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HRA REport 2014-03 Public Housing Operating Budget-4ca City of Kopkin8 March 12, 2014 Public Housing Operating Budget Proposed Action HRA Report 2014-03 Staff recommends the following motion: adopt Resolution 496, approving the Operating Budget for the period ending 3/31/15. With approval of this motion, staff will complete the Operating Budget documents and make them available to HUD for their review, adjustment and approval. Overview Each year the HRA is required by the Department of Housing and Urban Development (HUD) to develop and approve a budget for the operation of the 76 units of Hopkins HRA -owned Public Housing at Dow Towers. HUD currently distributes Operating Subsidy based on the calendar year rather than the HRA fiscal year. In addition to preparing the fiscal year budget, HUD annually requests the submission of the Operating Subsidy Calculation. When Congress determines the amount of funding for public housing programs, we will be notified of the actual amount. For 2014, we will receive Operating Subsidy funding from HUD to assist in the general operations at Dow Towers. The Operating Budget is for our use as a guide during our budget year; however, HUD requires the Budget to be reviewed and approved by resolution. Supporting Information • Calculation of Operating Budget Forms HUD -52564 • HUD Form 52574/Resolution 496 Alternatives The HRA has the following alternatives regarding this issue: 1. Approve the action as recommended by staff. 2. Continue for further information. l Stacy UrTowsy, Executi irector Operating Budget U.S. Department of Housing and Urban Development Office of Public and Indian Housing See page four for instructions and Public reporting burden statement "OMB Approval No. 2577-0026 (exp. 9/30/2006) a. Type of Submission b. Fiscal Year Ending c. No. of months (check one) 0.00 d. Ty e of HUD assisted project(s) ❑X Original Revision No.: 03/31/15 2X 12 mo. Other (specify) 01 02 ❑ PHA/IHA-Owned Rental Housing IHA Owned Mutual Help Homeownership Agency/Indian Housing Authority e. Name of Public Housing HOPKINS HOUSING AUTHORITY (PHA/IHA) Operating Receipts 070 3110 Dwelling Rental 267.18 253.29 03 [:]PHA/IHA 04 ❑PHA/IHA Leased Rental Housing Owned Turnkey III Homeownership 080 3120 Excess Utilities f. Address (city, State, zip code) 1010 1ST STREET 4.17 4.17 3,800 090 05 ❑ PHArIHA Leased Homeownership HOPKINS, MN 55343 0.00 0 100 Total Rental Income (sum of lines 070, 080, and 090) 271.38 257.46 g. ACC Number h. PAS/LOCCS Project No. 110 3610 Interest on General Fund Investments 0.00 i. HUD Field Office C-942 MN07800113M 120 3690 Other Income 233.64 MINNEAPOLIS ' . N 0 of Dwelling Units J . 9 k. No. of Unit Months m No. of Projects Total Rental Income sum of lines 100, 110, and 120 505.02 260.75^ 260.20 Available Operating Expenditures -Administration: 140 4110 lAdministrative Salaries 80.45 91.01 95.75 76 9 12 ONE 13.25 13.71 12.42 11,330 150 4130 Le al Ex ense 4.98 Actual RX Estimates 4,000 160 4140 Staff Training 2.12 2.41 Last Fiscal 11 or Actual Requested Budget Estimates 4150 Travel 0.39 0.66 0.66 Yr. Current Budget yr. PHA/IHA Estimates HUD Modifications Line Acct. 4.61 4,200 03/31/13 03/31/14 Amount Amount No. No. Description 200 PUM PUM PUM (to nearest $10) PUM (to nearest $10) 13.60 12,400 (1) 4192 Advertising & Marketing (2) (3) (4) (5) (6) (7) Homebuyers Monthly Payments for: 010 7710 10perating Expense 0.00 020 7712 Earned Home Payments 0.00 030 7714 Nonroutine Maintenance Reserve 0.00 Operating Receipts 070 3110 Dwelling Rental 267.18 253.29 252.19 230,000 080 3120 Excess Utilities 4.20 4.17 4.17 3,800 090 3190 Nondwelling Rental 0.00 0 100 Total Rental Income (sum of lines 070, 080, and 090) 271.38 257.46 256.36 233,800 110 3610 Interest on General Fund Investments 0.00 0.00 0.00 0 120 3690 Other Income 233.64 3.29 3.84 1 3,500 130 Total Rental Income sum of lines 100, 110, and 120 505.02 260.75^ 260.20 237,300 Operating Expenditures -Administration: 140 4110 lAdministrative Salaries 80.45 91.01 95.75 87,320 145 411045 Administrative Benefits 13.25 13.71 12.42 11,330 150 4130 Le al Ex ense 4.98 4.39 4.39 4,000 160 4140 Staff Training 2.12 2.41 2.41 2,200 170 4150 Travel 0.39 0.66 0.66 600 180 4170 Accounting Fees 3.71 4.39 4.61 4,200 190 4171 Auditing Fees 0.00 0 200 4190 Office Expense 18.46 12.61 13.60 12,400 200 4192 Advertising & Marketing 0.11 0.33 300 200 4194 Other Admin Expense 0.77 1.54 0.66 600 210 Total Administrative Ex ense (sum of line 140 thru line 200) 124.13 130.83 134.81 122,950 Tenant Services: 220 4210 ISalaries 0.00 0 225 421045 Tenant Services Benefits 0.00 230 4220 Recreation, Publications and Other Services 0.09 0.00 240 4230 Contract Costs, Training and Other 0.00 250 Total Tenant Services Expense (sum of lines 220, 230, and 240) 0.09 0.00 0.00 0 Utilities: 260 4310 Water 4.34 4.39 4.17 3,800 270 4320 Electricity 37.88 39.14 39.14 35,700 280 4330 Gas 16.36 19.19 19.74 18,000 290 4340 Fuel 0.00 0.00 0- 300 4390 Other Utilities Expense 9.20 8.99 8.77 8,000 310 4391 Garbage Removal 10.52 9.32 10.09 9,200 320 ITotal Utilities Expense sum of line 260 thru line 310 78.30 81.03 81.91 74,700 0.00 form HUD -52564(3/95) Previous editions are obsolete Page 1 of 3 ref. Handbook 7475.1 ame of PHA/IHA HOPKINS HOUSING AUTHORITY 6010 1 Prior Year Adjustments Affecting Residual Receipts Fiscal Year Ending 03/31/15 ine Jo. Acct No. Description (1) Actual Last Fiscal Yr. 03/31/13 PUM (2) FX Estimates ❑ or Actual Current Budget Yr, 03/31/14 PUM (3) PUM (4) HUD Modifications Amount Amount (to nearest $10) PUM (to nearest $10) (5) (6) (7) rdinary Maintenance and Operation: 10 11 4410 ILabor 85.23 87.72 89.47 81,600 15 ww Maintenance Benefits 12.22 12.06 15.73 14,350 10 4420 Materials 15.60 23.03 25.22 23,000 i0 4430 Misc contract Costs 13.11 13.16 14.47 13,200 i0 4432 Heating & Cooling Contracts 0.53 0.55 0.55 500 i0 4433 Snow Removal Contracts 31.39 141.09 0.00 0 50 4434 Elevator Maintenance Contracts 4.05 4.74 5.48 5,000 M 4435 Landscape & Grounds Contracts 2.13 2.19 1.10 1,000 50 4436 1 Unit Turnaround Contracts 8.25 7.68 10.96 10,000 50 4437 Electrical Contracts 1.18 1.21 1.64 1,500 50 4438 Plumbing Contracts 1.66 2.19 3.84 3,500 i0 4439 Extermination Contracts 16.93 0.82 7.68 7,000 50 4440 Janitorial Contracts 0.30 0.22 0.00 0 50 4441 Routine Maintenance Contracts 0.22 0,33 0.00 0 i0 Total Ordinary Maintenance & Operation Expense (lines 330 to 350) 161.41 155.90 176.15 160,650 an Expense: 10 4510 Insurance - Property 13.96 14.80 14.80 13,500 10 4511 Insurance -Liability 6.83 6.58 6.58 6,000 10 4512 Insurance - Work Comp 3.73 4.93 4.93 4,500 10 4513 Insurance - Other 1.10 0.11 0.22 200 ?0 4520 Payments in Lieu of Taxes 9.65 8.82 8.72 7,955 30 4530 Terminal Leave Payments 0.00 50 4570 Collection Losses 1.92 0.55 0.55 500 30 4590 Other General Expense 0.00 IO Total General Expense sum of lines 410 to 460 33.35 35.79 35.81 32,655 30 Total Routine Expense sum of lines 210, 250, 320, 360, 400, and 470) 397.28 403.55 428.68 390, 955.00 30 Total ODeratin0 Expenditures (sum of lines 500 and 540) 397.28 403.55 428.68 _ 390, 955.00 dor Year Adiustments: 30 6010 1 Prior Year Adjustments Affecting Residual Receipts 0.00 they Expenditures: 70 1 Deficiency in Residual Receipts at End of Preceding Fiscal Yr. 0.00 30 Total Operating Expenditures, including prior year adjustments and other expenditures line 550 plus or minus line 560 plus line 570) 397.28 403.55 428.68 390,955 )0 Residual Receipts (or Deficit) before HUD Contributions and provision for operating reserve line 130 minus line 580 107.74 142.80 168.48 153,655 UD Contributions: )0 8010 113asic Annual Contribution Eamed-Leased Projects: Current Year 0.00 10 8011 Prior Year Adjustments - Debit Credit 0.00 10 Total Basic Annual Contribution line 600 plus or minus line 610 0.00 0.00 0.00 0 30 8020 Contributions Eamed-0 . Subsidy: -Cur. Yr.(before year-end adj) 31.39 141.09 142.69 130,130 2014 estimated 40 Mandatory PFS Adjustments (net): 0.00 50 Others 0.00 30 Others 0.00 70 Total Year -End Adjustments/Other (plus or minus lines 640 thru 660) 0.00 0.00 0.00 0 30 8020 Total O eratin Subsid -current ear pine 630 Plus or minus we 6701 31.39 141.09 142.69 130,130 30 1 Total I HUD Contributions (sum of lines 620 and 680) 1 31.39 141.09 142.69 130,130 )0 1 [Residual Receipts (or Deficit) (sum of line 590 plus line 690) form HUD -52564(3/95) revious editions are obsolete Page 2 of 3 ref. Handbook 7475.1 5% 10% 7955 15910 Name of PHA/IHA HOPKINS HOUSING Year Ending 03/31/15 Operating Reserve PHA/IHA Estimates HUD Modifications PartI - Maximum Operating Reserve -End of Current Budget Year 740 2821 1 PHARHA-Leased Housing - Section 23 or 10(c) 50% of Line 480. column 5. form HUD -52564 Comments PHA / IHA Approval Name Title Signature Field Office Approval Name Title Signature Date Date form HUD -52564(3/95) Previous editions are obsolete Page 3 of 3 ref. Handbook 7475.1 Part II -Provision for and Estimated or Actual Operating Reserve at Fiscal Year End 780 Operating Reserve at End of Previous Fiscal Year - Actual for FYE (date): 790 Provision for Operating Reserve - Current Budget Year (check one) ❑X Estimated for FYE ❑ Actual for FYE 800 Operating Reserve at End of Current Budget Year (check one) Estimated for FYE E] Actual for FYE N/A 810 Provision for Operating Reserve - Requested Budget Year Estimated for FYE Enter Amount from line 700 0 820 Operating Reserve at End of Requested Budget Year Estimated for FYE (Sum of lines 800 and 810)0 830 Cash Reserve Requirement- 25 % Of line 480 0 Comments PHA / IHA Approval Name Title Signature Field Office Approval Name Title Signature Date Date form HUD -52564(3/95) Previous editions are obsolete Page 3 of 3 ref. Handbook 7475.1 PHA Board Resolution U.S. Department of Housing OMB No. 2577-0026 Approving Operating Budget and Urban Development (exp. 04/30/2016) Office of Public and Indian Housing - Real Estate Assessment Center (PIH-REAC) Public reporting burden for this collection of information is estimated to average 10 minutes per response, including the time for reviewing instructions, searching existing data sources, gathering and maintaining the data needed, and completing and revie This information is required by Section 6(c)(4) of the U.S. Housing Act of 1937. The information Is the operating budget for the low-income public housing program and provides a summary of the proposed/budgeted receipts and expenditures, approval of budg PHA Name: HOPKINS HOUSING AUTHORITY PHA Code: MN078 PHA Fiscal Year Beginning: 04/01/2014 Board Resolution Number: 496 Acting on behalf of the Board of Commissioners of the above-named PHA as its Chairperson, I make the following certification and agreement to the Department of Housing and Urban Development (HUD) regarding the Board's approval of (check one or more as applicable): DATE X❑ Operating Budget approved by Board resolution on: Operating Budget submitted to HUD, if applicable, on: Operating Budget revision approved by Board resolution on: Operating Budget revision submitted to HUD, if applicable, on: I certify on behalf of the above-named PHA that: 1. All statutory and regulatory requirements have been met; 2. The PHA has sufficient operating reserves to meet the working capital needs of its developments; 3. Proposed budget expenditure are necessary in the efficient and economical operating of the housing for the purpose of serving low-income residents; 4. The budget indicates a source of funds adequate to cover all proposed expenditures; 5. The PHA will comply with the wage rate requirement under 24 CFR 968.110(c) and (f); and 6. The PHA will comply with the requirements for access to records and audits under 24 CFR 968.110(i). I hereby certify that all the information stated within, as well as any information provided in the accompaniment herewith, if applicable, is true and accurate. Warning: HUD will prosecute false claims and statements. Conviction may result in criminal and/or civil penalties. (18 U.S.C. 1001, 1010, 1012.31, U.S.C. 3729 and 3802) Print Board Chairperson's Name: Signature: Date: Previous editions are obsolete form HUD -52574 (04/2013)