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HomeMy WebLinkAboutReport - Mail Packet - 4/23/2013 - Report From Susan Larson And Julie Brewen Re: Fort Collins Housing Authority 2012 Year In Review - Annual Report2012 YEAR IN REVIEW (970) 416-2910 www.fchousing.com Just as a house is built upon a solid foundation, the Fort Collins Housing Authority is built upon its mission: To provide and promote affordable housing, economic opportunity and a safe living environment free from discrimination. 1715 W. Mountain Avenue, Fort Collins, CO 80521 FCHA Year in Review 2012 Page 1 YYEEAARR IINN RR EEVVIIEEWW 22001122 AAGGEENNCCYY OOVV EERRVVIIEEWW Since 1971, Fort Collins Housing Authority has offered sustainable, long-term solutions, and now we serve over 2,077 households (over 4,000 individuals) per year. Employing innovative programs and resident support systems, FCHA offers critical tools and resources that families need to maintain safe, affordable housing and economic opportunity. We are a progressive hous- ing provider and developer, offering permanent solutions that move people out of homelessness, stabilize families, and partner with community agencies to help improve lives. OOuurr MMiissssii oonn Just as a house is built upon a solid foundation, the Fort Collins Housing Authority is built upon its mission: To provide and promote affordable housing, economic opportunity and a safe living environment free from discrimination. OOuurr BBuussiinn eessss OObbjjeecc ttiivvee To achieve this mission, all FCHA functions are operated with attention paid to a triple bottom line: • Maintaining the fiscal viability of the organization. • Achieving a social goal through the provision of affordable housing and supportive ser- vices. • Achieving environmental sustainability. OOuurr CCoorree VVaalluueess Through our day-to-day operations as well as when striving to attain our long-term goals, FCHA’s core values are prevalent in our work in the manner in which we serve our community. TTeeaammwwoorrk k FFuunn CCoommppaassssi ioonn HHoonneessttyy AAccccoouunntta abbiilliittyy FCHA Year in Review 2012 Page 2 SSIITTUUAATTIIOONN AALL SSUUMMMMAARR YY Based upon 2010 U.S. Census estimates, the City of Fort Collins has a population of 143,986. Fort Collins is now the fourth largest city in Colorado. The city witnessed strong population growth throughout the 1990s. However, in early 2000 to present, Fort Collins has registered a significant slowdown in population growth. Although the population is expected to continue to grow during this decade, growth is expected to be at a slower rate than in previous years. The rental market has tightened considerably in the past two years and rents continue to increase. The market currently has a vacancy rate of approximately 3%. Over the past ten years, the total assets owned and managed by the Fort Collins Housing Au- thority has grown in an attempt to meet the needs of the community. 10-Year Housing Authority Growth Charts FFOORRTT CCOOLLLL IINNSS PPUUBBLLII CC HHOOUUSSIINNGG The Fort Collins Housing Authority federally subsidized Public Housing program consists of 154 units owned by the Authority. Operating subsidy allows the program to serve families earning virtually no income, but regulations authorize serving families earning up to 80% of area median income. Attachment A provides 2012 demographics. For 2012, Fort Collins Public Housing had an average vacancy rate of 0.5%, which is simply a function of turnover. The annual turnover rate was 10%, meaning 15 of the 154 units had a family move out during the year. This number is down from a 23% turnover rate the previous year. Numerous factors contribute to such changes, including availability of Housing Choice Vouchers, availability of affordable housing in the market and stability of the families served. FCHA Year in Review 2012 Page 3 The federal regulations for waiting list selection are quite stringent and create a challenge. There are currently 1,907 applicants on the Fort Collins Public Housing waiting list, many of these be- ing for one-bedroom units. At this time, the anticipated length of wait is over two years, longer for one-bedroom units since there are very few of them in the portfolio. WWEELLLLIINNGGTTOO NN PPUUBBLLIICC HHOOUUSSIINNGG The Fort Collins Housing Authority manages the Wellington Housing Authority through an inter- governmental agreement. The Board of Commissioners meets on a quarterly basis to review ac- tivities, set policy and prepare and authorize budgets and capital improvement plans. The Wellington Housing Authority consists of 42 Public Housing units. As of December 2012, there were 851 applicants on the Wellington Public Housing waiting list. HHOOUUSSIINNGG CC HHOOIICCEE VVOOUU CCHHEERR PPRROOGG RRAAMM The Fort Collins Housing Authority administers approximately 1,079 Housing Choice Vouchers (HCV), also known as Section 8, for Fort Collins and Larimer County. The Larimer County alloca- tion of 100 of these vouchers is administered through an intergovernmental agreement, 65 of which are targeted specifically to people with disabilities. Attachment A provides 2012 program demographics. The Fort Collins Housing Authority administered $7,670,000 in Housing Assistance Payments (HAP) to local landlords on behalf of participating families in 2012. This amount includes fund- ing for 15 additional Veterans Affairs Supportive Housing program vouchers. FCHA values local landlords a great deal and continues to focus on ways to continue their satisfaction with the pro- gram. Housing assistance payments on behalf of the program recipients are distributed to landlords in a timely manner. A brochure for landlords and program information is readily avail- able. FCHA is an active member of the Fort Collins Apartment Owners Association through which staff interacts with local landlords on a regular basis. The U.S. Department of Housing and Urban Development (HUD) grades this program through its Section 8 Management Assessment Program (SEMAP). FCHA anticipates an “A” rating again for 2012 and has utilized 100% of its authorized budget authority. Utilization of 100% of author- ized vouchers is difficult to achieve due to increases or decreases during the year in subsidy amounts or lease-up rates, and lease up time for new vouchers awarded. Congress often does not appropriate enough funding to cover all authorized vouchers, and budget amounts are prorated. As of December 2012, there were 47 applicants for the HCV program, but this is in no way in- dicative of community need because this waiting list has been closed since November 1, 2004 except for those eligible for a Mainstream or Family Unification Program voucher. The antici- pated wait is now four years or more from the date of application. A separate waiting list is administered for people interested in the project-based voucher program. Twenty percent of the vouchers are project-based or assigned to specific rental units. There are currently 1,462 appli- cants on that list with an average wait of approximately 12 months, depending on bedroom size. “FCHA anticipates an “A” rating again for 2012…” FCHA Year in Review 2012 Page 4 All units leased under the Housing Choice Voucher program must pass a Housing Quality Stand- ards (HQS) inspection each year in order to receive subsidy. FCHA has one full-time inspector on staff. This inspector is well trained in the inspection protocol, and FCHA utilizes a hand-held computer which syncs to our housing management software to do these inspections. Staff works toward using the most current technology whenever feasible. SSIINNGGLLEE RROO OOMM OOCCCCUUPPAA NNCCYY—— Supportive Housing for the Homeless The Myrtle SRO program saw steady maintenance and programming for the 2011-2012 operat- ing year. It also ended with the transition to a new full-time, live-in Resident Manager. Of the nine residents who left the residence during the reporting period, only two left for lease viola- tions. The remaining seven left voluntarily for positive reasons; i.e., awarding of Housing Choice vouchers, moving in or out of state to be closer to relatives, and having sufficient wages to afford non-subsidized, independent housing. First Street SRO program saw very little turnover of residents versus the previous year. Of the six residents who left the program during the reporting period three went on to a Housing Choice voucher, a subsidized senior apartment program, or non-subsidized apartment living from sus- tainable wages. Also, the outreach initiative that was started last year for SRO “alumni” continued again this year. It included home visits and ongoing case management assistance for those who left the house and were deemed “fragile” in living independently. The full-time Resident Manager at Myrtle SRO departed in late July 2012; she had been at the site for the past three years and left to attend graduate school. Her replacement, Mary Boone, was hired in early September and has been a wonderful addition to the program. She was a teacher in the Special Education and mental health realms for 14 years, and brings quite a bit of professional expertise to the job. Some of the community partnerships formed last year on the programming side have continued. For example, a local agency that promotes volunteer community gardens and distributes portions of the produce to the local food bank continued to provide technical assistance and labor for the very large garden at Myrtle and First Street. A “worm farm” and a sturdy compost bin system were two of the features added to the garden this season. One resident said the garden was his “emotional refuge” from the difficulties of his day. The fall harvest yielded over 300 lbs. of vegetables. Because there was more food than the house could consume, the remainder was of- fered to Catholic Charities, a nearby homeless shelter that provides lunch and dinner for its residents. Another partnership involved the local recreation center. Discount passes were purchased through SRO client assistance funds, and residents could access health club and gym facilities at the center. Other ongoing partnerships included regular staff involvement at the Murphy Center, the local homeless day services center, and the annual Project Connect. A walking club, a sum- mer pool event for residents and their families, and a resident volunteer activity helping distribute school back packs to returning grade school kids was also arranged. FCHA Year in Review 2012 Page 5 RREESSIIDDEENNTT SSEERRVVIICCEESS The Resident Services department consists of three specific programs: Public Housing Family Self-Sufficiency program, Housing Choice Voucher Family Self-Sufficiency program, and the Homeownership program. The Homeless services coordinator and resident managers at the SRO properties are included in the Resident services team in order to provide group supervision and share resources. FCHA has been fortunate to partner with CSU’s School of Social work. FCHA provides an op- portunity for students to complete their internships in the community. This is an opportunity for students to practice the skills they are learning in the classroom while gaining valuable real life experience. FCHA benefits from having the students because they can provide necessary ser- vices to populations such as the Northern Hotel for which there are no sources of funding to provide services and the residents benefit from the services the interns are able to provide. This year we had Jessy Pratt completing her MSW internship. Jessy’s focus is in gerontology she spent about 24 hours a week for nine months at FCHA. The goal this year was to start building a sense of community at a couple of FCHA’s properties that serve 55 and older and/or disabled folks. Jessy conducted interviews to see how residents were doing and to see how the property functions as a community. For our Bryan residents, she arranged a morning coffee and a “say goodbye to summer” afternoon tea, hosted a holiday dinner and met with them to help build relationships. Jessy also worked at the Northern Hotel. There she celebrated birthdays, hosted BINGO games, fostered a Yarn Club and much more. Jessy is a friendly contact for our residents and will continue to foster relationships as she carries on her internship. Homeownership Program: Housing Choice Vouchers (Section 8) can be used toward a mortgage rather than toward rent for families who are engaged in the Family Self Suffiency Program. Five new families became first time homeowners in 2012 bringing the program total to 49. Our Homeownership specialist, Ka- ren Bettis, was awarded the NAHRO service worker of the year award! Family Self-Sufficiency There were a total of 24 families who graduated from the FSS program in 2012. Eighteen of the families who graduated also accrued an escrow savings account. The total amount paid out in escrow was $76,985 with an average amount paid out $4277. Twenty nine new families signed contracts of participation this year! Annual Enrollment in Self Sufficiency Programs  Households actively case managed (unduplicated count) ……………….. 189  Number of individuals that received services (unduplicated count)…….. 191 FCHA Year in Review 2012 Page 6 Financial Accomplishments of Self Sufficiency Participants  Number of households that increased their income……………………….. 63  Average dollar increase in annual household income…………………….. $8,076  Number of participants that obtained full-time employment.……………. 7  Number of participants that obtained part-time employment…………… 17  Number of households that experienced a reduction in TANF…………... 4  Number of households that eliminated TANF as result of increased household income……………………………………………………………... 3  New FSS escrow accounts established………………………………………. 25  Dollar value of current FSS accounts………………………………………... $119,999  Number of participants that graduated from FSS…………………………. 17  Dollar value of FSS escrow disbursements to graduating participants….. $89,437  Number of participants that became first-time homeowners…………….. 5 Educational Attainment  Participants that obtained a GED……………………………………………. 6  Participants that enrolled in college…………………………………………. 15  Participants that completed a post-secondary degree……………………... 3 Family Unification Program The Family Unification Program (FUP) is a program under which Housing Choice Vouchers (HCVs) are provided to two different populations: Families for whom the lack of adequate housing is a primary factor in: a. The imminent placement of the family’s child or children in out-of-home care, or b. The delay in the discharge of the child or children to the family from out-of-home care. FCHA Year in Review 2012 Page 7 These vouchers are for youth who are at least 18 years old and not more than 21 years old who left foster care at age 16 or older and who lack adequate housing. FCHA has 50 total FUP vouchers and we work closely with the Department of Human Services to administer them. VVIILLLLAAGGEESS,, LLTTDD.. AAFFFF OORRDDAABBLLEE HH OOUUSSIINNGG PPRR OOGGRRAAMM Villages, Ltd, formerly the Fort Collins Housing Corporation, owns 299 units of affordable housing scattered throughout Fort Collins. The Fort Collins Housing Authority is the management agent for the Villages affordable housing portfolio. The portfolio consists of many types of housing, from single-family detached homes to the 95-unit Village on Plum apartment complex. In addition, Villages manages 130 units financed under the Low In- come Tax Credit program; the Village on Elizabeth and Village on Stanford. Both properties were extensively rehabilitated by the Fort Collins Housing Authority. A firm rental market resulted in lower vacancy loss and less turnovers than in previous years. The average vacancy rate for the Villages portfolio in 2012 was 3.5%. In 2012, a total of 90 units turned over for an annual turnover rate of 30%, 12% lower than the previous year. The average household income for the affordable housing program was $18,117 in 2012. The average tenant rent was $408.00 The Villages website was launched in 2011. In 2012 we enhanced the overall appearance of the website and its functionality. Interior unit photos were added, as well as additional documents to the Resident Resource section; making accessibility to routine forms easier for applicants and residents. The website has proven an effective market- ing tool; approximately three quarters of the applicant calls to our office reference our website. “The FUP has helped me out in so many ways. Financially it has helped so much; I now have a comfortable amount of money in my savings account. I've learned budgeting and money management. I have also managed to decrease my debt by a couple hundred dollars which is a huge weight off my shoulders. It has helped me feel like I'm responsible and grounded in my life, which is something I've been trying to find throughout my life. I finally feel like an independent adult and ready for the years to come. Not every day is perfect of course, but it’s manageable. Every month I learn how to save and be even more self-sufficient. I currently have a full time job and am trying to go back to school and being independent is making these things possible. I would just like to say thank you so much for this opportunity, I'll be forever grateful.” -FCHA FUP Participant FCHA Year in Review 2012 Page 8 NNOORRTTHHEERRNN HHOOTTEELL The Fort Collins Housing Authority is the contracted management agent for the Northern Hotel Limited Partnership. As management agent, the Authority provides all leasing functions, which include eligibility and compliance work for all grant and funding sources. FCHA provided 47 Housing Choice Vouchers to the Northern Hotel in 2001 due to severe vacancy problems. Since that time, the demand for apartments there has remained high; the property serves persons aged 55 and older whose incomes are well below 30% of area median income. The average annual tenant income in 2012 was $11,585; the average tenant rent is $270. Current- ly there are 320 applicants for this program with an approximate waiting time of one to two years. PPRROOPPEERRTTYY MMAAIINNTTEENNAANN CCEE Property maintenance is a large part of operations, a part which is a source of pride for the organ- ization. Major accomplishments and projects in 2012 of the maintenance department include the following: • Expanded the use of the Yardi software work- order system. All maintenance personnel are now equipped with a Smart Phone. This allows staff to receive and process work orders while in the field. The staff can better plan and organ- ize their work schedule for greatest efficiency. The new system has decreased our response time to maintenance emergencies. • The Yardi inventory system allows staff to track materials and vendors. We have enhanced the use of the system by adding a barcode scanner for inventory tracking. • Participated in a recycling program for appliances. Also recycled was metal, comingled materials, CFL lighting and yard waste at the maintenance facility. • Use of Energy Star rated equipment and green building components, including low-VOC cabinets, counter tops, carpeting and paint in vacancy turns. • Participated with the City of Fort Collins and CSU in the development and expansion of our residential community gardens. Two new garden locations were added in 2012; Vil- lage on Plum and First Street SRO. • The maintenance staff received a new fashion look in 2012. All staff received new updat- ed, standardized uniforms for easier identification by residents. The following numbers summarize work orders completed by maintenance staff in 2012: • 24 emergency service calls completed or abated within 24 hours. • 5,867 routine service calls with an average completion time of 10 days or less. • 176 vacancy turnarounds with an average time of 13 days. • 7,284 total service calls, including vacant unit work orders. FCHA Year in Review 2012 Page 9 DDEEVVEELLOOPPMMEE NNTT AANNDD RREE HHAABBIILLIITTAATT IIOONN Assessments and Analysis The Development department, in coordination with Property Management and Maintenance, continue to identify and prioritize deficiencies and existing maintenance needs within the Public Housing and Villages, Ltd. portfolio. Capital Needs Assessments are being completed systemati- cally throughout the portfolio to determine short and long-term capital needs. Final recommendations are being provided for each property. Recommendations are based on severity and anticipated lifecycles of various components of the asset. Detail cost calculations are pro- jected over a twenty year period thus enabling the agency to better plan, prioritize, and budget annual capital improvements and maintenance needs throughout the portfolio. Development, Acquisition and Rehabilitation Permanent Supportive Housing – Following years of research on best practices, Fort Collins Housing Authority has moved forward with plans to develop 60 units of critical housing for homeless and very low income individuals. A 3.2 acre site has been identified in the Redtail Ponds/Fossil Park PUD and a competent development team has been assembled to design and structure the property. Funding has been realized to aid in the ultimate development of this af- fordable housing community. Major Low Income Housing Tax Credit funding will be sought in early 2013 and if successfully funded, construction will begin in late 2013 or early 2014. Redtail Ponds Permanent Supportive Housing Design Redwood Property – The 9.6 acre Redwood property was selected to be a part of Colorado Housing Now’s annual design charrette process. A design team led by architects, landscape ar- chitects, planners and stakeholders produced a well thought out conceptual design and site plan. The preliminary plan includes 72 affordable housing units made up predominately of town- homes. The intensive, hands-on conceptual design process was sensitive to the surrounding neighborhood and natural areas while at the same time taking advantage of the unique aspects of the site. The charrette process enables the Fort Collins Housing Authority advancement to this future development. FCHA Year in Review 2012 Page 10 Village on Plum – A development and design team headed by Allard, Lingle, Massey, Architects was assembled to explore redesign opportu- nities for Village on Plum Apartments. The objective of the redesign process was to address both physical obsolescence and necessary repairs to critical building systems. Based upon the final design, a variety of funding opportunities are being explored to finance the improvements. Rehabilitation is planned in 2013. Mountain Office Remodel – The Fort Collins Housing Authority office remodel was completed in April. The post 1970 office was remodeled to in- crease meeting and office space and im- prove overall business functions for staff, clients and business partners. Staff has taken time to better streamline processes in the new building to create a better workflow and welcoming space for visitors. Villages on Cunningham Corner – On December 31 st , the Fort Collins Housing Authority completed the acquisition of a $24.6 million multifamily portfolio located in Fort Collins and Loveland. The unprecedented acquisition brings the affordable housing holdings to over 1000 units. The portfolio consists of one, two and three bedroom rental units disbursed over 4 multifamily communities. The initial acquisition phase represented a unique and limited opportunity to pre- vent conversion of these units to market rate apartments and preserve the long-term affordability of this large privately held portfolio. The acquisition was made possible with short-term financ- ing from FirstBank, Funding Partners and City of Fort Collins CDBG and HOME funding. In two to three years, once Phase II financing is in place, the Authority plans to begin extensive renovation of these apartments. FCHA Year in Review 2012 Page 11 Joint Ventures The Fort Collins Housing Authority continued to work with Cornerstone Legacy Senior, Ltd. through a joint venture to raise equity, obtain development fee waivers and secure development approvals. The 72 unit affordable senior housing development began construction in December. The development represents a unique opportunity for the Authority to partner with a highly qual- ified private sector developer and eventually own a high-quality asset in an increasingly desirable and important senior submarket. The property has an excellent location with immediate access to the scenic Poudre River and Historic Downtown Fort Collins. Public Housing Modernization Capital improvements to the Public Housing portfolio were conducted throughout the portfolio with the use of HUD capital funds. Eligible modernization and maintenance activities occurred throughout the Public Housing portfolio and included such items as landscape improvements, electrical upgrades, cabinets, roofs, and flooring. FCHA Year in Review 2012 Page 12 CCOOMMMMUUNNIITTYY CCOOOORRDDIINNAA TTIIOONN AANNDD AADDVVOOCCAACCYY In 2012, FCHA partnered or formally coordinated with numerous community entities through leadership, advocacy, coordination and support. The following list is not inclusive and is in no particular order. There are so many other informal partnerships that it is impossible to list all of the great work being accomplished! • Homeward 2020 • Community Dual Disorders Team • Sister Mary Alice Murphy Center for Hope • FortZED • Northern Colorado Rental Association • Larimer County Affordable Housing Coalition • Larimer County Health and Human Services • CARE Housing, Inc. • Project Self Sufficiency • Crossroads Safehouse • Neighbor to Neighbor • Social Services Family Response Team • Northern Front Range Continuum of Care • Interfaith Council • Community Mental Health and Substance Abuse Partnership • Larimer County Community Corrections • Colorado Yardi Users Group • Eastgate Homeowners Association • Stanford Homeowners Association • Thunderbird Neighborhood Association • City Manager’s Strategic Issues Team • Housing NOW Conference • National Association of Housing and Redevelopment Officials: State, Regional and National* • Colorado Coalition for the Homeless • Larimer Home Improvement Program (LaHIP) • Larimer County Drug Task Force • City of Fort Collins Utilities • Larimer County Alternative Sentencing Unit • Longs Peak Weatherization • United Way *This year, FCHA hosted the 2012 Regional NAHRO Conference, bringing hundreds of people to Fort Collins to get a sense of the City and housing development in our area as well as attend work- shops to better serve in the housing field. FCHA Year in Review 2012 Page 13 LLEEGGIISSLLAATTII VVEE On September 22, 2012, NAHRO members from four Colorado PHAs - Ismael Guerrero, Moun- tain Plains Regional Council of NAHRO Legislative Chairperson and Executive Director of the Housing Authority of the City and County of Denver; Craig Marashky, Colorado NAHRO Presi- dent and Executive Director of the Aurora (Colo.) Housing Authority; Tami Fischer, CEO of Metro West Housing Solutions; and Julie Brewen, Executive Director of the Fort Collins (Colo.) Housing Authority - in coordination with Betsey Martens, NAHRO President; Jonathan Zim- merman, Senior Policy Advisor - National NAHRO convened a meeting in Washington DC regarding regulatory and administrative relief with senior HUD officials, including Assistant Secretary Sandra Henriquez. Among the measures discussed for potential regulatory relief for Section 8 Voucher and Public Housing programs were: 1) applying applicable annual inflation factor to fixed federal household benefits, 2) redefining annual income, 3) self-certification of assets, 4) relying on pay stubs without the need for manual third-party income verification in some instances. Their efforts assisted in the creation of PIH notice 2013-3 where all of these re- lief measures were included in one form or another. FCHA Federal Programs Manager John Tuchscherer worked closely with Washinton DC HUD staff on the details and wording of these important reform meausures. IINNFFOORRMMAATTII OONN TTEECCHHNNOO LLOOGGYY The Fort Collins Housing Authority strives to keep all information technology systems up-to- date to provide the best possible service to our customers. Since individual participant eligibility and statistical data must be transmitted electronically to the U.S. Department of Housing and Ur- ban Development, it is vitally important that our systems are well maintained. In addition, from a business and fiduciary perspective it is also essential that our systems allow us to track our fi- nances in ways that are meaningful and allow us to manage our assets properly. The primary software tool utilized by the organization is an integrated property management and accounting product (Yardi) which allows for full integration of operational activities across all departments. In 2012, we continued to focus on increasing the utilization of the robust tools available in this software. This included the full implementation of the fixed asset module in the system to automate the tracking and accounting for capital assets. FCHA also hosted a Yardi Us- ers group, where other users across Colorado came together to expand their knowledge on the system. Replacement of personal computers based on an obsolescence schedule was continued in 2012. Approximately 20 percent of the computers were replaced as part of the remodeling cost for the Mountain Avenue offices. Going forward we anticipate the replacement of a similar number of machines on an annual basis. Future Information Technology goals: o Continue to refine the FCHA Web site and develop ways for the community to access program information electronically. FCHA Year in Review 2012 Page 14 o During 2012 new network copiers were leased and installed to replace aging equipment in four locations within the organization. The replacement products were obtained through a competitive bid process which resulted in a 44% annual savings over the previ- ous lease contracts while upgrading to state-of-the-art equipment. 5-year lease agreements were executed for these new machines. o Microsoft Project software was purchased and installed for all members of the Develop- ment Department during 2012. The integration of this planning tool across all functions of this department is expected to improve the quality and tracking of project information as we continue to drive growth in the organization through development and capital pro- jects. o Focus on electronic data storage wherever possible with the long-term goal of becoming as “paperless” as possible. FFIINNAANNCCEE AA NNDD AACCCCOOUUNN TTIINNGG Significant Funding and Loan Transactions During the year many items were addressed that resulted in increased income and new financing for important initiatives. Some of the more significant items were: • The debt originally incurred in 2011 to purchase a piece of land for future development, known internally as the Redwood Property, was re-financed in 2012. The new lender on this transaction is the Seton Enablement Fund of Cincinnati, Ohio. This transaction low- ered the interest rate on the $236,500 debt from 6.75% to 3.0%. The new loan has a 5- year term with a fixed-rate. • Operating Lines of Credit: o In 2012 an operating line of credit was established for the Fort Collins Housing Authority in the amount of $700,000. This debt instrument will be used to fund pre-development and development costs on projects while they are in process and prior to permanent funding. o The $500,000 operating line of credit that has been in place for several years for the Villages, Ltd. was renewed during 2012 for a one-year term. • Villages on Cunningham Corner Purchase: A total of $23.85 million in short-term fi- nancing was used to make the purchase of the Village on Cunningham Corner properties in 2012. In addition to this debt a total of $1,072,811 was awarded through the City of Fort Collins CBDG/HOME funds to complete this purchase. The current financing struc- ture on this transaction is projected to carry the properties for approximately three years at which time plans are being made for a re-finance of this debt as part of a larger rehabil- itation project on the properties. • The remodeling of the Mountain Avenue administrative offices was completed during 2012. The construction costs for this project were initially funded by an unsecured line FCHA Year in Review 2012 Page 15 of credit. Upon completion the $800,000 project costs were re-financed into a 15-year fully amortizing bank qualified tax-exempt loan at a fixed-rate of 3%. Budget 2013 Operating budgets for all entities managed were completed and approved by the appropri- ate oversight committees/boards in November and December 2012. The budget structure, approach and tools that were developed in the prior year were used in this process. Audit The audit firm Eide Bailly, LLP was utilized during the year for the completion of the fiscal year 2011 audits for all entities. This firm will once again be used for the 2012 audits. All entities received unqualified audit opinions for the 2011 period. Other Items of Note In addition to normal operations the following issues were addressed by the FCHA Finance and Accounting Department during 2012. • The Department of Housing and Urban Development (HUD) conducted an on-site audit of the FCHA voucher rental assistance financial reporting process in 2012 as part of their routine oversight. The FCHA received positive comments in the final report regarding accuracy, internal processes and structure. • A new insurance broker was selected during 2012 through a competitive bid process. The company selected specializes in working with Public Housing Agencies and Afford- able Housing providers. As a result all insurance coverage’s have been reviewed and analyzed for proper levels and structure. • The 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. The developer will build the project using Low Income Housing Tax Credit financing. In addition to facilitating some financing for the development the FCHA is positioned to take ownership of this project at the end of a 15-year compliance period. The target date for completion of construction is December 2013. FCHA Entities The FCHA carries out its mission by managing seven separate entities, including: 1. Fort Collins Housing Authority 2. Larimer County Housing Authority (presented as a component unit within FCHA) 3. Villages, Ltd. (formerly known as Fort Collins Housing Corporation) 4. Housing Catalyst, LLC 5. Wellington Housing Authority 6. Village on Elizabeth (a tax credit funded project) 7. Village on Stanford (a tax credit funded project) Accounting for these entities, along with contracted functions for the owners of the Northern Ho- tel, are handled by the Finance department. As part of the new standardized financial reporting FCHA Year in Review 2012 Page 16 implemented in 2010 the statements of financial position (Balance Sheet) and results of opera- tions (Income Statement) are reported in a grouped format as shown below. The FCHA ended 2012 with over $65 million in assets under management. Overall administra- tive costs in 2012 were 5.4% ($131,452) under budget projections as the organization worked to be more efficient. FCHA Villages WHA VOE VOS Total Actual Actual Actual Actual Actual Eliminations Actual ASSETS CURRENT ASSETS: CASH Total Unrestricted Cash 2,791,940 2,440,042 206,161 126,621 333,471 - 5,898,235 Total Restricted Cash 258,729 469,230 15,588 151,124 262,502 - 1,157,173 TOTAL CASH 3,050,669 2,909,272 221,749 277,745 595,973 - 7,055,408 TOTAL ACCOUNTS AND NOTES RECEIVAB 426,105 27,687 5,011 197 1,239 (18,605) 441,634 TOTAL OTHER CURRENT ASSETS 174,813 36,256 557 14,092 52 - 225,770 TOTAL CURRENT ASSETS 3,651,588 2,973,215 227,317 292,034 597,264 (18,605) 7,722,813 NONCURRENT ASSETS: TOTAL FIXED ASSETS (NET) 31,785,416 11,813,391 815,689 4,687,772 8,706,234 - 57,808,502 Total Other Assets 4,103,822 1,136,647 - - - (4,839,717) 400,751 TOTAL NONCURRENT ASSETS 35,889,237 12,950,038 815,689 4,687,772 8,706,234 (4,839,717) 58,209,253 TOTAL ASSETS 39,540,825 15,923,253 1,043,006 4,979,806 9,303,498 (4,858,322) 65,932,066 LIABILITIES & EQUITY LIABILITIES: TOTAL CURRENT LIABILITIES 810,955 669,882 18,582 62,363 141,129 (50,969) 1,651,942 TOTAL NONCURRENT LIABILITIES 26,120,907 6,751,182 6,812 3,707,088 5,323,829 (4,807,353) 37,102,465 TOTAL LIABILITIES 26,931,863 7,421,063 25,394 3,769,450 5,464,957 (4,858,322) 38,754,406 EQUITY TOTAL CONTRIBUTED CAPITAL 100 - - 2,578,893 4,919,996 - 7,498,989 TOTAL RESERVED FUND BALANCE 1,270,500 4,290,432 - - - - 5,560,932 RETAINED EARNINGS: Invested in Capital Assets-Net of Debt 6,205,244 - 815,689 - - - 7,020,933 Unrestricted Net assets 4,302,376 4,211,757 201,923 - - - 8,716,056 Net Restricted Assets - HUD 830,743 - - - - - 830,743 Prior Income (Loss) - - - (1,368,538) (1,081,455) - (2,449,993) TOTAL RETAINED EARNINGS: 11,338,363 4,211,757 1,017,612 (1,368,538) (1,081,455) - 14,117,739 TOTAL EQUITY 12,608,963 8,502,189 1,017,612 1,210,355 3,838,541 - 27,177,660 TOTAL LIABILITIES AND EQUITY 39,540,825 15,923,253 1,043,006 4,979,806 9,303,498 (4,858,322) 65,932,066 All Property beginning in 2011 (.allpr11) Combining Balance Sheet (Summary) Period = Jan 2012-Dec 2012 Book = Accrual FCHA Year in Review 2012 Page 17 FCHA Villages WHA VOE VOS Total Actual Actual Actual Actual Actual Eliminations Actual Revenue & Expenses INCOME TENANT INCOME TOTAL RENTAL INCOME 176,968 2,687,293 74,115 358,743 575,997 (1,618,024) 2,255,092 TOTAL OTHER TENANT INCOME 23,255 76,502 5,656 15,959 18,098 - 139,471 NET TENANT INCOME 200,224 2,763,795 79,771 374,702 594,095 (1,618,024) 2,394,563 TOTAL GRANT INCOME 9,187,834 - 200,844 - 200 - 9,388,878 TOTAL OTHER INCOME 2,473,390 86,572 5,106 72 488 (2,240,823) 324,806 TOTAL INCOME 11,861,447 2,850,367 285,722 374,774 594,783 (3,858,847) 12,108,246 EXPENSES ADMINISTRATIVE Total Administrative Salaries 1,851,356 230,096 43,116 20,417 37,140 - 2,182,125 Total FSS Salaries 229,974 - - - - - 229,974 Total Legal Expense 29,824 15,392 1,149 2,569 1,531 - 50,466 Total Other Admin Expenses 865,834 571,531 36,241 85,395 129,935 (1,482,517) 206,420 Total Miscellaneous Admin Expenses 327,991 12,605 3,310 23,378 7,830 - 375,113 TOTAL ADMINISTRATIVE EXPENSES 3,304,980 829,624 83,817 131,759 176,436 (1,482,517) 3,044,098 TOTAL TENANT SERVICES EXPENSES 53,335 4,941 - - - - 58,276 TOTAL UTILITY EXPENSES 156,616 269,871 53,738 29,007 32,468 - 541,701 MAINTENANCE AND OPERATIONS TOTAL GENERAL MAINT EXPENSE 572,985 21,598 960 1,484 6,594 - 603,620 Total Materials 38,841 74,845 5,918 10,550 10,731 - 140,884 Total Contract Costs 440,068 604,895 87,158 97,576 75,275 (605,662) 699,312 Total Facility 11,287 - - - - - 11,287 Total Vehicle Costs 28,429 - - - - - 28,429 TOTAL MAINTENANCE EXPENSES 1,091,610 701,338 94,037 109,610 92,600 (605,662) 1,483,532 TOTAL GENERAL EXPENSES 56,428 81,334 11,125 21,144 45,246 - 215,278 TOTAL HOUSING ASSISTANCE PAYMENTS 7,911,437 - 270 - - (1,618,024) 6,293,683 TOTAL FINANCING EXPENSES 295,608 355,912 - 170,536 220,557 (152,643) 889,970 TOTAL CAPITAL FUNDS - 102,540 - - - - 102,540 TOTAL NON-OPERATING ITEMS 182,151 730,354 76,173 225,091 348,246 - 1,562,014 TOTAL EXPENSES 13,052,165 3,075,914 319,159 687,148 915,553 (3,858,847) 14,191,092 NET INCOME (1,190,717) (225,547) (33,438) (312,374) (320,770) - (2,082,846) CASH FLOW INFORMATION: Add: Depreciation: 182,151 730,354 76,173 225,091 348,246 - 1,562,014 Add: Note Receivable Payments: 38,189 81,606 - - - - 119,795 Add: Unpaid Accrued Interest Payable: - - - 76,614 111,027 - 187,641 Add: New Debt Funding: 25,959,311 380,041 - 177,939 183,057 - 26,700,348 Less: Debt Principal Payments: (299,962) (385,285) - (12,387) (7,138) - (704,772) Less: Unpaid Accrued Interest Receivable: (152,643) (54,970) - - - - (207,613) Less: Purchase of Capital Assets: (25,475,961) (414,672) (81,959) (18,174) - - (25,990,766) Change in Other Assets: (717,438) 322,633 11,711 116,274 (3,631) - (270,451) Change in Other Liabilities: 326,694 (14,668) (21,827) (153,832) (216,587) - (80,220) NET CASH FLOW (1,330,378) 419,492 (49,340) 99,151 94,204 - (766,871) All Property beginning in 2011 (.allpr11) Combining Income Statement (Summary) Period = Jan 2012-Dec 2012 Book = Accrual FCHA Year in Review 2012 Page 18 The two major affordable housing programs operated by the FCHA are the HUD funded Public Housing and Voucher programs. These programs are included in the financials for the FCHA in the reports shown above. Below are internal analysis reports on the financial operations for these two programs in 2012. December 2012 12 Public Housing & ROSS 154 Units TOTAL ASSETS 6,672,157 TOTAL EQUITY 6,549,672 TOTAL LIABILITIES 122,485 Reserve for Replacements - Restricted - HUD - Unrestricted Cash Available for Operations 598,374 Ave. Monthly Operating Expenses (Y-T-D) 88,125 Current Assets 669,552 Cash Operating Coverage (months) 6.8 Current Liabilities 96,560 Months Expendable Fund Balance (est.) 6.5 Current Ratio 6.93 Payable to Vendors & Contractors 38,148 Short-term Debt n/a Total Debt Payments (Y-T-D) - Long-term Debt - Ave. Monthly Debt Payments (Y-T-D) n/a Debt Coverage Ratio (Y-T-D) n/a M-T-D Y-T-D Y-T-D Y-T-D Y-T-D Actual Actual Budget Variance % Variance Rental Income 13,874 176,968 239,000 (62,032) -26% Other Tenant Income 2,195 23,255 22,595 660 3% Total Grant Income 54,199 900,524 718,019 182,505 25% Total Other Income 100 17,409 3,100 14,309 462% TOTAL INCOME 70,368 1,118,157 982,714 135,443 14% Administrative Expenses 61,486 490,537 498,460 7,923 2% Tenant Services Expenses 3,827 6,450 3,750 (2,700) -72% Utility Expenses 16,801 139,857 120,050 (19,807) -16% Maintenance Expenses 119,423 380,304 358,177 (22,127) -6% General Expenses (1,105) 29,435 33,738 4,303 13% Housing Assistance Payments 824 10,912 22,000 11,089 50% Financing Expenses - - - - n/a Capital Funds Expenses (125,468) - - - n/a Non-Operating Expenses 12,087 124,714 122,821 (1,893) -2% TOTAL EXPENSES 87,876 1,182,208 1,158,996 (23,212) -2% NET INCOME (LOSS) (17,507) (64,051) (176,282) 112,231 64% Total OPERATING INCOME 64,365 986,687 982,714 3,973 0% Total OPERATING EXPENSES 201,256 1,057,495 1,036,175 21,319 2% Net OPERATING INCOME (136,891) (70,807) (53,461) (17,346) 32% Per Unit Per Month (Y-T-D Averages): Per Unit Per Annum (Annualized): Rents 96 Rents 1,149 Operating Expenses 572 Operating Expenses 6,867 Net from Operations (38) Net from Operations (460) TOTAL INCOME 605 TOTAL INCOME 7,261 TOTAL EXPENSE 640 TOTAL EXPENSE 7,677 NET INCOME (35) NET INCOME (416) Debt Operating Activities Unit Analysis Financial Position Liquidity (200,000) (100,000) - 100,000 200,000 Actual vs. Budget Net Income (Actual) Net Income (Budget) Net Operating Income - 200,000 400,000 FCHA Year in Review 2012 Page 19 December 2012 12 FCHA Vouchers: 0 Units TOTAL ASSETS 1,111,580 TOTAL EQUITY 1,010,160 TOTAL LIABILITIES 101,420 Reserve for Replacements - Restricted - HUD 800,768 Unrestricted Cash Available for Operations 1,028,877 Ave. Monthly Operating Expenses (Y-T-D) 656,605 Current Assets 1,103,265 Cash Operating Coverage (months) 1.6 Current Liabilities 32,630 Months Expendable Fund Balance (est.) na Current Ratio 33.81 Payable to Vendors & Contractors (1,558) Short-term Debt n/a Total Debt Payments (Y-T-D) - Long-term Debt - Ave. Monthly Debt Payments (Y-T-D) n/a Debt Coverage Ratio (Y-T-D) n/a M-T-D Y-T-D Y-T-D Y-T-D Y-T-D Actual Actual Budget Variance % Variance Rental Income - - - - n/a Other Tenant Income - - - - n/a Total Grant Income 692,782 7,406,335 8,144,684 (738,349) -9% Total Other Income 732 11,293 7,993 3,300 41% TOTAL INCOME 693,514 7,417,628 8,152,677 (735,049) -9% Administrative Expenses 46,739 738,034 809,281 71,247 9% Tenant Services Expenses 83 83 8,000 7,917 99% Utility Expenses - - - - n/a Maintenance Expenses - - - - n/a General Expenses 13 150 - (150) #DIV/0! Housing Assistance Payments 595,948 7,140,994 7,335,396 194,402 3% Financing Expenses - - - - n/a Capital Funds Expenses - - - - n/a Non-Operating Expenses 462 5,543 - (5,543) #DIV/0! TOTAL EXPENSES 643,245 7,884,805 8,152,677 267,873 3% NET INCOME (LOSS) 50,270 (467,177) (0) (467,177) -166848796% Total OPERATING INCOME 693,514 7,417,628 8,152,677 (735,049) -9% Total OPERATING EXPENSES 642,783 7,879,261 8,152,677 (273,416) -3% Net OPERATING INCOME 50,732 (461,633) u (0) (461,633) 164868993% Per Unit Per Month (Y-T-D Averages): Per Unit Per Annum (Annualized): Rents n/a Rents n/a Operating Expenses n/a Operating Expenses n/a Net from Operations n/a Net from Operations n/a TOTAL INCOME n/a TOTAL INCOME n/a TOTAL EXPENSE n/a TOTAL EXPENSE n/a NET INCOME n/a NET INCOME n/a Liquidity Debt Operating Activities Unit Analysis Financial Position ((((625,600,575,550,000) 000) 000) 000) ((((525,500,475,450,000) 000) 000) 000) ((((425,400,375,350,000) 000) 000) 000) ((((325,300,275,250,000) 000) 000) 000) ((((225,200,175,150,000) 000) 000) 000) ((125,100,((75,50,000) 000) 000) 000) (25,25,50,000) 000 000 - 100,125,150,75,000 000 000 000 175,200,225,250,000 000 000 000 275,300,325,350,000 000 000 000 375,400,000 000 Actual vs. Budget Net Income (Actual) Net Income (Budget) Net OPERATING Income (150,000) FCHA Year in Review 2012 Page 20 AAttttaacchhmmeenn tt AA PUBLIC HOUSING PROGRAM 2012 DEMOGRAPHICS Distribution by Average Annual Income (%) Extremely Low Income – < 30% of median or <$22,750 for family of 4 87 Very Low Income – 50% of median or $37,900 for family of 4 11 Low Income – 80% of median or $60,650 for family of 4 2 Average Annual Income ($) Fort Collins Public Housing 10,251 Colorado Overall Average 11,730 Distribution by Source of Income (%) With any wages 41 With any welfare 19 With any SSI/SS/Pension 41 With any other income 16 Distribution by Total Tenant Payment (%) $0 0 $1–25 0 $26–50 16 $51–100 5 $101–200 30 $201–350 26 $351–500 12 $501+ 10 Distribution by Family Type (%) Elderly, no children, non-disabled 2 Elderly, with children, non-disabled 0 Non-elderly, no children, non-disabled 5 Non-elderly, with children, non-disabled 51 Elderly, no children, disabled 7 Elderly, with children, disabled 1 Non-elderly, no children, disabled 26 Non-elderly, with children, disabled 7 All female headed household with children 55 FCHA Year in Review 2012 Page 21 HOUSING CHOICE VOUCHER PROGRAM 2012 DEMOGRAPHICS Average Annual Income ($) Fort Collins HCV 11,779 Colorado Overall Average 11,566 Distribution by Source of Income (%) With any wages 31 With any welfare 12 With any SSI/SS/Pension 53 With any other income 24 Distribution by Total Tenant Payment (%) $0 1 $1–25 0 $26–50 12 $51–100 5 $101–200 20 $201–350 35 $351–500 14 $501+ 12 Distribution by Family Type (%) Elderly, no children, non-disabled 5 Elderly, with children, non-disabled 0 Non-elderly, no children, non-disabled 9 Non-elderly, with children, non-disabled 37 Elderly, no children, disabled 10 Elderly, with children, disabled 1 Non-elderly, no children, disabled 29 Non-elderly, with children, disabled 9 All female headed household with children 39 Average Tenant Payment by Family Type ($) Elderly, no children, non-disabled 292 Elderly, with children, non-disabled 533 Non-elderly, no children, non-disabled 203 Non-elderly, with children, non-disabled 288 Elderly, no children, disabled 283 Elderly, with children, disabled 324 Non-elderly, no children, disabled 245 Non-elderly, with children, disabled 329 All female headed household with children 288 (100,000) (50,000) - 50,000 Actual vs. Budget Net Income (Actual) Net Income (Budget) Net OPERATING Income - 500,000 1,000,000 1,500,000 2,000,000 Cash Flow Overview (ROLLING 12 Months) Cash In Cash Out Unrestricted Cash Balance 600,000 800,000 Cash Flow Overview (ROLLING 12 Months) Cash In Cash Out Unrestricted Cash Balance