FY2022 Proposed Operational Budget - Housing Authority of Snohomish County Pam Frost, Finance Director - Housing Authority of ...
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FY2022 Proposed Operational Budget
Housing Authority of Snohomish County
Pam Frost, Finance Director
Presented to the Housing Authority of
Snohomish County’s Board of Commissioners
• Joseph Alonzo, Chair
• Gary Weikel, Vice Chair
• Amy Rusko, Commissioner
• Jeffrey Wallace, Commissioner
• Maddie Metzger‐Utt, Commissioner
• Kyoko Matsumoto Wright, Commissioner
Our mission is to meet the diverse needs of Snohomish County residents by expanding housing
opportunities that promote stability, strengthen community and provide affordability.
HASCO Agency Goals • Property Acquisition and Program Expansion – Expand our reach physically and through influence/involvement with community and local governments. • Invest in People – Attract and employ high quality experts in their fields and provide employee training and development to support professional growth. • Increase Client Services – Expand client services and outreach with a focus on education, job and life skill development.
HASCO Core Values • Diversity – We respect and encourage diversity in all its forms. We draw strength through our differences and actively seek out other perspectives. • Integrity – We perform at a high level in support of our mission. We are honest in our communication. We follow through with our commitments. We fix our mistakes. • Service – We exist to serve our community: families, landlords, and neighbors. We balance empathy and understanding with accountability in all our interactions. • Stewardship – We take seriously our mission to maintain and expand housing as an asset to the community and to best use our financial resources to assist the greatest number. • Team Work – We work best together – collaborating and creatively solving problems. We embrace the challenge of our work in a spirit of partnership.
Table of Contents • Introduction 1 • Review of Key Objectives 6 • Organizational Overview 14 • Debt 20 • Staffing 27 • Budget Summaries 34 • Summary 51
Review of Key Objectives
Westend
HOUSING AUTHORITY OF SNOHOMISH COUNTY
Consolidated Operating Budget Proposal
For the period July 1, 2021 through June 30, 2022
Enclosed is the proposed budget for fiscal year 2022 for your consideration.
Locally and worldwide the economic climate is in distress due to the COVID‐19 pandemic. Governor Inslee has prohibited property owners from increasing rents and has set a temporary moratorium on
evictions of tenants for non‐payment of rent through June 30, 2021, and it is unknown if this will be extended or if new conditions will be placed on the collection of past‐due rent. Vacancy rates are currently
very low, and if the unemployment rate continues to stabilize, we are hopeful that vacancy rates will remain low. Even considering the slowed increase in rental rates, housing prices and rents are still
unaffordable for many residents of our County. There will continue to be demand for our rental properties due to our rents being $200 ‐ $300 below market rates.
We are continuing to invest in technology to streamline and improve our processes. We replaced all office computers in fiscal year 2020 due to a Microsoft operating system upgrade and then had to scramble
to move all but essential personnel out of the main office in mid‐March due to the Pandemic. We’re in the process of purchasing laptops for many employees to make their working‐from‐home experience
better. We’re also continuing to research other paperless options.
HOUSING CHOICE VOUCHER PROGRAM
HUD’s published fair market rents (FMR’s) increased 11% from 2019 to 2020 yet decreased in 2021. We kept our same Payment Standards which put us closer to 100% of FMR instead of the previous
90%. We have remained in a positive cash flow position since the end of 2019 when we were in shortfall and continue to monitor HUD’s 2‐year tool as we balance our lease‐up rate against potential future
shortfalls. Increases in per unit costs (PUC) are anticipated after the Governor’s order on rent increases is lifted which could result in a possible reduction in the number of families that will get assistance. We
are currently leasing up targeted funding vouchers in the Emergency Housing Voucher (EHV) and Mainstream voucher programs. We received CARES Act Supplemental Admin Fees in May 2020 and
additional CARES Act funds in August 2020 and were allowed to use these funds, totaling nearly $1.6 million, for all currently eligible Housing Choice Voucher activities as well as newly eligible activities
related to COVID‐19.
As fiscal year 2021 draws to a close we have continued uncertainty. If rents increase as predicted once the Governor’s order is lifted, HAP may not be enough and may lead to another funding shortfall. We
currently have a total of 330 VASH vouchers, and our ACC total is 4,131, an increase of 315 vouchers, 220 of which are Mainstream, 25 VASH, and 70 EHV.
HOUSING PROGRAMS
We continue to utilize cash flow to upgrade our previous Public Housing units to compete in the marketplace although at a much slower pace in fiscal year 2021 due to lower vacancies. As units are rehabbed
we are able to charge market rents on those units. Our bond projects are our other work force housing. We have benefitted from a moderately strong rental market over the last few years yet are uncertain if
this will continue. Any modest rent increases will be delayed until the Governor’s order is lifted. We are forecasting a reduction in rental revenue due to unpaid rents and possible higher vacancies, however
it is difficult to predict with any certainty the impact that COVID‐19 will have on our bottom line. Our properties have recently benefitted from the US Treasury Department’s Emergency Rental Assistance
Program (ERAP) rental assistance provided through the VOA, and we are anticipating additional rental assistance soon. We continue to use conservative money‐management techniques and may delay non‐
critical maintenance projects to conserve cash if necessary.
Our remaining projects are our senior and disabled housing, some of which is subsidized through USDA ‐ Rural Development, and by project‐based vouchers. We hope to implement a rent increase at
these properties once we are allowed. This increase is primarily funded by USDA since most tenants are already paying 30% of their income for their rent portion. The subsidy attached to these units
provides a valuable resource to the community. We continue to accumulate reserve funds for long term improvements; however, we are also spending these funds for much‐needed capital improvements.
OTHER INITIATIVES
We continue to look for new opportunities to expand awareness of affordable housing issues in the County. As part of that goal we are proposing in this year’s budget to again contribute operating
funding to support the work of the Alliance for Housing Affordability (AHA). We believe this continues to be necessary to support the efforts of local jurisdictions to work together on regional housing
solutions. We are continuing in our role as the fiscal agent for AHA.
Transit‐oriented affordable housing development in south Snohomish County continues to be a priority of our real estate development activities, although we anticipate delays due to projects that are in
our existing pipeline. These are redevelopment of Whispering Pines in Lynnwood, rezone and redevelopment of Timberglen & Pinewood in Lynnwood, and building a 26‐unit complex on property that is
adjacent to Westend in Marysville.
STAFFING
The FY 2021 budget includes 87 FTE’s, or full‐time equivalents, which is the total full‐time positions. This is a net increase of 8, as the Tenant Based Assistance division has been expanded to service the
increase in vouchers. There is one open position. Medical, retirement and other benefits have remained the same as last year. The employeeʹs participation rate for medical insurance premiums is
budgeted to remain at 20%.
The proposed budget includes merit pay increases as well as a proposed cost of living adjustment (COLA) of 1.6%, which was the percentage increase of the Consumer Price Index – Urban Wage Earners
and Clerical Workers index (CPI‐W) for the calendar year for the Seattle/Tacoma/ Bremerton area as published by the federal Bureau of Labor Statistics.
MANAGEMENT AND INSPECTION FEES
We continue to use the management fee approach recommended by HUD after the passage of the Quality Housing and Work Responsibility Act of 1998 (QHWRA). The recommendation was to adopt
asset management‐based model for property management whereby the manager/owner would charge various fees to the properties for the services they provide. HUD based its initial fees on the fees
established and used in its Multi‐family programs. HUD also encouraged adoption of a fee for service approach to the Housing Choice Voucher (Section 8) program.
USDA RD has also issued administrative notices indicating fee for service is the required approach. Rural Development fees are also established by regulations and are currently capped at $66 per unit per
month. Rather than allocating overhead costs to various projects, we accumulate these overhead costs in Local/Overhead and then bill out various fees to each project in order to recover our overhead
expenses. We also apply fees to our HASCO Communities and Fair Market Rental Programs and attempt to make up any shortfalls by adjusting the asset management fee where necessary. We increased
these fees by $5 per unit per month, or 7%, this year due to the anticipated sale of the scattered site duplexes and demolition of Whispering Pines prior to the rebuild, reducing the revenue needed to cover
overhead costs.
While we continue to use the management fee approach, we are consolidating the management fee, asset management fee, and the bookkeeping fee in a single $66‐$75 per unit month fee. We continue to
keep the inspection department under the management of the HCV department. The expenses related to inspections will be directly paid by the administration fee received from HUD rather than charging
an inspection fee as we did in past years.
Below is a summary of the fee estimates to be used for each project or program.
Management Fees by Property
Program Unit/Yr Rate Yr Fee Program Unit/Yr Rate Yr Fee
Willow Run 1,008 $ 66 $ 66,528 Alpine Ridge East 564 $ 50 $ 28,200
Hilltop House I 240 $ 66 $ 15,840 Alpine Ridge South 552 $ 50 $ 27,600
Hilltop House II 120 $ 66 $ 7,920 AIDS Units 24 $ 75 $ 1,800
River Vista I 240 $ 66 $ 15,840 East Terrace III 144 $ 75 $ 10,800
River Vista II 240 $ 66 $ 15,840 Thomas Lake 600 $ 75 $ 45,000
Wrobliski Manor 384 $ 66 $ 25,344 Raintree 1,344 $ 75 $ 100,800
Craigmont 432 $ 66 $ 28,512 Valley Commons 612 $ 75 $ 45,900
Glenwood 552 $ 66 $ 36,432 Millwood Estates 3,600 $ 75 $ 270,000
Soap Suds 48 $ 75 $ 3,600 Edmonds Highlands 1,440 $ 75 $ 108,000
Trillium 480 $ 75 $ 36,000 Ebey Arms 648 $ 75 $ 48,600
Woodlake Manor III 288 $ 75 $ 21,600 Bristol Square 1,152 $ 75 $ 86,400
Centerhouse 528 $ 75 $ 39,600 Autumn Chase 1,440 $ 75 $ 108,000
Timberglen 384 $ 75 $ 28,800 Carvel Apartments 2,760 $ 75 $ 207,000
Robin Park 360 $ 75 $ 27,000 Aurora House 12 $ 275 $ 3,300
North Terrace 144 $ 75 $ 10,800 Headstart 12 $ 275 $ 3,300
Stevens Circle 228 $ 75 $ 17,100
Alderwood 300 $ 75 $ 22,500 Section 8 Bookkeeping Fee 45,265 $ 7.50 $ 339,484
Pinewood 300 $ 75 $ 22,500 Section 8 Management Fee 3,668,000 20% $ 733,600
Centerwood 240 $ 75 $ 18,000
Maplewood 180 $ 75 $ 13,500 Total Management Fees $ 2,689,640
East Terrace 312 $ 75 $ 23,400
Cedar Grove 336 $ 75 $ 25,200
Basis of Budgeting
vs. Basis of Accounting
HASCO uses the GAAP basis of accounting & budgeting with the following exceptions:
• HASCO uses a modified accrual basis for budgeting
• The budget does not include accounting adjustments necessary to meet reporting requirements.
These include the timing recognition of certain accrued liabilities (such as accrued payroll
compensation) ordinarily performed at fiscal year end.
• Revenue is recognized in the period it becomes available and measurable; expenditures are reported
when the liability is incurred, if measurable.
• The budget document does not include any “below the line” expenses. Examples of those expenses are
extraordinary maintenance and depreciation. We are including debt payments to illustrate cash flow.
• The budget document does not include any of our tax credit properties.
• Capital needs are not included in this operations budget.Fiscal Year 2021 Highlights • Launched HASCO’s new website and hired a communications manager to help bring HASCO and its mission greater visibility. • Rolled out online application portal. • Successfully passed cyber security audit looking for vulnerabilities. • Remained 100% leased up with minimal vacancy loss at all properties. • Improved Resident relations as staff further engaged by listening and linking residents to outside resources. • Began preliminary site planning and design for development of 26 units on Cedar St in Marysville. • Engaged staff in racial equity training.
Fiscal Year 2021 Highlights
(cont’d.)
• Developed COVID resources page on HASCO Website.
• Opened the online wait list lottery for Mainstream‐eligible voucher applicants.
• Became a Family Community Supports certified provider.
• Maintained our A+/Stable rating with S&P Global Ratings.
• Paid off $4.6M Bristol Square FNMA loan.
• Updated the Admin Plan to remove policies that have a disparate impact on people of color.
• Shifted S8 inspections to an entirely paperless process.
• Processed 7,555 Section 8 certifications.
• Successfully passed annual financial audit.
• Office entrance and front desk area have been remodeled for visitor and employee safety.Budget Summary – Major Assumptions • HASCO operates on a fiscal year from July 1 through June 30. • COLA increase of 1.6% for all employees. • HASCO will administer 4,053 HAP vouchers based on a subsidy that is calculated by HUD based on CY2020 numbers. • HCV administrative fees are based on FY2020 rate levels prorated at 82% of projected eligibility, up from 81%. • HASCO projects continued near‐zero vacancy for all units. New vacancies will be made available to displaced tenants from Whispering Pines.
Organizational Overview
Stevens CircleFUND DESCRIPTIONS AND FUND STRUCTURE
A fund is an independent fiscal and accounting entity with a self‐balancing set of accounts. Fund accounting distinguishes funds based on their intended purpose and assists
management to present and verify compliance regarding finance‐related legal and contractual provisions. While HASCO uses the enterprise fund type and its measurement
focus is generally the same as that used by commercial entities, it does maintain separate accounting for resources that have unique uses and reporting requirements. We have
updated the fund titles to match the website descriptions.
Housing Choice Vouchers: Commonly referred to as Section 8, HASCO administers the Federal Government’s primary program for assisting low‐income families, the elderly,
and the disabled. HASCO receives funds from HUD to pay housing subsidy directly to landlords on behalf of the participating resident. HUD provides two sources of funding
to HASCO:
Rental subsidy to be paid directly to landlords for rent, and directly to participating residents for utility subsidy. These are the only costs allowed to be paid from
HAP funds.
Administrative fees, which are used to pay the administrative costs of managing the program.
Fair Market Rental Properties: These communities the Housing Authority owns and contracts with third‐party property management companies to manage the day‐to‐day
operations. There are no subsidies attached to these communities. Restricted to 50% of the units must be occupied by tenants with less than 80% of median income.
Seniors and People with Disabilities Properties: Senior / young‐disabled properties owned by HASCO and operated by HASCO staff. Most of these communities are financed
through the USDA program; the rest are heavily subsidized by the PBV program.
HASCO Communities: Our formerly low‐income housing portfolio; we own and manage these properties. There are no subsidies attached to these communities. Restricted to
50% of the units must be occupied by tenants with less than 80% of median income.
Manufactured Homes: Manufactured homes within designated parks. Residents own their own home and are responsible for its care and maintenance and pay a monthly pad
rent. HASCO owns and manages the land and common structures. Alpine Ridge is an age‐restricted (55+) community.
Other Miscellaneous Funds: This category includes our local fund, used for operating the day‐to‐day operations of HASCO; funds that have singular purpose or are a joint
venture with another entity; and the management of the tax credit properties.A4
The greatest source of revenue for the Housing Authority is the housing assistance payments received from HUD, which we estimate to exceed $56 million in FY2022. The Housing Authority is also budgeting to receive over $24 million in tenant rentals on our affordable, rural development, and market rate properties. The remaining expected revenue streams will be the monthly management fees received from each of our properties, portability reimbursements and fees, miscellaneous tenant revenues such as parking fees and utility reimbursements on our market rate properties, and interest on our investments.
On the expense side, lease payments to Section 8 landlords account for most of the total expenditures. Salaries & benefits typically are the second largest expenditure. We expect to spend nearly $3.8 million on maintenance and labor expenses for our owned properties. The remaining expenses are fees for management of the properties, utilities, interest on outstanding debt, and office and professional services.
Debt
Thomas PlaceDEBT SERVICE SUMMARY
Housing Authority of Snohomish County
DEBT MANAGEMENT POLICY
Because the Authority has no taxing powers, each project for which debt is issued should be self‐supporting to the greatest extent possible. It is the Authority’s intention to underwrite
and issue debt for long‐term needs and specific projects with the intention that each project be self‐supporting, and to manage the use of debt so that debt service payments will be a
manageable part of each project’s operating budget.
In general, the Authority will attempt to raise capital at the lowest possible cost. This will be dependent on the fundamentals of the project and/or specific conditions of credit markets at
the time a project is financed.
DEBT SCHEDULES
The Housing Authority currently has eleven (11) revenue bond issues outstanding along with other notes and loans payable. Three (3) of these bond issues are conduit bond issues
whereby we have loaned the proceeds to private sponsors. The remaining eight (8) revenue bond issues are for projects owned directly by the Housing Authority.
I have included a chart that summarizes the debt service payments the Housing Authority anticipates making in fiscal year 2022. The second chart, below, outlines our anticipated debt
service for all Authority bond issues currently outstanding for the next 5 years.
This schedule does not include conduit financed projects. As you can see from the chart, annual debt service for our projects is approximately $6.3 million per year through 2027. In FY
2031 a balloon payment of approximately $6.7 million will be due for Autumn Chase unless the project is refinanced.
CONDUIT BOND ISSUES
From time to time the Authority has issued debt for the purpose of providing financing for projects owned by other sponsors in the County. The Housing Authority issues the debt and
loans the proceeds to the private sponsor. The private sponsor is then responsible for repayment of the debt through the terms of a loan and regulatory agreement.
There are three (3) such bond issues outstanding. One of these bond issues is for our own tax credit partnership, Olympic and Sound View. Another tax credit project where the Housing
Authority assisted with financing was the Avondale Village project for Housing Hope. The remaining projects were refinanced and were developed by the Snohomish Affordable
Housing Group, a non‐profit sponsor operating in the City of Snohomish.
It is important to remember that although we do not include these projects in our operating budgets, these outstanding bonds are liabilities of the Housing Authority, are reported on our
financial statements, and do contribute to our total outstanding liabilities. The outstanding balances are included in the debt schedule of our audited financial statements each year.SENIORS AND PEOPLE WITH DISABILITIES PROJECTS
The two revenue bond issues associated with Rural Development Projects were for the Pooled Project; where the proceeds were used to refinance Willow Run, Hilltop House 1 & 2, River
Vista 1 & 2, and Wrobliski Manor, and to complete the purchase of Fairview and Woodlake Manor III. We have since sold Fairview to Housing Hope and repaid that portion of the
revenue bond. The interest credit notes are federally subsidized loans which effectively reduce the interest rate of the loans to 1%.
FAIR MARKET HOUSING DEBT
Our remaining six (6) revenue bond issues were for acquisition of projects in our market rate housing portfolio. The Thomas Place and the Alpine Ridge (Squire and Kingsbury) Mobile
Home Parks also have several other deferred loans that were secured from the State or the County in order to acquire and develop the parks. These loans have unique deferral or
repayment features. We paid off the outstanding bond on Millwood Estates on July 9, 2018. On September 13, 2018, we acquired Carvel Apartments with a $70 million Revenue
Note. The Housing Authority issued refunding revenue bonds in the par amount of $68,290,000 on April 10, 2019, that were used to refund the $70 million interim loan with Key
Bank. We pledged the Housing Authority General Revenues when issuing these bonds rather than property deeds of trust and had S&P rate the bonds. We will continue to report our
General Revenues each year while this bond issue is outstanding. We paid off the debt for Bristol Square in February 2021 using interfund loans from Edmond Highlands and Westend.
MISCELLANEOUS DEBT
The Housing Authority also has several issues of miscellaneous debt. Several are deferred loans from the State for the Aids Housing facility and Ebey Arms. The others are recoverable
grants that eventually may be forgiven or are interest‐only notes, such as for Olympic and Sound View LLC, which provided long term bridge financing for the tax credit
partnership. Many of these loans and notes payable have unique repayment, deferral, or forgiveness features which are meant to further the long‐term affordability of the projects they
were awarded to. As reminder, the outstanding balances are included in the debt schedule of our audited financial statements each year and can be found on HASCO’s website.HASCO Property Valuation vs. Debt
Manufactured Homes HASCO Communitites Fair Market Properties Elderly & People with Disabilities HASCO Managed Local
Property Valuation DebtStaffing
CenterwoodHASCO Employee Attributes • Authentic – We are all unique individuals who seek to bring our full selves to work. We share our personalities and interests and celebrate each other’s successes and personal milestones. • Dedicated – We are fully committed to our mission and shared sense of purpose. We strive to continuously learn and grow in support of our work. • Kind and Compassionate – We care about the people we work for and work with. We demonstrate compassion, empathy and a desire to help. • Professional – We are confident, calm and consistent. We clearly communicate our policies and work with our clients to resolve problems. • Respectful – We treat all people with respect and dignity acknowledging them as individuals with unique circumstances and needs.
Staffing
• Departments continue to be reorganized to bring staff
responsibilities in line with work performed.
• Employee tenure average is 8.4 years, and our longest‐
tenured employee has worked with us 29 years.
• Hired 13 new employees and promoted 10 employees.
Department FY17 FTE FY18 FTE FY19 FTE FY20 FTE FY21 FTE FY22 FTE
Administrative Services 10 11 12 16 15 18
Asset Management 24 25 27 27 27 27
Development and Policy 5 5 5 5 0 0
Executive 7 7 7 2 3 4
Finance 8 8 8 9 10 10
Tenant Based Assistance 14 16 17 21 23 28
Unassigned 1 1 1 1
Total 68 72 77 81 79 88Fiscal Year 2022 Budget Summaries
Olympic View
Consolidated by divisionFiscal Year 2022 Budget
Elderly & HASCO
Manufactured HASCO Fair Market People with Managed
Total Local Section 8 HCV Housing Communities Properties Disabilites Properties
Tenant Revenue 26,210,724 205,440 819,780 4,331,035 18,091,214 2,577,639 185,616
HUD PHA Operating Grants 56,577,276 56,577,276
Fee Revenue 2,702,996 2,702,996
Other Operating Revenue 3,633,540 12,100 3,621,440
Investment Income ‐ Unrestricted 38,200 1,500 500 8,490 24,010 3,000 700
Operating Revenue $ 89,162,736 $ 2,920,536 $ 60,200,216 $ 820,280 $ 4,339,525 $ 18,115,224 $ 2,580,639 $ 186,316
Wages & Benefits 10,080,879 2,910,445 2,784,953 178,948 979,635 2,129,941 770,930 97,249
Office Expenses 7,397,482 439,972 1,490,422 275,002 853,594 3,556,803 735,674 38,970
Maintenance Expenses 2,139,415 22,737 544 49,765 406,834 1,378,402 257,584 23,549
Housing Assistance Payments 56,055,000 110,000 55,945,000
Other Expenses 221,376 3,400 750 6,000 56,835 126,841 27,550
Operating Expense $ 75,894,152 $ 3,486,554 $ 60,221,668 $ 509,716 $ 2,296,898 $ 7,191,987 $ 1,791,737 $ 159,768
Net Income / (Loss) from Operations $ 13,268,584 $ (566,018) $ (21,452) $ 310,564 $ 2,042,627 $ 10,923,236 $ 788,902 $ 26,548
Required Annual Debt Principal 3,302,005 129,446 274,645 2,496,260 401,654
Interest Expenses & Amortization 3,904,085 128,743 122,792 3,583,920 68,630
Net Income / (Loss) $ 6,062,494 $ (566,018) $ (21,452) $ 52,376 $ 1,645,190 $ 4,843,056 $ 318,617 $ 26,548
*Totals may not sum across because tax credit properties are not included in the budget presentationFiscal Year 2022 Budgeted Cash Flow
Elderly & HASCO
Manufactured HASCO Fair Market People with Managed
By Properties Local Section 8 HCV Housing Communities Properties Disabilites Properties
Cash Receipts from Tenants 25,153,030 205,440 819,780 4,329,135 18,233,368 1,379,692 185,616
Cash Receipts from Govt Grants 56,477,276 56,477,276
Cash Receipts from Other Sources 6,436,536 2,715,096 3,721,440
Cash Payments to Suppliers for Goods & Services (15,369,871) (557,040) (1,392,884) (330,770) (1,315,626) (10,081,855) (1,624,651) (61,770)
Cash Payments for Housing Assistance (56,028,000) (56,028,000)
Cash Payments to Employees for Wages/Benefits (10,080,879) (2,910,445) (2,784,953) (178,948) (979,635) (2,129,941) (770,930) (97,249)
Net Cash Provided/(Used) by Operating Activities $ 6,588,093 $ (546,950) $ (7,121) $ 310,061 $ 2,033,874 $ 6,021,572 $ (1,015,889) $ 26,596
Cash Received from Grantors 1,105,133 1,105,133
Other non‐capital proceeds 64,200 64,200
Net Cash Provided/(Used) by Non‐Capital Financing $ 1,169,333 $ 64,200 $ 1,105,133
Purchase or Construction of Capital Assets 3,491,723 246,574 50,892 424,394 2,468,831 259,650 41,381
Proceeds from / (Repayment of) LT Debt or Loans (6,793,728) (246,574) (180,338) (699,039) (4,965,091) (661,305) (41,381)
Interest & Fees Paid on LT Debt or Loans (3,892,785) (127,243) (116,992) (3,579,920) (68,630)
Net Cash Provided/(Used) by Capital Financing $ (7,194,790) $ (0) $ (256,689) $ (391,637) $ (6,076,180) $ (470,285) $ (0)
Interest Received 38,200 1,500 500 8,490 24,010 3,000 700
Net Cash Provided/(Used) by Investing Activities $ 38,200 $ 1,500 $ 500 $ 8,490 $ 24,010 $ 3,000 $ 700
Net Increase/(Decrease) in Cash & Equivalents $ 600,835 $ (482,750) $ (5,621) $ 53,873 $ 1,650,727 $ (30,598) $ (378,041) $ 27,296Fiscal Year 2022 Budgeted EBITDA
(in millions)
Operating Revenue,
$89,163
Wages & Maint. Office Debt
Housing Assistance Payments, Benefits, Expenses, Expenses, Prin., EBITDA,
$56,055 $9,852 $7,877 $7,623 $3,302 $4,453A9
EBITDA Margin
The EBITDA Margin is a ratio that measures how our net position is measured against our revenue,
shown as a percentage. It can be seen as a more precise measure of operational efficiency. Because
the Section 8 program is designed to spend all of the funds it receives, its EBITDA Margin is 0.
HASCO
Communities, 41%
Manufactured
HASCO Managed
Housing, 22%
Properties, 14%
Fair Market
Properties, 18%
Elderly & Section 8 HCV, 0%
People with
Disabilites,
‐9%
Local, ‐19%HASCO Communities Alderwood – 25 units in Lynnwood Cedar Grove – 28 units in Marysville Center House – 44 units in Everett Centerwood – 20 units in Everett East Terrace – 40 units in Mountlake Terrace Maplewood – 15 units in Snohomish North Terrace – 12 units in Mountlake Terrace Pinewood – 25 units in Lynnwood Robin Park – 30 units in Lynnwood Stevens Circle – 19 units in Lake Stevens Timberglen – 32 units in Lynnwood Trillium – 40 units in Mountlake Terrace
A8
FY2022 HASCO Communities Budget by Property
HASCO Center North Aurora Stevens
Communities Alderwood Cedar Grove House Centerwood E. Terrace Maplewood Terrace Pinewood Robin Park Trillium House Headstart Timberglen Circle
Tenant Revenue 4,331,035 348,774 387,906 537,870 276,640 389,499 182,688 135,264 349,902 424,160 566,280 12,060 10,776 460,800 248,416
Investment Income ‐ Unrestricted 8,490 600 225 325 500 1,200 125 425 800 450 2,400 1,440
Operating Revenue $ 4,339,525 $ 349,374 $ 387,906 $ 538,095 $ 276,965 $ 389,999 $ 183,888 $ 135,389 $ 350,327 $ 424,960 $ 566,730 $ 14,460 $ 12,216 $ 460,800 $ 248,416
Wages & Benefits 979,635 76,770 108,946 89,252 50,689 91,793 80,107 50,518 56,689 82,221 101,660 718 718 120,653 68,903
Office Expenses 853,594 54,736 75,386 109,856 51,080 97,356 38,952 32,001 57,876 74,406 107,717 4,823 4,040 86,730 58,352
Maintenance Expenses 406,834 26,404 45,578 50,260 29,660 44,406 16,797 15,623 30,923 38,768 39,203 820 40,127 28,265
Other Expenses 56,835 16,000 27,295 1,550 1,850 600 9,540
Operating Expense $ 2,296,898 $ 157,910 $ 245,910 $ 276,662 $ 132,979 $ 233,554 $ 135,856 $ 98,141 $ 145,489 $ 197,245 $ 249,180 $ 5,541 $ 5,578 $ 247,510 $ 165,061
Net Income / (Loss) from Operations $ 2,042,627 $ 191,464 $ 141,996 $ 261,433 $ 143,986 $ 156,445 $ 48,032 $ 37,248 $ 204,838 $ 227,715 $ 317,550 $ 8,919 $ 6,638 $ 213,290 $ 83,355
Required Annual Debt Principal 274,645 87,645 85,000 102,000
Interest Expenses & Amortization 122,792 56,811 65,981
Net Income / (Loss) $ 1,645,190 $ 191,464 $ 141,996 $ 116,977 $ 143,986 $ 156,445 $ 48,032 $ 37,248 $ 204,838 $ 227,715 $ 166,569 $ 8,919 $ 6,638 $ 111,290 $ 83,355Seniors & People with
Disabilities
Craigmont – 36 Units in Lake Stevens
Glenwood – 46 Units in Lake Stevens
Hilltop House – 30 Units in Stanwood
River Vista – 40 Units in Arlington
Willow Run – 84 Units in Marysville
Wrobliski Manor – 32 Units in Arlington
PBV Units – 42 units in Snohomish & Mtlk TerraceFY2022 Elderly & People with Disabilities Budget by Property
Elderly &
People with Woodlake
Disabilites Craigmont Glenwood Hilltop River Vista Willow Run Wrobliski Soap Suds Manor
Tenant Revenue 2,577,639 318,532 429,498 243,908 311,122 664,653 267,022 55,145 287,760
Investment Income ‐ Unrestricted 3,000 500 1,500 100 900
Operating Revenue $ 2,580,639 $ 318,532 $ 429,998 $ 243,908 $ 311,122 $ 666,153 $ 267,022 $ 55,245 $ 288,660
Wages & Benefits 770,930 104,158 126,917 75,539 111,516 180,559 89,076 14,069 69,097
Office Expenses 735,674 115,399 156,525 82,949 88,664 155,205 77,446 11,580 47,906
Maintenance Expenses 257,584 33,454 32,398 31,438 31,477 66,487 33,360 8,253 20,717
Other Expenses 27,550 6,022 8,112 269 7,158 752 5,237
Operating Expense $ 1,791,737 $ 259,033 $ 323,953 $ 190,195 $ 238,815 $ 403,002 $ 205,118 $ 33,902 $ 137,720
Net Income / (Loss) from Operations $ 788,902 $ 59,499 $ 106,046 $ 53,713 $ 72,307 $ 263,150 $ 61,904 $ 21,343 $ 150,940
Required Annual Debt Principal 401,654 50,010 28,124 39,291 49,898 135,104 63,857 35,370
Interest Expenses & Amortization 68,630 9,210 7,550 10,050 21,140 8,160 12,521
Net Income / (Loss) $ 318,617 $ 9,489 $ 68,711 $ 6,873 $ 12,359 $ 106,906 $ (10,112) $ 21,343 $ 103,049Market Rate Rentals
Autumn Chase – 120 Units in Bothell
Bristol Square – 96 Units in Lynnwood
Carvel – 230 Units in Mukilteo
Ebey Arms – 54 Units in Marysville
Edmonds Highlands – 120 Units in Edmonds
Millwood Estates – 300 Units in Lynnwood
Raintree Village – 112 Units in Everett
Valley Commons – 51 Units in Marysville
We are not budgeting Whispering Pines due to pending demolition.FY2022 Fair Market Properties Budget by Property
Fair Market Edmonds Millwood Raintree Valley
Properties Autumn Chase Bristol Square Carvel Ebey Arms Highlands Estates Village Commons
Tenant Revenue 18,091,214 2,314,871 1,489,706 4,509,172 618,284 2,062,410 4,968,969 1,359,612 748,254
Investment Income ‐ Unrestricted 24,010 5,000 2,500 1,460 700 4,800 3,200 5,350 1,000
Operating Revenue $ 18,115,224 $ 2,319,871 $ 1,492,206 $ 4,510,632 $ 618,984 $ 2,067,210 $ 4,972,169 $ 1,364,962 $ 749,254
Wages & Benefits 2,129,941 283,930 173,051 482,359 93,564 263,895 589,136 153,068 71,872
Office Expenses 3,556,803 484,060 320,194 761,899 200,447 374,755 980,136 274,678 158,759
Maintenance Expenses 1,378,402 192,952 120,925 287,465 58,065 158,658 398,353 92,881 69,103
Other Expenses 126,841 7,539 4,700 4,811 15,470 11,651 15,475 38,866 28,329
Operating Expense $ 7,191,987 $ 968,481 $ 618,870 $ 1,536,534 $ 367,546 $ 808,959 $ 1,983,100 $ 559,494 $ 328,063
Net Income / (Loss) from Operations $ 10,923,236 $ 1,351,390 $ 873,336 $ 2,974,098 $ 251,438 $ 1,258,251 $ 2,989,069 $ 805,468 $ 421,191
Required Annual Debt Principal 2,496,260 237,110 482,220 671,280 80,430 295,000 528,720 117,800 83,700
Interest Expenses & Amortization 3,583,920 308,371 1,579,106 34,825 246,944 1,244,425 99,510 70,739
Net Income / (Loss) $ 4,843,056 $ 805,909 $ 391,116 $ 723,712 $ 136,183 $ 716,307 $ 1,215,924 $ 588,158 $ 266,752Manufactured Homes Alpine Ridge – 93 Homes in Lynnwood Thomas Place – 50 Homes in Everett
FY2022 Manufactured Housing
Budget by Property
Manufactured
Housing Alpine Ridge Thomas Place
Tenant Revenue 819,780 571,380 248,400
Investment Income ‐ Unrestricted 500 500
Operating Revenue $ 820,280 $ 571,380 $ 248,900
Wages & Benefits 178,948 117,119 61,829
Office Expenses 275,002 170,565 104,436
Maintenance Expenses 49,765 36,777 12,988
Other Expenses 6,000 6,000
Operating Expense $ 509,716 $ 324,461 $ 185,254
Net Income / (Loss) from Operations $ 310,564 $ 246,919 $ 63,646
Required Annual Debt Principal 129,446 125,000 4,446
Interest Expenses & Amortization 128,743 128,240 503
Net Income / (Loss) $ 52,376 $ (6,321) $ 58,697HCV Program (Section 8)
# of Hshlds
in Avg Avg Tenant
Bdrm Bedroom Contract Tenant Portion of
HASCO HCV Demographics Size Size Rent Rent Rent
Total Number of Households Evaluated 4,089 0 34 $1,037 $206 20%
Total Number of Family Members 8,855 1 1,379 $1,144 $220 19%
Avg Annual Income $16,802 2 1,512 $1,364 $251 18%
% of Households with Disabled Member 60% 3 820 $1,756 $382 22%
% of Households with Non-Elderly Disabled 36% 4 290 $2,173 $454 21%
% of Disabled Seniors 23% 5 45 $2,446 $387 16%
% Non-Disabled Senior Households 11% 6 6 $2,024 $331 16%
% Families with Children 37% 7 3 $2,420 $198 8%FY2022 Housing Choice
Vouchers Budget
HUD PHA Operating Grants 52,500,000
Housing Assistance Payments 52,400,000
Net Restricted Position $ 100,000
Unrestricted Income Received $ 7,700,216
Wages & Benefits 2,784,953
Office Expenses 1,408,716
Ports & Related Expenses 3,628,000
Expenses Paid from Admin Fees $ 7,821,668
Unrestricted Net Position $ (121,452)Local Operations Local Operations funds the research of projects under consideration, office management, and the administration of the tax credit properties. We intend to make significant investments in fiscal year 2022 to improve office technology, provide staff with appropriate training and support, and continue to participate in housing advocacy efforts. Because local operations will no longer be receiving management fees from Whispering Pines and the scattered sites, we anticipate a net loss in operations in fiscal year 2022. We will monitor local’s financial position and take appropriate steps to minimize or defer anticipated expenditures.
FY2022 Local
Operations Budget
Tenant Revenue 205,440
Fee Revenue 2,702,996
Other Operating Revenue 12,100
Operating Revenue $ 2,920,536
Wages & Benefits 2,910,445
Office Expenses 439,972
Maintenance Expenses 22,737
Housing Assistance Payments 110,000
Other Expenses 3,400
Operating Expense $ 3,486,554
Net Income / (Loss) $ (566,018)Goals for Fiscal Year 2022
Willow RunPriorities for the coming year
• Lease up to 70 EHV vouchers.
• Analyze and execute technology solutions.
• Move accounts payable to a web‐based, paperless portal.
• Sell the scattered sites duplexes to fund new developments.
• Begin the demolition process for Whispering Pines.
• Offer a safe office‐based work environment for employees who plan to
return to the building. Continue to support employees working
remotely.Summary • The Housing Authority will continue to renovate our properties as funds allow to provide safe, comfortable, and affordable housing within the community. • Management will collaborate with community partners in order to find opportunities to support housing programs throughout the county. • Our staff is dedicated to helping individuals find resources to thrive in economical, clean, and secure homes, and to fairly administer those resources to ensure we meet all statutory and recommended reporting requirements. • Information technology will implement solutions to ensure we maximize our efficiency and financial stewardship. • The Housing Authority would like to thank the Board of Directors for their support of our vision and goals.
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