HomeMy WebLinkAboutHousing Catalyst - Minutes - 04/18/2000April 18, 2000
BOARD OF COMMISSIONERS
OF THE FORT COLLINS
HOUSING AUTHORITY
A meeting of the Board of Commissioners of the Fort Collins Housing Authority was held on
Tuesday, April 18, 2000, at 8:15 p.m. in the Council Chambers of the City of Fort Collins City Hall.
Roll Call was answered by the following Commissioners: Bertschy, Byrne, Kastein, Martinez,
Mason, Wanner and Weitkunat.
Staff Members Present: Love, Krajicek, Roy.
Resolution No. 30
Approving Revisions to the FY 2000 Budget and
Approving an Amendment to the Annual Plan Adopted
The following is staffs memorandum on this item.
Financial Impact"
The financial impact represents an increase of $349, 483 in capital outlays due to increased federal
funding. This also represents a savings of$32, 000 in operating budget dollars to be reallocated to
debt reduction to the City of Fort Collins.
Executive Summary
The Code ofFederal Regulations 24 Part 990.111(a) states that, prior to the beginning ofeach fiscal
year, housing authorities must prepare an operating budget. The Board of Commissioners reviews
and approves the FCH.4 budgets by resolution, and the budget is submitted to the HUD Field Office.
Housing authorities are also required to submit revised calculations in support of any mandatory
or other adjustments to the budget, based on procedures prescribed by HUD. In regard to the
Comprehensive Improvement Assistance Program (CLAP), HUD has established that any budget
revisions which exceed $2, 000 must be submittedfor review and approval by the HUD Field Office.
In addition, all changes to capital items must be reflected in the agency's Annual Plan.
In the past, the Fort Collins Housing Authority has received Capital Improvement Assistance
Program (CLAP) funds through a competitive grant process from the U.S. Department of Housing
and Urban Development for ongoing repair and modernization of public housing units. These
grants were typically awarded for expenditure over a three-year period. In 1999, the competitive
CIAP program was discontinued and housing authorities were given a final lump -sum CIAP grant.
Beginning in 2000, housing authorities will receive an ongoing "capital fundformula "amount each
year, which by federal statute shall not be less than 94% of the 1999 final grant.
Apri118, 2000
InAugust of 1999, the FCHA Board of Commissioners approved a CIAP budgetfor fiscal year 2000
which itemized the capital improvement items that would be completed with the grant. However,
the FCHA staff was under the impression at that time that the amount received needed to be spread
out over a three-year period. For that reason, the approved FY 2000 CIAP budget only expended
60% of the available fording. Many needed repair and replacement items were projected out over
a three-year period.
The FY 2000 budget has now been revised to include the entire amount of the final CIAP grant
($299, 012) In addition, the budget has been revised to include the year 2000 capital fund formula
amount ($281,071)
In the past, the CIAP grant was administered as a separate program with a separate budget from
normal housing authority operations. Housing authorities are now able to include this final grant
and the ongoing capital ford formula in the normal operating budget.
Additionally, in March 2000, HUD informed the Executive Director that FCHA is eligible for
formulaf ending under the Public Housing Drug Elimination Program (PHDEP), but that an action
plan needed to be submitted by April 1, 2000 in order to receive this funding. A PHDEP action plan
was prepared and submitted addressing capital improvements to enhance security. These items
include security lighting, locks, alarm system at the maintenance facility, peepholes, and
landscaping to remove barriers. The PHDEP formula funding amount of $33, 871 is also included
in the revised budget.
When the original FY 2000 budget was prepared, there were many items that were identified as
immediate needs, but these were deferred due to limited finding. The budget is now able to support
these needs, which are detailed on the attached spreadsheet. They include: increased computer
hardware/software additions and replacement, replacement ofservice vehicle, administrative office
remodel for professional efficient work -space, paving, boiler replacement, CO2 detectors, gas line
repair, siding, and lawn equipment.
Under the Cooperative Agreement with the City of Fort Collins, FCHA annually calculates and pays
to the City a Payment in Lieu of Taxes (PILOT.) The payment is equal to 10%of rental revenue less
utilities or approximately $16, 000. Over recent years, the City has passed a resolution to grant the
PILOT back to the Housing Authority to enhance affordable housingprograms through repair and
modernization. In the revised budget, the capital items originally identified to be completed using
the returned PILOT amount are now covered by the capital fund formula. As a result, the returned
PILOT amount will be available to make a payment on the principal of the debt to the City. The
original budget only specified payment of the 7% interest on the debt in the amount of $27, 300.
Finally, the capital fund formula money will now cover two additional items from the original
budget: $20, 000for staff training and $12, 000 for a wage study. These amounts will also be moved
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April 18, 2000
to payment of the principal on the debt to the city. The annual principal payment is $43, 333."
Julie Love, Housing Authority Executive Director, presented an overview of the agenda item.
Commissioner Wanner made a motion, seconded by Commissioner Weitkunat, to adopt Resolution
No. 30. The vote on the motion was as follows: Yeas: Commissioners Bertschy, Byrne, Kastein,
Martinez, Mason, Wanner and Weitkunat. Nays: None.
THE MOTION CARRIED
The meeting adjourned at 8:20 p.m.
Adjournment
c
, Ex-Officio Chair