenues and expenses, since the timing
of administrative fee receipts may not align with cost recognition.
Further explanation of this treatment and its funding implications is provided in the Voucher Program
section of this report.
Cost Center Details
This section provides a detailed breakdown of each cost center’s budget for 2026, comparing projected
operating expenses against the 2025 pro forma. Each cost center supports specific operational functions
within Housing Catalyst and plays a vital role in delivering services efficiently and effectively.
TALENT MANAGEMENT COST CENTER
The Talent Management Cost Center captures not only the direct expenses of the Talent Management
team, such as recruitment, training, employee relations, and personnel administration, but also the costs
associated with all staff-related expenses across the Agency. Because this cost center is allocated based
on full-time equivalent (FTE) counts, it encompasses organization-wide expenditures tied to the
workforce, including benefits administration, employee recognition, and development programs.
This approach ensures that staffing-related costs are distributed proportionally across departments,
reflecting each area’s share of the Agency’s total personnel resources. The cost center therefore
represents the full investment in attracting, supporting, and retaining the workforce that drives Housing
Catalyst’s operations and mission. Budget vs. Pro forma Overview:
• 2026 Operating Expenses: $686,198
Page 17 of 116 29
• 2025 Operating Expenses: $589,313
• Net Change: $96,885; 16%
• % of Total Cost Center Expenses: 13%
The Talent Management Cost Center is budgeted to see an increase in operating expenses for 2026.
Key drivers include:
• Consultants: Housing Catalyst has engaged external consultants to continue to guide the HRIS
implementation process, which is expected to streamline Talent Management operations and
improve payroll and benefits administration. Consultant fees are projected to increase by $14,444,
reflecting a 41% rise over 2025 levels.
• Training: The agency has committed to an expanded training initiative in 2026 to foster
professional development across all departments. The budget for companywide training is set to
rise by $38,161, a 44% increase compared to 2025, ensuring that employees are equipped with
the skills needed to meet the agency's evolving needs. Despite this increase the cost of training
(including associated travel) still falls within industry benchmarks.
• Software License & Implementation: The 2026 budget includes $26,311 increase for software
license fees due to the cost of the new system which incorporates payroll processing fees that
were previously separated out. This amount is offset by reduction of ($14,777) in implementation
costs for the new HRIS system and ($17,202) in payroll processing fees.
• Insurance: The 2026 budget reflects an increase of $21,896, primarily due to the reclassification
of Sexual Abuse and Molestation (SAM) and General Liability insurance premiums to this cost
center. Because these coverages apply to all employees, their costs are now allocated through
the Talent Management Cost Center to ensure that insurance expenses are distributed
proportionally across all departments.
Overall, the investment in Talent Management infrastructure and workforce development reflects Housing
Catalyst’s commitment to supporting its employees and ensuring operational excellence.
TECHNOLOGY COST CENTER
The Technology Cost Center includes all expenses related to IT infrastructure, software, hardware, and
support services that sustain Housing Catalyst’s operations. In 2026, the Agency will continue to invest
heavily in digital infrastructure and system efficiency as it transitions away from City-managed IT services
and strengthens internal capacity.
A new full-time equivalent (FTE) was added on October 1, 2025, funded through Catalyst Funds,
contributing to the year-over-year increase in labor costs. In addition, increased software licensing,
hardware upgrades, and managed service contracts are key drivers of the overall rise in expenses for
2026. Budget vs. Pro forma Overview:
• 2026 Budgeted Operating Expenses: $1,039,765
• 2025 Pro forma Operating Expenses: $833,443
Page 18 of 116 30
• Net Change: $206,322; 25%
• % of Total Cost Center Expenses: 20%
Key drivers include:
• Labor Expenses: Labor costs are budgeted at $248,844, an increase of $111,393 (81%) over
2025, reflecting the addition of the new FTE and the increased workload associated with Yardi
optimization and IT system integration initiatives.
• Managed Services: Managed service costs are increasing by $120,730, as 2026 represents a
transition year with temporary overlap between the outgoing City-managed IT contract and the
new third-party provider. These costs are expected to decline in future years as Housing Catalyst
assumes more internal control over IT functions and realizes efficiencies from the added FTE.
Overall, the Technology Cost Center reflects Housing Catalyst’s continued commitment to strengthening
its IT environment, modernizing systems, and enhancing operational resilience as the Agency grows.
FINANCIAL SERVICES COST CENTER
The Financial Services Cost Center provides comprehensive accounting and financial management
support for all Housing Catalyst operations. This includes transactional activities such as accounts
payable, receivable, and cash management, as well as development and asset-level reporting. The
department also provides full accounting services for eight LIHTC projects, including preparation of stand-
alone audits, investor reporting, and compliance with partnership requirements.
In addition, Financial Services oversees HUD financial reporting for several voucher programs and
provides complete accounting and financial reporting for the Wellington portfolio, including preparation of
separate board presentations for that entity. These responsibilities ensure consistency, transparency,
and compliance across all Housing Catalyst programs and affiliated entities.
The department continues to strengthen internal controls, improve accuracy in development draw
preparation, and enhance reporting systems to support the Agency’s growing portfolio and strategic
objectives. Budget vs. Pro forma Overview:
• 2026 Operating Expenses: $1,279,462
• 2025 Operating Expenses: $1,230,150
• Net Change: $49,312; 4%
• % of Total Cost Center Expenses: 25%
Key drivers include:
• Increased Labor Costs: Labor remains the largest component of the cost center and accounts
for the majority of the increase. Salaries and wages are rising by $57,898, 6%, reflecting market
adjustments, regular benefit increases, and performance-based pay. This is partially offset by a
($30,400) reduction in recruiting expenses, which are not expected to recur in 2026.
Page 19 of 116 31
• Consultants and Professional Services: Consulting costs are expected to increase by $10,795,
28%, reflecting continued engagement of external financial advisors to support risk management.
• Training and Professional Development: Training and associated travel costs are expected to
increase by $13,854, nearly doubling over 2025. The increase reflects the onboarding of
additional professional accounting staff, the need to maintain proficiency with evolving accounting
standards, and ongoing staff development in internal controls and Yardi utilization.
Overall, the 2026 budget reflects the growing complexity of Housing Catalyst’s financial operations. The
Financial Services team continues to balance efficiency with enhanced transparency, supporting higher
transaction volumes, increased reporting demands, and expanded oversight responsibilities across the
organization.
COMMUNICATIONS COST CENTER
The Communications Cost Center was established in the 2025 budget to break out and centralize all
expenses related to internal and external communications, branding, and public relations. This cost
center enables Housing Catalyst to track and manage communication-related expenses separately from
administrative labor costs, providing a clearer view of communications and marketing efforts across the
agency. Budget vs. Pro forma Overview:
• 2026 Operating Expenses: $279,123
• 2025 Pro forma Operating Expenses: $259,693
• Net Change: $19,430, 7%
• % of Total Cost Center Expenses: 5%
Key drivers include:
• Labor Expenses: The largest portion of the cost center's budget is dedicated to labor, with total
salaries and benefits projected to increase due to regular increases of $11,153 or 5%.
• Training and Professional Development: Training and professional development is being
increased to reflect investment in this team with an increase of $4,584. This has been allocated
for staff training, conferences, and travel to ensure the communications team stays informed
about the latest industry trends, tools, and best practices.
Overall, the Communications Cost Center reflects Housing Catalyst’s investment in building a strong,
centralized communications function to support its mission and the strategic goal of building community
support for affordable housing.
ADMINISTRATION COST CENTER
The Administration Cost Center covers the labor costs and associated expenses for Housing Catalyst’s
executive team, board related, and administrative support staff. This includes costs related to executive
oversight, strategic leadership, and general administrative functions that are essential for the day-to-day
operations of the agency.
Page 20 of 116 32
Budget vs. Pro forma Overview:
• 2026 Budgeted Operating Expenses: $1,719,549
• 2025 Pro forma Operating Expenses: $1,519,086
• Net Change: $200,463; 13%
• % of Total Cost Center Expenses: 33%
Key drivers include:
• Labor Expenses: The labor expenses for 2026 are budgeted to increase by $124,883, 10%
representing a regular benefit, market and performance pool increases.
• Training and Professional Development: Staff training, conferences, and associated travel are
expected to increase by $21,956, as the agency continues to invest in professional development
for its administrative and executive teams.
• Insurance: The combined insurance expense is showing an increase of $7,760 due to reclassing
the deadly weapons policy to this cost center offset by slight expected decrease in Directors and
Officers.
SALES, GENERAL & ADMINISTRATIVE (SG&A) COST CENTER
The SG&A Cost Center encompasses a range of expenses critical to Housing Catalyst’s operations. The
primary costs are related to the agency’s three facilities: the development offices on Oak Street, the main
office on Mountain Avenue, and the maintenance offices on Riverside Avenue. These costs include
utilities and facility maintenance, which are essential to supporting the agency’s day-to-day functions. Budget vs. Pro forma Overview:
• 2026 Budgeted Operating Expenses: $217,961
• 2025 Pro forma Operating Expenses: $279,197
• Net Change: ($61,693, 22%)
• % of Total Cost Center Expenses: 4%
Key drivers include:
• Utilities Expenses: Increasing by $9,457 due to higher expected rates.
• Maintenance: Costs are expected to go down due to efficiencies in the maintenance department.
• Insurance: Reclassifications of certain policies to other cost centers resulting in a reduction of
$24,277.
Page 21 of 116 33
BUSINESS UNIT S
Housing Catalyst operates through eight primary business units: Rental Assistance, Real Estate
Development, Resident Services, Maintenance, Property Management, the General Fund, Catalyst
Funds, and Development Services. Each business unit functions as a distinct line of business within the
Agency, maintaining its own budget, performance targets, and accountability measures.
Business unit costs are recovered through a combination of billing arrangements between Housing
Catalyst and its managed programs, development projects, real estate portfolios, and affiliated entities.
This structure ensures that each business unit operates with financial transparency and is designed to
be self-sustaining to the extent possible, while advancing the Agency’s strategic and mission-driven
goals.
Figure 8 below illustrates the Net Operating Income (NOI) by business unit as a percentage of the total,
highlighting the balance between revenue-generating and mission-driven functions. The chart shows that
several units produce operating surpluses that help offset the intentional deficits of others—an essential
feature of Housing Catalyst’s cross-subsidization model.
This balance allows the Agency to leverage the strength of its revenue-generating units to subsidize
mission-focused departments that provide direct support to residents and the community. The
aggregated NOI figures differ slightly from the Agency-wide total because Central Office Cost Centers
(COCCs) appear with a positive NOI in this view. This occurs because COCCs record related non-
operating expenses below the line, while their costs are allocated to the business units they support. As
a result, minor variances may appear when viewing NOI by business unit versus at the consolidated
Agency level.
In 2026, Property Management, the General Fund, and Catalyst Funds are projected to generate positive
NOI, providing the primary sources of the Agency’s operational surplus. Rental Assistance (and
associated site staff recapture) is expected to break even, consistent with the model’s design to align
administrative revenue with program costs.
Development Services is projected to operate at a loss, reflecting the cyclical nature of the development
process. As discussed earlier in this report, expenses for this department are often incurred in advance
of revenue recognition. These timing differences are anticipated and managed through the Agency’s
reserve policy, maintaining financial stability across the multi-year development cycle.
Maintenance is forecast to operate at a modest loss of ($17,956) as operational improvements continue
to enhance efficiency and increase billable field time. Resident Services remains mission-driven and is
projected to operate at a deficit, reflecting the limited availability of external grant funding and
reimbursement sources.
Page 22 of 116 34
Figure 8 - Net Operating Income by Business Unit
Each business unit is evaluated individually to assess its financial performance, efficiency, and
contribution to Housing Catalyst’s strategic and mission-driven goals. Results for each business unit are
reviewed in detail within the following section.
Business Unit Details
MAINTENANCE DEPARTMENT
The Maintenance Department is vital to Housing Catalyst’s operational success, ensuring that all
properties remain safe, functional, and well-maintained for residents. The team manages routine work
orders, preventive maintenance, unit turns, and capital improvement projects across the portfolio, directly
supporting property performance and resident satisfaction.
The 2026 budget continues Housing Catalyst’s multi-year effort to improve field efficiency, service
delivery, and cost recovery. To support these goals, the Agency has budgeted for a new working
Maintenance Supervisor position, funded through Catalyst Funds, to strengthen oversight and increase
billable field capacity. Once implemented, both supervisors will target spending approximately 50% of
their time in the field, enhancing responsiveness and hands-on leadership.
In parallel, the department is streamlining administrative processes to reduce overhead and align staffing
more closely with operational needs. These initiatives are expected to improve technician utilization,
enhance transparency in billing, and drive long-term cost efficiency across the portfolio. Budget vs. Pro forma Overview:
• 2026 Budgeted Net Operating Loss: ($17,956)
• 2025 Pro forma Net Operating Loss: ($12,577)
• Net Change: ($5,380, 43%)
Catalyst Funds,
$62,134 , 3%
Development Dept.,
$(755,203), -32%
Maintenance Dept.,
$(17,956), -1%Property Management
Dept., $831,440 , 36%
Rental Assistance
Dept., $-, 0%
Resident Services Dept.,
$(230,806), -10%
Site Staff Recapture,
$1,183 , 0%
General Fund(s),
$432,311 , 18%
Page 23 of 116 35
Key drivers include:
• Revenue: Increasing by $77,200, primarily due to additional billable hours generated by
converting an existing supervisor to a field-based role and adding a second working supervisor
(both billing approximately 50% of their time).
• Catalyst Funds: $145,000 in Catalyst Funds have been designated to offset the cost of the new
supervisor position, allowing the department to implement structural improvements without
passing costs to properties.
• Intra-Co Billings: Decreasing by ($217,500) due to reduced utilization of department
management time on development-related projects.
• Labor Expenses: Increasing by $12,208, reflecting standard market and performance-based
adjustments, partially offset by a reduction in FTE.
• Maintenance & Vehicle Expenses: Declining by ($18,900) as a result of efficiency gains and
lower utilization rates.
After accounting for $43,403 in non-operating expenses (interest, depreciation, and amortization), the
department projects a total bottom-line net loss of ($61,360) for 2026.
Overall, the 2026 budget reflects a strategic departmental modernization aimed at improving service
delivery, optimizing staff utilization, and advancing Housing Catalyst’s long-term goal of establishing a
more efficient, self-sustaining maintenance operation.
REAL ESTATE DEVELOPMENT DEPARTMENT
The Real Estate Development Department is staffed by a highly skilled team with deep technical expertise
in affordable housing finance, construction, and project management. The department’s funding comes
primarily from fees earned during the acquisition, construction, and renovation of affordable housing
projects. Because development revenue fluctuates with project timing, the department maintains 12–18
months of operating reserves to ensure stability and continuity of operations during periods of lower fee
activity. Interest earned on these reserves provides a modest source of non-operating income. Budget vs. Pro forma Overview:
• 2026 Budgeted Net Operating Loss: ($755,203)
• 2025 Pro forma Net Operating Loss: ($154,348)
• Net Change: ($600,855, 389%)
Key drivers include:
• Revenue: Decreasing by ($458,813, 25%) due primarily to reduction in acquisition and disposition
fees of ($450,000). With additional reduction of expected interest income and other
miscellaneous income.
• Labor Expenses: Expected to increase by $138,614, 17%, due to regular increases benefits,
market and performance pools.
Page 24 of 116 36
The department is budgeted to generate approximately $1,215,375 in earned development fees from the
Village on Eastbrook project, along with an estimated $50,000 in disposition fees from final Villages, Ltd.
property sales as part of the ongoing portfolio reorganization.
As of the date of this report, the department holds $3.09 million in cash and $7.4 million in deferred
developer fees receivable. Deferred developer fees may be collected when individual project cash flows
permit, as determined annually during the audit and waterfall calculation process.
The department’s monthly operating cost averages $151,000, which aligns with its target of maintaining
12–18 months of cash reserves to support operations during periods between fee-generating project
closings. This reserve strategy provides a strong liquidity position and ensures that Development can
continue advancing new projects even in years when revenue recognition is delayed.
After non-operating items, the department projects a total bottom-line loss of ($729,761) for 2026. This
result is consistent with the cyclical nature of development activity, where expenses are incurred in
advance of revenue recognition. Over a multi-year horizon, the department remains a strong contributor
to the Agency’s financial health, having generated more than $11 million in development revenue against
$9 million in expenses over the past five years.
RESIDENT SERVICES DEPARTMENT
The Resident Services Department delivers a wide range of programs designed to support Housing
Catalyst residents in achieving housing stability, self-sufficiency, and overall well-being. Core initiatives
include the HUD-funded Family Self-Sufficiency (FSS) program (JumpStart), Permanent Supportive
Housing (PSH) services for residents at Mason Place and Redtail Ponds, and various supportive services
at affordable housing communities.
For 2026, the department continues to focus on housing stability, education, health and wellness, and
resident engagement, while aligning services with the properties and residents that have the highest
demonstrated need. Budget vs. Pro forma Overview:
• 2026 Budgeted Net Operating Loss: ($230,806)
• 2025 Pro forma Net Operating Loss: ($194,638)
• Net Change: ($36,168)
Key drivers include:
• Grant Revenue: Increasing by $116,269, primarily due to the re-award of the Larimer County
Behavioral Health Grant in October 2025 for $100,000, which offsets clinician costs equally across
Mason Place and Redtail PSH projects. Additional inflationary adjustments in other grants make
up the balance.
• Resident Services Fee Income: Decreasing by ($118,781, 9%), reflecting the reduction of 1
FTE in the affordable housing program.
• Mission Driven Support: Declining by ($189,575, 100%), as the department anticipates that
2026 costs will be fully covered through a combination of grants, property payments, and Voucher
Page 25 of 116 37
Enhancement Funds. In prior years, mission support credits were provided to PSH properties that
could not fully cover program costs.
• Intra-Co Billings: Decreasing ($48,445, 100%) due to the director’s focus shifting internally within
the department rather than supporting Property Management activities.
• Intra-Co Allocations: Increasing by $45,883, driven by an increase in the overall Central Office
cost center pool, not a change in the department’s allocation percentage.
• Labor Expenses: Increasing by $25,934, 2%, due to regular market, performance, and benefit
adjustments, partially offset by the reduction of 1.5 FTEs.
• External Resident Service Providers: Increasing by $194,770; however, these costs are fully
offset by grant funding and property payments. Beginning in 2026, Housing Catalyst is updating
its accounting treatment to report 100% of these costs within Resident Services for greater
transparency and consistency.
To maximize impact and efficiency, the department is refining its service delivery model for the affordable
housing program. In 2026, services will be focused for two LIHTC communities—Village on Shields-
Richmond (Village on Shields, LLLP) and Village on Horsetooth, LLLP—representing the highest resident
service needs. The department will conduct a full evaluation in 2025 to determine whether to maintain,
expand, or modify this model in future years.
The cost of one full-time position, plus a pro-rata share of the director’s time and indirect expenses, will
be recaptured from the Richmond and Horsetooth properties. In addition, $100,000 in Catalyst Funds
has been allocated for a potential second Resident Services Specialist, contingent upon the outcome of
the 2025 evaluation.
For 2026, Resident Services is budgeted to receive $911,000 in grant revenue toward total operating
costs of $2.4 million. The department will also bill approximately $1.1 million directly to properties in the
PSH and affordable housing programs and collect an estimated $1,800 in medication reimbursements.
The department is not budgeted to incur additional non-operating expenses; therefore, the bottom line
remains at a net loss of ($230,806). This shortfall is subsidized by net operating income generated in
other business units, consistent with Housing Catalyst’s mission to provide vital, resident-centered
services that are not fully reimbursed through external funding.
PROPERTY MANAGEMENT DEPARTMENT
The Property Management Department is responsible for the day-to-day operations and financial
performance of Housing Catalyst’s real estate portfolio. Core functions include leasing, rent collection,
compliance monitoring, investor and lender reporting, resident engagement, and asset-level financial
oversight. The department plays a key role in maintaining stable operations across the portfolio while
ensuring regulatory and partnership obligations are met.
Revenue is generated primarily through management fees charged to properties under management, as
well as compliance and asset management fees. In 2026, the department will oversee approximately
$17.5 million in effective gross income across 1,146 units. In addition, Property Management will manage
the disposition of two Villages, Ltd., properties (representing 29 units) as part of ongoing portfolio
restructuring.
Page 26 of 116 38
Budget vs. Pro forma Overview:
• 2026 Budgeted Net Operating Income: $831,440
• 2025 Pro forma Net Operating Income: $812,259
• Net Change: $19,181; 2.4%
Key drivers include:
• Agency Revenue | Mission Driven Support: Total revenue is increasing by $139,738, 4.9%,
offset by a one-time $50,000 mission-based support allocation to Oak 140, which is temporarily
impacted by higher utility and maintenance costs. This allocation supports the project’s continued
stability while long-term corrective measures are implemented.
• Intra-Company Allocations | Billings: Allocations from central cost centers are increasing by
$46,662, 3.3%, reflecting the higher overall administrative cost pool, while intra-company billings
to Resident Services are decreasing by ($163,409), as referenced earlier.
• Labor Expense: Labor costs are rising by $148,202, 42.1%, primarily due to the reclassification
of a vacant support role into an Assistant Director position. This change reflects the expanding
scope of departmental initiatives and the need for additional leadership capacity to manage
process improvements, strengthen interdepartmental coordination, and support ongoing
operational efficiencies, including alignment efforts within the Maintenance Department. The
increase also includes standard market, benefit, and performance adjustments.
The department is not budgeted to generate any additional non-operating expenses; therefore, the
bottom line remains a positive $831,440 for 2026.
This continued positive performance underscores the Property Management team’s role as one of
Housing Catalyst’s key revenue-generating business units. The department’s efficiency and leadership
enhancements position it to drive portfolio-wide operational improvements, including improved
maintenance integration, stronger compliance oversight, and more effective cost management, ultimately
reinforcing Housing Catalyst’s capacity to sustain mission-critical programs across the organization.
SITE-LABOR DEPARTMENT
The Site-Labor Department captures the costs associated with property managers, portfolio managers,
and site-based support staff. By isolating these expenses, Housing Catalyst ensures a more accurate
and transparent cost recovery process across the managed portfolio. This structure supports a 100%
cost recovery model, where property-level labor expenses are billed directly to the properties that benefit
from those services.
The department is designed to operate at break-even, since its purpose is purely to allocate and recover
costs rather than generate a surplus. This approach ensures that the Agency is fully reimbursed for
staffing costs that exist solely due to the operation of its real estate assets, while preventing these
expenses from distorting the financial performance of other business units. Budget vs. Pro forma Overview:
• 2026 Budgeted Net Operating Income: $831,440
Page 27 of 116 39
• 2025 Pro forma Net Operating Income: $812,259
• Net Change: $19,181; 2.4%
Key drivers include:
• Intra-Company Allocations: Only IT and Talent Management (TM) cost centers are allocated to
site staff, as all other overhead pools relate to core Agency operations. These allocations are
increasing by $74,172, 27.3%, reflecting standard cost center growth based on pro-rata FTE
distribution.
• Labor Expense: Combined labor costs are increasing by $185,940, 11.9%, primarily due to
regular market, benefit, and performance adjustments.
The department is not budgeted to generate any non-operating expenses; therefore, the bottom line
remains slightly positive at $1,183 for 2026, consistent with the goal of full cost recovery and financial
neutrality.
RENTAL ASSISTANCE DEPARTMENT
The Rental Assistance Department administers Housing Catalyst’s federal rental assistance programs,
ensuring that eligible households receive stable housing through the timely and accurate allocation of
Housing Assistance Payments (HAP) to landlords. Core responsibilities include waitlist management,
income verification, participant recertifications, inspections, and determination of rental subsidies in
compliance with all federal program requirements.
In 2026, the department will manage approximately 1,496 vouchers, providing housing support to
households across the region. Of these, approximately 157 vouchers are administered on behalf of the
Department of Housing (DOH) under a contractual partnership, reflecting Housing Catalyst’s broader
regional role in delivering rental assistance. Each Housing Specialist manages an average of 212
vouchers, maintaining a caseload that balances regulatory compliance with responsive service delivery. Budget vs. Pro forma Overview:
• 2026 Budgeted Net Operating Income: $0
• 2025 Pro forma Net Operating Loss: ($91,354)
• Net Change: ($91,354, 100%)
Key drivers include:
• Operating Revenue (Cost Recapture): Increasing by $161,624, 8.7%, reflecting higher
underlying operating costs. Sufficient administrative fees and reserves are available to fund these
expenses, allowing the department to fully recapture costs while maintaining a balanced position.
• Intra-Company Allocations: Rising by $68,016, 10.5%, consistent with increases in the overall
Central Office Cost Center pools.
• Labor Expense: Remaining relatively stable, as regular market, benefit, and performance
adjustments are offset by a 0.2 FTE reduction.
Page 28 of 116 40
The department’s pro forma variance reflects the transition to the current accounting method, under which
100% of departmental costs are allocated to the voucher programs up to the amount supported by
available administrative fees and reserves. This ensures that Housing Catalyst is made whole for all costs
directly associated with program administration, while maintaining compliance with HUD’s financial
reporting requirements.
For 2026, the department is budgeted to operate at break-even ($0), consistent with the intent of the cost
recovery model. No additional non-operating income or losses are budgeted for this department.
GENERAL FUNDS - OTHER
The General Funds – Other business unit consolidates unrestricted income and expenses that are not
directly tied to Housing Catalyst’s primary operating departments. This category represents an aggregate
of several property codes that capture activities such as HC, LLC, general partnership interests, and
residual funds from prior RAD and Section 18 conversions. For presentation purposes, these are
combined to provide a clear summary of unrestricted operating activity. The remaining restricted residual
balance from the conversions is expected to be fully expended in 2026. Budget vs. Pro forma Overview:
• 2026 Budgeted Net Operating Income: $432,312
• 2025 Pro forma Net Operating Income: $357,823
• Net Change: $74,490, 20.8%
Key drivers include:
• Operating Revenue: Increasing by $150,610, 38.3%, primarily due to the change in accounting
treatment for Common Area Maintenance (CAM) reimbursements, which will now be recorded on
a gross basis rather than net. The increase also includes a $106,685 rise in administrative cost
recapture from Villages, Ltd., partially offset by a ($47,902) decrease in miscellaneous and
interest income.
• Insurance Expense: Increasing by $82,103, also related to the gross presentation of CAM
activity for consistency and transparency across reporting periods.
The business unit is budgeted to generate $1,368,585 in additional non-operating income, primarily from
soft debt interest accruals and related income, bringing the total bottom line to $1,800,897.
By consolidating these activities, this business unit provides a comprehensive view of unrestricted
resources that contribute to Housing Catalyst’s overall financial stability. The 2026 increase reflects both
the new reporting methodology and the timing of one-time recoveries, positioning the Agency to
strategically deploy unrestricted funds toward mission-aligned priorities.
CATALYST FUNDS
The Catalyst Funds business unit captures revenues and expenses related to discretionary funds
generated from unrestricted sources such as bond issuance proceeds, special limited partner fees, and
other one-time revenue streams. These funds are designated by the Executive Team to support strategic
or mission-aligned initiatives across the Agency.
Page 29 of 116 41
Budget vs. Pro Forma Overview:
• 2026 Budgeted Net Operating Income: $62,134
• 2025 Pro Forma Net Operating Income: $73,594
• Net Change: ($11,460, 15.6%)
Key drivers include:
• Operating Revenue: Increasing by $353,868, due to higher bond issuance fees projected in
2026.
• Utilization of Catalyst Funds: $369,000 is budgeted for 2026, compared to $0 in the 2025 pro
forma. However, this does not include approximately $67,250 in Catalyst Fund allocations
approved during the balance of 2025 but not budgeted at that time.
The department is not budgeted to generate any non-operating expenses; therefore, the bottom line
remains slightly positive at $62,134 for 2026.
The modest decline in budgeted NOI reflects the planned use of Catalyst Funds to advance strategic
initiatives and one-time investments that enhance Agency operations and mission delivery. Despite this
drawdown, the business unit remains a stable funding mechanism that allows Housing Catalyst to
respond flexibly to emerging opportunities and organizational priorities.
Voucher Programs Overview
The Voucher Programs administered by Housing Catalyst remain a vital resource for addressing housing
affordability across Northern Colorado. Through a combination of federal HUD programs and state-
administered vouchers through the Colorado Division of Housing (DOH), Housing Catalyst helps low-
income families, seniors, and individuals with disabilities access safe, stable housing in the private
market.
Demand continues to exceed available resources due to rising rents and limited affordable supply. The
Rental Assistance team remains focused on maximizing utilization, maintaining compliance, and
optimizing administrative funding amid variable federal appropriations and evolving HUD guidance.
For internal financial reporting purposes, Housing Catalyst presents the Voucher Programs separately
from the Agency’s other operating activities. This distinction provides clear visibility into federal and state
funding streams, program reserves, and the cost of program administration without distorting the
Agency’s core operating performance. Budget vs. Pro forma Overview (All Programs Combined):
• 2026 Budgeted Net Operating Income: ($658,469)
• 2025 Pro forma Net Operating Income: $87,083
• Net Change: ($745,552, 856%)
Page 30 of 116 42
Key drivers include:
• Operating Revenue: Decreasing by ($1,731,543, 7%) due to expected reduction in
congressional proration of both HAP and administrative fees.
• Voucher Management Expense: Increasing by $161,623, 9% reflecting higher costs in operating
the Rental Assistance Department (see that business unit detail section for further information).
• Housing Assistance Payments (HAP): A net reduction of ($1,130,437, 5%), reflecting lower
funding availability relative to increasing per-unit rent costs.
• MTW Expenses: An expected outlay of ($5,000) for landlord sign-on bonuses during the
upcoming budget year.
When evaluating the budgeted administrative fees against Voucher Management and other
administrative expenses, it is clear that a substantial portion of the projected Net Operating Loss is tied
to the cost of program administration as illustrated in Figure 9 below. These costs will be supported by
available reserves. Housing Catalyst forecasts an ending balance of approximately $783,000 in
administrative reserves at the close of 2025. No non-operating items are anticipated, leaving the bottom
line at ($658,469).
Figure 9 - Net Operating Income (Loss) by Type
PROGRAM SCALE AND UTILIZATION
In 2026, Housing Catalyst’s Annual Contributions Contract (ACC) authorizes 1,747 HUD-funded
vouchers, supplemented by 157 vouchers administered for the Colorado Division of Housing (DOH), for
a total of 1,904 authorized vouchers. Based on current funding and rent levels, approximately 1,496
vouchers are expected to be actively leased, including DOH-administered vouchers.
HAP Related Administration Related
Net Operating Loss By Type $35,776 $(694,245)
$(800,000)
$(700,000)
$(600,000)
$(500,000)
$(400,000)
$(300,000)
$(200,000)
$(100,000)
$-
$100,000
Net Operating Income (Loss) by Type
Page 31 of 116 43
While the number of households served is slightly below the total ACC authority, budget utilization
remains strong with expectation that we achieve greater than 97% utilization on a dollar basis. This
reflects higher per-unit costs in the Fort Collins and Larimer County rental market, where rising contract
rents absorb available subsidy funding.
Additional details on the assumptions used in developing the 2026 budget can be found in the
Assumptions Report. In general, Housing Catalyst applied a conservative approach, assuming modest
reductions in funding and continued increases in average per-voucher costs. As of the date of this report
and during budget preparation, the federal government was in shutdown, and Congress had not passed
a budget. Given this uncertainty, Housing Catalyst assumed a funding reduction for 2026 to ensure the
budget reflects a prudent and conservative outlook.
Real Estate Portfolios
Housing Catalyst manages a diverse real estate portfolio consisting of affordable housing properties,
Low-Income Housing Tax Credit (LIHTC) developments, and other community housing initiatives. As of
2025, the portfolio spans multiple asset classes, including properties within Villages, Ltd., a 501(c)(3)
organization, various LIHTC projects designed to provide affordable housing to low-income families and
individuals, and Permanent Supportive Housing (PSH) for those requiring additional services. In total,
Housing Catalyst manages 1,206 residential units across its portfolio, offering housing solutions tailored
to the needs of Northern Colorado communities. This section outlines the key financial performance
metrics for each of these portfolios, along with critical budget considerations for 2026.
VILLAGES, LTD PORTFOLIO
Housing Catalyst manages Villages, Ltd, a 501(c)(3) corporation, and all its real estate holdings,
consisting of 236 affordable housing units across multiple properties. In 2021, the Housing Catalyst
Board of Commissioners was appointed as the Board of Directors for Villages, Ltd, making it a blended
component unit under GASB pronouncements.
The properties are managed using standard real estate principles to ensure long-term asset
preservation, positive net operating income, and adequate cash flow to meet ongoing capital and
operational needs. The consolidated 2026 budget is presented in the Exhibits, along with a detailed
summary of individual property budgets. Budget vs. Pro forma Overview:
• 2026 Budgeted Net Operating Income: $1,226,202
• 2025 Pro forma Net Operating Income: $1,328,174
• Net Change: ($101,972, 7.7%)
Key drivers include:
• Net Rental Income: Anticipating a ($144,704, 3.9%) due to higher vacancy loss assumptions
and continued repositioning of the portfolio.
• Grant Revenue: Decreasing by ($67,045, 100%) as no grants are expected to recur in 2026.
Page 32 of 116 44
• Interest Income: Declining by ($139,817, 36.5%) due to a conservative earnings assumption and
planned utilization of available reserves.
• Operating Expenses: Overall, operating expenses for Villages, Ltd. are projected to decrease
by (7.7%), driven by several notable changes:
o Administrative expenses are expected to go down by ($28,277, 2.3%) due to reduced
staffing costs and streamlined support services.
o Resident services costs will decrease by ($102,673, 100%), as the operations team will
be supporting financial referrals in 2026 and resident services affordable program will
target a more limited list of properties.
o Utilities are expected to go down by ($26,579, 8.2%) due to portfolio repositioning offset
by rate increases.
o Maintenance costs are expected to go down by ($117,413, 13.7%) driven by efficiencies,
repositioning of portfolio, and reduction in anticipated turnovers.
Villages, Ltd. is budgeted to incur ($489,105) in non-operating expenses, bringing the bottom line to
$737,097, an 87% decline from the 2025 pro forma. This decline is primarily due to the absence of prior-
year net gains from asset sales and administrative fees earned by Housing Catalyst for oversight of
Villages, Ltd.
The 2026 budget includes assumptions for the sale of the remaining two properties in the portfolio
reorganization, 1st Street and Myrtle, with an anticipated gain on sale of $1,558,338.
While Villages, Ltd. is projecting lower operating income in 2026, the overall outlook remains strong due
to prudent expense management, reduced turnover costs, and the planned completion of the portfolio
realignment. The upcoming property sales will further strengthen the organization’s liquidity and align the
portfolio with Housing Catalyst’s long-term strategic focus on sustainable, mission-driven housing.
LOW -INCOME HOUSING TAX CREDIT (LIHTC) PORTFOLIO
The Low-Income Housing Tax Credit (LIHTC) portfolio remains a key part of our strategy to provide
affordable housing for low-income individuals and families. The portfolio includes a diverse mix of
properties, offering both general affordable housing and Permanent Supportive Housing (PSH). While
PSH is a smaller component within the overall portfolio, it plays a vital role in meeting the needs of
residents requiring additional supportive services. Our approach is to maintain the stability and
operational efficiency of both general and supportive housing to ensure sustainable outcomes for all
residents.
The tax credit properties are budgeted to meet specific performance requirements outlined in the
respective limited partnership agreements. The budgets ensure performance required to meet the Debt
Service Coverage Ratio (DSCR), which measures the project’s ability to pay debt obligations from
operational cash flow.
Detailed 2026 property budgets and calculated DSCR results are provided in the Exhibits. We anticipate
meeting all DSCR requirements across the portfolio; however, both Permanent Supportive Housing
properties, Mason Place and Redtail Ponds, will require supplemental funding from the Voucher
Enhancement (VE) Fund to maintain DSCR compliance. This funding is only paid out if the project
requires it. The 2026 allocations are as follows:
Page 33 of 116 45
• Redtail Ponds: $20,000
• Mason Place: $80,000
In addition to meeting DSCR obligations, Housing Catalyst monitors investor expectations for tax credit
delivery and projected tax losses, which provide the financial return to limited partners. While the primary
investor benefit is generated through tax credits, maintaining alignment on projected losses supports
investor confidence and long-term partnership stability.
Each year, Housing Catalyst reviews final tax returns and audited financials to ensure alignment between
investor projections and actual results. This process also informs internal analysis of waterfall
distributions, deferred developer fee repayments, and overall property performance. By maintaining this
balance, meeting investor expectations while advancing Housing Catalyst’s financial objectives, the
Agency supports both short-term compliance and long-term sustainability across its LIHTC portfolio.
The following section provides a detailed summary of property-level performance for all LIHTC assets,
including operating results, DSCR outcomes, and compliance indicators for the 2026 budget year.
Permanent Supportive Housing (PSH) Projects
According to the 2024 State of Homelessness report from the Northern Colorado Continuum of Care,
Permanent Supportive Housing (PSH) remains a critical tool for addressing homelessness in our
community. The report highlights that single adults, families, and youth assessed as needing supportive
housing often face limited access to units with adequate services. To address this need, Housing Catalyst
manages two PSH projects: Mason Place and Redtail Ponds. These properties provide essential housing
and support services to individuals experiencing chronic homelessness or other housing barriers.
These PSH projects are designed not only to offer affordable housing, but also to provide the additional
supportive services necessary for long-term stability. However, balancing the financial goals of these
projects presents unique challenges.
REDTAIL PONDS PERMANENT SUPPORTIVE HOUSING, LLLP
Redtail Ponds Permanent Supportive Housing is a 60-apartment project that was developed and is
managed by Housing Catalyst. Financing for the project came through multiple sources including federal
tax credits. Budget vs. Pro forma Overview:
• 2026 Budgeted Net Operating Income: $240,855
• 2025 Pro forma Net Operating Income: $162,9370F
1
• Net Change: $77,918, 48.1%
• DSCR Target: 1.20
• DSCR Budgeted Projection: 1.90
1 Note: The 2025 pro forma results for Mason Place and Redtail Ponds have been amended to include forecasted Mission Based Support
expected to be recorded but not yet booked as of the reporting date. This adjustment provides a more accurate comparison of operating
performance and DSCR between years.
Page 34 of 116 46
Key drivers include:
• Operating Revenue: Increased by $80,946, 5.5% due to addition of new $50k Larimer County
grant award and other regular inflationary rental and grant increases.
• Administrative Expenses: Decreased by ($81,834, 20%) almost all from a drop in security
services absorbed by the grant or flowing through the resident services line item.
• Resident Services: Budgeted at an increase of $21,940, 3.7% (net of $20k VE Fund
contributions) due to inflationary increases.
• Utilities: Remain almost flat at a 1% drop.
• Maintenance: Decreased by ($23,433, 11.3%) due to reduction in preventative maintenance and
fewer unit turns resulting in lower unit turn costs.
The Redtail Ponds property is budgeted to generate ($612,463) in non-operating losses bringing the
bottom-line loss to ($371,608) which decreased by 16.5% compared to the 2025 pro forma.
MASON PLACE, LLLP
Mason Place is a 60-apartment project that was developed and is managed by Housing Catalyst.
Financing for the project came through multiple sources including federal tax credits. Budget vs. Pro forma Overview:
• 2026 Budgeted Net Operating Income: $154,032
• 2025 Pro forma Net Operating Income: $157,9061F
2
• Net Change: ($3,874, 2.4%)
• DSCR Target:1.20
• DSCR Budget Projection:1.24
Key drivers include:
• Effective Gross Income: Expected to increase modestly at $9,139, 1% due to reductions in other
tenant income offsetting expected gains in net potential rent.
• Administrative Expenses: Decreased by ($134,146, 91%) almost all from a drop in security
services absorbed by the grant or flowing through the resident services line item.
• Resident Services: Budgeted at $103,404, 24.3% increase due to absorption of skilled security
and normal annual inflationary increases offset by estimated $80k in VE Funding.
• Maintenance: Decreased by ($18,796, 10%) primarily due to reduction in preventative
maintenance and expected decrease in unit turns resulting in a reduction in unit turn cost.
• Taxes and Insurance: Increased by 12.5% mainly due to an increase in property rates.
2 Note: The 2025 pro forma results for Mason Place and Redtail Ponds have been amended to include forecasted Mission Based Support
expected to be recorded but not yet booked as of the reporting date. This adjustment provides a more accurate comparison of operating
performance and DSCR between years.
Page 35 of 116 47
The Mason Place property is budgeted to generate ($829,648) in non-operating losses bringing the
bottom-line loss to ($675,616).
Non-PSH Properties
VILLAGE ON PLUM, LLLP
Village on Plum is a 95-apartment project that was developed and is managed by Housing Catalyst.
Financing for the project came through multiple sources including federal tax credits. Budget vs. Pro forma Overview:
• 2026 Budgeted Net Operating Income: $720,846
• 2025 Pro forma Net Operating Income: $696,417
• Net Change: $24,429, 3.5%
• DSCR Target: 1.20
• DSCR Budget Projection: 2.09
Key drivers include:
• Administrative: Increased by $17,757, 4.6% which is primarily driven by property and
management labor and management related fees increasing by $12,298 and $8,385 respectively
offset by reduction in security, internet, and external compliance services.
• Resident Services: Decreased by ($52,629, 100%) as the operations team will be supporting
financial referrals in 2026.
• Utilities: Increasing by $2,933, 3% due to inflationary rates.
• Maintenance: Increasing by $5,699, 2%, due to savings in unit turns offsetting increases in other
areas.
• Insurance: Increased by $12,059, 14% due to increase in property valuation and expected rate
increases.
The Village on Plum property is budgeted to generate ($961,336) in non-operating losses bringing the
bottom-line loss to ($240,490) which is a reduction of 18.1% compared to the 2025 pro forma.
VILLAGE ON REDWOOD, LLLP
Village on Redwood is a 72-apartment project that was developed and is managed by Housing Catalyst.
Financing for the project came through multiple sources including federal tax credits. Budget vs. Pro forma Overview:
• 2025 Budgeted Net Operating Income: $201,800
• 2024 Pro forma Net Operating Income: $192,129
• Net Change: ($9,671, 5%)
• DCSR Target: 1.15
• DSCR Budget Projection: 1.35
Key drivers include:
Page 36 of 116 48
• Administrative: Increased by $42,264, 13%. Primarily due to regular increases in labor,
technology and management expenses.
• Resident Services: Decreased by ($29,088, 100%) as the operations team will be supporting
financial referrals in 2026.
• Utilities: Decrease of ($3,798, 4%) due to expected reductions in usage offset by rate increases.
• Maintenance: Decreased of ($11,961, 5%) due to reduction in number of unit turnovers expected
offset by increases in other maintenance categories.
• Insurance: Increasing by $6,805, 11% due to increased premiums.
The Village on Redwood property is budgeted to generate ($1,100,307) in additional non-operating
losses bringing the bottom-line loss to ($898,507) which decreased by 5.1% compared to the 2025 pro
forma.
Village on Shields, LLLP
Village on Shields is a 286-apartment project comprised of three buildings that were developed and are
managed by Housing Catalyst. Financing for the project came through multiple sources including federal
tax credits. Budget vs. Pro forma Overview:
• 2026 Budgeted Net Operating Income: $1,413,112
• 2025 Pro forma Net Operating Income: $1,504,045
• Net Change: ($90,933, 6.1%)
• DSCR Target: 1.15
• DSCR Budget Projection: 1.32
Key drivers include:
• Operating Revenue: Expected to increase by $291,401, 7.4% reflecting higher rent adjustments
across two properties to align with market trends. The increase also captures a correction to prior-
year pro forma assumptions, where rents were not fully escalated year over year.
• Administrative: Increasing by $161,644, 18% reflecting the reallocation of staffing resources and
an increased FTE dedicated to these properties. The change also includes higher technology and
training costs to support the expanded role.
• Resident Services: Increased by $169,347, 107%. The Village on Shields-Richmond property is
one of the properties prioritized for expanded resident services. Based on the resident population
and identified needs, additional support and programming are being concentrated at this site.
• Utilities: Decrease of $24,495, 10% due to lower usage at Richmond offsetting all rate increases.
• Maintenance: Overall maintenance expenses increased by $49,440, 6.7% with expected
reductions in unit turnover counts and costs offsetting increases across other categories.
• Insurance: $26,216, 12% increase, primarily reflecting expected premium adjustments across
policy renewals.
The Village on Shields property is budgeted to generate an additional ($3,672,893) in non-operating
losses bringing the bottom-line loss to ($2,259,782).
Page 37 of 116 49
Village on Horsetooth, LLLP
Village on Horsetooth is a 96-apartment project that was developed and is managed by Housing Catalyst.
Financing for the project came through multiple sources including federal tax credits. Budget vs. Pro forma Overview:
• 2026 Budgeted Net Operating Income: $446,058
• 2025 Pro forma Net Operating Income: $482,434
• Net Change: ($36,376, 7.6%)
• DSCR Target: 1.15
• DSCR Budget Projection: 1.16
Key drivers include:
• Administrative: Expected to increase by $16,696, 3.5% due mostly to inflation within categories.
• Resident Services: Increased by $56,465, 107%. The Village on Horsetooth is one of the
properties prioritized for expanded resident services. Based on the resident population and
identified needs, additional support and programming are being concentrated at this site.
• Utilities: Expected to remain flat as anticipated usage reductions offset rate increases.
• Maintenance: Remained flat with savings in unit turn cost from reduced unit turns offsetting
inflation and other smaller increases across other categories.
• Insurance: Increasing $7,349, 9.2% based on expected rate increases across all insurance
types.
The Village on Horsetooth property is budgeted to generate an additional ($1,314,357) in non-operating
losses bringing the bottom-line loss to ($868,299) which is an increase of 3.9% over 2025.
Oak 140, LLLP
Oak 140 is a 79-apartment project that was developed and is managed by Housing Catalyst. The project
was devised in partnership with the Downtown Development Authority. Budget vs. Pro forma Overview:
• 2025 Budgeted Net Operating Income: $390,610
• 2024 Pro forma Net Operating Income: $400,406
• Net Change: ($9,796); (2.5%)
• DSCR Target:1.15
• DSCR Budget Projection: 1.16
Key drivers include:
• Administrative: Increasing by $33,789, 30% reflecting the reallocation of staffing resources and
an increased FTE dedicated to this property. The change also includes higher technology and
training costs to support the expanded role.
Page 38 of 116 50
• Resident Services: Decreased by ($31,913, 100%) as the operations team will be supporting
financial referrals in 2026.
• Utilities: Expected to remain flat as anticipated usage reductions offset rate increases.
• Maintenance: Slight $9,657, 5% increase focused on contract expenses and remaining flat
across other maintenance expenses.
• Insurance: Remaining relatively flat with savings from valuation corrections expected to offset
rate increases.
The Oak 140 property is budgeted to generate ($1,500,526) in non-operating losses bringing the bottom-
line loss to ($1,109,916), which is a 2.4% decrease over the 2025 pro forma.
Village on Impala, LLLP
Village on Impala consists of 62 newly constructed apartments located on former public housing sites,
adjacent to 12 renovated duplexes completed as part of the development’s rehabilitation phase in 2025.
The project achieved full occupancy in 2025 and represents Housing Catalyst’s newest LIHTC
community, expanding the organization’s portfolio of high-quality, affordable housing. Because the
property reached stabilization midyear, the variance between the 2025 pro forma and the 2026 budget is
larger than typical, reflecting the transition from initial lease-up and onboarding activities in 2025 to
stabilized operations in 2026. Budget vs. Pro forma Overview:
• 2026 Budgeted Net Operating Income: $716,948
• 2025 Pro forma Net Operating Income: $555,124
• Net Change: $161,824; 29.1%
• DSCR Target:1.15
• DSCR Budget Projection: 1.32
Key drivers include:
• Operating Revenue: Expected to increase by $324,452, 26% as the budget year represents full
year of stabilized activity.
• Administrative: Increasing by $74,977, 22% driven by full year of stabilized activities including
full year of management related expenses driven by revenue.
• Resident Services: Decreased by ($17,541, 100%) as the operations team will be supporting
financial referrals in 2026.
• Utilities: Increasing by $24,610, 33% due to both rate increases and reflection of full stabilized
year of operations and activity.
• Maintenance: Increasing by $66,898, 46.4% to account for a full year of operations.
• Insurance: Increased $8,551, 9.6% reflecting full-year premium costs in 2026 compared to the
partial-year coverage during the 2025 construction phase, as well as general premium rate
increases.
The Village on Impala property is budgeted to generate an additional ($953,780) in non-operating losses
bringing the bottom-line loss to ($236,831).
Page 39 of 116 51
WELLINGTON PORTFOLIO
The Wellington Housing Authority (WHA) completed a Section 18 disposition in 2021, converting 42
public housing units into tenant-based rental assistance vouchers. All 42 units transitioned to Wellington
Community Housing (WCH), a nonprofit corporation formed to own and operate the housing. Each unit
is supported by a Project-Based Voucher (PBV) attached to the apartment, ensuring long-term
affordability for residents.
Housing Catalyst continues to manage the 42 homes on behalf of Wellington Community Housing and
also administers the PBV vouchers, maintaining full operational oversight. The Wellington Housing
Authority entity remains active but no longer owns property. For reporting purposes, the budgets for WHA
and WCH are presented together in a consolidated view in the Exhibits to provide a clearer financial
picture.
The properties owned by Wellington Community Housing are not subject to DSCR or investor tax-loss
requirements typical of LIHTC projects. Instead, they are managed to operate within HUD-administered
PBV subsidy limits while meeting internal net operating income benchmarks to ensure long-term financial
sustainability and compliance. Budget vs. Pro forma Overview:
• 2026 Budgeted Net Operating Income: $200,375
• 2025 Pro forma Net Operating Income: $259,913
• Net Change:($59,538)
Key drivers include:
• Operating Revenue: Decreased by ($93,295, 11.4%) primarily due to one time receipt of public
housing disposition fees in the 2025 pro forma of over $65k coupled with slight increase in
vacancies and other tenant income offset by expected decline in doubtful accounts.
• Administrative: Increased by $9,040, 4.4%. This is primarily due to inflationary increases across
all categories offset by savings of $5.2k in management related fees tied to reduction in operating
revenue.
• Resident Services: Decreased by ($16,968, 100%) as the operations team will be supporting
financial referrals in 2026.
• Utilities: Decrease of ($2,314, 2.4%) due to rate changes.
• Maintenance: Decreased by ($31,698, 16.6%) due to anticipated reduction in unit turnovers and
associated costs offset by some increases in other categories.
• Insurance: Increased by $2,417, 7% due to anticipated increases in premiums.
The Wellington Community Housing property is budgeted to generate an additional ($75,828) in non-
operating losses bringing the bottom-line income to $124,547 which is a decrease of ($64,764, 34.2%)
compared to the 2025 pro forma.
Page 40 of 116 52
3-Year Rolling Budgets
In 2026, Housing Catalyst updated its 3-year rolling budget as part of our long-term financial planning
process. This forward-looking approach allows us to better anticipate and plan for future capital needs,
operational adjustments, and strategic initiatives. By projecting beyond a single fiscal year, we aim to
provide a clearer picture of the financial trajectory for our portfolio, ensuring greater stability and
preparedness for upcoming opportunities and challenges.
This 3-year rolling budget presentation serves as a high-level forecast and will continue to be refined in
future years as we gather more data and insights. Details of the 3-year projections can be found in the
Exhibits, which provides an overview of operating forecasts for the 2026-2028 period.
This forecast continues our commitment to sustainable financial planning, and we will continue to
enhance these projections to ensure Housing Catalyst remains well-positioned to achieve its long-term
goals.
Capital Budgets
For 2026, Housing Catalyst again developed a comprehensive capital improvements budget for
maintaining and enhancing the properties across its portfolio. As detailed in the Exhibits, each property
has been assigned a forecasted balance, planned deposits, and anticipated withdrawal requests for
necessary capital improvements and repairs. This budget reflects our commitment to long-term property
sustainability and ensuring that adequate reserves are maintained for future needs.
The total forecasted reserve balance across all properties at the end of 2025 is $2.12 million, with
$434,581 in planned deposits for 2026. However, withdrawal requests for the upcoming year total $1.30
million, resulting in a forecasted reserve balance of $1.25 million at year end across all properties.
Key highlights of the capital improvements budget include:
• LIHTC Portfolio is projected to have $1,029,616 in reserves after accounting for $703,041 in
withdrawal requests for 2026.
• Villages, Ltd. is projected to have $300,242 in reserves after accounting for $500,133 in
withdrawal requests. This portfolio has significant operating cash balances to fund the increased
reserves.
• Wellington will experience a shortfall of ($4,359) in reserves, with a forecasted deposit of $31,598,
ensuring adequate coverage for future capital needs. This property has sufficient operational cash
balances to fund the increased reserves necessary to fund the shortfall.
The proposed 2026 reserve funding across the portfolio totals $434,581, ensuring that Housing Catalyst
meets its long-term capital needs while maintaining fiscal stability. The budget emphasizes proactive
planning to meet expected needs across all portfolios.
In summary, this capital improvement plan reflects Housing Catalyst’s ongoing focus on balancing
immediate property needs with long-term sustainability goals. This approach ensures that we continue to
deliver quality housing while maintaining financial health for the years ahead.
Page 41 of 116 53
Conclusion
While this report provides a comprehensive overview of the 2026 budget projections, it is not exhaustive
of all the data prepared for this calendar year. Detailed line-item budgets for each entity and department
have been developed and are available for further review upon request. Certain detailed budget files are
included in the exhibits section to aid in user review. Additionally, the Budget Assumptions Report serves
as a companion document, outlining the key assumptions and rationale that underpin the financial
projections in this report. We encourage readers to review the Budget Assumptions Report to gain a
deeper understanding of the factors driving our budgetary decisions.
Housing Catalyst remains steadfast in its commitment to maximizing resources while continuously
improving property management, administrative oversight, and development activities. Each year brings
new opportunities to refine our processes, and in 2026 we have continued to enhance our billing models,
cost allocation methods, and financial monitoring tools. These refinements allow us to make more
informed business decisions, ensuring that our financial management aligns with the organization's
strategic goals.
This budget report represents the collaborative efforts of our directors, managers, and staff members,
whose dedication has been instrumental in its creation. The executive team is proud to present this report,
which reflects our ongoing commitment to fiscal responsibility and strategic growth. We look forward to
leveraging these insights as we move forward, advancing our mission to provide vibrant, sustainable
communities throughout Northern Colorado.
Page 42 of 116 54
Appendix – Key Definitions
Net Income: Net income (NI), also called net earnings, is calculated as sales minus cost of goods sold, selling,
general and administrative expenses, operating expenses, depreciation, interest, taxes, and other expenses. It is a
useful number for investors to assess how much revenue exceeds the expenses of an organization. This number
appears on a company's income statement and is also an indicator of a company's profitability. (Investopedia, 2021)
Net Operating Income: Net operating income is a measure of profitability used to evaluate performance from
operations, particularly for real estate. It is calculated as total operating revenue minus total operating expenses,
before interest, taxes, depreciation, and amortization. In other industries, this metric is often referred to as Earnings
Before Interest, Taxes, Depreciation, and Amortization (EBITDA).
Net Cash Flow: Net cash flow represents the difference between total cash inflows and outflows over a defined
period. It indicates an organization’s ability to generate sufficient liquidity to meet obligations, reinvest in operations,
and maintain financial stability (Bankrate, 2021).
Debt Service Coverage Ratio (DSCR): The debt service coverage ratio measures a property’s ability to cover its
debt obligations from net operating income. It is calculated as NOI divided by total debt service (principal and
interest). A DSCR above 1.0 indicates that operating income exceeds debt obligations, while a DSCR below 1.0
suggests insufficient income to meet debt payments. Lenders and investors commonly require minimum DSCR
thresholds—typically between 1.15 and 1.25—to ensure financial sustainability.
Operating Reserves: Funds set aside to cover short-term operating shortfalls, unexpected expenses, or timing
gaps between revenue and expenditures. Operating reserves provide liquidity and stability, ensuring continued
operations during periods of funding disruption or unanticipated costs.
Capital Reserves: Restricted funds established to finance major repairs, replacements, or improvements to
physical assets over time. Capital reserves are typically based on a long-term needs assessment and ensure that
properties remain in good condition without relying on operational cash flow.
Capital Expenditures (CapEx): Significant outlays of funds used to acquire, improve, or extend the life of long-
term assets such as buildings, systems, or major equipment. CapEx is not included in operating expenses but
impacts future financial performance through depreciation and maintenance savings.
Proration (HUD Funding): In HUD programs, proration refers to the adjustment made to funding levels when
Congress allocates less than the full amount authorized. For example, a 93% proration means that programs
receive 93% of their eligible funding amount for the year.
Mission-Based Support: Internal funding allocated by Housing Catalyst to offset program or property-level costs
that advance the organization’s mission but are not fully supported by external funding sources. Mission-Based
Support may be applied to departments such as Resident Services or Permanent Supportive Housing properties to
ensure continuity of critical resident programs.
Catalyst Funds: Designated internal funds generated from ancillary revenue sources—such as bond issuance
proceeds, developer fees, or special partner distributions—earmarked for one-time strategic initiatives. Catalyst
Funds are used to support innovation, process improvement, or mission-aligned projects that promote long-term
operational and organizational growth.
Page 43 of 116 55
Exhibits
Exhibit 1: Agency Budget Reports
Exhibit 2: Voucher Budget Reports
Exhibit 3: LIHTC Portfolio Budget Reports
Exhibit 4: Villages, Ltd. Budget Reports
Exhibit 5: Wellington Budget Reports
Exhibit 6: Capital Summary Budget Reports
Exhibit 7: 3 Year Rolling Budgets
Page 44 of 116 56
1a|Agency with Devopment
Description 01/25 - 12/25 01/26 - 12/26 Amount Percent
Proforma Advanced Budget Variance Variance
OPERATING REVENUES
RENTAL INCOME
NET RENTAL INCOME
POTENTIAL RENTAL INCOME
CAM Estimate 11,397 103,224 91,827 805.7%
NET POTENTIAL RENT 11,397 103,224 91,827 805.7%
NET POTENTIAL RENT ADJUSTMENTS
Storage Rent 1,200 0 -1,200 -100.0%
NET POTENTIAL RENT ADJUSTMENTS 1,200 0 -1,200 -100.0%
NET RENTAL INCOME 12,597 103,224 90,627 719.4%
EFFECTIVE GROSS INCOME 12,597 103,224 90,627 719.4%
GRANT REVENUE
Grants - Family Self Sufficiency 248,316 265,062 16,746 6.7%
Grants - HUD CoC 532,220 522,564 -9,656 -1.8%
Grants - Non Gov't 14,284 23,464 9,180 64.3%
Grants - County 0 100,000 100,000
TOTAL GRANT REVENUE 794,821 911,090 116,269 14.6%
AGENCY REVENUE
Property Management Fee Revenue 1,387,219 1,443,929 56,710 4.1%
Accounting Fee Revenue 960,277 985,867 25,590 2.7%
Asset Management Revenue 333,520 361,536 28,016 8.4%
Site Labor Cost Recapture 1,654,741 1,917,210 262,469 15.9%
Technology Management Cost Recapture 172,170 201,400 29,230 17.0%
Insurance Administration Fee Revenue 17,705 19,044 1,339 7.6%
Administrative OH Cost Recapture 176,946 283,631 106,685 60.3%
Board Administration Fee Revenue 73,000 73,000 0 0.0%
Voucher Management Fees Earned 1,716,220 1,865,296 149,076 8.7%
Voucher DOH Management Fees Earned 144,454 157,001 12,547 8.7%
Resident Services Fee Income 1,272,284 1,153,503 -118,781 -9.3%
Compliance Services Revenue 116,828 119,952 3,124 2.7%
Developer Fee Earned or Collected 1,200,125 1,215,375 15,250 1.3%
Acquisition and Disposition Fees 500,000 50,000 -450,000 -90.0%
Work Order Revenue 668,048 910,755 242,707 36.3%
Maintenance - Preventative Contracts 288,445 261,300 -27,145 -9.4%
Maint Project Mgmt Revenue 157,728 114,109 -43,619 -27.7%
Maintenance Purchasing Cost Recapture 45,438 0 -45,438 -100.0%
Unit Turn Revenue 217,288 168,780 -48,508 -22.3%
Capital Asset Management Revenue 25,427 50,386 24,959 98.2%
RS Clinical Billing Revenue 3,343 1,800 -1,543 -46.2%
TOTAL AGENCY REVENUE 11,131,206 11,353,874 222,668 2.0%
OTHER INCOME
2 Year Annual Comparison - Current
Project Start Date = 1/1/2026
Cutoff Date = 08/2025
Page 45 of 116 57
1a|Agency with Devopment
Description 01/25 - 12/25 01/26 - 12/26 Amount Percent
Proforma Advanced Budget Variance Variance
Project Start Date = 1/1/2026
Cutoff Date = 08/2025
Miscellaneous Income 95,573 0 -95,573 -100.0%
Bond Issuance Fees 0 423,934 423,934
Bond Monitoring Fees 13,200 7,200 -6,000 -45.5%
Special Limited Partner Fees 0 0 0
Interest Income - Unrestricted 204,774 163,503 -41,271 -20.2%
HC Mission-Driven Support -189,575 -50,000 139,575 -73.6%
TOTAL OTHER INCOME 123,972 544,637 420,665 339.3%
TOTAL OPERATING REVENUE 12,062,596 12,912,825 850,229 7.0%
OPERATING EXPENSES
INTRA-CO ALLOCATIONS
Intra-Co Alloc: FIN 0 0 0
Intra-Co Alloc: TM 0 0 0
Intra-Co Alloc: IT 0 0 0
Intra-Co Alloc: IOH 0 0 0
Intra-Co Alloc: SGA 0 0 0
Catalyst Fund Allocations 0 0 0
Intra-Co Billings 0 0 0
Intra-Segment Alloc: RS Admin 0 0 0
TOTAL INTRA-Co ALLOCATIONS 0 0 0
DIRECT OPERATING EXPENSES
ADMINISTRATIVE
Labor Expenses
Salaries & Wages 7,730,152 8,432,578 702,426 9.1%
Fringe Pool Allocation 0 5 5
ER Benefit Contribution 537,399 598,260 60,861 11.3%
ER Life, Disability, Supplemental Insurance 85,179 84,300 -879 -1.0%
EAP Program 7,267 8,436 1,169 16.1%
MERP Program Reimbursements 67,862 45,000 -22,862 -33.7%
Workers Comp 89,493 80,088 -9,405 -10.5%
ER Retirement Contributions 750,406 843,060 92,654 12.3%
ER Payroll Taxes 125,455 142,680 17,225 13.7%
ER FAMLI 61,406 75,876 14,470 23.6%
Total Benefits Expenses 1,724,468 1,877,705 153,237 8.9%
Total Labor Expenses 9,454,620 10,310,283 855,663 9.1%
Legal Expense
Legal-Criminal Background Checks 1,140 1,865 725 63.6%
Legal-Tenant Screening 31 0 -31 -100.0%
Legal-General Expense 17,015 21,750 4,735 27.8%
Total Legal Expense 18,185 23,615 5,430 29.9%
Other Administrative Expenses
Page 46 of 116 58
1a|Agency with Devopment
Description 01/25 - 12/25 01/26 - 12/26 Amount Percent
Proforma Advanced Budget Variance Variance
Project Start Date = 1/1/2026
Cutoff Date = 08/2025
Staff Training & Conferences 103,453 148,191 44,738 43.2%
Companywide Training 77,170 85,000 7,830 10.1%
Education Assistance 15,601 26,500 10,899 69.9%
Travel, Lodging & Per Diems 36,847 89,740 52,893 143.5%
Mileage 10,432 10,367 -65 -0.6%
Meals - Business Partners 5,849 4,755 -1,094 -18.7%
Payroll Processing Fees 17,202 0 -17,202 -100.0%
Rating Agency Expenses 11,833 11,500 -333 -2.8%
Auditing & Tax Services 8,911 7,850 -1,061 -11.9%
Marketing 4,867 9,412 4,545 93.4%
Resident Relocation 0 0 0
Parking Fees 1,930 1,944 14 0.7%
Consultants 86,359 116,910 30,551 35.4%
RS Clinical Billing Expenses 0 400 400
Security Services 499 200 -299 -59.9%
Advertising 0 0 0
Temporary Administrative Labor 0 15,470 15,470
Employee Wellness 10,605 16,430 5,825 54.9%
Recruiting 39,350 22,090 -17,260 -43.9%
Miscellaneous Admin Expenses 25,374 22,509 -2,865 -11.3%
Total Other Administrative Expenses 456,282 589,267 132,985 29.1%
Technology Expenses
Managed Services - City 179,204 64,000 -115,204 -64.3%
Managed Services - Consultants 38,066 58,000 19,934 52.4%
Managed Services - Other 0 216,000 216,000
Software License Fees 307,725 327,367 19,642 6.4%
Software Support Agreements 4,000 0 -4,000 -100.0%
Software Implementations 14,777 3,200 -11,577 -78.3%
Computers and Peripherals 40,758 23,000 -17,758 -43.6%
Network Hardware 8,712 0 -8,712 -100.0%
Cable Services 240 0 -240 -100.0%
Telephone - Landline 40,895 18,600 -22,295 -54.5%
Telephone - Virtual & Conferencing 0 15,000 15,000
Internet Services 2,326 0 -2,326 -100.0%
Cellular - Phones | Tablets 68,451 40,326 -28,125 -41.1%
Web Hosting and Other 687 2,300 1,613 234.8%
Total Technology Expenses 705,839 767,793 61,954 8.8%
Compliance Expenses
Compliance Services - Internal 33 0 -33 -100.0%
Compliance Services - Consultants 38 0 -38 -100.0%
Total Compliance Expenses 71 0 -71 -100.0%
TOTAL ADMINISTRATIVE EXPENSES 10,634,997 11,690,957 1,055,960 9.9%
GENERAL EXPENSES
Page 47 of 116 59
1a|Agency with Devopment
Description 01/25 - 12/25 01/26 - 12/26 Amount Percent
Proforma Advanced Budget Variance Variance
Project Start Date = 1/1/2026
Cutoff Date = 08/2025
Resident Services
Resident Programming 13,664 11,167 -2,497 -18.3%
RS Client Assistance 4,363 5,736 1,373 31.5%
Resident Services - External 73,179 267,949 194,770 266.2%
Total Resident Services 91,206 284,852 193,646 212.3%
Utilities Expense
Water 7,558 12,684 5,126 67.8%
Electricity 14,678 16,015 1,337 9.1%
Gas 5,060 7,295 2,235 44.2%
Trash Removal - Recycling 136 1,224 1,088 800.0%
Trash Removal - Regular 7,436 7,739 303 4.1%
Total Utility Expenses 34,868 44,957 10,089 28.9%
Maintenance Expenses
Maintenance - On Call 6,981 996 -5,985 -85.7%
Maintenance - Uniforms 5,793 5,200 -593 -10.2%
Tools and Equipment 120 1,291 1,171 975.8%
Equipment Rentals 3,537 5,097 1,560 44.1%
Total General Maint Expense 16,432 12,583 -3,849 -23.4%
Supplies-Grounds 533 845 312 58.5%
Supplies-Appliances 0 0 0
Supplies-Electrical 86 72 -14 -16.3%
Supplies-Pest Control 46 48 2 4.3%
Supplies-Janitorial 1,361 1,550 189 13.9%
Supplies-General 6,936 5,137 -1,799 -25.9%
Supplies-Plumbing 8 0 -8 -100.0%
Supplies-HVAC 514 199 -315 -61.3%
Supplies-Doors 108 0 -108 -100.0%
Supplies-Windows 0 0 0
Total Supplies | Materials 9,593 7,851 -1,742 -18.2%
Contract-Work Orders - Internal 8,046 13,777 5,731 71.2%
Contract-Preventative - Internal 8,618 1,500 -7,118 -82.6%
Contract-Painting 0 0 0
Contract-System Services 4,614 10,655 6,041 130.9%
Contract-Access Control 0 356 356
Contract-Roof|Gutter 0 4,980 4,980
Contract-Pressure Washing 0 3,000 3,000
Contract-Carpet Cleaning 0 1,000 1,000
Contract-Electrical 95 0 -95 -100.0%
Contract-Pest Control 256 2,760 2,504 978.1%
Page 48 of 116 60
1a|Agency with Devopment
Description 01/25 - 12/25 01/26 - 12/26 Amount Percent
Proforma Advanced Budget Variance Variance
Project Start Date = 1/1/2026
Cutoff Date = 08/2025
Contract-Grounds 35,049 12,000 -23,049 -65.8%
Contract-Snow Removal 0 6,207 6,207
Contract-Tree Service 0 1,770 1,770
Contract-Janitorial 23,698 23,676 -22 -0.1%
Contract-Plumbing 1,894 1,865 -29 -1.5%
Contract-HVAC 8,724 1,623 -7,101 -81.4%
Contract-Alarms 918 966 48 5.2%
Contract-Irrigation Repairs 0 1,109 1,109
Contract-General 2,555 220 -2,335 -91.4%
Total Contract Costs 94,468 87,465 -7,003 -7.4%
Total Maintenance Expenses - Core 120,493 107,899 -12,594 -10.5%
Total Maintenance Expenses 120,493 107,899 -12,594 -10.5%
Vehicle-Fuel 17,583 16,974 -609 -3.5%
Vehicle-Repairs 10,087 8,996 -1,091 -10.8%
Vehicle-Fixed Fee Maintenance 763 10 -753 -98.7%
Vehicle-Lease 1,250 -3,441 -4,691 -375.3%
Total Vehicle Expenses 29,683 22,539 -7,144 -24.1%
Insurance & Taxes Expenses
Insurance - Property 25,523 95,504 69,981 274.2%
Insurance - Liability 7,249 10,018 2,769 38.2%
Insurance - Umbrella 220 7,000 6,780 3081.8%
Insurance - D&O | E&O 31,301 30,290 -1,011 -3.2%
Insurance - Auto 26,137 25,152 -985 -3.8%
Insurance - Specialty | Other 61,685 69,460 7,775 12.6%
Misc. Taxes & Licenses 4,389 300 -4,089 -93.2%
Total Tax & Insurance Expenses 156,503 237,724 81,221 51.9%
Other General Expenses
Membership and Fees 34,689 33,137 -1,552 -4.5%
Bank Fees 440 539 99 22.5%
Filing Fees 180 26 -154 -85.6%
Office Supplies 22,707 14,072 -8,635 -38.0%
Copier and Printer Usage | Supplies 19,587 15,673 -3,914 -20.0%
Postage Usage | Supplies 16,747 18,913 2,166 12.9%
Publications 1,582 2,282 700 44.2%
Small Office Equipment 2,389 4,337 1,948 81.5%
Meetings Expenses 12,534 42,406 29,872 238.3%
Miscellaneous General Expense 6,865 4,587 -2,278 -33.2%
Facilities Rent 13,686 0 -13,686 -100.0%
Total Other General Expenses 131,406 135,973 4,567 3.5%
TOTAL GENERAL EXPENSES 564,159 833,943 269,784 47.8%
TOTAL DIRECT OPERATING EXPENSES 11,199,156 12,524,900 1,325,744 11.8%
Page 49 of 116 61
1a|Agency with Devopment
Description 01/25 - 12/25 01/26 - 12/26 Amount Percent
Proforma Advanced Budget Variance Variance
Project Start Date = 1/1/2026
Cutoff Date = 08/2025
TOTAL OPERATING EXPENSES 11,199,155 12,524,900 1,325,745 11.8%
NET OPERATING INCOME 863,440 387,925 -475,515 -55.1%
NON-OPERATING INCOME | EXPENSE
NON OPERATING INCOME
Interest Income - Soft Debt 1,544,481 1,466,859 -77,622 -5.0%
Interest Income - Hard Debt 201,992 201,315 -677 -0.3%
Grant Revenue - Non Operating 0 0 0
TOTAL NON OPERATING INCOME 1,746,473 1,668,174 -78,299 -4.5%
NON OPERATING EXPENSES
Interest Expense - Soft Loans 2,993 684 -2,309 -77.1%
Interest Expense - Hard Loans 46,295 22,146 -24,149 -52.2%
Interest Expense - Other 9,824 11,915 2,091 21.3%
Interest Expense - Bond 1 170,757 169,642 -1,115 -0.7%
Other Financing Costs 167 500 333 199.4%
230,035 204,886 -25,149 -10.9%
Depreciation - Buildings 62,096 55,817 -6,279 -10.1%
Depreciation - Furn,Fix,Equip - Common 12,919 11,310 -1,609 -12.5%
Depreciation - Improvements 45,702 40,794 -4,908 -10.7%
Amortization - Leased Assets 20,085 25,065 4,980 24.8%
140,802 132,987 -7,815 -5.6%
Operating Transfers 4,500 100,000 95,500 2122.2%
Grant Expense - Non-Operating 50,000 0 -50,000 -100.0%
50,000 0 -50,000 -100.0%
TOTAL NON OPERATING EXPENSES 425,337 437,873 12,536 2.9%
GAIN (LOSS) - SALES OF ASSETS
Proceeds - Sale of Capital Assets 0 0 0
NET GAIN (LOSS) - SALE OF ASSETS 0 0 0
PARTNERSHIP INCOME(EXPENSES)
Income (Loss) - Partnerships 55,270 55,500 230 0.4%
TOTAL PARTNERSHIP INCOME(EXPENSES)55,270 55,500 230 0.4%
NET NON-OPERATING INCOME(EXPENSE)1,376,406 1,285,801 -90,605 -6.6%
NET INCOME (LOSS)2,239,846 1,673,726 -566,120 -25.3%
Page 50 of 116 62
1b|Agency no Development
Description 01/25 - 12/25 01/26 - 12/26 Amount Percent
Proforma Advanced Budget Variance Variance
OPERATING REVENUES
RENTAL INCOME
NET RENTAL INCOME
POTENTIAL RENTAL INCOME
CAM Estimate 11,397 103,224 91,827 805.7%
NET POTENTIAL RENT 11,397 103,224 91,827 805.7%
NET POTENTIAL RENT ADJUSTMENTS
Storage Rent 1,200 0 -1,200 -100.0%
NET POTENTIAL RENT ADJUSTMENTS 1,200 0 -1,200 -100.0%
NET RENTAL INCOME 12,597 103,224 90,627 719.4%
EFFECTIVE GROSS INCOME 12,597 103,224 90,627 719.4%
GRANT REVENUE
Grants - Family Self Sufficiency 248,316 265,062 16,746 6.7%
Grants - HUD CoC 532,220 522,564 -9,656 -1.8%
Grants - Non Gov't 14,284 23,464 9,180 64.3%
Grants - County 0 100,000 100,000
TOTAL GRANT REVENUE 794,821 911,090 116,269 14.6%
AGENCY REVENUE
Property Management Fee Revenue 1,387,219 1,443,929 56,710 4.1%
Accounting Fee Revenue 960,277 985,867 25,590 2.7%
Asset Management Revenue 333,520 361,536 28,016 8.4%
Site Labor Cost Recapture 1,654,741 1,917,210 262,469 15.9%
Technology Management Cost Recapture 172,170 201,400 29,230 17.0%
Insurance Administration Fee Revenue 17,705 19,044 1,339 7.6%
Administrative OH Cost Recapture 176,946 283,631 106,685 60.3%
Board Administration Fee Revenue 73,000 73,000 0 0.0%
Voucher Management Fees Earned 1,716,220 1,865,296 149,076 8.7%
Voucher DOH Management Fees Earned 144,454 157,001 12,547 8.7%
Resident Services Fee Income 1,272,284 1,153,503 -118,781 -9.3%
Compliance Services Revenue 116,828 119,952 3,124 2.7%
Work Order Revenue 668,048 910,755 242,707 36.3%
Maintenance - Preventative Contracts 288,445 261,300 -27,145 -9.4%
Maint Project Mgmt Revenue 157,728 114,109 -43,619 -27.7%
Maintenance Purchasing Cost Recapture 45,438 0 -45,438 -100.0%
Unit Turn Revenue 217,288 168,780 -48,508 -22.3%
Capital Asset Management Revenue 25,427 50,386 24,959 98.2%
RS Clinical Billing Revenue 3,343 1,800 -1,543 -46.2%
TOTAL AGENCY REVENUE 9,431,081 10,088,499 657,418 7.0%
OTHER INCOME
Miscellaneous Income 83,810 0 -83,810 -100.0%
2 Year Annual Comparison - Current
Project Start Date = 1/1/2026
Cutoff Date = 08/2025
Page 51 of 116 63
1b|Agency no Development
Description 01/25 - 12/25 01/26 - 12/26 Amount Percent
Proforma Advanced Budget Variance Variance
Project Start Date = 1/1/2026
Cutoff Date = 08/2025
Bond Issuance Fees 0 423,934 423,934
Bond Monitoring Fees 13,200 7,200 -6,000 -45.5%
Special Limited Partner Fees 0 0 0
Interest Income - Unrestricted 112,474 83,503 -28,971 -25.8%
HC Mission-Driven Support -189,575 -50,000 139,575 -73.6%
TOTAL OTHER INCOME 19,909 464,637 444,728 2233.8%
TOTAL OPERATING REVENUE 10,258,408 11,567,450 1,309,042 12.8%
OPERATING EXPENSES
INTRA-CO ALLOCATIONS
Intra-Co Alloc: FIN -159,920 -166,330 -6,410 4.0%
Intra-Co Alloc: TM -40,268 -47,428 -7,160 17.8%
Intra-Co Alloc: IT -56,949 -63,294 -6,345 11.1%
Intra-Co Alloc: IOH -682,945 -768,765 -85,820 12.6%
Intra-Co Alloc: SGA -101,763 -87,184 14,579 -14.3%
Catalyst Fund Allocations 0 0 0
Intra-Co Billings -84,156 0 84,156 -100.0%
Intra-Segment Alloc: RS Admin 0 0 0
TOTAL INTRA-Co ALLOCATIONS -1,126,001 -1,133,002 -7,001 0.6%
DIRECT OPERATING EXPENSES
ADMINISTRATIVE
Labor Expenses
Salaries & Wages 7,069,195 7,665,478 596,283 8.4%
Fringe Pool Allocation 0 -170,851 -170,851
ER Benefit Contribution 498,792 598,260 99,468 19.9%
ER Life, Disability, Supplemental Insurance 78,459 84,300 5,841 7.4%
EAP Program 6,797 8,436 1,639 24.1%
MERP Program Reimbursements 62,140 45,000 -17,140 -27.6%
Workers Comp 81,701 80,088 -1,613 -2.0%
ER Retirement Contributions 687,172 843,060 155,888 22.7%
ER Payroll Taxes 114,325 142,680 28,355 24.8%
ER FAMLI 56,697 75,876 19,179 33.8%
Total Benefits Expenses 1,586,084 1,706,849 120,765 7.6%
Total Labor Expenses 8,655,278 9,372,327 717,049 8.3%
Legal Expense
Legal-Criminal Background Checks 1,140 1,865 725 63.6%
Legal-Tenant Screening 31 0 -31 -100.0%
Legal-General Expense 14,522 20,950 6,428 44.3%
Total Legal Expense 15,693 22,815 7,122 45.4%
Other Administrative Expenses
Page 52 of 116 64
1b|Agency no Development
Description 01/25 - 12/25 01/26 - 12/26 Amount Percent
Proforma Advanced Budget Variance Variance
Project Start Date = 1/1/2026
Cutoff Date = 08/2025
Staff Training & Conferences 96,653 139,691 43,038 44.5%
Companywide Training 77,170 85,000 7,830 10.1%
Education Assistance 15,601 25,000 9,399 60.2%
Travel, Lodging & Per Diems 35,565 85,740 50,175 141.1%
Mileage 10,031 9,795 -236 -2.4%
Meals - Business Partners 5,849 4,755 -1,094 -18.7%
Payroll Processing Fees 17,202 0 -17,202 -100.0%
Rating Agency Expenses 11,833 11,500 -333 -2.8%
Auditing & Tax Services 8,911 7,850 -1,061 -11.9%
Marketing 4,867 9,412 4,545 93.4%
Resident Relocation 0 0 0
Parking Fees 179 504 325 181.6%
Consultants 79,254 110,910 31,656 39.9%
RS Clinical Billing Expenses 0 400 400
Security Services 499 200 -299 -59.9%
Advertising 0 0 0
Temporary Administrative Labor 0 15,470 15,470
Employee Wellness 10,605 16,430 5,825 54.9%
Recruiting 39,350 22,090 -17,260 -43.9%
Miscellaneous Admin Expenses 25,181 22,309 -2,872 -11.4%
Total Other Administrative Expenses 438,750 567,055 128,305 29.2%
Technology Expenses
Managed Services - City 179,204 64,000 -115,204 -64.3%
Managed Services - Consultants 38,066 58,000 19,934 52.4%
Managed Services - Other 0 216,000 216,000
Software License Fees 307,725 327,367 19,642 6.4%
Software Support Agreements 4,000 0 -4,000 -100.0%
Software Implementations 14,777 3,200 -11,577 -78.3%
Computers and Peripherals 40,758 23,000 -17,758 -43.6%
Network Hardware 8,712 0 -8,712 -100.0%
Cable Services 240 0 -240 -100.0%
Telephone - Landline 40,895 18,600 -22,295 -54.5%
Telephone - Virtual & Conferencing 0 15,000 15,000
Internet Services 2,326 0 -2,326 -100.0%
Cellular - Phones | Tablets 64,601 40,326 -24,275 -37.6%
Web Hosting and Other 687 2,300 1,613 234.8%
Total Technology Expenses 701,989 767,793 65,804 9.4%
Compliance Expenses
Compliance Services - Internal 33 0 -33 -100.0%
Compliance Services - Consultants 38 0 -38 -100.0%
Total Compliance Expenses 71 0 -71 -100.0%
TOTAL ADMINISTRATIVE EXPENSES 9,811,780 10,729,989 918,209 9.4%
Page 53 of 116 65
1b|Agency no Development
Description 01/25 - 12/25 01/26 - 12/26 Amount Percent
Proforma Advanced Budget Variance Variance
Project Start Date = 1/1/2026
Cutoff Date = 08/2025
GENERAL EXPENSES
Resident Services
Resident Programming 13,524 11,167 -2,357 -17.4%
RS Client Assistance 4,363 5,736 1,373 31.5%
Resident Services - External 73,179 267,949 194,770 266.2%
Total Resident Services 91,066 284,852 193,786 212.8%
Utilities Expense
Water 7,558 12,684 5,126 67.8%
Electricity 14,678 16,015 1,337 9.1%
Gas 5,060 7,295 2,235 44.2%
Trash Removal - Recycling 136 1,224 1,088 800.0%
Trash Removal - Regular 7,414 7,739 325 4.4%
Total Utility Expenses 34,846 44,957 10,111 29.0%
Maintenance Expenses
Maintenance - On Call 6,981 996 -5,985 -85.7%
Maintenance - Uniforms 5,793 5,200 -593 -10.2%
Tools and Equipment 120 1,291 1,171 975.8%
Equipment Rentals 3,537 5,097 1,560 44.1%
Total General Maint Expense 16,432 12,583 -3,849 -23.4%
Supplies-Grounds 533 845 312 58.5%
Supplies-Appliances 0 0 0
Supplies-Electrical 86 72 -14 -16.3%
Supplies-Pest Control 46 48 2 4.3%
Supplies-Janitorial 1,361 1,550 189 13.9%
Supplies-General 6,936 5,137 -1,799 -25.9%
Supplies-Plumbing 8 0 -8 -100.0%
Supplies-HVAC 514 199 -315 -61.3%
Supplies-Doors 108 0 -108 -100.0%
Supplies-Windows 0 0 0
Total Supplies | Materials 9,593 7,851 -1,742 -18.2%
Contract-Work Orders - Internal 8,046 13,777 5,731 71.2%
Contract-Preventative - Internal 8,618 1,500 -7,118 -82.6%
Contract-Painting 0 0 0
Contract-System Services 4,614 10,655 6,041 130.9%
Contract-Access Control 0 356 356
Contract-Roof|Gutter 0 4,980 4,980
Contract-Pressure Washing 0 3,000 3,000
Contract-Carpet Cleaning 0 1,000 1,000
Page 54 of 116 66
1b|Agency no Development
Description 01/25 - 12/25 01/26 - 12/26 Amount Percent
Proforma Advanced Budget Variance Variance
Project Start Date = 1/1/2026
Cutoff Date = 08/2025
Contract-Electrical 95 0 -95 -100.0%
Contract-Pest Control 256 2,760 2,504 978.1%
Contract-Grounds 35,049 12,000 -23,049 -65.8%
Contract-Snow Removal 0 6,207 6,207
Contract-Tree Service 0 1,770 1,770
Contract-Janitorial 23,698 23,676 -22 -0.1%
Contract-Plumbing 1,894 1,865 -29 -1.5%
Contract-HVAC 8,724 1,623 -7,101 -81.4%
Contract-Alarms 918 966 48 5.2%
Contract-Irrigation Repairs 0 1,109 1,109
Contract-General 2,555 220 -2,335 -91.4%
Total Contract Costs 94,468 87,465 -7,003 -7.4%
Total Maintenance Expenses - Core 120,493 107,899 -12,594 -10.5%
Total Maintenance Expenses 120,493 107,899 -12,594 -10.5%
Vehicle-Fuel 17,521 16,824 -697 -4.0%
Vehicle-Repairs 10,087 7,496 -2,591 -25.7%
Vehicle-Fixed Fee Maintenance 763 10 -753 -98.7%
Vehicle-Lease 1,250 -3,441 -4,691 -375.3%
Total Vehicle Expenses 29,621 20,889 -8,732 -29.5%
Insurance & Taxes Expenses
Insurance - Property 25,523 95,504 69,981 274.2%
Insurance - Liability 7,249 10,018 2,769 38.2%
Insurance - Umbrella 220 7,000 6,780 3081.8%
Insurance - D&O | E&O 31,301 30,290 -1,011 -3.2%
Insurance - Auto 24,726 23,674 -1,052 -4.3%
Insurance - Specialty | Other 61,685 69,460 7,775 12.6%
Misc. Taxes & Licenses 0 300 300
Total Tax & Insurance Expenses 150,704 236,246 85,542 56.8%
Other General Expenses
Membership and Fees 33,036 31,217 -1,819 -5.5%
Bank Fees 440 539 99 22.5%
Filing Fees 55 26 -29 -52.7%
Office Supplies 22,542 14,072 -8,470 -37.6%
Copier and Printer Usage | Supplies 19,135 15,673 -3,462 -18.1%
Postage Usage | Supplies 16,687 18,913 2,226 13.3%
Publications 1,498 1,922 424 28.3%
Small Office Equipment 2,389 4,337 1,948 81.5%
Meetings Expenses 12,046 41,806 29,760 247.1%
Miscellaneous General Expense 6,596 3,987 -2,609 -39.6%
Facilities Rent 13,686 0 -13,686 -100.0%
Page 55 of 116 67
1b|Agency no Development
Description 01/25 - 12/25 01/26 - 12/26 Amount Percent
Proforma Advanced Budget Variance Variance
Project Start Date = 1/1/2026
Cutoff Date = 08/2025
Total Other General Expenses 128,110 132,493 4,383 3.4%
TOTAL GENERAL EXPENSES 554,840 827,335 272,495 49.1%
TOTAL DIRECT OPERATING EXPENSES 10,366,621 11,557,324 1,190,703 11.5%
TOTAL OPERATING EXPENSES 9,240,620 10,424,323 1,183,703 12.8%
NET OPERATING INCOME 1,017,788 1,143,127 125,339 12.3%
NON-OPERATING INCOME | EXPENSE
NON OPERATING INCOME
Interest Income - Soft Debt 1,531,214 1,466,859 -64,355 -4.2%
Interest Income - Hard Debt 175,336 175,374 38 0.0%
TOTAL NON OPERATING INCOME 1,706,551 1,642,232 -64,319 -3.8%
NON OPERATING EXPENSES
Interest Expense - Soft Loans 2,993 684 -2,309 -77.1%
Interest Expense - Hard Loans 46,295 22,146 -24,149 -52.2%
Interest Expense - Other 9,824 11,915 2,091 21.3%
Interest Expense - Bond 1 170,757 169,642 -1,115 -0.7%
229,868 204,386 -25,482 -11.1%
0
Depreciation - Buildings 62,096 55,817 -6,279 -10.1%
Depreciation - Furn,Fix,Equip - Common 12,919 11,310 -1,609 -12.5%
Depreciation - Improvements 45,702 40,794 -4,908 -10.7%
Amortization - Leased Assets 20,085 25,065 4,980 24.8%
140,802 132,987 -7,815 -5.6%
Operating Transfers 4,500 100,000 95,500 2122.2%
Grant Expense - Non-Operating 50,000 0 -50,000 -100.0%
50,000 0 -50,000 -100.0%
TOTAL NON OPERATING EXPENSES 425,170 437,373 12,203 2.9%
GAIN (LOSS) - SALES OF ASSETS
Proceeds - Sale of Capital Assets 0 0 0
NET GAIN (LOSS) - SALE OF ASSETS 0 0 0
PARTNERSHIP INCOME(EXPENSES)
Income (Loss) - Partnerships 55,270 55,500 230 0.4%
TOTAL PARTNERSHIP INCOME(EXPENSES)55,270 55,500 230 0.4%
NET NON-OPERATING INCOME(EXPENSE)1,336,650 1,260,360 -76,290 -5.7%
NET INCOME (LOSS)2,354,438 2,403,487 49,049 2.1%
Page 56 of 116 68
1c|Agency - COCCs Combined
Description 01/25 - 12/25 01/26 - 12/26 Amount Percent
Proforma Advanced Budget Variance Variance
OPERATING REVENUES
RENTAL INCOME
NET RENTAL INCOME
NET POTENTIAL RENT ADJUSTMENTS
Storage Rent 1,200 0 -1,200 -100.0%
NET POTENTIAL RENT ADJUSTMENTS 1,200 0 -1,200 -100.0%
NET RENTAL INCOME 1,200 0 -1,200 -100.0%
EFFECTIVE GROSS INCOME 1,200 0 -1,200 -100.0%
TOTAL OPERATING REVENUE 1,200 0 -1,200 -100.0%
OPERATING EXPENSES
INTRA-CO ALLOCATIONS
Intra-Co Alloc: FIN -1,230,150 -1,279,462 -49,312 4.0%
Intra-Co Alloc: TM -476,563 -561,305 -84,742 17.8%
Intra-Co Alloc: IT -673,986 -749,090 -75,104 11.1%
Intra-Co Alloc: IOH -1,778,779 -1,998,672 -219,893 12.4%
Intra-Co Alloc: SGA -299,851 -217,961 81,890 -27.3%
Catalyst Fund Allocations 0 -124,000 -124,000
Intra-Co Billings 20,197 0 -20,197 -100.0%
TOTAL INTRA-Co ALLOCATIONS -4,439,132 -4,930,490 -491,358 11.1%
DIRECT OPERATING EXPENSES
ADMINISTRATIVE
Labor Expenses
Salaries & Wages 2,488,918 2,733,684 244,766 9.8%
Fringe Pool Allocation 0 608,868 608,868
ER Benefit Contribution 125,943 0 -125,943 -100.0%
ER Life, Disability, Supplemental Insurance 23,487 0 -23,487 -100.0%
EAP Program 1,697 0 -1,697 -100.0%
MERP Program Reimbursements 21,844 0 -21,844 -100.0%
Workers Comp 28,964 0 -28,964 -100.0%
ER Retirement Contributions 245,547 0 -245,547 -100.0%
ER Payroll Taxes 37,993 0 -37,993 -100.0%
ER FAMLI 20,302 0 -20,302 -100.0%
Total Benefits Expenses 505,777 608,868 103,091 20.4%
Total Labor Expenses 2,994,695 3,342,552 347,857 11.6%
Legal Expense
Legal-Criminal Background Checks 1,114 1,865 751 67.4%
Legal-General Expense 9,980 13,546 3,566 35.7%
Total Legal Expense 11,094 15,410 4,316 38.9%
Other Administrative Expenses 0
2 Year Annual Comparison - Current
Project Start Date = 1/1/2026
Cutoff Date = 08/2025
Page 57 of 116 69
1c|Agency - COCCs Combined
Description 01/25 - 12/25 01/26 - 12/26 Amount Percent
Proforma Advanced Budget Variance Variance
Project Start Date = 1/1/2026
Cutoff Date = 08/2025
Staff Training & Conferences 73,160 83,121 9,961 13.6%
Companywide Training 65,170 85,000 19,830 30.4%
Education Assistance 11,929 25,000 13,071 109.6%
Travel, Lodging & Per Diems 23,225 62,275 39,050 168.1%
Mileage 2,011 1,940 -71 -3.5%
Meals - Business Partners 2,394 1,500 -894 -37.3%
Payroll Processing Fees 17,202 0 -17,202 -100.0%
Rating Agency Expenses 11,833 11,500 -333 -2.8%
Auditing & Tax Services 8,911 7,850 -1,061 -11.9%
Marketing 4,152 7,450 3,298 79.4%
Parking Fees 141 417 276 195.7%
Consultants 74,761 100,000 25,239 33.8%
Security Services 219 0 -219 -100.0%
Advertising 0 0 0
Temporary Administrative Labor 0 15,470 15,470
Employee Wellness 10,605 16,430 5,825 54.9%
Recruiting 39,183 22,090 -17,093 -43.6%
Miscellaneous Admin Expenses 8,503 4,932 -3,571 -42.0%
Total Other Administrative Expenses 353,399 444,975 91,576 25.9%
Technology Expenses 0
Managed Services - City 179,204 64,000 -115,204 -64.3%
Managed Services - Consultants 38,066 58,000 19,934 52.4%
Managed Services - Other 0 216,000 216,000
Software License Fees 299,290 317,107 17,817 6.0%
Software Support Agreements 4,000 0 -4,000 -100.0%
Software Implementations 14,777 3,200 -11,577 -78.3%
Computers and Peripherals 40,599 23,000 -17,599 -43.3%
Network Hardware 8,712 0 -8,712 -100.0%
Cable Services 240 0 -240 -100.0%
Telephone - Landline 40,895 18,600 -22,295 -54.5%
Telephone - Virtual & Conferencing 0 15,000 15,000
Internet Services 2,326 0 -2,326 -100.0%
Cellular - Phones | Tablets 41,192 40,326 -866 -2.1%
Web Hosting and Other 687 2,300 1,613 234.8%
Total Technology Expenses 669,986 757,533 87,547 13.1%
Compliance Expenses 0
Compliance Services - Internal 33 0 -33 -100.0%
Compliance Services - Consultants 0 0 0
Total Compliance Expenses 33 0 -33 -100.0%
TOTAL ADMINISTRATIVE EXPENSES 4,029,208 4,560,469 531,261 13.2%
GENERAL EXPENSES
Resident Services
Page 58 of 116 70
1c|Agency - COCCs Combined
Description 01/25 - 12/25 01/26 - 12/26 Amount Percent
Proforma Advanced Budget Variance Variance
Project Start Date = 1/1/2026
Cutoff Date = 08/2025
Resident Programming 0 0 0
Total Resident Services 0 0 0
Utilities Expense
Water 5,256 10,517 5,261 100.1%
Electricity 14,678 16,015 1,337 9.1%
Gas 5,060 7,295 2,235 44.2%
Trash Removal - Recycling 136 1,224 1,088 800.0%
Trash Removal - Regular 7,364 6,900 -464 -6.3%
Total Utility Expenses 32,494 41,951 9,457 29.1%
Maintenance Expenses
Tools and Equipment 0 0 0
Equipment Rentals 2,164 3,000 836 38.6%
Total General Maint Expense 2,164 3,000 836 38.6%
Supplies-Grounds 65 800 735 1130.8%
Supplies-Appliances 0 0 0
Supplies-Electrical 60 62 2 3.3%
Supplies-Pest Control 46 48 2 4.3%
Supplies-Janitorial 1,231 1,550 319 25.9%
Supplies-General 0 0 0
Supplies-Plumbing 0 0 0
Supplies-HVAC 96 199 103 107.3%
Supplies-Doors 30 0 -30 -100.0%
Total Supplies | Materials 1,529 2,658 1,129 73.8%
Contract-Work Orders - Internal 5,943 11,977 6,034 101.5%
Contract-Preventative - Internal 6,731 1,500 -5,231 -77.7%
Contract-Painting 0 0 0
Contract-System Services 3,626 2,655 -971 -26.8%
Contract-Access Control 0 356 356
Contract-Roof|Gutter 0 4,980 4,980
Contract-Pressure Washing 0 3,000 3,000
Contract-Carpet Cleaning 0 1,000 1,000
Contract-Electrical 0 0 0
Contract-Pest Control 235 2,400 2,165 921.3%
Contract-Grounds 25,577 7,872 -17,705 -69.2%
Contract-Snow Removal 0 4,044 4,044
Contract-Tree Service 0 1,770 1,770
Contract-Janitorial 23,698 23,676 -22 -0.1%
Contract-Plumbing 1,575 765 -810 -51.4%
Page 59 of 116 71
1c|Agency - COCCs Combined
Description 01/25 - 12/25 01/26 - 12/26 Amount Percent
Proforma Advanced Budget Variance Variance
Project Start Date = 1/1/2026
Cutoff Date = 08/2025
Contract-HVAC 8,724 1,623 -7,101 -81.4%
Contract-Alarms 918 966 48 5.2%
Contract-Irrigation Repairs 0 1,109 1,109
Contract-General 2,555 220 -2,335 -91.4%
Total Contract Costs 79,582 69,914 -9,668 -12.1%
Total Maintenance Expenses - Core 83,274 75,572 -7,702 -9.2%
Total Maintenance Expenses 83,274 75,572 -7,702 -9.2%
Vehicle-Fuel 0 0 0
Vehicle-Repairs 17 0 -17 -100.0%
Vehicle-Fixed Fee Maintenance 0 0 0
Total Vehicle Expenses 17 0 -17 -100.0%
Insurance & Taxes Expenses
Insurance - Property 20,695 20,225 -470 -2.3%
Insurance - Liability 6,707 4,390 -2,317 -34.5%
Insurance - Umbrella 105 320 215 204.8%
Insurance - D&O | E&O 31,301 30,290 -1,011 -3.2%
Insurance - Specialty | Other 54,234 63,186 8,952 16.5%
Misc. Taxes & Licenses 0 300 300
Total Tax & Insurance Expenses 113,042 118,711 5,669 5.0%
Other General Expenses
Membership and Fees 30,681 29,370 -1,311 -4.3%
Office Supplies 15,641 9,514 -6,127 -39.2%
Copier and Printer Usage | Supplies 14,630 9,909 -4,721 -32.3%
Postage Usage | Supplies 3,293 3,437 144 4.4%
Publications 1,147 1,640 493 43.0%
Small Office Equipment 1,812 1,737 -75 -4.1%
Meetings Expenses 7,580 11,544 3,964 52.3%
Miscellaneous General Expense 1,911 1,813 -98 -5.1%
Facilities Rent 0 0 0
Total Other General Expenses 76,695 68,965 -7,730 -10.1%
TOTAL GENERAL EXPENSES 305,521 305,199 -322 -0.1%
TOTAL DIRECT OPERATING EXPENSES 4,334,730 4,865,669 530,939 12.2%
TOTAL OPERATING EXPENSES -104,402 -64,821 39,581 -37.9%
NET OPERATING INCOME 105,602 64,821 -40,781 -38.6%
NON-OPERATING INCOME | EXPENSE
NON OPERATING EXPENSES
Interest Expense - Hard Loans 22,981 11,991 -10,990 -47.8%
Page 60 of 116 72
1c|Agency - COCCs Combined
Description 01/25 - 12/25 01/26 - 12/26 Amount Percent
Proforma Advanced Budget Variance Variance
Project Start Date = 1/1/2026
Cutoff Date = 08/2025
22,981 11,991 -10,990 -47.8%
Depreciation - Buildings 6,606 726 -5,880 -89.0%
Depreciation - Furn,Fix,Equip - Common 12,919 11,310 -1,609 -12.5%
Depreciation - Improvements 45,702 40,794 -4,908 -10.7%
65,227 52,831 -12,396 -19.0%
TOTAL NON OPERATING EXPENSES 88,208 64,822 -23,386 -26.5%
NET NON-OPERATING INCOME(EXPENSE)-88,208 -64,822 23,386 -26.5%
NET INCOME (LOSS)17,395 0 -17,395 -100.0%
Page 61 of 116 73
1d|Agency - COCCs by Type
cocc-com cocc-exe cocc-fin cocc-it cocc-sga cocc-tm Total
Budget Budget Budget Budget Budget Budget Actual
OPERATING EXPENSES
INTRA-CO ALLOCATIONS
Intra-Co Alloc: FIN 0 0 -1,279,462 0 0 0 -1,279,462
Intra-Co Alloc: TM 15,809 39,523 69,560 0 0 -686,198 -561,305
Intra-Co Alloc: IT 21,098 52,745 92,832 -915,765 0 0 -749,090
Intra-Co Alloc: IOH -279,123 -1,719,549 0 0 0 0 -1,998,672
Intra-Co Alloc: SGA 0 0 0 0 -217,961 0 -217,961
Catalyst Fund Allocations 0 0 0 -124,000 0 0 -124,000
TOTAL INTRA-Co ALLOCATIONS -242,216 -1,627,281 -1,117,070 -1,039,765 -217,961 -686,198 -4,930,490
DIRECT OPERATING EXPENSES
ADMINISTRATIVE
Labor Expenses
Salaries & Wages 184,224 1,158,840 814,548 248,844 0 327,228 2,733,684
Fringe Pool Allocation 41,028 258,108 181,416 55,428 0 72,888 608,868
Total Benefits Expenses 41,028 258,108 181,416 55,428 0 72,888 608,868
Total Labor Expenses 225,252 1,416,948 995,964 304,272 0 400,116 3,342,552
Legal Expense
Legal-Criminal Background Checks 0 0 0 0 0 1,865 1,865
Legal-General Expense 0 9,200 200 0 0 4,146 13,546
Total Legal Expense 0 9,200 200 0 0 6,010 15,410
Other Administrative Expenses
Staff Training & Conferences 2,771 52,000 14,950 3,900 0 9,500 83,121
Companywide Training 0 0 0 0 0 85,000 85,000
Education Assistance 0 0 0 0 0 25,000 25,000
Travel, Lodging & Per Diems 2,400 38,500 12,075 3,300 0 6,000 62,275
Mileage 0 1,500 245 0 0 195 1,940
Meals - Business Partners 0 1,200 0 300 0 0 1,500
Rating Agency Expenses 0 0 11,500 0 0 0 11,500
Auditing & Tax Services 0 0 7,850 0 0 0 7,850
Marketing 5,450 2,000 0 0 0 0 7,450
Parking Fees 0 155 120 45 0 97 417
Consultants 0 0 50,000 0 0 50,000 100,000
Temporary Administrative Labor 0 15,470 0 0 0 0 15,470
Employee Wellness 0 2,330 0 0 0 14,100 16,430
Recruiting 0 0 0 0 0 22,090 22,090
Miscellaneous Admin Expenses 0 2,400 300 22 800 1,410 4,932
Total Other Administrative Expenses 10,621 115,554 97,040 7,567 800 213,392 444,975
Technology Expenses
Managed Services - City 0 0 0 64,000 0 0 64,000
Managed Services - Consultants 0 0 0 58,000 0 0 58,000
Managed Services - Other 0 0 0 216,000 0 0 216,000
Software License Fees 4,140 0 0 272,967 0 40,000 317,107
Software Implementations 0 0 0 3,200 0 0 3,200
Computers and Peripherals 0 0 0 23,000 0 0 23,000
Telephone - Landline 0 0 0 18,600 0 0 18,600
Telephone - Virtual & Conferencing 0 0 0 15,000 0 0 15,000
Cellular - Phones | Tablets 1,200 2,800 4,000 30,468 0 1,858 40,326
Web Hosting and Other 0 0 0 2,300 0 0 2,300
Property Comparison
Page 62 of 116 74
1d|Agency - COCCs by Type
cocc-com cocc-exe cocc-fin cocc-it cocc-sga cocc-tm Total
Budget Budget Budget Budget Budget Budget Actual
Property Comparison
Period = Jan 2026-Dec 2026
TOTAL ADMINISTRATIVE EXPENSES 241,213 1,544,502 1,097,204 1,015,374 800 661,376 4,560,469
GENERAL EXPENSES
Utilities Expense
Water 0 0 0 0 10,517 0 10,517
Electricity 0 0 0 0 16,015 0 16,015
Gas 0 0 0 0 7,295 0 7,295
Trash Removal - Recycling 0 0 0 0 1,224 0 1,224
Trash Removal - Regular 0 0 0 0 6,900 0 6,900
Total Utility Expenses 0 0 0 0 41,951 0 41,951
Maintenance Expenses
Equipment Rentals 0 0 0 0 3,000 0 3,000
Total General Maint Expense 0 0 0 0 3,000 0 3,000
Supplies-Grounds 0 0 0 0 800 0 800
Supplies-Electrical 0 0 0 0 62 0 62
Supplies-Pest Control 0 0 0 0 48 0 48
Supplies-Janitorial 0 0 0 0 1,550 0 1,550
Supplies-HVAC 0 0 0 0 199 0 199
Total Supplies | Materials 0 0 0 0 2,658 0 2,658
Contract-Work Orders - Internal 0 0 0 0 11,977 0 11,977
Contract-Preventative - Internal 0 0 0 0 1,500 0 1,500
Contract-System Services 0 0 0 0 2,655 0 2,655
Contract-Access Control 0 0 0 0 356 0 356
Contract-Roof|Gutter 0 0 0 0 4,980 0 4,980
Contract-Pressure Washing 0 0 0 0 3,000 0 3,000
Contract-Carpet Cleaning 0 0 0 0 1,000 0 1,000
Contract-Pest Control 0 0 0 0 2,400 0 2,400
Contract-Grounds 0 0 0 0 7,872 0 7,872
Contract-Snow Removal 0 0 0 0 4,044 0 4,044
Contract-Tree Service 0 0 0 0 1,770 0 1,770
Contract-Janitorial 0 0 0 0 23,676 0 23,676
Contract-Plumbing 0 0 0 0 765 0 765
Contract-HVAC 0 0 0 0 1,623 0 1,623
Contract-Alarms 0 966 0 0 0 0 966
Contract-Irrigation Repairs 0 0 0 0 1,109 0 1,109
Contract-General 0 0 0 0 220 0 220
Total Contract Costs 0 966 0 0 68,948 0 69,914
Total Maintenance Expenses - Core 0 966 0 0 74,606 0 75,572
Total Maintenance Expenses 0 966 0 0 74,606 0 75,572
Insurance & Taxes Expenses
Insurance - Property 0 0 0 0 20,225 0 20,225
Insurance - Liability 0 0 0 0 270 4,120 4,390
Insurance - Umbrella 0 0 0 0 320 0 320
Insurance - D&O | E&O 0 30,290 0 0 0 0 30,290
Insurance - Specialty | Other 0 12,343 8,751 23,591 0 18,501 63,186
Page 63 of 116 75
1d|Agency - COCCs by Type
cocc-com cocc-exe cocc-fin cocc-it cocc-sga cocc-tm Total
Budget Budget Budget Budget Budget Budget Actual
Property Comparison
Period = Jan 2026-Dec 2026
Total Tax & Insurance Expenses 0 42,633 8,751 23,591 20,815 22,921 118,711
Other General Expenses
Membership and Fees 0 27,750 1,620 0 0 0 29,370
Office Supplies 300 1,400 1,875 484 5,400 56 9,514
Copier and Printer Usage | Supplies 0 0 2,182 0 7,727 0 9,909
Postage Usage | Supplies 0 600 2,659 10 0 168 3,437
Publications 704 700 0 0 0 236 1,640
Small Office Equipment 0 480 0 206 1,051 0 1,737
Meetings Expenses 0 8,000 2,280 0 0 1,264 11,544
Miscellaneous General Expense 0 248 500 99 788 177 1,813
Total Other General Expenses 1,004 39,178 11,116 799 14,966 1,901 68,965
TOTAL GENERAL EXPENSES 1,004 82,777 19,867 24,390 152,339 24,823 305,199
TOTAL DIRECT OPERATING EXPENSES 242,217 1,627,279 1,117,071 1,039,765 153,139 686,198 4,865,669
TOTAL OPERATING EXPENSES 1 -1 1 0 -64,822 0 -64,821
NET OPERATING INCOME -1 1 -1 0 64,822 0 64,821
NON-OPERATING INCOME | EXPENSE
NON OPERATING EXPENSES
Interest Expense - Hard Loans 0 0 0 0 11,991 0 11,991
0 0 0 0 11,991 0 11,991
Depreciation - Buildings 0 0 0 0 726 0 726
Depreciation - Furn,Fix,Equip - Common 0 0 0 0 11,310 0 11,310
Depreciation - Improvements 0 0 0 0 40,794 0 40,794
0 0 0 0 52,831 0 52,831
TOTAL NON OPERATING EXPENSES 0 0 0 0 64,822 0 64,822
NET NON-OPERATING INCOME(EXPENSE)0 0 0 0 -64,822 0 -64,822
Page 64 of 116 76
1e|Agency - Business Units
cat.fund COCCs dept-dev+dept-mtc dept-pm dept-ra dept-rs dept-ste Gen Fund +Total
Budget Budget Budget Budget Budget Budget Budget Budget Budget Actual
OPERATING REVENUES
RENTAL INCOME
NET RENTAL INCOME
POTENTIAL RENTAL INCOME
CAM Estimate 0 0 0 0 0 0 0 0 103,224 103,224
NET POTENTIAL RENT 0 0 0 0 0 0 0 0 103,224 103,224
NET RENTAL INCOME 0 0 0 0 0 0 0 0 103,224 103,224
EFFECTIVE GROSS INCOME 0 0 0 0 0 0 0 0 103,224 103,224
GRANT REVENUE
Grants - Family Self Sufficiency 0 0 0 0 0 0 265,062 0 0 265,062
Grants - HUD CoC 0 0 0 0 0 0 522,564 0 0 522,564
Grants - Non Gov't 0 0 0 0 0 0 23,464 0 0 23,464
Grants - County 0 0 0 0 0 0 100,000 0 0 100,000
TOTAL GRANT REVENUE 0 0 0 0 0 0 911,090 0 0 911,090
AGENCY REVENUE
Property Management Fee Revenue 0 0 0 0 1,443,929 0 0 0 0 1,443,929
Accounting Fee Revenue 0 0 0 0 985,867 0 0 0 0 985,867
Asset Management Revenue 0 0 0 0 361,536 0 0 0 0 361,536
Site Labor Cost Recapture 0 0 0 0 0 0 0 1,917,210 0 1,917,210
Technology Management Cost Recapture 0 0 0 0 0 0 0 201,400 0 201,400
Insurance Administration Fee Revenue 0 0 0 0 19,044 0 0 0 0 19,044
Administrative OH Cost Recapture 0 0 0 0 0 0 0 0 283,631 283,631
Board Administration Fee Revenue 0 0 0 0 0 0 0 0 73,000 73,000
Voucher Management Fees Earned 0 0 0 0 0 1,865,296 0 0 0 1,865,296
Voucher DOH Management Fees Earned 0 0 0 0 0 157,001 0 0 0 157,001
Resident Services Fee Income 0 0 0 0 0 0 1,153,503 0 0 1,153,503
Compliance Services Revenue 0 0 0 0 119,952 0 0 0 0 119,952
Developer Fee Earned or Collected 0 0 1,215,375 0 0 0 0 0 0 1,215,375
Acquisition and Disposition Fees 0 0 50,000 0 0 0 0 0 0 50,000
Work Order Revenue 0 0 0 910,755 0 0 0 0 0 910,755
Maintenance - Preventative Contracts 0 0 0 261,300 0 0 0 0 0 261,300
Maint Project Mgmt Revenue 0 0 0 114,109 0 0 0 0 0 114,109
Unit Turn Revenue 0 0 0 168,780 0 0 0 0 0 168,780
Capital Asset Management Revenue 0 0 0 0 50,386 0 0 0 0 50,386
RS Clinical Billing Revenue 0 0 0 0 0 0 1,800 0 0 1,800
TOTAL AGENCY REVENUE 0 0 1,265,375 1,454,944 2,980,714 2,022,297 1,155,303 2,118,610 356,631 11,353,874
OTHER INCOME
Bond Issuance Fees 423,934 0 0 0 0 0 0 0 0 423,934
Bond Monitoring Fees 7,200 0 0 0 0 0 0 0 0 7,200
Interest Income - Unrestricted 0 0 80,000 0 0 0 0 0 83,503 163,503
HC Mission-Driven Support 0 0 0 0 -50,000 0 0 0 0 -50,000
TOTAL OTHER INCOME 431,134 0 80,000 0 -50,000 0 0 0 83,503 544,637
TOTAL OPERATING REVENUE 431,134 0 1,345,375 1,454,944 2,930,714 2,022,297 2,066,393 2,118,610 543,358 12,912,825
OPERATING EXPENSES
INTRA-CO ALLOCATIONS
Intra-Co Alloc: FIN 0 -1,279,462 166,330 140,741 678,115 191,919 102,357 0 0 0
Intra-Co Alloc: TM 0 -561,306 47,428 102,760 23,714 102,760 134,457 150,187 0 0
Intra-Co Alloc: IT 0 -749,090 63,294 137,138 31,647 137,138 179,440 200,432 0 0
Intra-Co Alloc: IOH 0 -1,998,672 768,765 78,551 673,070 275,627 202,658 0 0 0
Intra-Co Alloc: SGA 0 -217,961 87,184 8,718 69,748 30,515 21,796 0 0 0
Catalyst Fund Allocations 369,000 -124,000 0 -145,000 0 0 -100,000 0 0 0
Intra-Co Billings 0 0 0 0 21,861 -21,861 0 0 0 0
Property Comparison
Period = Jan 2026-Dec 2026
Book = Rolling ; Tree = ysi_is
Page 65 of 116 77
1e|Agency - Business Units
cat.fund COCCs dept-dev+dept-mtc dept-pm dept-ra dept-rs dept-ste Gen Fund +Total
Budget Budget Budget Budget Budget Budget Budget Budget Budget Actual
OPERATING REVENUES
Period = Jan 2026-Dec 2026
Book = Rolling ; Tree = ysi_is
TOTAL INTRA-Co ALLOCATIONS 369,000 -4,930,491 1,133,002 322,908 1,498,154 716,098 540,708 350,620 0 0
DIRECT OPERATING EXPENSES
ADMINISTRATIVE
Labor Expenses
Salaries & Wages 0 2,733,684 767,100 891,204 411,300 1,025,772 1,175,746 1,427,772 0 8,432,578
Fringe Pool Allocation 0 608,868 170,856 198,492 91,608 228,468 261,413 318,000 -1,877,700 5
ER Benefit Contribution 0 0 0 0 0 0 0 0 598,260 598,260
0 0 0 0 0 0 0 0 84,300 84,300
EAP Program 0 0 0 0 0 0 0 0 8,436 8,436
MERP Program Reimbursements 0 0 0 0 0 0 0 0 45,000 45,000
Workers Comp 0 0 0 0 0 0 0 0 80,088 80,088
ER Retirement Contributions 0 0 0 0 0 0 0 0 843,060 843,060
ER Payroll Taxes 0 0 0 0 0 0 0 0 142,680 142,680
ER FAMLI 0 0 0 0 0 0 0 0 75,876 75,876
Total Benefits Expenses 0 608,868 170,856 198,492 91,608 228,468 261,413 318,000 0 1,877,705
Total Labor Expenses 0 3,342,552 937,956 1,089,696 502,908 1,254,240 1,437,159 1,745,772 0 10,310,283
Legal Expense
Legal-Criminal Background Checks 0 1,865 0 0 0 0 0 0 0 1,865
Legal-General Expense 0 13,546 800 0 5,000 0 0 0 2,405 21,750
Total Legal Expense 0 15,410 800 0 5,000 0 0 0 2,405 23,615
Other Administrative Expenses
Staff Training & Conferences 0 83,121 8,500 0 20,000 8,742 7,828 20,000 0 148,191
Companywide Training 0 85,000 0 0 0 0 0 0 0 85,000
Education Assistance 0 25,000 1,500 0 0 0 0 0 0 26,500
Travel, Lodging & Per Diems 0 62,275 4,000 0 8,000 10,965 4,500 0 0 89,740
Mileage 0 1,940 572 2,138 1,575 34 4,108 0 0 10,367
Meals - Business Partners 0 1,500 0 0 3,255 0 0 0 0 4,755
Rating Agency Expenses 0 11,500 0 0 0 0 0 0 0 11,500
Auditing & Tax Services 0 7,850 0 0 0 0 0 0 0 7,850
Marketing 0 7,450 0 0 800 1,162 0 0 0 9,412
Parking Fees 0 417 1,440 0 87 0 0 0 0 1,944
Consultants 0 100,000 6,000 0 0 10,910 0 0 0 116,910
RS Clinical Billing Expenses 0 0 0 0 0 0 400 0 0 400
Security Services 0 0 0 0 200 0 0 0 0 200
Temporary Administrative Labor 0 15,470 0 0 0 0 0 0 0 15,470
Employee Wellness 0 16,430 0 0 0 0 0 0 0 16,430
Recruiting 0 22,090 0 0 0 0 0 0 0 22,090
Miscellaneous Admin Expenses 0 4,932 200 0 16,459 684 0 0 233 22,509
Total Other Administrative Expenses 0 444,974 22,212 2,138 50,376 32,497 16,836 20,000 233 589,267
Technology Expenses
Managed Services - City 0 64,000 0 0 0 0 0 0 0 64,000
Managed Services - Consultants 0 58,000 0 0 0 0 0 0 0 58,000
Managed Services - Other 0 216,000 0 0 0 0 0 0 0 216,000
Software License Fees 0 317,107 0 0 0 0 10,260 0 0 327,367
Software Implementations 0 3,200 0 0 0 0 0 0 0 3,200
Computers and Peripherals 0 23,000 0 0 0 0 0 0 0 23,000
Telephone - Landline 0 18,600 0 0 0 0 0 0 0 18,600
Telephone - Virtual & Conferencing 0 15,000 0 0 0 0 0 0 0 15,000
Cellular - Phones | Tablets 0 40,326 0 0 0 0 0 0 0 40,326
Web Hosting and Other 0 2,300 0 0 0 0 0 0 0 2,300
Total Technology Expenses 0 757,533 0 0 0 0 10,260 0 0 767,793
TOTAL ADMINISTRATIVE EXPENSES 0 4,560,469 960,968 1,091,834 558,284 1,286,737 1,464,255 1,765,772 2,638 11,690,957
GENERAL EXPENSES
Page 66 of 116 78
1e|Agency - Business Units
cat.fund COCCs dept-dev+dept-mtc dept-pm dept-ra dept-rs dept-ste Gen Fund +Total
Budget Budget Budget Budget Budget Budget Budget Budget Budget Actual
OPERATING REVENUES
Period = Jan 2026-Dec 2026
Book = Rolling ; Tree = ysi_is
Resident Services
Resident Programming 0 0 0 0 0 0 11,167 0 0 11,167
RS Client Assistance 0 0 0 0 0 0 5,736 0 0 5,736
Resident Services - External 0 0 0 0 0 0 267,949 0 0 267,949
Total Resident Services 0 0 0 0 0 0 284,852 0 0 284,852
Utilities Expense
Water 0 10,517 0 0 0 0 0 0 2,167 12,684
Electricity 0 16,015 0 0 0 0 0 0 0 16,015
Gas 0 7,295 0 0 0 0 0 0 0 7,295
Trash Removal - Recycling 0 1,224 0 0 0 0 0 0 0 1,224
Trash Removal - Regular 0 6,900 0 0 839 0 0 0 0 7,739
Total Utility Expenses 0 41,951 0 0 839 0 0 0 2,167 44,957
Maintenance Expenses
Maintenance - On Call 0 0 0 600 0 0 0 0 396 996
Maintenance - Uniforms 0 0 0 5,000 0 200 0 0 0 5,200
Tools and Equipment 0 0 0 1,291 0 0 0 0 0 1,291
Equipment Rentals 0 3,000 0 0 2,097 0 0 0 0 5,097
Total General Maint Expense 0 3,000 0 6,891 2,097 200 0 0 396 12,583
Supplies-Grounds 0 800 0 0 0 0 0 0 45 845
Supplies-Electrical 0 62 0 0 0 0 0 0 10 72
Supplies-Pest Control 0 48 0 0 0 0 0 0 0 48
Supplies-Janitorial 0 1,550 0 0 0 0 0 0 0 1,550
Supplies-General 0 0 0 5,101 0 0 0 0 36 5,137
Supplies-HVAC 0 199 0 0 0 0 0 0 0 199
Total Supplies | Materials 0 2,658 0 5,101 0 0 0 0 91 7,851
Contract-Work Orders - Internal 0 11,977 0 0 0 0 0 0 1,800 13,777
Contract-Preventative - Internal 0 1,500 0 0 0 0 0 0 0 1,500
Contract-System Services 0 2,655 0 0 0 0 0 0 8,000 10,655
Contract-Access Control 0 356 0 0 0 0 0 0 0 356
Contract-Roof|Gutter 0 4,980 0 0 0 0 0 0 0 4,980
Contract-Pressure Washing 0 3,000 0 0 0 0 0 0 0 3,000
Contract-Carpet Cleaning 0 1,000 0 0 0 0 0 0 0 1,000
Contract-Pest Control 0 2,400 0 0 0 0 0 0 360 2,760
Contract-Grounds 0 7,872 0 0 0 0 0 0 4,128 12,000
Contract-Snow Removal 0 4,044 0 0 0 0 0 0 2,163 6,207
Contract-Tree Service 0 1,770 0 0 0 0 0 0 0 1,770
Contract-Janitorial 0 23,676 0 0 0 0 0 0 0 23,676
Contract-Plumbing 0 765 0 0 0 0 0 0 1,100 1,865
Contract-HVAC 0 1,623 0 0 0 0 0 0 0 1,623
Contract-Alarms 0 966 0 0 0 0 0 0 0 966
Contract-Irrigation Repairs 0 1,109 0 0 0 0 0 0 0 1,109
Contract-General 0 220 0 0 0 0 0 0 0 220
Total Contract Costs 0 69,914 0 0 0 0 0 0 17,551 87,465
Total Maintenance Expenses - Core 0 75,572 0 11,992 2,097 200 0 0 18,038 107,899
Total Maintenance Expenses 0 75,572 0 11,992 2,097 200 0 0 18,038 107,899
Vehicle-Fuel 0 0 150 14,556 142 2,024 0 50 52 16,974
Vehicle-Repairs 0 0 1,500 7,371 0 125 0 0 0 8,996
Vehicle-Fixed Fee Maintenance 0 0 0 10 0 0 0 0 0 10
Vehicle-Lease 0 0 0 -3,441 0 0 0 0 0 -3,441
Total Vehicle Expenses 0 0 1,650 18,496 142 2,149 0 50 52 22,539
Page 67 of 116 79
1e|Agency - Business Units
cat.fund COCCs dept-dev+dept-mtc dept-pm dept-ra dept-rs dept-ste Gen Fund +Total
Budget Budget Budget Budget Budget Budget Budget Budget Budget Actual
OPERATING REVENUES
Period = Jan 2026-Dec 2026
Book = Rolling ; Tree = ysi_is
Insurance & Taxes Expenses
Insurance - Property 0 20,225 0 0 0 0 0 0 75,279 95,504
Insurance - Liability 0 4,390 0 0 0 0 0 0 5,628 10,018
Insurance - Umbrella 0 320 0 0 0 0 0 0 6,680 7,000
Insurance - D&O | E&O 0 30,290 0 0 0 0 0 0 0 30,290
Insurance - Auto 0 0 1,478 22,196 0 1,478 0 0 0 25,152
Insurance - Specialty | Other 0 63,186 0 0 0 0 6,274 0 0 69,460
Misc. Taxes & Licenses 0 300 0 0 0 0 0 0 0 300
Total Tax & Insurance Expenses 0 118,711 1,478 22,196 0 1,478 6,274 0 87,587 237,724
Other General Expenses
Membership and Fees 0 29,370 1,920 0 600 1,247 0 0 0 33,137
Bank Fees 0 0 0 0 0 0 0 0 539 539
Filing Fees 0 0 0 0 0 0 0 0 26 26
Office Supplies 0 9,515 0 1,620 2,000 128 640 170 0 14,072
Copier and Printer Usage | Supplies 0 9,909 0 3,131 2,633 0 0 0 0 15,673
Postage Usage | Supplies 0 3,437 0 0 3,943 11,533 0 0 0 18,913
Publications 0 1,640 360 0 0 282 0 0 0 2,282
Small Office Equipment 0 1,737 0 0 1,200 1,400 0 0 0 4,337
Meetings Expenses 0 11,544 600 50 29,381 360 470 0 0 42,406
Miscellaneous General Expense 0 1,812 600 674 0 685 0 816 0 4,587
Total Other General Expenses 0 68,964 3,480 5,474 39,758 15,635 1,110 986 565 135,973
TOTAL GENERAL EXPENSES 0 305,200 6,608 58,158 42,836 19,463 292,235 1,036 108,409 833,943
TOTAL DIRECT OPERATING EXPENSES 0 4,865,669 967,576 1,149,992 601,120 1,306,200 1,756,491 1,766,808 111,047 12,524,900
TOTAL OPERATING EXPENSES 369,000 -64,821 2,100,578 1,472,901 2,099,274 2,022,297 2,297,199 2,117,427 111,047 12,524,900
NET OPERATING INCOME 62,134 64,821 -755,203 -17,956 831,440 0 -230,806 1,183 432,311 387,925
NON-OPERATING INCOME | EXPENSE
NON OPERATING INCOME
Interest Income - Soft Debt 0 0 0 0 0 0 0 0 1,466,859 1,466,859
Interest Income - Hard Debt 0 0 0 0 0 0 0 0 201,315 201,315
TOTAL NON OPERATING INCOME 0 0 0 0 0 0 0 0 1,668,174 1,668,174
NON OPERATING EXPENSES
Interest Expense - Soft Loans 0 0 0 0 0 0 0 0 684 684
Interest Expense - Hard Loans 0 11,991 0 0 0 0 0 0 10,155 22,146
Interest Expense - Other 0 0 0 11,915 0 0 0 0 0 11,915
Interest Expense - Bond 1 0 0 0 0 0 0 0 0 169,642 169,642
Other Financing Costs 0 0 500 0 0 0 0 0 0 500
0 11,991 500 11,915 0 0 0 0 180,481 204,886
Depreciation - Buildings 0 726 0 6,423 0 0 0 0 48,667 55,817
Depreciation - Furn,Fix,Equip - Common 0 11,310 0 0 0 0 0 0 0 11,310
Depreciation - Improvements 0 40,794 0 0 0 0 0 0 0 40,794
Amortization - Leased Assets 0 0 0 25,065 0 0 0 0 0 25,065
0 52,831 0 31,488 0 0 0 0 48,667 132,987
Operating Transfers 0 0 0 0 0 0 0 0 100,000 100,000
TOTAL NON OPERATING EXPENSES 0 64,822 500 43,403 0 0 0 0 329,148 437,873
PARTNERSHIP INCOME(EXPENSES)
Income (Loss) - Partnerships 0 0 0 0 0 0 0 0 55,500 55,500
TOTAL PARTNERSHIP INCOME(EXPENSES)0 0 0 0 0 0 0 0 55,500 55,500
NET NON-OPERATING INCOME(EXPENSE)0 -64,822 -500 -43,403 0 0 0 0 1,394,525 1,285,801
Page 68 of 116 80
1e|Agency - Business Units
cat.fund COCCs dept-dev+dept-mtc dept-pm dept-ra dept-rs dept-ste Gen Fund +Total
Budget Budget Budget Budget Budget Budget Budget Budget Budget Actual
OPERATING REVENUES
Period = Jan 2026-Dec 2026
Book = Rolling ; Tree = ysi_is
NET INCOME (LOSS)62,134 0 -755,703 -61,360 831,440 0 -230,806 1,183 1,826,837 1,673,726
Page 69 of 116 81
2a|Vouchers Combined
Description 01/25 - 12/25 01/26 - 12/26 Amount Percent
Proforma Advanced Budget Variance Variance
OPERATING REVENUES
VOUCHER REVENUE
Housing Choice Voucher HAP Earned 21,472,984 20,054,731 -1,418,253 -6.6%
Housing Choice Voucher Admin. Fee Income 1,679,572 1,412,096 -267,476 -15.9%
Housing Choice Voucher Port-In Admin Fees 19,402 0 -19,402 -100.0%
1,000 0 -1,000 -100.0%
TOTAL VOUCHER REVENUE 23,172,958 21,466,827 -1,706,131 -7.4%
OTHER INCOME
Miscellaneous Income 122,209 115,248 -6,961 -5.7%
Fraud Recovery 6,346 3,416 -2,930 -46.2%
Interest Income - Unrestricted 23,522 8,000 -15,522 -66.0%
TOTAL OTHER INCOME 152,076 126,664 -25,412 -16.7%
TOTAL OPERATING REVENUE 23,325,034 21,593,491 -1,731,543 -7.4%
OPERATING EXPENSES
DIRECT OPERATING EXPENSES
ADMINISTRATIVE
Labor Expenses
Salaries & Wages 0 0 0
ER Benefit Contribution 0 0 0
ER Life, Disability, Supplemental Insurance 0 0 0
ER Retirement Contributions 0 0 0
ER Payroll Taxes 0 0 0
Total Benefits Expenses 0 0 0
Total Labor Expenses 0 0 0
Legal Expense
Legal-Criminal Background Checks 3,715 4,507 792 21.3%
Legal-Tenant Screening 645 26 -619 -96.0%
Legal-General Expense 502 1,437 935 186.3%
Total Legal Expense 4,862 5,971 1,109 22.8%
Management Related Expense
Voucher Management Expense 1,860,674 2,022,297 161,623 8.7%
Total Management Related Expenses 1,860,674 2,022,297 161,623 8.7%
Other Administrative Expenses
Auditing & Tax Services 41,192 43,550 2,358 5.7%
Port Out Admin Fee Paid 11,480 13,871 2,391 20.8%
Total Other Administrative Expenses 52,672 57,422 4,750 9.0%
Technology Expenses
2 Year Annual Comparison - Current
Project Start Date = 1/1/2026
Cutoff Date = 08/2025
Page 70 of 116 82
2a|Vouchers Combined
Description 01/25 - 12/25 01/26 - 12/26 Amount Percent
Proforma Advanced Budget Variance Variance
Project Start Date = 1/1/2026
Cutoff Date = 08/2025
Telephone - Landline 0 0 0
Total Technology Expenses 0 0 0
TOTAL ADMINISTRATIVE EXPENSES 1,918,208 2,085,690 167,482 8.7%
GENERAL EXPENSES
Resident Services
RS Client Assistance 3,500 0 -3,500 -100.0%
Total Resident Services 3,500 0 -3,500 -100.0%
Maintenance Expenses
Contract-Inspections Services 35,187 20,650 -14,537 -41.3%
Total Contract Costs 35,187 20,650 -14,537 -41.3%
Total Maintenance Expenses - Core 35,187 20,650 -14,537 -41.3%
Total Maintenance Expenses 35,187 20,650 -14,537 -41.3%
TOTAL GENERAL EXPENSES 38,687 20,650 -18,037 -46.6%
HOUSING ASSISTANCE PAYMENTS
HAP: Housing Assistance Payments 20,703,127 19,438,860 -1,264,267 -6.1%
Tenant Utility Payments 121,946 138,904 16,958 13.9%
Portable Out HAP Payments 235,084 316,331 81,247 34.6%
Family Self Sufficiency Escrow Payments 215,649 251,524 35,875 16.6%
Security Deposit Assistance 250 0 -250 -100.0%
TOTAL HOUSING ASSISTANCE PAYMENTS 21,276,056 20,145,619 -1,130,437 -5.3%
MTW Expenses
MTW Sign On Bonus 5,000 0 -5,000 -100.0%
Total MTW Expenses 5,000 0 -5,000 -100.0%
TOTAL DIRECT OPERATING EXPENSES 23,237,951 22,251,959 -985,992 -4.2%
TOTAL OPERATING EXPENSES 23,237,951 22,251,959 -985,992 -4.2%
NET OPERATING INCOME 87,083 -658,469 -745,552 -856.1%
NON-OPERATING INCOME | EXPENSE
NON OPERATING EXPENSES
Operating Transfers -4,500 0 4,500 -100.0%
TOTAL NON OPERATING EXPENSES -4,500 0 4,500 -100.0%
GAIN (LOSS) - SALES OF ASSETS
Proceeds - Sale of Capital Assets 0 0 0
NET GAIN (LOSS) - SALE OF ASSETS 0 0 0
NET NON-OPERATING INCOME(EXPENSE)4,500 0 -4,500 -100.0%
NET INCOME (LOSS)91,583 -658,469 -750,052 -819.0%
Page 71 of 116 83
2b|Vouchers by Type
dohvchr hcv-ms5 lcmainsr vofch vohcemer volar Other Total
Budget Budget Budget Budget Budget Budget Budget Actual
OPERATING REVENUES
VOUCHER REVENUE
Housing Choice Voucher HAP Earned 0 2,264,856 695,510 16,326,890 346,839 420,636 0 20,054,731
0 155,035 50,323 1,161,400 17,004 28,334 0 1,412,096
TOTAL VOUCHER REVENUE 0 2,419,891 745,833 17,488,290 363,843 448,970 0 21,466,827
OTHER INCOME
Miscellaneous Income 115,248 0 0 0 0 0 0 115,248
Fraud Recovery 0 0 0 3,416 0 0 0 3,416
Interest Income - Unrestricted 0 2,000 0 5,000 1,000 0 0 8,000
TOTAL OTHER INCOME 115,248 2,000 0 8,416 1,000 0 0 126,664
TOTAL OPERATING REVENUE 115,248 2,421,891 745,833 17,496,706 364,843 448,970 0 21,593,491
OPERATING EXPENSES
DIRECT OPERATING EXPENSES
ADMINISTRATIVE
Legal Expense
Legal-Criminal Background Checks 52 438 19 3,455 25 74 443 4,507
Legal-Tenant Screening 0 0 0 0 0 0 26 26
Legal-General Expense 83 0 0 900 351 0 103 1,437
Total Legal Expense 135 438 19 4,355 376 74 573 5,971
Management Related Expense
Voucher Management Expense 157,001 233,260 68,694 1,505,184 21,090 37,068 0 2,022,297
Total Management Related Expenses 157,001 233,260 68,694 1,505,184 21,090 37,068 0 2,022,297
Other Administrative Expenses
Auditing & Tax Services 0 3,249 7,254 28,355 414 4,278 0 43,550
Port Out Admin Fee Paid 0 0 0 8,638 0 1,230 4,004 13,871
Total Other Administrative Expenses 0 3,249 7,254 36,993 414 5,508 4,004 57,422
TOTAL ADMINISTRATIVE EXPENSES 157,137 236,947 75,967 1,546,532 21,880 42,650 4,577 2,085,690
GENERAL EXPENSES
Maintenance Expenses
Contract-Inspections Services 3,771 1,347 2,694 11,313 359 1,167 0 20,650
Total Contract Costs 3,771 1,347 2,694 11,313 359 1,167 0 20,650
Total Maintenance Expenses - Core 3,771 1,347 2,694 11,313 359 1,167 0 20,650
Total Maintenance Expenses 3,771 1,347 2,694 11,313 359 1,167 0 20,650
TOTAL GENERAL EXPENSES 3,771 1,347 2,694 11,313 359 1,167 0 20,650
HOUSING ASSISTANCE PAYMENTS
Book = Rolling ; Tree = ysi_is
Property Comparison
Period = Jan 2026-Dec 2026
Page 72 of 116 84
2b|Vouchers by Type
dohvchr hcv-ms5 lcmainsr vofch vohcemer volar Other Total
Budget Budget Budget Budget Budget Budget Budget Actual
Book = Rolling ; Tree = ysi_is
Property Comparison
Period = Jan 2026-Dec 2026
HAP: Housing Assistance Payments 0 2,219,600 679,152 15,761,014 343,358 435,736 0 19,438,860
Tenant Utility Payments 0 22,677 1,566 109,330 3,481 1,850 0 138,904
Portable Out HAP Payments 0 0 14,402 284,883 0 17,047 0 316,331
0 22,579 190 228,382 0 373 0 251,524
0 2,264,856 695,310 16,383,609 346,839 455,006 0 20,145,619
TOTAL DIRECT OPERATING EXPENSES 160,908 2,503,150 773,971 17,941,454 369,078 498,823 4,577 22,251,959
TOTAL OPERATING EXPENSES 160,908 2,503,150 773,971 17,941,454 369,078 498,823 4,577 22,251,959
NET OPERATING INCOME -45,660 -81,259 -28,138 -444,748 -4,235 -49,853 -4,577 -658,469
NET INCOME (LOSS)-45,660 -81,259 -28,138 -444,748 -4,235 -49,853 -4,577 -658,469
Page 73 of 116 85
3a|LIHTC Summary and DSCR
MASON OAK REDTAIL VOH IMPALA VOP VOR VOSH Total
Budget Budget Budget Budget Budget Budget Budget Budget Budget
OPERATING REVENUES
NET POTENTIAL RENT 1,185,185 1,138,809 1,100,646 1,572,942 1,590,228 1,673,178 980,305 4,167,165 13,408,459
EFFECTIVE GROSS INCOME 1,165,488 1,086,637 1,075,433 1,547,519 1,576,969 1,628,295 967,309 4,133,844 13,181,494
TOTAL OTHER INCOME 14,771 69,234 12,765 8,060 224 19,330 6,784 48,046 179,214
TOTAL OPERATING REVENUE 1,340,436 1,155,871 1,550,595 1,555,579 1,577,193 1,647,625 974,093 4,181,891 13,983,282
OPERATING EXPENSES
DIRECT OPERATING EXPENSES
Total Labor Expenses 147,478 147,478 147,478 147,478 147,478 147,478 117,982 442,434 1,445,282
Total Legal Expense 5,197 13,818 4,708 6,000 10,528 9,472 9,161 32,178 91,062
Total Management Related Expenses 120,488 155,648 123,844 273,016 217,672 190,546 170,251 485,192 1,736,656
Total Other Administrative Expenses 13,424 24,412 14,118 18,766 20,580 25,328 16,496 41,869 174,992
Total Technology Expenses 25,708 19,502 40,985 42,439 15,492 19,034 32,272 52,654 248,087
Total Compliance Expenses 6,120 9,227 6,120 9,792 8,772 9,690 7,344 29,172 86,237
TOTAL ADMINISTRATIVE EXPENSES 318,415 370,084 337,253 497,490 420,522 401,548 353,506 1,083,498 3,782,316
GENERAL EXPENSES
Total Resident Services 528,184 0 610,832 109,265 0 0 0 327,796 1,576,077
Total Utility Expenses 92,457 90,267 91,712 101,356 98,328 106,307 84,225 221,366 886,020
Total Maintenance Expenses 163,049 195,510 184,345 281,864 210,996 262,084 226,903 787,012 2,311,763
Total Vehicle Expenses 0 95 0 0 0 0 0 0 95
Total Tax & Insurance Expenses 59,234 78,038 49,767 86,566 96,779 96,536 67,843 229,839 764,602
Total Other General Expenses 4,806 5,370 13,545 1,299 2,621 9,235 2,238 6,264 45,378
Total Reserve Allowances 20,259 25,897 22,285 31,680 30,999 51,069 37,577 113,004 332,770
TOTAL GENERAL EXPENSES 867,989 395,177 972,486 612,031 439,723 525,231 418,786 1,685,281 5,916,705
TOTAL DIRECT OPERATING EXPENSES 1,186,404 765,261 1,309,739 1,109,521 860,245 926,779 772,293 2,768,778 9,699,020
TOTAL OPERATING EXPENSES 1,186,404 765,261 1,309,739 1,109,521 860,245 926,779 772,293 2,768,778 9,699,020
NET OPERATING INCOME 154,032 390,610 240,855 446,058 716,948 720,846 201,800 1,413,112 4,284,262
-829,648 -1,500,526 -612,463 -1,314,357 -953,780 -961,336 -1,100,307 -3,672,893 -10,945,309
NET INCOME (LOSS)-675,616 -1,109,916 -371,608 -868,299 -236,831 -240,490 -898,507 -2,259,782 -6,661,047
DEBT SERVICE 123,791 336,906 126,708 383,193 545,148 345,510 148,971 1,073,692
DSCR TARGET 1.20 1.15 1.20 1.15 1.15 1.20 1.15 1.15
DSCR BUDGETED 1.24 1.16 1.90 1.16 1.32 2.09 1.35 1.32
SHORTFALL | OVERAGE $5,483 3,168 88,805 5,386 90,028 306,234 30,484 178,366
Property Comparison
Period = Jan 2026-Dec 2026
Book = Rolling ; Tree = ysi_is
Page 74 of 116 86
3b|LIHTC Detail by Property
MASON OAK REDTAIL VOH IMPALA VOP VOR VOSH Total
Budget Budget Budget Budget Budget Budget Budget Budget Actual
OPERATING REVENUES
RENTAL INCOME
NET RENTAL INCOME
POTENTIAL RENTAL INCOME
Gross Potential Rent 1,221,840 1,330,878 1,102,909 1,775,287 1,768,781 1,820,250 1,153,504 5,042,339 15,215,788
(Loss) Gain to Lease 0 -151,912 30,824 -131,333 -39,092 -92,465 -138,591 -709,648 -1,232,217
Less: Vacancies -36,655 -39,926 -33,087 -71,012 -53,061 -54,608 -34,608 -163,369 -486,326
Less: Concessions 0 -230 0 0 -86,400 0 0 -2,157 -88,787
NET POTENTIAL RENT 1,185,185 1,138,809 1,100,646 1,572,942 1,590,228 1,673,178 980,305 4,167,165 13,408,459
NET POTENTIAL RENT ADJUSTMENTS
Less: Allowance for Doubtful Accounts -19,697 -55,328 -25,213 -29,479 -17,707 -54,436 -17,281 -139,103 -358,244
Pet Rent 0 3,156 0 3,552 4,448 4,620 3,890 7,366 27,032
Storage Rent 0 0 0 0 0 0 0 97,200 97,200
Add: Recoveries 0 0 0 0 0 0 395 1,216 1,611
NET POTENTIAL RENT ADJUSTMENTS -19,697 -52,172 -25,213 -25,927 -13,259 -49,816 -12,996 -33,321 -232,401
NET RENTAL INCOME 1,165,488 1,086,637 1,075,433 1,547,015 1,576,969 1,623,362 967,309 4,133,844 13,176,057
OTHER TENANT INCOME
Ancillary Income 0 0 0 504 0 4,933 0 0 5,437
TOTAL OTHER TENANT INCOME 0 0 0 504 0 4,933 0 0 5,437
EFFECTIVE GROSS INCOME 1,165,488 1,086,637 1,075,433 1,547,519 1,576,969 1,628,295 967,309 4,133,844 13,181,494
GRANT REVENUE
Grants - HUD CoC 110,172 0 412,392 0 0 0 0 0 522,564
Grants - County 50,005 0 50,005 0 0 0 0 0 100,010
TOTAL GRANT REVENUE 160,177 0 462,397 0 0 0 0 0 622,574
OTHER INCOME
Miscellaneous Income 0 0 11,614 0 0 0 0 0 11,614
Interest Income - Unrestricted 14,771 19,234 1,151 8,060 224 19,330 6,784 48,046 117,600
HC Mission-Driven Support 0 50,000 0 0 0 0 0 0 50,000
TOTAL OTHER INCOME 14,771 69,234 12,765 8,060 224 19,330 6,784 48,046 179,214
TOTAL OPERATING REVENUE 1,340,436 1,155,871 1,550,595 1,555,579 1,577,193 1,647,625 974,093 4,181,891 13,983,282
OPERATING EXPENSES
DIRECT OPERATING EXPENSES
ADMINISTRATIVE
Labor Expenses
Management Labor 147,478 147,478 147,478 147,478 147,478 147,478 117,982 442,434 1,445,282
Total Labor Expenses 147,478 147,478 147,478 147,478 147,478 147,478 117,982 442,434 1,445,282
Legal Expense
Legal-Criminal Background Checks 0 0 0 0 0 0 0 334 334
Legal-Tenant Screening 308 2,568 365 2,400 9,684 2,716 1,433 8,843 28,317
Legal-General Expense 4,889 11,250 4,343 3,600 844 6,756 7,728 23,000 62,411
Total Legal Expense 5,197 13,818 4,708 6,000 10,528 9,472 9,161 32,178 91,062
Management Related Expense
Property Management Expense 72,293 83,811 90,069 128,478 128,991 138,579 80,118 352,867 1,075,204
Accounting/Bookkeeping Expense 48,195 71,838 33,776 144,538 88,681 51,967 90,133 132,325 661,452
Total Management Related Expenses 120,488 155,648 123,844 273,016 217,672 190,546 170,251 485,192 1,736,656
Other Administrative Expenses
Staff Training & Conferences 0 252 0 0 0 0 0 0 252
Property Comparison
Book = Rolling ; Tree = ysi_is
Page 75 of 116 87
3b|LIHTC Detail by Property
MASON OAK REDTAIL VOH IMPALA VOP VOR VOSH Total
Budget Budget Budget Budget Budget Budget Budget Budget Actual
Period = Jan 2026-Dec 2026
Book = Rolling ; Tree = ysi_is
Training Services and Platforms 1,397 2,844 1,397 5,403 4,840 5,347 1,676 16,056 38,959
Mileage 145 192 109 379 720 72 1,842 834 4,293
Meals - Business Partners 0 30 0 0 0 0 0 0 30
Auditing & Tax Services 11,123 14,866 11,871 11,181 12,864 12,348 11,441 13,020 98,715
Marketing 450 51 138 36 0 50 237 1,216 2,177
Resident Relocation 309 0 603 0 0 5,308 585 0 6,805
Parking Fees 0 13 0 1 0 0 0 0 14
Security Services 0 6,063 0 1,264 2,052 2,203 716 9,205 21,502
Miscellaneous Admin Expenses 0 100 0 502 104 0 0 1,538 2,243
Total Other Administrative Expenses 13,424 24,412 14,118 18,766 20,580 25,328 16,496 41,869 174,992
Technology Expenses
Managed Services - Internal 15,492 15,492 15,492 15,492 15,492 15,492 12,394 46,476 151,822
Cable Services 0 0 234 0 0 0 0 0 234
Telephone - Landline 4,427 231 13,461 10,147 0 381 7,822 281 36,751
Internet Services 4,680 3,779 9,579 16,800 0 3,161 11,564 3,870 53,433
Cellular - Phones | Tablets 1,109 0 2,219 0 0 0 493 2,026 5,847
Total Technology Expenses 25,708 19,502 40,985 42,439 15,492 19,034 32,272 52,654 248,087
Compliance Expenses
Compliance Services - Internal 6,120 8,058 6,120 9,792 8,772 9,690 7,344 29,172 85,068
Compliance Services - Consultants 0 1,169 0 0 0 0 0 0 1,169
Total Compliance Expenses 6,120 9,227 6,120 9,792 8,772 9,690 7,344 29,172 86,237
TOTAL ADMINISTRATIVE EXPENSES 318,415 370,084 337,253 497,490 420,522 401,548 353,506 1,083,498 3,782,316
GENERAL EXPENSES
Resident Services
Resident Services - Internal 448,007 0 168,435 109,265 0 0 0 327,796 1,053,503
Resident Services - VE Fund Credits -80,000 0 -20,000 0 0 0 0 0 -100,000
RS - Grant Expenses 160,177 0 462,397 0 0 0 0 0 622,574
Total Resident Services 528,184 0 610,832 109,265 0 0 0 327,796 1,576,077
Utilities Expense
Water 16,046 21,992 13,349 56,127 30,883 42,838 36,880 143,813 361,927
Electricity 56,234 42,636 65,796 23,300 40,166 12,759 18,734 28,556 288,180
Electricity-Vacant Units 0 2,709 0 967 2,343 2,890 349 7,438 16,698
Gas 13,462 10,430 5,107 2,191 3,240 35,472 2,167 8,727 80,796
Gas-Vacant Units 0 0 0 32 0 0 184 1,323 1,539
Trash Removal - Recycling 0 3,050 0 5,291 9,985 0 0 6,788 25,114
Trash Removal - Regular 6,716 9,150 7,460 12,751 10,896 12,348 25,911 22,427 107,660
Trash Removal - Overage 0 300 0 697 816 0 0 2,293 4,107
Total Utility Expenses 92,457 90,267 91,712 101,356 98,328 106,307 84,225 221,366 886,020
Maintenance Expenses
Maintenance - On Call 300 372 310 496 155 491 372 1,433 3,929
Tools and Equipment 47 0 0 0 0 0 0 0 47
Equipment Rentals 0 0 0 0 0 0 0 128 127
Total General Maint Expense 348 372 310 496 155 491 372 1,560 4,104
Supplies-Grounds 938 957 875 2,651 460 3,861 1,034 4,098 14,873
Supplies-Appliances 410 400 1,107 2,875 1,159 2,652 3,248 17,655 29,507
Supplies-Electrical 1,272 1,698 2,344 2,977 269 2,592 1,791 6,041 18,984
Supplies-Pest Control 9 5 201 60 0 45 12 198 530
Page 76 of 116 88
3b|LIHTC Detail by Property
MASON OAK REDTAIL VOH IMPALA VOP VOR VOSH Total
Budget Budget Budget Budget Budget Budget Budget Budget Actual
Period = Jan 2026-Dec 2026
Book = Rolling ; Tree = ysi_is
Supplies-Janitorial 2,317 1,116 2,595 1,486 1,046 739 1,405 3,470 14,173
Supplies-General 443 470 2,589 534 954 1,345 527 803 7,667
Supplies-Plumbing 637 1,530 2,960 4,873 798 4,016 3,350 4,922 23,087
Supplies-Paint 428 155 597 858 0 417 437 1,404 4,296
Supplies-HVAC 739 994 1,343 2,190 48 334 395 2,858 8,901
Supplies-Doors 1,842 2,083 2,651 2,043 2,399 3,440 1,390 11,039 26,886
Supplies-Windows 2,471 585 59 2,194 0 701 1,768 948 8,726
Total Supplies | Materials 11,506 9,993 17,322 22,742 7,133 20,140 15,357 53,435 157,629
Contract-Work Orders - Internal 35,545 53,994 40,182 90,795 39,795 82,102 88,574 238,870 669,857
Contract-Preventative - Internal 10,500 13,500 11,500 19,750 15,000 41,000 15,750 64,250 191,250
Contract-Preventative - External 2,820 0 5,400 2,820 3,600 0 2,820 0 17,460
Contract-Painting 0 0 129 0 0 227 0 0 356
Contract-System Services 2,856 2,856 250 2,554 1,500 259 0 0 10,275
Contract-Access Control 6,420 1,559 1,615 4,500 2,250 5,044 5,940 0 27,328
Contract-Appliance 900 1,089 244 9,402 0 1,156 8,101 20,659 41,552
Contract-Roof|Gutter 0 0 0 0 2,040 0 872 29,800 32,712
Contract-Pressure Washing 2,000 3,000 2,000 5,000 6,000 7,000 3,650 12,500 41,150
Contract-Carpet Cleaning 1,778 4,698 379 0 800 395 0 716 8,767
Contract-Electrical 1,169 936 5,862 4,989 0 2,757 1,293 2,980 19,985
Contract-Pest Control 1,238 797 1,172 6,311 774 7,575 1,016 14,041 32,924
Contract-Flooring 0 0 0 0 0 1,622 0 1,465 3,087
Contract-Grounds 4,236 1,728 8,496 21,024 32,424 20,556 19,812 73,920 182,196
Contract-Snow Removal 3,558 3,600 6,642 17,970 9,714 8,304 7,104 28,038 84,930
Contract-Tree Service 318 318 0 0 1,719 5,362 5,306 6,344 19,367
Contract-Janitorial 21,348 28,476 25,296 10,200 53,147 4,032 5,040 8,028 155,567
Contract-Plumbing 1,383 2,251 2,120 12,493 937 9,971 13,573 44,012 86,739
Contract-HVAC 7,253 1,759 5,283 4,019 5,000 402 4,668 19,105 47,491
Contract-Fire Suppression 7,012 3,487 2,917 6,942 3,500 850 5,577 4,622 34,907
Contract-Windows 0 3,685 183 1,177 442 754 0 1,811 8,053
Contract-Elevators 8,493 6,394 7,906 0 0 0 0 0 22,793
Contract-Irrigation Repairs 1,260 458 1,422 2,843 500 2,524 1,863 7,756 18,626
Contract-General 4,859 2,259 4,905 4,442 416 3,334 3,310 8,200 31,727
Total Contract Costs 124,947 136,845 133,902 227,231 179,558 205,228 194,269 587,116 1,789,097
Total Maintenance Expenses - Core 136,801 147,210 151,535 250,470 186,846 225,859 209,998 642,113 1,950,830
Unit Turn-Work Order 6,960 17,400 8,700 11,310 8,700 13,050 6,090 52,200 124,410
Unit Turn-External Painting 5,712 14,280 7,140 9,282 7,140 10,710 4,998 42,840 102,102
Unit Turn-External Janitorial 1,328 3,320 1,660 2,158 1,660 2,490 1,162 9,960 23,738
Unit Turn-External Trash Out 8,824 5,660 11,030 3,679 2,830 4,245 1,981 16,980 55,229
Unit Turn-External Floor Care 336 840 420 546 420 630 294 2,520 6,006
Unit Turn-External Trade 1,240 2,180 1,550 1,417 1,090 1,635 763 6,540 16,415
Unit Turn-Materials Paint 936 2,340 1,170 1,521 1,170 1,755 819 7,020 16,731
Unit Turn-Materials Misc 912 2,280 1,140 1,482 1,140 1,710 798 6,840 16,302
Total Unit Turn Costs 26,248 48,300 32,810 31,395 24,150 36,225 16,905 144,900 360,932
Total Maintenance Expenses 163,049 195,510 184,345 281,864 210,996 262,084 226,903 787,012 2,311,763
Vehicle-Fuel 0 95 0 0 0 0 0 0 95
Total Vehicle Expenses 0 95 0 0 0 0 0 0 95
Insurance & Taxes Expenses
Insurance - Property 49,447 67,072 39,620 75,136 82,182 83,037 56,921 196,566 649,982
Page 77 of 116 89
3b|LIHTC Detail by Property
MASON OAK REDTAIL VOH IMPALA VOP VOR VOSH Total
Budget Budget Budget Budget Budget Budget Budget Budget Actual
Period = Jan 2026-Dec 2026
Book = Rolling ; Tree = ysi_is
Insurance - Liability 3,106 5,015 3,467 4,750 8,197 5,065 4,242 17,040 50,882
Insurance - Umbrella 6,681 5,951 6,680 6,680 6,400 8,434 6,680 16,233 63,738
Total Tax & Insurance Expenses 59,234 78,038 49,767 86,566 96,779 96,536 67,843 229,839 764,602
Other General Expenses
Membership and Fees 537 103 127 0 0 413 0 0 1,180
Bank Fees 0 0 3,353 0 31 0 52 0 3,436
Filing Fees 52 51 52 52 52 103 52 26 438
Office Supplies 1,122 1,644 1,880 425 67 608 477 3,501 9,724
Copier and Printer Usage | Supplies 1,874 3,571 6,531 585 2,472 255 1,380 2,421 19,089
Postage Usage | Supplies 15 0 0 0 0 0 34 317 365
Small Office Equipment 180 0 428 237 0 100 81 0 1,026
Meetings Expenses 1,026 0 1,173 0 0 100 163 0 2,463
Facilities Rent 0 0 0 0 0 7,657 0 0 7,657
Total Other General Expenses 4,806 5,370 13,545 1,299 2,621 9,235 2,238 6,264 45,378
Reserve Allowances
Reserve Account Funding Allowance 20,259 25,897 22,285 31,680 30,999 51,069 37,577 113,004 332,770
Total Reserve Allowances 20,259 25,897 22,285 31,680 30,999 51,069 37,577 113,004 332,770
TOTAL GENERAL EXPENSES 867,989 395,177 972,486 612,031 439,723 525,231 418,786 1,685,281 5,916,705
TOTAL DIRECT OPERATING EXPENSES 1,186,404 765,261 1,309,739 1,109,521 860,245 926,779 772,293 2,768,778 9,699,020
TOTAL OPERATING EXPENSES 1,186,404 765,261 1,309,739 1,109,521 860,245 926,779 772,293 2,768,778 9,699,020
NET OPERATING INCOME 154,032 390,610 240,855 446,058 716,948 720,846 201,800 1,413,112 4,284,262
NON-OPERATING INCOME | EXPENSE
NON OPERATING EXPENSES
Interest Expense - Soft Loans 111,595 95,352 75,565 145,054 326,923 142,038 272,720 540,714 1,709,960
Interest Expense - Hard Loans 91,140 169,638 66,501 203,226 515,539 185,586 92,169 803,140 2,126,938
Interest Expense - Other 0 0 0 10,096 0 9,474 6,371 0 25,941
Interest Expense - Loan Fees 9,967 23,034 3,601 11,676 0 15,311 14,623 33,646 111,858
212,702 288,024 145,668 370,052 842,462 352,409 385,883 1,377,499 3,974,698
Depreciation - Buildings 434,569 813,214 348,153 826,410 140,000 475,675 610,452 1,982,652 5,631,126
Depreciation - Furn,Fix,Equip - Units 15,714 205,351 10,047 5,379 1,368 39,919 5,602 75,272 358,652
5,597 157,306 15,763 18,285 0 1,500 6,794 2,798 208,041
Depreciation - Improvements 44,480 12,069 82,715 80,634 0 95,042 112,689 206,104 633,732
Amortization - Tax Credit Fees 10,948 16,301 4,068 8,098 0 3,920 5,178 23,916 72,429
511,308 1,204,241 460,746 938,805 141,368 616,056 740,716 2,290,741 6,903,980
Resident Services - Pd from Reserves 100,000 0 0 0 0 0 0 0 100,000
TOTAL NON OPERATING EXPENSES 824,010 1,492,265 606,413 1,308,857 983,830 968,464 1,126,599 3,668,240 10,978,678
PARTNERSHIP INCOME(EXPENSES)
Tax Credit Monitoring 5,638 2,633 0 0 0 0 0 0 8,271
Partnership - Management Fee Expense 0 -5,628 -6,050 -5,500 30,050 7,129 26,292 -4,654 41,640
TOTAL PARTNERSHIP INCOME(EXPENSES)-5,638 -8,261 -6,050 -5,500 30,050 7,129 26,292 -4,654 33,369
NET NON-OPERATING INCOME(EXPENS -829,648 -1,500,526 -612,463 -1,314,357 -953,780 -961,336 -1,100,307 -3,672,893 -10,945,309
NET INCOME (LOSS)-675,616 -1,109,916 -371,608 -868,299 -236,831 -240,490 -898,507 -2,259,782 -6,661,047
Page 78 of 116 90
4a|Villages, Ltd - Consolidated
Description 01/25 - 12/25 01/26 - 12/26 Amount Percent
Proforma Advanced Budget Variance Variance
OPERATING REVENUES
RENTAL INCOME
NET RENTAL INCOME
POTENTIAL RENTAL INCOME
Gross Potential Rent 4,128,553 4,174,484 45,931 1.1%
(Loss) Gain to Lease -221,889 -424,714 -202,825 91.4%
Tenant Base Rent 68 0 -68 -100.0%
Less: Vacancies -233,129 -106,788 126,341 -54.2%
Less: Concessions -675 -175 500 -74.1%
Less: Prepaid Rents -674 0 674 -100.0%
NET POTENTIAL RENT 3,672,254 3,642,807 -29,447 -0.8%
NET POTENTIAL RENT ADJUSTMENTS
Less: Write-offs -825 0 825 -100.0%
Less: Allowance for Doubtful Accounts -78,124 -88,722 -10,598 13.6%
Pet Rent 4,221 5,146 925 21.9%
Storage Rent 2,400 3,960 1,560 65.0%
Add: Recoveries 1,706 279 -1,427 -83.6%
Repayment Agreement 1 625 0 -625 -100.0%
NET POTENTIAL RENT ADJUSTMENTS -69,997 -79,336 -9,339 13.3%
NET RENTAL INCOME 3,602,257 3,563,471 -38,786 -1.1%
OTHER TENANT INCOME
Ancillary Income 3,460 3,974 514 14.9%
Late Charges 12,891 0 -12,891 -100.0%
Less: Waived Late Charges -75 0 75 -100.0%
Legal Fees - Tenant 12,574 0 -12,574 -100.0%
NSF Charges 583 0 -583 -100.0%
Utility Reimb.-Tenant 6,718 0 -6,718 -100.0%
Misc.Tenant Income 3,528 0 -3,528 -100.0%
Tenant Work Orders 70,212 0 -70,212 -100.0%
TOTAL OTHER TENANT INCOME 109,892 3,974 -105,918 -96.4%
EFFECTIVE GROSS INCOME 3,712,149 3,567,445 -144,704 -3.9%
GRANT REVENUE
Grants - City | CDBG | Home 67,045 0 -67,045 -100.0%
TOTAL GRANT REVENUE 67,045 0 -67,045 -100.0%
OTHER INCOME
Miscellaneous Income 4,706 0 -4,706 -100.0%
Interest Income - Unrestricted 382,968 243,151 -139,817 -36.5%
TOTAL OTHER INCOME 387,674 243,151 -144,523 -37.3%
TOTAL OPERATING REVENUE 4,166,867 3,810,596 -356,271 -8.6%
OPERATING EXPENSES
Project Start Date = 1/1/2026
Cutoff Date = 08/2025
Page 79 of 116 91
4a|Villages, Ltd - Consolidated
Description 01/25 - 12/25 01/26 - 12/26 Amount Percent
Proforma Advanced Budget Variance Variance
Project Start Date = 1/1/2026
Cutoff Date = 08/2025
DIRECT OPERATING EXPENSES
ADMINISTRATIVE
Labor Expenses
Management Labor 411,086 412,937 1,851 0.5%
Total Labor Expenses 411,086 412,937 1,851 0.5%
Legal Expense
Legal-Criminal Background Checks 3,542 300 -3,242 -91.5%
Legal-Tenant Screening 2,656 5,740 3,084 116.1%
Legal-General Expense 20,369 23,578 3,209 15.8%
Total Legal Expense 26,567 29,618 3,051 11.5%
Management Related Expense
Property Management Expense 352,187 338,744 -13,443 -3.8%
Accounting/Bookkeeping Expense 300,307 286,387 -13,920 -4.6%
Total Management Related Expenses 652,494 625,131 -27,363 -4.2%
Other Administrative Expenses
Staff Training & Conferences 203 0 -203 -100.0%
Training Services and Platforms 0 10,048 10,048
Mileage 1,729 1,795 66 3.8%
Meals - Business Partners 0 0 0
Auditing & Tax Services 18,283 22,678 4,395 24.0%
Marketing 398 461 63 15.8%
Resident Relocation 6,380 4,291 -2,089 -32.7%
Consultants 2,790 0 -2,790 -100.0%
Security Services 11,878 13,347 1,469 12.4%
Miscellaneous Admin Expenses 1,209 352 -857 -70.9%
Total Other Administrative Expenses 42,870 52,973 10,103 23.6%
Technology Expenses
Managed Services - Internal 46,823 43,378 -3,445 -7.4%
Software License Fees 0 0 0
Copiers | Printers - Maintenance Agreements 0 1,220 1,220
Cable Services 5,638 0 -5,638 -100.0%
Telephone - Landline 4,294 2,719 -1,575 -36.7%
Internet Services 32,308 27,601 -4,707 -14.6%
Cellular - Phones | Tablets 888 997 109 12.3%
Total Technology Expenses 89,951 75,914 -14,037 -15.6%
Compliance Expenses 0
Compliance Services - Internal 30,662 30,600 -62 -0.2%
Compliance Services - Consultants 2,965 1,142 -1,823 -61.5%
Total Compliance Expenses 33,626 31,742 -1,884 -5.6%
TOTAL ADMINISTRATIVE EXPENSES 1,256,594 1,228,317 -28,277 -2.3%
GENERAL EXPENSES
Resident Services
Page 80 of 116 92
4a|Villages, Ltd - Consolidated
Description 01/25 - 12/25 01/26 - 12/26 Amount Percent
Proforma Advanced Budget Variance Variance
Project Start Date = 1/1/2026
Cutoff Date = 08/2025
Resident Services - Internal 101,392 0 -101,392 -100.0%
Resident Programming 69 0 -69 -100.0%
Resident Services - External 1,212 0 -1,212 -100.0%
Total Resident Services 102,673 0 -102,673 -100.0%
Utilities Expense
Water 132,821 119,497 -13,324 -10.0%
Electricity 70,827 59,729 -11,098 -15.7%
Electricity-Vacant Units 4,800 5,563 763 15.9%
Gas 71,576 70,045 -1,531 -2.1%
Gas-Vacant Units 42 37 -5 -11.9%
Trash Removal - Recycling 995 3,175 2,180 219.1%
Trash Removal - Regular 44,546 39,831 -4,715 -10.6%
Trash Removal - Overage 60 1,212 1,152 1920.0%
Total Utility Expenses 325,668 299,089 -26,579 -8.2%
Maintenance Expenses
Maintenance - On Call 854 2,067 1,213 142.0%
Total General Maint Expense 854 2,067 1,213 142.0%
Supplies-Grounds 3,435 3,896 461 13.4%
Supplies-Appliances 4,693 4,597 -96 -2.0%
Supplies-Electrical 9,448 8,798 -650 -6.9%
Supplies-Pest Control 567 289 -278 -49.0%
Supplies-Janitorial 8,326 8,921 595 7.1%
Supplies-General 2,486 3,059 573 23.0%
Supplies-Plumbing 9,298 7,421 -1,877 -20.2%
Supplies-Paint 397 1,323 926 233.2%
Supplies-HVAC 857 1,287 430 50.2%
Supplies-Doors 7,352 6,329 -1,023 -13.9%
Supplies-Windows 2,226 2,257 31 1.4%
Total Supplies | Materials 49,085 48,177 -908 -1.8%
Contract-Work Orders - Internal 168,224 182,268 14,044 8.3%
Contract-Preventative - Internal 71,212 55,800 -15,412 -21.6%
Contract-Preventative - External 0 2,820 2,820
Contract-Inspections Services 2,044 0 -2,044 -100.0%
Contract-Painting 779 185 -594 -76.3%
Contract-System Services 14,136 4,364 -9,772 -69.1%
Contract-Access Control 0 2,071 2,071
Contract-Appliance 4,356 5,405 1,049 24.1%
Contract-Roof|Gutter 2,765 12,780 10,015 362.2%
Contract-Pressure Washing 0 18,000 18,000
Page 81 of 116 93
4a|Villages, Ltd - Consolidated
Description 01/25 - 12/25 01/26 - 12/26 Amount Percent
Proforma Advanced Budget Variance Variance
Project Start Date = 1/1/2026
Cutoff Date = 08/2025
Contract-Carpet Cleaning 4,001 4,390 389 9.7%
Contract-Electrical 7,812 5,260 -2,552 -32.7%
Contract-Pest Control 18,992 11,629 -7,363 -38.8%
Contract-Flooring 1,591 2,512 921 57.9%
Contract-Grounds 183,171 66,699 -116,472 -63.6%
Contract-Snow Removal 0 48,024 48,024
Contract-Tree Service 0 15,338 15,338
Contract-Janitorial 51,269 49,025 -2,244 -4.4%
Contract-Plumbing 32,814 24,616 -8,198 -25.0%
Contract-HVAC 123 7,390 7,267 5908.1%
Contract-Fire Suppression 0 9,377 9,377
Contract-Windows 150 3,141 2,991 1994.0%
Contract-Elevators 4,373 4,249 -124 -2.8%
Contract-Irrigation Repairs 0 18,196 18,196
Contract-General 42,796 16,997 -25,799 -60.3%
Total Contract Costs 610,607 570,535 -40,072 -6.6%
Total Maintenance Expenses - Core 660,545 620,779 -39,766 -6.0%
Unit Turn-Work Order 60,569 41,760 -18,809 -31.1%
Unit Turn-External Painting 106,561 34,272 -72,289 -67.8%
Unit Turn-External Janitorial 0 7,968 7,968
Unit Turn-External Trash Out 0 13,584 13,584
Unit Turn-External Floor Care 0 2,016 2,016
Unit Turn-External Trade 0 5,232 5,232
Unit Turn-Materials Paint 26,436 5,616 -20,820 -78.8%
Unit Turn-Materials Misc 0 5,472 5,472
Total Unit Turn Costs 193,566 115,920 -77,646 -40.1%
Total Maintenance Expenses 854,112 736,699 -117,413 -13.7%
Vehicle-Fuel 131 102 -29 -22.1%
Total Vehicle Expenses 131 102 -29 -22.1%
Insurance & Taxes Expenses
Insurance - Property 143,480 139,730 -3,750 -2.6%
Insurance - Liability 17,094 17,887 793 4.6%
Insurance - Umbrella 17,246 18,623 1,377 8.0%
Insurance - Specialty | Other 1,282 0 -1,282 -100.0%
Insurance Administrative Fee - INTERNAL 17,705 17,562 -143 -0.8%
Misc. Taxes & Licenses 0 98 98
Total Tax & Insurance Expenses 196,808 193,900 -2,908 -1.5%
Other General Expenses
Membership and Fees 5,074 10,145 5,071 99.9%
Filing Fees 151 77 -74 -49.0%
Page 82 of 116 94
4a|Villages, Ltd - Consolidated
Description 01/25 - 12/25 01/26 - 12/26 Amount Percent
Proforma Advanced Budget Variance Variance
Project Start Date = 1/1/2026
Cutoff Date = 08/2025
Office Supplies 2,218 3,329 1,111 50.1%
Copier and Printer Usage | Supplies 3,838 2,309 -1,529 -39.8%
Postage Usage | Supplies 60 0 -60 -100.0%
Small Office Equipment 118 716 598 506.8%
Meetings Expenses 0 495 495
Miscellaneous General Expense 19,345 18,528 -817 -4.2%
Total Other General Expenses 30,804 35,600 4,796 15.6%
Reserve Allowances
Reserve Account Funding Allowance 71,905 90,687 18,782 26.1%
Total Reserve Allowances 71,905 90,687 18,782 26.1%
TOTAL GENERAL EXPENSES 1,582,099 1,356,077 -226,022 -14.3%
TOTAL DIRECT OPERATING EXPENSES 2,838,693 2,584,394 -254,299 -9.0%
TOTAL OPERATING EXPENSES 2,838,693 2,584,394 -254,299 -9.0%
NET OPERATING INCOME 1,328,174 1,226,202 -101,972 -7.7%
NON-OPERATING INCOME | EXPENSE
NON OPERATING INCOME
Interest Income - Soft Debt 313,185 482,264 169,079 54.0%
Interest Income - Hard Debt 14,197 17,929 3,732 26.3%
Grant Revenue - Non Operating 0 0 0
Contribution Revenue - Non Operating 0 0 0
TOTAL NON OPERATING INCOME 327,382 500,193 172,811 52.8%
NON OPERATING EXPENSES
Interest Expense - Soft Loans 227,872 236,933 9,061 4.0%
Interest Expense - Hard Loans 179,510 157,093 -22,417 -12.5%
Interest Expense - Loan Fees 4,609 3,857 -752 -16.3%
Other Financing Costs 0 0 0
411,991 397,882 -14,109 -3.4%
Depreciation - Buildings 1,181,215 1,232,252 51,037 4.3%
Depreciation - Furn,Fix,Equip - Units 135,726 132,738 -2,988 -2.2%
Depreciation - Furn,Fix,Equip - Common 20,043 23,103 3,060 15.3%
Depreciation - Improvements 46,034 53,461 7,427 16.1%
Amortization - Tax Credit Fees 691 0 -691 -100.0%
1,383,710 1,441,555 57,845 4.2%
Repayment of Grant to City 0 0 0
Operating Transfers 0 0 0
Claims Repairs & Maintenance 0 0 0
TOTAL NON OPERATING EXPENSES 1,795,701 1,839,437 43,736 2.4%
GAIN (LOSS) - SALES OF ASSETS
Page 83 of 116 95
4a|Villages, Ltd - Consolidated
Description 01/25 - 12/25 01/26 - 12/26 Amount Percent
Proforma Advanced Budget Variance Variance
Project Start Date = 1/1/2026
Cutoff Date = 08/2025
Proceeds - Sale of Capital Assets 7,775,596 2,277,000 -5,498,596 -70.7%
Sales - Unit cost 315,511 582,042 266,531 84.5%
Sales - Selling Costs -1,063,087 -136,620 926,467 -87.1%
NET GAIN (LOSS) - SALE OF ASSETS 6,396,997 1,558,338 -4,838,659 -75.6%
PARTNERSHIP INCOME(EXPENSES)
Partnership Expenses -3,801 0 3,801 -100.0%
Tax Credit Monitoring 4,535 5,420 885 19.5%
Partnership - Management Fee Expense -4,540 0 4,540 -100.0%
Asset Management Expense - INTERNAL 334,380 368,377 33,997 10.2%
Board Administration Expense - INTERNAL 48,000 48,000 0 0.0%
Overhead Expense Allocation - INTERNAL 177,486 286,402 108,916 61.4%
Income (Loss) - Partnerships 0 0 0
TOTAL PARTNERSHIP INCOME(EXPENSES)-572,743 -708,199 -135,456 23.7%
NET NON-OPERATING INCOME(EXPENSE)4,355,935 -489,105 -4,845,040 -111.2%
Page 84 of 116 96
4b|Villages, Ltd - by Property
plumplce remrow vob voc voe vol vom vos vos-6 villa-gf+Total
Budget Budget Budget Budget Budget Budget Budget Budget Budget Budget Budget
OPERATING REVENUES
RENTAL INCOME
NET RENTAL INCOME
POTENTIAL RENTAL INCOME
Gross Potential Rent 274,030 464,837 417,364 276,169 655,785 479,396 393,774 1,097,754 115,374 0 4,174,484
(Loss) Gain to Lease 3,351 -166,084 -67,088 -17,378 -38,015 -47,024 -11,970 -85,024 4,519 0 -424,714
Less: Vacancies -2,740 -13,945 -8,347 -8,285 -19,674 -4,794 -3,939 -43,909 -1,155 0 -106,788
Less: Concessions 0 0 -100 0 -75 0 0 0 0 0 -175
NET POTENTIAL RENT 274,641 284,808 341,828 250,506 598,022 427,578 377,865 968,821 118,738 0 3,642,807
NET POTENTIAL RENT ADJUSTMENTS
0 -1,502 -3,316 -14,805 -8,317 -3,997 -19,679 -34,494 -2,612 0 -88,722
Pet Rent 0 0 0 850 300 1,656 0 2,040 300 0 5,146
Storage Rent 0 0 0 0 0 0 0 0 0 3,960 3,960
Add: Recoveries 0 0 0 0 279 0 0 0 0 0 279
0 -1,502 -3,316 -13,955 -7,738 -2,341 -19,679 -32,454 -2,312 3,960 -79,336
NET RENTAL INCOME 274,641 283,306 338,512 236,551 590,284 425,237 358,186 936,367 116,426 3,960 3,563,471
OTHER TENANT INCOME
Ancillary Income 491 0 1,083 0 0 0 0 2,400 0 0 3,974
TOTAL OTHER TENANT INCOME 491 0 1,083 0 0 0 0 2,400 0 0 3,974
EFFECTIVE GROSS INCOME 275,132 283,306 339,595 236,551 590,284 425,237 358,186 938,767 116,426 3,960 3,567,445
OTHER INCOME
Interest Income - Unrestricted 296 1,176 6,352 1,809 2,034 3,178 2,922 19,122 586 205,676 243,151
TOTAL OTHER INCOME 296 1,176 6,352 1,809 2,034 3,178 2,922 19,122 586 205,676 243,151
TOTAL OPERATING REVENUE 275,428 284,482 345,947 238,360 592,318 428,415 361,108 957,889 117,012 209,636 3,810,596
OPERATING EXPENSES
DIRECT OPERATING EXPENSES
ADMINISTRATIVE
Labor Expenses
Management Labor 14,748 36,869 36,869 36,869 73,739 36,869 29,496 140,104 7,374 0 412,937
Total Labor Expenses 14,748 36,869 36,869 36,869 73,739 36,869 29,496 140,104 7,374 0 412,937
Legal Expense
0 0 0 0 0 0 0 0 300 0 300
Legal-Tenant Screening 14 380 124 807 689 540 546 2,640 0 0 5,740
Legal-General Expense 61 1,468 360 4,708 4,183 1,071 1,114 6,140 0 4,473 23,578
Total Legal Expense 76 1,848 484 5,514 4,872 1,611 1,660 8,780 300 4,473 29,618
Management Related Expense
Property Management Expense 27,513 28,631 34,623 26,616 45,498 43,323 39,754 80,620 12,165 0 338,744
22,011 22,664 27,168 18,924 48,531 34,019 28,655 75,101 9,314 0 286,387
Total Management Related Expenses 49,524 51,295 61,790 45,540 94,029 77,342 68,409 155,722 21,479 0 625,131
Other Administrative Expenses
Training Services and Platforms 349 629 629 442 1,117 1,463 466 4,615 338 0 10,048
Mileage 20 153 66 119 54 261 122 946 0 54 1,795
Auditing & Tax Services 0 0 0 0 16,162 0 0 0 0 6,517 22,678
Marketing 96 50 50 51 92 36 86 0 0 0 461
Resident Relocation 0 163 0 1,734 1,761 0 633 0 0 0 4,291
Security Services 60 0 0 1,724 2,511 0 546 8,057 0 450 13,347
Miscellaneous Admin Expenses 0 0 0 0 0 36 0 292 24 0 352
Total Other Administrative Expenses 526 995 744 4,070 21,697 1,797 1,852 13,909 362 7,021 52,973
Property Comparison
Period = Jan 2026-Dec 2026
Book = Rolling ; Tree = ysi_is
Page 85 of 116 97
4b|Villages, Ltd - by Property
plumplce remrow vob voc voe vol vom vos vos-6 villa-gf+Total
Budget Budget Budget Budget Budget Budget Budget Budget Budget Budget Budget
Period = Jan 2026-Dec 2026
Book = Rolling ; Tree = ysi_is
Technology Expenses
Managed Services - Internal 1,549 3,873 3,873 3,873 7,746 3,873 3,098 14,717 775 0 43,378
40 0 40 0 1,140 0 0 0 0 0 1,220
Telephone - Landline 872 0 0 0 678 0 0 1,169 0 0 2,719
Internet Services 1,607 5,324 1,235 2,446 9,967 0 3,842 3,179 0 0 27,601
Cellular - Phones | Tablets 0 0 0 0 255 0 0 253 0 490 997
Total Technology Expenses 4,069 9,197 5,148 6,319 19,786 3,873 6,941 19,318 775 490 75,914
Compliance Expenses
Compliance Services - Internal 1,530 2,856 2,754 1,938 4,896 2,652 2,040 8,364 612 2,958 30,600
0 0 0 0 0 0 0 1,142 0 0 1,142
Total Compliance Expenses 1,530 2,856 2,754 1,938 4,896 2,652 2,040 9,506 612 2,958 31,742
TOTAL ADMINISTRATIVE EXPENSES 70,471 103,061 107,790 100,251 219,019 124,144 110,398 347,339 30,902 14,942 1,228,317
GENERAL EXPENSES
Utilities Expense
Water 5,726 5,478 8,768 10,998 19,490 17,166 10,731 34,509 2,936 3,695 119,497
Electricity 8,818 21,299 2,724 2,572 8,331 3,234 1,619 7,700 163 3,269 59,729
Electricity-Vacant Units 18 0 20 288 1,562 217 1,552 1,636 270 0 5,563
Gas 1,951 1,023 9,775 7,203 11,821 17,785 0 17,693 0 2,793 70,045
Gas-Vacant Units 18 0 19 0 0 0 0 0 0 0 37
Trash Removal - Recycling 0 0 0 0 0 1,176 0 1,999 0 0 3,175
Trash Removal - Regular 1,886 4,601 2,821 4,030 4,139 5,352 6,885 7,049 32 3,035 39,831
Trash Removal - Overage 0 0 0 0 0 792 0 420 0 0 1,212
Total Utility Expenses 18,416 32,402 24,128 25,091 45,342 45,722 20,788 71,007 3,401 12,792 299,089
Maintenance Expenses
Maintenance - On Call 155 155 155 155 248 155 155 424 155 310 2,067
Total General Maint Expense 155 155 155 155 248 155 155 424 155 310 2,067
Supplies-Grounds 411 16 773 172 277 678 583 772 78 137 3,896
Supplies-Appliances 16 421 0 298 365 794 822 1,241 313 326 4,597
Supplies-Electrical 151 1,749 468 709 882 1,123 299 2,521 458 438 8,798
Supplies-Pest Control 15 0 95 0 0 48 11 25 0 94 289
Supplies-Janitorial 156 26 295 60 778 371 32 635 259 6,309 8,921
Supplies-General 250 9 633 91 297 264 5 923 0 586 3,059
Supplies-Plumbing 562 589 167 488 1,005 2,077 187 1,808 87 451 7,421
Supplies-Paint 0 46 0 321 267 346 0 333 9 0 1,323
Supplies-HVAC 50 0 106 34 111 53 0 239 195 502 1,287
Supplies-Doors 429 245 317 968 495 1,630 350 1,258 267 372 6,329
Supplies-Windows 0 336 0 269 355 399 97 492 15 293 2,257
Total Supplies | Materials 2,039 3,437 2,854 3,410 4,831 7,783 2,387 10,246 1,680 9,510 48,177
Contract-Work Orders - Internal 10,432 15,841 16,614 10,335 25,307 26,079 17,869 51,193 3,188 5,411 182,268
Contract-Preventative - Internal 1,500 2,500 8,000 3,500 7,000 8,000 8,000 13,150 1,400 2,750 55,800
Contract-Preventative - External 0 2,820 0 0 0 0 0 0 0 0 2,820
Contract-Painting 0 0 0 0 185 0 0 0 0 0 185
Contract-System Services 0 0 500 495 1,365 0 0 1,124 0 880 4,364
Contract-Access Control 120 0 0 0 1,176 0 0 450 0 325 2,071
Contract-Appliance 210 620 0 277 480 916 1,613 788 300 200 5,405
Contract-Roof|Gutter 0 1,900 0 1,570 0 790 0 4,030 2,860 1,630 12,780
Page 86 of 116 98
4b|Villages, Ltd - by Property
plumplce remrow vob voc voe vol vom vos vos-6 villa-gf+Total
Budget Budget Budget Budget Budget Budget Budget Budget Budget Budget Budget
Period = Jan 2026-Dec 2026
Book = Rolling ; Tree = ysi_is
Contract-Pressure Washing 500 1,500 2,000 1,500 1,500 2,000 2,000 5,000 1,500 500 18,000
Contract-Carpet Cleaning 400 0 0 768 1,138 139 0 1,355 0 589 4,390
Contract-Electrical 217 0 640 0 279 1,357 647 1,063 0 1,059 5,260
Contract-Pest Control 0 281 2,138 248 1,445 1,434 2,154 542 0 3,387 11,629
Contract-Flooring 557 0 777 0 420 402 0 356 0 0 2,512
Contract-Grounds 4,284 4,632 5,268 5,232 5,292 10,188 7,848 8,820 5,232 9,903 66,699
Contract-Snow Removal 4,014 5,472 4,710 3,546 5,532 7,902 4,830 6,402 1,905 3,711 48,024
Contract-Tree Service 314 3,394 1,462 1,144 0 1,685 2,056 956 1,264 3,063 15,338
Contract-Janitorial 7,548 6,372 5,280 2,736 6,426 7,740 0 5,580 0 7,343 49,025
Contract-Plumbing 881 918 2,474 2,405 2,049 7,769 3,678 1,796 995 1,652 24,616
Contract-HVAC 0 201 0 0 2,532 283 1,912 335 489 1,638 7,390
Contract-Fire Suppression 1,013 2,546 150 100 1,832 0 0 980 0 2,756 9,377
Contract-Windows 0 0 0 0 333 0 258 0 0 2,550 3,141
Contract-Elevators 4,249 0 0 0 0 0 0 0 0 0 4,249
Contract-Irrigation Repairs 787 884 1,550 252 1,379 5,404 1,130 4,844 700 1,266 18,196
Contract-General 1,154 515 0 811 2,962 4,579 2,562 2,858 0 1,556 16,997
Total Contract Costs 38,180 50,396 51,562 34,919 68,630 86,668 56,557 111,622 19,833 52,168 570,535
Total Maintenance Expenses - Core 40,374 53,988 54,571 38,484 73,710 94,606 59,099 122,292 21,667 61,988 620,779
Unit Turn-Work Order 870 4,350 1,740 4,350 6,090 3,480 4,350 15,660 870 0 41,760
Unit Turn-External Painting 714 3,570 1,428 3,570 4,998 2,856 3,570 12,852 714 0 34,272
Unit Turn-External Janitorial 166 830 332 830 1,162 664 830 2,988 166 0 7,968
Unit Turn-External Trash Out 283 1,415 566 1,415 1,981 1,132 1,415 5,094 283 0 13,584
Unit Turn-External Floor Care 42 210 84 210 294 168 210 756 42 0 2,016
Unit Turn-External Trade 109 545 218 545 763 436 545 1,962 109 0 5,232
Unit Turn-Materials Paint 117 585 234 585 819 468 585 2,106 117 0 5,616
Unit Turn-Materials Misc 114 570 228 570 798 456 570 2,052 114 0 5,472
Total Unit Turn Costs 2,415 12,075 4,830 12,075 16,905 9,660 12,075 43,470 2,415 0 115,920
Total Maintenance Expenses 42,789 66,063 59,401 50,559 90,615 104,266 71,174 165,762 24,082 61,988 736,699
Vehicle-Fuel 0 0 0 0 50 0 0 0 0 52 102
Total Vehicle Expenses 0 0 0 0 50 0 0 0 0 52 102
Insurance & Taxes Expenses
Insurance - Property 7,559 13,607 13,607 9,575 24,190 13,103 10,080 34,728 3,024 10,258 139,730
Insurance - Liability 918 1,652 1,652 1,163 2,937 1,591 1,224 5,137 367 1,245 17,887
Insurance - Umbrella 860 1,548 1,548 1,089 2,751 1,491 1,147 6,680 344 1,165 18,623
934 1,681 1,681 1,183 2,988 1,618 1,245 4,654 374 1,204 17,562
Misc. Taxes & Licenses 0 98 0 0 0 0 0 0 0 0 98
Total Tax & Insurance Expenses 10,271 18,586 18,488 13,010 32,866 17,803 13,695 51,199 4,109 13,873 193,900
Other General Expenses
Membership and Fees 0 0 0 0 0 0 0 353 9,792 0 10,145
Filing Fees 0 0 0 0 52 0 0 0 0 26 77
Office Supplies 106 172 216 105 854 50 105 1,264 0 458 3,329
Copier and Printer Usage | Supplies 128 171 75 119 543 0 0 570 0 703 2,309
Small Office Equipment 50 90 150 51 50 0 145 0 0 180 716
Meetings Expenses 150 0 150 51 92 0 51 0 0 0 495
Miscellaneous General Expense 0 0 0 0 0 0 0 0 0 18,528 18,528
Total Other General Expenses 434 433 590 326 1,591 50 301 2,187 9,792 19,895 35,600
Reserve Allowances
Page 87 of 116 99
4b|Villages, Ltd - by Property
plumplce remrow vob voc voe vol vom vos vos-6 villa-gf+Total
Budget Budget Budget Budget Budget Budget Budget Budget Budget Budget Budget
Period = Jan 2026-Dec 2026
Book = Rolling ; Tree = ysi_is
Reserve Account Funding Allowance 4,635 8,343 8,343 5,871 22,827 8,034 6,180 24,600 1,854 0 90,687
Total Reserve Allowances 4,635 8,343 8,343 5,871 22,827 8,034 6,180 24,600 1,854 0 90,687
TOTAL GENERAL EXPENSES 76,545 125,827 110,950 94,857 193,291 175,875 112,138 314,756 43,238 108,600 1,356,077
TOTAL DIRECT OPERATING EXPENSES 147,017 228,887 218,741 195,108 412,310 300,020 222,536 662,095 74,140 123,540 2,584,394
TOTAL OPERATING EXPENSES 147,017 228,887 218,741 195,108 412,310 300,020 222,536 662,095 74,140 123,540 2,584,394
NET OPERATING INCOME 128,411 55,594 127,207 43,252 180,009 128,396 138,572 295,794 42,872 86,096 1,226,202
NON-OPERATING INCOME | EXPENSE
NON OPERATING INCOME
Interest Income - Soft Debt 0 0 0 0 0 0 0 0 0 482,264 482,264
Interest Income - Hard Debt 0 0 0 0 0 0 0 0 0 17,929 17,929
TOTAL NON OPERATING INCOME 0 0 0 0 0 0 0 0 0 500,193 500,193
NON OPERATING EXPENSES
Interest Expense - Soft Loans 0 0 0 0 158,390 0 0 78,543 0 0 236,933
Interest Expense - Hard Loans 0 0 0 0 27,168 0 0 129,924 0 0 157,093
Interest Expense - Loan Fees 0 0 0 0 538 0 0 3,318 0 0 3,857
0 0 0 0 186,097 0 0 211,785 0 0 397,882
Depreciation - Buildings 258,711 98,617 179,654 42,408 173,082 34,785 60,768 320,865 600 62,763 1,232,252
0 2,310 35,422 10,295 12,899 13,015 8,254 39,009 4,639 6,896 132,738
9,895 0 6,029 0 1,815 0 0 3,523 0 1,841 23,103
Depreciation - Improvements 0 833 11,462 300 1,602 1,604 16,262 0 440 20,958 53,461
268,606 101,760 232,566 53,003 189,398 49,404 85,284 363,398 5,679 92,457 1,441,555
TOTAL NON OPERATING EXPENSES 268,606 101,760 232,566 53,003 375,495 49,404 85,284 575,183 5,679 92,457 1,839,437
GAIN (LOSS) - SALES OF ASSETS
Proceeds - Sale of Capital Assets 0 0 0 0 0 0 0 0 0 2,277,000 2,277,000
Sales - Unit cost 0 0 0 0 0 0 0 0 0 582,042 582,042
Sales - Selling Costs 0 0 0 0 0 0 0 0 0 -136,620 -136,620
NET GAIN (LOSS) - SALE OF ASSETS 0 0 0 0 0 0 0 0 0 1,558,338 1,558,338
PARTNERSHIP INCOME(EXPENSES)
Tax Credit Monitoring 0 0 0 0 1,238 0 0 4,182 0 0 5,420
44,976 36,660 39,192 15,840 59,592 23,208 21,481 100,236 2,172 25,020 368,377
0 0 0 0 0 0 0 0 0 48,000 48,000
13,592 14,639 17,164 24,392 30,271 41,729 35,545 97,493 11,578 0 286,402
-58,568 -51,299 -56,356 -40,232 -91,101 -64,937 -57,026 -201,911 -13,750 -73,020 -708,199
NET NON-OPERATING INCOME(EXP -327,174 -153,058 -288,922 -93,234 -466,596 -114,340 -142,310 -777,094 -19,429 1,893,054 -489,105
NET INCOME (LOSS)-198,763 -97,464 -161,715 -49,982 -286,588 14,055 -3,738 -481,300 23,443 1,979,149 737,097
Page 88 of 116 100
5a|Welington Consolidated
Description 01/25 - 12/25 01/26 - 12/26 Amount Percent
Proforma Variance Variance
OPERATING REVENUES
RENTAL INCOME
NET RENTAL INCOME
POTENTIAL RENTAL INCOME
Gross Potential Rent 778,164 773,064 -5,100 -0.7%
(Loss) Gain to Lease -6,735 -5,904 831 -12.3%
Less: Vacancies -27,471 -30,920 -3,449 12.6%
NET POTENTIAL RENT 743,958 736,240 -7,718 -1.0%
NET POTENTIAL RENT ADJUSTMENTS
Less: Write-offs -225 0 225 -100.0%
Less: Allowance for Doubtful Accounts -16,341 -10,209 6,132 -37.5%
NET POTENTIAL RENT ADJUSTMENTS -16,566 -10,209 6,357 -38.4%
NET RENTAL INCOME 727,392 726,031 -1,361 -0.2%
OTHER TENANT INCOME
Ancillary Income 169 348 179 105.9%
Late Charges 1,550 0 -1,550 -100.0%
Legal Fees - Tenant 357 0 -357 -100.0%
Utility Reimb.-Tenant 1,589 0 -1,589 -100.0%
Tenant Work Orders 23,037 0 -23,037 -100.0%
TOTAL OTHER TENANT INCOME 26,702 348 -26,354 -98.7%
EFFECTIVE GROSS INCOME 754,094 726,379 -27,715 -3.7%
VOUCHER REVENUE
HUD PHA Operating Grants/Subsidy 65,289 0 -65,289 -100.0%
TOTAL VOUCHER REVENUE 65,289 0 -65,289 -100.0%
OTHER INCOME
Miscellaneous Income 65,606 0 -65,606 -100.0%
Interest Income - Unrestricted 260 286 26 10.0%
TOTAL OTHER INCOME 65,866 286 -65,580 -99.6%
TOTAL OPERATING REVENUE 885,249 726,665 -158,584 -17.9%
OPERATING EXPENSES
DIRECT OPERATING EXPENSES
ADMINISTRATIVE
Labor Expenses
Management Labor 45,061 58,991 13,930 30.9%
Total Labor Expenses 45,061 58,991 13,930 30.9%
Legal Expense
Legal-Criminal Background Checks 92 0 -92 -100.0%
Legal-Tenant Screening 353 189 -164 -46.5%
2 Year Annual Comparison - Current
Project Start Date = 1/1/2026
Cutoff Date = 08/2025
Page 89 of 116 101
5a|Welington Consolidated
Description 01/25 - 12/25 01/26 - 12/26 Amount Percent
Proforma Variance Variance
Project Start Date = 1/1/2026
Cutoff Date = 08/2025
Legal-General Expense 1,086 1,241 155 14.3%
Total Legal Expense 1,531 1,430 -101 -6.6%
Management Related Expense
Property Management Expense 62,301 59,744 -2,557 -4.1%
Accounting/Bookkeeping Expense 60,801 58,110 -2,691 -4.4%
Total Management Related Expenses 123,103 117,854 -5,249 -4.3%
Other Administrative Expenses
Staff Training & Conferences 1,000 0 -1,000 -100.0%
Training Services and Platforms 0 978 978
Travel, Lodging & Per Diems 0 0 0
Mileage 455 479 24 5.3%
Auditing & Tax Services 9,034 11,065 2,031 22.5%
Marketing 32 103 71 221.9%
Resident Relocation 1,904 0 -1,904 -100.0%
Public Housing Disposition 65,289 0 -65,289 -100.0%
Security Services 1,454 1,005 -449 -30.9%
Miscellaneous Admin Expenses 50 0 -50 -100.0%
Total Other Administrative Expenses 79,218 13,630 -65,588 -82.8%
Technology Expenses
Managed Services - Internal 5,784 6,197 413 7.1%
Telephone - Landline 348 607 259 74.4%
Internet Services 6,370 6,866 496 7.8%
Cellular - Phones | Tablets 61 168 107 175.4%
Total Technology Expenses 12,563 13,837 1,274 10.1%
Compliance Expenses
Compliance Services - Internal 4,128 4,284 156 3.8%
Compliance Services - Consultants 670 0 -670 -100.0%
Total Compliance Expenses 4,798 4,284 -514 -10.7%
TOTAL ADMINISTRATIVE EXPENSES 266,275 210,026 -56,249 -21.1%
GENERAL EXPENSES
Resident Services
Resident Services - Internal 16,800 0 -16,800 -100.0%
Resident Services - External 168 0 -168 -100.0%
Total Resident Services 16,968 0 -16,968 -100.0%
Utilities Expense
Water 58,361 48,823 -9,538 -16.3%
Electricity 12,688 13,042 354 2.8%
Electricity-Vacant Units 102 68 -34 -33.3%
Gas 10,028 11,692 1,664 16.6%
Trash Removal - Recycling -15 0 15 -100.0%
Trash Removal - Regular 15,275 20,500 5,225 34.2%
Page 90 of 116 102
5a|Welington Consolidated
Description 01/25 - 12/25 01/26 - 12/26 Amount Percent
Proforma Variance Variance
Project Start Date = 1/1/2026
Cutoff Date = 08/2025
Total Utility Expenses 96,440 94,126 -2,314 -2.4%
Maintenance Expenses
Maintenance - On Call 67 208 141 210.4%
Total General Maint Expense 67 208 141 210.4%
Supplies-Grounds 461 672 211 45.8%
Supplies-Appliances 266 466 200 75.2%
Supplies-Electrical 5,489 1,829 -3,660 -66.7%
Supplies-Pest Control 14 12 -2 -14.3%
Supplies-Janitorial 154 62 -92 -59.7%
Supplies-General 669 395 -274 -41.0%
Supplies-Plumbing 1,344 765 -579 -43.1%
Supplies-Paint 44 238 194 440.9%
Supplies-HVAC 289 177 -112 -38.8%
Supplies-Doors 1,154 540 -614 -53.2%
Supplies-Windows 872 370 -502 -57.6%
Total Supplies | Materials 10,755 5,526 -5,229 -48.6%
Contract-Work Orders - Internal 39,174 46,653 7,479 19.1%
Contract-Preventative - Internal 15,600 12,750 -2,850 -18.3%
Contract-System Services 0 0 0
Contract-Appliance 1,372 2,004 632 46.1%
Contract-Roof|Gutter 0 3,360 3,360
Contract-Pressure Washing 0 2,000 2,000
Contract-Carpet Cleaning 431 0 -431 -100.0%
Contract-Electrical 1,176 181 -995 -84.6%
Contract-Pest Control 854 58 -796 -93.2%
Contract-Grounds 50,815 37,800 -13,015 -25.6%
Contract-Snow Removal 0 9,468 9,468
Contract-Tree Service 0 2,274 2,274
Contract-Janitorial 987 191 -796 -80.6%
Contract-Plumbing 10,091 15,189 5,098 50.5%
Contract-HVAC 7,770 6,234 -1,536 -19.8%
Contract-Fire Suppression 0 175 175
Contract-Windows 600 872 272 45.3%
Contract-Irrigation Repairs 0 4,380 4,380
Contract-General 8,360 2,546 -5,814 -69.5%
Total Contract Costs 137,231 146,135 8,904 6.5%
Total Maintenance Expenses - Core 148,053 151,869 3,816 2.6%
Unit Turn-Work Order 8,202 2,610 -5,592 -68.2%
Page 91 of 116 103
5a|Welington Consolidated
Description 01/25 - 12/25 01/26 - 12/26 Amount Percent
Proforma Variance Variance
Project Start Date = 1/1/2026
Cutoff Date = 08/2025
Unit Turn-External Painting 29,137 2,142 -26,995 -92.6%
Unit Turn-External Janitorial 0 498 498
Unit Turn-External Trash Out 0 849 849
Unit Turn-External Floor Care 0 126 126
Unit Turn-External Trade 0 327 327
Unit Turn-Materials Paint 5,419 351 -5,068 -93.5%
Unit Turn-Materials Misc 0 342 342
Total Unit Turn Costs 42,759 7,245 -35,514 -83.1%
Total Maintenance Expenses 190,811 159,114 -31,697 -16.6%
Insurance & Taxes Expenses
Insurance - Property 20,474 23,346 2,872 14.0%
Insurance - Liability 4,115 4,245 130 3.2%
Insurance - D&O | E&O 534 450 -84 -15.7%
Insurance - Specialty | Other 20,644 21,143 499 2.4%
Total Tax & Insurance Expenses 45,767 49,184 3,417 7.5%
Other General Expenses
Membership and Fees 299 160 -139 -46.5%
Filing Fees 10 0 -10 -100.0%
Office Supplies 139 103 -36 -25.9%
Copier and Printer Usage | Supplies 0 155 155
Postage Usage | Supplies 0 0 0
Small Office Equipment 60 193 133 221.7%
Meetings Expenses 0 150 150
Miscellaneous General Expense 168 103 -65 -38.7%
Total Other General Expenses 675 863 188 27.9%
Reserve Allowances
Reserve Account Funding Allowance 8,400 12,978 4,578 54.5%
Total Reserve Allowances 8,400 12,978 4,578 54.5%
TOTAL GENERAL EXPENSES 359,061 316,264 -42,797 -11.9%
TOTAL DIRECT OPERATING EXPENSES 625,336 526,290 -99,046 -15.8%
TOTAL OPERATING EXPENSES 625,336 526,290 -99,046 -15.8%
NET OPERATING INCOME 259,913 200,375 -59,538 -22.9%
NON-OPERATING INCOME | EXPENSE
NON OPERATING EXPENSES
Other Financing Costs 0 500 500
0 500 500
Page 92 of 116 104
5a|Welington Consolidated
Description 01/25 - 12/25 01/26 - 12/26 Amount Percent
Proforma Variance Variance
Project Start Date = 1/1/2026
Cutoff Date = 08/2025
Depreciation - Buildings 23,838 22,782 -1,056 -4.4%
Depreciation - Furn,Fix,Equip - Units 11,005 13,354 2,349 21.3%
Depreciation - Furn,Fix,Equip - Common 10,760 8,193 -2,567 -23.9%
45,603 44,328 -1,275
TOTAL NON OPERATING EXPENSES 45,603 44,828 -775 -1.7%
PARTNERSHIP INCOME(EXPENSES)
Board Related Expenses and Travel 0 6,000
Board Administration Expense - INTERNAL 25,000 25,000 0 0.0%
TOTAL PARTNERSHIP INCOME(EXPENSES)-25,000 -31,000 -6,000 24.0%
NET NON-OPERATING INCOME(EXPENSE)-70,603 -75,828 -5,225 7.4%
NET INCOME (LOSS)189,311 124,547 -64,764 -34.2%
Page 93 of 116 105
6a|Replacement Reserves
Property Name
UNIT
COUNT
Forecasted
Balance
Planned
Deposits
Withdrawal
Requests
Forecasted
Balance
PUPA -
Budget
-$ 82,958$ (82,958)$ 1,121$
-$ 51,014$ (51,014)$ 555$
-$ 82,429$ (82,429)$ 687$
541,048$ 113,004$ 8,861$ 645,191$
49,160$ 20,259$ 46,085$ 23,334$ 768$
52,909$ 25,897$ 10,830$ 67,976$ 137$
77,760$ 22,285$ 100,004$ 41$ 1,667$
390,923$ 51,069$ 34,931$ 407,062$ 368$
245,582$ 37,577$ 247,379$ 35,780$ 3,436$
16,006$ 31,680$ 38,549$ 9,136$ 402$
26,498$ 30,999$ -$ 57,497$ -$
-$ 2,875$ (2,875)$
156,444$ 8,343$ 7,300$ 157,487$ 270$
34,843$ 5,871$ 32,083$ 8,631$ 1,689$
-$ -$ -$ -$
194,197$ 22,827$ 72,804$ 144,220$ 1,517$
52,453$ 8,034$ 64,900$ (4,413)$ 2,496$
64,274$ 6,180$ 158,427$ (87,973)$ 7,544$
-$ -$ -$ -$
-$ -$ -$ -$
2,250$ 4,635$ -$ 6,885$ -$
3,110$ 8,343$ 30,650$ (19,197)$ 1,095$
203,969$ 24,600$ 131,093$ 97,476$ 1,599$
14,261$ 12,978$ 31,598$ (4,359)$ 752$
-$ -$ -$ -$
-$ -$ -$ -$
-$ -$ 71,000$ (71,000)$
-$ -$ -$ -$
-$ -$ 71,000$ (71,000)$
Total 1142 2,125,689$ 434,581$ 1,305,771$ 1,254,499$
FY 2025 BUDGET YEAR
Page 94 of 116 106
6b|LIHTC CapEX by Property
BASE COST PJ FEES - MTC CM Fee TOTAL COST
Cunn on Shields - Cunningham 78,390$ 4,568$ -$ 82,958$
Building Shell - Siding 3,000$ 450$ -$ 3,450$
Common Area - Security Equipment 25,000$ 4,118$ -$ 29,118$
Unit - Appliances 50,390$ -$ -$ 50,390$
Oak140 LLLP LLLP 10,500$ 330$ -$ 10,830$
Common Area - Furniture & Fixtures & Equipment 2,500$ -$ -$ 2,500$
Unit - Appliances 6,000$ -$ -$ 6,000$
Equipment - Lawn & Landscape 2,000$ 330$ -$ 2,330$
Redtail Ponds PSH 87,180$ 12,825$ -$ 100,004$
Building Shell - Balconies 25,000$ 3,750$ -$ 28,750$
Common Area - Security Equipment 31,100$ 6,600$ -$ 37,700$
Common Area - Furniture & Fixtures & Equipment 7,500$ 225$ -$ 7,725$
Unit - Appliances 3,400$ -$ -$ 3,400$
Land Improvements - Parking Lots 4,680$ 772$ -$ 5,452$
Land Improvements - Playground 3,500$ 578$ -$ 4,078$
Office Equipment 6,000$ 900$ -$ 6,900$
Building Shell - Windows 6,000$ -$ -$ 6,000$
Rich on Shields - Richmond 82,204$ 225$ -$ 82,429$
Unit - Appliances 80,704$ -$ -$ 80,704$
Equipment - Lawn & Landscape 1,500$ 225$ -$ 1,725$
Vop on Plum 29,500$ 2,255$ 3,176$ 34,931$
Common Area - Security Equipment 15,000$ 1,650$ 1,665$ 18,315$
Unit - Appliances 9,000$ -$ 900$ 9,900$
Land Improvements - Parking Lots 5,500$ 605$ 611$ 6,716$
Vor on Redwood 189,024$ 26,089$ 32,267$ 247,379$
Building Shell - Siding 97,424$ 14,614$ 16,806$ 128,843$
Common Area - Security Equipment 20,000$ 3,000$ 3,450$ 26,450$
Land Improvements - Trees, Shrubbery & Plants 40,000$ 6,000$ 6,900$ 52,900$
Unit - Appliances 16,600$ -$ 2,490$ 19,090$
Land Improvements - Other 15,000$ 2,475$ 2,621$ 20,096$
Vosh on Shields 6,700$ 1,005$ 1,156$ 8,861$
Building Shell - Siding 4,000$ 600$ 690$ 5,290$
Equipment - Other 2,700$ 405$ 466$ 3,571$
Voh on Horsetooth 23,771$ 9,750$ 5,028$ 38,549$
Building Shell - Structure 7,000$ 9,750$ 2,513$ 19,263$
Unit - Appliances 16,771$ -$ 2,516$ 19,287$
Masonpl Place LLLP 36,250$ 3,948$ 5,887$ 46,085$
Common Area - Security Equipment 1,500$ 198$ 255$ 1,953$
Common Area - Other 17,000$ 2,550$ 2,933$ 22,483$
Unit - Appliances 950$ -$ -$ 950$
Unit - HVAC 1,500$ -$ 225$ 1,725$
Office Equipment 9,000$ 1,200$ 1,530$ 11,730$
Building Shell - Windows 6,300$ -$ 945$ 7,245$
IT Cost Center 71,000$ -$ -$ 71,000$
Computer Hardware - Other 23,000$ -$ -$ 23,000$
Computers & Peripherals 48,000$ -$ -$ 48,000$
Wind on Shields - Windmill 50,789$ 225$ -$ 51,014$
Unit - Appliances 49,289$ -$ -$ 49,289$
Equipment - Lawn & Landscape 1,500$ 225$ -$ 1,725$
Grand Total 665,308$ 61,219$ 47,513$ 774,041$
Page 95 of 116 107
6c|Villages, Ltd CapEX by Prop.
BASE COST PJ FEES - MTC CM Fee TOTAL COST
Voe on Elizabeth 69,729$ 3,075$ -$ 72,804$
Building Shell - Doors 1,500$ 225$ -$ 1,725$
Building Shell - Siding 8,000$ 600$ -$ 8,600$
Common Area - Security Equipment 15,000$ 2,250$ -$ 17,250$
Unit - Appliances 17,200$ -$ -$ 17,200$
Unit - Flooring - Vinyl 28,029$ -$ -$ 28,029$
Vol on Leisure 55,900$ 9,000$ -$ 64,900$
Building Shell - Siding 1,500$ 2,250$ -$ 3,750$
Unit - Appliances 9,400$ -$ -$ 9,400$
Land Improvements - Parking Lots 45,000$ 6,750$ -$ 51,750$
Vos on Stanford 116,528$ 14,565$ -$ 131,093$
Building Shell - Roofing 65,000$ 10,125$ -$ 75,125$
Common Area - Security Equipment 16,000$ 2,640$ -$ 18,640$
Unit - Appliances 23,528$ -$ -$ 23,528$
Building Shell - Ramps & Railings 10,000$ 1,500$ -$ 11,500$
Land Improvements - Sidewalks / Pathways 2,000$ 300$ -$ 2,300$
Vob on Bryan 7,300$ -$ -$ 7,300$
Unit - Appliances 7,300$ -$ -$ 7,300$
Voc on Cowan 30,394$ 1,689$ -$ 32,083$
Common Area - Security Equipment 3,000$ 474$ -$ 3,474$
Unit - Appliances 9,100$ -$ -$ 9,100$
Equipment - Lawn & Landscape -$ -$ -$ -$
Building Shell - Ramps & Railings 7,500$ 1,215$ -$ 8,715$
Unit - Flooring - Vinyl 10,794$ -$ -$ 10,794$
Vom on Matuka 138,930$ 19,497$ -$ 158,427$
Building Shell - Siding 4,530$ 747$ -$ 5,277$
Building Shell - Other 125,000$ 18,750$ -$ 143,750$
Unit - Appliances 9,400$ -$ -$ 9,400$
Remrow Row Remington 26,900$ 3,750$ -$ 30,650$
Unit - Appliances 1,900$ -$ -$ 1,900$
Land Improvements - Other 25,000$ 3,750$ -$ 28,750$
Taft920 Hill Villages 2,500$ 375$ -$ 2,875$
Building Shell - Siding 2,500$ 375$ -$ 2,875$
Grand Total 448,181$ 51,952$ -$ 500,133$
Page 96 of 116 108
6d|Wellington CapEX
BASE COST PJ FEES - MTC CM Fee TOTAL COST
Wellch Community Housing 27,600$ 1,125$ 2,873$ 31,598$
Building Shell - Doors 2,500$ 375$ 288$ 3,163$
Land Improvements - Trees, Shrubbery & Plants 5,000$ 750$ 575$ 6,325$
Unit - Appliances 20,100$ -$ 2,010$ 22,110$
Grand Total 27,600$ 1,125$ 2,873$ 31,598$
Page 97 of 116 109
7a|Agency - 3YR
Description Total Total/Unit EOY<br>2026 EOY<br>2027 EOY<br>2028
Currency = , Total Units = 4
OPERATING REVENUES
RENTAL INCOME
NET RENTAL INCOME
POTENTIAL RENTAL INCOME
CAM Estimate 103,224 25,806 103,224 0 0
NET POTENTIAL RENT 103,224 25,806 103,224 0 0
NET RENTAL INCOME 103,224 25,806 103,224 0 0
EFFECTIVE GROSS INCOME 103,224 25,806 103,224 0 0
GRANT REVENUE
Grants - Family Self Sufficiency 820,903 205,226 265,062 273,544 282,297
Grants - HUD CoC 1,618,393 404,598 522,564 539,286 556,543
Grants - Non Gov't 72,669 18,167 23,464 24,215 24,990
Grants - County 309,702 77,426 100,000 103,200 106,502
TOTAL GRANT REVENUE 2,821,668 705,417 911,090 940,245 970,333
AGENCY REVENUE
Property Management Fee Revenue 4,471,883 1,117,971 1,443,929 1,490,135 1,537,819
Accounting Fee Revenue 3,053,254 763,313 985,867 1,017,415 1,049,972
Asset Management Revenue 1,119,686 279,921 361,536 373,105 385,045
Site Labor Cost Recapture 5,937,645 1,484,411 1,917,210 1,978,561 2,041,875
Technology Management Cost Recapture 623,741 155,935 201,400 207,845 214,496
Insurance Administration Fee Revenue 58,980 14,745 19,044 19,653 20,282
Administrative OH Cost Recapture 283,631 70,908 283,631 0 0
Board Administration Fee Revenue 73,000 18,250 73,000 0 0
Voucher Management Fees Earned 5,776,867 1,444,217 1,865,296 1,924,986 1,986,585
Voucher DOH Management Fees Earned 486,237 121,559 157,001 162,025 167,210
Resident Services Fee Income 3,572,427 893,107 1,153,503 1,190,415 1,228,508
Compliance Services Revenue 371,494 92,874 119,952 123,790 127,752
Developer Fee Earned or Collected 1,215,375 303,844 1,215,375 0 0
Acquisition and Disposition Fees 154,851 38,713 50,000 51,600 53,251
Work Order Revenue 2,820,630 705,158 910,755 939,899 969,976
Maintenance - Preventative Contracts 809,252 202,313 261,300 269,662 278,291
Maint Project Mgmt Revenue 353,398 88,350 114,109 117,760 121,529
Unit Turn Revenue 522,716 130,679 168,780 174,181 179,755
Capital Asset Management Revenue 156,047 39,012 50,386 51,998 53,662
RS Clinical Billing Revenue 5,575 1,394 1,800 1,858 1,917
TOTAL AGENCY REVENUE 31,866,687 7,966,672 11,353,874 10,094,888 10,417,925
OTHER INCOME
Bond Issuance Fees 423,934 105,984 423,934 0 0
Bond Monitoring Fees 7,200 1,800 7,200 0 0
Interest Income - Unrestricted 331,265 82,816 163,503 82,560 85,202
HC Mission-Driven Support -154,851 -38,713 -50,000 -51,600 -53,251
Advanced Budget
Period = 01/2026 - 12/2028
Page 98 of 116 110
7a|Agency - 3YR
Description Total Total/Unit EOY<br>2026 EOY<br>2027 EOY<br>2028
Period = 01/2026 - 12/2028
TOTAL OTHER INCOME 607,548 151,887 544,637 30,960 31,951
TOTAL OPERATING REVENUE 35,399,127 8,849,782 12,912,825 11,066,093 11,420,208
OPERATING EXPENSES
INTRA-CO ALLOCATIONS
Intra-Co Alloc: FIN 0 0 0 0 0
Intra-Co Alloc: TM -33,152 -8,288 0 -16,315 -16,837
Intra-Co Alloc: IT -44,243 -11,061 0 -21,773 -22,470
Intra-Co Alloc: IOH 585,328 146,332 0 288,055 297,273
Intra-Co Alloc: SGA 0 0 0 0 0
Catalyst Fund Allocations -773,802 -193,451 0 -380,808 -392,994
TOTAL INTRA-Co ALLOCATIONS -265,870 -66,467 0 -130,841 -135,028
DIRECT OPERATING EXPENSES
ADMINISTRATIVE
Labor Expenses
Salaries & Wages 25,729,574 6,432,394 8,432,578 8,512,301 8,784,695
Fringe Pool Allocation 3,851,561 962,890 5 1,895,451 1,956,105
ER Benefit Contribution 598,260 149,565 598,260 0 0
ER Life, Disability, Supplemental Insurance 84,300 21,075 84,300 0 0
EAP Program 8,436 2,109 8,436 0 0
MERP Program Reimbursements 45,000 11,250 45,000 0 0
Workers Comp 80,088 20,022 80,088 0 0
ER Retirement Contributions 843,060 210,765 843,060 0 0
ER Payroll Taxes 142,680 35,670 142,680 0 0
ER FAMLI 75,876 18,969 75,876 0 0
Total Benefits Expenses 5,729,261 1,432,315 1,877,705 1,895,451 1,956,105
Total Labor Expenses 31,458,836 7,864,709 10,310,283 10,407,752 10,740,801
Legal Expense
Legal-Criminal Background Checks 5,775 1,444 1,865 1,924 1,986
Legal-General Expense 62,318 15,579 21,750 19,964 20,603
Total Legal Expense 68,093 17,023 23,615 21,889 22,589
Other Administrative Expenses
Staff Training & Conferences 453,140 113,285 148,191 150,073 154,876
Companywide Training 263,247 65,812 85,000 87,720 90,527
Education Assistance 82,071 20,518 26,500 27,348 28,223
Travel, Lodging & Per Diems 272,894 68,223 89,740 90,135 93,019
Mileage 32,107 8,027 10,367 10,699 11,041
Meals - Business Partners 14,727 3,682 4,755 4,907 5,064
Rating Agency Expenses 35,616 8,904 11,500 11,868 12,248
Auditing & Tax Services 24,312 6,078 7,850 8,101 8,360
Marketing 17,719 4,430 9,412 4,088 4,219
Parking Fees 6,020 1,505 1,944 2,006 2,070
Consultants 362,074 90,519 116,910 120,651 124,512
Page 99 of 116 111
7a|Agency - 3YR
Description Total Total/Unit EOY<br>2026 EOY<br>2027 EOY<br>2028
Period = 01/2026 - 12/2028
RS Clinical Billing Expenses 1,239 310 400 413 426
Security Services 619 155 200 206 213
Temporary Administrative Labor 47,910 11,978 15,470 15,965 16,476
Employee Wellness 50,883 12,721 16,430 16,955 17,498
Recruiting 68,413 17,103 22,090 22,797 23,526
Miscellaneous Admin Expenses 69,221 17,305 22,509 22,988 23,724
Total Other Administrative Expenses 1,802,211 450,553 589,267 596,922 616,023
Technology Expenses
Managed Services - City 198,210 49,552 64,000 66,048 68,162
Managed Services - Consultants 179,627 44,907 58,000 59,856 61,771
Managed Services - Other 668,957 167,239 216,000 222,912 230,045
Software License Fees 1,005,182 251,295 327,367 333,570 344,245
Software Implementations 9,910 2,478 3,200 3,302 3,408
Computers and Peripherals 71,232 17,808 23,000 23,736 24,496
Telephone - Landline 57,605 14,401 18,600 19,195 19,809
Telephone - Virtual & Conferencing 46,455 11,614 15,000 15,480 15,975
Cellular - Phones | Tablets 122,373 30,593 40,326 40,378 41,670
Web Hosting and Other 7,123 1,781 2,300 2,374 2,450
Total Technology Expenses 2,366,674 591,669 767,793 786,851 812,031
TOTAL ADMINISTRATIVE EXPENSES 35,695,814 8,923,954 11,690,957 11,813,414 12,191,443
GENERAL EXPENSES
Resident Services
Resident Programming 34,584 8,646 11,167 11,524 11,893
RS Client Assistance 17,765 4,441 5,736 5,920 6,109
Resident Services - External 829,844 207,461 267,949 276,523 285,372
Total Resident Services 882,192 220,548 284,852 293,967 303,374
Utilities Expense
Water 34,738 8,685 12,684 10,854 11,201
Electricity 49,599 12,400 16,015 16,528 17,056
Gas 22,593 5,648 7,295 7,528 7,769
Trash Removal - Recycling 3,791 948 1,224 1,263 1,304
Trash Removal - Regular 23,969 5,992 7,739 7,987 8,243
Total Utility Expenses 134,690 33,672 44,957 44,160 45,573
Maintenance Expenses
Maintenance - On Call 2,254 563 996 619 639
Maintenance - Uniforms 16,105 4,026 5,200 5,366 5,538
Tools and Equipment 3,997 999 1,291 1,332 1,374
Equipment Rentals 15,786 3,946 5,097 5,260 5,428
Total General Maint Expense 38,141 9,535 12,583 12,578 12,980
Supplies-Grounds 2,523 631 845 826 852
Supplies-Electrical 201 50 72 64 66
Page 100 of 116 112
7a|Agency - 3YR
Description Total Total/Unit EOY<br>2026 EOY<br>2027 EOY<br>2028
Period = 01/2026 - 12/2028
Supplies-Pest Control 148 37 48 49 51
Supplies-Janitorial 4,800 1,200 1,550 1,600 1,651
Supplies-General 15,835 3,959 5,137 5,264 5,433
Supplies-HVAC 616 154 199 205 212
Total Supplies | Materials 24,123 6,031 7,851 8,008 8,264
Contract-Work Orders - Internal 38,894 9,723 13,777 12,360 12,756
Contract-Preventative - Internal 4,646 1,161 1,500 1,548 1,598
Contract-System Services 16,224 4,056 10,655 2,740 2,828
Contract-Access Control 1,103 276 356 367 379
Contract-Roof|Gutter 15,423 3,856 4,980 5,139 5,304
Contract-Pressure Washing 9,291 2,323 3,000 3,096 3,195
Contract-Carpet Cleaning 3,097 774 1,000 1,032 1,065
Contract-Pest Control 7,793 1,948 2,760 2,477 2,556
Contract-Grounds 28,508 7,127 12,000 8,124 8,384
Contract-Snow Removal 14,687 3,672 6,207 4,173 4,307
Contract-Tree Service 5,482 1,370 1,770 1,827 1,885
Contract-Janitorial 73,325 18,331 23,676 24,434 25,216
Contract-Plumbing 3,470 867 1,865 790 815
Contract-HVAC 5,028 1,257 1,623 1,675 1,729
Contract-Alarms 2,991 748 966 997 1,029
Contract-Irrigation Repairs 3,435 859 1,109 1,144 1,181
Contract-General 681 170 220 227 234
Total Contract Costs 234,076 58,519 87,465 72,151 74,460
Total Maintenance Expenses - Core 296,340 74,085 107,899 92,737 95,704
Total Maintenance Expenses 296,340 74,085 107,899 92,737 95,704
Vehicle-Fuel 52,459 13,115 16,974 17,463 18,022
Vehicle-Repairs 27,861 6,965 8,996 9,284 9,581
Vehicle-Fixed Fee Maintenance 30 8 10 10 10
Vehicle-Lease -10,657 -2,664 -3,441 -3,551 -3,665
Total Vehicle Expenses 69,694 17,424 22,539 23,207 23,949
Insurance & Taxes Expenses
Insurance - Property 137,916 34,479 95,504 20,872 21,540
Insurance - Liability 19,224 4,806 10,018 4,530 4,675
Insurance - Umbrella 7,671 1,918 7,000 330 341
Insurance - D&O | E&O 93,809 23,452 30,290 31,259 32,260
Insurance - Auto 77,897 19,474 25,152 25,957 26,788
Insurance - Specialty | Other 228,242 57,061 69,460 78,141 80,641
Misc. Taxes & Licenses 930 233 300 310 320
Total Tax & Insurance Expenses 565,689 141,422 237,724 161,400 166,565
Other General Expenses
Membership and Fees 106,540 26,635 33,137 35,510 37,893
Bank Fees 539 135 539 0 0
Page 101 of 116 113
7a|Agency - 3YR
Description Total Total/Unit EOY<br>2026 EOY<br>2027 EOY<br>2028
Period = 01/2026 - 12/2028
Filing Fees 26 6 26 0 0
Office Supplies 43,341 10,835 14,072 14,341 14,928
Copier and Printer Usage | Supplies 48,540 12,135 15,673 16,175 16,692
Postage Usage | Supplies 58,574 14,644 18,913 19,518 20,143
Publications 6,445 1,611 2,282 1,910 2,253
Small Office Equipment 17,072 4,268 4,337 5,676 7,058
Meetings Expenses 132,423 33,106 42,406 44,123 45,895
Miscellaneous General Expense 14,207 3,552 4,587 4,734 4,886
Total Other General Expenses 427,708 106,927 135,973 141,987 149,747
TOTAL GENERAL EXPENSES 2,376,312 594,078 833,943 757,457 784,912
TOTAL DIRECT OPERATING EXPENSES 38,072,126 9,518,032 12,524,900 12,570,871 12,976,355
TOTAL OPERATING EXPENSES 37,806,257 9,451,564 12,524,900 12,440,029 12,841,327
NET OPERATING INCOME -2,407,130 -601,783 387,925 -1,373,936 -1,421,119
NON-OPERATING INCOME | EXPENSE
NON OPERATING INCOME
Interest Income - Soft Debt 1,466,859 366,715 1,466,859 0 0
Interest Income - Hard Debt 201,315 50,329 201,315 0 0
TOTAL NON OPERATING INCOME 1,668,174 417,043 1,668,174 0 0
NON OPERATING EXPENSES
Interest Expense - Soft Loans 684 171 684 0 0
Interest Expense - Hard Loans 47,291 11,823 22,146 12,375 12,771
Interest Expense - Other 36,900 9,225 11,915 12,296 12,689
Interest Expense - Bond 1 169,642 42,411 169,642 0 0
Other Financing Costs 1,549 387 500 516 533
256,065 64,016 204,886 25,187 25,993
Depreciation - Buildings 70,811 17,703 55,817 7,379 7,615
Depreciation - Furn,Fix,Equip - Common 35,029 8,757 11,310 11,672 12,046
Depreciation - Improvements 126,339 31,585 40,794 42,099 43,446
Amortization - Leased Assets 77,627 19,407 25,065 25,867 26,695
309,806 77,451 132,987 87,017 89,802
Operating Transfers 100,000 25,000 100,000 0 0
TOTAL NON OPERATING EXPENSES 665,871 166,468 437,873 112,204 115,795
PARTNERSHIP INCOME(EXPENSES)
Income (Loss) - Partnerships 55,500 13,875 55,500 0 0
TOTAL PARTNERSHIP INCOME(EXPENSES)55,500 13,875 55,500 0 0
NET NON-OPERATING INCOME(EXPENSE)1,057,802 264,451 1,285,801 -112,204 -115,795
NET INCOME (LOSS)-1,349,328 -337,332 1,673,726 -1,486,140 -1,536,913
Page 102 of 116 114
7b|Villages, Ltd - 3YR
Description Total Total/Unit EOY<br>2026 EOY<br>2027 EOY<br>2028
Currency = , Total Units = 301
OPERATING REVENUES
RENTAL INCOME
NET RENTAL INCOME
POTENTIAL RENTAL INCOME
Gross Potential Rent 13,160,060 43,721 4,174,484 4,383,208 4,602,368
(Loss) Gain to Lease -1,338,910 -4,448 -424,714 -445,949 -468,247
Less: Vacancies -336,650 -1,118 -106,788 -112,128 -117,734
Less: Concessions -552 -2 -175 -184 -193
NET POTENTIAL RENT 11,483,948 38,153 3,642,807 3,824,947 4,016,194
NET POTENTIAL RENT ADJUSTMENTS
Less: Allowance for Doubtful Accounts -279,696 -929 -88,722 -93,158 -97,816
Pet Rent 16,224 54 5,146 5,404 5,674
Storage Rent 3,960 13 3,960 0 0
Add: Recoveries 881 3 279 293 308
NET POTENTIAL RENT ADJUSTMENTS -258,631 -859 -79,336 -87,461 -91,834
NET RENTAL INCOME 11,225,317 37,293 3,563,471 3,737,486 3,924,360
OTHER TENANT INCOME
Ancillary Income 12,528 42 3,974 4,173 4,381
TOTAL OTHER TENANT INCOME 12,528 42 3,974 4,173 4,381
EFFECTIVE GROSS INCOME 11,237,845 37,335 3,567,445 3,741,659 3,928,742
OTHER INCOME
Interest Income - Unrestricted 334,476 1,111 243,151 44,877 46,448
TOTAL OTHER INCOME 334,476 1,111 243,151 44,877 46,448
TOTAL OPERATING REVENUE 11,572,321 38,446 3,810,596 3,786,536 3,975,189
OPERATING EXPENSES
DIRECT OPERATING EXPENSES
ADMINISTRATIVE
Labor Expenses
Management Labor 1,301,785 4,325 412,937 433,584 455,263
Total Labor Expenses 1,301,785 4,325 412,937 433,584 455,263
Legal Expense
Legal-Criminal Background Checks 929 3 300 310 320
Legal-Tenant Screening 17,776 59 5,740 5,923 6,113
Legal-General Expense 73,023 243 23,578 24,333 25,112
Total Legal Expense 91,728 305 29,618 30,566 31,544
Management Related Expense
Property Management Expense 1,049,098 3,485 338,744 349,584 360,770
Accounting/Bookkeeping Expense 886,948 2,947 286,387 295,552 305,009
Total Management Related Expenses 1,936,046 6,432 625,131 645,135 665,780
Other Administrative Expenses
Advanced Budget
Period = 01/2026 - 12/2028
Page 103 of 116 115
7b|Villages, Ltd - 3YR
Description Total Total/Unit EOY<br>2026 EOY<br>2027 EOY<br>2028
Period = 01/2026 - 12/2028
Training Services and Platforms 31,118 103 10,048 10,369 10,701
Mileage 5,447 18 1,795 1,797 1,855
Auditing & Tax Services 56,570 188 22,678 16,679 17,213
Marketing 1,429 5 461 476 491
Resident Relocation 13,291 44 4,291 4,429 4,570
Security Services 41,337 137 13,347 13,775 14,215
Miscellaneous Admin Expenses 1,091 4 352 364 375
Total Other Administrative Expenses 150,282 499 52,973 47,888 49,420
Technology Expenses
Managed Services - Internal 134,342 446 43,378 44,766 46,198
Copiers | Printers - Maintenance Agreements 3,779 13 1,220 1,259 1,299
Telephone - Landline 8,420 28 2,719 2,806 2,895
Internet Services 85,481 284 27,601 28,484 29,396
Cellular - Phones | Tablets 2,062 7 997 524 541
Total Technology Expenses 234,083 778 75,914 77,839 80,330
Compliance Expenses
Compliance Services - Internal 94,769 315 30,600 31,579 32,590
Compliance Services - Consultants 3,538 12 1,142 1,179 1,217
Total Compliance Expenses 98,307 327 31,742 32,758 33,806
TOTAL ADMINISTRATIVE EXPENSES 3,812,230 12,665 1,228,317 1,267,770 1,316,143
GENERAL EXPENSES
Utilities Expense
Water 373,190 1,240 119,497 123,752 129,940
Electricity 185,838 617 59,729 61,517 64,593
Electricity-Vacant Units 17,650 59 5,563 5,896 6,191
Gas 218,137 725 70,045 72,240 75,853
Gas-Vacant Units 119 0 37 40 42
Trash Removal - Recycling 10,075 33 3,175 3,366 3,534
Trash Removal - Regular 123,844 411 39,831 40,982 43,031
Trash Removal - Overage 3,846 13 1,212 1,285 1,349
Total Utility Expenses 932,700 3,099 299,089 309,078 324,533
Maintenance Expenses
Maintenance - On Call 6,455 21 2,067 2,151 2,237
Total General Maint Expense 6,455 21 2,067 2,151 2,237
Supplies-Grounds 12,067 40 3,896 4,021 4,150
Supplies-Appliances 14,237 47 4,597 4,744 4,896
Supplies-Electrical 27,235 90 8,798 9,073 9,364
Supplies-Pest Control 895 3 289 298 308
Supplies-Janitorial 26,695 89 8,921 8,747 9,027
Supplies-General 8,968 30 3,059 2,908 3,001
Supplies-Plumbing 22,984 76 7,421 7,659 7,904
Page 104 of 116 116
7b|Villages, Ltd - 3YR
Description Total Total/Unit EOY<br>2026 EOY<br>2027 EOY<br>2028
Period = 01/2026 - 12/2028
Supplies-Paint 4,097 14 1,323 1,365 1,409
Supplies-HVAC 3,987 13 1,287 1,329 1,371
Supplies-Doors 19,601 65 6,329 6,532 6,741
Supplies-Windows 6,989 23 2,257 2,329 2,403
Total Supplies | Materials 147,756 491 48,177 49,006 50,574
Contract-Work Orders - Internal 568,764 1,890 182,268 189,458 197,037
Contract-Preventative - Internal 172,595 573 55,800 57,252 59,542
Contract-Preventative - External 8,803 29 2,820 2,933 3,050
Contract-Painting 572 2 185 191 197
Contract-System Services 12,194 41 4,364 3,853 3,977
Contract-Access Control 6,414 21 2,071 2,137 2,206
Contract-Appliance 16,738 56 5,405 5,578 5,756
Contract-Roof|Gutter 37,504 125 12,780 12,167 12,557
Contract-Pressure Washing 54,698 182 18,000 18,060 18,638
Contract-Carpet Cleaning 12,716 42 4,390 4,098 4,229
Contract-Electrical 16,291 54 5,260 5,429 5,602
Contract-Pest Control 36,014 120 11,629 12,001 12,385
Contract-Flooring 7,780 26 2,512 2,592 2,675
Contract-Grounds 198,566 660 66,699 64,895 66,972
Contract-Snow Removal 146,165 486 48,024 48,298 49,843
Contract-Tree Service 41,079 136 15,338 12,668 13,073
Contract-Janitorial 139,752 464 49,025 44,649 46,078
Contract-Plumbing 76,238 253 24,616 25,404 26,217
Contract-HVAC 21,008 70 7,390 6,702 6,916
Contract-Fire Suppression 29,041 96 9,377 9,677 9,987
Contract-Windows 9,727 32 3,141 3,241 3,345
Contract-Elevators 13,159 44 4,249 4,385 4,525
Contract-Irrigation Repairs 54,707 182 18,196 17,968 18,543
Contract-General 52,526 175 16,997 17,485 18,045
Total Contract Costs 1,733,051 5,758 570,535 571,122 591,395
Total Maintenance Expenses - Core 1,887,262 6,270 620,779 622,278 644,205
Unit Turn-Work Order 130,358 433 41,760 43,430 45,168
Unit Turn-External Painting 106,984 355 34,272 35,643 37,069
Unit Turn-External Janitorial 24,873 83 7,968 8,287 8,618
Unit Turn-External Trash Out 42,404 141 13,584 14,127 14,693
Unit Turn-External Floor Care 6,293 21 2,016 2,097 2,181
Unit Turn-External Trade 16,332 54 5,232 5,441 5,659
Unit Turn-Materials Paint 17,531 58 5,616 5,841 6,074
Unit Turn-Materials Misc 17,082 57 5,472 5,691 5,919
Total Unit Turn Costs 361,857 1,202 115,920 120,557 125,380
Total Maintenance Expenses 2,249,119 7,472 736,699 742,835 769,585
Vehicle-Fuel 317 1 102 106 109
Total Vehicle Expenses 317 1 102 106 109
Page 105 of 116 117
7b|Villages, Ltd - 3YR
Description Total Total/Unit EOY<br>2026 EOY<br>2027 EOY<br>2028
Period = 01/2026 - 12/2028
Insurance & Taxes Expenses
Insurance - Property 455,217 1,512 139,730 153,149 162,338
Insurance - Liability 58,281 194 17,887 19,609 20,785
Insurance - Umbrella 60,691 202 18,623 20,421 21,646
Insurance Administrative Fee - INTERNAL 57,357 191 17,562 19,318 20,477
Misc. Taxes & Licenses 304 1 98 101 104
Total Tax & Insurance Expenses 631,849 2,099 193,900 212,598 225,351
Other General Expenses
Membership and Fees 31,419 104 10,145 10,470 10,805
Filing Fees 186 1 77 53 55
Office Supplies 9,349 31 3,329 2,963 3,058
Copier and Printer Usage | Supplies 5,678 19 2,309 1,658 1,711
Small Office Equipment 1,840 6 716 553 571
Meetings Expenses 1,533 5 495 511 527
Miscellaneous General Expense 18,528 62 18,528 0 0
Total Other General Expenses 68,534 228 35,600 16,208 16,726
Reserve Allowances
Reserve Account Funding Allowance 280,304 931 90,687 93,407 96,210
Total Reserve Allowances 280,304 931 90,687 93,407 96,210
TOTAL GENERAL EXPENSES 4,162,823 13,830 1,356,077 1,374,232 1,432,514
TOTAL DIRECT OPERATING EXPENSES 7,975,053 26,495 2,584,394 2,642,002 2,748,657
TOTAL OPERATING EXPENSES 7,975,053 26,495 2,584,394 2,642,002 2,748,657
NET OPERATING INCOME 3,597,268 11,951 1,226,202 1,144,534 1,226,532
NON-OPERATING INCOME | EXPENSE
NON OPERATING INCOME
Interest Income - Soft Debt 482,264 1,602 482,264 0 0
Interest Income - Hard Debt 17,929 60 17,929 0 0
TOTAL NON OPERATING INCOME 500,193 1,662 500,193 0 0
NON OPERATING EXPENSES
Interest Expense - Soft Loans 710,799 2,361 236,933 236,933 236,933
Interest Expense - Hard Loans 471,278 1,566 157,093 157,093 157,093
Interest Expense - Loan Fees 11,570 38 3,857 3,857 3,857
1,193,647 3,966 397,882 397,882 397,882
Depreciation - Buildings 3,691,602 12,264 1,232,252 1,229,675 1,229,675
Depreciation - Furn,Fix,Equip - Units 398,214 1,323 132,738 132,738 132,738
Depreciation - Furn,Fix,Equip - Common 69,310 230 23,103 23,103 23,103
Depreciation - Improvements 130,933 435 53,461 38,736 38,736
4,290,059 14,253 1,441,555 1,424,252 1,424,252
TOTAL NON OPERATING EXPENSES 5,483,706 18,218 1,839,437 1,822,135 1,822,135
Page 106 of 116 118
7b|Villages, Ltd - 3YR
Description Total Total/Unit EOY<br>2026 EOY<br>2027 EOY<br>2028
Period = 01/2026 - 12/2028
Proceeds - Sale of Capital Assets 2,277,000 7,565 2,277,000 0 0
Sales - Unit cost 582,042 1,934 582,042 0 0
Sales - Selling Costs -136,620 -454 -136,620 0 0
NET GAIN (LOSS) - SALE OF ASSETS 1,558,338 5,177 1,558,338 0 0
PARTNERSHIP INCOME(EXPENSES)
Tax Credit Monitoring 16,787 56 5,420 5,594 5,773
Asset Management Expense - INTERNAL 1,126,529 3,743 368,377 373,106 385,046
Board Administration Expense - INTERNAL 48,000 159 48,000 0 0
Overhead Expense Allocation - INTERNAL 886,994 2,947 286,402 295,567 305,025
TOTAL PARTNERSHIP INCOME(EXPENSES)-2,078,310 -6,905 -708,199 -674,267 -695,844
NET NON-OPERATING INCOME(EXPENSE)-5,503,485 -18,284 -489,105 -2,496,402 -2,517,978
NET INCOME (LOSS)-1,906,217 -6,333 737,097 -1,351,868 -1,291,446
Page 107 of 116 119
7c|LIHTC - 3YR
Description Total Total/Unit EOY<br>2026 EOY<br>2027 EOY<br>2028
Currency = , Total Units = 834
OPERATING REVENUES
RENTAL INCOME
NET RENTAL INCOME
POTENTIAL RENTAL INCOME
Gross Potential Rent 47,967,773 57,515 15,215,788 15,976,578 16,775,407
(Loss) Gain to Lease -3,884,563 -4,658 -1,232,217 -1,293,828 -1,358,519
Less: Vacancies -1,533,142 -1,838 -486,326 -510,642 -536,174
Less: Concessions -279,902 -336 -88,787 -93,227 -97,888
NET POTENTIAL RENT 42,270,165 50,684 13,408,459 14,078,881 14,782,825
NET POTENTIAL RENT ADJUSTMENTS
Less: Allowance for Doubtful Accounts -1,129,364 -1,354 -358,244 -376,156 -394,964
Pet Rent 85,219 102 27,032 28,384 29,803
Storage Rent 306,423 367 97,200 102,060 107,163
Add: Recoveries 5,078 6 1,611 1,691 1,776
NET POTENTIAL RENT ADJUSTMENTS -732,644 -878 -232,401 -244,021 -256,222
NET RENTAL INCOME 41,537,521 49,805 13,176,057 13,834,860 14,526,603
OTHER TENANT INCOME
Ancillary Income 17,139 21 5,437 5,708 5,994
TOTAL OTHER TENANT INCOME 17,139 21 5,437 5,708 5,994
EFFECTIVE GROSS INCOME 41,554,660 49,826 13,181,494 13,840,569 14,532,597
GRANT REVENUE
Grants - HUD CoC 1,593,820 1,911 522,564 522,564 548,692
Grants - County 300,030 360 100,010 100,010 100,010
TOTAL GRANT REVENUE 1,893,850 2,271 622,574 622,574 648,702
OTHER INCOME
Miscellaneous Income 36,613 44 11,614 12,195 12,804
Interest Income - Unrestricted 366,490 439 117,600 122,305 126,585
HC Mission-Driven Support 157,625 189 50,000 52,500 55,125
TOTAL OTHER INCOME 560,728 672 179,214 186,999 194,515
TOTAL OPERATING REVENUE 44,009,238 52,769 13,983,282 14,650,142 15,375,814
OPERATING EXPENSES
DIRECT OPERATING EXPENSES
ADMINISTRATIVE
Labor Expenses
Management Labor 4,556,251 5,463 1,445,282 1,517,546 1,593,423
Total Labor Expenses 4,556,251 5,463 1,445,282 1,517,546 1,593,423
Legal Expense
Legal-Criminal Background Checks 1,036 1 334 345 356
Legal-Tenant Screening 87,699 105 28,317 29,223 30,158
Advanced Budget
Period = 01/2026 - 12/2028
Page 108 of 116 120
7c|LIHTC - 3YR
Description Total Total/Unit EOY<br>2026 EOY<br>2027 EOY<br>2028
Period = 01/2026 - 12/2028
Legal-General Expense 193,287 232 62,411 64,408 66,469
Total Legal Expense 282,021 338 91,062 93,976 96,983
Management Related Expense
Property Management Expense 3,329,933 3,993 1,075,204 1,109,611 1,145,118
Accounting/Bookkeeping Expense 2,048,533 2,456 661,452 682,619 704,462
Total Management Related Expenses 5,378,467 6,449 1,736,656 1,792,229 1,849,581
Other Administrative Expenses
Staff Training & Conferences 781 1 252 260 269
Training Services and Platforms 120,657 145 38,959 40,206 41,492
Mileage 13,297 16 4,293 4,431 4,573
Meals - Business Partners 93 0 30 31 32
Auditing & Tax Services 305,723 367 98,715 101,874 105,134
Marketing 6,744 8 2,177 2,247 2,319
Resident Relocation 21,076 25 6,805 7,023 7,248
Parking Fees 45 0 14 15 15
Security Services 66,593 80 21,502 22,190 22,900
Miscellaneous Admin Expenses 6,948 8 2,243 2,315 2,389
Total Other Administrative Expenses 541,955 650 174,992 180,592 186,371
Technology Expenses
Managed Services - Internal 470,194 564 151,822 156,680 161,693
Cable Services 724 1 234 241 249
Telephone - Landline 113,819 136 36,751 37,927 39,141
Internet Services 165,484 198 53,433 55,143 56,908
Cellular - Phones | Tablets 18,108 22 5,847 6,034 6,227
Total Technology Expenses 768,329 921 248,087 256,025 264,218
Compliance Expenses
Compliance Services - Internal 263,457 316 85,068 87,790 90,599
Compliance Services - Consultants 3,619 4 1,169 1,206 1,245
Total Compliance Expenses 267,077 320 86,237 88,996 91,844
TOTAL ADMINISTRATIVE EXPENSES 11,794,100 14,142 3,782,316 3,929,365 4,082,420
GENERAL EXPENSES
Resident Services
Resident Services - Internal 3,262,725 3,912 1,053,503 1,087,215 1,122,006
Resident Services - VE Fund Credits -309,702 -371 -100,000 -103,200 -106,502
RS - Grant Expenses 1,928,127 2,312 622,574 642,496 663,056
Total Resident Services 4,881,149 5,853 1,576,077 1,626,512 1,678,560
Utilities Expense
Water 1,148,394 1,377 361,927 383,642 402,824
Electricity 914,396 1,096 288,180 305,471 320,745
Electricity-Vacant Units 52,981 64 16,698 17,699 18,584
Gas 256,366 307 80,796 85,644 89,926
Gas-Vacant Units 4,882 6 1,539 1,631 1,712
Trash Removal - Recycling 79,685 96 25,114 26,620 27,951
Trash Removal - Regular 341,606 410 107,660 114,120 119,826
Page 109 of 116 121
7c|LIHTC - 3YR
Description Total Total/Unit EOY<br>2026 EOY<br>2027 EOY<br>2028
Period = 01/2026 - 12/2028
Trash Removal - Overage 13,030 16 4,107 4,353 4,571
Total Utility Expenses 2,811,341 3,371 886,020 939,181 986,140
Maintenance Expenses
General Items
Maintenance - On Call 12,265 15 3,929 4,086 4,250
Tools and Equipment 147 0 47 49 50
Equipment Rentals 394 0 127 131 135
Total General Maint Expense 12,806 15 4,104 4,266 4,436
Supplies
Supplies-Grounds 46,062 55 14,873 15,349 15,840
Supplies-Appliances 91,384 110 29,507 30,451 31,426
Supplies-Electrical 58,794 70 18,984 19,592 20,219
Supplies-Pest Control 1,641 2 530 547 564
Supplies-Janitorial 43,895 53 14,173 14,627 15,095
Supplies-General 23,744 28 7,667 7,912 8,165
Supplies-Plumbing 71,500 86 23,087 23,825 24,588
Supplies-Paint 13,303 16 4,296 4,433 4,575
Supplies-HVAC 27,567 33 8,901 9,186 9,480
Supplies-Doors 83,266 100 26,886 27,746 28,634
Supplies-Windows 27,025 32 8,726 9,005 9,294
Total Supplies | Materials 488,181 585 157,629 162,673 167,879
Contracts
Contract-Work Orders - Internal 2,091,025 2,507 669,857 696,651 724,517
Contract-Preventative - Internal 597,006 716 191,250 198,900 206,856
Contract-Preventative - External 54,503 65 17,460 18,158 18,885
Contract-Painting 1,103 1 356 367 379
Contract-System Services 31,823 38 10,275 10,604 10,944
Contract-Access Control 84,635 101 27,328 28,202 29,105
Contract-Appliance 128,688 154 41,552 42,882 44,254
Contract-Roof|Gutter 101,310 121 32,712 33,759 34,839
Contract-Pressure Washing 127,443 153 41,150 42,467 43,826
Contract-Carpet Cleaning 27,151 33 8,767 9,047 9,337
Contract-Electrical 61,894 74 19,985 20,625 21,285
Contract-Pest Control 101,965 122 32,924 33,977 35,064
Contract-Flooring 9,560 11 3,087 3,186 3,288
Contract-Grounds 564,266 677 182,196 188,026 194,043
Contract-Snow Removal 263,030 315 84,930 87,648 90,453
Contract-Tree Service 59,980 72 19,367 19,987 20,626
Contract-Janitorial 481,795 578 155,567 160,545 165,683
Contract-Plumbing 268,634 322 86,739 89,515 92,379
Contract-HVAC 147,080 176 47,491 49,011 50,579
Contract-Fire Suppression 108,108 130 34,907 36,024 37,177
Contract-Windows 24,939 30 8,053 8,310 8,576
Contract-Elevators 70,590 85 22,793 23,522 24,275
Contract-Irrigation Repairs 57,685 69 18,626 19,222 19,837
Page 110 of 116 122
7c|LIHTC - 3YR
Description Total Total/Unit EOY<br>2026 EOY<br>2027 EOY<br>2028
Period = 01/2026 - 12/2028
Contract-General 98,258 118 31,727 32,742 33,790
Total Contract Costs 5,562,470 6,670 1,789,097 1,853,377 1,919,995
Total Maintenance Expenses - Core 6,063,456 7,270 1,950,830 2,020,317 2,092,310
Unit Turn Costs
Unit Turn-Work Order 388,358 466 124,410 129,386 134,562
Unit Turn-External Painting 318,722 382 102,102 106,186 110,433
Unit Turn-External Janitorial 74,099 89 23,738 24,687 25,674
Unit Turn-External Trash Out 172,402 207 55,229 57,438 59,735
Unit Turn-External Floor Care 18,748 22 6,006 6,246 6,496
Unit Turn-External Trade 51,240 61 16,415 17,071 17,754
Unit Turn-Materials Paint 52,227 63 16,731 17,400 18,096
Unit Turn-Materials Misc 50,888 61 16,302 16,954 17,632
Total Unit Turn Costs 1,126,685 1,351 360,932 375,369 390,384
Total Maintenance Expenses 7,190,142 8,621 2,311,763 2,395,686 2,482,693
Vehicle Expenses
Vehicle-Fuel 296 0 95 98 102
Total Vehicle Expenses 296 0 95 98 102
Insurance & Taxes Expenses
Insurance - Property 2,122,840 2,545 649,982 714,980 757,878
Insurance - Liability 166,181 199 50,882 55,970 59,328
Insurance - Umbrella 208,170 250 63,738 70,112 74,319
Total Tax & Insurance Expenses 2,497,191 2,994 764,602 841,062 891,526
Other General Expenses
Membership and Fees 3,654 4 1,180 1,218 1,257
Bank Fees 10,641 13 3,436 3,546 3,659
Filing Fees 1,357 2 438 452 467
Office Supplies 30,114 36 9,724 10,035 10,356
Copier and Printer Usage | Supplies 59,120 71 19,089 19,700 20,331
Postage Usage | Supplies 1,132 1 365 377 389
Small Office Equipment 3,178 4 1,026 1,059 1,093
Meetings Expenses 7,627 9 2,463 2,542 2,623
Facilities Rent 23,713 28 7,657 7,902 8,154
Total Other General Expenses 140,536 169 45,378 46,830 48,328
Reserve Allowances
Reserve Account Funding Allowance 1,028,559 1,233 332,770 342,753 353,036
Total Reserve Allowances 1,028,559 1,233 332,770 342,753 353,036
TOTAL GENERAL EXPENSES 18,549,212 22,241 5,916,705 6,192,123 6,440,385
TOTAL DIRECT OPERATING EXPENSES 30,343,313 36,383 9,699,020 10,121,487 10,522,805
TOTAL OPERATING EXPENSES 30,343,313 36,383 9,699,020 10,121,487 10,522,805
NET OPERATING INCOME 13,665,926 16,386 4,284,262 4,528,655 4,853,009
NON-OPERATING INCOME | EXPENSE
Page 111 of 116 123
7c|LIHTC - 3YR
Description Total Total/Unit EOY<br>2026 EOY<br>2027 EOY<br>2028
Period = 01/2026 - 12/2028
NON OPERATING EXPENSES
Interest Expense
Interest Expense - Soft Loans 5,129,881 6,151 1,709,960 1,709,960 1,709,960
Interest Expense - Hard Loans 6,380,815 7,651 2,126,938 2,126,938 2,126,938
Interest Expense - Other 77,824 93 25,941 25,941 25,941
Interest Expense - Loan Fees 335,575 402 111,858 111,858 111,858
Total Interest Expense 11,924,095 14,297 3,974,698 3,974,698 3,974,698
Depreciation | Amortization Expense
Depreciation - Buildings 16,893,377 20,256 5,631,126 5,631,126 5,631,126
Depreciation - Furn,Fix,Equip - Units 1,075,955 1,290 358,652 358,652 358,652
Depreciation - Furn,Fix,Equip - Common 624,123 748 208,041 208,041 208,041
Depreciation - Improvements 1,901,197 2,280 633,732 633,732 633,732
Amortization - Tax Credit Fees 217,288 261 72,429 72,429 72,429
Total Depreciation | Amortization Expense 20,711,940 24,834 6,903,980 6,903,980 6,903,980
Resident Services - Pd from Reserves 309,702 371 100,000 103,200 106,502
TOTAL NON OPERATING EXPENSES 32,945,737 39,503 10,978,678 10,981,878 10,985,181
PARTNERSHIP INCOME(EXPENSES)
Tax Credit Monitoring 25,616 31 8,271 8,536 8,809
Partnership - Management Fee Expense 128,960 155 41,640 42,972 44,347
TOTAL PARTNERSHIP INCOME(EXPENSES)103,344 124 33,369 34,437 35,539
NET NON-OPERATING INCOME(EXPENSE)-32,842,393 -39,379 -10,945,309 -10,947,442 -10,949,642
NET INCOME (LOSS)-19,176,467 -22,993 -6,661,047 -6,418,787 -6,096,633
Page 112 of 116 124
7d| - Wellington - 3YR
Description Total Total/Unit EOY<br>2026 EOY<br>2027 EOY<br>2028
Currency = , Total Units = 42
OPERATING REVENUES
RENTAL INCOME
NET RENTAL INCOME
POTENTIAL RENTAL INCOME
Gross Potential Rent 2,437,084 58,026 773,064 811,717 852,303
(Loss) Gain to Lease -18,612 -443 -5,904 -6,199 -6,509
Less: Vacancies -97,475 -2,321 -30,920 -32,466 -34,089
NET POTENTIAL RENT 2,320,997 55,262 736,240 773,052 811,705
NET POTENTIAL RENT ADJUSTMENTS
Less: Allowance for Doubtful Accounts -32,184 -766 -10,209 -10,719 -11,255
NET POTENTIAL RENT ADJUSTMENTS -32,184 -766 -10,209 -10,719 -11,255
NET RENTAL INCOME 2,288,813 54,496 726,031 762,333 800,449
OTHER TENANT INCOME
Ancillary Income 1,098 26 348 366 384
TOTAL OTHER TENANT INCOME 1,098 26 348 366 384
EFFECTIVE GROSS INCOME 2,289,911 54,522 726,379 762,698 800,833
OTHER INCOME
Interest Income - Unrestricted 891 21 286 297 308
TOTAL OTHER INCOME 891 21 286 297 308
TOTAL OPERATING REVENUE 2,290,802 54,543 726,665 762,996 801,141
OPERATING EXPENSES
DIRECT OPERATING EXPENSES
ADMINISTRATIVE
Labor Expenses
Management Labor 185,969 4,428 58,991 61,941 65,038
Total Labor Expenses 185,969 4,428 58,991 61,941 65,038
Legal Expense
Legal-Tenant Screening 584 14 189 195 201
Legal-General Expense 3,844 92 1,241 1,281 1,322
Total Legal Expense 4,428 105 1,430 1,475 1,523
Management Related Expense
Property Management Expense 185,028 4,405 59,744 61,656 63,629
Accounting/Bookkeeping Expense 179,969 4,285 58,110 59,970 61,889
Total Management Related Expenses 364,997 8,690 117,854 121,625 125,517
Other Administrative Expenses
Training Services and Platforms 3,028 72 978 1,009 1,041
Mileage 1,484 35 479 494 510
Auditing & Tax Services 34,267 816 11,065 11,419 11,784
Marketing 319 8 103 106 110
Security Services 3,113 74 1,005 1,037 1,071
Advanced Budget
Period = 01/2026 - 12/2028
Page 113 of 116 125
7d| - Wellington - 3YR
Description Total Total/Unit EOY<br>2026 EOY<br>2027 EOY<br>2028
Period = 01/2026 - 12/2028
Total Other Administrative Expenses 42,211 1,005 13,630 14,066 14,516
Technology Expenses
Managed Services - Internal 19,191 457 6,197 6,395 6,600
Telephone - Landline 1,880 45 607 626 647
Internet Services 21,263 506 6,866 7,085 7,312
Cellular - Phones | Tablets 519 12 168 173 179
Total Technology Expenses 42,854 1,020 13,837 14,280 14,737
Compliance Expenses
Compliance Services - Internal 13,268 316 4,284 4,421 4,563
Total Compliance Expenses 13,268 316 4,284 4,421 4,563
TOTAL ADMINISTRATIVE EXPENSES 653,727 15,565 210,026 217,808 225,893
GENERAL EXPENSES
Utilities Expense
Water 154,916 3,688 48,823 51,753 54,340
Electricity 41,383 985 13,042 13,825 14,516
Electricity-Vacant Units 216 5 68 72 76
Gas 37,099 883 11,692 12,394 13,013
Trash Removal - Regular 65,046 1,549 20,500 21,730 22,816
Total Utility Expenses 298,660 7,111 94,126 99,773 104,762
Maintenance Expenses
Maintenance - On Call 649 15 208 216 225
Total General Maint Expense 649 15 208 216 225
Supplies-Grounds 2,082 50 672 694 716
Supplies-Appliances 1,442 34 466 481 496
Supplies-Electrical 5,664 135 1,829 1,887 1,948
Supplies-Pest Control 38 1 12 13 13
Supplies-Janitorial 192 5 62 64 66
Supplies-General 1,224 29 395 408 421
Supplies-Plumbing 2,370 56 765 790 815
Supplies-Paint 736 18 238 245 253
Supplies-HVAC 550 13 177 183 189
Supplies-Doors 1,672 40 540 557 575
Supplies-Windows 1,146 27 370 382 394
Total Supplies | Materials 17,114 407 5,526 5,703 5,885
Contract-Work Orders - Internal 145,633 3,467 46,653 48,519 50,460
Contract-Preventative - Internal 39,800 948 12,750 13,260 13,790
Contract-Appliance 6,207 148 2,004 2,068 2,134
Contract-Roof|Gutter 10,406 248 3,360 3,468 3,578
Contract-Pressure Washing 6,194 147 2,000 2,064 2,130
Contract-Electrical 559 13 181 186 192
Page 114 of 116 126
7d| - Wellington - 3YR
Description Total Total/Unit EOY<br>2026 EOY<br>2027 EOY<br>2028
Period = 01/2026 - 12/2028
Contract-Pest Control 179 4 58 60 62
Contract-Grounds 117,068 2,787 37,800 39,010 40,258
Contract-Snow Removal 29,323 698 9,468 9,771 10,084
Contract-Tree Service 7,043 168 2,274 2,347 2,422
Contract-Janitorial 591 14 191 197 203
Contract-Plumbing 47,040 1,120 15,189 15,675 16,176
Contract-HVAC 19,308 460 6,234 6,434 6,640
Contract-Fire Suppression 542 13 175 181 186
Contract-Windows 2,699 64 872 900 928
Contract-Irrigation Repairs 13,565 323 4,380 4,520 4,665
Contract-General 7,886 188 2,546 2,628 2,712
Total Contract Costs 454,043 10,811 146,135 151,286 156,622
Total Maintenance Expenses - Core 471,807 11,233 151,869 157,206 162,732
Unit Turn-Work Order 8,147 194 2,610 2,714 2,823
Unit Turn-External Painting 6,687 159 2,142 2,228 2,317
Unit Turn-External Janitorial 1,555 37 498 518 539
Unit Turn-External Trash Out 2,650 63 849 883 918
Unit Turn-External Floor Care 393 9 126 131 136
Unit Turn-External Trade 1,021 24 327 340 354
Unit Turn-Materials Paint 1,096 26 351 365 380
Unit Turn-Materials Misc 1,068 25 342 356 370
Total Unit Turn Costs 22,616 538 7,245 7,535 7,836
Total Maintenance Expenses 494,423 11,772 159,114 164,740 170,568
Insurance & Taxes Expenses
Insurance - Property 76,248 1,815 23,346 25,681 27,221
Insurance - Liability 13,864 330 4,245 4,669 4,950
Insurance - D&O | E&O 1,470 35 450 495 525
Insurance - Specialty | Other 69,053 1,644 21,143 23,257 24,653
Total Tax & Insurance Expenses 160,635 3,825 49,184 54,102 57,348
Other General Expenses
Membership and Fees 494 12 160 165 170
Office Supplies 318 8 103 106 109
Copier and Printer Usage | Supplies 479 11 155 159 165
Small Office Equipment 599 14 193 200 206
Meetings Expenses 465 11 150 155 160
Miscellaneous General Expense 319 8 103 106 110
Total Other General Expenses 2,673 64 863 891 919
Reserve Allowances
Reserve Account Funding Allowance 40,114 955 12,978 13,367 13,768
Total Reserve Allowances 40,114 955 12,978 13,367 13,768
TOTAL GENERAL EXPENSES 996,504 23,726 316,264 332,874 347,366
TOTAL DIRECT OPERATING EXPENSES 1,650,232 39,291 526,290 550,682 573,259
Page 115 of 116 127
7d| - Wellington - 3YR
Description Total Total/Unit EOY<br>2026 EOY<br>2027 EOY<br>2028
Period = 01/2026 - 12/2028
TOTAL OPERATING EXPENSES 1,650,232 39,291 526,290 550,682 573,259
NET OPERATING INCOME 640,571 15,252 200,375 212,314 227,882
NON-OPERATING INCOME | EXPENSE
NON OPERATING EXPENSES
Other Financing Costs 1,532 36 500 516 516
1,532 36 500 516 516
Depreciation - Buildings 68,346 1,627 22,782 22,782 22,782
Depreciation - Furn,Fix,Equip - Units 40,061 954 13,354 13,354 13,354
Depreciation - Furn,Fix,Equip - Common 24,578 585 8,193 8,193 8,193
132,985 3,166 44,328 44,328 44,328
TOTAL NON OPERATING EXPENSES 134,517 3,203 44,828 44,844 44,844
PARTNERSHIP INCOME(EXPENSES)
Board Related Expenses and Travel 6,000 143 6,000 0 0
Board Administration Expense - INTERNAL 77,426 1,843 25,000 25,800 26,626
TOTAL PARTNERSHIP INCOME(EXPENSES)-83,426 -1,986 -31,000 -25,800 -26,626
NET NON-OPERATING INCOME(EXPENSE)-217,943 -5,189 -75,828 -70,644 -71,470
NET INCOME (LOSS)422,628 10,063 124,547 141,669 156,412
Page 116 of 116 128
Assumptions Report
Key Assumptions and Rationale Behind the 2026 Budget
129
Contents
Introduction .................................................................................................................................... 1
Agency-Level Assumptions ............................................................................................................. 1
Economic Assumptions ............................................................................................................... 1
Staffing and Labor Costs ............................................................................................................. 2
Agency-Wide Training Assumptions ........................................................................................... 6
Insurance Expense Assumptions ................................................................................................. 7
Depreciation & Amortization Expenses ...................................................................................... 8
Strategic Initiatives ..................................................................................................................... 8
Cost-Center Level Assumptions ...................................................................................................... 9
Overview ..................................................................................................................................... 9
Tier 1: Foundational Cost Centers ............................................................................................ 10
Tier 2: Departmental Cost Centers ........................................................................................... 10
Intra-Dept Billings ..................................................................................................................... 11
Business Unit Level Assumptions .................................................................................................. 12
Rental Assistance Department ................................................................................................. 12
Real Estate Development Department ..................................................................................... 12
Property Management Department ......................................................................................... 13
Maintenance Department ........................................................................................................ 15
Resident Services Department ................................................................................................. 17
Catalyst Funds ........................................................................................................................... 20
General Fund ............................................................................................................................. 20
Voucher Programs ........................................................................................................................ 21
Key Monitoring Tools ................................................................................................................ 21
Economic Assumptions ............................................................................................................. 21
Development Department Activities ............................................................................................ 23
Project Planning and Development .......................................................................................... 23
Real Estate Portfolios .................................................................................................................... 25
Portfolio Assumptions ............................................................................................................... 25
Operational Assumptions ......................................................................................................... 25
Capital Expenditure Assumptions ............................................................................................. 29
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3-Year Rolling ................................................................................................................................ 31
Conclusion ..................................................................................................................................... 32
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INTRODUCTION
This report outlines the key assumptions used in preparing the FY2026 budget. These
assumptions form the foundation of Housing Catalyst’s financial projections and provide the
context needed to understand the rationale behind the figures presented in the accompanying
Budget Outcomes Report. By clearly defining these assumptions, we ensure that the budget
reflects organizational priorities and offers a transparent framework for planning and decision-
making.
The assumptions are based on a combination of historical performance, market analysis, and
strategic planning initiatives. Historical data establishes trends and performance baselines,
while current market conditions and economic forecasts help anticipate changes in revenue,
expenses, and funding levels. The 2023–2027 Strategic Plan continues to guide these decisions,
ensuring that financial planning supports Housing Catalyst’s mission and long-term objectives.
Throughout this report, figures are compared to the 2025 pro forma forecast, which
incorporates actual results from January through August 2025 and budgeted projections for
September through December. This year-over-year comparison allows for a clear assessment of
performance trends and ensures that 2026 assumptions are both data-driven and grounded in
realistic expectations.
AGENCY-LEVEL ASSUMPTIONS
ECONOMIC ASSUMPTIONS
Inflation Rate: After reviewing multiple reputable sources, Housing Catalyst has adopted a 3.2%
inflation rate assumption for 2026. This figure reflects a balanced and conservative approach
based on current national and global forecasts. The OECD’s March 2025 Economic Outlook
projects inflation among advanced economies to average 3.2% in 2026, moderating from 3.8%
in 2025 as supply chain pressures ease (OECD, 2025). Similarly, Deloitte’s U.S. Economic
Forecast (Q2 2025) anticipates CPI growth stabilizing around 3.2% in 2026, reflecting slower
consumer spending and reduced wage pressure (Deloitte, 2025). The Federal Reserve Bank of
New York’s Survey of Consumer Expectations (June 2025) places medium-term inflation
expectations between 2.8% and 3.0% (Federal Reserve Bank of New York, 2025).
Together, these forecasts support maintaining a 3.2% assumption for Housing Catalyst’s
financial modeling, providing a prudent basis for projecting operating cost growth and long-
term budget stability.
Interest Rates: Borrowing rates for new LIHTC debt are expected to decline gradually from 2025
into 2026, assuming the Federal Reserve begins to ease at a measured pace. While the federal-
funds rate forecast is projected to fall from 5.25%–5.50% toward the 2.75%–3.00% range by
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late 2025, actual credit spreads and market conditions will affect final borrowing costs
(Morningstar, 2024).
Housing Market Conditions: The Colorado rental market remains tight, with steady demand
and modest softening in select submarkets. According to the Colorado Housing and Finance
Authority (CHFA) Q2 2025 Apartment Market Survey, the Fort Collins metro area vacancy rate
stands at 5.3%, up slightly from 4.5% a year earlier. The average rent is $1,645, representing a
2.7% year-over-year decline and a decrease from the 2024 high of $1,751. Despite this modest
correction, rents remain well above pre-pandemic levels, and affordability pressures persist,
particularly for lower-income households.
At the state level, CHFA reports that median rents increased by 7.4% from 2024 to 2025, while
supply growth remains constrained. These conditions reinforce the need for affordable housing
options, as market rents continue to outpace wage growth. For Housing Catalyst, these
dynamics support maintaining conservative rent assumptions while recognizing the persistent
demand for stable, income-restricted housing across Northern Colorado.
Employment Market Conditions: For 2026, the Northern Colorado employment market
presents both opportunities and challenges for affordable housing employers. Colorado's labor
market is expected to maintain growth, though at a decelerating pace—projected at 1.5% in
2026, down from 2.8% in 20240F
1. Despite this slowdown, wage withholding tax revenues are
projected to pick up in 2026, reflecting continued employment expansion1. As of May 2025, the
state added 22,200 jobs year-over-year, demonstrating ongoing job creation1F
2.
These conditions reflect a gradually cooling labor market but continued expansion, suggesting
that hiring conditions may ease slightly for employers compared to prior years.
STAFFING AND LABOR COSTS
Building on the broader employment trends outlined in the Economic Assumptions section, the
following assumptions define Housing Catalyst’s approach to staffing levels, compensation, and
benefits for FY2026. These assumptions reflect the organization’s operational needs, current
market conditions, and strategic focus on maintaining a competitive and stable workforce.
Housing Catalyst’s compensation and staffing assumptions are informed by observed trends in
wage growth, recruitment availability, and retention challenges across key occupational areas.
The assumptions that follow outline the basis for projected changes in salaries, benefits, and
full-time equivalent (FTE) positions included in the 2026 budget.
1 Colorado General Assembly - Economic & Revenue
Forecast: https://leg.colorado.gov/sites/default/files/images/lcs_june_2025_forecast_updated_with_obbba_fiscal_impacts.pdf
2 Colorado Employment Situation – May 2025 - Colorado Department of Labor and
Employment https://content.govdelivery.com/attachments/CODLE/2025/06/20/file_attachments/3299554/employment-situation-2025-
05_fixed6_20.pdf
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Housing Catalyst assumes that all budgeted positions are filled for the entire fiscal year. While
temporary vacancies are expected, budgeting for full-year occupancy provides flexibility to use
temporary labor or contract support when needed and ensures that funding remains available
for critical operational coverage. This approach offers a more accurate reflection of long-term
personnel costs and supports effective financial planning by maintaining alignment between
budgeted resources and operational capacity.
Any vacancy savings realized during the year will be used to offset unplanned labor costs, fund
temporary staffing needs, or support strategic initiatives identified through the budget
monitoring process.
Employment Landscape
Several trends are expected to shape workforce recruitment and retention:
• Property Management & Administration: The region's educated workforce provides
a strong talent pool for these positions. Weaker wage growth projections may ease
compensation pressures, though competition from other service sectors still requires
maintaining competitive packages to attract qualified professionals with customer
service and compliance expertise.
• Maintenance & Skilled Trades: Labor shortages persist for certified HVAC
technicians, plumbers, and electricians. However, the construction industry's
slowdown due to stagnant home price growth may ease competition for these
workers. With Colorado's unemployment rate at 4.8% as of May 2025—above the
national rate of 4.2%2—the available talent pool is potentially expanding, improving
recruitment opportunities for experienced maintenance professionals.
• Development Professionals: The softer construction market creates opportunities to
attract experienced project managers and development professionals seeking stable
employment in mission-driven organizations.
• Social Services Workers: The region's universities provide a steady pipeline of social
work students and recent graduates seeking entry-level positions. Economic
uncertainty may drive more students toward stable nonprofit employers offering
hands-on experience and potential loan forgiveness programs.
Housing Catalyst's operational stability, mission alignment, and consistent project pipeline
positions it advantageously against private sector volatility. While some affordable housing
organizations face workforce pressures, Housing Catalyst can leverage its stability to attract
professionals seeking meaningful work with job security. The organization's ability to offer
competitive benefits, professional development, and mission-aligned work creates distinct
advantages in recruiting and retaining specialized talent across all operational areas. This
positioning becomes particularly valuable as Housing Catalyst pursues its strategic goals in an
evolving market.
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Salary Growth and Wage Adjustment Assumptions
Salaries and wages are projected to increase 4.6% over the 2025 pro forma, reflecting both
compensation adjustments and staffing realignments across departments. For budget modeling
purposes, Housing Catalyst has applied a blended increase rate of 4.8% (approximately
$385,959) to represent the combined effect of the market adjustment pool and the
performance increase pool. While these two pools continue to be managed separately in
practice, using a blended assumption provides a simplified budgeting method and ensures
consistent application across departments. These assumptions align with the broader
employment trends discussed in the Economic Assumptions section and ensure consistent
treatment of wage growth across all program areas.
The remaining variance is attributed to position reclassifications and FTE adjustments, resulting
in a net decrease of 1.29 FTE and an overall ($19,051) reduction in total wage expense. This
approach maintains competitive compensation assumptions while balancing fiscal discipline
and workforce stability.
• Compensation Market Pool: The market pool ensures employee compensation
remains competitive with industry standards. Housing Catalyst conducts annual
market analyses to benchmark salaries against comparable roles in the affordable
housing and nonprofit sectors. Denver's minimum wage will reach $19.29 per hour in
2026, a 2.56% increase from 20252F
3,
3F
4. While this directly impacts entry-level positions,
the ripple effect influences wage expectations across all levels. Housing Catalyst's
market pool aligns strategically with regional wage growth trends while accounting
for the specialized skills required in affordable housing development and
management.
• Performance Increase Pool: This pool rewards individual employee performance
based on annual evaluations. For 2026, the labor budget team implemented a
nuanced approach, allocating higher pools to departments facing greater retention
challenges or requiring specialized certifications. Departments receiving higher
performance pools include Executive, Development, Maintenance, Property
Management, Resident Services, and Site Staff due to anticipated recruitment and
retention costs. This targeted strategy addresses the competitive pressures identified
in our employment market analysis.
FTE Change
Current assumptions reflect a net decrease of (1.29) FTE in 2026, resulting in an overall
reduction of ($19,051) in salaries and wages. It is important to note that position
3 Colorado Sun - "Denver's minimum wage will rise to $19.29 in 2026" https://coloradosun.com/2025/08/07/denvers-minimum-wage-colorado/
4 Denver Government - "Denver Local Minimum Wage Adjusts to $19.29 per Hour for
2026" https://www.denvergov.org/Government/Agencies-Departments-Offices/Agencies-Departments-Offices-Directory/Department-of-
Finance/News/2025/Denver-Local-Minimum-Wage-Adjusts-to-19.29-per-Hour-for-2026
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reclassifications can move a budgeted role into a higher mid-range pay band, which may
partially offset or obscure the savings associated with the FTE reduction.
Detailed FTE changes by department are as follows:
• +1.00 FTE | IT – Housing Catalyst is funding an 18–24-month Yardi Systems
Improvement Specialist project-specific position with potential to become
permanent. This role will focus on optimizing Housing Catalyst’s Yardi platform to
contribute to broader process improvement initiatives across Housing Catalyst,
specifically in Financial Services, Rental Assistance, Property Operations and
Maintenance. The position will be financed via Catalyst Funds for 2026.
• -1.49 FTE | Resident Services – Housing Catalyst remains committed to providing
services that enhance the social and economic well-being of residents while
strategically stewarding agency resources. The 1.49 FTE reduction includes the
elimination of the currently vacant PSH Supervisor position and changes to FTE
allocations for several Resident Services Specialists within our Permanent Supportive
Housing (PSH) sites to reflect current program needs. The department continues to
tentatively operate with two Resident Services Coordinator positions in 2026. One
Coordinator will focus on two designated non-PSH properties, with services
discontinued at other non-PSH sites to maximize program impact. The second
Coordinator position is under review for potential elimination pending further
evaluation of portfolio needs and service outcomes. This role is budgeted to be
funded by Catalyst Funds for 2026, contingent upon completion of the departmental
review and a final decision by year-end 2025.
• +0.20 FTE | Rental Assistance – The department anticipates a retirement in 2026 and
plans to convert the position from 32 hours to 40 hours per week. This strategic
increase will enhance departmental capacity while providing continuity of service
during the transition period.
• -1.00 FTE | Maintenance – The Maintenance Project Manager position will be
eliminated in 2026 due to these duties being absorbed by the department manager.
The employee will be transferred to the Development department to fill a vacant
position on that team.
Fringe Benefits
Benefits represent 22.27% of total compensation, excluding the value of any paid time off. This
percentage reflects the ratio of employer-paid benefits to total salaries and wages. The total
dollar value of benefits is projected to increase by $30,420, 1.65% over 2025 levels. For context,
the 2025 pro forma fringe rate is 22.31%, compared to a budgeted rate of 23.04%.
Typical benefits included in this rate are medical, dental, vision, life insurance, short- and long-
term disability, retirement contributions, and the Medical Expense Reimbursement Plan
(MERP). Housing Catalyst fully funds several of these core benefits—specifically life insurance,
short- and long-term disability, MERP, and the employer retirement contribution.
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For health-related coverage, Housing Catalyst provides each benefits-eligible employee with a
fixed allowance per pay period, designed to fully cover the cost of employee-only medical
coverage. Employees may elect to add dependents or enhance dental and vision coverage at
their own cost. This contribution model allows Housing Catalyst to maintain predictable benefit
costs while continuing to offer competitive coverage. The agency reviews plan renewals
annually and adjusts its contribution as needed to preserve this balance.
The modest overall increase reflects ongoing strategic benefits management, favorable
utilization trends, and stable participation rates across core programs.
Key assumptions include:
• Medical, Dental, and Vision Coverage (Employer Medical Contribution): Increasing
to $295 per employee per pay period, reflecting a planned $15, 5.3% increase to
maintain comprehensive coverage amid rising healthcare costs. Medical insurance
premiums are projected to increase 3.9% for 2026, remaining below industry
averages due to favorable utilization and proactive wellness initiatives, while dental
and vision rates will remain flat. Housing Catalyst’s allowance model targets to fully
cover the cost of employee-only medical coverage, while employees pay the
remaining portion of medical, dental, and vision premiums for dependent or
enhanced coverage.
• Employer-Funded Ancillary Insurance: No premium increases are anticipated for life
insurance, short- or long-term disability. These benefits are fully funded by Housing
Catalyst, providing additional stability and protection for employees.
• Employer Retirement Contributions: The 10% employer contribution rate remains
unchanged, underscoring Housing Catalyst’s commitment to supporting employees’
long-term financial security. Housing Catalyst does not withhold Social Security from
employee wages, as participation in the defined retirement plan serves as the
agency’s alternative to Social Security coverage.
• MERP (Medical Expense Reimbursement Plan) Allowance: Budgeted at $45,000
based on historical utilization patterns, continuing to offset employees’ out-of-pocket
medical expenses. The MERP reimburses employees for eligible medical expenses
related to deductibles that exceed designated minimum thresholds, up to the
employee’s maximum out-of-pocket limit. This program provides additional financial
protection for employees while helping to offset rising healthcare costs.
AGENCY -WIDE TRAINING ASSUMPTIONS
For FY2026, Housing Catalyst assumes total agency-wide training costs equal to 4.1% of Salaries
and Wages. According to the Society for Human Resource Management (SHRM), organizations
typically invest between 1% and 5% of payroll in employee training and development. The
higher level of investment reflects Housing Catalyst’s commitment to professional growth,
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continuous learning, and the belief that developing staff capabilities directly strengthens the
agency’s effectiveness, leadership pipeline, and service quality.
The average training cost of $3,765 per headcount includes all associated travel and per diem
costs, as well as a range of training-related expenses such as:
• Professional Development: Costs for external training programs, certifications, and
seminars that are essential for staff to stay current in their respective fields. This
includes leadership development, technical training, and compliance-related
education.
• In-House Training Programs: Expenses for workshops, training materials, and any in-
house training sessions delivered by internal or external facilitators.
• Conferences and Seminars: Fees associated with attending industry conferences,
including registration costs for employees representing the agency.
• Mandatory Certifications and Compliance Training: Costs related to maintaining
required certifications for specific roles (e.g., accounting, property management,
compliance) and ensuring that employees meet ongoing professional requirements.
• Employee Soft Skills Training: This includes mental health support and wellness
initiatives like mindfulness training, as well as developing soft skills such as
communication, collaboration, and problem-solving.
INSURANCE EXPENSE ASSUMPTIONS
Market data indicates a softening in property insurance premiums, with some sectors even
experiencing modest rate reductions following several years of steep increases. Housing
Catalyst engages an external insurance broker who takes the agency’s portfolio out to market
annually. However, there continues to be limited carriers willing to underwrite large affordable
housing portfolios, and most are unable to compete with the pricing and coverage terms
available through the Housing Authority Insurance Group (HAIG).
HAIG is a risk-sharing pool and specialized carrier formed by public housing authorities to
provide stable, tailored insurance coverage for the affordable housing industry. Due to its
unique structure and collective underwriting model, Housing Catalyst’s premiums do not always
align with broader market trends.
For FY2026, Housing Catalyst is assuming a 5% year-over-year rate increase for property
insurance to remain conservative given HAIG’s portfolio-wide risk exposure. Other coverage
areas reflect projected rate increases year over year based on broker and risk consultant
guidance. No new coverage types are anticipated at this time, and no material valuation
changes are expected that would otherwise influence property premiums.
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Anticipated year-over-year rate increases by coverage type are as follows:
• Property Insurance: 5%
• General Liability: 3%
• Umbrella/Excess Liability: 10%
• Accountants: 3%
• Auto: 7%
• Crime: Flat
• Cyber: Flat
• Directors & Officers (D&O) Insurance: Flat
• Deadly Weapons: 10%
• Professional Liability: 5%
• Specialty Insurance: 15%
Brokerage fees will also increase under the existing multi-year agreement, rising from $85,000
to $90,000 in FY2026 per the negotiated contract terms.
DEPRECIATION & AMORTIZATION EXPENSES
Depreciation & Amortization: Depreciation and amortization expenses are budgeted based on
the straight-line method, following Housing Catalyst’s standard practices for capital assets and
leased assets. Depreciation for physical assets, such as buildings and equipment, is calculated
over the estimated useful life of the assets, with no significant changes in estimated lifespans
from the prior year. For the FY2026 budget, depreciation on buildings and major equipment is
projected to remain consistent with 2025 levels.
STRATEGIC INITIATIVES
Many initiatives in the FY2026 budget directly align with goals established in Housing Catalyst’s
2023–2027 Strategic Plan:
• Culture Training: $85,000 allocated to staff onboarding and training in the four pillars
of Housing Catalyst’s culture: leadership, mindfulness, inclusion and belonging, and
trauma-informed care. This investment supports Housing Catalyst’s Strategic Goal 7:
advancing Housing Catalyst as an employer of choice.
• Camp Catalyst: Housing Catalyst anticipates receiving $20,000 in philanthropic
donations to support the Camp Catalyst summer education program. This initiative
aligns with Strategic Goal 4: enhancing social and economic well-being for residents,
specifically through pathways that enrich education.
• Village on Eastbrook: Housing Catalyst plans to break ground on the Village on
Eastbrook in 2026. The $35.5 million project supports Strategic Goal 2: increasing the
supply of affordable housing in Northern Colorado.
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• Portfolio Repositioning: In 2026, Housing Catalyst plans to sell the remaining two
Villages, Ltd. properties—1st Street and Myrtle—as part of the ongoing restructuring
plan. Estimated sale proceeds of $2 million will be added to the $4.6 million
generated by prior sales in 2025. These proceeds will be leveraged to fund future
development projects. Historically, public housing sales have yielded approximately
4:1 leveraging, providing a critical reinvestment source that advances Strategic Goal 2
by enabling new affordable housing opportunities and greater portfolio efficiency.
• Yardi Systems Optimization: A new Yardi Systems Improvement Specialist position,
funded by Catalyst Funds, has been added for 2026 to accelerate several Yardi
initiatives under one coordinated effort. This work will include launching or
relaunching key modules such as fixed assets, MiQ, Marketplace, and other
efficiency-related tools, while also documenting current workflows, identifying best-
practice process improvements, and implementing automation to improve cross-
departmental collaboration and data accuracy. The position will also support
continued Yardi training, knowledge management, and user adoption across
departments. This initiative supports Strategic Goal 5: enhancing operational
excellence in business operations.
• IT Transition from City-Managed Services: Housing Catalyst’s FY2026 budget includes
increased IT costs associated with the transition away from City-managed network
and infrastructure services. The transition period is expected to include overlapping
or duplicated costs for a limited time as systems and data are migrated to fully
independent platforms. This initiative strengthens IT security, autonomy, and system
integration, advancing Strategic Goal 5: enhancing operational excellence in business
operations.
COST-CENTER LEVEL ASSUMPTIONS
OVERVIEW
Housing Catalyst’s administrative and shared service costs are divided into two allocation tiers
to ensure equity and consistency across all business units.
• Tier 1 Cost Centers (allocated first): Talent Management and Information Technology
(IT)
These are foundational support functions that serve all areas of the organization and
must be allocated to both business units and Tier 2 cost centers before secondary
allocations occur.
• Tier 2 Cost Centers (allocated second): Finance & Accounting, Communications,
Administration, and SGA
These are allocated after Tier 1 costs have been absorbed, distributing expenses only to
business units (Property Operations, Housing Assistance, Resident Services,
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Maintenance, and Development. Note: Site Recapture is excluded from Tier 2
Allocations).
This two-step methodology provides a consistent and transparent allocation of shared service
costs while reflecting actual organizational dependencies.
TIER 1: FOUNDATIONAL COST CENTERS
Talent Management
• Allocation Method: Per FTE
• FY2026 Per-FTE Rate: $7,905
• Allocation Timing: Applied monthly to all departments and Tier 2 cost centers.
• Key Assumptions:
o Includes agency-wide employee development, recruitment, wellness, and HR
systems and continued implementation of new Paylocity HRIS, $40,000.
o $85,000 allocated to agencywide staff onboarding and training which
represents a 12% budget impact on Talent Management.
Information Technology (IT)
• Allocation Method: Per FTE
• FY2026 Per-FTE Rate: $10,550
• Allocation Timing: Applied monthly to all departments and Tier 2 cost centers.
• Key Assumptions:
o Temporary four-month overlap with City IT services estimated at $72,000.
o Implementation/project-management support ($28,000 via HCI).
o Post-transition savings of $12,000 on office phones are expected later in 2026.
o Software licensing costs +3%.
TIER 2: DEPARTMENTAL COST CENTERS
After Tier 1 allocations are applied, Tier 2 cost centers are allocated to business units using
established weighted percentages. These percentages are derived from historical time studies
and forward-looking evaluations of anticipated initiatives and labor distribution. The table
below summarizes the current allocation rates, followed by key “Major Expense Assumptions”
that highlight primary cost drivers for each cost center.
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Allocation % Summary
Cost Center Property Ops
Housing
Assistance
Resident
Services Maintenance Development
32% 14% 10% 4% 40%
Finance & Accounting 53% 15% 8% 11% 13%
Communications 44% 12.5% 11% 3.5% 29%
All percentages remain consistent with FY2025 unless otherwise noted. Inflationary
adjustments are embedded in individual budgets rather than allocation rates.
Major Expense Category Assumptions by Cost Center
G ENE R AL & A D MI NIST R ATI VE (SG&A)
• $21K (25%) decrease due to insurance expenses reclassified to other cost centers.
• Regular 3.2% inflationary adjustments across remaining categories.
F IN AN CE & A CCOU NT ING
• 5% overall increase driven by inflation and expanded consulting support.
• $50,000 budgeted for additional insurance and risk management consulting.
C O MMUN I CAT ION S
• Marketing expenses are down $7,000 (56%) due to reduced vendor reliance.
• Software license fees up 9.2% ($350) for Adobe Creative Cloud and MailChimp.
A D MIN IST R ATI ON
• No significant variances or one-time costs.
• Regular inflationary increases applied across all expense categories.
INTRA -DEPT BILLINGS
Intra-department billings allocate fully burdened labor costs across departments to accurately
reflect the time and resources spent by staff on various projects and functions. This
methodology ensures that labor expenses, including wages, benefits, and overhead, are
proportionately distributed based on departmental activity and usage. The intra-department
billings assumed in the FY2025 budget are as follows:
• Rental Assistance Administrative Support (front desk – Mountain)
o Projecting that 25% of the team member’s time will be attributed to property
management department activities.
o The equivalent annual cost of $23,681 includes fringe benefits and pro-rata
Tier 1 cost allocations.
o The corresponding hourly bill rate is $45.54.
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BUSINESS UNIT LEVEL ASSUMPTIONS
RENTAL ASSISTANCE DEPARTMENT
Revenue Assumptions
V OU CHER M AN AGE ME NT F EE S
• The voucher management fee is a cost recapture mechanism designed to recover the
department’s fully burdened labor, overhead, and administrative costs associated
with program management.
• For budgeting purposes, it is assumed that 100% of departmental costs will be
recovered through a combination of voucher program administrative fees earned
($1.412M) and available admin reserves ($0.453M).
D EPART ME NT O F H OU SING (DOH) M AN AG E MENT F E E S
• It is assumed we will continue to manage 157 DOH vouchers through 2026 earning an
average $83.33 per voucher per month.
Expense Assumptions
A LLO CAT ED C OST C E NTERS (T I ER 2)
This department’s share of Tier 2 allocations will remain consistent with established weighted
averages:
• Administration | SGA: 14%
• Finance & Accounting: 15%
• Communications: 12.5%
L AB OR & S TAFFI NG
• Average caseload per Voucher Specialist: 215 vouchers per staff member, consistent
with the upper range of national benchmarks.
• Increase of +0.20 FTE assumed for FY2026.
T R AINI NG & D EVELOPMENT
• Training budget assumes a targeted, need-based approach, resulting in an estimated
18% reduction from prior year due to fewer specialized training courses being required.
G ENE R AL E XPEN SE T RE ND S
• All other expense categories are assumed to grow at the agency-wide inflationary
rate (3.2%).
• No one-time or extraordinary expenses are assumed for FY2026.
• Account structure has been refined for clarity and consistency in future budget
tracking and reporting.
REAL ESTATE DEVELOPMENT DEPARTMENT
Revenue Assumptions
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E ARNE D D EVELOPER F EE S
• The earned developer and acquisition fees are projected to be $1,265,375 by
December 2026.
• This is a result of 35% of the work for the Village on Eastbrook development being
completed and the remaining 10% of the work for the Villages, Ltd. sales will be
completed.
C O LLE CTED D EV ELOPER F E ES – C ASH B ASI S
• The collected developer fee is projected to be $2,063,260 in 2026. These are the fees
expected to be collected that have been earned in previous years. In 2026 the
collected fees expected are:
o Third ($979,453) and fourth ($358,220) equity installment for Village on
Impala.
o The first ($675,587) equity installment for Village on Eastbrook.
o The remaining disposition fee of $50,000 for the Villages, Ltd repositioning.
Expense Assumptions
A LLO CAT ED C OST C E NTERS (T I ER 2)
This department’s share of Tier 2 allocations will remain consistent with established weighted
averages:
• Administration | SGA Allocation: 40%
• Finance and Accounting Allocation: 13%
• Communications Allocation: 29%
L AB OR & S TAFFI NG
• No changes to staffing levels expected in FY2026.
G ENE R AL E XPEN SE T RE ND S
• All other expense categories are assumed to increase at the agency-wide inflationary
rate of 3.2 percent.
• No one-time or extraordinary expenses are anticipated for FY2026.
PROPERTY MANAGEMENT DEPARTMENT
Revenue Assumptions
M ANAGE MENT F EE R EV ENU E
• Charged to properties at 6–8% of rental revenues, as defined in management
agreements.
• Based on effective gross revenues and expected to remain within current rate ranges.
• Year-over-year growth is driven by new units under management and portfolio rent
increases.
C API TAL A D MI NIST R ATI V E F E E R EVEN UE
• Earned from capital project and reserve management activity.
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• Calculated at 10–15% of capital expenditures per the applicable LPA or management
agreement.
• Projected to be billed in FY2026 at $50,386, on qualifying $406,453 in CapEx.
A CCOUNT IN G F EE R EVE NUE
• Charged to properties at 3–9 percent of rental revenues per management
agreements.
• Generally based on effective gross revenues, minor variations occur by project.
• Increase driven by portfolio growth and rent escalation.
A SSET M AN AG E MENT F EE R EV ENUE
• Applies to the Villages, Ltd. portfolio only.
• Calculated at 1 percent of prior-year asset value using a lookback method to reflect
workload during asset sales and transitions.
• Any future expansion of this fee to other portfolios will be evaluated based on
comparable service levels.
I N SU R AN CE A DMIN IST R AT ION F EE R EV ENUE
• Charged to Villages Ltd., portfolio for centralized insurance administration.
• Calculated at 10 percent of total insurance premiums for property, general liability,
and related coverage.
• Covers program management, renewals, compliance, and claims handling.
C O MPLI AN CE S ERVI CE S R EV ENUE
• Charged to all managed properties to recover costs of monitoring and maintaining
regulatory compliance (LIHTC, HUD, and other housing program rules).
• Calculated using a cost-recapture approach, distributed by unit count.
• FY2026 rate projected at $101.76 PUPA based on 1,175 active units.
Expense Assumptions
A LLO CAT ED C OST C E NTERS (T I ER 2)
• Administration | SGA: 32%
• Finance and Accounting: 53%
• Communications: 44%
L AB OR & S TAFFI NG
• No changes to staffing levels expected in FY2026.
T R AINI NG AND D EV ELOPMENT
• Training expenses are projected to decrease by 19% due to reduced need for
specialized professional development.
O THE R E XPE N SE T REN D S
• Consultant and service line items reduced by $25,000 based on FY2025 eliminations.
• All remaining expense categories assumed to follow the agency-wide inflationary rate
of 3.2 %.
• No one-time or extraordinary expenses are anticipated for FY2026.
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MAINTENANCE DEPARTMENT
Maintenance Department Reorganization
A maintenance modernization initiative will be implemented in the FY2026 budget year to
strengthen property operations and align with industry’s best practices. Affordable housing
benchmarks, including LIHTC standards, recommend maintaining a staffing ratio of one
maintenance technician per 100 units. The FY2026 budget achieves this benchmark through
adjustments in staffing mix, workflow efficiencies, and role alignment.
Revenue Assumptions
The 2026 budget for maintenance fees is based on several billing types, each reflecting
adjustments for labor costs, market conditions, and historical trends. The following outlines the
key components and assumptions driving these fees:
W OR K O R DER R EV ENUE
• Represents the hourly billing rate for work orders and is set at $72.50 per hour,
reflecting a 14.7% decrease over the previous year’s rate of $85.
o This decrease is due to the Agency granting Catalyst Funds to offset the
equivalent of 1 field supervisor position during the maintenance
modernization period.
• The rate remains competitive within the local market and supports full cost recovery.
• Billable hours are based on historical service levels and projected demands.
P R EVENTATI VE M AI NTE N AN CE C ONT R ACTS (PMM)
• Fixed-rate contracts utilize an hourly equivalent of $72.50 for anticipated recurring
services.
• Hours decreased 47% ($254,678) compared to past estimates to align with recent
activity and scheduling efficiencies.
• Adjusted to reflect proactive maintenance strategies and reduced need for vendor
support.
P ROJE CT M AN AGE ME NT F EE (PJ)
• Average fee of 16.8% applies to capital improvement projects where on-site project
management is required to coordinate vendors and manage technicians.
• Total projected revenue of $114k based on $677,934 in planned capital
improvements requiring PJ oversight.
U N IT T UR N R EVENU E
• Projected total of 194 unit turnovers across the entire real estate portfolio at an
average of 12 hours per unit.
• Billing rate of $72.50/hour produces total projected revenue of $168,780.
• Reflects historical turnover and expected volume across managed properties.
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T ECHN I CI AN H OUR D I STRI BUTI ON B Y R EVE NUE T Y PE
Revenue Type
Billable Non-Billable Billable
12,716 4,116 16,832 68.1 %
3,396 1,100 4,496 18.2 %
Unit Turns
Project Management
Total 18,656 6,039 24,695 100 %
T ECHN I CI AN W OR K E FF ICIE N CY A SSU MPT ION S
The goal is to maximize billable hours and minimize downtime through improved deployment,
scheduling, and on-site readiness. Efficiency improvements will be achieved by:
• Having technicians start their day at assigned properties rather than the main office.
• Eliminating the two-technician system where not operationally necessary.
• Streamlining morning check-ins and communication processes to reduce non-
productive time.
• Establishing on-site inventory at larger or more remote properties to minimize travel
for supplies.
• Grouping technician assignments by property location to reduce travel time.
• Scheduling routine maintenance on designated service days to improve planning and
consistency.
• Reducing reliance on external vendors as in-house technician coverage expands.
The following table outlines billable and non-billable assumptions by technician role type.
Role Type FTE
Non-
Billable Billable Billable Billable Billable Annual
2 50.0% 50.0% 2,080 2,080 1,040 4,160
2 25.9% 74.1% 3,083 1,077 1,541 4,160
8 20.3% 79.7% 13,262 3,378 1,658 16,640
12 — — 18,425 6,535 — 24,960
Expense Assumptions
A LLO CAT ED C OST C E NTERS (T I ER 2)
• Administration | SGA: 4%
• Finance and Accounting: 11%
• Communications: 3.5%
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F IN AL S TAFF IN G A SSU MPT IO N S
• Decrease of -1.00 FTE assumed for FY2026.
• Total positions: 13
o 10 Technicians (including 2 skilled-level and 8 unskilled)
o 2 Field Supervisors
o 1 Maintenance Manager
• Coverage includes 1,175 units (reducing to 1,146 units once Villages, Ltd. units are
offloaded), resulting in an average staffing ratio of approximately 1 technician per
115–118 units.
• The team also services three Housing Catalyst facilities and provides maintenance
oversight for vacant land holdings (Mason Parking Lot and Eastbrook Lot)
T R AINI NG AND D EV ELOPMENT
• Training expenses are projected to decrease 58% due to fewer staff members
requiring specialized development.
• Focus shifts toward targeted, role-specific training consistent with operational needs.
O THE R E XPE N SE T REN D S
• Maintenance on-call costs are projected to decrease by $13,420 due to
implementation of the Indatus phone service, now budgeted at the property level.
• Vehicle costs are projected to increase by $12,180 due to higher repair and
maintenance needs for the aging fleet.
• All remaining expense categories are assumed to increase at the agency-wide
inflationary rate of 3.2%, with no extraordinary or one-time expenses anticipated.
RESIDENT SERVICES DEPARTMENT
Revenue Assumptions
RS P ROG R AM F EE S
Non-PSH: Beginning in FY2026, the Resident Services program for non-PSH properties will focus
on providing services tailored to the specific needs of just 2 properties and discontinue services
at all remaining properties.
• Staff will be billed 75% to Richmond and 25% to Horsetooth to reflect projected
service demand.
• Two FTEs are budgeted for the Affordable Resident Services program:
o One FTE is billed directly to the above properties.
o One FTE is temporarily funded by Catalyst Funds pending a 2025 evaluation of
long-term need, deployment, and funding strategy.
o Following that analysis, a determination will be made whether the position
remains and, if so, how costs will be distributed among properties.
PSH: A 100% cost recapture model is employed for all costs not covered by grants or other
sources. This means that all costs associated with delivering services to these properties are
fully recovered through the fees charged. This model ensures that the expense of providing
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critical resident services is directly offset by the revenue generated, maintaining financial
sustainability while meeting the needs of PSH residents.
• The program fees include a portion funded from the Voucher Enhancement Fund (VE
Fund) in the following amounts:
o Mason Place $80,000
o Redtail Ponds $20,000
If the project is able to sustain payment of program fees without VE
funds then those funds will be deployed elsewhere.
RS C LINI CAL B I LLING R EV ENU E
• The department anticipates expanding billing under Supportive Housing Support
(Type 89 Medicaid) through contracts with the Colorado Department of Housing.
• FY2026 represents the first full year of potential reimbursement, although current
rates remain unconfirmed and are therefore excluded from revenue projections.
• Medicaid billing for mental health services within PSH communities will continue.
While reimbursement remains modest, future state-level adjustments may increase
recoverable amounts.
G R ANT R EV ENUE
Federal, State and County Grants
Projecting $887,626 in federal, state and county grants that will be secured to support resident
services programs. (Family Self Sufficiency, Continuum of Care-MP, & Continuum of Care-RTP)
• Grantor: Family Self Sufficiency, Department of Housing and Urban Development
o Program: JumpStart
Awarded: $265,062
Budget Year Earned: $265,062
Grant Cycle: 1/1/2026 - 12/31/2026
• Grantor: Continuum of Care, Department of Housing and Urban Development
o Program: Supportive Services for PSH residents – Redtail Ponds
Awarded: $412,392.00
Budget Year Earned: $338,452 + $73,940
Grant Cycle: 11/1/25 - 10/31/26
Note: We will apply for continued funding in 2026 to cover dates from
11/01/26 to 10/31/2027. We anticipate modest 3% inflated funding.
o Program: Supportive Services for PSH – Mason Place
Awarded: $109,893
Budget Year Earned: $36,854 + $73,318
Grant Cycle: 11/1/25 - 10/31/26
Note: We will apply for continued funding in 2026 to cover dates from
11/01/26 to 10/31/2027. We anticipate modest 3% inflated funding.
• Grantor: Larimer County Behavioral Grant
o Program: Supportive Services for PSH residents – Redtail Ponds (50%)
o Program: Supportive Services for PSH – Mason Place (50%)
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Awarded: $100,000
Budget Year Earned: $70,261 + $29,739
Grant Cycle: 10/1/25 - 09/30/26
Note: We will apply for continued funding in 2026 to cover dates from
10/01/26 to 09/30/2027. We anticipate flat funding.
Philanthropic Grants
• Grantor: Bohemian Fund, Bohemian Foundation
o Program: Camp Catalyst
Anticipated Award: $16,800
Budget Year Earned: $16,800
Grant Cycle: 06/01/26 – 08/31/26
Note: Camp Catalyst has been awarded funding from Bohemian
Foundation annually since 2022. We anticipate we will continue to
receive funding based on reported outcomes and alignment with
grantor’s funding goals.
• Grantor: FNBO
o Program: Affordable
Anticipated Award: $10,000
Budget Year Earned: $6,664
Grant Cycle: 09/01/25 – 08/31/26
Note: Will offset programming costs.
Expense Assumptions:
A LLO CAT ED C OST C E NTERS (T I ER 2)
• Administration: 10%
• Finance and Accounting: 8%
• Communications: 11%
T R AINI NG AND D EV ELOPMENT
• Training and travel expenses are projected to increase from $16,247 in 2025 to
$19,707 in 2026 (approximately 21%).
• The department will continue emphasizing free and low-cost training options where
possible.
• The 2026 budget includes a 50-person license ($2,700) for the Homeless Training
Institute, providing trauma-informed training applicable across multiple Housing
Catalyst teams, including Property Management, Maintenance, and Rental
Assistance.
o While designed for homeless service providers, the content is broadly relevant
to supporting residents who have experienced trauma and promoting housing
stability.
O THE R E XPE N SE T REN D S
• The specialty case-management software currently used for Affordable programs is
expected to be discontinued, generating estimated annual savings of $2,500. The
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department anticipates transitioning Affordable programs to Yardi Case
Management; specific costs are not yet known.
• Programming expenditures were $49,002 in 2025 and are budgeted at $7,400 for
2026, reflecting a significant reduction in programming initiatives.
• Higher external service costs in 2026 correspond to transfer of all costs to show in
department with anticipated full cost recovery through combination of Continuum of
Care (CoC) grant and property pay for any residual.
• All other departmental expenses are assumed to increase at the agency-wide
inflationary rate of 3.2%, with no extraordinary or one-time costs expected.
CATALYST FUNDS
Revenue Assumptions
B ON D I SSUAN CE F EES
• For the Village on Eastbrook project, Housing Catalyst is projecting to collect a bond
issuance fee of $323,934 in June 2026.
• Additionally Housing Catalyst will be the bond issuer for Windtrail Apartments, which
will be developed, owned and operated by CARE Communities. In February 2026
Housing Catalyst is projecting to collect $100,000. This amount is subject to change
based on the amount of bonds issued.
B ON D M AINT EN AN CE AND S PE CI AL L I MITE D P ARTN ERSHI P (SLP) F E E S
Housing Catalyst will continue to receive on going fees from bonds issued and for participation
as an SLP. Projects currently budgeted to pay a reoccurring bond monitoring fee include:
• Heartside Hill (Developer: CARE Communities) $7,200
• Northfield Commons (Developer: Mercy Housing) $0 - Researching
• Swallow Road Apartments (Partnership with CARE Housing) $0 – Researching
Expense Assumptions
C ATALYST F UND S I SSUE D
• Maintenance Department – Field Supervisor: $145,000
• IT Cost Center – Yardi Implementation Specialist: $ 124,000
• Resident Services Department – Affordable Specialist: $100,000
GENERAL FUND
Revenue Assumptions
C AM E STI MAT E
Represents the gross anticipated cost recapture for common area expenses at Oak140 multiuse
building. Starting in 2026 recording gross amount for both expense and pro-rata recapture.
I NTER EST I N CO ME
Earned rates are expected to lower to 3.5% for balances over $1M.
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O THE R F E E S
The agency collects Administrative Overhead fees from the Villages, Ltd., calculated at 5% of
revenues. Additionally, board admin fees are billed to both Village, Ltd. and Wellington totaling
$48,000 and $25,000 respectively.
Expense Assumptions
O THE R E XPE N SE T REN D S
• Insurance increased by over $75k due to moving coverages from cost centers and
additional coverage on Mason Parking Lot and Eastbrook land, both included in the
general fund grouping for ease of reporting.
• All remaining expense categories are assumed to increase at the agency-wide
inflationary rate of 3.2%, with no extraordinary or one-time expenses anticipated.
VOUCHER PROGRAMS
Voucher programs will aim to stay within the HUD-approved annual budget authority (ABA),
Restricted Net Position (RNP), and program reserves while ensuring that the authorized unit
baseline is not exceeded during the calendar year.
KEY MONITORING TOOLS
• HUD's Two-Year Tool (TYT): Used to track leasing success rates, turnover rates, and
per-unit cost (PUC) of vouchers.
• Fair Market Rent (FMR) and Payment Standards: Payment standards are projected
to remain between 90-110% of FMR, with adjustments necessary to keep pace with
the rental market.
ECONOMIC ASSUMPTIONS
• Utility Allowances: A utility allowance study is expected to impact program budgets
in 2026.
• Rent Trends: Continued rent growth in Larimer County will increase HAP costs and
influence leasing potential.
Revenue Assumptions
H OU SING A SSISTANCE P AY ME NTS (HAP) F U ND IN G
• Program funding is appropriated annually by Congress and determined through
HUD’s renewal process using validated leasing and cost data from the Voucher
Management System (VMS).
• For FY2026, Housing Catalyst assumes a 93% proration of eligible HAP renewal
funding, consistent with the Senate proposal and aligned with NAHRO’s projections.
o The House proposal assumes a 90% proration.
• This represents an estimated reduction of approximately $1.46 million compared to
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full (100%) funding of 2025 eligible expenses.
• Revenue projections also include six months of VASH funding carried forward from
the FY2025 award.
A D MIN IST R ATI VE F EE S
• Administrative fee revenue is based on the number of vouchers leased and the per-
voucher administrative fee rates established by HUD.
• For FY2026, the model assumes 1,615 vouchers administered directly by Housing
Catalyst, excluding 157 Department of Housing (DOH)–issued vouchers.
• Administrative fees are calculated using HUD’s two-tier rate structure:
o $104.19 per voucher for the first 600 vouchers.
o $97.25 per voucher for all remaining vouchers.
• The resulting base administrative fee eligibility is adjusted for funding proration.
• For FY2026, a proration rate of 84% (Senate projection) is assumed, compared to 90%
in 2025.
o The House proposal of 57% proration serves as a low-end sensitivity case for
stress testing.
• Under these assumptions, total administrative fees are projected to decline from
2025 levels and will remain insufficient to fully fund program delivery costs resulting
in reliance of reserves to fund voucher management expense.
Expense Assumptions
H OU SING A SSISTANCE P AY ME NTS (HAP)
• Per-unit costs (PUC) are projected to increase 3% in 2026, based on softening market
and consistent with the 2.93% rise in HUD’s Fair Market Rent (FMR) for two-bedroom
units from 2024 to 2025.
• Payment standards are set between 92% and 107% of 2025 FMR. No adjustments are
currently planned for 2026; however, revisions may be required if:
o HUD mandates realignment within the 90%–110% range of current FMRs, or
o Local market rents rise faster than anticipated.
• The number of vouchers under the Annual Contributions Contract (ACC) is projected
to remain at 1,747. Whereas, actual leasing (ACA basis) is estimated at approximately
1,615 vouchers, reflecting funding constraints and natural attrition.
o Funding for the 22 Emergency Housing Vouchers (EHV) included in the ACC is
scheduled to end by the close of 2026.
• Tenant contributions are projected to increase 6% in 2025 due to inflation and
income growth. For 2026, a proposed Moving to Work (MTW) activity may increase
the tenant rent share from 30% to 35% of adjusted income, subject to HUD approval.
Utilization Rate
• Leasing utilization is projected to range between 74% and 84.5%, ensuring that
Housing Assistance Payment funds are fully utilized but not over-obligated.
• A 7.8% reduction in supportable vouchers (about 132 households) is anticipated for
2026 based on current funding assumptions.
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o This projection accounts for both funding constraints and natural attrition
(vouchers that turn over as families exit the program).
DEVELOPMENT DEPARTMENT ACTIVITIES
PROJECT PLANNING AND DEVELOPMENT
Project Initiation
In alignment with Housing Catalyst's strategic goal of expanding affordable housing, the
department plans to initiate the construction of Village on Eastbrook in 2026. This development
has an estimated total budget of $35.5 million and will play a crucial role in meeting the
growing housing needs of the community.
Project Timelines
The Village on Eastbrook is expected to follow a 12-month construction timeline, with project
completion anticipated in Q3 of 2027. This timeline is informed by standard construction
schedules and the project’s proforma, reflecting prior development experiences to ensure
timely delivery and stabilization.
Revenue and Funding
L O CAL G R ANTS
The project will benefit from $884,632 in Community Development Block Grant (CDBG) funds
and $615,368 in HOME funds awarded by the City of Fort Collins. The CDBG funds will pass
through Housing Catalyst as revenue and become soft debt for the project, while the HOME
funds will be directly loaned to the project without passing through Housing Catalyst. These
amounts are based on the actual grants awarded by the city.
P RI VATE F IN AN CIN G
To ensure the successful financing of the Village on Eastbrook project, Housing Catalyst plans to
secure a combination of private financing sources. These include:
• First Position Debt: $7,620,000 in General Revenue Bonds.
• Second Position Debt: $1,292,000 in Housing Catalyst Land Note.
• Third Position Debt: $798,000 in Housing Catalyst Acquisition Basis Note.
• Fourth Position Debt: $884,632 in CDBG Housing Catalyst Note.
• Fifth Position Debt: $615,368 HOME Funds Note.
• Sixth Position Debt: $3,450,000 Villages Ltd. equity. This figure may be adjusted if
additional funding sources are identified.
• Additionally, the project will leverage a Deferred Developer Fee of $1,220,543.
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T AX C R ED IT E QUI T Y AN D I N CENTI V E S
A total of $18,714,141 in Tax Credits will be utilized to finance this development project. This
assumption is based on the project’s proforma, ensuring sufficient tax credit equity to meet
development costs.
S PE C I AL L IMITE D P ARTN ERSH I P (SLP ) F EE S AND S ALE S P RO CE ED S
The Development Department is a key participant in negotiating agreements with other
developers that would like to partner with Housing Catalyst. These partnerships are strategic
and carefully considered as they offer the properties tax exemption. Since tax exemption is a
large financial benefit for the projects, the partnerships generate a fee for Housing Catalyst.
These fees are then used for future developments. The following list outlines the SLP fees
Housing Catalyst anticipates collecting.
• The Grove in Bloom (Developer: Pedcor): $1,500,000 September 2025 (second
installment will be $500,000 July 2027)
• 302 Conifer (Developer: Szanton Co.): $110,000 September 2025
• Windtrail Apartments (Developer: CARE Communities): $85,000 February 2026
• Switchgrass Crossing (Developer: VOA): $50,000 March 2026
Over the last year and through 2026 the Development Department worked across departments
to both identify and sell properties. This repositioning of assets will help Housing Catalyst build
more efficient properties to better serve our residents. The following list outlines the sale
proceeds Housing Catalyst anticipates collecting.
• Villages Sales: $4,611,749
• Villages Sales: 1st Street: $500,000 June 2026
• Villages Sales: Myrtle: $1,556,250 September 2026
• Mason Parking Lot: $650,000 March 2026
D EF ERR ED D EV ELO PER F E E
Most of the developments Housing Catalyst produces incorporate a degree of financial
participation through the inclusion of a deferred developer fee. This deferred fee is considered
a cash flow note and is paid back to the development department annually based on cash flow
availability from each property. The outstanding fees are monitored annually by both Financial
Services and Development. The following is the list of properties and their outstanding balances
that we track.
• Village on Impala: $1,708,150.86 (not including the remainder of the fees earned this
year)
• Oak 140: $470,872.00
• Mason Place: $620,743.00
• Village on Horsetooth: $376,734.21
• Village on Shields: $3,899,630.09
• Village on Plum: $118,427.59
• Village on Redwood: $199,392.89
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REAL ESTATE PORTFOLIOS
PORTFOLIO ASSUMPTIONS
Housing Catalyst’s real estate portfolio includes a diverse mix of affordable housing
communities, ranging from Low-Income Housing Tax Credit (LIHTC) properties to Permanent
Supportive Housing (PSH) and mixed-income developments. As of the start of 2026, the
portfolio consists of 22 properties totaling 1,175 units. The portfolio reflects our mission to
create vibrant, sustainable communities throughout Northern Colorado.
Each property is managed with an emphasis on long-term financial sustainability, regulatory
compliance, and resident well-being. The assumptions in this report incorporate market trends,
regulatory considerations, and property-level performance to remain aligned with Housing
Catalyst’s strategic goals. Capital reserves are carefully maintained to support both ongoing
maintenance and major improvements, while fee structures are designed to sustain daily
operations and provide strong oversight across the portfolio
Repositioned Portfolio
As part of Housing Catalyst’s strategy to strengthen financial performance and refocus
resources, several properties were sold in 2025, with the final two dispositions within the
Villages, Ltd. portfolio scheduled for 2026. This marks the completion of a multi-year effort to
transition away from smaller, scattered-site assets and concentrate on larger, more sustainable
affordable housing communities that deliver greater long-term impact.
The remaining properties slated for sale in 2026 are Myrtle (16 units) and First Street (13 units)
with combined proceeds estimated at $2.28M. Both sites have been fully vacated, and all
residents received relocation assistance. Proceeds from the sales are expected to offset any
vacancy-related income loss. Asset management fees payable to Housing Catalyst will continue
through year-end to reflect ongoing closeout and administrative activities.
Completion of these final sales will conclude the agency’s repositioning initiative and align the
portfolio with Housing Catalyst’s long-term mission of operational efficiency, financial
sustainability, and community-scale impact.
OPERATIONAL ASSUMPTIONS
Rental Revenues
G ROSS P OTENT I AL R E NT
Housing Catalyst manages properties under multiple programs such as Low-Income Housing Tax
Credit (LIHTC), Colorado Housing and Finance Authority (CHFA), Rental Assistance
Demonstration (RAD), Project-Based Vouchers (PBV), and independent resident vouchers.
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Therefore, Gross Potential Rent (GPR) is calculated based on the unique rent limits, payment
standards, and regulatory restrictions associated with each program.
LIHTC:
GPR is determined using rent limits based on area median income (AMI) set annually by the
Department of Housing and Urban Development (HUD). The maximum allowable rent for LIHTC
units is capped based on tenant income levels. Properties using the LIHTC program must ensure
rent does not exceed these limits.
CHFA:
For properties under CHFA, rent is typically capped based on guidelines similar to LIHTC
programs. CHFA also relies on HUD’s AMI calculations to set rent caps for tax credit-financed
properties.
RAD:
GPR for RAD units is based on the rent equivalent to what was paid under public housing. RAD
transitions maintain tenant rent increases under HUD’s guidelines, usually set at 30% of the
tenant’s adjusted income or voucher payment standards. Budget uses assumption of existing
rental rate plus a conservative 2% inflationary factor for 2026.
Project-Based Vouchers (PBV):
For units subsidized through PBVs, GPR is set to a percentage of FMR. The assumptions in the
budget are as follows:
PROPERTY
CONTRACT
$ INCREASE % INC
Mason Place 1/1/2026 100% Small Area $96,029 10.2%
Redtail Ponds 3/1/2026 100% Small Area $63,783 10.4%
Horsetooth 8/1/2026 100% Standard $40,635 9.5%
Cowan 8/1/2025 80% Standard $6,804 37.5%
Wellington 9/1/2025 85% Standard $364 0.1%
Plum 11/1/2024 105% Standard $15,804 3.5%
12/1/2024 65% Standard $-0- 0.0%
Plum Place 3/1/2025 100% Standard $15,394 7.5%
Independent Resident Vouchers
GPR for tenants with independent (Housing Choice) vouchers are set at the payment standard
set by Housing Catalyst. The payment standard is set at 100% of Fair Market Rent (FMR) and re-
evaluated annually.
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Projected GPR for 2026 is assumed to increase in aggregate by an average of 5%, reflecting
adjustments due to inflation and rising payment standards across the programs.
L OSS OR G AIN TO LEASE
During 2025, several properties did not adjust rents fully in line with market trends, resulting in
a widening gap between tenant-paid rents and Gross Potential Rent (GPR). This gap increased
loss-to-lease and reduced the agency’s ability to capture available market rent growth.
• For 2026, new lease rents are budgeted at the maximum allowable levels under CHFA
program restrictions. Renewal rents are modeled with a 5% increase to resident
portions, with ongoing monitoring throughout the year. If market conditions remain
favorable, renewal increases may be adjusted above 5% where permissible to
gradually reduce the loss-to-lease gap over time.
• This approach maintains compliance with regulatory limits while aligning rents more
closely with market conditions, supporting stronger rent performance without
compromising resident stability or occupancy goals.
O THE R T E N ANT I N COME
• Other Tenant Income has been removed from the 2026 budget due to the
unpredictable nature of these revenues.
• While certain charges are billed back to residents, they are inconsistent and difficult
to project accurately.
Occupancy Rates
LIHTC & Affordable properties generally experience high occupancy due to affordability and
demand stability. For the FY2026 budget, occupancy rates have been projected based on
historical trends, property-specific performance, and market demand. The assumptions are as
follows:
• Permanent Supportive Housing (PSH): We have estimated an average occupancy
rate of 97% for our PSH properties, reflecting historically high demand and stability
within these supportive housing units.
• Standard Properties: A general occupancy assumption between 96%-99% is applied
across the portfolio for non-PSH properties. This is based on stable occupancy rates in
prior years and the continued demand for affordable housing in the region.
These assumptions are aligned with market conditions and operational trends within affordable
housing, ensuring that projections are both conservative and achievable. The specific
assumption by property is as follows:
Redtail Ponds-3%
Mason Place-3%
First Street-100%
Myrtle-100%
Cunningham-4%
Richmond-3%
Windmill-3%
Oak 140-3%
Village on Horsetooth-4%
Village on Impala-3%
Village on Redwood-3%
Village on Plum-3%
Village on Stanford-4%
Village on Matuka-1%
Village on Leisure-1%
Plum Place-1%
Remington Row-3%
Village on Bryan-2%
Village on Cowan-3%
Village on Elizabeth-3%
Stanford 6-1%
Wellington-4%
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Rent Collection Rates
For the FY2026 budget, the rent collection rate assumptions reflect historical performance,
tenant demographics, and external market conditions. Additionally, we are utilizing the
allowance for doubtful accounts methodology that provides more stabilized results.
O V E R ALL C O LLE CT IO N R AT E
The overall net potential rent collection rate is projected to be 97.4% for FY2026, representing
strong tenant payment practices. This projection is in line with historical performance, which
has typically ranged between 95-98% across most properties.
A LLOWAN CE FOR D OUBT FU L A CCOUN TS
For FY2026, Housing Catalyst will continue to follow the methodology established in FY2025 for
the allowance for doubtful accounts. This approach uses a two-year historical average of actual
collection rates, resulting in a portfolio average of 2.6%. Individual property rates, ranging from
0.5% to 4.8%, are maintained to reflect each property’s specific risk profile and collection
history.
Turnover Rates
Tenant turnover rates for affordable housing properties typically range from 15% to 30%,
depending on various factors like location, tenant demographics, and property management
practices. For example, affordable housing, including Low-Income Housing Tax Credit (LIHTC)
properties, often experiences lower turnover compared to market-rate apartments due to rent
stability and the critical nature of affordable housing availability (National Apartment
Association, 2023).
Tenant turnover is estimated at 21.27% annually, based on historical trends and current tenant
demographics. This reflects a moderate turnover rate that aligns with the natural ebb and flow
of occupancy typically seen in affordable housing properties.
Administrative
Several administrative categories are expected to see changes in FY2025.
• Legal: Tenant Screening has been increased to screen each resident at renewal,
$25.00 is the rate for criminal background screening.
• Security Services: Increased pilot remote security monitoring. Depending on results,
we may be able to reduce or eliminate physical security services at some sites.
• Audit and Tax: Cost of audit and tax preparation by the CPA firm, Eide Bailly, is
determined based on engagement letters plus a 5% increase.
• Insurance: budgeted to increase an aggregate of 23.3% due to market increases as
well as 2024 statement of value increases
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Page 29 of 32
Maintenance and Repairs
The 2026 maintenance and repair assumptions focus on enhancing operational efficiency and
improving customer service at the property level. By eliminating four administrative positions
and reallocating those resources to on-site maintenance teams, the department will strengthen
service delivery, increase responsiveness, and improve overall maintenance performance.
Vacancy Unit Turns Expense: In 2026, 50% of vacancy unit turn work will be completed in-
house. This approach allows the department to capture additional revenue through billable
hours while reducing reliance on third-party vendors.
It is the department’s goal to have all technicians trained and capable of completing full unit
turns in-house by the end of 2026, with only specialty items (e.g., flooring, major appliance
replacement, or high-skill trades) outsourced to external vendors.
• Efficiency Initiatives: Measures such as property-specific assignments, optimized
routing, and direct site reporting will continue to improve efficiency. Under the new
staffing model, each technician will be assigned an average of 80–125 units, ensuring
balanced workloads and stronger property-level coverage.
• Preventative Maintenance Contracts: These contracts will decrease by 47%, driven
by more accurate tracking of logged labor hours, aligning service costs with actual
labor usage.
Compliance and Reporting
No changes are anticipated in 2026. Compliance and reporting obligations will continue to be
managed by one FTE, with associated costs allocated across both the LIHTC and Non-LIHTC
portfolios on a PUPA rate of $101.76.
Utility Expenses
Utility costs are expected to rise by an average of 7%, (6.7% Electric/ 6.5% Water and 8.0% Gas)
far exceeding general inflation. Rising energy costs and usage patterns inform this assumption.
CAPITAL EXPENDITURE ASSUMPTIONS
Budgeted at $1,305,771 for replacements, enhancement projects and new investments across
the portfolios with the following breakdown:
• LIHTC Portfolio: Projected at $703,041 based on historical spending patterns, capital
needs assessments, and scheduled maintenance activities.
• Villages, Ltd. Portfolio: Estimated at $500,133 based on historical spending patterns,
capital needs assessments, and scheduled maintenance activities.
• Wellington Portfolio: Estimated at $31,598 based on historical spending patterns,
capital needs assessments, and scheduled maintenance activities.
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Page 30 of 32
• Housing Catalyst: Estimated at $71,000 to fund needs for servers, switches, user
laptops and other hardware.
Associated Fee Costs
Capital expenditures in Housing Catalyst's budget include fees that are added to the base
project costs to account for necessary administrative oversight and project management
services. These fees include both a Project Management Fee charged by the Maintenance
Department and a Capital Management Fee, as permitted by the Limited Partnership
Agreement (LPA) or management agreements to reimburse property management.
• Project Management Fee: The Maintenance Department is expecting to charge an
average of 16.9% of the total planned capital projects for project management
services on $677,934 of the total planned projects. This is variable based upon project
time commitments.
• Capital Management Fee: The Capital Management Fee typically ranges from 10-15%
and compensates the property management team for its role in administrating
capital improvements, monitoring long-term asset performance, and aligning projects
with Housing Catalyst’s strategic goals. The fee is expected to total $50,386 on
$311,895 of eligible planned projects.
Capital Reserve Assumptions
Capital reserves are maintained to cover large-scale repairs, replacements, and unexpected
expenditures across the property portfolio, ensuring the long-term sustainability of assets. For
the FY2026 budget, the reserve funding assumptions are based on property-specific
requirements, historical and forecasted spending patterns.
• LIHTC: Contributions to capital reserve accounts within this portfolio are guided by
LPA agreements, with each property allocating annual amounts based on unit counts
and projected capital needs.
• Non-LIHTC properties: Contributions to capital reserve accounts are guided by
historical and forecasted needs. Reserves are expected to be sufficient for all
properties except for Wellington where reserves are expected to fall short by $4,359;
however, this project has sufficient operational cash flows to fund this shortfall and
to increase deposits by $15,000.
Reserves are funded through property net operating income. Additionally, regulatory or lender
requirements set minimum thresholds for reserves, ensuring compliance while maintaining a
buffer for unforeseen expenditures.
Capital reserves are projected to be adequate to meet both current and future property needs,
with specific adjustments for properties that are projected to face shortfalls.
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Page 31 of 32
3-YEAR ROLLING
The assumptions for the 2026 budget and the 3-year rolling forecast are guided by historical
performance, market trends, and strategic goals. Our goal is to maintain consistency and
financial sustainability across all key operational areas, with a cautious approach to growth in
revenue and expenses. Here are the key assumptions applied:
• Revenue Assumptions:
o Gross potential rent is projected to increase by 5.0% annually over the next
two years, reflecting expected inflation and rent escalations across our
portfolio.
o Vacancies, allowances for doubtful accounts, and other rent adjustments have
been modeled in alignment with current year trends. We anticipate similar
vacancy rates for future years based on 2025 budgeted percentages.
o Ancillary income and other tenant fees are held flat, based on recent historical
performance, as we do not foresee significant changes in ancillary service
demand in the near term.
• Operating Expense Assumptions:
o Most operating expenses, including maintenance, legal, and administrative
costs, are forecast to grow by 3.2% annually to reflect inflation and wage
increases.
o Property management expenses have been modeled in alignment with
current year trends or existing fee arrangements.
o Insurance premiums for property, liability, and other coverage categories are
anticipated to increase by 7-10% annually due to rising costs in the insurance
market.
• Labor Costs:
o Salaries, wages, and employee benefits are budgeted to rise by 5% annually to
accommodate market wage adjustments and retain talent within the
organization. This also includes medical insurance, workers’ compensation,
and retirement contributions.
The three-year rolling budget approach is being presented for the first time in this cycle, and
this structure will allow for more strategic planning and forward-looking assessments of our
financial standing. These forecasts are based on conservative estimates, and we anticipate
refining the methodology in subsequent years as more data becomes available.
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Page 32 of 32
CONCLUSION
The FY2026 Budget Assumptions Report establishes the foundation for Housing Catalyst’s
financial planning and operational strategy for the coming year, while also informing the three-
year rolling forecast that supports long-term sustainability. The assumptions presented reflect a
balanced approach, grounded in market analysis, historical performance, and inflationary
outlooks, to maintain financial stability and advance organizational goals.
As economic and regulatory conditions continue to evolve, flexibility remains essential. The
three-year rolling forecast enables proactive planning, allowing adjustments to be made in
response to emerging challenges and opportunities while maintaining alignment with Housing
Catalyst’s mission to create vibrant, sustainable communities throughout Northern Colorado.
Ongoing monitoring of financial performance against these assumptions will ensure that both
short-term operating needs and long-term strategic priorities remain achievable, transparent,
and mission driven.
This report represents the collaborative work of Housing Catalyst’s leadership and budget
managers and has been finalized under the direction of the Chief Financial Officer.
163
PHA Board Resolution
Approving Operating Budget
U.S. Department of Housing and
Urban Development
Office of Public and Indian Housing
OMB Approval No. 2577-0029 (exp. 04/30/2027)
Previous editions are obsolete Form HUD-52574
Public reporting burden for this collection of information is estimated to average 136.2 minutes per response, including the time for reviewing instructions, searching existing data
sources, , gathering, and maintaining the data needed, completing the operating budget and completing and reviewing the collection of information. Send comments regarding this burden
estimate or any other aspect of this collection of information including suggestions for reducing this burden, to the Reports Management Officer, QDAM, Department of Housing and
Urban Development, 451 7th Street, SW, Room 4176, Washington, DC 20410. When providing comments, please refer to OMB Approval No. 2577-0029. This agency may not collect this
information, and you are not required to complete this form, unless it displays a currently valid OMB control number.
This information is required by Section 6(c)(4) of the U.S. Housing Act of 1937. The information is the operating budget for the low-income public housing program and provides a
summary of the proposed and budgeted receipts and expenditures, approval of budgeted receipts and expenditures, and justifica tion of certain specified amounts. HUD reviews the
information to determine if the operating budget adopted by the public housing agency (PHA) and the amounts are reasonable, a nd that the PHA complies with HUD prescribed
procedures. PHA boards must approve the operating budget and HUD requires boards to certify their approval through this form. Responses are required to obtain benefits. This
information does not lend itself to confidentiality.
PHA Name: PHA Code:
PHA Fiscal Year Beginning Board Resolution Number:
Acting on behalf of the Board of Commissioners of the above-named PHA as its Chairperson, I make the following
certifications and agreement to the Department of Housing and Urban Development (HUD) regarding the Board’s
approval of (check one or more as applicable):
DATE
Operating Budget approved by Board resolution on:
Operating Budget submitted to HUD, if applicable, on:
Operating Budget revision approved by Board resolution on:
Operating Budget revision submitted to HUD, if applicable, on:
I certify on behalf of the above-named PHA that:
1. All statutory and regulatory requirements have been met;
2. The PHA has sufficient operating reserves to meet the working capital needs of its developments;
3. Proposed budget expenditure are necessary in the efficient and economical operation of the housing for the purpose of
serving low-income residents;
4. The budget indicates a source of funds adequate to cover all proposed expenditures;
5. The PHA will comply with the wage rate requirement under 24 CFR 968.110(c) and (f); and
6. The PHA will comply with the requirements for access to records and audits under 24 CFR 968.110(i).
I/We, the undersigned, certify under penalty of perjury that the information provided above is true and correct.
WARNING: Anyone who knowingly submits a false claim or makes a false statement is subject to criminal and/or civil
penalties, including confinement for up to 5 years, fines, and civil and administrative penalties. (18 U.S.C. §§ 287, 1001,
1010, 1012; 31 U.S.C. §3729, 3802).
Print Board Chairperson’s Name: Signature: Date:
Housing Catalyst | Fort Collins Housing Authority
January 1, 2026 HC-VIL-2025-10-01
October 16, 2025
Lizette Mill
CO041
164
JOINT RESOLUTION NO. HC-VIL-2025-10-01
OF THE BOARD OF COMMISSIONERS OF HOUSING CATALYST
AND THE BOARD OF DIRECTORS OF VILLAGES, LTD.
WHEREAS, Housing Catalyst and Villages, Ltd. have each prepared and reviewed their
respective operating and capital budgets for the fiscal year beginning January 1, 2026,
and ending December 31, 2026; and
WHEREAS, said budgets were developed in accordance with applicable federal
regulations, Housing Catalyst’s financial policies, and the 2026 Budget Assumptions
Report; and
WHEREAS, the Board of Commissioners of Housing Catalyst is required by the U.S.
Department of Housing and Urban Development (HUD) to approve and adopt the
annual budget as submitted on Form HUD-52574, Operating Budget, in order to meet
HUD program requirements; and
WHEREAS, the Board of Directors of Villages, Ltd. has also reviewed and determined
that adoption of the proposed budget for Villages, Ltd. is in the best interest of the
organization and the communities it serves;
NOW, THEREFORE, BE IT RESOLVED by the Board of Commissioners of Housing
Catalyst that:
1. The FY2026 Operating and Capital Budgets for Housing Catalyst and its affiliated
entities are hereby approved and adopted; and
2. The submission of Form HUD-52574, Operating Budget, and any supporting
schedules or certifications, is hereby authorized and approved; and
3. The Chief Executive Officer or Chief Financial Officer is authorized to execute all
necessary documents on behalf of Housing Catalyst to complete the HUD
budget submission.
BE IT FURTHER RESOLVED by the Board of Directors of Villages, Ltd. that:
1. The FY2026 Operating and Capital Budgets for Villages, Ltd. are hereby
approved and adopted; and
2. The Chief Executive Officer or Chief Financial Officer is authorized to execute all
necessary certifications and documents related to the approved budget.
SIGNATURE PAGE FOLLOWS
165
ADOPTED this 16th day of October, 2025.
HOUSING CATALYST
BY: ___________________________
Lizette Mill, Chairperson
ATTEST: ___________________________
Julie J. Brewen, Secretary
VILLAGES, LTD
BY: ___________________________
Lizette Mill, Chairperson
ATTEST: ___________________________
Julie J. Brewen, Secretary
166
Development 5-Year Project Plans
167
Development Milestones
168
169
Audit & Finance Committee
B O A R D R E P O R T | O C T O B E R 2 0 2 5
170
COMMI TTEE: Audit & Finance Committee
COMMI TTEE CHAIR: Lizette Mill
COMMI TTEE MEMB ER S: Ann Green, Karen Dunbar, Eric Lea, Kyle McPherson
STA FF SPONSOR : Tonya Frammolino, CFO
Main Objectives for the Committee:
The purpose of the Committee is to assist the Board in fulfilling its oversight responsibilities with respect to
Housing Catalyst’s financial transactions, engagement of financial professionals, and the investment of its assets.
This is a summary report on the Committee's work this past month, with any necessary recommendations to the
full board. Attached to this report are the approved committee meeting minutes from the previous meeting
along with any reports approved to be shared with the Board.
Summary of recent activities:
FY2026 Annual Budget – The committee reviewed the 2026 Budget report which provides a comprehensive
overview of Housing Catalyst, Villages, Ltd., Wellington, the LIHTC portfolio, and the voucher programs.
HUD Form 52574 Board Resolution of board approval of the CY budget – The committee reviewed the
HUD-52574 Board Resolution, which documents the Board of Commissioners’ annual approval of the PHA
operating budget, as required by 24 CFR 990.315. The resolution is maintained on file for HUD review each
fiscal year.
Summary of recent accomplishments:
Charter Review & Adherence - The committee reviewed and approved its charter, confirming alignment
with its fiduciary and oversight responsibilities. This included affirming continued adherence to key duties
outlined in the AFC charter and identifying no material changes at this time.
Committee Self Evaluation - Completed the committee’s annual self-assessment using the standard
checklist. The results showed strong participation, alignment with best practices, and commitment to
continuous improvement. No areas of concern were noted, and the committee affirmed its readiness to
meet its obligations in the year ahead.
Upcoming events, discussions, and activities:
Review of LIHTC Losses Compared to Targets; Waterfall and Deferred Developer Fee
Review of Key Financial Relationships and Reserve Planning
Q3 Quarterly Business Update Report (QBU)
S&P Annual Questionnaire Submittal Overview – Informational
Reports and documents available for review in Boardable in the documents folder for
this meeting:
EXHIBIT A: September AFC Approved Meeting Minutes
EXHIBIT B: FY2026 Budget
EXHIBIT C: PH Portal, 52574 Board Resolution of board approval of the CY budget
171
EXHIBIT D: AFC FY2025 Self Assessment Checklist Group - Final
EXHIBIT E: AFC Planning Calendar - October
Action items:
The Audit & Finance Committee hereby recommends that the Housing Catalyst Board of Commissioners take the
following actions:
• The Committee requests Board approval for the 2026 Budget
172
Introduction
1. Audit and Finance Committees play a crucial role in
supporting the effective governance of organizations.
2. An effective Audit and Finance Committee plays a
pivotal role in ensuring that organizations function
according to good governance, apply appropriate
accounting and auditing standards, and adopt
appropriate risk management arrangements. A well
functioning Committee has the ability to:
•understand the role and activities of the Board;
•discuss with the Board policies and attitudes
towards risk and ensure that management act within
these parameters;
•critically challenge and review risk registers to
provide assurance that the arrangements in place
are working within the organization;
•understand the risk management framework and the
respective assignment of responsibilities;
•assume good communications and relationships
with both those it seeks briefings from and those it
provides assurance to; and
•contribute to the delivery of results and add value to
the organization.
Audit and Finance
Committee Effectiveness
3. In line with good practice, Audit and Finance
Committees should assess their effectiveness
annually. A variety of assessment tools exist, from
facilitated workshops to short questionnaires.
Housing Catalyst has adopted this checklist from
HM Treasury’s Audit and Risk Assurance Committee
Handbook, a condensed series of prompts that
Committees can use to help assess their
effectiveness. This checklist can be used as a
standalone exercise to consider effectiveness or in
conjunction with other methods of assessment.
How to use this effectiveness tool
4. This short checklist condenses the core good
practice principles of HM Treasury’s Audit and Risk
Assurance Committee Handbook. Committee
members and other regular attendees should
consider whether the Committee meets the detailed
good practice question – “yes” (or adequately for the
entity), “no”, or “comment”. As well as providing an
opportunity to comment on an issue, the last of these
categories could indicate uncertainty, that there is
room to enhance practice in this area, or that the
practice is not relevant. As an aide, there is also
space to note issues and actions identified at the end
of each section.
5. Audit and Finance Committee members and their
committee secretaries will, of course, need to ensure
that they are familiar with the full requirements of the
Charter, and that they operate in accordance with
them.
Audit and Finance Committee
Effectiveness Checklist
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173
³7KH$XGLWDQG)LQDQFH&RPPLWWHHVKRXOGEHLndependent
andobjective;inadditioneachmembershould haveagood
understandingoftheobjectivesandpriorities ofthe
organizationandoftheirroleasaCommittee member.”
Principle 1
Membership, independence,
objectivity and understanding
Question/Checklist CommentsY/N
1. Have we reviewed the A&FC charter,
and do we comply?
Yes
No
2. Are we satisfied with the range,
frequency and numbers of executives
and other participants attending the
AFC meetings, particularly the Chief
Financial Officer and Director of
Accounting?
Yes
No
4.HaveallcommitteememberssignedWKH
WKH$QQXDO(WKLFDO6WDQGDUGVRI&RQGXFWDQG
&RQIOLFWRI,QWHUHVW3ROLF\
Yes
No
3. Is our relationship and communication
with the staff effective, particularly in
support of the Housing Catalyst Mission
Statement?
Are we
performing
effectively in
this area?
Are there any
actions we
want to take
to build our
effectiveness?
Yes
No
ConclusionConclusion
We have a good sized group, not so large that we
can't be nimble to handle anything that arises.
While non board members were not required to sign in the past,
moving forward all committee members, including non board
members, will be required to do so.
The requirement will be implemented within the year and added
as a file attachment to the Board Report.
Yes
Would like to have a more robust pool of potential outside members out there to ensure we have a
little depth.
A formal induction training plan for new committee members will be developed and added to the
2026 work plan.
Committee is in agreement to add one additional committee member.
174
“The Audit and Finance Committee
should corporately own an appropriate skills
mix to allow it to carry out its overall function.”
Principle 2
Skills
Conclusion
Question/Checklist CommentsY/N
Yes
No
Yes
No
Yes
No
Yes
No
5. Are we satisfied that, collectively,
we have the range of skills needed
to ensure that the Chief Executive
Officer and Board gain the
assurance they need on
governance, risk management, the
control environment and on the
integrity of all elements of the
Annual R eport and Accounts?
6. Do we possess the wider skills
necessary to be fully effective?
8. Do we have effective induction
and training arrangements for new
members and does the AFC Chair
ensure that all members have an
appropriate program of
engagement with the organization
to help build sufficient
understanding?
7. Where we need additional skills are
we empowered to co-opt additional
members or procure specialist
advice?
Are we
performing
effectively in
this area?
Are there any
actions we
want to take
to build our
effectiveness?
Conclusion
- We have a good set of skills amongst the members.
- Ms. Frammolino has given several educational presentations in the past year,
which have been very helpful. As noted in our 2023 and 2024 self-assessments, we
could develop a more formal training and induction process for new members.
- Yes - plus, as stated earlier, we are encouraged to ask questions so that we
understand things as well as possible.
- In 2026, the committee will work to formalize and consolidate all trainings into a
comprehensive onboarding document.
- Commissioner Mill will serve as the designated point of contact for the committee.
Yes
- We could develop a more formal induction and training plan for new members.
- In 2026, the committee will work to formalize and consolidate all trainings into a
comprehensive onboarding document.
175
Principles 3 and 4
The role and scope of
the Committee
Question/Checklist CommentsY/N
Yes
No
9. Do we provide insight and strong,
constructive challenge to the organization
(at the departmental level) where
required?
“The Audit and Finance
Committee should support
the Board and the Chief
Financial Officer by reviewing
the comprehensiveness and
reliability of assurances
on governance, risk
management, the control
environment and the integrity
of financial statements
and the annual report.”
“The scope of the Audit and Finance
Committee’s work should be defined
in its terms of reference and should
encompass all the assurance needs of
the Board and Chief Financial Officer.
Within this the Committee should have
particular engagement with the work of
risk management, the External Auditor
and financial management and
reporting issues.”
10.Do we give sufficient and timely
attention to financial management
and reporting issues, including the
consideration of key acc ounting
policies, estimates and judgements
and the quality of the year-end
financial statements?
Yes
No
11.Do we sufficiently consider and
challenge the work of external audit?Yes
No
Yes
No
12.Do we track all audit recomm endations
and hold the organization to acc ount
for their implementation?
Yes
No
13.Do we regularly review the
organization’s cyber risk management?
Yes
No
14.Do we regularly review our Terms of
Reference and key definitions to ensure
they are comprehensive?
Conclusion
Are we
performing
effectively in
this area?
Are there any
actions we
want to take
to build our
effectiveness?
Audits have continued to be both rigorous and
pristine, and the committee has not needed to
challenge the work of external audit.
Housing Catalyst's cyber risk management falls under the purview
of the City of Fort Collins, which provides Housing Catalyst's IT
infrastructure. As such, the Housing Catalyst Board and this
committee don't have direct oversight in this area.
In 2026, the Terms of Reference and key definitions
will be included as an annual action item on the
Planning Calendar for committee review.
Substantially yes; see below.
- At this time, we don't review cyber risk management, but this will probably change if
Housing Catalyst moves its IT infrastructure out of the City of Fort Collins' purview.
-We are going to review the Terms of Reference and key definitions and set up a
cadence for future reviews.
176
“The Audit and Finance Committee should ensure
it has effective communication with all key
stakeholders, for example, the Board, the External
Auditor, and other relevant assurance providers.”
Principle 5
Communication and reporting
Question/Checklist CommentsY/N
Yes
No
Yes
No
15.Is our work effectively and promptly
reported to the Board and Chief
Executive Officer after each meeting?
16.DowereviewtheAQQXDOFLQDQFLDO
RXUfindingstothe Board?
Are we
performing
effectively in
this area?
Are there any
actions we
want to take
to build our
effectiveness?
Conclusion
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Yes
None at this time.
177