HomeMy WebLinkAbout2015 - Housing Catalyst - Annual ReportFort Collins Housing Authority
Fort Collins, Colorado
Comprehensive Annual Financial Report
and Single Audit Report
Year ended December 31, 2015
With Comparative Totals for the Year Ended December 31, 2014
Fort Collins Housing Authority
Fort Collins, Colorado
Comprehensive Annual Financial Report
and Single Audit Report
Year ended December 31, 2015
With Comparative Totals for the Year Ended December 31, 2014
Issued by:
Finance and Accounting Department of
the Fort Collins Housing Authority
Duane Hopkins, Chief Financial Officer
Fort Collins Housing Authority
Table of Contents
December 31, 2015
Introductory Section
Letter of Transmittal i
Government Finance Officers Association of the United States and
Canada (GFOA) December 31, 2014 Certificate viii
Organizational Chart ix
List of Principal Officials x
Financial Section
Report of Independent Auditors 1
Management's Discussion and Analysis 4
Basic Financial Statements:
Statements of Net Position 11
Statements of Revenues, Expenses and Changes in Net Position 15
Statements of Cash Flows 17
Combining Statement of Net Position - Discretely Presented Component Units 21
Combining Statement of Revenues, Expenses and
Changes in Net Position - Discretely Presented Component Units 23
Notes to Financial Statements 24
Combining Financial Schedules 46
Statistical Section (Unaudited)
Statistical Section Table of Contents 50
Net Position (Table 1) 51
Change in Net Position (Table 2) 52
Operating Revenues by Source (Table 3) 54
Non-Operating Revenues by Source (Table 4) 55
Debt Service Coverage (Table 5) 56
Ratio of Debt to Capital Assets (Table 6) 58
Service Area Demographics / Statistics (Table 7) 59
Principal Employers for the City of Fort Collins (Table 8) 60
Resident Demographics / Population Statistics (Table 9) 61
Resident Demographics / Ethnicity Statistics (Table 10) 62
Number of FCHA Dwelling Units (Table 11) 63
Property Characteristics and Unit Composition (Table 12) 64
Number of FCHA Staff (Table 13) 65
Single Audit Section
Report of Independent Auditors on Internal Control over Financial Reporting and on
Compliance and Other Matters Based on an Audit of Financial Statements
Performed in Accordance with Government Auditing Standards 66
Report of Independent Auditors on Compliance for Each Major Program and on
Internal Control over Compliance Required by the Uniform Guidance 68
Schedule of Expenditures of Federal Awards 70
Schedule of Findings and Questioned Costs 72
Schedule of Prior Year Findings and Questioned Costs 75
Fort Collins Housing Authority
Fort Collins, Colorado
Introductory Section:
Letter of Transmittal
Certificate of Achievement for Excellence in Financial Reporting
Organizational Chart
List of Principal Officials
May 9, 2016
Mrs. Cathy Mathis, Chairperson of the Board of Commissioners
Members of the Board of Commissioners of the Fort Collins Housing Authority:
We are pleased to present the Comprehensive Annual Financial Report (CAFR) for the Fort Collins
Housing Authority for the year ended December 31, 2015. This report is prepared in conformance
with standards of financial reporting as established by the Governmental Accounting Standards
Board and the Government Finance Officers Association. The United States Department of Housing
and Urban Development (HUD) requires that all public housing authorities publish within nine
months after the fiscal year-end, financial statements presented in conformity with United States
Generally Accepted Accounting Principles (GAAP), FCHA's financial statements presented here
have been audited by Novogradac & Company, LLP. The auditors issued an unmodified opinion on
FCHA's financial statements for the year ended December 31, 2015. The financial statements for
the year ended December 31, 2014 were audited by Eide Bailly, LLP and an unmodified opinion
was issued for those statements. The data presented in this report is the responsibility of the
management of FCHA. To the best of our knowledge and belief, the data as presented is accurate
in all material aspects; is presented in a manner designed to fairly state the financial position and
results of operations of FCHA; and all disclosures necessary have been included to enable the
reader to gain an understanding of FCHA's financial affairs. GAAP requires that management
provide a narrative introduction, overview and analysis to complement the basic financial
statements in the form of Management's Discussion and Analysis (MD&A). FCHA's MD&A can be
found immediately following the report of the independent auditors. This transmittal letter is
designed to complement the MD&A and should be read in conjunction with it.
FCHA is required to undergo an annual single audit in conformity with the provisions of Title 2 U.S.
Code of Federal Regulations (CFR) Part 200, Uniform Administrative Requirements, Cost
Principles and Audit Requirements for Federal Awards (Uniform Guidance) . Information related to
this single audit, including the independent auditors' report on internal control over financial
reporting and on compliance and other matters based on an audit of financial statements performed
in accordance with Government Auditing Standards; the independent auditors' report on compliance
with requirements applicable to each major program and on internal control over compliance in
accordance with the Uniform Guidance; the Schedule of Federal Awards; Schedule of Findings and
Questioned Costs; and the status of prior year findings are included in the single audit section of
this report.
Letter of Transmittal
2015 Comprehensive Annual Financial Report
Organizational Overview
y Maintaining the fiscal viability of the organization.
y Achieving a social goal through the provision of affordable housing and supportive services.
y Achieving environmental sustainability.
FCHA was created in 1971 by a petition of twenty-five citizens who were concerned about the
community's lack of adequate, safe housing for all of it's inhabitants. This report includes all
programs of FCHA as well as all of its component units. Component units are legally separate
entities for which a government is financially accountable. FCHA is not a component unit of the City
of Fort Collins (the City) as defined by the pronouncements of the Governmental Accounting
Standards Board. The governing body for FCHA is its Board of Commissioners (Board) comprised
of seven members appointed by the City Council. The Board appoints a Chief Executive Officer
(CEO) to administer the affairs of FCHA. Sources of funding include resident rents, administration
of HUD programs and HUD subsidies passed through to program participants. The City is not
financially accountable for the operations of FCHA, has no responsibility to fund deficits or receive
surpluses and has not guaranteed FCHA's debt.
FCHA's goals are accomplished through a variety of housing programs and activities. These
activities include several programs developed by HUD such as the Low Rent Housing Program
(Public Housing) and the Housing Choice Voucher Program, also known as Section 8. In addition to
these federal programs, FCHA has established various instrumentalities to explore and develop
innovative techniques for providing a variety of housing possibilities for the low to moderate-income
residents of Fort Collins. These programs have allowed FCHA the flexibility to develop several
private/public partnerships providing a variety of housing opportunities for Fort Collins residents.
FCHA is our community’s leader in sustainable, long-term affordable housing solutions. Each year,
the agency helps over 5,000 lower income individuals through innovative, award-winning affordable
housing and programs that also benefit the city’s economy and revitalize neighborhoods. FCHA is a
progressive housing provider and developer, offering permanent solutions that move people out of
homelessness, stabilize families, and improve lives.
To achieve our mission, all FCHA functions are operated with attention paid to a triple bottom line:
FCHA currently owns and operates 154 Public Housing units in addition to administering over 1,100
Section 8 Housing Choice Vouchers for Fort Collins and Larimer County. The Larimer County
allocation of 100 of these vouchers is administered through an intergovernmental agreement, 65 of
which are targeted specifically to people with disabilities. FCHA administered over $8.6 million in
Housing Assistance Payments (HAP) to local landlords on behalf of participating families in 2015.
This amount includes funding for 115 Veterans Affairs Supportive Housing program vouchers. HUD
grades this program through its Section 8 Management Assessment Program (SEMAP). FCHA
received an “A” rating for 2015 and has utilized 99% of its authorized funding.
ii
Letter of Transmittal
2015 Comprehensive Annual Financial Report
Economic Condition and Outlook
Long-Term Planning and Major Commitments and Initiatives
For the Section 8 program, HUD provides housing authorities with a fixed annual budget for
Housing Assistance Payments (HAP) and for administration fees. Funding for the Section 8
program was prorated at 100.1% and 82% of eligibility for Housing Assistance Payments and
administration fees, respectively.
For the Public Housing program, housing authorities receive operating subsidies in accordance with
an operating subsidy funding formula. In general, the calculated subsidy amount is the difference
between an estimate of operating costs minus an estimate of income from rents. Operating
subsidies are subject to annual appropriation by Congress. In 2015, FCHA, like all housing
authorities nationwide, was funded at 85.36% of eligibility.
The FCHA supports the development and preservation of affordable housing throughout Fort
Collins. With funding from the City, State Division of Housing, Colorado Housing and Finance
Authority, equity investors, and lenders, FCHA and its partners combine high quality design with
sustainable development principles and sound planning to develop and maintain a vibrant and
diverse affordable housing portfolio. FCHA employs many strategies to create and preserve its
stock of affordable housing. These strategies include new construction, acquisition, rehabilitation
and preservation of existing housing to create and maintain high-quality sustainable units.
Fort Collins has a population of 158,600 (2015). Median household income is $53,359 and median
family income is $76,341 (American Community Survey, 2008-2012). The rental market has
tightened considerably in the past years and rents continue to increase with recent vacancy rates as
low as 1%.
iii
Between 2011 and 2013, FCHA analyzed options to dispose of or reposition the 154 units of public
housing operated by the organization. This analysis included both a disposition strategy under
Section 18 of the Housing Act of 1937 and the use of the opportunities available under the HUD
Rental Assistance Demonstration (RAD) Program. In late 2013 it was determined that the best
approach would be to reposition the entire portfolio of 154 public housing units using a combination
of disposition and conversion utilizing the HUD RAD program. In mid-2014 the FCHA submitted an
application for a multi-phase development under the RAD program which proposed to use proceeds
from the disposition of the public housing portfolio in seven separate projects. The seven projects
are projected to result in the development, or renovation, of 665 units of affordable housing within
Fort Collins.
Congressional housing legislation and the federal budget affect FCHA more than local economic
factors. One of FCHA's primary sources of funding is HUD. As with most housing authorities, much
of FCHA's operating and capital funding comes from federal dollars in the form of operating
subsidies, capital fund grants and Section 8 Housing Assistance Payments. During the year ended
December 31, 2015, HUD and other federal agencies provided approximately 57% of FCHA's
operating revenue and approximately 61% of FCHA's total revenues (including $710,933 in pass-
through funding).
Letter of Transmittal
2015 Comprehensive Annual Financial Report
PAB Authority
City of Fort Collins $ 21,980,818
Larimer County 8,643,575
Weld County 16,165,035
State of Colorado 22,460,572
Total $ 69,250,000
A large renovation project of 284 units will utilize proceeds from the disposition of some of the
public housing units. FCHA acquired these units in 2012 as part of its purchase of Village on
Cunningham Corners (VOCC). The VOCC purchase consisted 345 total units of privately owned
affordable housing located in Fort Collins (285 units) and Loveland (60 units), Colorado. The 60-unit
property located in Loveland, known as the Madison Avenue Apartments, was sold in 2014. After
the payment of outstanding debt and selling costs, the sale of the Madison Avenue Apartments
resulted in a net cash increase of $809,423. All properties in VOCC were previously developed or
updated using Low Income Housing Tax Credits (LIHTC). All properties have completed their initial
15-year compliance periods but still have Land Use Regulatory Agreements (LURA) in place to
ensure affordability for extended periods.
The entire VOCC portfolio was purchased with a combination of $1.072 million in Community
Development Block Grant (CDBG) funds through the City of Fort Collins, a $2.5 million short-term
loan from a local Community Development Finance Institution (CDFI) and a $21.35 million short-
term loan from a local financial institution. A $2.6 million portion of the short-term debt used to
purchase the VOCC properties was refinanced during 2013. The new loan was obtained through
the Colorado Housing Investment Fund (CHIF) administered by the State of Colorado. Proceeds
were used to pay-off the CDFI loan from with the remainder used to reduce the other debt on the
properties. This transaction reduced the interest rate on this portion of the debt from 6.25% to 1.0%
which translated into a savings of over $11,000 per month. The CHIF debt on the VOCC project is
set to mature in late 2016. In the first quarter of 2016, the remaining debt on the properties was
extended for a period of two years.
FCHA plans to begin the renovation of the 284 Fort Collins VOCC units starting in 2016, utilizing a
portion of the public housing disposition proceeds combined with a 4% Low Income Housing Tax
Credit ("LIHTC") transaction. Planning for the substantial rehabilitation of the Fort Collins VOCC
properties is underway. At the end of 2015, $937,200 in CDBG, HOME Investment Partnerships
Program (HOME) and City of Fort Collins Affordable Housing Fund (AHF) grant funding has been
secured for the planned renovations.
iv
FCHA began to accumulate the assignment of significant Private Activity Bond (PAB) authority in
2013 to be used for the VOCC rehabilitation and other significant 4% LIHTC funded projects. The
FCHA has partnered with the City of Fort Collins, Larimer County and Weld County to secure PAB
assignments. Through 2015, FCHA had secured the following assignments:
Letter of Transmittal
2015 Comprehensive Annual Financial Report
A partnership between the FCHA and a private developer was finalized in 2012 for the construction
of a 72-unit affordable development for seniors near downtown Fort Collins, known as the Legacy
Seniors project. Construction was completed in December 2013 and final payments for the
federally funded portions of the project, which passed through the FCHA, were made in early 2014.
The other projects that are currently projected to use a portion of the proceeds from the public
housing disposition and PAB authority are the 284 Fort Collins VOCC units and a new-build project
that will consist of 72 units of affordable housing known as the Village on Redwood (Redwood)
project. The VOCC project is currently projected to need $25 million in PAB authority. The Redwood
project is currently projected to require $10 million in PAB authority.
The Redwood project will include 72 new units of affordable housing with 36 townhouse-style units
and 36 flats-style units separated into 12 individual buildings surrounding a large community green.
The mix of unit types includes 1, 2, 3 and 4-bedroom units. Total cost is estimated at $18.34 million.
At the end of 2014, $720,000 in CDBG and HOME grant funding had been secured for Redwood. In
addition, funds from the FCHA public housing disposition, PAB authority, CDBG-Disaster Recovery
(CDBG-DR) funds and State of Colorado low-income housing tax credits (State Tax Credits) will
also be utilized to finance the Redwood project. The CDBG-DR funds are available to projects in
Larimer County because of a natural disaster from flooding that occurred in the area in late 2013. In
2014, the State of Colorado approved a $5 million annual amount of State Tax Credits to be issued
on a competitive basis in 2015 and 2016.
v
In May 2013, the Redtail Ponds Permanent Supportive Housing project (Redtail) received a
reservation of $768,383 in 9% LIHTC’s. Construction of this $12.48 million 60 unit property began in
March 2014 and was completed in March 2015. The property was fully occupied in August 2015.
This development will address the special housing needs of homeless individuals with disabilities,
homeless veterans and other low-income individuals.
Financing partners for Redtail were selected for debt and equity financing through a competitive
RFP process in 2013. FCHA was pleased to select and partner with US Bancorp Community
Development Corporation, US Bank National Association and the Colorado Housing and Finance
Authority on the tax credit equity, construction and permanent financing. An award of $800,000 was
secured in 2013 from the Colorado Division of Local Affairs for the project. In addition, a total of
$1,391,077 in CDBG, HOME and AHF grant funding was awarded for this project between 2011
and 2014. The development represents the FCHA’s first permanent supportive housing
development.
In 2014 the FCHA started the substantial rehabilitation of a 95 unit property known as the Village on
Plum (VOP) utilizing $8.75 million of the PAB authority it had previously been assigned. The VOP
was previously owned by a non-profit and was placed in a Limited Liability Limited Partnership
(LLLP) as part of a 4% LIHTC financing package in 2014. FCHA is the General Partner in the LLLP.
The total project cost, including the refinance of the existing mortgage, is $16.38 million. This
project was completed in September 2015.
Letter of Transmittal
2015 Comprehensive Annual Financial Report
Financial Information
Other Information - Awards
FCHA management is responsible for establishing and maintaining an internal control structure
designed to ensure that FCHA's assets are protected from loss, theft or misuse and that adequate
accounting data are compiled to allow for the preparation of financial statements in conformity with
GAAP. FCHA has designed its internal control structure to provide reasonable, but not absolute,
assurances that those objectives are met. The concept of reasonable assurance recognizes that:
(1) the costs of a control should not exceed the benefits likely to be derived and (2) the valuation of
costs and benefits requires estimates and judgment by management.
As a recipient of federal awards, FCHA is responsible for ensuring that adequate internal controls
are in place to provide compliance with applicable laws, regulations, contracts and grants related to
those programs. Those internal controls are subject to periodic evaluation by management, and
their independent auditors.
As part of FCHA's single audit, tests are made to determine the adequacy of the internal controls,
including that portion related to federal award programs, as well as to learn whether FCHA has
compiled with applicable laws, regulations, contracts and grants. FCHA's single audit for the year
ended December 31, 2015 found no instances of material weakness in the internal control or
significant violations of the applicable laws, regulations, contracts and grants, audit reports
regarding this are included in this CAFR in the Single Audit Section.
vi
The Government Finance Officers Association of the United States and Canada (GFOA) awarded a
Certificate of Achievement for Excellence in Financial Reporting to FCHA for its comprehensive
annual financial report for the year ended December 31, 2014. This was the second consecutive
year that FCHA has achieved this prestigious award. In order to be awarded a Certificate of
Achievement, a government must publish an easily readable and efficiently organized
comprehensive annual financial report. This report must satisfy both generally accepted accounting
principles and applicable legal requirements.
A Certificate of Achievement is valid for a period of one year only. We believe that our current
comprehensive annual financial report continues to meet the Certificate of Achievement Program's
requirements, and we are submitting it to GFOA to determine its eligibility for another certificate.
Letter of Transmittal
2015 Comprehensive Annual Financial Report
Acknowledgments
Respectfully submitted,
Julie Brewen
Chief Executive Officer
Duane Hopkins
Chief Financial Officer
Preparation of the Comprehensive Annual Financial Report on a timely basis was accomplished
through the dedicated service of the entire staff of the Finance and Accounting department under
the leadership of Duane Hopkins, FCHA's Chief Financial Officer. Each member of the department
has our sincere appreciation for the contributions made in the preparation of this report. Our sincere
appreciation is extended to the management and staff of Novogradac & Company, LLP who
provided necessary expertise and technical assistance.
In closing, without the leadership and support of the members of the Board of Commissioners,
preparation of this report would not have been possible.
vii
viii
Fort Collins Housing Authority
Organizational Chart
December 31, 2015
ix
Maintenance
Department
Director of Program
Development
Resident Services
Department
Director of Federal
Programs
Portfolio Manager
Board of
Commissioners
Public Housing
Manager
HCV Department
Property
Management
Chief Executive
Officer
Director of
Development
Chief Financial
Officer
Executive
Department
Accounting
Department
Development
Department
Fort Collins Housing Authority
List of Principal Officials
December 31, 2015
Board of Commissioners: Management:
Cathy Mathis Julie J. Brewen
Chairperson CEO / Executive Director
David Bye Duane Hopkins
Vice-Chairperson Chief Financial Officer
Susan McFaddin Chadrick Martinez
Commissioner Director of Real Estate Development
Ross Cunniff John Tuchscherer
Commissioner Director of Federal Programs
Jake Joseph Nancy Stafford
Commissioner Director of Property Management
Ann Green Michele Christensen
Commissioner Director of Program Development
Nicole Staudinger
Commissioner
x
Fort Collins Housing Authority
Fort Collins, Colorado
Financial Section:
Independent Auditor's Report
Management Discussion and Analysis
Basic Financial Statements
Notes to Basic Financial Statements
Combining Financial Schedules
4
Fort Collins Housing Authority
Management's Discussion and Analysis
December 31, 2015
Financial Highlights
Overview of the Financial Statements
• Reports on Compliance
• Schedule of Expenditures of Federal Awards
• Departmental Financial Statements
• Schedule of Findings and Questioned Costs
The Fort Collins Housing Authority (the Authority) offers readers of the Authority’s financial
statements this narrative overview and analysis of the financial activities of the Authority for the
fiscal year ended December 31, 2015. We encourage readers to consider the information presented
here in conjunction with the Authority’s financial statements, which begin on page 11.
• The assets of the Authority exceeded its liabilities at the close of the most recent fiscal year by
$14,239,803 (net position), an increase of $1,865,183 from the prior year balance. The most
significant contributing factor to the current year increase was the current year developer fee
income of $2,361,742 from low income housing tax credit projects, an increase of $1,897,287
(408%) as compared to the prior year.
• As of the close of the current fiscal year, the Authority’s funds had an unrestricted net position
of $11,094,127 and $166,313 in restricted net position, which represents HUD voucher funding.
• The Authority’s unrestricted cash balance at December 31, 2015 was $3,246,185, representing
a decrease of $47,170 (1%) from December 31, 2014.
This discussion and analysis is intended to serve as an introduction to the Authority’s basic financial
statements. The Authority’s basic financial statements are comprised of: 1) fund financial
statements and 2) notes to the financial statements. As required by HUD, this report also includes
supplemental information such as:
• Other income decreased by $565,143 (86%) as compared to the prior year. The majority of the
prior year balance was developer fee income of $464,455 (70%) related to the development of
two new projects, Redtail Ponds Permanent Supportive Housing ("Redtail Ponds PSH" and
Village on Plum ("VOP"), both located in Fort Collins, Colorado. The balance of current year
developer fee income of $2,361,742 is classified as developer fee income on the Statement of
Revenues, Expenses and Changes in Net Position. The current year balance is also related to
the development of the above referenced projects, Redtail Ponds PSH and VOP.
• The Authority received HUD operating funding of $10,202,864, internal service fees
(management fees and overhead cost allocations) of $1,374,627 and rents of $3,262,352 for the
year. The Authority paid out $8,722,655 in housing assistance payments and $6,154,492 in other
operating expenses (excluding depreciation of $964,299).
5
Fort Collins Housing Authority
Management's Discussion and Analysis
December 31, 2015
Financial Statements
Departmental Financial Statements
Supplemental Information
The financial statements are designed to provide readers with a broad overview of the Authority's
finances, in a manner similar to a private-sector business.
The statement of net position presents information on all of the Authority's assets and liabilities, with
the difference between the two reported as net position. Over time, increases or decreases in net
position may serve as a useful indicator of whether the financial position of the Authority is improving
or deteriorating.
The statement of activities presents information showing how the Authority's net position changed
during the most recent fiscal year. All changes in net position are reported as soon as the underlying
event giving rise to the change occurs, regardless of the timing of related cash flows. Thus,
revenues and expenses are reported in this statement for some items that will only result in cash
flows in past or future periods (e.g. depreciation and earned personal leave).
The statement of cash flows presents information showing the Authority's inflows and outflows of
cash and cash equivalents during the most recent fiscal year. All changes in cash and cash
equivalents are reported as soon as the underlying event giving rise to the change occurs,
regardless of the timing of related changes in net position. Thus, cash flows are reported in this
statement for some items that will only result in revenue or expenses in past or future periods (e.g.,
purchase of assets, new loans, or payments on loans).
A fund is a grouping of related accounts that is used to maintain control over resources that have
been segregated for specific activities or objectives. The Authority, like other state and local
governments, uses fund accounting to ensure and demonstrate compliance with finance-related
legal requirements. The Authority has only one fund type, namely enterprise funds.
The supplemental information is presented for purposes of additional analysis as required by Title 2
U.S. Code of Federal Regulations (CFR) Part 200, Uniform Administrative Requirements, Cost
Principles and Audit Requirements for Federal Awards (Uniform Guidance) . The schedule of
expenditures of federal awards can be found on page 70 of this report.
6
Fort Collins Housing Authority
Management's Discussion and Analysis
December 31, 2015
Entity-Wide Financial Analysis
Statement of Net Position:
The following table reflects the condensed Statement of Net Position for the organization.
2015 2014
Cash & Escrow Deposits $ 3,666 $ 3,735
Receivables 2,241 284
Notes & Interest Receivable 5,910 5,307
Inventory 57 57
Prepaid Expenses 67 30
Capital Assets (Net) 26,019 26,963
Other Assets 953 178
Total Assets $ 38,913 $ 36,554
A/P & Accrued Liabilities $ 747 $ 589
Security Deposits & Escrow 288 332
Unearned Revenue 18 16
Notes & Mortgage Payable 23,620 23,243
Total Liabilities 24,673 24,180
Net Investment in Capital Assets 2,980 3,820
Restricted Net Position 166 166
Unrestricted Net Position 11,094 8,388
Total Net Position 14,240 12,374
Total Liabilities & Net Position $ 38,913 $ 36,554
(in thousands of dollars)
As noted earlier, net position may serve, over time, as a useful indicator of a government’s financial
position. In the case of the Authority, assets exceeded liabilities by $14,239,803 at the close of
2015.
A large portion of the Authority’s net position (21%) reflects its investment in capital assets (e.g.
buildings, machinery, and equipment). The Authority uses these capital assets to provide housing
and services to low-income tenants: consequently, these assets are not available for future
spending. The unrestricted net position ($11,094,127) of the Authority is available for future use to
provide program services.
Fort Collins Housing Authority
Authority-Wide Net Position as of December 31,
7
Fort Collins Housing Authority
Management's Discussion and Analysis
December 31, 2015
A condensed Statement of Changes in Net Position is shown in the table below.
2015 2014
Revenues
Rental income $ 3,262 $ 3,700
Administrative fees 1,375 1,060
HUD PHA grants 10,203 9,791
Interest income 203 188
Developer fees 2,362
Other 877 1,316
Total Revenue 18,282 16,055
Expenses
Housing assistance payments 8,723 8,320
Administrative salaries and benefits 2,856 2,635
Maintenance 1,606 1,729
General and administrative 896 767
Depreciation 964 1,064
Utilities 295 353
Insurance 147 153
Interest expense and financing costs 694 777
Other 354 87
Total Expenses 16,535 15,885
Income (Loss) Before Contributions 1,747 170
HUD Capital Contributions 119 258
Change in Net Position 1,866 428
Net Position - Beginning of Year 12,374 11,946
Net Position - End of Year $ 14,240 $ 12,374
A large portion of the Authority’s revenues are intergovernmental revenues received from the United
States Department of Housing and Urban Development for cost reimbursement grants and
operating expense subsidies. The Authority draws monies from the grant awards for allowable
program and capital expenditures.
Fort Collins Housing Authority
Authority-Wide Change in Net Position for the Year Ended December 31,
(in thousands of dollars)
8
Fort Collins Housing Authority
Management's Discussion and Analysis
December 31, 2015
Departmental Financial Analysis
1.
2.
3.
4.
5.
Housing Development: Provides for the development of rental housing and homeownership
opportunities. This department presently has a net position in the amount of $6,436,183.
Revenues for 2015 included tenant rental income, CDBG and HOME grants for Redtail Ponds
Permanent Supportive Housing, accrued interest income on loans to both tax credit funded
properties, fees for managing construction projects and developer fees.
The revenue source for the HCV, VASH and FUP vouchers is HUD in the amount of
$8,525,518, which is an increase of $426,827 (5%) as compared to the prior year total of
$8,098,691. The current year HAP expenses of $7,796,262 increased by $400,076 (5%) as
compared to the prior year expenses of $7,396,186.
The Authority currently owns three apartment complexes in Fort Collins and plans on holding
the complexes for an additional year to obtain tax credit project funding for rehabilitation of the
buildings. Once the tax credit project funding is obtained, it is expected that the complexes will
be sold to tax credit partnership entities.
HUD Grant (ROSS / FSS): Provides funding for the salary and benefit expenses of family
self sufficiency employees. This is a cost reimbursement grant with a current year annual
award amount of $201,955.
As noted earlier, the Authority uses departmental accounting to ensure and demonstrate compliance
with finance-related legal requirements. Each of the departments has a specific objective and
purpose to accomplish. The focus of the Authority’s funds is to provide information on near-term
inflows, outflows, and balances of spendable resources. During 2015, the Authority maintained
seven departmental funds as described below:
Public Housing: Owns and operates 154 units of housing for rent to low-income families.
The program ended 2015 with a net position of $6,279,079 of which $5,705,212 (91%) is
invested in capital assets; and, $573,867 is available as operating reserves. The main
sources of revenue are rents charged to tenants, HUD annual operating subsidy, and capital
grants.
Management: Provides administrative support for all departments and has outside
management contracts with Villages, Ltd. (231 units), Wellington Housing Authority (42 units),
Village on Elizabeth (48 units), Village on Stanford (82 units), the Northern Hotel (47 units),
Village on Cunningham Corner (285 units), Redtail Ponds PSH (60 units) and Village on Plum
(95 units). The net position is $1,094,863, of which $116,565 (11%) is invested in capital
assets. The sources of revenues are cost allocations, administrative fees charged and
maintenance fees charged.
Vouchers: The Authority managed 894 Housing Choice Vouchers (HCV), 125 Veterans
Affairs Supportive Housing (VASH) vouchers and 50 Family Unification Program (FUP)
vouchers at year-end 2014.
9
Fort Collins Housing Authority
Management's Discussion and Analysis
December 31, 2015
6.
7.
Capital Assets and Debt Administration
Capital Assets
Capital asset activity during the current fiscal year is as follows:
Long-Term Debt
Loan activity during the current fiscal year is as follows:
• Principal payments made to First Bank on the Taft Hill Road note in the amount of $20,503.
• Construction of a bike shelter for FCHA employees in the amount of $6,827.
• Principal payments made to the Colorado Department of Housing on the CHIF loan in the
amount of $58,036.
As of December 31, 2015, the Authority had six long-term loans totaling $23,620,047. The long-term
loans are to fund remodeling costs for the Taft Hill Road office of the Villages, Ltd, to fund the
remodeling costs for the Authority's main offices on Mountain Avenue, to acquire land for future
development and for the purchase of four apartment complexes and a leasing office.
• Various renovation projects for the Villages on Cunningham Corner apartment complexes in the
amount of $13,650. Current year projects included leasing office renovations and replacing an
HVAC system.
• Principal payments made to First Bank on the Mountain Office remodel note in the amount of
$45,602.
• Principal payments made to the Seton Enablement Fund on the Redwood Land note in the
amount of $9,522.
State and Local (Colorado Division of Housing and the City of Fort Collins): Funds
provided through the City of Fort Collins for the TBRA CDDT program fund 10 vouchers for
clients in this program. These vouchers were funded in the amount of $70,339 during 2015.
Larimer County Housing Authority: Provides 100 rental vouchers for low-income clients.
The revenue source is HUD cost reimbursement for the vouchers. The Larimer County
Housing Authority is reported as a blended component unit of the Fort Collins Housing
Authority.
As of December 31, 2015, the Authority's net investment in capital assets was $2,979,363 (net of
accumulated depreciation and capital loans). This investment in capital assets includes land,
buildings, improvements, equipment, and computer software.
Additional information on the Authority's capital assets can be found in Note 1 on page 27 and Note
5 on page 33 of this report.
10
Fort Collins Housing Authority
Management's Discussion and Analysis
December 31, 2015
Economic Outlook
Contact Information
Mr. Duane Hopkins, Chief Financial Officer, may be contacted with questions concerning this report.
He can be reached at (970) 416-2993, or by mail at 1715 West Mountain Ave., Fort Collins, CO
80521. His e-mail address is dhopkins@fcgov.com.
The Authority remains focused on development of new affordable housing units through both
acquisition and new build strategies.
Demand for affordable housing remains strong in the Fort Collins market. The rental market has
tightened considerably in recent years and rents continue to increase. At the end of 2015, the Fort
Collins rental market was reported to be ranked second in the nation among cities with the lowest
vacancy rates according to a report by RealtyTrac, having only a 0.2 percent of total residential
properties classifying as vacant (The Denver Post, “Rental housing market in Fort Collins is among
the tightest in the U.S.”, February 11, 2016). HCV funding utilization is expected to remain close to
100% going forward based on current leasing levels and the large number of individuals on the
waiting list. The level of HCV HUD funding available, combined with rising rental rates, resulted in a
99% utilization of housing assistance payment (HAP) funding and an 90% HCV leased utilization in
2014. Given the lack of reserves held by the Authority, the level of funding received by HUD is
expected to continue to negatively affect the total number of families served through the HCV
programs.
Additional information on the Authority's debt can be found in Note 6 on pages 35 through 41 of this
report.
• Addition of short-term debt in the form of a line of credit extended from Villages, Ltd in the
amount of $500,000 to fund the pre-development costs for the Village on Redwood low income
housing tax credit project which will begin development during early 2016.
• Addition of long-term interest to the principal balance of the VOCC note payable due to
Villages, Ltd in the amount of $10,728.
See Notes to Financial Statements 11
Fort Collins Housing Authority
Statement of Net Position
December 31, 2015
Discretely
Presented
Primary Component
Government Units
Assets and Deferred Outflows
Current Assets
Cash and cash equivalents $ 3,246,185 $ 1,037,201
Restricted cash and cash equivalents 419,257 706,524
Accounts receivable
Grants 91,655 -
Tenants 31,039 29,113
Developer fees, current 1,262,132 -
Other 113,422 60,431
Accrued interest 122,062 -
Notes receivable - current portion 34,138 -
Prepaid expenses and other current assets 67,353 26,441
Inventory 57,182 -
Due from other agencies 32,633 3,989
Total Current Assets 5,477,058 1,863,699
Capital Assets
Non-depreciable 6,082,059 3,043,891
Depreciable, net 19,937,191 34,835,673
Total Capital Assets 26,019,250 37,879,564
Other Assets
Developer fees receivable, long-term 709,979 -
Notes receivable - net of current portion 5,753,815 -
Other assets, net - 553,205
Investment in tax credit partnerships 150,476 -
Investment in future developments 802,279 -
Total Other Assets 7,416,549 553,205
Total Assets 38,912,857 40,296,468
Deferred Outflows - -
Total Assets and Deferred Outflows $ 38,912,857 $ 40,296,468
See Notes to Financial Statements 12
Fort Collins Housing Authority
Statement of Net Position
December 31, 2015
Discretely
Presented
Primary Component
Government Units
Liabilities, Deferred Inflows and Net Position
Current Liabilities
Accounts payable $ 107,307 $ 99,560
Accrued liabilities 115,071 -
Accrued compensation 420,213 -
Accrued interest payable 63,020 228,177
Unearned revenues 18,607 -
Tenant security deposits payable 161,040 125,204
Due to other agencies 41,010 -
Due to related party - 3,706
Money held in escrow 126,739 -
Construction loan payable - 8,786,712
Notes and mortgages payable - current portion 2,462,284 43,924
Total Current Liabilities 3,515,291 9,287,283
Long-Term Liabilities
Notes and mortgages payable - net of current portion 21,157,763 23,941,732
Developer fees payable - 1,972,111
Other long-term liabilities - 829,431
Total Long-Term Liabilities 21,157,763 26,743,274
Total Liabilities 24,673,054 36,030,557
Deferred Inflows - -
Net Position
Net investment in capital assets 2,979,363 5,107,196
Restricted - housing assistance payments 166,313 -
Unrestricted 11,094,127 (841,285)
Total Net Position 14,239,803 4,265,911
Total Liabilities, Deferred Inflows and Net Position $ 38,912,857 $ 40,296,468
See Notes to Financial Statements 13
Fort Collins Housing Authority
Statement of Net Position
December 31, 2014 (Comparative Totals Only)
Discretely
Presented
Primary Component
Government Units
Assets and Deferred Outflows
Current Assets
Cash and cash equivalents $ 3,293,355 $ 597,233
Restricted cash and cash equivalents 441,574 778,319
Accounts receivable
Grants 19,653 -
Tenants 19,720 23,303
Other 240,288 -
Accrued interest 69,407 -
Notes receivable - current portion 20,423 -
Prepaid expenses and other current assets 30,044 35,966
Inventory 56,847 -
Due from other agencies 4,943 -
Total Current Assets 4,196,254 1,434,821
Capital Assets
Non-depreciable 6,082,059 12,558,687
Depreciable, net 20,881,013 17,033,734
Total Capital Assets 26,963,072 29,592,421
Notes receivable - net of current portion 5,216,991 -
Other assets, net - 97,498
Investment in tax credit partnerships 100,276 -
Investment in future developments 77,764 -
5,395,031 97,498
Total Assets 36,554,357 31,124,740
Deferred Outflows - -
Total Assets and Deferred Outflows $ 36,554,357 $ 31,124,740
See Notes to Financial Statements 14
Fort Collins Housing Authority
Statement of Net Position
December 31, 2014 (Comparative Totals Only)
Discretely
Presented
Primary Component
Government Units
Liabilities, Deferred Inflows and Net Position
Current Liabilities
Accounts payable $ 200,721 $ 1,281,729
Accrued liabilities 44,031 -
Accrued compensation 281,252 -
Accrued interest payable 62,268 127,717
Unearned revenues 16,141 -
Tenant security deposits payable 155,667 104,565
Due to related party - 125,735
Money held in escrow 176,675 -
Construction loan payable - 5,067,718
Notes and mortgages payable - current portion 133,526 22,600
Total Current Liabilities 1,070,281 6,730,064
Long-Term Liabilities
Notes and mortgages payable - net of current portion 23,109,456 18,465,777
Other long-term liabilities - 521,906
Total Long-Term Liabilities 23,109,456 18,987,683
Total Liabilities 24,179,737 25,717,747
Deferred Inflows - -
Net Position
Net investment in capital assets 3,820,752 4,173,679
Restricted 165,676 -
Unrestricted 8,388,192 1,233,314
Total Net Position 12,374,620 5,406,993
Total Liabilities, Deferred Inflows and Net Position $ 36,554,357 $ 31,124,740
See Notes to Financial Statements 15
Fort Collins Housing Authority
Statement of Revenues, Expenses and Changes in Net Position
Year Ended December 31, 2015
Discretely
Presented
Primary Component
Government Units
Operating Revenues
HUD PHA grants $ 10,202,864 $ -
Other grants 782,272 -
Rental income 3,262,352 2,292,273
Administration fees 1,374,627 -
Developer fees 2,361,742 -
Other 95,391 379,916
Total Operating Revenues 18,079,248 2,672,189
Operating Expenses
Housing assistance payments 8,722,655 -
Administrative salaries and benefits 2,855,551 504,236
Maintenance salaries and benefits 802,373 -
Other administrative 895,621 527,090
Regular and extraordinary maintenance 803,625 600,598
Depreciation 964,299 1,352,227
Utilities 295,063 206,266
Insurance 146,907 101,369
Payments in lieu of taxes 10,906 -
Other 344,447 -
Total Operating Expenses 15,841,447 3,291,786
Operating Income (Loss) 2,237,801 (619,597)
Non-Operating Revenues (Expenses)
Interest income 202,582 446
Interest expense (694,151) (853,210)
Gain on sale of capital assets - -
Total Non-Operating Revenues (Expenses) (491,569) (852,764)
Income (Loss) Before Contributions 1,746,232 (1,472,361)
HUD Capital Contributions 118,951 -
Change in Net Position 1,865,183 (1,472,361)
Net Position, Beginning of the Year 12,374,620 5,406,993
Capital Contributions - 334,114
Priority Distributions - (2,835)
Net Position, End of the Year $ 14,239,803 $ 4,265,911
See Notes to Financial Statements 16
Fort Collins Housing Authority
Statement of Revenues, Expenses and Changes in Net Position
Year Ended December 31, 2014 (Comparative Totals Only)
Discretely
Presented
Primary Component
Government Units
Operating Revenues
HUD PHA grants $ 9,790,666 $ -
Other grants 160,337 -
Rental income 3,700,398 1,158,251
Administration fees 1,059,745 -
Other 660,534 49,252
Total Operating Revenues 15,371,680 1,207,503
Operating Expenses
Housing assistance payments 8,319,806 -
Administrative salaries and benefits 2,634,909 163,897
Maintenance salaries and benefits 792,379 -
Other administrative 766,848 127,459
Regular and extraordinary maintenance 936,506 283,679
Depreciation 1,064,166 611,854
Utilities 353,235 100,577
Insurance 152,605 50,409
Payments in lieu of taxes 7,271 -
Other 80,638 -
Total Operating Expenses 15,108,363 1,337,875
Operating Income (Loss) 263,317 (130,372)
Non-Operating Revenues (Expenses)
Interest income 188,389 442
Interest expense (776,907) (428,923)
Gain on sale of capital assets 495,254 -
Total Non-Operating Revenues (Expenses) (93,264) (428,481)
Income (Loss) Before Contributions 170,053 (558,853)
HUD Capital Contributions 258,051 -
Change in Net Position 428,104 (558,853)
Net Position, Beginning of the Year 11,946,516 4,440,523
Capital Contributions - 1,528,126
Priority Distributions - (2,803)
Net Position, End of the Year $ 12,374,620 $ 5,406,993
See Notes to Financial Statements 17
Fort Collins Housing Authority
Statement of Cash Flows
Year Ended December 31, 2015
Primary
Government
Operating Activities
HUD PHA grants $ 10,130,862
Other grants 782,272
Receipts from tenants 3,258,872
Administration fees 1,346,937
Other income 222,257
Developer fee income 389,631
Housing assistance payments (8,772,591)
Payments to employees (3,518,963)
Payments to suppliers (2,515,577)
Net Cash from Operating Activities 1,323,700
Capital and Related Financing Activities
Principal payments on long-term debt (122,935)
Proceeds from line of credit 500,000
HUD capital contributions 118,951
Interest paid on long-term debt (693,399)
Acquisition of capital assets (20,477)
Net Cash used for Capital and Related Financing Activities (217,860)
Investing Activities
Receipts on notes receivable 20,503
Note receivable advance to related party (423,758)
Interest income 2,643
Investment in tax credit partnerships (50,200)
Investment in future development (724,515)
Net Cash used for Investing Activities (1,175,327)
Net Change in Cash and Cash Equivalents (69,487)
Cash and Cash Equivalents, Beginning of Year 3,734,929
Cash and Cash Equivalents, End of Year $ 3,665,442
See Notes to Financial Statements 18
Fort Collins Housing Authority
Statement of Cash Flows
Year Ended December 31, 2015
Primary
Government
Reconciliation of Cash and Cash Equivalents
Cash $ 3,246,185
Restricted Cash 419,257
Total Cash and Cash Equivalents $ 3,665,442
Reconciliation of Change in Net Position to Net Cash
From Operating Activities
Operating Income $ 2,237,801
Adjustments to reconcile operating income
to net cash from operating activities
Depreciation 964,299
Changes in assets and liabilities
(Increase) decrease in assets:
Receivables (1,928,566)
Inventory (335)
Prepaid expenses (37,309)
Due from other agencies (27,690)
Increase (decrease) in liabilities:
Accounts payable (93,414)
Tenant security deposits payable 5,373
Money held in escrow (49,936)
Accrued compensation 138,961
Accrued liabilities 71,040
Unearned revenue 2,466
Due to other agencies 41,010
Net Cash from Operating Activities $ 1,323,700
See Notes to Financial Statements 19
Fort Collins Housing Authority
Statement of Cash Flows
Year Ended December 31, 2014 (Comparative Totals Only)
Primary
Government
Operating Activities
HUD PHA grants $ 9,783,088
Other grants 160,337
Receipts from tenants 3,711,702
Administration fees 1,060,336
Developer fee income -
Other income 537,643
Housing assistance payments (8,280,720)
Payments to employees (3,400,095)
Payments to suppliers (2,293,240)
Net Cash from Operating Activities 1,279,051
Capital and Related Financing Activities
Principal payments on long-term debt (2,816,028)
Payments on line of credit (700,000)
HUD capital contributions 258,051
Proceeds from sale of capital assets 4,375,723
Interest paid on long-term debt (777,386)
Acquisition of capital assets (396,185)
Net Cash used for Capital and Related Financing Activities (55,825)
Investing Activities
Receipts on notes receivable 77,853
Note receivable advance to related party (110,319)
Interest income 2,647
Investment in tax credit partnerships (100,100)
Investment in future development (77,764)
Net Cash used for Investing Activities (207,683)
Net Change in Cash and Equivalents 1,015,543
Cash and Cash Equivalents, Beginning of Year 2,719,386
Cash and Cash Equivalents, End of Year $ 3,734,929
See Notes to Financial Statements 20
Fort Collins Housing Authority
Statement of Cash Flows
Year Ended December 31, 2014 (Comparative Totals Only)
Primary
Government
Reconciliation of Cash and Cash Equivalents
Cash $ 3,293,355
Restricted Cash 441,574
Total Cash and Cash Equivalents $ 3,734,929
Reconciliation of Change in Net Position to Net Cash
From Operating Activities
Operating Income $ 263,317
Adjustments to reconcile operating income
to net cash from operating activities
Depreciation 1,064,166
Changes in assets and liabilities
(Increase) decrease in assets:
Receivables (132,076)
Inventory (13,894)
Prepaid expenses (28,343)
Due from other agencies 591
Increase (decrease) in liabilities:
Accounts payable 39,349
Tenant security deposits payable 1,285
Money held in escrow 39,086
Accrued compensation 27,193
Accrued liabilities 6,751
Unearned revenue 11,626
Net Cash from Operating Activities $ 1,279,051
See Notes to Financial Statements 21
Fort Collins Housing Authority
Combining Statement of Net Position - Discretely Presented Component Units
December 31, 2015
Village on Village on Redtail Village on
Elizabeth Stanford Ponds PSH Plum Total
Assets
Current Assets
Cash $ 102,294 $ 397,352 $ 72,182 $ 465,373 $ 1,037,201
Restricted cash 200,161 342,683 75,517 88,163 706,524
Accounts receivable
Tenants 2,422 13,637 4,133 8,921 29,113
Other - - 60,431 - 60,431
Prepaid expenses - 11,316 15,125 - 26,441
Due from related party 3,989 - - - 3,989
Total Current Assets 308,866 764,988 227,388 562,457 1,863,699
Other Assets 25,803 63,055 154,151 310,196 553,205
Capital Assets
Non-depreciable 640,000 998,437 862,000 543,454 3,043,891
Depreciable, net 3,392,503 6,624,145 10,724,911 14,094,114 34,835,673
Total Capital Assets 4,032,503 7,622,582 11,586,911 14,637,568 37,879,564
Total Assets $ 4,367,172 $ 8,450,625 $ 11,968,450 $ 15,510,221 $ 40,296,468
See Notes to Financial Statements 22
Fort Collins Housing Authority
Combining Statement of Net Position - Discretely Presented Component Units
December 31, 2015
Village on Village on Redtail Village on
Elizabeth Stanford Ponds PSH Plum Total
Liabilities and Net Position
Current Liabilities
Accounts payable $ 8,350 $ 41,317 $ 28,260 $ 21,633 $ 99,560
Accrued interest
payable 41,622 148,238 18,916 19,401 228,177
Tenant security
deposits payable 21,083 41,558 12,400 50,163 125,204
Due to related party 3,706 - - - 3,706
Construction loan - - 8,786,712 - 8,786,712
Notes and mortgages
mortgages payable
- current portion 14,745 29,179 - - 43,924
Total Current Liabilities 89,506 260,292 8,846,288 91,197 9,287,283
Long-Term Liabilities
Notes and mortgages
payable - net of
current portion 3,943,623 5,284,371 2,311,158 12,402,580 23,941,732
Developer fee payable - - 672,474 1,299,637 1,972,111
Other long-term liabilitie - - - 829,431 829,431
Total Long-Term Liabilities 3,943,623 5,284,371 2,983,632 14,531,648 26,743,274
Total Liabilities 4,033,129 5,544,663 11,829,920 14,622,845 36,030,557
Net Position
Net investment in
capital assets 74,135 2,309,032 489,041 2,234,988 5,107,196
Unrestricted 259,908 596,930 (350,511) (1,347,612) (841,285)
Total Net Position 334,043 2,905,962 138,530 887,376 4,265,911
Total Liabilities and
Net Position $ 4,367,172 $ 8,450,625 $ 11,968,450 $ 15,510,221 $ 40,296,468
See Notes to Financial Statements 23
Fort Collins Housing Authority
Combining Statement of Revenues, Expenses and Changes in Net Position -
Discretely Presented Component Units
Year Ended December 31, 2015
Village on Village on Redtail Village on
Elizabeth Stanford Ponds PSH Plum Total
Operating Revenues
Rental income $ 401,669 $ 625,765 $ 350,824 $ 914,015 $ 2,292,273
Other 13,845 23,380 298,340 44,351 379,916
Total Operating Revenues 415,514 649,145 649,164 958,366 2,672,189
Operating Expenses
Administrative salaries
and benefits 67,418 109,978 208,473 118,367 504,236
Other administrative 51,048 71,121 251,786 153,135 527,090
Regular and extraordinary
maintenance 166,274 118,595 125,375 190,354 600,598
Depreciation and
amortization 194,135 348,246 409,017 400,829 1,352,227
Utilities 47,935 46,922 40,649 70,760 206,266
Insurance 16,078 28,299 27,148 29,844 101,369
Total Operating Expenses 542,888 723,161 1,062,448 963,289 3,291,786
Operating Income (Loss) (127,374) (74,016) (413,284) (4,923) (619,597)
Non-Operating Revenues (Expenses)
Interest income 52 358 - 36 446
Interest expense (184,949) (220,598) (186,358) (261,305) (853,210)
Total Non-Operating
Revenues (Expenses) (184,897) (220,240) (186,358) (261,269) (852,764)
Change in Net Position (312,271) (294,256) (599,642) (266,192) (1,472,361)
Net Position, Beginning
of the Year 649,149 3,200,218 404,058 1,153,568 5,406,993
Capital Contributions - - 334,114 - 334,114
Priority Distributions (2,835) - - - (2,835)
Net Position,
End of the Year $ 334,043 $ 2,905,962 $ 138,530 $ 887,376 $ 4,265,911
24
Fort Collins Housing Authority
Notes to Financial Statements
December 31, 2015
Note 1 - Nature of Operations and Significant Accounting Policies
General
The Authority is governed by a seven-member Board of Commissioners.
Reporting Entity
• The organization is legally separated (can sue and be sued in their own name)
• The Authority holds the corporate powers of the organization
• The Authority appoints a voting majority of the organization’s board
• The Authority is able to impose its will on the organization
• The organization has the potential to impose a financial benefit/burden on the Authority
• There is fiscal dependency by the organization on the Authority
Blended Component Units
The Fort Collins Housing Authority is a corporate body created in May 1971 and uses available
federal, state, and local resources to serve the residents of Fort Collins, Colorado by upgrading and
maintaining the existing housing stock, encouraging the construction of new housing affordable to
low and moderate income households, and providing low and moderate income families and senior
households with decent, safe, and affordable rental housing opportunities. The Authority owns and
operates 154 units of family housing and administers 894 Section 8 housing choice vouchers, 115
Section 8 VASH vouchers and 50 Family Unification Program vouchers. The Authority also owns and
operates 285 apartment units in Fort Collins.
The Authority’s financial statements include the accounts of all Authority operations. The criteria for
including organizations as component units within the Authority reporting entity, as set forth in
Section 2100 of the Governmental Accounting Standards Board’s (GASB) Codification of
Government Accounting and Financial Reporting Standards, include whether:
Included within the financial reporting entity of the Authority as a blended component unit is the
Larimer County Housing Authority (LCHA). The purpose of LCHA is to provide safe and sanitary
accommodations to the low and moderate-income residents of the County of Larimer. Over the past
several years, the Authority has maintained a contractual relationship with LCHA for the
administration of its housing activities. However, in January 1997, the Larimer County Board of
Supervisors assigned all interests in LCHA to the Authority, as LCHA was deemed immaterial with
respect to the overall functions of the County. Thus, despite being a legally separate entity and
receiving funds directly from the Department of Housing and Urban Development, LCHA has been
accounted for as a blended component unit of the Authority. Accordingly, the balances and
transactions of this component unit are reported within the proprietary funds of the Authority.
25
Fort Collins Housing Authority
Notes to Financial Statements
December 31, 2015
The following significant factors were considered in making this determination:
• The members of the Authority’s Board also act as the governing body of LCHA
• LCHA's operations are fully the responsibility of the management of the Authority
Discretely Presented Component Units
Also included within the financial reporting entity of the Authority as blended component units are
Village on Elizabeth, LLC, Village on Stanford, LLC, VOS Development, LLC, Redtail Ponds
Permanent Supportive Housing, LLC, Redtail Ponds Permanent Supportive Housing Development,
LLC, Village on Plum, LLC, Village on Plum Development, LLC and the Housing Catalyst, LLC, which
are single-member LLC’s. Separate financial statements for the component units are not issued.
Village on Elizabeth, LLC is the general partner in Village on Elizabeth, LLLP, Village on Stanford,
LLC is the general partner in Village on Stanford, LLLP, Redtail Ponds Permanent Supportive
Housing, LLC is the general partner in Redtail Ponds Permanent Supportive Housing, LLLP and
Village on Plum, LLC is the general partner in Village on Plum, LLLP which are discretely presented
component units and are described below.
The component unit columns in the combining financial statements include the financial data of the
Authority’s four discretely presented component units. These units are reported in separate columns
to emphasize that they are legally separate from the Authority.
VOS Development, LLC was formed to be the developer in Village on Stanford, LLC, Redtail Ponds
Permanent Supportive Housing Development, LLC was formed to be the developer in Permanent
Supportive Housing, LLC and Village on Plum Development, LLC was formed to be the developer in
Village on Plum, LLLP. Housing Catalyst, LLC was formed to be an entity that will be used, as
needed, to participate as the partner in future development projects for the Authority when desired to
facilitate project financing. Housing Catalyst, LLC is the administrative general partner in
Provincetowne Green LLLP, an 85 unit low income housing tax credit project (Note 10).
Village on Elizabeth, LLLP (VOE) – the general partner of this partnership, Village on Elizabeth, LLC,
is wholly owned by the Fort Collins Housing Authority. Village on Elizabeth, LLC has an ownership
percentage of 0.01%. As the general partner, the Authority has the day to day management
responsibilities of the partnership.
Village on Stanford, LLLP (VOS) – the general partner of this partnership, Village on Stanford, LLC,
is wholly owned by the Fort Collins Housing Authority. Village on Stanford, LLC has an ownership
percentage of 0.01%. As the general partner, the Authority has the day to day management
responsibilities of the partnership.
26
Fort Collins Housing Authority
Notes to Financial Statements
December 31, 2015
Fund Accounting
Basis of Accounting and Measurement Focus
Redtail Ponds Permanent Supportive Housing, LLLP (Redtail Ponds PSH) – the general partner of
this partnership, Redtail Ponds Permanent Supportive Housing, LLC, is wholly owned by the Fort
Collins Housing Authority. Redtail Ponds Permanent Supportive Housing, LLC has an ownership
percentage of 0.01%. As the general partner, the Authority has the day to day management
responsibilities of the partnership.
Village on Plum, LLLP (VOP) – the general partner of this partnership, Village on Plum, LLC, is
wholly owned by the Fort Collins Housing Authority. Village on Plum, LLC has an ownership
percentage of 0.01%. As the general partner, the Authority has the day to day management
responsibilities of the partnership.
The financial statements of the discretely presented component units are presented in the Authority’s
basic financial statements. Complete financial statements of the individual component units can be
obtained from the Chief Financial Officer, Fort Collins Housing Authority, 1715 W. Mountain Ave.,
Fort Collins, CO 80521.
The accounts of the Authority are organized on the basis of funds, each of which is considered a
separate accounting entity. The operations of each fund are accounted for with a separate set of self-
balancing accounts that comprise its assets, liabilities, net position, revenues, and expenses. The
Authority classifies its funds as proprietary.
The Department of Housing and Urban Development Real Estate Assessment Center (REAC)
assesses the financial condition of Public Housing Authorities (PHA’s). To uniformly and consistently
assess the PHA’s REAC requires that PHA’s financial statements conform to Generally Accepted
Accounting Principles (GAAP).
The accounting and financial reporting treatment applied to a fund is determined by its measurement
focus. All proprietary funds are accounted for using the economic resources measurement focus.
With this measurement focus, all assets and liabilities associated with the operation of these funds
are included on the statement of net position. Net position is segregated into invested in capital
assets, restricted and unrestricted components. The statements of revenues, expenses and changes
in fund net position present increases (e.g., revenues) and decreases (e.g., expenses) in total net
position. When both restricted and unrestricted net position is available for use, generally it is the
Authority’s policy to use restricted net position first, then unrestricted net position as needed. The
statements of cash flows present the cash flows for operating activities, investing activities, capital
and related financing activities and non-capital financing activities.
27
Fort Collins Housing Authority
Notes to Financial Statements
December 31, 2015
Cash and Cash Equivalents
Accounts Receivable
Inventory
Inventories are valued at the lower of cost or market using the first-in/first-out method.
Capital Assets
Buildings and Improvements 15 - 30 Years
Furniture and Equipment 3 - 15 Years
Management considers receivables to be fully collectible. If amounts become uncollectible, they are
charged to operations in the period in which that determination is made. Accounting principles
generally accepted in the United States of America require that the allowance method be used to
recognize bad debts; however, the effect of using the direct write-off method is not materially different
from the results that would have been obtained under the allowance method.
The Authority reviews its long-lived assets for impairment whenever events or changes in
circumstances indicate that the carrying value of the asset may not be recoverable. Recoverability is
measured by a comparison of the carrying amount of the asset to the future net undiscounted cash
flow expected to be generated and any estimated proceeds from the eventual disposition. If the long-
lived assets are considered to be impaired, the impairment to be recognized is measured at the
amount by which the carrying amount of the asset exceeds the fair value as determined from an
appraisal, discounted cash flows analysis, or other valuation technique. There were no impairment
losses recognized during 2015 or 2014.
The Authority's cash deposits can only be invested in HUD approved investments: direct obligations
of the Federal Government backed by the full faith and credit of the United States, obligations of
government agencies, securities of government sponsored agencies, demand and savings deposits,
time deposits, repurchase agreements, and other securities approved by HUD.
For the purpose of the statement of cash flows, the Authority considers cash deposits and highly
liquid investments with a maturity of three months or less when purchased to be cash equivalents.
Certificates of deposit are also considered to be cash equivalents due to their highly liquid nature and
insignificant risk of change in value due to changes in interest rates. The Authority uses the
certificate of deposits as part of the entities cash management.
Land, buildings and improvements, and equipment are recorded at cost, including indirect
development costs. The Authority uses a capitalization threshold of $5,000. Donated fixed assets are
valued at their estimated fair value on the date donated. The costs of normal maintenance and
repairs that do not add to the value of the asset or materially extend lives are not capitalized.
Depreciation is computed using the straight-line method over the estimated useful lives of the assets
as follows:
28
Fort Collins Housing Authority
Notes to Financial Statements
December 31, 2015
Investment in Tax Credit Partnerships and Future Developments
Operating Revenues and Expenses
Fraud Recovery
Developer Fee Revenue Recognition
Restricted and Unrestricted Resources
Accumulated Unpaid Vacation Leave
Unearned Revenues
The Authority earns development fees based on agreements with certain partnerships for the
development of affordable housing. Developer fees are generally recognized under the percentage-
of-completion method and in accordance with the corresponding development agreement.
The Authority considers all revenues and expenses (including HUD intergovernmental revenues and
expenses) as operating items with the exception of interest expense, interest revenue, and gain/loss
on disposal of capital assets which are considered non-operating for financial reporting purposes.
The Authority applies restricted resources first when an expense is incurred for purposes for which
both restricted and unrestricted net position is available.
Investments in future developments represents costs incurred by the Authority for future
developments and are recorded at cost until a project is established.
Accumulated unpaid vacation leave is accrued in the period incurred. Employees are permitted to
accumulate a limited amount of vacation benefits. Upon separation or termination from the Authority,
an employee will not be paid time in excess of 240 hours.
As of December 31, 2015, unearned revenue consisted of $18,607 of prepaid rent from tenants.
HUD requires the Authority to account for monies recovered from tenants who committed fraud or
misrepresentation in the application process for rent calculations and now owe additional rent for
prior periods or retroactive rent as fraud recovery. The monies recovered are shared by HUD and the
local authority.
Investments in tax credit partnerships are accounted for under the equity method. Investments are
stated at cost, plus (minus) the Authority’s equity in net earnings (losses) since acquisition, less any
distributions received.
29
Fort Collins Housing Authority
Notes to Financial Statements
December 31, 2015
Components of Net Position
Components of net position include the following:
Business and Credit Risk
Budgetary
Accounting Estimates
Subsequent Events
Comparative Totals
Subsequent events have been evaluated through May 9, 2016, which is the date the financial
statements were available to be issued, and there are no subsequent events requiring disclosure.
The financial statements and related footnotes include certain prior year summarized comparative
information in total. Such information does not include sufficient detail to constitute a presentation in
conformity with generally accepted accounting principles. Accordingly, such information should be
read in conjunction with the Authority's financial statements for the year ended December 31, 2014,
from which the summarized information was derived.
• Unrestricted Net Position – Consists of assets and deferred outflows less related liabilities and
deferred inflows reported in the basic statement of net position that are not subject to restraints on
their use.
• Net Investment in Capital Assets – Consists of capital assets, net of accumulated depreciation
and reduced by outstanding balances of debt issued to finance the acquisition, improvement, or
construction of those assets.
• Restricted Net Position – Consists of assets and deferred outflows less related liabilities and
deferred inflows reported in the basic statement of net position that are subject to restraints on
their use by HUD.
The Authority provides housing on account to clients which are located primarily in Fort Collins,
Colorado.
The Authority’s annual budgets are the annual contracts, which are with, and approved by, HUD. No
budget to actual statements are presented in this report, as housing authorities are not legally
required to adopt a budget under the Local Government Budget Law of Colorado.
The preparation of financial statements in conformity with generally accepted accounting principles
requires management to make estimates and assumptions that affect the reported amounts of assets
and liabilities at the date of the financial statements and reported amounts of revenues and expenses
during the reporting period. Actual results could differ from those estimates.
30
Fort Collins Housing Authority
Notes to Financial Statements
December 31, 2015
Note 2 - Deposits and Investments
Primary Government
Deposits
Custodial Credit Risk
Interest Rate Risk
Investments
• Obligations of the United States and certain U.S. government agency securities
• Insured Money Market Deposit Accounts
• Municipal Depository Fund
• Super NOW Accounts
• Certificates of Deposit
• Repurchase Agreements
The Colorado Public Deposit Protection Act (PDPA) requires that all units of local government
deposit cash in eligible public depositories. Eligibility is determined by state regulations. Amounts on
deposit in excess of federal insurance levels must be collateralized by eligible collateral as
determined by the PDPA. The institution is allowed to create a single collateral pool for all public
funds held. The pool is to be maintained by another institution or held in trust for all the uninsured
public deposits as a group. The market value of the collateral must be at or equal to 102% of the
uninsured deposits. The general depository agreement required by annual contract with HUD has
additional collateral requirements, which the Authority met in 2015.
At December 31, 2015, the Authority’s carrying amount of deposits was $3,665,453 and the bank
balance was $3,955,620. Of the bank balances, $250,000 was covered by Federal Depository
Insurance. Of the remaining balances for 2015, $3,705,620 was collateralized with securities held by
a pledging financial institution’s agent in the government’s name.
Interest rate risk is the risk that changes in interest rates of certificates of deposit will adversely affect
the fair value of investments. All certificates of deposit held by the Authority as of December 31,
2015, mature within 1 year.
The Authority’s investment policy allows for investments to be solely in securities approved by HUD.
Authorized investment instruments are as follows:
Custodial credit risk is the risk that, in the event of a bank failure, the Authority’s deposits may not be
returned to it. As of December 31, 2015, the Authority's deposits were not exposed to custodial credit
risk, as all deposits were insured by the Federal Deposit Insurance Corporation (FDIC) and
collateralized in accordance with PDPA.
31
Fort Collins Housing Authority
Notes to Financial Statements
December 31, 2015
• Sweep Accounts
• Separate Trading of Registered Interest and Principal of Securities (STRIPS)
• Mutual Funds that meet HUD criteria
Discretely Presented Component Units
Village on Elizabeth
Custodial Credit Risk
Village on Stanford
Custodial Credit Risk
Redtail Ponds PSH
Custodial Credit Risk
Village on Plum
Custodial Credit Risk
Custodial credit risk is the risk that, in the event of a bank failure, Redtail Pond PSH’s deposits may
not be returned to it. As of December 31, 2015, Redtail Ponds PSH's deposits were not exposed to
custodial credit risk, as all deposits were insured by the FDIC.
The Authority’s deposit and investment policy specifies that all investments are to be adequately
collateralized if deposits and investments exceed federal insurance limits. The policy does not
formally address credit risk, interest rate risk, or foreign currency risk associated with investments.
Custodial credit risk is the risk that, in the event of a bank failure, VOE’s deposits may not be
returned to it. As of December 31, 2015, VOE's deposits were not exposed to custodial credit risk, as
all deposits were insured by the FDIC.
Custodial credit risk is the risk that, in the event of a bank failure, VOS’s deposits may not be
returned to it. As of December 31, 2015, VOS's carrying amount of deposits and bank balance was
$739,935. Of the bank balances, $250,000 was covered by Federal Depository Insurance. The
remaining balance of $489,935 was not insured and is exposed to custodial credit risk. Management
does not believe that the deposits are exposed to a significant level of risk.
Custodial credit risk is the risk that, in the event of a bank failure, VOP’s deposits may not be
returned to it. As of December 31, 2015, VOP's carrying amount of deposits and bank balance was
$553,536. Of the bank balances, $250,000 was covered by Federal Depository Insurance. The
remaining balance of $303,536 was not insured and is exposed to custodial credit risk. Management
does not believe that the deposits are exposed to a significant level of risk.
32
Fort Collins Housing Authority
Notes to Financial Statements
December 31, 2015
Note 3 - Restricted Cash
Note 4 - Notes Receivable
$ 2,920,578
1,293,530
80,158
1,472,977
Other notes receivable 20,710
5,787,953
Less current portion (34,138)
$ 5,753,815
Restricted cash consists of cash and cash equivalents balances restricted for use in the Housing
Choice Voucher program, held in escrow in order to comply with HUD requirements for the home
ownership program and held for tenant security deposits.
Village on Elizabeth, LLLP - Note receivables with stated interest
rates of 3.50% - 5.31% per annum, yearly payments to the
extent of available cash flow with the entire balance due
December 2037 and collateralized by real property located at
2209 - 2217 West Elizabeth, Fort Collins, Colorado.
Village on Stanford, LLLP - Note receivable with a stated interest
rate of 3.57% per annum, yearly payments to the extent of
available cash flow with the entire balance due December 2037
and collateralized by a deed of trust, security agreement,
financing statement and assignment of rents and revenues.
Villages, LTD - Note receivable with a stated interest rate of
4.80% per annum, monthly payments of $2,079, including
principal and interest with the entire balance due October 2020
and collateralized by a deed of trust.
Redtail Ponds Permanent Supportive Housing, LLLP - Notes
receivable with stated interest rates ranging from 2.50% to
4.00% per annum, yearly payments to the extent of available
cash flow with the entire balance due January 2045 and
collateralized by a deed of trust and an agreement of restrictive
covenants on the property.
33
Fort Collins Housing Authority
Notes to Financial Statements
December 31, 2015
Note 5 - Capital Assets
Primary Government
Balance Balance
01/01/15 Additions Deletions 12/31/15
Non-Depreciable
Land $6,082,059 $- $ - $ 6,082,059
6,082,059 - - 6,082,059
Depreciable
Buildings and improvements 26,933,550 20,477 - 26,954,027
Furniture and equipment 1,203,555 - - 1,203,555
Total depreciable capital assets 28,137,105 20,477 - 28,157,582
Less: Accumulated Depreciation
Buildings and improvements (6,282,790) (928,142) - (7,210,932)
Furniture and equipment (973,302) (36,157) - (1,009,459)
Total accumulated depreciation (7,256,092) (964,299) - (8,220,391)
Net Depreciable Capital Assets 20,881,013 (943,822) - 19,937,191
Total $ 26,963,072 $ (943,822) $ - $ 26,019,250
Discretely Presented Component Units
Village on Elizabeth
Balance Balance
01/01/15 Additions Deletions 12/31/15
Non-Depreciable
Land $ 640,000 $- $ - $ 640,000
Construction in progress 13,377 - (13,377) -
653,377 - (13,377) 640,000
Depreciable
Buildings and improvements 4,598,579 13,378 - 4,611,957
Furniture and equipment 562,755 - - 562,755
Total depreciable capital assets 5,161,334 13,378 - 5,174,712
Total accumulated depreciation (1,591,129) (191,080) - (1,782,209)
Net Depreciable Capital Assets 3,570,205 (177,702) - 3,392,503
Total $ 4,223,582 $(177,702) $ - $ 4,032,503
The following is a summary of capital assets for the year ended December 31, 2015:
34
Fort Collins Housing Authority
Notes to Financial Statements
December 31, 2015
Village on Stanford
Balance Balance
01/01/15 Additions Deletions 12/31/15
Non-Depreciable
Land $ 998,437 $ - $ - $ 998,437
Depreciable
Buildings and improvements 8,529,536 39,230 - 8,568,766
Land improvements 66,615 - - 66,615
Furniture and equipment 195,271 - - 195,271
Total depreciable capital assets 8,791,422 39,230 - 8,830,652
Total accumulated depreciation (1,863,843) (342,664) - (2,206,507)
Net Depreciable Capital Assets 6,927,579 (303,434) - 6,624,145
Total $ 7,926,016 $(303,434) $ - $ 7,622,582
Redtail Ponds PSH
Balance Balance
01/01/15 Additions Deletions 12/31/15
Non-Depreciable
Land $ 862,000 $ - $ - $ 862,000
Construction in progress 7,555,724 - (7,555,724) -
8,417,724 - (7,555,724) 862,000
Depreciable
Buildings and improvements - 9,487,623 - 9,487,623
Land improvements - 1,220,031 - 1,220,031
Furniture and equipment - 422,884 - 422,884
Total depreciable capital assets - 11,130,538 - 11,130,538
Total accumulated depreciation - (405,627) - (405,627)
Net Depreciable Capital Assets - 10,724,911 - 10,724,911
Total $ 8,417,724 $10,724,911 $ - $ 11,586,911
35
Fort Collins Housing Authority
Notes to Financial Statements
December 31, 2015
Village on Plum
Balance Balance
01/01/15 Additions Deletions 12/31/15
Non-Depreciable
Land $ 543,454 $ - $ - $ 543,454
Construction in progress 1,945,695 - (1,945,695) -
2,489,149 - (1,945,695) 543,454
Depreciable
Buildings and improvements 6,576,546 6,250,182 - 12,826,728
Land improvements - 1,411,097 - 1,411,097
Furniture and equipment - 296,461 - 296,461
Total depreciable capital assets 6,576,546 7,957,740 - 14,534,286
Less: Accumulated Depreciation
Buildings and improvements (40,596) (399,576) - (440,172)
Total accumulated depreciation (40,596) (399,576) - (440,172)
Net Depreciable Capital Assets 6,535,950 7,558,164 - 14,094,114
Total $ 9,025,099 $ 7,558,164 $ (1,945,695) $ 14,637,568
Note 6 - Long-Term Debt
During the year ended December 31, 2015, the following changes occurred in long-term debt:
Primary Government
Balance Balance Due Within
January 1 Increases Decreases December 31 One Year
Notes Payable $ 23,242,982 $ 510,728 $ (133,663) $ 23,620,047 $ 2,462,284
Discretely Presented Component Units
Village on Elizabeth
Balance Balance Due Within
January 1 Increases Decreases December 31 One Year
Notes Payable $ 3,864,977 $ 107,298 $ (13,907) $ 3,958,368 $ 14,745
36
Fort Collins Housing Authority
Notes to Financial Statements
December 31, 2015
Village on Stanford
Balance Balance Due Within
January 1 Increases Decreases December 31 One Year
Notes Payable $5,322,846 $ - $ (9,296) $ 5,313,550 $ 29,179
Redtail Ponds PSH
Balance Balance Due Within
January 1 Increases Decreases December 31 One Year
Notes Payable $ 1,776,895 $534,263 $ - $2,311,158 $ -
Village on Plum
Balance Balance Due Within
January 1 Increases Decreases December 31 One Year
Notes Payable $ 7,523,659 $4,878,921 $ - $12,402,580 $ -
Notes payable as of December 31, 2015, consisted of the following:
Primary Government
$ 80,159
208,763
500,000
659,171
Redwood Land Acquisition - Note payable due to the Seton Enablement Fund
with a stated interest rate of 3.00% per annum, due in semi-annual principal and
interest installments of $8,000 with the remaining principal balance due in a
balloon payment at the maturity date of November 2017 and secured by a deed
of trust.
Taft Hill Office Remodel - Note payable due to First Bank with a stated interest
rate of 4.80% per annum, due in monthly principal and interest installments of
$2,087 with a maturity date of October 2020 and secured by a deed of trust and
all deposit accounts held by First Bank Holding Company.
Mountain Office Remodel - Note payable due to First Bank with a stated
interest rate of 3.00% per annum, due in monthly principal and interest
installments of $5,534 with a maturity date of October 2027 and secured by a
deed of trust and all deposit accounts held by First Bank Holding Company.
Village on Redwood Pre-Development - Short-term note payable due to
Villages, Ltd with a stated interest rate of 3.25% per annum, with the entire
principal balance plus all accrued interest due at the maturity date of December
31, 2017 and secured by a deed of trust.
37
Fort Collins Housing Authority
Notes to Financial Statements
December 31, 2015
19,182,751
1,104,995
1,884,208
$ 23,620,047
Discretely Presented Component Units
Village on Elizabeth
$ 843,370
194,420
2,288,140
3,325,930
Long-term accrued interest due to FCHA added to principal balance 632,438
$ 3,958,368
VOCC - Note payable due to First Bank with a variable interest rate equal to the
greater of Wall Street Journal Prime Rate or 3.25% per annum, due in monthly
interest only installments with a maturity date of January 2017 and secured by
deeds of trust and all deposit accounts held by First Bank Holding Company.
VOCC - Note payable due to the Villages, LTD with a stated interest rate of
1.00% per annum, due in annual interest only installments from cash flow or
proceeds of capital transactions with the entire balance due at the maturity date
of December 2042 and secured by a deed of trust.
VOCC - Note payable due to the Colorado Division of Housing with a stated
interest rate of 1.00% per annum, due in monthly principal and interest
installments of $6,433 with the remaining principal balance due at the maturity
date of December 2016 and secured by a deed of trust.
Mortgage note payable with a stated interest rate of 7.20% per annum, due in
monthly principal and interest installments of $5,876 with a maturity date of June
2026 and secured by a mortgage on substantially all assets and an assignment
of rent.
Mortgage note payable with a stated interest rate of 3.00% per annum, due in
monthly principal and interest installments of $866 with a maturity date of June
2026 and secured by a mortgage on all property and equipment and an
assignment of rent.
Mortgage notes payable due to the Fort Collins Housing Authority (FCHA) with
stated interest rates ranging from 3.50% to 5.31% per annum, due in annual
installments from cash flow or proceeds of capital transactions with a maturity
date of December 2037 and secured by a mortgage on substantially all assets
and an assignment of rent.
38
Fort Collins Housing Authority
Notes to Financial Statements
December 31, 2015
Village on Stanford
$ 1,821,249
1,293,530
759,706
219,534
230,466
989,065
$ 5,313,550
Mortgage note payable due to Villages, LTD with a stated interest rate of 3.57%
per annum, due in annual installments from cash flow or proceeds of capital
transactions with a maturity date of December 2038 and secured by a mortgage
on substantially all assets and an assignment of rent.
CDBG mortgage note payable with a stated interest rate of 0.00% per annum,
due in annual installments from cash flow or proceeds of capital transactions
with a maturity date of December 2038 and secured by a mortgage on
substantially all assets and an assignment of rent.
CDBG mortgage note payable with a stated interest rate of 0.00% per annum,
due in annual installments from cash flow or proceeds of capital transactions
with a maturity date of December 2038 and secured by a mortgage on
substantially all assets and an assignment of rent.
Tax Credit Assistance Program (TCAP) loan payable from the Colorado Housing
and Finance Authority with a stated interest rate of 0.00% per annum, with the
principal balance due on the maturity date of February 2029 and secured by a
second mortgage on substantially all assets and an assignment of rent.
Mortgage notes payable due to the Fort Collins Housing Authority (FCHA) with
stated interest rates of 3.57% per annum, due in annual installments from cash
flow or proceeds of capital transactions with a maturity date of December 2038
and secured by a mortgage on substantially all assets and an assignment of
rent.
Mortgage note payable with a stated interest rate of 7.85% per annum, due in
monthly principal and interest installments of $12,889 with a maturity date of
December 2028 and secured by a mortgage on substantially all assets and an
assignment of rent.
39
Fort Collins Housing Authority
Notes to Financial Statements
December 31, 2015
Redtail Ponds PSH
$ 1,472,977
838,181
$ 2,311,158
Village on Plum
$ 8,178,584
4,223,996
$ 12,402,580
Primary Government
Principal Interest Total
2016 $ 2,462,284 $ 682,021 $ 3,144,305
2017 19,452,751 36,931 19,489,682
2018 73,666 28,418 102,084
2019 63,855 25,823 89,678
2020 53,038 24,097 77,135
2021-2025 290,948 94,729 385,677
2026-2030 118,510 57,129 175,639
2031-2035 - 53,641 53,641
2036-2040 - 53,641 53,641
2041-2045 1,104,995 21,456 1,126,451
Total $ 23,620,047 $ 1,077,886 $ 24,697,933
Construction loan payable with a stated interest rate of 3.85% per annum and
secured by real property. The loan will convert to permanent financing at the
completion of construction with an anticipated principal balance of $6,100,000
and maturity date of October 2034.
The estimated debt requirements to maturity for the year ending December 31, 2015 are as follows:
Mortgage notes payable due to Villages, LTD with stated interest rates of 3.50%
per annum, due in annual installments from cash flow or proceeds of capital
transactions with maturity dates of October 2044 and secured by a mortgage on
substantially all assets and an assignment of rent.
Mortgage note payable due to Villages, LTD with a stated interest rate of 4.00%
per annum, due in annual installments from cash flow or proceeds of capital
transactions with a maturity date of January 2045 and secured by a mortgage on
substantially all assets and an assignment of rent.
Mortgage notes payable due to the Fort Collins Housing Authority (FCHA) with
stated interest rates ranging from 2.50% to 4.00% per annum, due in annual
installments from cash flow or proceeds of capital transactions with a maturity
date of January 2045 and secured by a deed of trust and an Agreement of
Restrictive Covenants Affecting Real Property.
40
Fort Collins Housing Authority
Notes to Financial Statements
December 31, 2015
Discretely Presented Component Units
Village on Elizabeth
Principal Interest Total
2016 $ 14,745 $ 181,959 $ 196,704
2017 15,639 181,065 196,704
2018 16,594 180,111 196,705
2019 17,613 179,092 196,705
2020 18,701 178,004 196,705
2021-2025 112,623 870,901 983,524
2026-2030 841,875 606,154 1,448,029
2031-2035 - 578,986 578,986
2036-2040 2,920,578 231,594 3,152,172
Total $ 3,958,368 $ 3,187,866 $ 7,146,234
Village on Stanford
Principal Interest Total
2016 $ 29,179 $ 217,580 $ 246,759
2017 10,884 216,361 227,245
2018 11,783 215,462 227,245
2019 12,755 214,489 227,244
2020 13,398 213,846 227,244
2021-2025 87,534 1,048,702 1,136,236
2026-2030 2,664,874 755,216 3,420,090
2031-2035 - 362,916 362,916
2036-2040 2,483,143 217,750 2,700,893
Total $ 5,313,550 $ 3,462,322 $ 8,775,872
Redtail Ponds PSH
Principal Interest Total
2016 $ - $ 75,775 $ 75,775
2017 - 75,775 75,775
2018 - 75,775 75,775
2019 - 75,775 75,775
2020 - 75,775 75,775
2021-2025 - 378,875 378,875
2026-2030 - 378,875 378,875
2031-2035 - 378,875 378,875
2036-2040 - 378,875 378,875
2041-2045 2,311,158 378,875 2,690,033
Total $ 2,311,158 $ 2,273,250 $ 4,584,408
41
Fort Collins Housing Authority
Notes to Financial Statements
December 31, 2015
Village on Plum
Principal Interest Total
2016 $ - $ 456,914 $ 456,914
2017 - 456,914 456,914
2018 - 456,914 456,914
2019 - 456,914 456,914
2020 - 456,914 456,914
2021-2025 - 2,284,570 2,284,570
2026-2030 - 2,284,570 2,284,570
2031-2035 8,178,584 1,917,215 10,095,799
2036-2040 - 710,190 710,190
2041-2045 4,223,996 532,643 4,756,639
Total $ 12,402,580 $ 10,013,758 $ 22,416,338
Note 7 - Construction Loan Payable - Discretely Presented Component Units
Note 8 - Restricted Net Position
Note 9 - Annual Contributions Contract
As of December 31, 2015, restricted net position consisted of $166,313 in Section 8 HAP received
but not yet paid to eligible individuals.
The Authority has an annual contributions contract for Section 8 HAP and adjustments vary based on
requirements. The maximum contract was $8,665,010 for the year ended December 31, 2015.
Redtail Ponds Permanent Supportive Housing, LLLP has a short-term construction loan payable with
US Bank with a variable interest rate based on the 30-day LIBOR rate plus 2.25%, at 2.675% per
annum as of December 31, 2015, and interest only payments during the construction period. The
loan has a maximum amount of $8,985,300 or 80% loan to costs and an original maturity date of
September 2015, which was extended to March 2016. The loan is secured by a first mortgage on all
real property and improvements on the property, assignment of leases, rents and other income,
assignments of all service, construction and architect's contracts and an assignment of capital
contributions. During March 2016, the loan was paid in full and converted to permanent financing with
the Colorado Housing and Finance Authority. As of December 31, 2015, the outstanding principal
balance was $8,786,712 and accrued interest payable was $18,916.
42
Fort Collins Housing Authority
Notes to Financial Statements
December 31, 2015
Note 10 - Guarantees
Note 11 - Related Party Transactions
Management Fees and Reimbursement of Expenses
The Authority is also a general partner in Village on Plum, LLLP, a 95 unit low income housing tax
credit project. The Authority provides management services to the project. Under the management
agreement, the Authority is to be paid management fees totaling 8% of net rental income and
accounting fees totaling 3% of net rental income on the project. During the year ended December 31,
2015, the Authority received $100,541 for these fees.
The Authority is also a general partner in Village on Elizabeth, LLLP, a 48 unit low income housing
tax credit project. The Authority provides management services to the project. Under the
management agreement, the Authority is to be paid management fees totaling 7.5% of gross
collections on the project. During the year ended December 31, 2015, the Authority received $31,218
in property management fees.
The Authority is also a general partner in Village on Stanford, LLLP, an 82 unit low income housing
tax credit project. The Authority provides management services to the project. Under the
management agreement, the Authority is to be paid management fees totaling 8% of gross rents of
the project. During the year ended December 31, 2015, the Authority received $51,365 in property
management fees.
The Authority, through its ownership of Housing Catalyst, LLC, is an administrative general partner in
Provincetowne Green LLLP, an 85 unit low income housing tax credit project. The Authority has
entered into a guaranty agreement with Provincetowne Green LLLP, in which the Authority has
guaranteed obligations of the project up to $1,400,000. The guarantee is in effect until the
Stabilization Date of the project, as defined by the agreement. The Stabilization Date was expected
to be achieved in calendar year 2013; however, during the year it was discovered that there were
several construction defects regarding the foundations of the buildings. The guarantee on the project
remains in effect while the identified construction defects are repaired utilizing funds from a
settlement with the contractors on the project. At this time, the Authority is not expected to have to
perform on the guarantee.
The Authority is also a general partner in Redtail Ponds PSH, LLLP, a 60 unit low income housing tax
credit project. The Authority provides management services to the project. Under the management
agreement, the Authority is to be paid management fees totaling 8% of net rental income and
accounting fees totaling 3% of net rental income on the project. During the year ended December 31,
2015, the Authority received $38,589 for these fees.
43
Fort Collins Housing Authority
Notes to Financial Statements
December 31, 2015
Notes Receivable
Investment in Tax Credit Partnerships
As of December 31, 2015, the Authority was owed $672,474 and $1,299,637 in developer fees from
Redtail Ponds Permanent Supportive Housing, LLLP and Village on Plum, LLLP, respectively, related
to the construction and development of the projects. Of these amounts, the Authority expects to
receive $208,548 from Redtail Ponds and $1,053,584 from VOP during 2016. The remaining
balances of $463,926 and $246,053 will be paid to the Authority from future available cash flows of
the projects.
The Authority is reimbursed for various office expenses, caretaker payroll and benefits, and other
maintenance costs incidental to the operations of VOE, VOS, Redtail Ponds and VOP. During the
year ended December 31, 2015, the Authority received approximately $120,600 from VOE, $165,000
from VOS, $317,900 from Redtail Ponds and $271,700 from VOP for these expenses. As of
December 31, 2015, the Authority owed $3,989 to VOE, $6,312 to VOS, $14,960 to Redtail Ponds
and $7,119 to VOP for overpayment of fees and expenses.
As of December 31, 2015, the Authority was owed $1,472,977 on two notes receivable from Redtail
Ponds Permanent Supportive Housing, LLLP with stated interest rates ranging from 2.50% per
annum to 4.00% per annum (see Note 4). Interest income from Redtail Ponds for the year ended
December 31, 2015, was $39,987.
As of December 31, 2015, the Authority was owed $2,920,578 on various notes receivable from VOE
with interest rates ranging from 3.50% per annum to 5.31% per annum (see Note 4). In addition, the
Authority was owed accrued interest of $36,076 from VOE. Interest income from VOE for the year
ended December 31, 2015, was $112,403.
As of December 31, 2015, the Authority was owed $1,293,530 on two notes receivable from VOS
with stated interest rates of 3.57% per annum (see Note 4). In addition, the Authority was owed
accrued interest of $85,986 from VOS. Interest income from VOS for the year ended December 31,
2015, was $47,551.
The Authority is the managing general partner in VOE, VOS, Redtail Ponds and VOP. The Authority's
ownership interest is generally 0.01% or less. As the general partner, the Authority has the day to day
management responsibilities of the partnership. The Authority's equity interest in the partnerships
above was $150,476 as of December 31, 2015.
44
Fort Collins Housing Authority
Notes to Financial Statements
December 31, 2015
Note 12 - Management Services
Note 13 - Risk Management
Note 14 - Pension Plan
Note 15 - Line of Credit
The Authority has an unsecured line of credit with a total available balance of $1,000,000 with First
Bank of Northern Colorado. The line expires on July 6, 2016, and interest on the line of credit is
variable based on the Wall Street Journal Prime Rate plus 1.00% per annum with a current rate of
4.25% per annum. The funds from this line are designated for the temporary financing of Housing
Development projects. As of December 31, 2015, there was no outstanding balance due on the line
of credit.
As mentioned in Note 11, the Authority provides management services for Village on Elizabeth,
LLLP, Village on Stanford, LLLP, Redtail Ponds PSH, LLLP and Village on Plum, LLLP. In addition,
the Authority provides management services for The Villages, Ltd. (Villages), the Wellington Housing
Authority (WHA), and the Northern Hotel. The Villages, WHA and the Northern Hotel pay for all direct
charges and then reimburse the Authority through a management fee agreement for the salaries,
employee benefits, and other overhead items. The contract with the Northern Hotel ended during
January 2016 due to the sale of the building.
The Authority is exposed to various risks of loss related to torts; theft of, damage to and destruction
of assets; errors and omissions; injuries to employees and natural disasters. The Authority carries
commercial insurance for the risks of loss, including worker's compensation and employee accident
insurance. Settled claims resulting from these risks have not exceeded commercial insurance
coverage in any of the past three fiscal years. Limits of insurance coverage have been adjusted
annually.
The Authority provides pension benefits for all of its permanent employees through a defined
contribution plan. In a defined contribution plan, benefits depend solely on amounts contributed to the
plan plus investment earnings. The plan requires all permanent employees to contribute two and a
half percent of pre tax salary and the employer contributes five percent of basic salary. For the years
ended December 31, 2015, 2014 and 2013, the cost of the plan totaled $166,675, $157,247 and
$136,384, respectively.
45
Fort Collins Housing Authority
Notes to Financial Statements
December 31, 2015
Note 16 - Conduit Debt
Note 17 - CDBG and HOME Grants
Note 18 - Commitments and Contingencies
The Authority receives significant financial assistance from the United States Government in the form
of contracts and grants. Entitlement to these resources is generally contingent upon compliance with
the terms and conditions of the contract or grant agreements and applicable federal regulations,
including the expenditure of the resources for eligible purposes. Substantially all federal grants and
contracts are subject to a financial and compliance audit under federal regulations. Disallowed costs
as a result of compliance audits become a liability of the Authority. Management believes that the
potential for a material liability due to future audit disallowance is remote.
The Authority received CDBG and HOME grants from the City of Fort Collins (City) for the acquisition
of land for the Redtail Ponds Permanent Supportive Housing project. The grant funds were loaned to
Redtail Ponds PSH partnership with a maturity date of 2045. The CDBG and HOME grants are
restricted for a period of time. The Authority is to repay the City upon the sale of property that was
acquired, constructed or improved with the CDBG and HOME grant funds through the restricted
period. As of December 31, 2015 and 2014, the Authority had total grant income of $942,319 subject
to restriction.
In September of 2011, the Authority arranged for tax exempt financing in the amount of $2,737,000
for Neighbor to Neighbor, a local housing provider. The debt has a final maturity date of September
9, 2026 and is secured by real estate. The Authority in no way guarantees the loan or has any liability
for the loan. Accordingly, the loan is not reported as liabilities in the Authority's financial statements.
Neighbor to Neighbor pays the principal and interest directly to Home State Bank, paid a fee for the
refinancing of the loan, and pays the Authority a yearly fee for arranging the loan. As of December
31, 2015, the outstanding balance of the debt was $2,484,010.
* * * * * * * * * *
See accompanying Report of Independent Auditors 46
Fort Collins Housing Authority
Combining Statement of Net Position
December 31, 2015
Housing Larimer County
Public Choice Housing State and Housing
Housing Vouchers Authority Local Development
Assets
Cash and cash equivalents $ 612,391 $ 296,814 $ 8,326 $ (9,147) $ 1,268,554
Restricted cash and
cash equivalents 46,718 194,923 21,942 - 152,395
Accounts receivable
Grants - - - 11,830 -
Tenants 7,673 - - - 23,366
Developer fees, current - - - - 1,262,132
Other 3,172 1,292 - - -
Accrued interest - - - - 122,062
Notes receivable - current - - - - 12,658
Prepaid expenses 728 - - - 1,621
Inventory - - - - -
Due from other funds - - - - -
Due from other agencies - - - - 20,962
Total current assets 670,682 493,029 30,268 2,683 2,863,750
Non-depreciable capital assets 4,518,159 - - - 1,524,400
Depreciable capital assets, net 1,187,053 - - - 18,013,903
Developer fees receivable, long-term - - - - 709,979
Notes receivable, net - - - - 5,695,137
Investment in tax credit partnerships - - - - 150,476
Investment in future developments - - - - 802,279
Total Assets $ 6,375,894 $ 493,029 $ 30,268 $ 2,683 $ 29,759,924
Liabilities and Net Position
Liabilities
Line of credit payable $ - $ - $ - $ - $ -
Accounts payable 20,133 - 17 - 29,069
Accrued liabilities 10,906 793 1,371 - -
Accrued compensation 13,533 34,312 - 96 59,148
Accrued interest payable - - - - 61,317
Unearned revenues 3,892 - - - 14,715
Due to other funds 1,633 2,201 - 22 145,195
Due to other agencies - - - - -
Tenant security deposits 27,460 - - - 133,580
Money held in escrow 19,258 89,053 15,149 - -
Notes and mortgages
payable - current - - - - 2,394,018
Total current liabilities 96,815 126,359 16,537 118 2,837,042
Notes and mortgages
payable, net - - - - 20,486,699
Total Liabilities 96,815 126,359 16,537 118 23,323,741
Net Position
Net investment in capital assets 5,705,212 - - - (2,842,414)
Restricted - housing
assistance payments - 105,870 13,731 - -
Unrestricted 573,867 260,800 - 2,565 9,278,597
Total Net Position 6,279,079 366,670 13,731 2,565 6,436,183
Total Liabilities and Net Position $ 6,375,894 $ 493,029 $ 30,268 $ 2,683 $ 29,759,924
See accompanying Report of Independent Auditors 47
Fort Collins Housing Authority
Combining Statement of Net Position
December 31, 2015
Elimination of
Section 8 Intercompany Total
Management HUD Grant SRO COCC Total Activity (Memo Only)
$ 1,036,650 $ (14,387) $ 46,984 $ - $ 3,246,185 $ - $ 3,246,185
3,279 - - - 419,257 - 419,257
59,606 20,219 - - 91,655 - 91,655
- - - - 31,039 - 31,039
- - - - 1,262,132 - 1,262,132
108,958 - - - 113,422 - 113,422
- - - - 122,062 - 122,062
21,480 - - - 34,138 - 34,138
65,004 - - - 67,353 - 67,353
57,182 - - - 57,182 - 57,182
149,110 - - - 149,110 (149,110) -
11,671 - - - 32,633 - 32,633
1,512,940 5,832 46,984 - 5,626,168 (149,110) 5,477,058
39,500 - - - 6,082,059 - 6,082,059
736,235 - - - 19,937,191 - 19,937,191
- - - - 709,979 - 709,979
58,678 - - - 5,753,815 - 5,753,815
- - - - 150,476 - 150,476
- - - - 802,279 - 802,279
$ 2,347,353 $ 5,832 $ 46,984 $ - $ 39,061,967 $ (149,110) $ 38,912,857
$ - $ - $ - $ - $ - $ - $ -
58,088 - - - 107,307 - 107,307
102,001 - - - 115,071 - 115,071
307,079 5,832 213 - 420,213 - 420,213
1,703 - - - 63,020 - 63,020
- - - - 18,607 - 18,607
- - 59 - 149,110 (149,110) -
41,010 - - - 41,010 - 41,010
- - - - 161,040 - 161,040
3,279 - - - 126,739 - 126,739
68,266 - - - 2,462,284 - 2,462,284
581,426 5,832 272 - 3,664,401 (149,110) 3,515,291
671,064 - - - 21,157,763 - 21,157,763
1,252,490 5,832 272 - 24,822,164 (149,110) 24,673,054
116,565 - - - 2,979,363 - 2,979,363
- - 46,712 - 166,313 - 166,313
978,298 - - - 11,094,127 - 11,094,127
1,094,863 - 46,712 - 14,239,803 - 14,239,803
$ 2,347,353 $ 5,832 $ 46,984 $ - $ 39,061,967 $ (149,110) $ 38,912,857
See accompanying Report of Independent Auditors 48
Fort Collins Housing Authority
Combining Statement of Revenues, Expenses and Changes in Net Position
Year Ended December 31, 2015
Housing Larimer County
Public Choice Housing State and Housing
Housing Vouchers Authority Local Development
Operating Revenues
HUD PHA grants $ 589,078 $ 8,525,518 $ 738,841 $ - $ -
Other grants - - - 70,339 424,758
Rental income 264,880 - - - 2,997,472
Administration fees -----
Developer fees ---- 2,361,742
Other 10,953 6,699 206 - 28,028
Total Operating Revenues 864,911 8,532,217 739,047 70,339 5,812,000
Operating Expenses
Housing assistance payments - 7,796,262 730,934 68,373 -
Administrative salaries
and benefits 143,642 251,636 23,619 3,631 775,643
Maintenance salaries
and benefits 33,806 - - - 645
Other administrative 212,212 415,982 40,812 3,911 930,124
Regular and extraordinary
maintenance 333,757 - - - 720,653
Depreciation 117,203 - -- 776,153
Utilities 125,191 - - - 153,443
Insurance 31,479 - - - 83,145
Payments in lieu of taxes 10,906 ----
Other 15,729 - - - 41,543
Total Operating Expenses 1,023,925 8,463,880 795,365 75,915 3,481,349
Operating Income (Loss) (159,014) 68,337 (56,318) (5,576) 2,330,651
Non-Operating Revenues
(Expenses)
Interest income 708 438 - 1 200,133
Interest expense ---- (673,271)
Other financing costs-----
Gain on sale of capital assets - - - - -
Total Non-Operating
Revenues (Expenses) 708 438 - 1 (473,138)
Income (Loss) Before
Contributions (158,306) 68,775 (56,318) (5,575) 1,857,513
HUD Capital Contributions 118,951 - - - -
Change in Net Position (39,355) 68,775 (56,318) (5,575) 1,857,513
Net Position-Beginning of Year 6,318,434 297,895 70,049 8,140 4,578,670
Net Position-End of Year $ 6,279,079 $ 366,670 $ 13,731 $ 2,565 $ 6,436,183
See accompanying Report of Independent Auditors 49
Fort Collins Housing Authority
Combining Statement of Revenues, Expenses and Changes in Net Position
Year Ended December 31, 2015
Elimination of
Section 8 Intercompany Total
Management HUD Grant SRO COCC Total Activity (Memo Only)
$ - $ 201,955 $ 147,472 $ - $ 10,202,864 $ - $ 10,202,864
287,175 - - - 782,272 - 782,272
---- 3,262,352- 3,262,352
950,155 - - 2,310,558 3,260,713 (1,886,086) 1,374,627
---- 2,361,742- 2,361,742
18,894 - - 31,627 96,407 (1,016) 95,391
1,256,224 201,955 147,472 2,342,185 19,966,350 (1,887,102) 18,079,248
- - 127,086 - 8,722,655 - 8,722,655
34,272 201,955 8,170 1,412,983 2,855,551 - 2,855,551
581,730 - - 186,192 802,373 - 802,373
159,015 - 10,286 649,207 2,421,549 (1,525,928) 895,621
53,343 - - 57,046 1,164,799 (361,174) 803,625
70,943 - - - 964,299 - 964,299
- - - 16,429 295,063 - 295,063
11,955 - - 20,328 146,907 - 146,907
- - - - 10,906 - 10,906
287,175 - - - 344,447 - 344,447
1,198,433 201,955 145,542 2,342,185 17,728,549 (1,887,102) 15,841,447
57,791 - 1,930 - 2,237,801 - 2,237,801
1,276 - 26 - 202,582 - 202,582
(20,880) - - - (694,151) - (694,151)
-------
-------
(19,604) - 26 - (491,569) - (491,569)
38,187 - 1,956 - 1,746,232 - 1,746,232
---- 118,951- 118,951
38,187 - 1,956 - 1,865,183 - 1,865,183
1,056,676 - 44,756 - 12,374,620 - 12,374,620
$ 1,094,863 $ - $ 46,712 $ - $ 14,239,803 $ - $ 14,239,803
Fort Collins Housing Authority
Fort Collins, Colorado
Statistical Section:
Financial Trends
Revenue Capacity
Debt Capacity
Demographic and Economic Information
Operation Information
50
Fort Collins Housing Authority
Statistical Section
Year Ended December 31, 2015
Contents Tables
Financial Trends
1 - 2
Revenue Capacity 3 - 4
Debt Capacity 5 - 6
Demographic and Economic Information 7 - 10
Operating Information 11 - 13
These schedules contain data to help the reader understand how the
information in FCHA's financial report relates to the services FCHA
provides and the activities it performs.
The part of Fort Collins Housing Authority's CAFR presents detailed information as a context for
understanding what the information in the financial statements, note disclosures and required
supplementary information says about FCHA's overall financial health.
These schedules contain trend information to help the reader understand
how FCHA's financial performance and well-being have changed over the
past 10 years.
These schedules contain trend information to help the reader assess
FCHA's most significant revenue sources.
These schedules contain trend information to help the reader assess the
affordability of FCHA's current levels of outstanding debt and ability to issue
additional debt in the future.
These schedules contain trend information of the demographic and
economic indicators to help the reader understand the environment within
which FCHA's financial activities take place.
See accompanying Report of Independent Auditors 51
Fort Collins Housing Authority
Table 1 - Net Position - Last Ten Fiscal Years
(Unaudited)
Net investment Restricted Unrestricted
Fiscal Year in capital assets Net Position Net Position Total
2006 $ 5,542,946 $ 72,225 $ 1,389,465 $ 7,004,636
2007 4,972,066 5,984 3,976,983 8,955,033
2008 5,557,049 3,005 4,284,526 9,844,580
2009 6,113,547 2,053 5,493,795 11,609,395
2010 6,258,078 881,203 6,386,691 13,525,972
2011 6,257,376 1,394,254 6,148,049 13,799,679
2012 6,127,227 830,743 5,650,992 12,608,962
2013 5,983,000 124,601 5,838,915 11,946,516
2014 3,820,752 165,676 8,388,192 12,374,620
2015 2,979,363 166,313 11,094,127 14,239,803
Source: Previous years' audits and current year financial statements
See accompanying Report of Independent Auditors 52
Fort Collins Housing Authority
Table 2 - Changes in Net Position - Last Ten Fiscal Years
(Unaudited)
2006 2007 2008 2009
Operating Revenue:
Intergovernmental revenues $ 6,681,633 $ 7,288,624 $ 7,814,252 $ 7,949,883
Net tenant revenue 222,696 285,721 206,154 226,570
Other revenues 1,590,040 2,598,449 2,715,514 3,663,004
8,494,369 10,172,794 10,735,920 11,839,457
Operating Expenses:
Administrative 1,483,642 1,592,201 2,144,043 2,268,006
Utilities 121,478 120,029 140,170 129,749
Ordinary maintenance and operating 1,103,200 920,168 955,686 1,380,520
General expenses 88,685 111,213 78,555 41,740
Depreciation 185,295 192,574 204,817 211,970
Housing assistance payments 5,737,937 6,394,129 6,620,333 6,598,924
8,720,237 9,330,314 10,143,604 10,630,909
Operating Income (Loss) (225,868) 842,480 592,316 1,208,548
Nonoperating Revenue (Expenses):
Investment revenue 265,581 292,965 285,883 305,316
Interest expense (213,945) (216,483) (177,582) (146,554)
Other revenue 686 851,611 - -
Other financing costs - - - -
52,322 928,093 108,301 158,762
Income (Loss) before Capital Contribution (173,546) 1,770,573 700,617 1,367,310
Capital grants 227,441 204,924 160,353 397,990
Change in net assets 53,895 1,975,497 860,970 1,765,300
HUD adjustments 110,711 (25,100) 28,577 -
Net Position, Beginning of the Year 6,840,030 7,004,636 8,955,033 9,844,580
Net Position, End of the Year $ 7,004,636 $ 8,955,033 $ 9,844,580 $ 11,609,880
Source: Previous years' audits and current year financial statements
See accompanying Report of Independent Auditors 53
Fort Collins Housing Authority
Table 2 - Changes in Net Position - Last Ten Fiscal Years
(Unaudited)
2010 2011 2012 2013 2014 2015
$ 8,689,444 $ 9,417,341 $ 8,760,939 $ 9,776,237 $ 9,900,985 $ 10,985,136
266,956 247,980 200,224 3,416,131 3,700,398 3,262,352
3,182,309 1,480,943 1,511,301 1,435,805 1,770,297 3,831,760
12,138,709 11,146,264 10,472,464 14,628,173 15,371,680 18,079,248
2,426,037 2,508,848 2,675,531 3,239,544 3,401,757 3,751,172
138,805 136,511 155,801 382,351 353,235 295,063
1,198,615 804,992 900,628 1,509,999 1,728,885 1,605,998
56,821 51,805 48,204 187,225 240,514 502,260
237,949 202,784 181,422 1,055,276 1,064,166 964,299
7,040,168 7,553,141 7,911,438 8,335,325 8,319,806 8,722,655
11,098,395 11,258,081 11,873,024 14,709,720 15,108,363 15,841,447
1,040,314 (111,817) (1,400,560) (81,547) 263,317 2,237,801
268,582 225,730 161,089 164,195 188,389 202,582
(120,673) (86,963) (34,275) (923,213) (776,907) (694,151)
---- 495,254 -
- - (238,495) (17,380) - -
147,909 138,767 (111,681) (776,398) (93,264) (491,569)
1,188,223 26,950 (1,512,241) (857,945) 170,053 1,746,232
727,869 246,757 321,524 195,499 258,051 118,951
1,916,092 273,707 (1,190,717) (662,446) 428,104 1,865,183
------
11,609,880 13,525,972 13,799,679 12,608,962 11,946,516 12,374,620
$ 13,525,972 $ 13,799,679 $ 12,608,962 $ 11,946,516 $ 12,374,620 $ 14,239,803
See accompanying Report of Independent Auditors 54
Fort Collins Housing Authority
Table 3 - Operating Revenues by Source - Last Ten Fiscal Years
(Unaudited)
Fiscal
Year Amount % of Total Amount % of Total Amount % of Total Total
2006 $ 222,696 2.62% $ 6,681,633 78.66% $ 1,590,040 18.72% $ 8,494,369
2007 285,721 2.81% 7,288,624 71.65% 2,598,449 25.54% 10,172,794
2008 206,154 1.92% 7,814,252 72.79% 2,715,514 25.29% 10,735,920
2009 226,570 1.91% 7,949,883 67.15% 3,663,004 30.94% 11,839,457
2010 266,956 2.20% 8,689,444 71.58% 3,182,309 26.22% 12,138,709
2011 247,980 2.22% 9,417,341 84.49% 1,480,943 13.29% 11,146,264
2012 200,224 1.91% 8,760,939 83.66% 1,511,301 14.43% 10,472,464
2013 3,416,131 23.35% 9,776,237 66.83% 1,435,805 9.82% 14,628,173
2014 3,700,398 24.07% 9,900,985 64.41% 1,770,297 11.52% 15,371,680
2015 3,262,352 18.04% 10,985,136 60.77% 3,831,760 21.19% 18,079,248
Source: Previous years' audits and current year financial statements
Net Tenant Rental Intergovernmental Other
See accompanying Report of Independent Auditors 55
Fort Collins Housing Authority
Table 4 - Non-Operating Revenues by Source - Last Ten Fiscal Years
(Unaudited)
Fiscal
Year Amount % of Total Amount % of Total Amount % of Total Total
2006 $ - 0.00% $ 265,581 99.74% $ 686 0.26% $ 266,267
2007 - 0.00% 292,965 25.60% 851,611 74.40% 1,144,576
2008 - 0.00% 285,883 100.00% - 0.00% 285,883
2009 - 0.00% 305,316 100.00% - 0.00% 305,316
2010 - 0.00% 268,582 100.00% - 0.00% 268,582
2011 - 0.00% 225,730 100.00% - 0.00% 225,730
2012 - 0.00% 161,089 100.00% - 0.00% 161,089
2013 - 0.00% 164,195 100.00% - 0.00% 164,195
2014 - 0.00% 188,389 27.56% 495,254 72.44% 683,643
2015 - 0.00% 202,582 100.00% - 0.00% 202,582
Source: Previous years' audits and current year financial statements
Intergovernmental Investment Other Income
See accompanying Report of Independent Auditors 56
Fort Collins Housing Authority
Table 5 - Debt Service Coverage - Last Ten Fiscal Years
(Unaudited)
2006 2007 2008 2009
Revenue $ 8,774,132 $ 11,522,294 $ 11,182,156 $ 12,542,278
Expenses (excluding depreciation) (8,534,942) (9,354,223) (10,116,369) (10,565,493)
Revenue Available for debt service $ 239,190 $ 2,168,071 $ 1,065,787 $ 1,976,785
Debt Service Requirements:
Principal $ 212,612 $ 222,720 $ 315,931 $ 319,571
Interest 217,246 207,138 195,149 135,939
Total $ 429,858 $ 429,858 $ 511,080 $ 455,510
Debt Service Coverage Ratio 0.56 5.04 2.09 4.34
Source: Previous years' audits and current year financial statements
See accompanying Report of Independent Auditors 57
Fort Collins Housing Authority
Table 5 - Debt Service Coverage - Last Ten Fiscal Years
(Unaudited)
2010 2011 2012 2013 2014 2015
$ 13,135,160 $ 11,618,751 $ 10,955,077 $ 14,987,867 $ 16,313,374 $ 18,400,781
(10,981,119) (11,142,260) (11,963,372) (14,595,037) (14,821,104) (15,571,299)
$ 2,154,041 $ 476,491 $ (1,008,295) $ 392,830 $ 1,492,270 $ 2,829,482
$ 333,451 $ 286,483 $ 16,523 $ 70,488 $ 149,502 $ 133,526
115,142 104,289 24,213 897,721 749,985 674,464
$ 448,593 $ 390,772 $ 40,736 $ 968,209 $ 899,487 $ 807,990
4.80 1.22 (24.75) 0.41 1.66 3.50
See accompanying Report of Independent Auditors 58
Fort Collins Housing Authority
Table 6 -Ratio of Debt to Capital Assets - Last Ten Fiscal Years
(Unaudited)
Ratio of
Fiscal Total Debt to
Year Short-Term Debt Long-Term Debt Total Debt Capital Assets Capital Assets
2006 $ 222,720 $ 4,334,893 $ 4,557,613 $5,627,362 80.99%
2007 315,931 4,297,096 4,613,027 5,639,713 81.80%
2008 319,571 3,987,018 4,306,589 5,606,459 76.81%
2009 429,451 3,383,890 3,813,341 6,144,359 62.06%
2010 286,483 2,718,440 3,004,923 6,269,347 47.93%
2011 16,523 414,326 430,849 6,490,876 6.64%
2012 70,489 26,019,709 26,090,198 39,545,585 65.97%
2013 149,502 25,898,780 26,048,282 31,511,522 82.66%
2014 133,526 23,109,456 23,242,982 26,963,072 86.20%
2015 2,462,284 21,157,763 23,620,047 26,019,250 90.78%
Source: Previous years' audits and current year financial statements
Note: Total debt amount includes short-term portion due within one year
See accompanying Report of Independent Auditors 59
Fort Collins Housing Authority
Table 7 - Service Area Demographics / Statistics - Last Ten Fiscal Years
(Unaudited)
City of Fort Collins Residents Fort Collins & Larimer County
Fiscal Year Population of FCHA Unemployment Rate
2005 127,686 2,026 4.4%
2006 129,511 2,090 3.9%
2007 134,169 2,120 3.4%
2008 136,427 2,126 5.0%
2009 138,100 2,164 6.6%
2010 143,986 2,342 7.4%
2011 144,875 2,430 6.8%
2012 148,700 2,446 6.4%
2013 151,330 3,433 5.4%
2014 155,400 3,433 3.5%
2015 158,600 3,286 2.8%
Source: Bureau of Labor Statistics and FCHA tenant records.
Note: Unemployment rate is based on the Fort Collins / Loveland regional area. This table includes all FCHA
housing programs.
See accompanying Report of Independent Auditors 60
Fort Collins Housing Authority
Table 8 - Principal Employers for the City of Fort Collins
(Unaudited)
Percentage of Total
Employees Rank City Employment
Colorado State University 6,700 1 7.7%
Poudre R-1 School District 4,300 2 4.9%
Poudre Valley Health Care, Inc. 3,100 3 3.6%
City of Fort Collins 2,304 4 2.6%
Larimer County 1,500 5 1.7%
Woodward, Inc. 1,300 6 1.5%
Hewlett Packard 1,100 7 1.3%
Avago 870 8 1.0%
Center Partners 800 9 0.9%
Advanced Energy Industries 730 10 0.8%
Total 22,704 26.0%
Percentage of Total
Employees Rank City Employment
Colorado State University 6,400 1 8.6%
Poudre R-1 School District 3,800 2 5.1%
Poudre Valley Health Care, Inc. 2,600 3 3.5%
Hewlett Packard 2,200 4 2.9%
City of Fort Collins 2,000 5 2.7%
Larimer County 1,700 6 2.3%
Center Partners 820 7 1.1%
Agilent Technologies 800 8 1.0%
Anheuser-Busch 700 9 0.9%
Advanced Energy Industries 600 10 0.8%
Total 21,620 28.9%
Source: City of Fort Collins CAFR, FY 12/31/2014
(1) Current year data is unavailable at the time of the preparation of the CAFR.
2014 (1)
2005 (1)
See accompanying Report of Independent Auditors 61
Fort Collins Housing Authority
Table 9 - Resident Demographics / Population Statistics - Last Ten Fiscal Years
(Unaudited)
Number of Number of Number of Total
minors adults elderly number of
Fiscal Year (ages 0-18) (ages 19-61) (ages 62+) residents
2006 191 229 18 438
2007 192 230 18 440
2008 218 205 13 436
2009 200 232 16 448
2010 160 207 15 382
2011 158 203 15 376
2012 153 202 19 374
2013 160 197 23 380
2014 337 626 63 1,026
2015 265 543 68 876
Number of Number of Number of Total
minors adults elderly number of
Fiscal Year (ages 0-18) (ages 19-61) (ages 62+) residents
2006 707 759 122 1,588
2007 734 789 127 1,650
2008 791 775 118 1,684
2009 789 772 117 1,678
2010 784 855 143 1,782
2011 845 983 138 1,966
2012 884 1,008 164 2,056
2013 888 992 186 2,066
2014 995 1,137 275 2,407
2015 975 1,145 290 2,410
Source: Fort Collins Housing Authority tenant records.
Public Housing and Non-HUD Housing Programs
Housing Choice Voucher Program
See accompanying Report of Independent Auditors 62
Fort Collins Housing Authority
Table 10 - Resident Demographics / Ethnicity Statistics - Last Ten Fiscal Years
(Unaudited)
African Native
Fiscal Year Caucasian Latino American American Other Total
2006 261 148 10 12 7 438
2007 262 148 10 12 8 440
2008 279 135 9 13 - 436
2009 278 139 9 13 9 448
2010 240 126 8 8 - 382
2011 203 143 11 11 8 376
2012 218 131 11 7 7 374
2013 220 133 8 11 8 380
2014 650 330 16 18 12 1,026
2015 565 232 43 20 16 876
African Native
Fiscal Year Caucasian Latino American American Other Total
2006 1,072 391 58 56 11 1,588
2007 1,113 406 61 58 12 1,650
2008 1,111 438 51 67 17 1,684
2009 1,107 420 67 67 17 1,678
2010 1,194 446 53 71 18 1,782
2011 1,336 472 79 59 20 1,966
2012 1,398 493 82 62 21 2,056
2013 1,404 496 83 62 21 2,066
2014 1,724 515 96 48 24 2,407
2015 1,712 530 96 48 24 2,410
Source: Fort Collins Housing Authority tenant records.
Public Housing and Non-HUD Housing Programs
Housing Choice Voucher Program
See accompanying Report of Independent Auditors 63
Fort Collins Housing Authority
Table 11 - Number of FCHA Dwelling Units - Last Ten Fiscal Years
(Unaudited)
Housing Five Year
Public Choice VASH Mainstream
Fiscal Year Housing Vouchers Vouchers Vouchers SRO TBRA VOCC Total
2006 154 730 - 64 27 38 - 1,013
2007 154 763 - 62 27 39 - 1,045
2008 154 776 - 64 27 37 - 1,058
2009 154 776 - 63 27 11 - 1,031
2010 154 735 46 64 27 10 - 1,036
2011 154 793 65 60 27 7 - 1,106
2012 154 836 64 64 27 6 - 1,151
2013 154 810 79 65 27 9 344 1,488
2014 154 853 89 63 27 6 285 1,477
2015 154 901 112 63 27 10 285 1,552
Source: Fort Collins Housing Authority tenant records.
See accompanying Report of Independent Auditors 64
Fort Collins Housing Authority
Table 12 - Property Characteristics and Unit Composition - Last Ten Fiscal Years
(Unaudited)
Number
Address of Units Year Built
Public Housing:
Azalea 1720 Azalea Drive 8 1973
Bryan 707 S. Bryan Avenue 1 1960
Emigh 1107 - 1109 Emigh Street 4 1965
Erin 1709 Erin Court 8 1970
Gallup 804 - 824 Gallup Road 11 1976
Garfield 1012 - 1022 Garfield Street 6 1970
Grant - 307-317 307 - 317 N. Grant Avenue 6 1976
Grant - 608 608 Grant Avenue 2 1940
Impala 300 - 330 Impala Circle 11 1976
Jamith 112 - 125 Jamith Place 14 1980
Laporte 501 - 503 Laporte Avenue 2 1950
Loomis 331 S Loomis Avenue 2 1890
Mathews 701 Mathews Street 2 1945
Montgomery 1206 Montgomery Street 4 1970
Morgan 1016 - 1018 Morgan Street 3 1965
Mulberry - 519 519 E. Mulberry Street 1 1940
Mulberry - 717 717 E. Mulberry Street 2 1930
Palm 1707 - 1713 Palm Drive 8 1975
Park 513 - 519 Park Street 4 1976
Pecan 1960 - 1962 Pecan Street 3 1978
Pitkin 1648 - 1652 E. Pitkin Street 8 1970
Plum - 2155 2155 W. Plum Street 15 1980
Plum - 411 411 E. Plum Street 2 1940
Rams 2912 - 2926 Rams Lane 6 1976
Rocky 800 - 813 Rocky Road 8 1976
Stanford 2601 - 2603 Stanford Road 2 1975
Sycamore 905 Sycamore Street 1 1940
West - 227 227 West Street 1 1940
West - 512-518 512 - 518 West Street 4 1976
Whedbee - 228 228 Whedbee Street 1 1890
Whedbee - 306 306 Whedbee Street 2 1890
Whitcomb 311 N. Whitcomb Street 1 1930
Wood 500 Wood Street 1 1940
Total Public Housing Units 154
Villages at Cunningham Corner (VOCC):
Hickory Hill Village 3425 Windmill Drive 92 1992
Rose Tree Village 3436 South Shields Street 120 1995
Willow Grove Village 1025 Cunningham Drive 72 1991
Leasing Office - Upstairs Unit 3436 South Shields Street 1 1997
Total VOCC Units 285
Total Units 439
Source: Fort Collins Housing Authority Property Records
Name of Development
See accompanying Report of Independent Auditors 65
Fort Collins Housing Authority
Table 13 - Number of FCHA Staff - Last Ten Fiscal Years
(Unaudited)
Fiscal Year Administration Development Finance Housing Maintenance Total
2006 5 - 3 23 12 43
2007 5 - 3 28 11 47
2008 5 - 4 25 13 47
2009 5 - 4 27 12 48
2010 6 3 5 23 8 45
2011 7 3 6 26 9 51
2012 6 4 6 25 10 51
2013 6 5 6 29 11 57
2014 7 6 6 23 15 57
2015 8 6 7 24 16 61
Source: Fort Collins Housing Authority employment records.
Fort Collins Housing Authority
Fort Collins, Colorado
Single Audit Section:
Independent Auditors' Reports
Schedule of Expenditures of Federal Awards
Schedule of Findings and Questioned Costs
Status of Prior Year Findings
70
Fort Collins Housing Authority
Schedule of Expenditures of Federal Awards
Year Ended December 31, 2015
Pass-Through
Entity
Federal Agency / Pass-Through CFDA Identifying Federal
Grantor Program Title Number Number Expenditures
United States Department of Housing and Urban Development
Section 8 Rental Voucher Program Cluster **
DEN 658V - Choice Vouchers 14.871 - $ 8,463,880
DEN 2562 - Choice Vouchers 14.871 - 309,692
Total Section 8 Choice Vouchers 8,773,572
DEN 2562 - Mainstream 14.879 - 485,673
Total Section 8 Rental Voucher Program Cluster 9,259,245
Low Rent Public Housing 14.850a - 589,078
Room Occupancy 14.249 - 145,542
Family Self Sufficiency Program Coordinators 14.896 - 201,955
Capital Fund Program 14.872 - 118,951
Supportive Housing Program (SHP) 14.235 - 287,175
Passed through the City of Fort Collins
HOME Investment Partnership Program -
Development Funds 14.239 96021-16-010 24,928
Passed through the City of Fort Collins
Community Development Block Grant (CDBG) 14.218 96021-16-010 399,830
Total Federal Expenditures $ 11,026,704
** - Denotes a major program cluster
71
Fort Collins Housing Authority
Note to Schedule of Expenditures of Federal Awards
Year Ended December 31, 2015
Note A - Basis of Presentation
Note B - Significant Accounting Policies
The accompanying schedule of expenditures of federal awards includes the federal grant activity of
the Fort Collins Housing Authority (FCHA), and is presented on the accrual basis of accounting. The
information in this schedule is presented in accordance with the requirements of Title 2 U.S. Code
of Federal Regulations (CFR) Part 200, Uniform Administrative Requirements, Cost Principles and
Audit Requirements for Federal Awards (Uniform Guidance) . FCHA received federal awards both
directly from federal agencies and indirectly through pass-through entities. Federal financial
assistance provided to a sub-recipient is treated as an expenditure when it is paid to the sub-
recipient.
The FCHA's summary of significant accounting policies is presented in Note 1 in the FCHA's basic
financial statements.
FORT COLLINS HOUSING AUTHORITY
SCHEDULE OF FINDINGS AND QUESTIONED COSTS AND RECOMMENDATIONS
For the year ended December 31, 2015
72
Section I - Summary of Auditor’s Results
Financial Statements
Type of auditors’ report issued: Unqualified
Internal control over financial reporting:
Material weakness(es) identified? Yes X No
Significant deficiency(ies) identified
not considered to be material
weaknesses? Yes X None reported
Noncompliance material to financial
statements noted? Yes X No
Federal Awards
Internal Control over major programs:
Material weakness(es) identified? Yes X No
Significant deficiency(ies) identified
not considered to be material
weaknesses? Yes X None reported
Type of auditor’s report issued on
compliance for major programs: Unqualified
Noncompliance material to financial
statements noted? Yes X No
Identification of major programs:
CFDA Number(s) Name of Federal Program or Cluster
14.871
14.879
Section 8 Housing Choice Vouchers
Mainstream Voucher
Dollar threshold used to distinguish
between Type A and Type B programs: $330,801
Auditee qualified as low-risk auditee? x Yes No
FORT COLLINS HOUSING AUTHORITY
SCHEDULE OF FINDINGS AND QUESTIONED COSTS AND RECOMMENDATIONS
For the year ended December 31, 2015
73
Section II - Financial Statement Findings
There were no findings noted.
Section III - Federal Award Findings and Questioned Costs
There were no findings noted.
FORT COLLINS HOUSING AUTHORITY
SCHEDULE OF FINDINGS AND QUESTIONED COSTS AND RECOMMENDATIONS
For the year ended December 31, 2015
74
Audit report, dated April 29, 2015 for the year ended December 31, 2014, issued by Eide Bailly,
disclosed no findings during the audit of federal award programs of Fort Collins Housing Authority.