FY2020 Approved Budget by NRHA

FY 2020 Approved Budget

WWW.NRHA.US

FY 2020 APPROVED BUDGET

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MESSAGE FROM THE

EXECUTIVE DIRECTOR

am pleased to present the approved capital and operating spending plan of $111 million for fiscal year 2019-20 (F Y2020), reflecting a $6 million or 5.51 percent decrease from fiscal year 2018-19 (FY2019). While the approved budget provides for the continued pursuit of critical housing assistance and neighborhood revitalization services in Norfolk, the new spending plan reflects the short-term service and labor demands resulting from the planned transformation of rental assistance programs from a predominance of Low Income Public Housing (LIPH) apartments to Housing Choice and Project-Based (Section 8) Vouchers. NRHA remains largely dependent on federal funding and local support, but these traditional sources are no longer sufficient to meet community demands and expectations. To continue the level of services needed in our communities, as it has in recent years, the approved budget relies on revenue and reserves from NRHA’s own incomeproducing assets.

The next year will be full of signif icant initiatives that involve both physical activities and transformative human services. On May 13, 2019, the U.S. Department of Housing and Urban Development (HUD) announced the award of a $30 million Choice Neighborhoods Initiative (CNI) implementation grant for the redevelopment of Norfolk’s Tidewater Gardens community. During the next five years, the 65-year old

community will be replaced by a new mixed-use development that will provide quality housing choices, employment opportunities, commercial attractions and public amenities that will serve a diverse Norfolk population. The CNI grant that moves the redevelopment of Tidewater Gardens forward is the first phase of long-term comprehensive efforts to transform the 200-acre St. Paul’s area, which includes Young Terrace (746 units) and Calvert Square (310 units) as well as Tidewater Gardens (618 units). While directly affecting the 1,700 households, 2,200 children and 4,200 individuals who live in these communities, the project will also have impacts throughout the City and Hampton Roads. NRHA will collaborate with the City of Norfolk in playing a key leadership role in the St. Paul’s effort. Still, an initiative of this scope and significance will require the contribution of skills and expertise from varied local, state and national partners from the public and private sectors, including for-profit, non-profit and governmental organizations. The St. Paul’s area initiative, as well as general trends in federal, state and local funding, is anticipated to create additional challenges in sustaining a balance between recurring revenue and expenditures. Throughout the next several years, many budget decisions will be affected by the need to leverage other public and private dollars to continue NRHA’s mission.

While the transformation of the St. Paul’s area is anticipated to provide greater housing opportunities to all area residents, there is legitimate concern and outright fear that some disadvantaged families and individuals may be harmed or left without suitable housing. We continue to receive input from neighborhoods throughout Norfolk who want to ensure that the effort to deconcentrate poverty in one area of the City will not result in new concentrated poverty elsewhere. NRHA’s Board of Commissioners remains committed to a transformation plan that meets the following guiding principles:

•

New for-sale home development throughout Norfolk and in redevelopment and conservation areas including the Homes at Bay Oaks Park in East Ocean View and the former Moton Circle site in Broad Creek;

•

Development of Housing Choice Voucher (HCV) program innovations to attract greater landlord participation and provide education and outreach support to HCV participants; and

•

Expansion of economic opportunities for Norfolk residents and businesses to complement the City’s inclusionary economic development goals.

•

Community redevelopment decisions shall be family-focused and family priorities will be paramount in service delivery and relocation decisions;

•

Honoring the housing choices of families affected by the redevelopment of their communities shall be the highest priority;

•

Collaborative partnerships shall be pursued to implement a human development plan that will include high quality supportive services in the areas of employment, education, public safety, housing services and health;

•

Economic development benefits can mitigate costs but not outweigh family-focused decision making;

•

Revitalization strategies shall strive to have positive impacts on surrounding neighborhoods; and

•

Decision making will reflect continuous input, transparency and feedback from residents and all other stakeholders.

The long-term effort to improve housing choices for disadvantaged families in Norfolk will result in a housing assistance system that will take on a very different form and force changes in NRHA’s organizational structure. NRHA will need “all hands on deck” to face the service demands in the coming year and I am pleased to present a budget that provides for performance-based wage increases for the fifth consecutive year. Still, the continued reliance on NRHA reserves to balance our budget has resulted in a need to identify personnel cost savings throughout the next year in order to arrive at a sustainable budget plan for fiscal year 2021 (July 1, 2020, through June 30, 2021). As a result, all levels of the organization are being invited to think of ways to defer or eliminate the filling of positions as they become vacant. As the need to fill vacant positions is reviewed, consideration will be given to share the savings achieved with staff who take on additional work as positions are eliminated or restructured. It is emphasized that efforts to reduce personnel costs will focus on vacant positions. No elimination of filled regular full-time positions is being contemplated.

The effort to transform the St. Paul’s area as well as achieve systematic improvement in housing choices throughout Norfolk call for the use of all of NRHA’s tools for neighborhood revitalization. The additional key projects that will be pursued during the coming year include: •

The phased renovation of the Diggs Town community;

•

Completion of 70 new apartments in the Grandy Village community;

•

“Families First” initiatives for community engagement programming in public housing communities that deliver documented outcomes in crime reduction and other quality of life indicators;

With support from the Board of Commissioners and approval of this F Y2020 budget plan, we look forward to working with our valued public and private partners to serve the City of Norfolk and its citizens.

Sincerely,

John Kownack Executive Director

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AUTHORITY GOALS Quality Housing Opportunities for All

NRHA is committed to providing a continuum of housing options for households of all incomes seeking housing.

Sustainable Mixed-Income Communities

There is a need for a new housing model to create a healthy physical and social environment that would appeal to a wider range of incomes.

Strategic Business Approach

To meet changing requirements and to make the best use of our resources, we are developing a new approach for the delivery of products and services.

Community Support

Recognizing the interrelated nature of our mission, NRHA resolves to work to become a trusted partner that works collaboratively with key stakeholders and partners.

AUTHORITY VALUES â&#x20AC;&#x153;A C E I T â&#x20AC;?

CUSTOMER SERVICE

ACCOUNTABILITY

INNOVATION

NRHA FY2019 Approved Budget

EXCELLENCE

TEAMWORK

June 2019

BOARD OF COMMISSIONERS

Don Musacchio

Alphonso Albert

Chairman

Rose Arrington

Vice Chairman

Joe Dillard, Jr.

Richard Gresham

Ken Benassi

Suzanne Puryear

NRHA is headed by a board of seven commissioners, appointed by Norfolk City Council, who are responsible for determining policy and direction. NRHA Commissioners are residents of Norfolk and serve staggered four-year terms. The board elects a Chairman and Vice Chairman, as well as selects an Executive Director who is responsible for NRHAâ&#x20AC;&#x2122;s activities and operations. To contact a Commissioner, call 757.314.1679

EXECUTIVE DIRECTOR

John Kownack

Executive Director

NRHA FY2019 Approved Budget

June 2019

EXECUTIVE LEADERSHIP TEAM

Richard Archer

Human Resources Director

Pamela Jones-Watford Housing Choice Voucher Director

Stephen Blair

Neighborhoods Program Director

Virginia Mack

Interim Chief Financial Officer & Budget and Compliance Director

Rick O'Neal

Facilities Management Director

Michael Clark

Donna Mills

Chief Housing Officer & Acting Property Management Director

Scott Pontz

Finance Director

NRHA FY2019 Approved Budget

Mike Diaz

Development Operations Director

Structured Finance Director

Jennifer Moore

Steve Morales

Communications and Government Relations Director

Lysandra Shaw

Neighborhood Projects Director

III

Terri Giuliana

Information Technology Director

Neighborhood Projects Director

Yilla Smith

Client Services Director

David Heim

Design & Construction Management Director

Kathy Mosley

Administrative Services Director

Kim Thomas

Housing Programs Director

June 2019

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NRHA FY2019 Approved Budget

June 2019

ORGANIZATIONAL CHART Board of Commissioners

Executive Office

Administrative Operations

Development Operations

Housing Operations

Administrative Services

Design & Construction Management

Client Services

Communications & Government Relations

Budget & Compliance

Real Estate Services

Compliance Services

Human Resources

Finance

Facilities Management

Information Technology

Structured Finance

Housing Choice Voucher Program

Neighborhood Programs*

Housing Programs

Neighborhood Projects*

Property Management

Security Programs *Funded by Development Operations NRHA FY2019 Approved Budget

June 2019

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NRHA FY2019 Approved Budget

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FY2020 APPROVED BUDGET TABLE OF CONTENTS

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FY2020 APPROVED BUDGET TABLE OF CONTENTS Message from the Executive Director Authority Goals……………………………………………………………………. Board of Commissioners and Executive Director………………………………. Executive Leadership Team………………………………………………………. Organizational Chart……………………………………………………………… Table of Contents…………………………………………………………………...

I II III V VII-X

READER’S GUIDE & OVERVIEW Reader’s Guide……………………………………………………………………... 002 Operating Budget Program and Fund Summaries............................................... 003 Approved Budget Overview……………………………………………………... 004 Resource Trends and Percentages………………………………………………... 004-005 Expenditure Trends and Percentages..................................................................... 006 BUDGET SUMMARY Budget Summary by Resources and Expenditures…………………………...... Expenditures……………………………………………………………………….. Resources…………………………………………………………………………… Revenue Comparison……………………………………………………………… Utilization of Reserves and Earnings…………………………………………...... Employee Benefit and Salary History……………………………………………. Staffing Dashboard…………………………………………………………………

009 010 011 012 014 015 016

HOUSING PROGRAMS Housing Overview Summary…………………………………………………...... Housing Revenue and Expenditures…………………………………………...... Broad Creek Renaissance………………………………………………………..... Federally Aided Housing…………………………………………………………. Federally Aided Safe Harbor Fees……………………………………………….. RAD/Project Based Voucher (PBV) Communities……………………………… RAD/PBV Safe Harbor Fees………………………………………………………. Cottage Bridge……………………………………………………………………… Diggs Town Phase I………………………………………………………………... Franklin Arms……………………………………………………………………… Grandy Village Revitalization…………………………………………………..... Grandy Village V…………………………………………………………………...

020-022 023 024-026 028-031 033 034-035 036 038-039 040-041 042-043 044-045 046-047

NRHA FY2019 Approved Budget

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Grandy Village VI………………………………………………………………...... North Wellington…………………………………………………………………... Housing Choice Voucher (HCV)…………………………………………………. Housing Choice Voucher (HCV) – Single Room Occupancy (SRO)………….. Housing Choice Voucher (HCV) Safe Harbor Fees…………………………...... State Rental Assistance Program (SRAP)………………………………………... Resident Services………………………………………………………………....... Job Plus Pilot Program…………………………………………………….............. Section 5310 Grant (formerly New Freedom)…………………………………… Out of School Youth Program.................................................................................. ROSS Family Self-Sufficiency Grant……………………………………………... ROSS Service Coordinator Grant………………………………………………… Residential Options, Inc. Summary…....………………………………………… Residential Options, Inc. (Guy Avenue) ………………………………………... Residential Options, Inc. (Hugo Street) …………………………………………. Residential Options, Inc. (Fenner Street) ………………………………………... St. Paul’s Area Relocation Efforts………………………………………………… DEVELOPMENT PROGRAMS Development Overview Summary………………………………………………. Development Revenue and Expenditures………………………………………. Capital Fund Program…………………………………………………………...... Capital Improvement Program…………………………………………………... Community Development Block Grant (CDBG)……………………………...... Development Administration…………………………………………………….. East Beach………………………………………………………………………....... 5th to 7th Bay Development………………………………………………………… General Fund……………………………………………………………………….. Grandy Village VI………………………………………………………………….. Home Investment Partnership Program (HOME)…………………………........ HomeNet Homeownership Center………………………………………………. Privately Managed Properties: Merrimack Landing Operations……………………………………….................. Oakmont North Operations……………………………………………………… Park Terrace Operations……………………………………………………......... Privately Managed Properties Safe Harbor Fees……………………………...... Rehabilitation Reserve Account (RERA)………………………………………… Available Revenue………………………………………………………………….

NRHA FY2019 Approved Budget

048-049 050-051 052-053 054-055 057 058-059 060-061 062-063 064-065 066-067 068-069 070-071 072-073 074 075 076 078-079 082-083 085 086-089 090-091 092-093 094-095 096-097 098-099 100-101 102-103 104-105 106-107 108-109 110-111 112-113 115 116-117 119

June 2019

OTHER PROGRAMS Other Programs Overview Summary…………………………………………..... NRHA Rent Project ……………………………………………………………….. 555 E. Main Street Operations…………………………………………………...... Broad Creek Village Center……………………………………………………...... Central Office Cost Center (COCC) Administration…………………………… Central Office Cost Center (COCC) Specialized Maintenance………………... Communications and Government Relations…………………………………... Core Business Service……………………………………………………………… Disposition Support……………………………………………………………….. Executive Director Contingency Fund…………………………………………... Hampton Roads Ventures (HRV)………………………………………………... Project Development Financing………………………………………………….. CENTRAL OFFICE Central Office Cost Center (COCC) Overview………………………………..... COCC Challenges, Accomplishments and Goals: Administrative Services………………………………………………………...... Budget and Compliance………………………………………………………….. Communications and Government Relations……………………………............. Finance…………………………………………………………………………… Human Resources………………………………………………………............... Information Technology…………………………………………………….......... COCC Revenue and Expenditures……………………………………………..... COCC Summary by Functional Group………………………………………...... COCC Detail………………………………………………………………………... Detail of COCC Specialized Maintenance……..………………………………...

122-123 124-125 126-127 128-129 130-131 132-133 134-135 136-137 138-139 140-141 142-143 144-145 148-154 155-157 158 159-160 161-162 163-164 165-166 167 168-169 170-173 174

COMPONENT UNITS Component Unit Overview……………………………………………………… Hampton Road Ventures, LLC..………………………………………………… Mission College Apartments, LP…..…………………………………………… Monroe Building Governor’s School For the Arts..…………………………… Norfolk Community College Campus Corporations…………………………

178-179 180-181 182-183 184-185 186-187

ACRONYMS AND GLOSSARY Glossary ……………………………………………...…………………………… Acronyms……………………………………………..……………………...……

190-207 208-210

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NRHA FY2019 Approved Budget

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FY2020 READER’S GUIDE Each year Norfolk Redevelopment and Housing Authority (NRHA) must submit a proposed budget to its Board of Commissioners (BOC). The budget represents the annual spending plan for all of the programs administered by NRHA. The approved annual budget is published once the proposed budget is approved by the BOC. The Reader’s Guide is a tool to help the reader navigate the annual budget book. This year’s budget includes:

• Financial summary tables and narrative overviews related to operations; • Programs, financial policies and procedures; and • Staff and non-staff expenditure detail.

A WELL PLANNED OPERATING AND CAPITAL BUDGET REAFFIRMS NRHA’S: • Fiscal responsibility with limited resources while providing quality housing services; and • Commitment to ensuring affordable housing and the promotion of housing.

NRHA FY2019 Approved Budget

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June 2019

FY2020 OPERATING BUDGET PROGRAM & FUND SUMMARIES For each program and fund, summary information is provided on revenues and expenditures using the sample format below:

FY18 Actual Budget

Program or Fund

FY19 Approved Budget

FY19 Projected Actual

FY20 Approved Budget

Revenue: xxxx yyyy Total Revenue:

Expenditures: xxxx yyyy Total Expenditures:

READER’S GUIDE & OVERVIEW

OTHER PROGRAMS

The Reader’s Guide & Overview section provides a guide to navigating the budget book and a summary of revenue and expenditures for the total NRHA budget while also indicating the percentage change from the prior year.

The Other Programs section provides information about the Authority’s unique programs that do not fall under the Housing and Development divisions.

CENTRAL OFFICE

BUDGET SUMMARY

The Central Office Cost Center (COCC) section provides insight on the Authority's central support service expenditures which benefit all or multiple programs and functions. The COCC includes the central support staff such as Executive and Administrative Offices, Specialized Maintenance and so on.

The Budget Summary section provides authoritywide graphical and numerical breakdowns of revenue and expenditure summaries, sources and comparisons. It also includes NRHA’s employee benefit and salary history as well as workforce demographics.

HOUSING PROGRAMS

COMPONENT UNITS

The Housing Program section delivers detailed budget information for programs that provide assisted and/or affordable rental opportunities to the citizens of Norfolk. NRHA encourages citizens to become economically self-sufficient by linking them to social service programs and ensuring that they gain the necessary skills and resources for long-term success.

Component Units are entities that are legally separate from NRHA, but for which the Authority is financially accountable. Exclusion would cause NRHA’s financial statements to be misleading or incomplete. This section details all of the Authority’s component units.

GLOSSARY AND ACRONYMS

DEVELOPMENT PROGRAMS

The Glossary provides definitions of programs and budget-related terms used as well as the meaning of many acronyms used throughout this document.

The Development Operations Program provides detailed budget information including funding for program administration in redevelopment, rehabilitation, operation, relocation and homeownership opportunities for Norfolk citizens. NRHA FY2019 Approved Budget

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June 2019

FY2020 APPROVED BUDGET OVERVIEW TOTAL FY2020 APPROVED BUDGET - $111,743,182 Other Programs $6,447,284 | 6%

Housing $69,253,738 | 62%

THE DEVELOPMENT of the FY2020 Budget was an agency-wide effort and included input from the executive team, directors, managers and program staff. During the process, historical funding and expenditure patterns were analyzed along with seasonality and grant awards. The FY2020 Budget includes FY2018 actuals, as displayed on audited Financial Statements ending June 30, 2018, FY2019 Projected Actuals based on February Financial Statements and input from program staff.

Development $36,042,160 | 32%

FY2020 RESOURCE TRENDS & PERCENTAGES FY2020 APPROVED BUDGET City Grants $15,312,863 | 14%

Tenant Revenues $27,003,398 24%

Other Income $4,364,412 | 4%

HUD Grants 59,781,682 | 53%

Program Reserves $5,280,827 | 5%

NRHAâ&#x20AC;&#x2122;S REVENUE STREAMS are supported largely by the U.S. Department of Housing and Urban Development (HUD) (53%) and Tenant Rent Payments (24%). Additional sources include City of Norfolk Grants (14%), Other Income (4%) and Program Reserves (5%). Revenue projections in the aggregate show a decrease from FY2019 to FY2020. The table on the following page depicts the decrease. NRHA FY2019 Approved Budget

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June 2019

Projected Revenue

FY2019 Approved Budget

FY2020 Approved Budget

Variance FY2019 vs. FY2020

% of FY2020 Approved Budget

HUD GRANT

$59,710,535

$59,781,682

$71,147

53%

CITY GRANTS

$11,193,661

$15,312,863

$4,119,202

14%

TENANT REVENUES

$23,410,935

$27,003,398

$3,592,463

24%

OTHER INCOME

$13,445,562

$4,364,412

$(9,081,150)

PROGRAM RESERVES

$10,315,114

$5,280,827

$(5,034,287)

Grand Total

118,075,807

111,743,182

(6,332,625)

100%

HUD GRANT - HUD funding remains relatively stable. CITY GRANTS - The City of Norfolk’s FY2020 Approved Budget increased funding for neighborhood revitalization efforts. TENANT REVENUE - The net increase is due to completion of the renovations at Merrimack Landing apartments along with the transition of additional communities to RAD. OTHER INCOME - This income is derived from bond fees, developer fees, proceeds from land sales, non-rental income and loans. The net decrease is the result of the completion of several large development projects during F Y2020, such as Grandy VI, that were utilizing bank proceeds. PROGRAM RESERVES - This funding source includes authorizations of resources accumulated during a prior fiscal period to be utilized for its own fund or another program’s funding gap. The net decrease is attributed to at-risk construction in Grandy VI during FY2019. THE CHART BELOW SHOWS A BUDGET COMPARISON OF FY2019 VS. FY2020 RESOURCES BY DIVISION.

Projected Revenue

Total

Housing

Development

Other

FY2020

$111,743,182

$69,253,738

$36,042,160

$6,447,284

FY2019

$118,075,807

$64,037,134

$44,848,448

$9,190,225

$ CHANGE

$(6,332,625)

$5,216,604

$(8,806,288)

$(2,742,941)

% CHANGE

-5.36%

8.15%

-19.64%

-29.85%

LISTED BELOW ARE OTHER REVENUE HIGHLIGHTS WITHIN THE BUDGET PROCESS FOR FY2020. •

•

Utilization of $1.3 million from the City of Norfolk General Fund appropriation for NRHA program delivery and administration Use of $1,735,880 from Federally Aided, TCB and Third Party Management Fee Reserves in support of low income public housing

•

Use of $714,744 of Land Sales Proceeds for Development Administration

•

Use of $100,000 waterfall distribution from Mission College Apartments

•

Use of $5.3 million from NRHA discretionary and project reserve balances to fund Other Programs

•

Phasedown of Jobs Plus and New Freedom DRPT grants

Use of $378,415 of NRHA’s earnings from Privately

Managed Properties for the administration of the Housing Choice Voucher Programs NRHA FY2019 Approved Budget

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June 2019

FY2020 EXPENDITURE TRENDS & PERCENTAGES Capital $1,469,380 | 1.31%

Distribution of Admin Costs $5,085,012 | 4.55%

Capital and Multi Year 25,052,634 22.42%

Program Costs 32,707,167 | 29.27%

Other Admin $5,533,414 | 4.95%

Employee Benefits $3,580,526 | 3.2%

Operation Cost $26,681,343 23.88%

General Expense $1,977,640 | 1.77% Labor (Authority Direct) 9,656,066 | 8.64%

NRHA continues the practice of conservative and prudent fiscal planning in the face of a challenging economic climate. Expenditures include labor, employee benefits, operational costs, program costs, capital and direct costs, other administrative costs and general operating expenditures.

THE CHART BELOW REPRESENTS AN EXPENDITURE COMPARISON FROM FY2019 TO FY2020 BY DIVISION.

Projected Expenditure

Total

Housing

Development

Other

FY2020

$111,743,182

$69,253,738

$36,042,160

$6,447,284

FY2019

$118,075,807

$64,037,134

$44,848,448

$9,190,225

$ CHANGE

$(6,332,625)

$5,216,604

$(8,806,288)

$(2,742,941)

% CHANGE

-5.36%

8.15%

-19.64%

-29.85%

The FY2020 Budget provides continued funding of all services. The following are a few highlights within the budget for FY2020: • • • • •

Incorporation of merit increases; Vacant positions remain funded; No reductions to service delivery; No adjustments for RAD conversions; and No budget considerations for HUD Choice Neighborhoods Initiative grant.

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NRHA APPROVED BUDGET FISCAL YEAR 2020 SUMMARY BY RESOURCES AND EXPENDITURES Authority Wide

Description

Percentage of Authority Total

Resources HUD Grants City Grants Tenant Income Other Income Working Fund/Project Advances Appropriations of Program Reserves

Resources Total

59,781,682 15,312,863 27,003,398 4,364,412 800,000 4,480,827 111,743,182

53.5% 13.7% 24.2% 3.9% 0.7% 4.0% 100.0%

9,656,066 3,580,526 5,533,414 32,707,167 1,977,640 1,469,380 26,681,343 25,052,634 5,085,012 111,743,182

8.6% 3.2% 5.0% 29.3% 1.8% 1.3% 23.9% 22.4% 4.6% 100.0%

Expenditures Labor* Employee Benefits* Other Administration Program Costs General Expense Capital Operation Cost Capital & Multiyear Programs Distribution of Administrative Costs*

Expenditures Total

*Distribution of Administrative Costs- Departmental share of agencywide costs that are allocated to the programs and projects which benefit from the services. Approximately 82% of Distributed Administrative Costs are Labor and Fringe Benefits. Refer to "Employee Benefit and Salary History" schedule located in this Budget Summary section for total labor and employee benefit costs.

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June 2019

FY2020 APPROVED EXPENDITURES $111,743,182 Description

Total

Labor (Direct)* Employee Benefits* Other Administration Program Costs Operation Costs General Expenses Capital Capital & Multiyear Programs Distribution of Administrative Costs* Total

Capital $1,469,380 1.38%

$ 9,656,066 $ 3,580,526 $ 5,533,414 $ 32,707,167 $ 26,681,343 $ 1,977,640 $ 1,469,380 $ 25,052,634 $ 5,085,012 $ 111,743,182

Capital & Multiyear Programs $25,052,634 23.49%

Housing

6,694,355 2,508,813 2,487,930 32,345,471 17,861,582 1,977,640 1,469,380 3,908,567 $ 69,253,738

Labor (Direct)* $9,656,066 9.05%

General Expenses $1,977,640 1.85%

Development

2,190,956 769,207 241,100 361,696 7,352,330 24,252,634 874,237 36,042,160

Other

770,755 302,506 2,804,384 1,467,431 800,000 302,208 $ 6,447,284

Employee Benefits* $3,580,526 3.36% Other Administration $5,533,414 5.19%

Program Costs $32,707,167 30.67%

Operation Costs $26,681,343 25.02%

010

June 2019

FY2020 APPROVED RESOURCES $111,743,182 Total

Development

Housing

Other

HUD Grants Housing Choice Voucher & SRO Federally Aided Housing Broad Creek Renaissance (TCB) Project Based Voucher (PBV) -RAD Capital Fund Jobs Plus Section 5310 Grant-DPRT (formerly New Freedom) Public Housing and HCV FSS Ross Grant ROSS Service Coordinator Grant CDBG Rehabilitation Program HomeNet HOME

Total

33,532,365 12,472,767 761,645 616,352 8,252,814 575,000 418,179 332,115 120,741 1,100,000 146,663 1,453,041

8,252,814 1,100,000 146,663 1,453,041

33,532,365 12,472,767 761,645 616,352 575,000 418,179 332,115 120,741 -

59,781,682

10,952,518

48,829,164

2,861,438 10,424,600 2,026,825

2,861,438 10,424,600 1,734,745

292,080

15,312,863

15,020,783

292,080

7,919,800 6,605,793 594,961 4,326,081 540,062 5,239,976 92,753 1,683,972 -

3,640,854 540,062 3,163,672 -

7,919,800 6,605,793 594,961 39,784 92,753 -

685,227 2,036,520 1,683,972 -

27,003,398

7,344,588

15,253,091

4,405,719

15,186 885,378 651,655 870,447 653,118 1,288,628

885,378 653,118 299,520

15,186 870,447 871,152

651,655 117,956

4,364,412

1,838,016

1,756,785

769,611

343,545 1,000,000 109,031 304,307 324,049 7,000 800,000 2,392,895

43,545 7,000 895,710

300,000 1,000,000 109,031 324,049 1,389,538

304,307 800,000 107,647

Broad Creek Renaissance (TCB) 761,645 2%

Federally Aided Housing 12,472,767 26%

Project Based Voucher (PBV) RAD 616,352 1%

Housing Choice Voucher & SRO 33,532,365 71%

City Grants General Fund Capital Improvement Program Other City Grants

Total

Approved Resources FY2020

Tenant Income Federally Aided Housing Project Based Voucher (PBV) -RAD PBV - Cottage Bridge Oakmont North Park Terrace Merrimack Landing Residential Options Inc. (ROI) 555 East Main Street Other

Total Other Income Interest Proceeds from Property Sales and Notes Project Delivery Fees State Funds Bank Loan Other

Total Appropriations from Program Reserves Housing Opportunity Reserves 3rd Party Management Fee Replacement Reserves Federally Aided Reserves COCC Administration TCB Properties Reserve RERA Working Fund - Project Development Financing Privately Managed Reserves

Total Use of All Reserves NRHA Total Resources

NRHA FY2019 Approved Budget

5,280,827

946,255

3,122,618

1,211,954

111,743,182

36,102,160

69,253,738

6,387,283

011

Budget Comparison - FY2019 vs. FY2020 70,000,000 60,000,000 50,000,000 40,000,000 30,000,000 20,000,000

10,000,000 -

FY 20 Budget

FY 19 Budget

111,804,022

60,840

June 2019

FY2020 APPROVED REVENUE COMPARISON

HUD Grants Housing Choice Voucher $ Housing Choice Voucher SRO Federally Aided Housing Grandy Revitalization Franklin Arms PBV - RAD Broad Creek Renaissance (TCB) Park Terrace Capital Grants Capital Fund Grant for Operations ROSS Service Coordinator Grant Job Access Freedom Grant Job Access HCV Section 5310 Grant-DPRT (formerly New Freedom) Jobs Plus Community Development Block Grant Public Housing & HCV FSS ROSS HomeNet Home Total $ City Grants General Fund $ Capital Improvement Program Other City Grants Total $ Tenant Income Federally Aided Housing $ Grandy Revitalization Franklin Arms PBV - RAD Cottage Bridge Oakmont North Park Terrace Marriott Rent Merrimack Landing Residential Options Inc. (ROI) 555 East Main Street Other Total $ Other Income Interest $ Proceeds from Property Sales and Notes Private Bank Funds State Rental Assistance Program (SRAP) Out of School Grant HomeNet Project Delivery Fees Other Total $

A Approved p FY 2016 p

Approved FY 2019

Approved FY2020

26,933,271 350,569 12,637,723 1,074,606 356,779 740,829 316,965 10,302,912 642,563 294,463 800,000 1,681,293 328,757 134,427 632,179 57,227,336

27,573,618 356,450 12,882,183 1,094,052 368,976 752,760 316,357 9,218,638 550,000 250,636 55,073 54,250 334,254 691,300 345,450 90,882 1,061,056 55,995,935

28,728,488 356,931 12,733,550 889,777 325,848 12,388,244 600,000 298,843 369,873 732,721 336,964 149,857 921,022 58,832,118

29,775,986 360,882 12,927,692 839,844 325,848 11,156,955 153,486 400,154 609,058 600,000 303,550 140,153 997,293 58,590,901

33,182,392 349,973 12,472,767 616,352 761,645 8,252,814 120,741 418,179 575,000 1,100,000 332,115 146,663 1,453,041 59,781,682

3,406,406 (10,909) (454,925) 616,352 (78,199) (325,848) (2,904,141) (32,745) 18,025 (34,058) 500,000 28,565 6,510 455,748 1,190,781

11% -3% -4% N/A N/A N/A -9% -100% -26% N/A -21% N/A N/A 5% -6% 83% 9% 5% 46% 2%

2,707,626 2,500,000 5,207,626

3,122,751 5,750,000 8,872,751

5,125,601 6,665,019 15,588 11,806,208

4,393,548 6,523,723 36,390 10,953,661

2,861,438 10,424,600 2,026,825 15,312,863

(1,532,110) 3,900,877 1,990,435 4,359,202

-35% 60% 5470% 40%

8,583,997 1,024,829 142,625 285,007 3,871,620 220,263 114,500 3,581,566 17,824,407

8,367,577 1,066,728 226,953 345,009 3,879,353 238,656 114,500 3,614,796 17,853,572

8,103,314 3,353,194 589,272 4,072,569 190,757 114,500 3,827,509 85,625 20,336,740

8,655,072 3,386,316 411,023 4,264,385 190,757 4,448,263 144,497 1,664,376 114,500 23,279,189

7,919,800 6,605,794 594,961 4,326,081 540,062 5,239,976 92,752 1,683,972 27,003,398

(735,272) 3,219,478 183,938 61,696 349,305 791,713 (51,745) 19,596 (114,500) 3,724,209

-8% N/A N/A 95% 45% 1% 183% N/A 18% -36% 1% -100% 16%

7,000 188,000 23,320 502,352 318,507 1,039,179

2,996 272,500 16,900,000 400,000 140,000 25,000 1,007,299 823,621 19,571,416

6,246 754,400 27,412,015 651,367 193,343 1,086,456 898,309 31,002,136

11,525 664,163 9,627,839 654,158 125,956 1,223,407 1,099,514 13,406,562

15,186 885,378 653,118 675,447 195,000 651,655 1,288,628 4,364,412

32% 33% -93% 3% 55% N/A -47% 17% -67%

53,154 13,906 43,545 54,567 10,529 461,249 7,000 51,839 302,217 519,333 671,228 1,039,316 2,500,000 75,000 940,000 6,742,883

473,000 50,000 119,023 43,545 600,000 7,000 600,000 57,563 673,321 869,643 4,002,987 1,952,688 1,036,000 10,484,770

323,087 53,470 43,545 968,071 200,318 7,000 713,089 555,908 1,787,176 1,180,663 5,832,327

343,545 1,000,000 109,031 7,000 324,049 304,307 2,392,895 800,000 5,280,827

3,661 221,215 (8,974,721) 21,289 69,044 (571,752) 189,114 (9,042,150) (323,087) (53,470) 300,000 31,929 (91,287) (389,040) (251,601) 605,719 (380,663) (551,500)

-100% N/A -100% N/A 689% N/A 3% -46% 0% -55% N/A N/A -45% N/A N/A 34% N/A N/A -32% -9%

109,036,557

132,461,972

112,062,640

111,743,182

(319,458)

-0.29%

Total

182,833 50,040 5,447 27,500 133,177 1,234,903 134,460 569,261 318,637 3,382,732 75,000 370,000 6,483,990

NRHA Total Resources

87,782,538

NRHA FY2019 Approved Budget

Annual % Change

Approved FY 2018

Appropriations from Program Reserves

Housing Choice Voucher Resident Service Activities Capital Fund Administration Franklin Arms Housing Opportunities Park Terrace 3rd Party Management Fee Federally Aided Housing Reserves RERA Broad Creek Reserves TCB EZ 2010 Proceeds from Land Sales 201 Granby Building COCC Administration COCC Specialized Maintenance Other Discretionary or Development Reserves Privately Managed Reserves Merrimack Landing Replacement Broad Creek/HOPE VI Reserves Working Fund

Annual $ Change

Approved FY 2017

012

June 2019

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NRHA FY2019 Approved Budget

013

June 2019

FY2020 SUMMARY OF UTILIZATION OF RESERVES AND EARNINGS Description

Privately Managed Earnings

Available to Distribute @ 6/30/19*

2,861,531

Privately Managed Properties

Federally Aided Reserves

7,540,286

Rehab Financing

TCB

109,805

324,049

3rd Party COCC Admin Management Reserves Fee

Housing Opportunity

14,035

860,336

1,150,816

717,617

Working Fund

Total

1,022,695

14,601,170

Federally Aided

302,800

109,031

324,049

1,000,000

1,735,880

HCV Administration

378,415

39,784

Grandy Village Revitalization

120,470

Jobs Plus

377,965

Residential Options Inc. (ROI)

209,888

St. Paul's Area Relocation Loan

300,000

Grandy VI Development

226,047

Diggs Construction Services

446,013

17,795

RERA

7,000

Housing Opportunity (HomeNet)

43,545

Broad Creek Village Center

60,000

985,105

304,307

NRHA Rent Project

53,833

Structured Finance

202,655

Project Development Financing

800,000

East Ocean View Property Purchase

163,650

Core Business Services

712,743

107,647

820,390

Government Relations

439,366

ED Contingency Fund

410,250

HCV SRO

Disposition Support

COCC Specialized Maintenance COCC Admin

Total Utilization Balance Remaining

2,861,531 -

2,392,895

109,031

5,147,391

774

324,049 -

410,250

7,000

343,545

1,000,000

304,307

800,000

8,142,358

7,035

516,791

150,816

413,310

222,695

6,458,812

*Funds available to distribute at 6/30/19. These figures are net of target reserve funds and FY2019 obligations and commitments. Note: The above table displays only earnings and reserves appropriated in the FY2020 Budget. It does not include reserves for which there is no proposed activity.

NRHA FY2019 Approved Budget

014

June 2019

FY2020 EMPLOYEE BENEFIT AND SALARY HISTORY Description

FY2015 Approved Budget

FY2016 Approved Budget

FY2017 Approved Budget

FY2018 Approved Budget

FY2019 Approved Budget**

FY2020 Approved Budget

Change

Benefits Health Insurance FICA Taxes & Unemployment VRS (Life) VRS (Retirement) Terminal Leave Worker's Compensation Uniforms* Total Employee Benefits

1,928,990 1,140,915 176,563 1,960,171 182,435 173,693 5,065

1,957,404 1,123,887 161,953 1,996,683 184,466 171,101 4,338

2,062,450 1,215,308 192,690 1,794,444 195,463 185,019 3,450

2,128,609 1,288,381 201,622 1,878,693 204,524 196,144 3,500

2,179,119 1,288,023 206,081 1,909,366 209,047 137,928 24,086

2,316,736 1,313,317 203,641 1,914,848 206,572 140,637 -

137,617 25,294 (2,440) 5,482 (2,475) 2,709 (24,086)

5,567,832

5,599,832

5,648,824

5,901,473

5,953,650

6,095,751

52,177

1,353,861 212,000 100,110 9,277,837 2,659,562 215,045 15,822 182,811 76,844 14,093,892

1,239,521 191,338 91,020 9,148,020 2,968,715 223,604 12,000 190,124 231,126 14,295,468

2,095,913 200,618 104,600 8,882,599 3,028,356 245,588 11,392 304,627 139,189 15,012,882

2,008,928 209,448 110,777 8,716,634 3,893,603 156,952 245,761 11,847 416,573 145,117 15,915,640

2,005,137 214,645 46,016 9,706,822 3,016,469 72,685 258,329 12,481 451,972 126,746 15,911,302

2,033,880 223,895 47,749 9,850,231 3,055,317 213,832 214,624 450,040 134,231 16,223,799

28,743 9,250 1,733 143,409 38,848 (72,685) (44,497) 202,143 (1,932) 7,485 312,497

Labor Development Admin Community Development Maintenance Development (HOMENET) Housing COCC Executive and Admin Executive Transformation Government Relations Hampton Roads Ventures Structured Finance Management Fee Project Total Labor

Full Time Staffing Counts Development Housing Administration Total Full Time Labor

FY2015

30 210 45 285

FY2016

FY2017

37 204 54 295

37 206 54 297

FY2018

37 212 55 304

FY2019

36 212 54 302

FY2020

35 216 54 305

Change (1) 4 -

*Beginning in FY20, uniforms are no longer budgeted as a fringe benefit. **FY19 Labor figures have been restated.

NRHA FY2019 Approved Budget

015

June 2019

NRHA Staffing Dashboard As of May 10, 2019

302

Total Employees

Workforce Distributions By Race and Gender

By Employee Status

By Division Housing Operations

69.5%

Administative Operations

12.6%

Development Operations

11.6%

Executive Office

Regular Full Time

210

91.4%

Regular Part Time

8.3%

Seasonal

0.3%

276 25 1

6.3%

By Age

By Length of Service (LOS) in Years 107

45 37

29.5%

White Males

14.9%

White Females

9.9%

Other Males

2.3%

Other Females

1.7%

126 89 45

30 7 5

New Hires FYTD

41.7%

Black Males

Key Workforce Statistics, Fiscal Year to Date

120

Black Females

Total Regular Part Time

Total Temporary

Separations FYTD 20

25 - 29

>=30

Total Regular Full Time

1 40

0 <=19

20 - 29

30 - 39

40 - 49

50 - 59

60 - 64

Average Employee Age: 49.24

NRHA FY2019 Approved Budget

>=65

<=4

5-9

10 - 14

15 - 19

20 - 24

Average Employee LOS in Years: 11.44

016

June 2019

PAGE INTENTIONALLY LEFT BLANK

NRHA FY2019 Approved Budget

017

June 2019

PAGE INTENTIONALLY LEFT BLANK

NRHA FY2019 Approved Budget

018

June 2019

PAGE INTENTIONALLY LEFT BLANK

NRHA FY2019 Approved Budget

019

June 2019

SUMMARY

FY2020 HOUSING OVERVIEW

FY2020 HOUSING DIVISION Housing Division revenue and expenditures total $69,253,738 and are derived from HUD operating subsidies, grants, tenant income and other income. The operational shortfall of $1.74 million projected in FY2020 for the Federally Aided Program is recommended to be funded from Federally Aided program reserves as well as other program reserves. The Housing Choice Voucher Administration shortfall of $378,415 is recommended to be funded from privately managed reserves. In FY2020, NRHA’s expenditure projections will fluctuate as NRHA continues to convert properties to the Rental Assistance Demonstration (RAD) program, as additional grant funding is awarded, and as funding changes are considered in federally aided program in regards to Safety and Security Programs. At the same time, NRHA’s focus will be on efforts to manage and maintain 3,250 assisted rental units as well as an average of 3,563 Housing Choice Vouchers for participants in two major programs. Capital Funds, under the umbrella of the Design and Construction Management Department, continues to provide funding for necessary capital improvements to the aging stock and infrastructure of public housing properties. NRHA must constantly replace roofing, heating systems, windows, doors, flooring and other items in the federally assisted public housing communities. The Community Engagement Office within the Housing Division encompasses three areas: Client Services, Safety and Security Programs, and Housing Program.

CHALLENGES Our biggest budgetary challenge will be insufficient HUD funding for Public Housing and the Housing Choice Voucher Program Administration; and grant expiration, and eligibility, as traditional low income public housing is converted to other community types. HUD has placed caps on operating subsidy which do not cover the cost to operate our communities. Likewise, administrative fees are not sufficient to cover NRHA’s costs in the Housing Choice Voucher Program. Given recent Congressional funding decisions this trend may continue indefinitely.

NRHA FY2019 Approved Budget

020

June 2019

FY2019 ACCOMPLISHMENTS ♦ NRHA has been successful in obtaining funding to renovate NRHA-owned public housing communities (Grandy Village and Diggs Town). Eleven million dollars in Low Income Housing Tax Credit (LIHTC) funding has been secured to construct 70 Project Based Voucher units in Grandy Village.

♦ NRHA saw an increase in resident access to employment and training opportunities. From July 1, 2017 to present, 220 residents were assisted, 71 residents obtained employment and the average income increased by $12,402.

♦ NRHA secured grants from the Department of Rails and Public Transportation to provide transportation for elderly and disabled residents.

♦ NRHA has obligated 192 Project Based Vouchers to private developers for new developments in Norfolk and neighboring jurisdictions which will increase the housing options for voucher holders.

♦ NRHA received a $140,000 grant from OppInc to continue to provide education and vocational support for 16 to 24-year-old out of school youth.

♦ NRHA applied for and successfully received an

♦ NRHA received $335,695 from HUD to fund the

allocation of 40 Mainstream Vouchers to provide housing opportunities for nonelderly people with disabilities, especially those who are transitioning out of institutional or other segregated settings, at risk of institutionalization, homeless or at risk of becoming homeless.

salaries of five Family Self-Sufficiency case managers who coordinate and provide services to help public housing residents and HCV participants become self-sufficient.

♦ NRHA continues to work closely with

♦ NRHA applied for and received additional HUD

community partners to design and implement sustainable workforce development and lifelong learning services. From the full implementation of Jobs Plus to new partnerships formed with the Department of Aging and Rehabilitative Services, NRHA is fully engaged in a collective impact model to provide services and programs to residents. Currently, 312 residents are employed as a result of these programs.

VASH Vouchers for homeless veterans.

♦ Monthly landlord orientations were held with prospective and current landlords which has yielded several new landlords offering units for voucher holders to lease.

♦ NRHA certified under Section 8 Management Assessment Program (SEMAP) August 2018 as a High Performer.

♦ Jobs Plus is a HUD funded pilot program focused on developing a locally-based approach to increase earnings and advance employment outcomes for public housing residents in the Young Terrace community. Since inception, over 400 unemployed or underemployed residents in Young Terrace have engaged in various aspects of the program. To date, the Jobs Plus program has assisted over 130 residents with gaining or increasing employment.

♦ Coordinated specialized maintenance efforts to ensure safe and decent affordable units.

♦ Capital Fund completed renovation at the Diggs Town Recreation Center as well as lighting upgrades in Tidewater Gardens and Calvert Square.

♦ In 2019, NRHA’s Family First Initiatives focused on increasing resident engagement with crime prevention efforts by promoting events that focus on building safe and healthy communities.

NRHA FY2019 Approved Budget

021

June 2019

MAJOR GOALS ♦ Increase the availability of decent, safe and affordable housing by: • Applying for rental and special purpose vouchers as made available by HUD • Seek out privately owned available rental units for lease throughout the City of Norfolk in low poverty areas to list on NRHA’s Unit Availability List for voucher holders to lease.

•

Educate property owners on the Housing Choice Voucher (HCV) program and HUD’s Housing Quality Standards to ensure that their properties continue to meet standards.

• • • •

Conduct a Landlord Fair for existing and potential property owners. Increase assisted housing choices by providing Project Based Vouchers for developers. Completion of Grandy Village Phase VI which will provide 70 new Project Based Voucher units. Conversion of Diggs Town to Rental Assistance Demonstration Program (RAD)

♦ Improve the quality the overall Housing Choice Voucher Program • Maintain high performer status for the Section Eight Management Assessment Program (SEMAP). SEMAP measures the performance in 14 key areas of public housing agencies that administer the Housing Choice Voucher program.

•

Create positive public awareness and expand the level of support among families, owners and the community regarding the HCV Program.

♦ Improve the quality of public housing programs using various strategies for renovations. • • •

Complete renovations at Diggs Town Phase I and II Finalize plans to transition the Scattered Site units into a Section 32 Homeownership program, make renovations and sell all units to residents. Obtain high performer status for the Low Income Public Housing program.

♦ Improve community quality of life and economic vitality. ♦ Promote family and individual self-sufficiency and asset development. ♦ Develop community engagement initiatives for public housing communities to promote safety, prevention, intervention and enforcement.

♦ Expand the Workforce Development Program to focus on pre-employment assessment, training and placement of both public housing residents and HCV participants.

♦ Increase community partnerships to foster direct access to employment and training opportunities. ♦ Engage more youth residents in organized programs and activities in an effort to provide an alternative to truancy and undesirable behavior.

NRHA FY2019 Approved Budget

022

June 2019

HOUSING PROGRAMS FISCAL YEAR 2020 APPROVED REVENUE AND EXPENDITURES Approved Revenue TCB Communities- HUD PHA Grants Federally Aided Communities - HUD PHA Grants Operating Receipts - Federally Aided Housing Reserves from Federally Aided Communities Reserves from TCB Properties and 3rd Party Mgmt Housing Choice Voucher - HUD PHA Grants (for HAP) Housing Choice Voucher - HUD PHA Grants (Admin) Privately Managed Reserves for HCV Admin Housing Choice Voucher SRO - HUD PHA Grants (Admin) Housing Choice Voucher SRO - HUD PHA Grants Cottage Bridge- Tenant Revenue PBV RAD - Tenant Revenue PBV RAD - HUD PHA Grants Utilization of Replacement Reserves Jobs Plus HUD Grant State Rental Assistance Program (SRAP) HUD PHA Grants Section 5310 Grant-DPRT (formerly New Freedom) ROSS (PH and HCV Family Self-Sufficiency Grant) Ross Grant Service Coordinator Residential Options Inc.- Tenant Revenue Other Revenue- External Sources Out of School Program Housing Opportunity Reserves Advanced for Loans Privately Managed Reserves Transferred to Other Programs Privately Managed Earnings Transferred to Other Programs

Total Revenue

FY2020 Amount

761,645 12,472,767 7,920,939 109,031 1,324,049 30,524,214 2,670,478 378,415 55,199 294,774 594,961 6,619,840 616,352 158,852 575,000 675,447 418,179 332,115 120,741 384,833 700,000 195,000 300,000 1,011,123

1.10% 18.01% 11.44% 0.16% 1.91% 44.08% 3.86% 0.55% 0.08% 0.43% 0.86% 9.56% 0.89% 0.23% 0.83% 0.98% 0.60% 0.48% 0.17% 0.56% 1.01% 0.28% 0.43% 1.46%

39,784 69,253,738

0.06% 100.00%

Approved Expenditures Housing Choice Voucher (HAP) Federally Aided Housing Programs PBV-RAD Housing Choice Voucher Program (Administration) Housing Choice Voucher SRO (Administration) Broad Creek Renaissance (TCB) Jobs Plus State Rental Assistance Program (SRAP) Cottage Bridge Residential Options Inc. Housing Choice Voucher SRO Section 5310 Grant-DPRT (formerly New Freedom) ROSS Grant PH and HCV Family Self-Sufficiency Grant ROSS Service Coordinator Grant Resident Services Activity St. Paul's Area Relocation Loan Out of School Program Total Expenditures

NRHA FY2019 Approved Budget

023

Amount

30,524,214 22,129,587 7,503,024 3,048,893 94,983 761,645 952,965 675,447 607,451 594,720 294,774 418,179 332,115 120,741 700,000 300,000 195,000 69,253,738

44.08% 31.95% 10.83% 4.40% 0.14% 1.10% 1.38% 0.98% 0.88% 0.86% 0.43% 0.60% 0.48% 0.17% 1.01% 0.43% 0.28% 100.00%

June 2019

BROAD CREEK RENAISSANCE OVERVIEW

FUNDING METHODOLOGY

In 2000, Norfolk obtained a $35 million HOPE VI grant and enlisted Community Builders, Inc. (TCB) to implement NRHA’s vision of a revitalized neighborhood springing from the demolished Roberts Village and Bowling Green public housing communities as well as the redevelopment of the Marshall Manor site. Completed in 2012, Broad Creek is named after a nearby body of water. The neighborhood consists of 494 mixed-income units comprising of 300 family rental units, 100 senior rental units and 94 for-sale homes.

Under Public Housing or Section 9 projectbased funding, Public Housing Authorities complete a separate subsidy request for operating subsidies in each Low Income Public Housing (LIPH) community. In theory, the maximum operating subsidy a project owner receives is funding that covers the gap or shortfall in operating costs to fund a Project Expense Level that allows the project operating cost to break even.

As the master developer of six of the seven rental phases, TCB’s role included coordination of the demolition, infrastructure engineering and multifamily property management.

NRHA staff is working with TCB and HUD to explore the possibility of converting the TCB rental properties to a more stabilized operating platform under a possible RAD Conversion in FY2020.

Although subsidy applications have been submitted which request funding at a 100% level, HUD has historically been funding LIPH project owners at lower levels.

TCB continues to manage six phases of the multifamily rentals in the Broad Creek Renaissance area under the Section 9 platform.

PROGRAM INITIATIVES ♦ Obtain HUD designation as a high performer in managing Low Income Public Housing. ♦ Asset management. ♦ Ongoing maintenance.

NRHA FY2019 Approved Budget

024

June 2019

BROAD CREEK RENAISSANCE FY18 Actual

Revenue:

Net Tenant Rental Revenue

Tenant Revenue - Other HUD PHA Grants Interest Income

FY19 Approved Budget

FY19 Projected Actual

FY20 Approved Budget

1,141,281 -

839,844 -

1,083,133 -

761,645 -

Appropriation of Own Reserves

Proceeds from Property Sales

Other Revenue (External Source) Total Revenue

1,141,281

839,844

1,083,133

761,645

Expenditures Administrative and Program Delivery: Labor: Administration Resident Services Maintenance Program

Total Labor Other Administration Other (Interproject Fee for Services) Employee Benefits Management Fees

Total Admin & Program Delivery Exp.

Resident Services Utilities Maintenance Specialized Maintenance Protective Services Operating Subsidy Payment

Program Expenses:

General Expense Interest Expense Operating Transfer Out Capital Expenditures $

Total Program/Operating Expenses Surplus (Deficit) From Operations

Depreciation (Not Included in Totals)

Actual Reserves June 30, 2018 Projected Reserves June 30, 2019 Projected Reserves June 30, 2020

$ $ $

761,645 600,000 -

839,844 713,089 -

821,579 90,513 -

761,645 324,049 -

1,361,645 (220,364)

1,552,933 (713,089)

912,092 171,041

1,085,694 (324,049)

Provision For Reserves:

NRHA FY2019 Approved Budget

577,931 -

025

748,972 -

424,923

June 2019

BROAD CREEK RENAISSANCE SUMMARY DETAIL

Transaction Type Resources

Line Item Description

Bowling Green Ill

Bowling Green IV

Marshall Manor II

Marshall Manor Ill

Marshall Manor IV

Broad Creek V Moton 50

Grand Total

HUD PHA Grants Net Tenant Rental Revenue Tenant Revenue - Other Other Revenue Interest Income

82,701 82,701

120,761 120,761

113,943 113,943

164,560 164,560

140,214 140,214

72,784 72,784

66,682 66,682

761,645 761,645

General Expense Other

82,701 82,701

120,761 120,761

113,943 113,943

164,560 164,560

140,214 140,214

72,784 72,784

66,682 66,682

761,645 761,645

Resources Total Expenditures

Bowling Green II

Expenditure Total Net Surplus/(Deficit)

NRHA FY2019 Approved Budget

026

June 2019

PAGE INTENTIONALLY LEFT BLANK

NRHA FY2019 Approved Budget

027

June 2019

FEDERALLY AIDED HOUSING OVERVIEW

FUNDING METHODOLOGY

The Public and Indian Housing program provides and operates cost-effective, decent, safe and affordable dwellings for lower income families through an authorized local Public Housing Agency. Public Housing comes in all sizes and types, from multifamily apartments to scattered single-family houses and mid-rise apartments for elderly families. Norfolk Redevelopment and Housing Authority administers 2,787 low-income public housing units

Under project-based funding, NRHA completes a separate subsidy form for each project. A major component of a project’s subsidy calculation is its Project Expense Level (PEL). The PEL is a model-generated estimate of the cost to operate the project, excluding utilities and taxes. It is based on the costs of operating other federallyassisted housing projects with similar characteristics in terms of building type, location, number of bedrooms per unit and so on.

PROGRAM INITIATIVES ♦ Obtain HUD designation as a high performer in managing Low Income Public Housing. ♦ Asset management and ongoing maintenance. ♦ Develop and implement community standards to improve curb appeal. ♦ Develop community engagement initiatives to promote safety, prevention, intervention and enforcement.

NRHA FY2019 Approved Budget

028

June 2019

FEDERALLY AIDED HOUSING (Non-Tax Credit Projects) FY18 Actual

Revenue:

Net Tenant Rental Revenue

FY19 Approved Budget

FY19 Projected Actual

FY20 Approved Budget

8,146,828

7,922,231

8,058,081

7,312,612

666,920 13,004,810

812,010 12,927,692

575,155 12,865,700

607,188 12,472,767

769

760

1,429

1,139

Other Revenue (External Source) Appropriations from Other Programs

9,359 443,131

1,681,160

22,362 -

1,626,849

Appropriation of Federally Aided Reserves

196,933

200,318

1,024,360

109,031

22,468,750

23,544,171

22,547,087

22,129,586

Administration Resident Services Maintenance Program

1,034,371 371,013 1,547,782 169,276

1,211,557 396,022 1,771,426 198,712

1,039,865 367,952 1,490,659 153,843

1,217,106 384,387 1,687,950 158,273

Total Labor Other Administration Other (Interproject Fee for Services) Employee Benefits Management Fees

3,122,442 233,451 271,668 1,255,902 2,392,745

3,577,717 594,313 359,967 1,504,808 2,596,309

3,052,319 402,950 215,406 1,179,195 2,660,827

3,447,716 311,302 224,198 1,385,700 2,336,504

Total Admin & Program Delivery Exp.

7,276,208

8,633,114

7,510,697

7,705,420

Resident Services Utilities Maintenance Specialized Maintenance Protective Services

129,252 8,451,106 1,261,154 3,767,906 776,215

459,967 7,882,697 644,123 3,949,706 1,235,796

149,051 9,088,126 925,652 3,329,220 682,333

169,047 8,026,134 1,308,653 3,111,208 760,041

591,931 214,978

539,584 199,184

525,735 336,273

637,248 411,835

22,468,750 -

23,544,171 -

22,547,087 -

22,129,586 -

Tenant Revenue - Other HUD PHA Grants Interest Income

Total Revenue

Expenditures Administrative and Program Delivery: Labor:

Program Expenses:

General Expense Transfers to Other Programs Capital Expenditures Total Program/Operating Expenses Surplus (Deficit) From Operations

$ $

Depreciation (Not Included in Totals)

Actual Reserves June 30, 2018 Projected Reserves June 30, 2019 Projected Reserves June 30, 2020

$ $ $

Provision For Reserves:

NRHA FY2019 Approved Budget

1,134,165 -

029

109,805 -

109,805

June 2019

FEDERALLY AIDED HOUSING SUMMARY BY COMMUNITY Revenue

Community

Expenditures

Net Surplus/ (Deficit) **

NON - TAX CREDIT PROJECTS Bobbitt Apartments

454,326

742,803

($288,477)

Calvert Square

2,536,124

3,035,855

(499,731)

Diggs Town

1,838,077

1,568,370

269,707

FSS Scattered Sites

117,423

155,871

(38,448)

Grandy Village

187,825

184,690

3,135

Hunter Square Apartments

583,799

843,962

(260,163)

1,908,649

2,308,773

(400,124)

Partrea Apartments

642,341

861,692

(219,351)

Sykes Apartments

493,652

784,276

(290,624)

Tidewater Gardens

5,259,499

5,644,671

(385,172)

Young Terrace

6,371,991

5,998,622

373,369

20,393,706

22,129,585

(1,735,879)

Oakleaf Forest

Grand Total

Surplus cash is fungible between non-tax credit communities for front line expeditures.

Note: Federally Aided deficit will be funded with the program's own reserves, and appropriations from other programs.

NRHA FY2019 Approved Budget

030

June 2019

FEDERALLY AIDED HOUSING COMMUNITIES SUMMARY DETAIL Transaction Type Resources

Line Item Description HUD PHA Grants Net Tenant Rental Revenue Tenant Revenue - Other Other Revenue

Resources Total Expenditures

Labor Employee Benefits * PC Access * 555 Main Street Building * Vehicle Expense * Telephones, Copiers, & Printers ** Management Fee Other Administration Resident Services Utilities Maintenance Specialized Maintenance Protective Services General Expense Capital Improvements Expenditures Total

Net Surplus/(Deficit)

FSS Scattered Sites

Grandy Village

Diggs Town

141,408 305,810 7,069 39 454,326

1,430,808 968,112 137,060 144 2,536,124

1,472,093 327,142 38,787 55 1,838,077

36,876 78,519 2,021 7 117,423

166,762 18,592 2,468 3 187,825

294,120 281,249 8,387 43 583,799

1,311,540 557,002 39,987 120 1,908,649

256,176 378,045 8,067 53 642,341

234,600 249,444 9,569 39 493,652

3,408,756 1,692,993 157,462 288 5,259,499

3,719,628 2,455,704 196,311 348 6,371,991

12,472,767 7,312,612 607,188 1,139 20,393,706

94,437 35,219 995 1,138 12,528 80,371 7,300 5,471 139,028 94,090 110,900 75,000 23,326 63,000 742,803

475,925 211,007 3,672 8,149 9,966 16,931 296,608 48,399 17,353 1,101,214 171,266 498,300 63,618 62,447 51,000 3,035,855

490,742 202,031 1,185 2,539 8,457 13,655 95,680 13,098 4,875 403,210 61,581 105,161 24,688 127,226 14,242 1,568,370

14,128 5,799 178 3,100 46 14,352 1,342 155 1,388 27,356 44,300 28,927 14,800 155,871

65,738 26,381 545 1,428 8,258 2,294 22,007 3,282 814 22,402 4,960 4,645 19,558 2,378 0 184,690

103,009 26,210 1,078 1,233 14,568 87,068 13,596 5,708 230,095 103,154 150,200 75,000 12,043 21,000 843,962

426,276 164,534 3,044 7,027 10,039 13,582 245,897 27,705 15,094 471,478 150,500 563,000 65,517 82,080 63,000 2,308,773

112,262 46,202 1,351 1,544 13,580 109,075 10,110 6,506 176,104 108,643 164,402 75,000 30,420 6,493 861,692

91,790 36,826 995 1,138 13,150 80,371 25,536 6,594 213,232 89,216 132,800 75,000 13,328 4,300 784,276

705,552 304,011 7,025 16,462 13,064 15,372 591,302 63,250 32,265 2,552,243 280,638 737,500 137,111 106,376 82,500 5,644,671

867,857 327,480 8,835 19,535 13,546 16,441 713,773 75,215 43,860 2,715,740 217,249 600,000 149,549 138,042 91,500 5,998,622

3,447,716 1,385,700 28,903 60,193 66,430 132,147 2,336,504 288,833 138,695 8,026,134 1,308,653 3,111,208 760,041 626,593 411,835 22,129,585

(288,477)

(499,731)

269,707

(38,448)

(260,163)

(400,124)

(219,351)

(290,624)

(385,172)

373,369

(1,735,879)

3,135

Hunter Square

Oakleaf Forest

Partrea

Sykes

Tidewater Gardens

Young Terrace

Total Federally Aided

Calvert Square

Bobbitt

* Centrally administered charge back costs, including allocations. ** HUD Safe Harbor Rate, see fee rate schedule.

NRHA FY2019 Approved Budget

031

June 2019

PAGE INTENTIONALLY LEFT BLANK

NRHA FY2019 Approved Budget

032

June 2019

FY2020 Safe Harbor Fee Schedule - Federally Aided Projects Management Fee * $64.39 97%

Public Housing

Rate Per Unit Month (PUM) PH Occupancy Assumption Project Name Tidewater Gardens Diggs Town Grandy Village** Young Terrace Calvert Square Oakleaf Forest Partrea Apartments Hunter Square Bobbitt Apartments Sykes Apartments FSS Scattered Sites Public Housing Totals

Project Number

# of Units

002 006 008 010 011 012 018 019 020 021 024

618 100 46 746 310 257 114 91 84 84 15 2,465

Bookeeping Fee $7.50 97%

Asset Management Fee $10.00 NA

Total Fees

Project Total 463,191 74,950 17,238 559,127 232,345 192,621 85,443 68,204 62,958 62,958 11,242 $1,830,278

53,951 8,730 2,008 65,126 27,063 22,436 9,952 7,944 7,333 7,333 1,310 $213,187

74,160 12,000 2,760 89,520 37,200 30,840 13,680 10,920 10,080 10,080 1,800 $293,040

591,302 95,680 22,006 713,773 296,608 245,897 109,075 87,069 80,371 80,371 14,352 $2,336,505

*Reflects HUD published Safe Harbor Fee rate, effective 1/1/2018. NRHA uses its discretion to change safe harbor fees, as it reviews the fiscal affordability of PIH programs funded by HUD. **Grandy Village Safe Harbor Fees budgeted for six months.

NRHA FY2019 Approved Budget

033

June 2019

RAD / PROJECT BASED VOUCHER COMMUNITIES OVERVIEW

FUNDING METHODOLOGY

The Rental Assistance Demonstration (RAD) is a voluntary HUD program. RAD helps Public Housing Authorities (PHAs) preserve and make needed improvements to assisted rental housing properties by providing access to more stable funding. RAD allows PHAs to change apartments from the Public Housing Program to the Project Based Voucher (PBV) Program.

Tenant payments for rent and other fees, as well as a HUD subsidy, provide the total income for these projects.

PROGRAM INITIATIVES

Current RAD and PBV communities include Grandy Revitalization, Franklin Arms, North Wellington, Grandy Village V and Diggs Town Phase I.

♦ Offer affordable housing choices for low-income individuals by providing rental assistance. ♦ Asset management and ongoing maintenance.

Cottage Bridge and Grandy VI are PBV communities without RAD.

♦ Develop and implement community standards to improve curb appeal. ♦ Develop community engagement initiatives to promote safety, prevention, intervention and enforcement.

NRHA FY2019 Approved Budget

034

June 2019

RAD/ PROJECT BASED VOUCHER COMMUNITIES SUMMARY BY COMMUNITY Revenue

Community Cottage Bridge Diggs Phase I Franklin Arms Grandy Village Phase V Grandy Village Phase VI Grandy Village Revitalization North Wellington Grand Total

NRHA FY2019 Approved Budget

607,451 2,720,338 1,003,969 177,839 1,102,596 2,659,924 252,730 8,524,847

035

Expenditures 607,451 2,294,969 872,037 177,839 1,102,596 2,694,877 252,730 8,002,499

Net Surplus/ (Deficit) 425,369 131,932 (34,953) 522,348

June 2019

FY2020 Safe Harbor Fee Schedule - RAD/PBV Projects Management Fee * $64.39 97%

RAD/PBV Housing

Rate Per Unit Month (PUM) PH Occupancy Assumption Project Name North Wellington Franklin Arms Grandy Village Revitalization Grandy Village Phase V Grandy Village Phase VI Diggs Phase I RAD/PBV Totals

Project Number

# of Units

022 025 084 092 093 110

25 100 275 16 70 222 708

Bookeeping Fee $7.50 97%

Asset Management Fee $10.00 NA

Total Fees

Project Total 18,737 74,950 206,112 11,992 52,465 166,389 $530,646

2,183 8,730 24,008 1,397 6,111 19,381 $61,808

3,000 12,000 33,000 1,920 8,400 26,640 $84,960

23,920 95,680 263,120 15,309 66,976 212,410 $677,414

*Reflects HUD published Safe Harbor Fee rate effective 1/1/2018. NRHA uses its discretion to change Safe Harbor fees, as it reviews the fiscal affordability of PIH programs funded by HUD.

NRHA FY2019 Approved Budget

036

June 2019

PAGE INTENTIONALLY LEFT BLANK

NRHA FY2019 Approved Budget

037

June 2019

COTTAGE BRIDGE OVERVIEW

FUNDING METHODOLOGY Tenant rent payments and other fees, as well as a HUD subsidy, provide the total income from this project.

Cottage Bridge Midrise apartment complex is adjacent to Partrea Midrise. The three-story building houses 47 energy efficient apartments.

Tenant rent for PBV is referred to as the Total Tenant Payment. It is based on a family’s anticipated gross annual income less deductions, if any. HUD regulations allow Public Housing Authorities to exclude from annual income the following allowances: $480 for each dependent; $400 for any elderly family members; and medical deductions for families headed by an elderly person or a person with disabilities.

The facility includes office and administration areas and a community room. All units are designed to meet Americans with Disability Act accessibility standards for residents with disabilities and are Type A wheelchair accessible. Previously an underutilized infill development, Cottage Bridge is a gorgeous apartment complex providing affordable housing to disabled residents in the City of Norfolk.

PROGRAM INITIATIVES

In 2012, NRHA was awarded a low income housing tax credit for the development of Cottage Bridge apartments. NRHA awarded 47 Project Based Vouchers for the Cottage Bridge Apartments. NRHA Partrea Limited Partnership, a Virginia limited partnership, and Norfolk Redevelopment and Housing Authority own the complex.

NRHA FY2019 Approved Budget

♦ Offer affordable housing choices for disabled households by providing rental assistance. ♦ Asset management and ongoing maintenance. ♦ Develop and implement community standards to improve curb appeal. ♦ Develop community engagement initiatives to promote safety through prevention, intervention and enforcement.

038

June 2019

COTTAGE BRIDGE FY18 Actual

Revenue:

Net Tenant Rental Revenue

FY19 Approved Budget

FY19 Projected Actual

FY20 Approved Budget

592,696

591,253

587,708

592,696

1,799 6

2,227 38

1,633 9

2,227 38

Transfers from Other Projects

12,490

Other Revenue (External Source)

Tenant Revenue - Other Interest Income

Total Revenue

594,501

593,518

589,350

607,451

27,245

30,685

24,446

30,218

1,756

1,748

1,849

18,954

33,163

7,996

31,700

46,199

65,604

34,190

63,767

24,859

25,623

13,259

21,066

2,721

400

3,214

Expenditures Administrative and Program Delivery: Labor: Administration Resident Services

Maintenance Program Total Labor

Other Administration Other (Interproject Fee for Services)

Employee Benefits

17,642

37,852

13,217

20,657

Management Fees

37,781

46,402

40,925

35,562

126,481

178,202

101,991

144,266

2,000

600

5,600

Utilities

91,204

69,384

80,365

95,531

Maintenance

24,702

35,550

39,630

45,603

Specialized Maintenance

47,215

29,342

38,640

19,106

Protective Services

31,908

35,000

45,600

General Expense

40,866

39,845

50,445

51,830

Interest Expense

Total Admin & Program Delivery Exp. Program Expenses: Resident Services

Principal Payment on Debt

139,112

Equipment (Non Expendable/Hardware)

Other Capital Expenditures

170,709 -

167,800 -

3,553

24,000

6,000

32,115 607,451

Total Program/Operating Expenses

505,127

413,323

523,380

Surplus (Deficit) From Operations

89,374

180,195

65,970

Appropriation for Other Programs Depreciation (Not Included in Totals)

$ $

Provision For Reserves: Actual Reserves June 30, 2018

Projected Reserves June 30, 2019

Projected Reserves June 30, 2020

NRHA FY2019 Approved Budget

321,085

039

387,055 -

387,055

June 2019

DIGGS TOWN PHASE I OVERVIEW

FUNDING METHODOLOGY

Diggs Town Phase I is located in the Campostella area and consists of 222 units converted to the RAD Project-Based Voucher program in FY2019.

Tenant rent payments and other fees, as well as a HUD subsidy, provide the total income from this project. Tenant rent for PBV is referred to as the Total Tenant Payment. It is based on a family’s anticipated gross annual income less deductions, if any. HUD regulations allow Public Housing Authorities to exclude from annual income the following allowances: $480 for each dependent; $400 for any elderly family members; and medical deductions for families headed by an elderly person or a person with disabilities.

Funded with tax credits, substantial rehabilitation is projected to be completed in FY2021.

PROGRAM INITIATIVES ♦ Offer affordable housing choices for low income individuals by providing rental assistance. ♦ Asset management and ongoing maintenance. ♦ Develop and implement community standards to improve curb appeal. ♦ Develop community engagement initiatives to promote safety through prevention, intervention and enforcement. NRHA FY2019 Approved Budget

040

June 2019

DIGGS TOWN PHASE I FY18 Actual

Revenue:

Net Tenant Rental Revenue

FY19 Approved Budget -

Tenant Revenue - Other

HUD PHA Grants

Interest Income Other Revenue (External Source)

904,479 261,269 -

FY19 Projected Actual 92,000 2,000 318,756 -

FY20 Approved Budget 1,739,457 980,881 -

1,165,748

412,756

2,720,338

181,559 181,559 11,187 70,344 62,367 325,457

66,029 15,291 81,320 14,872 21,028 117,220

115,738 1,159 8,732 125,629 105,830 6,241 20,601 212,410 470,711

23,899 445,000 12,085 168,937 81,638 51,339 11,280 -

213,506 67,000 -

5,433 727,372 391,584 55,832 128,947 448,490 66,600 -

Total Program/Operating Expenses

1,119,635

397,726

2,294,969

Surplus (Deficit) From Operations

46,113

15,030

425,369

Appropriation for Other Programs Depreciation (Not Included in Totals)

$ $

Actual Operating Reserves June 30, 2018 Projected Operating Reserves June 30, 2019 Projected Operating Reserves June 30, 2020

$ $ $

15,030 -

Total Revenue

Expenditures Administrative and Program Delivery: Labor: Administration Resident Services Maintenance Program Total Labor Other Administration Other (Interproject Fee for Services) Employee Benefits Management Fees Total Admin & Program Delivery Exp.

Program Expenses: Resident Services Utilities Maintenance Specialized Maintenance Protective Services General Expense Interest Expense Principal Payment on Debt Replacement Reserves Capital Expenditures Housing Assistance Payments

Provision For Reserves:

NRHA FY2019 Approved Budget

041

440,399

June 2019

FRANKLIN ARMS OVERVIEW

FUNDING METHODOLOGY

Franklin Arms is a development with 100 units serving residents 55 years or older. It was built in 2003 as part of the Broad Creek HOPE VI program. It is a tax-credit financed development and may be expanded as part of the redevelopment strategy for the nearby Moton Circle.

Franklin Arms was converted to the RAD Project Based Voucher program in FY2018.

PROGRAM INITIATIVES ♦ Offer affordable housing choices for low-income individuals by providing rental assistance. ♦ Asset management and ongoing maintenance. ♦ Develop and implement community standards to improve curb appeal. ♦ Develop community engagement initiatives to promote safety through prevention, intervention and enforcement.

NRHA FY2019 Approved Budget

042

June 2019

FRANKLIN ARMS FY18 Actual

Revenue:

Net Tenant Rental Revenue

Tenant Revenue - Other

FY19 Approved Budget

FY19 Projected Actual

FY20 Approved Budget

847,191

918,000

978,094

998,448

4,451

6,286

5,444

4,546

HUD PHA Grants

Interest Income Other Revenue (External Source)

764 -

758 -

974 -

975 -

852,406

925,044

984,512

1,003,969

67,328 35,868 103,196 72,356 36,506 87,688 299,746

76,548 3,752 1,309 81,609 18,924 12,970 42,366 95,680 251,549

81,002 40,562 3,734 125,298 14,705 5,217 42,419 95,680 283,319

83,650 36,864 3,933 124,447 22,424 9,111 47,975 95,680 299,637

2,738 77,894 96,192 68,289 71,617 63,695 62 12,331 32,875

11,548 73,172 94,236 86,062 72,000 53,529 8,000 148,800 -

6,098 80,354 73,828 159,621 72,000 71,054 51 7,342 -

13,326 94,146 94,303 91,681 75,821 75,061 62 128,000 -

725,439

798,896

753,667

872,037

Surplus (Deficit) From Operations

$ $

126,967

126,148

230,845

131,932

Appropriation for Other Programs Depreciation (Not Included in Totals)

$ $

Actual Operating Reserves June 30, 2018 Projected Operating Reserves June 30, 2019 Projected Operating Reserves June 30, 2020

$ $ $

Replacement Reserves Total Revenue

Program Expenses: Resident Services Utilities Maintenance Specialized Maintenance Protective Services General Expense Interest Expense Capital Expenditures Housing Assistance Payments Total Program/Operating Expenses

Provision For Reserves:

NRHA FY2019 Approved Budget

525,873 -

043

756,718 -

888,650

June 2019

GRANDY VILLAGE REVITALIZATION OVERVIEW

FUNDING METHODOLOGY

Grandy Village Revitalization is the first multi-family complex in Hampton Roads to transform a community into a sustainable mixedincome community financed with tax credits.

The 22 duplexes were designed to Energy Star Standards and have received awards of merit from the National Association of Housing and Redevelopment Officials. Criteria for families to move into Grandy Revitalization include:

♦ Being employed for the past six months and working at least 15 hours per week, unless elderly or disabled

PROGRAM INITIATIVES

♦ Children must be attending school and be in good standing as defined by Norfolk Public Schools.

♦ Offer affordable housing choices for low income individuals by providing rental assistance.

♦ Any household member who is 16 years of age or older not attending school must be employed a minimum 20 hours per week and involved in a job training or vocational program.

♦ Asset management and ongoing maintenance. ♦ Develop and implement community standards to improve curb appeal. ♦ Develop community engagement initiatives to promote safety through prevention, intervention and enforcement.

Grandy Village Revitalization was converted to the Project Based Voucher program in FY2018.

NRHA FY2019 Approved Budget

044

June 2019

GRANDY VILLAGE REVITALIZATION FY18 Actual

Revenue:

Net Tenant Rental Revenue Tenant Revenue - Other

HUD PHA Grants Interest Income Other Revenue (External Source) Replacement Reserve

2,933,554 32,501

FY19 Approved Budget 2,406,600 42,763

FY19 Projected Actual 2,411,609 30,266

FY20 Approved Budget 2,458,128 31,865

89,504

9,933 88,781

9,921 74,128

11,052 91,339

134,000

90,000

3,055,559

2,548,077

2,659,924

2,682,384

Administration Resident Services Maintenance Program

111,225 48,398 218,615 -

139,852 56,898 239,204 20,726

153,459 60,491 249,369 -

160,588 259,562 58,345 -

Total Labor Other Administration Other (Interproject Fee for Services) Employee Benefits Management Fees

378,238 204,203 165,627 262,660

456,680 44,033 29,145 178,763 263,120

463,319 34,088 12,924 173,932 263,120

478,495 47,641 7,595 198,653 263,120

Total Admin & Program Delivery Exp.

1,010,728

971,741

947,383

995,504

Resident Services Utilities Maintenance Specialized Maintenance Protective Services General Expense Interest Expense Capital Expenditures Housing Assistance Payments

14,442 835,017 267,172 235,185 46,676 188,300 (299) 5,508 458,876

48,893 765,502 179,528 200,601 110,083 171,227 16,771 127,845 -

23,618 840,536 274,781 296,715 88,988 211,618 13 11,225 -

51,358 780,812 159,637 541,030 63,618 200,363 10,532 -

Total Program/Operating Expenses

3,061,605

2,592,191

2,694,877

2,802,854

Surplus (Deficit) From Operations

(6,046)

(44,114)

(34,953)

(120,470)

Appropriation for Other Programs Depreciation (Not Included in Totals)

$ $

Actual Reserves June 30, 2018 Projected Reserves June 30, 2019 Projected Reserves June 30, 2020

$ $ $

Total Revenue

Expenditures Administrative and Program Delivery: Labor:

Program Expenses:

Provision For Reserves:

NRHA FY2019 Approved Budget

045

June 2019

GRANDY VILLAGE V OVERVIEW

FUNDING METHODOLOGY

Grandy Village V is part of the first multi-family complex in Hampton Roads to transform a community into a sustainable mixed-income community financed with tax credits.

Criteria for families to move into Grandy Village V include: ♦ Being employed for past six months and working at least 15 hours per week unless elderly or disabled ♦ Children must be attending school and be in good standing as defined by Norfolk Public Schools. ♦ Any household member who is 16 years of age or older not attending school must be employed a minimum 20 hours per week and involved in a job training or vocational program.

PROGRAM INITIATIVES ♦ Offer affordable housing choices for low income individuals by providing rental assistance. ♦ Asset management and ongoing maintenance.

Grandy Village V was converted to the Project Based Voucher Program in FY2018.

♦ Develop and implement community standards to improve curb appeal. ♦ Develop community engagement initiatives to promote safety through prevention, intervention and enforcement.

NRHA FY2019 Approved Budget

046

June 2019

GRANDY VILLAGE V FY18 Actual

Revenue:

Net Tenant Rental Revenue Tenant Revenue - Other

HUD PHA Grants

FY19 Approved Budget

131,889 1,041 -

Interest Income

FY19 Projected Actual

133,801 2,874 -

FY20 Approved Budget

138,548 706 -

142,213 919 -

Other Revenue (External Source)

261

Replacement Reserve

34,700

19,663

Appropriations from other Programs $

132,934

136,941

158,925

177,839

Administration Resident Services Maintenance Program

8,677 3,684 14,651 -

7,550 3,053 12,610 1,113

11,206 4,375 16,306 -

8,672 3,131 13,670 -

Total Labor Other Administration Other (Interproject Fee for Services) Employee Benefits Management Fees

27,012 16,971 12,014 14,999

24,326 2,787 1,749 8,913 15,309

31,887 2,558 705 12,173 15,309

25,473 3,161 435 10,595 15,309

Total Admin & Program Delivery Exp.

70,996

53,084

62,632

54,973

Resident Services Utilities Maintenance Specialized Maintenance Protective Services General Expense Interest Expense Capital Expenditures Housing Assistance Payments

50,021 7,433 7,680 11,403 219

2,368 51,585 36,106 14,288 3,494 8,411 -

1,153 51,878 16,035 15,056 2,488 9,683 -

2,581 52,617 18,622 35,111 3,419 10,516 -

Total Program/Operating Expenses

147,752

169,336

158,925

177,839

Surplus (Deficit) From Operations

(14,818)

(32,395)

Appropriation for Other Programs Depreciation (Not Included in Totals)

$ $

Actual Reserves June 30, 2018 Projected Reserves June 30, 2019 Projected Reserves June 30, 2020

$ $ $

39,625 -

39,625

Total Revenue

Expenditures Administrative and Program Delivery: Labor:

Program Expenses:

Provision For Reserves:

NRHA FY2019 Approved Budget

047

June 2019

GRANDY VILLAGE VI OVERVIEW

FUNDING METHODOLOGY

Grandy Village VI is located in the Chesterfield area and consists of 70 units placed under the Project Based Voucher Program in FY2019.

Funded with tax credits, new construction of the 70 units is projected to be completed in FY2020.

048

June 2019

GRANDY VILLAGE VI FY18 Actual

FY19 Approved Budget

FY19 Projected Actual

HUD PHA Grants

Interest Income

Revenue:

Net Tenant Rental Revenue Tenant Revenue - Other

Other Revenue (External Source)

FY20 Approved Budget 1,102,596 -

1,102,596

Administration Resident Services Maintenance Program

14,876 2,753 56,953 -

Total Labor Other Administration Other (Interproject Fee for Services) Employee Benefits Management Fees

74,582 22,989 1,955 30,690 66,976

Total Admin & Program Delivery Exp.

197,192

Resident Services Utilities Maintenance Specialized Maintenance Protective Services General Expense Principal Payment on Debt Transfers to Other Projects Capital Expenditures Replacement Reserve Housing Assistance Payments

55,699 163,700 69,554 37,092 66,586 491,773 21,000 -

Total Program/Operating Expenses

1,102,596

Surplus (Deficit) From Operations

Appropriation for Other Programs Depreciation (Not Included in Totals)

$ $

Actual Reserves June 30, 2018 Projected Reserves June 30, 2019 Projected Reserves June 30, 2020

$ $ $

Total Revenue

Expenditures Administrative and Program Delivery: Labor:

Program Expenses:

Provision For Reserves:

NRHA FY2019 Approved Budget

049

June 2019

NORTH WELLINGTON OVERVIEW

FUNDING METHODOLOGY

North Wellington was converted to the Project Based Voucher program in FY2018. The community consists of 23 duplexes and two singlefamily homes located primarily in the Norview area of Norfolk.

Tenant rent payments and other fees, as well as a HUD subsidy, provide the total income from this project. Tenant rent for public housing is referred to as the Total Tenant Payment. It is based on a family’s anticipated gross annual income less deductions, if any. HUD regulations allow Public Housing Authorities to exclude from annual income the following allowances: $480 for each dependent; $400 for any elderly family members; and medical deductions for families headed by an elderly person or a person with disabilities.

PROGRAM INITIATIVES ♦ Offer affordable housing choices for disabled households by providing rental assistance. ♦ Asset management and ongoing maintenance. ♦ Develop and implement community standards to improve curb appeal. ♦ Develop community engagement initiatives to promote safety through prevention, intervention and enforcement.

NRHA FY2019 Approved Budget

050

June 2019

NORTH WELLINGTON FY18 Actual

Revenue:

Net Tenant Rental Revenue Tenant Revenue - Other

HUD PHA Grants

FY19 Approved Budget

225,714 4,052 -

Interest Income

Operating Transfer In Other Revenue (External Source)

271,500 4,164 31 5,131

FY19 Projected Actual 203,551 2,046 12 -

FY20 Approved Budget 212,548 3,075 16 21,662 15,429

229,786

280,826

205,609

252,730

Administration Resident Services Maintenance Program

8,472 2,634 -

7,870 327 -

8,116 4,604 -

8,456 6,192 -

Total Labor Other Administration Other (Interproject Fee for Services) Employee Benefits Management Fees

11,106 7,111 4,466 22,852

8,197 2,688 338 7,937 23,920

12,720 1,294 46 3,873 23,920

14,648 967 5,535 23,920

Total Admin & Program Delivery Exp.

45,535

43,080

41,853

45,070

Resident Services Utilities Maintenance Specialized Maintenance Protective Services General Expense Interest Expense Capital Expenditures Housing Assistance Payments

4,608 3,214 74,478 21,691 (69) 20,759

29,340 8,231 14,093 38,300 14,148 650 -

203 1,235 3,254 52,229 20,302 25 650 -

703 5,068 2,000 180,729 19,160 -

Total Program/Operating Expenses

170,216

147,842

119,751

252,730

Surplus (Deficit) From Operations

59,570

132,984

85,858

Appropriation for Other Programs Depreciation (Not Included in Totals)

$ $

Actual Reserves June 30, 2018 Projected Reserves June 30, 2019 Projected Reserves June 30, 2020

$ $ $

Total Revenue

Expenditures Administrative and Program Delivery: Labor:

Program Expenses:

Provision For Reserves:

NRHA FY2019 Approved Budget

135,641 -

051

221,499 -

221,499

June 2019

HOUSING CHOICE VOUCHER PROGRAM OVERVIEW

FUNDING METHODOLOGY

The Housing Choice Voucher program (HCV) provides rental to very low- to moderately- low income families, the elderly and disabled to help them afford decent, safe and sanitary housing in the private market.

Total budget authorization is based on the prior year calendar Housing Assistance Payments (HAP) expenses. HUD adjusts for inflation and proration factors. Administrative fees are paid on the basis of units leased as of the first day of each month. The data is extracted from the Voucher Management System on a quarterly cycle.

NRHA also receives special purpose vouchers for homeless veterans (VASH) and non-elderly disabled (Main Stream and NED) that provide housing assistance payments to participating owners on behalf of eligible tenants.

PROGRAM INITIATIVES ♦ Offer affordable housing choices for extremely-low, very-low and lowincome households by providing rental assistance.

NRHA makes Project Based Vouchers available for Low Income Public Housing units that have been approved as RAD properties, newly constructed or rehabilitated properties.

♦ Increase housing opportunities in low poverty areas by providing Project Based Vouchers for newly constructed or rehabilitated properties. ♦ Assist program participants in becoming self-sufficient through participation in the Family Self Sufficiency Program. ♦ Recruit landlords to provide accessible housing for the disabled and expand housing choice options for program participants.

NRHA FY2019 Approved Budget

052

June 2019

HOUSING CHOICE VOUCHER PROGRAM AND ADMINISTRATION FY18 Actual Revenue: HUD PHA Grants

HUD PHA Grants (Administrative Fee) Other Revenue

FY19 Approved Budget

FY19 Projected Actual

FY20 Approved Budget

26,809,590

27,630,397

27,741,627

30,524,214

2,111,383

2,157,889

1,896,485

2,658,178

5,287

12,300

221,282

21,788

Other Fees (Port In)

678,710

Earnings from Other Programs

Appropriations from Other Programs

342,072

Appropriation of HCV HAP Reserves

659,290 323,087

374,245 -

378,415 -

29,963,543

30,770,663

30,238,926

33,573,107

Administration Resident Services Maintenance Program

751,679 297,909 -

1,208,812 -

785,374 312,224 -

1,009,698 313,506 -

Total Labor Other Administration Other (Interproject Fee for Services) General Expense Employee Benefits Management Fees Port-In (HAP & Admin Fees)

1,049,588 282,696 11,314 15,934 364,652 713,836 702,227

1,208,812 282,164 231,586 430,993 663,624 -

1,097,598 296,085 162,846 35,159 345,169 663,624 292,708

1,323,204 277,803 120,723 25,825 467,694 833,644 -

Total Admin & Program Delivery Exp.

3,140,247

2,817,179

2,893,189

3,048,893

26,214,836 -

27,953,484 -

27,345,737 -

30,524,214 -

Total Program/Operating Expenses Surplus (Deficit) From Operations

29,355,083 608,460

30,770,663 -

30,238,926 -

33,573,107 -

Depreciation (Not Included in Totals) Provision For Reserves:

Actual Reserves (HAP) June 30, 2018 Actual Reserves (ADM) June 30, 2018

Projected Reserves (HAP) June 30, 2019 Projected Reserves (ADM) June 30, 2019

Projected Reserves (HAP) June 30, 2020 Projected Reserves (ADM) June 30, 2020

Total Revenue Expenditures Administrative and Program Delivery: Labor:

Program Expenses: Resident Services Utilities Maintenance Specialized Maintenance Housing Assistance Payments NRHA Homebuyer Assistance General Expense Interest Expense Equipment (Non-Expendable/Hardware) Capital Expenditures

NRHA FY2019 Approved Budget

1,331,734 -

053

1,331,734 -

June 2019

HOUSING CHOICE VOUCHER PROGRAM – SINGLE ROOM OCCUPANCY OVERVIEW

FUNDING METHODOLOGY

Section 441 of the McKinney-Vento Homeless Assistance Act authorizes the Single Room Occupancy program. Under the Section 8 Moderate Rehabilitation Program, NRHA assists homeless participants in obtaining housing in a single room occupancy facility.

HUD enters into Annual Contributions Contracts with public housing agencies (PHAs) in connection with the moderate rehabilitation of residential properties that, when rehabilitation is completed, will contain multiple single-room dwelling units. These PHAs make Section 8 rental assistance payments to participating owners /landlords on behalf of homeless individuals who rent the rehabilitated dwellings. The rental assistance payments cover the difference between a portion of the tenant’s income (normally 30%) and the unit’s rent, which must be within the fair market rent established by HUD. Rental assistance for SRO units is provided for a period of 10 years.

PROGRAM INITIATIVES

NRHA FY2019 Approved Budget

054

♦

To provide homeless single adults with stable and affordable housing.

♦

Provide case management, housing and outreach services.

June 2019

HOUSING CHOICE VOUCHER - SINGLE ROOM OCCUPANCY PROGRAM AND ADMINISTRATION FY18 Actual

Revenue:

HUD PHA Grants

HUD PHA Grants- Administrative Fee

FY19 Approved Budget

FY19 Projected Actual

FY20 Approved Budget

294,511

306,720

320,268

294,774

54,162

54,680

55,199

Interest Income

Other Revenue (External Source)

33,186

44,064

39,183

39,784

Earnings from Other Programs Appropriation of Reserves

381,859

404,946

414,131

389,757

Administration Resident Services Maintenance Program

54,299 -

55,616 -

56,088 -

56,719 -

Total Labor Other Administration Other (Interproject Fee for Services) Employee Benefits General Expense Management Fee

54,299 12,910 11,985 66 8,088

55,616 1,499 4,404 22,667 14,040

56,088 7,567 5,176 10,713 279 14,040

56,719 5,256 5,113 13,590 265 14,040

Total Admin & Program Delivery Exp.

87,348

98,226

93,863

94,983

294,511 -

306,720 -

320,268 -

294,774 -

381,859 -

404,946 -

414,131 -

389,757 -

Total Revenue

Expenditures Administrative and Program Delivery: Labor:

Program Expenses: Resident Services Utilities Maintenance Housing Assistance Payments NRHA Homebuyer Assistance General Expense Other Capital Expenditures Total Program/Operating Expenses Surplus(Deficit) From Operations

Depreciation (Not Included in Totals)

Actual Reserves (HAP) June 30, 2018 Actual Reserves (ADM) June 30, 2018

$ $

Projected Reserves (HAP) June 30, 2019 Projected Reserves (ADM) June 30, 2019

$ $

Projected Reserves (HAP) June 30, 2020 Projected Reserves (ADM) June 30, 2020

$ $

Provision For Reserves:

NRHA FY2019 Approved Budget

055

June 2019

PAGE INTENTIONALLY LEFT BLANK

NRHA FY2019 Approved Budget

056

June 2019

FY2020 Safe Harbor Fee Schedule - Housing Choice Voucher Management Fee

Section 8

Fee Rate (PUM)

$12.00

Month

Projected Leased Units

July Aug Sept Oct Nov Dec Jan Feb Mar Apr May June

3,383 3,417 3,444 3,476 3,506 3,530 3,611 3,640 3,660 3,668 3,692 3,724

NRHA FY2019 Approved Budget

NA $

847,685

40,596 41,004 41,328 41,712 42,072 42,360 43,332 43,680 43,920 44,016 44,304 44,688

25,373 25,628 25,830 26,070 26,295 26,475 27,083 27,300 27,450 27,510 27,690 27,930

NA $ NA NA NA NA NA NA NA NA NA NA NA

65,969 66,632 67,158 67,782 68,367 68,835 70,415 70,980 71,370 71,526 71,994 72,618

513,012

320,633

833,645

Total Fees

State Rental Assistance Program (SRAP)

Fee Rate (PUM) SRAP Program Total

$7.50

Asset Management Fee

Total

HCV Single Room Occupancy

Fee Rate (PUM) SRO Program Total

Bookeeping Fee

$12.00 $8,640

$7.50 $5,400

NA NA

$14,040

$0.00 $0

NA NA

057

June 2019

STATE RENTAL ASSISTANCE PROGRAM OVERVIEW

FUNDING METHODOLOGY

The State Rental Assistance Program (SRAP) serves individuals with intellectual and developmental disabilities, as defined by the Department of Justice, who want to live in integrated and independent housing.

SRAP is funded through the State General Fund and Affordable Housing Trust Fund. Behavioral Health and Developmental Services departments contract with Public Housing Authorities (PHAs) to administer the program to individuals with intellectual and developmental disabilities. The PHAs make the rental assistance payments to participating owners / landlords on behalf of the individuals participating in the program. The rental assistance payments cover the difference between a portion of the participantâ&#x20AC;&#x2122;s income (30% of their adjusted income) and the unit rent.

The program provides rental assistance to households that meet program eligibility criteria, e.g. households having the means to lease private market rental housing that meets their needs. Individuals can choose where they live, with whom they live and who supports them. Services and supports are provided through sources separate from their housing, including Medicaid waiver-funded homeand community-based services, natural supports, privately paid supports and other community resources.

NRHA FY2019 Approved Budget

PROGRAM INITIATIVES Provide individuals with intellectual and developmental disabilities stable and affordable housing in the private market.

058

June 2019

STATE RENTAL ASSISTANCE PROGRAM

Revenue: Tenant Revenue - Other

FY18 Actual

FY19 Approved Budget

FY19 Projected Actual

FY20 Approved Budget

HUD PHA Grants HUD PHA Grants (Administrative Fee)

533,531

625,111

18,700

29,047

Interest Income

46,220

648,504 26,943

477

Other Revenue (External Source)

Interproject Repayments

Earnings from Other Programs

Appropriations from Program Reserves

Appropriation of HCV HAP Reserves

185,733 -

552,287

654,158

232,430

675,447

Administration Resident Services Maintenance Program

14,619 -

19,252 -

26,614 -

19,706 -

Total Labor Other Administration Other (Interproject Fee for Services) Employee Benefits Management Fees

14,619 2,641 3,193 -

19,252 2,043 7,752 -

26,614 1,362 5,056 -

19,706 2,043 5,194 -

20,453

29,047

33,032

26,943

116,347 -

625,111 -

185,733 -

648,504 -

136,800 415,487

654,158 -

218,765 13,665

675,447 -

Total Revenue Expenditures Administrative and Program Delivery: Labor:

Total Admin & Program Delivery Exp. Program Expenses: Resident Services Utilities Maintenance Specialized Maintenance Housing Assistance Payments NRHA Homebuyer Assistance General Expense Interest Expense Equipment (Non-Expendable/Hardware) Capital Expenditures Total Program/Operating Expenses Surplus (Deficit) From Operations

Depreciation (Not Included in Totals) Provision For Reserves:

Actual Reserves (ADM) June 30, 2018

23,676

Actual Reserves (HAP) June 30, 2018

760,434

Projected Reserves (HAP) June 30, 2019

574,701

Projected Reserves (ADM) June 30, 2019

37,341

Projected Reserves (HAP) June 30, 2020

574,701

Projected Reserves (ADM) June 30, 2020

37,341

NRHA FY2019 Approved Budget

059

June 2019

RESIDENT SERVICES OVERVIEW

FUNDING METHODOLOGY

Hampton Roads Ventures (HRV) is a community development entity. Staffed by experienced community economic development professionals, HRV is extremely sensitive to the unique opportunities, challenges and constraints faced by underserved communities.

NRHA applications for funding from HRV are reviewed by a committee selected by NRHA’s Board of Commissioners.

Funds support Adult Workforce Development, Youth Services, Community Engagement, Special Projections Positions, Relocation Efforts, Training, and Community Improvements. The amounts may vary within and between the service categories, but actual expenditures are maintained within the $700,000 total budget.

PROGRAM INITIATIVES ♦ Workforce development. ♦ Community engagement. ♦ Community improvements. ♦ Youth services. ♦ Training.

NRHA FY2019 Approved Budget

060

June 2019

RESIDENT SERVICES FY18 Actual

Revenue:

Net Tenant Rental Revenue

Tenant Revenue - Other Appropriation from Own Reserve Other Revenue (External Source) Total Revenue

FY19 Approved Budget -

FY19 Projected Actual -

FY20 Approved Budget -

363,397

660,000

700,000

363,397

660,000

700,000

Expenditures Administrative and Program Delivery: Labor: Administration Resident Services Maintenance Program

Total Labor Other Administration Other (Interproject Fee for Services) Employee Benefits Management Fees (Interproject)

Total Admin & Program Delivery Exp.

Program Expenses: Resident Services Utilities Maintenance Specialized Maintenance Protective Services Equipment (Non Expendable/Hardware) Transfers to Other Projects Interproject Repayments or Advances Other Capital Expenditures

363,397 -

660,000 -

700,000 -

Total Program/Operating Expenses Surplus (Deficit) From Operations

363,397 -

660,000 -

700,000 -

Provision For Reserves: Actual Reserves June 30, 2018 Projected Reserves June 30, 2019 Projected Reserves June 30, 2020

NRHA FY2019 Approved Budget

$ $ $

061

June 2019

JOBS PLUS PILOT PROGRAM OVERVIEW

FUNDING METHODOLOGY

The purpose of the Jobs Plus Pilot Program is to develop locallybased approaches to increase earnings and advance employment outcomes for public housing residents.

The Consolidated and Further Continuing Appropriations Act of 2015 authorized funding for the Jobs Plus Pilot program. In 2016, HUD awarded NRHA a $2.7 million grant to establish a four-year Jobs Plus Pilot program to run from July 1, 2016 through September 30, 2020.

The program addresses poverty among public housing residents by incentivizing and enabling employment through earned income disregards for working families that allow eligible tenants to increase their income through employment without triggering rent increases. The program also provides resource services designed to support work.

PROGRAM INITIATIVES

Targeted to Young Terrace community residents, efforts to improve employment and earnings outcomes are achieved through work readiness, employer linkages, job placement, educational advancement, technology skills and financial literacy.

NRHA FY2019 Approved Budget

♦ Employment-related services. ♦ Financial incentives through the Jobs Plus Earned Income Disregard. ♦ Community support for work.

062

June 2019

JOBS PLUS PILOT PROGRAM

Revenue:

Net Tenant Rental Revenue

Approved Cumulative Budget $

Tenant Revenue - Other HUD PHA Grants Other Government Grants Interest Income Other Fees (Interproject) Appropriations from Program Reserves Total Revenue

FY20 Approved Annual Budget

2,700,000 -

Privately Managed Reserves

FY18 Cumulative Actual

FY19 Projected Cumulative Actual

2,700,000

1,394,021 1,394,021

2,125,000 2,125,000

575,000 377,965 952,965

Expenditures Administrative and Program Delivery: Labor: Administration

Resident Services

849,118

Maintenance Program Total Labor

536,430

679,999

92,116

849,118

536,430

679,999

Other Administration

51,254

95,283

104,740

Other (Interproject Fee for Services)

15,220

87,981

104,281

18,415

272,976

67,943

122,269

30,434

Employee Benefits Management Fees (Interproject)

92,116

1,188,568

787,637

1,011,289

140,965

Resident Services Utilities Maintenance Specialized Maintenance Protective Services General Expense Equipment (Non Expendable/Hardware) Transfers to Other Projects Interproject Repayments or Advances Other Capital Expenditures

1,511,432 -

606,384 -

1,113,711 -

812,000 -

Total Program/Operating Expenses Surplus (Deficit) From Operations

2,700,000 -

1,394,021 -

2,125,000 -

952,965 -

Total Admin & Program Delivery Exp.

Program Expenses:

Provision For Reserves: Actual Reserves June 30, 2018 Projected Reserves June 30, 2019 Projected Reserves June 30, 2020

NRHA FY2019 Approved Budget

$ $ $

063

June 2019

SECTION 5310 GRANT (formerly New Freedom) OVERVIEW

FUNDING METHODOLOGY

The Commonwealth of Virginia’s Department of Rails and Public Transportation (DRPT) administers the Federal Transit Administration (FTA) Section 5310 “Enhanced Mobility of Seniors and Individuals with Disabilities” Program as a designated recipient, with direct oversight from FTA, for the large urbanized area of Hampton Roads.

Funding awarded through a competitive grant process supports capital (including vehicles and equipment) and operating costs of transportation services and transportation alternatives beyond those required by the Americans with Disabilities Act of 1990. Section 5310 includes activities previously eligible under the Section 5317 New Freedom Program.

The Section 5310 grant provides financial assistance for transportation services planned, designed, and carried out to improve mobility for seniors and individuals with disabilities by removing barriers to transportation services and expanding transportation mobility options.

PROGRAM INITIATIVES ♦ Provide transportation services for residents with disabilities seeking employment.

The grant funds received by NRHA require a 10% match of local dollars.

♦ Engage residents with disabilities in training and employment activities.

In utilizing the grant funds, NRHA primarily offers services to residents who are seniors or individuals with disabilities as defined by the Americans with Disabilities Act of 1990.

NRHA FY2019 Approved Budget

♦ Provide transportation services for elderly residents to improve their quality of life.

064

June 2019

SECTION 5310 GRANT (formerly New Freedom)

Revenue:

Net Tenant Rental Revenue

Approved Cumulative Budget $

Tenant Revenue - Other HUD PHA Grants

FY20 Approved Annual Budget

449,388

Privately Managed Reserves

FY18 Cumulative Actual

FY19 Projected Cumulative Actual

240 -

328,669 -

418,179 -

449,388

240

328,669

418,179

Administration Resident Services Maintenance Program

298,921 -

201,851 -

242,864 -

Total Labor Other Administration Other (Interproject Fee for Services) Employee Benefits Management Fees (Interproject)

298,921 46,926 -

201,851 50,130 -

242,864 60,985 -

Total Admin & Program Delivery Exp.

345,847

251,981

303,849

Resident Services Utilities Maintenance Specialized Maintenance Protective Services Equipment (Non Expendable/Hardware) Transfers to Other Projects Interproject Repayments or Advances Other Capital Expenditures

103,541 -

240 -

76,688 -

114,330 -

Total Program/Operating Expenses Surplus (Deficit) From Operations

449,388 -

240 -

328,669 -

418,179 -

Total Revenue

Expenditures Administrative and Program Delivery: Labor:

Program Expenses:

Provision For Reserves: Actual Reserves June 30, 2018 Projected Reserves June 30, 2019 Projected Reserves June 30, 2020

$ $ $

*Management to develop a phase down plan to close out the grant.

NRHA FY2019 Approved Budget

065

June 2019

OUT OF SCHOOL YOUTH PROGRAM OVERVIEW

FUNDING METHODOLOGY

The Out of School Youth program, funded under the Workforce Innovation and Opportunity Act of 2014 (WIOA), helps out-ofschool youth get back on track academically while pursuing employer-driven vocational training that is linked to labor market demand.

Funding is provided through a competitive grant process administered by the Hampton Roads Workforce Council (formerly Opportunity Inc. of Hampton Roads), established as a sub-recipient pursuant to WIOA.

As defined by WIOA, out-of-school youth are between ages 16 to 24 who are not attending any school and who have one or more barriers to employment, such as young people who are homeless, are parenting, have disabilities or have a juvenile or criminal record.

PROGRAM INITIATIVES

The comprehensive program provides:

♦ Connect participants to on the job training opportunities.

♦ Vocational training;

♦ Connect participants to unsubsidized employment opportunities.

♦ Practical learning experiences through paid work experiences;

♦ Connect participants to educational programs.

♦ GED preparation; ♦ Postsecondary education exploration; ♦ Workforce preparation activities; and ♦ Case management services.

NRHA FY2019 Approved Budget

066

June 2019

OUT OF SCHOOL YOUTH PROGRAM FY18 Actual

Revenue:

Net Tenant Rental Revenue

Tenant Revenue - Other HUD PHA Grants

FY19 Approved Budget

FY20 Approved Budget

140,000

Privately Managed Reserves

FY19 Projected Actual

125,956 -

91,920 -

195,000 -

140,000

125,956

91,920

195,000

Administration Resident Services Maintenance Program

71,960 -

47,802 -

69,008 -

62,788 -

Total Labor Other Administration Other (Interproject Fee for Services) Employee Benefits Management Fees (Interproject)

71,960 20,135 7,626 -

47,802 24,405 -

69,008 7,563 -

62,788 10,507 -

Total Admin & Program Delivery Exp.

99,721

72,207

76,571

73,295

40,279 -

53,749 -

15,349 -

121,705 -

Total Program/Operating Expenses Surplus (Deficit) From Operations

140,000 -

125,956 -

91,920 -

195,000 -

Total Revenue

Expenditures Administrative and Program Delivery: Labor:

Program Expenses:

Provision For Reserves: Actual Reserves June 30, 2018 Projected Reserves June 30, 2019 Projected Reserves June 30, 2020

NRHA FY2019 Approved Budget

$ $ $

067

June 2019

ROSS FAMILY SELF-SUFFICIENCY GRANT OVERVIEW

FUNDING METHODOLOGY

HUD’s Public and Indian Housing Family Self-Sufficiency (FSS) Program helps participating families increase earned income and financial literacy, reduce or eliminate the need for welfare assistance and make progress toward achieving economic independence and self-sufficiency.

The funding stream for the Housing Choice Voucher FSS and Public Housing FSS programs were combined under the Consolidated Appropriations Act of 2014. All Public Housing Authorities receiving funding must administer the FSS program in accordance with HUD regulations and requirements as defined in 24 CFR 984 and must also comply with Public Housing and Housing Choice Voucher and/or ProjectBased Rental Assistance program requirements, notices and guidebooks, as applicable.

NRHA’s FSS Program encourages the development of local strategies to coordinate public and private resources with services provided through NRHA’s Public Housing and Housing Choice Voucher programs.

PROGRAM INITIATIVES ♦ Increase the number of residents participating in the program. ♦ Increase the number of participants earning a living wage. ♦ Increase household income. ♦ Increase the number of participants with an escrow account. ♦ Reduce the number of participants receiving welfare assistance.

NRHA FY2019 Approved Budget

068

June 2019

ROSS FAMILY SELF-SUFFICIENCY GRANT

Revenue:

Tenant Revenue - Other

HUD PHA Grants

FY18 Actual

FY19 Approved Budget

FY19 Projected Actual

FY20 Approved Budget

142,669

303,550

299,713

332,115

Other Government Grants

Interest Income

Appropriations from Other Programs

Appropriation of Reserves $

142,669

303,550

299,713

332,115

Administration Resident Services Maintenance Program

105,620 -

218,265 -

230,946 -

246,848 -

Total Labor Other Administration Other (Interproject Fee for Services) Employee Benefits Management Fees

105,620 37,049 -

218,265 85,285 -

230,946 68,767 -

246,848 85,267 -

Total Admin & Program Delivery Exp.

142,669

303,550

299,713

332,115

Total Revenue

Expenditures Administrative and Program Delivery: Labor:

Program Expenses: Resident Services Utilities Maintenance Specialized Maintenance Protective Services General Expense Equipment (Non Expendable/Hardware) Capital Expenditures

Total Program/Operating Expenses Surplus (Deficit) From Operations

$ $

Depreciation (Not Included in Totals)

Actual Reserves June 30, 2018 Projected Reserves June 30, 2019 Projected Reserves June 30, 2020

$ $ $

142,669 -

303,550 -

299,713 -

332,115 -

Provision For Reserves:

*Assuming grant award in FY20

NRHA FY2019 Approved Budget

069

June 2019

ROSS SERVICE COORDINATOR GRANT OVERVIEW

FUNDING METHODOLOGY

The Resident Opportunities and Self-Sufficiency (ROSS) Service Coordinator Program provides funds to hire and maintain Service Coordinators to assess the needs of the residents in conventional Public Housing or Indian Housing and coordinate available community resources to meet those needs.

The HUD Appropriations Act of 2010 provides ROSS SC with three-year grant funding to support the coordination of supportive services designed to help public housing families attain economic and housing self-sufficiency. There is a minimum 25% match requirement for this grant.

Services provided to participating families focus on: ♦ Increasing earned income; ♦ Making progress toward achieving economic independence and housing selfsufficiency;

PROGRAM INITIATIVES

♦ Reducing or eliminating the need for welfare assistance; and

♦ Improve resident access to career opportunities to increase earned income.

♦ Helping improve living conditions and enable elderly or disabled residents to gracefully age in place.

♦ Support residents achieve economic independence and housing selfsufficiency. ♦ Improve living conditions of the elderly and disabled residents, allowing them to gracefully age in place.

NRHA FY2019 Approved Budget

070

June 2019

ROSS SERVICE COORDINATOR GRANT

Revenue:

Tenant Revenue - Other

Approved Cumulative Budget $

HUD PHA Grants

492,000

FY18 Cumulative Actual 253,841

FY19 Projected Cumulative Actual 386,087

FY20 Approved Annual Budget 120,741

Other Government Grants

Interest Income

Appropriations from Other Programs

Appropriation of Reserves $

492,000

253,841

386,087

120,741

Administration Resident Services Maintenance Program

273,000 -

138,721 -

273,116 -

78,654 -

Total Labor Other Administration Other (Interproject Fee for Services) Employee Benefits Management Fees

273,000 147,000 -

138,721 4,435 58,185 -

273,116 4,435 108,536 -

78,654 1,100 40,987 -

Total Admin & Program Delivery Exp.

420,000

201,341

386,087

120,741

72,000 -

52,500 -

Total Program/Operating Expenses Surplus (Deficit) From Operations

$ $

492,000 -

253,841 -

Depreciation (Not Included in Totals)

Actual Reserves June 30, 2018 Projected Reserves June 30, 2019 Projected Reserves June 30, 2020

$ $ $

Total Revenue

Expenditures Administrative and Program Delivery: Labor:

Program Expenses: Resident Services Utilities Maintenance Specialized Maintenance Protective Services General Expense Equipment (Non Expendable/Hardware) Capital Expenditures

386,087 -

120,741 -

Provision For Reserves:

NRHA FY2019 Approved Budget

071

June 2019

RESIDENTIAL OPTIONS, INC. OVERVIEW

FUNDING METHODOLOGY

Residential Options, Inc. (ROI), a non-profit entity, was established in 1992 by concerned citizens in collaboration with the Norfolk Community Services Board to serve the residential needs of Norfolk Community Services Board clients.

Tenant payments for rent and other fees, in addition to subsidy from Norfolk Community Services Board and City of Norfolk grant funding make up total income for this project.

In order to improve the efficiency of its program, the board of ROI requested that Norfolk Redevelopment and Housing Authority (NRHA) assume management and control of ROI, including the operation of its housing portfolio to provide residential placement options for the clients of the Norfolk Community Services Board.

PROGRAM INITIATIVES ♦ Provide safe, affordable housing to Norfolk Community Services Board clients.

By a resolution adopted on December 8, 2016, the Board of Commissioners of NRHA, subject to City Council approval, authorized NRHA to assume management and control of ROI, its real estate assets, liabilities and remaining fund balances and to continue operating ROI’s existing housing portfolio.

NRHA FY2019 Approved Budget

♦ Asset management and ongoing maintenance.

072

June 2019

RESIDENTIAL OPTIONS, INC. COMMUNITIES SUMMARY BY COMMUNITY Revenue

Community Guy Avenue Hugo Street Fenner Grand Total

NRHA FY2019 Approved Budget

358,907 25,925 384,832

073

Expenditures 467,528 112,188 15,004 594,720

Net Surplus/ (Deficit) (108,621) (86,263) (15,004) (209,888)

June 2019

RESIDENTIAL OPTIONS, INC. (Guy Avenue) FY18 Actual

Revenue:

Net Tenant Rental Revenue

FY19 Approved Budget 143,647

66,479

63,851

850

18,808

1,017

HUD PHA Grants

Other Government Grants

Interest Income

Project Advances

42,200

Appropriations from Other Programs

134,150

33,408

Administration Resident Services Maintenance Program

883 -

Total Labor Other Administration Other (Interproject Fee for Services) Employee Benefits Management Fees

883 2,062 153 -

Total Admin & Program Delivery Exp.

Total Revenue

FY20 Approved Budget

33,333

Tenant Revenue - Other

Appropriation of Reserves

FY19 Projected Actual

240,000

560,847

240,030

292,080

1,428

1,959

42,000

108,621

368,745

467,528

6,929 3,350 -

6,389 -

36,492

10,279 183 2,448 17,643

6,389 3,178 3,798 30,618

3,098

36,492

30,553

43,983

24,431 11,678 10,735 12,075 -

282,200 750 65,235 13,379 33,500 32,000 27,884 41,601 32,000

282,200 13 49,445 272 36,185 32,000 11,185 41,601 32,000

297,200 250 57,160 24,500 2,834 41,601 -

Total Program/Operating Expenses Surplus (Deficit) From Operations

$ $

62,017 (28,609)

565,041 (4,194)

515,454 (146,709)

467,528 -

Depreciation (Not Included in Totals)

Actual Reserves June 30, 2018 Projected Reserves June 30, 2019 Projected Reserves June 30, 2020

$ $ $

Expenditures Administrative and Program Delivery: Labor:

Program Expenses: Rehabilitation Resident Services Utilities Maintenance Specialized Maintenance Protective Services General Expense Payment on Debt Capital Expenditures

Provision For Reserves:

NRHA FY2019 Approved Budget

074

June 2019

RESIDENTIAL OPTIONS, INC. (Hugo Street) FY18 Actual

Revenue:

Net Tenant Rental Revenue

Tenant Revenue - Other HUD PHA Grants

FY19 Approved Budget

FY19 Projected Actual

FY20 Approved Budget

11,557

Other Government Grants

36,390

25,925

Interest Income

335

Project Advances

60,000

Appropriations from Other Programs

86,263

Appropriation of Reserves

11,557

96,390

86,260

Administration Resident Services Maintenance Program

305 -

9,462 -

Total Labor Other Administration Other (Interproject Fee for Services) Employee Benefits Management Fees

305 713 53 -

105 4,051

9,462 1,312 4,784

Total Admin & Program Delivery Exp.

1,071

4,156

15,558

Utilities Maintenance Specialized Maintenance Interior Renovations Protective Services General Expense Payment on Debt Capital Expenditures

247 205 2,233 6,333 -

5,235 3,351 60,000 1,500 22,470 -

7,653 1,688 60,000 1,253 22,470 -

3,705 9,625 60,000 830 22,470 -

Total Program/Operating Expenses Surplus (Deficit) From Operations

$ $

10,089 1,468

92,556 3,834

97,220 (10,960)

112,188 -

Depreciation (Not Included in Totals)

Actual Reserves June 30, 2018 Projected Reserves June 30, 2019 Projected Reserves June 30, 2020

$ $ $

Total Revenue

112,188

Expenditures Administrative and Program Delivery: Labor:

Program Expenses:

Provision For Reserves:

NRHA FY2019 Approved Budget

075

June 2019

RESIDENTIAL OPTIONS, INC. (Fenner Street) FY18 Actual

Revenue:

Net Tenant Rental Revenue

FY19 Approved Budget

FY19 Projected Actual

FY20 Approved Budget

Tenant Revenue - Other

HUD PHA Grants

Other Government Grants

Interest Income

323

Appropriations from Other Programs

11,153

15,004

323

15,004

Appropriation of Reserves

11,153

Administration Resident Services Maintenance Program

Total Labor Other Administration Other (Interproject Fee for Services) Employee Benefits Management Fees

Total Admin & Program Delivery Exp.

829 2,131 1,724 1,744 -

11,153 -

240 379 79 12,813 -

955 2,000 896 11,153 -

Total Program/Operating Expenses Surplus (Deficit) From Operations

$ $

6,428 (6,428)

11,153 -

13,511 (13,188)

15,004 -

Depreciation (Not Included in Totals)

Actual Reserves June 30, 2018 Projected Reserves June 30, 2019 Projected Reserves June 30, 2020

$ $ $

Total Revenue

Expenditures Administrative and Program Delivery: Labor:

Program Expenses: Rehabilitation Resident Services Utilities Maintenance Specialized Maintenance Protective Services General Expense Interest Expense Bond Fees Client (New Loans) Payment on Debt Capital Expenditures

Provision For Reserves:

NRHA FY2019 Approved Budget

076

June 2019

PAGE INTENTIONALLY LEFT BLANK

NRHA FY2019 Approved Budget

077

June 2019

ST. PAUL’S AREA RELOCATION EFFORTS OVERVIEW

FUNDING METHODOLOGY

The transformation of the St. Paul’s Area requires the Tidewater Gardens, Young Terrace and Calvert Square public housing communities to be demolished for redevelopment.

Housing Opportunity Debt Forgiveness Funds derived from proceeds from the sale and/or resale of homeownership units under the previously administered Turnkey III Program will fund rental deposit loans to residents relocating from Young Terrace and Calvert Square. In compliance with 24 CFR 906.31(a), this use of such homeownership program proceeds relates to low-income housing and is in accordance with NRHA’s Public Housing Authority Annual Plan.

Relocation efforts are in place to provide “rental deposit loans” to residents moving to another unit. Rental deposits include security deposit and utility deposit.

NRHA will reimburse the Housing Opportunity Debt Forgiveness Fund upon the receipt of the “rental deposit loan” repayments.

The rental deposit loans will require no repayment for the first 12 months followed by a 13-month repayment plan based on the borrower’s monthly rent plus “rental deposit loan” repayment not exceeding 40% of the household’s adjusted monthly income.

PROGRAM INITIATIVES

The estimated average “rental deposit loan” is $1,375 per relocation.

♦ “Rental deposit loans” totaling $192,500 for the relocation of 140 Young Terrace residents projected for FY2020. ♦ “Rental deposit loans” totaling $96,250 for the relocation of 70 Calvert Square residents projected for FY2020.

NRHA FY2019 Approved Budget

078

June 2019

ST. PAUL'S AREA RELOCATION EFFORTS FY18 Actual

FY19 Approved Budget

FY19 Projected Actual

FY20 Approved Budget

HUD PHA Grants

Other Government Grants

Interest Income

Appropriations from Other Programs

Revenue:

Tenant Revenue - Other

Appropriation of Reserves

300,000

Administration Resident Services Maintenance Program

Total Labor Other Administration Other (Interproject Fee for Services) Employee Benefits Management Fees

Total Admin & Program Delivery Exp.

300,000 -

Total Program/Operating Expenses Surplus (Deficit) From Operations

$ $

300,000 -

Depreciation (Not Included in Totals)

Actual Reserves June 30, 2018 Projected Reserves June 30, 2019 Projected Reserves June 30, 2020

$ $ $

Total Revenue

300,000

Expenditures Administrative and Program Delivery: Labor:

Program Expenses: Resident Services Utilities Maintenance Relocation Protective Services General Expense Equipment (Non Expendable/Hardware) Capital Expenditures

Provision For Reserves:

NRHA FY2019 Approved Budget

079

June 2019

PAGE INTENTIONALLY LEFT BLANK

NRHA FY2019 Approved Budget

080

June 2019

PAGE INTENTIONALLY LEFT BLANK

NRHA FY2019 Approved Budget

081

June 2019

SUMMARY FY2020 DEVELOPMENT OVERVIEW

FY2020 DEVELOPMENT DIVISION Revenue for the Development Division totals $36,042,160 which is derived from a blend of various funding sources. There is a $214,195 shortfall projected in FY2020 for HomeNet, project advances and goodwill repairs. These shortfalls are recommended to be covered from reserves. Expenditures for the Division will focus on completing the 40 new single-family Homes at Bay Oaks Park located at 5th-7th Bay Streets in Ocean View as well as managing the redevelopment component of assisted-rental properties selected for the HUD Rental Assistance Demonstration program. The Development Division will continue programs that move first-time homebuyers to closing and target acquisition of blighted properties based on negotiations with willing sellers. The Capital Fund, which is a tool to improve aging public housing stock and infrastructure, has a budget of $8,252,314 to continue dwelling and community upgrades including lighting, porches, windows, site upgrades and appliance replacement. Privately-managed communities are managed by third party entities with NRHA oversight. Property management fees and operating expenses are covered through tenant rents. These properties produce net annual operating revenue that can be used for other NRHA programs. We anticipate using $2,861,531 in earnings to fund shortfalls of other Authority programs.

CHALLENGES Revenue sources continue to be more and more varied, requiring careful documentation and monitoring of work hours to ensure that funding programs are charged appropriately to meet targeted goals. The removal of blight remains a challenge and assembling large parcels of land for redevelopment has become increasing difficult. The Authorityâ&#x20AC;&#x2122;s redevelopment initiatives are currently focused on areas where there is a high degree of property controlled by the City of Norfolk, NRHA or other public institutions. Redevelopment initiatives also focus on the possible purchase of existing incomeproducing multi-family housing to provide the operating funds once provided by the City.

NRHA FY2019 Approved Budget

082

June 2019

FY2019 ACCOMPLISHMENTS ♦ Continued oversight on the East Beach Phase VII

♦ Acquired a blighted apartment building in

mixed-use development. Construction continues on mixed-use buildings and commercial sites.

Willoughby and 4 properties (2 acquired and 2 underway) in Spartan Village for a total cost of almost $800,000.

♦ Completed infrastructure at the new Homes at Bay

♦ Disposed of 28 properties with 20 in East Ocean View, six in East Beach and two other lot closings.

♦ Completed renovations on the 492 units in

Oaks in the 5th to 7th Bay Street development in Ocean View.

♦ Completed inspections of six new infill homes as well as continued progress inspections, review and final inspections on the 40 new homes at the Homes at Bay Oaks in Ocean View. All these homes are targeted for completion by the end of FY2020.

Merrimack Landing Apartments.

♦ Continued construction on five additional townhomes at 2800 Church Street which are expected to be completed in early FY2020.

♦ Prepared several RFPs for additional

♦ The Homes at Bay Oaks in the 5th to 7th Bay Street

development opportunities.

development is a single-family community featuring 40 new homes in East Ocean View. NRHA has awarded 39 of the 40 lots to 10 of its Builders Guild members. All 20 lots in the first phase have closed with 6 homes currently sold or under contract with buyers. Plan review for 19 lots in Phase 2 is underway with permitting and contract execution anticipated in late FY2019 and early FY2020.

♦ The Homebuyer Assistance Program projects 20 HOME-assisted real estate closings in FY2019 (14 accomplished and 6 under contract), utilizing over $900,000 in HOME funds.

♦ Three new construction single-family Beacon Light Community Housing Development Organization (CHDO) projects were in the planning stages during FY2019.

MAJOR GOALS ♦ Continue renovation efforts in the Diggs Town and Grandy Village communities. ♦ Continue new infill single-family home construction throughout NRHA’s redevelopment and conservation areas and designated City of Norfolk neighborhood plan areas.

♦ Continue working with the City of Norfolk on the development of the GEM Lot Disposition Pilot Program. ♦ Continue to provide homeownership assistance through first-time homebuyer subsidies as well as homebuyer credit repair, education and counseling.

♦ Provide a broader range of quality housing choices via the revitalization of Norfolk’s public housing communities through the HUD Rental Assistance Demonstration program which will involve collaboration with new and existing partners.

♦ Complete development plans for Moton Circle single -family homes. ♦ Examine repositioning options for Oakmont North and Park Terrace. ♦ Continue rehabilitation work planned for 555 East Main Street as we continue to lease available office space.

NRHA FY2019 Approved Budget

083

June 2019

PAGE INTENTIONALLY LEFT BLANK

NRHA FY2019 Approved Budget

084

June 2019

DEVELOPMENT PROGRAMS FISCAL YEAR 2020 APPROVED REVENUE AND EXPENDITURES Approved Revenue

FY2020 Amount

10,424,600 8,252,814 5,239,977 4,326,081

28.92% 22.90% 14.54% 12.00%

City of Norfolk General Fund

3,861,438

10.71%

Land Sale Proceeds

1,600,122

4.44%

HOME Program

1,278,608

3.55%

CDBG

1,156,894

3.21%

Privately Managed Reserves

835,710

2.32%

Proceeds from Notes, Loans and Bonds

653,118

1.81%

Park Terrace - HUD PHA Grants

540,062

1.50%

Bond Fees

299,520

0.83%

HOME Fees

229,203

0.64%

Housing Opportunity Reserves

43,545

0.12%

VHDA (HomeNet)

35,000

0.10%

GEM Lot Fees

20,000

0.06%

7,000

0.02%

Capital Improvement Program

Capital Grant Program - HUD PHA Grants Operating Receipts - Merrimack Landing Operating Receipts - Oakmont North

Rehabilitation Reserve Account Earnings Transferred to other programs from Merrimack and Oakmont Operating Receipts Total Revenue

$ $

(2,761,532) 36,042,160

-7.66% 100.00%

Amount

7,687,984 4,114,034 3,640,854 3,500,000 3,163,672 3,000,000 2,561,438 1,500,000 1,353,250 1,100,000 958,956 835,000 653,118 540,062 450,000 300,000 250,000 235,000 191,792 7,000 36,042,160

21.33% 11.41% 10.10% 9.71% 8.78% 8.32% 7.11% 4.16% 3.75% 3.05% 2.66% 2.32%

Approved Expenditures Capital Fund Program Administrative Support & Program Management Oakmont North Property Management Infrastructure Construction - Broad Creek (Moton Single Family) Development Merrimack Landing Property Management Transforming Public Housing Communities General Fund Program Acqusition to complete Wards Corner Development Site Improving East Ocean Viw - Acquistion & Demolition of Blight & Site Work Acquisition of the Hunton YMCA Homebuyer Assistance 5th-7th Bay Development Grandy VI Construction Park Terrace Property Management Acqusition & Demolition of Flood Prone Units in Spartan Village Dreamkeepers Academy Demolition Acquisition and Demolition of Blighted Fenner Street Property Acqusition & Demolition of Blight - Willoughby CHDO Projects Local Rehabilitation Initiatives Total Expenditures

NRHA FY2019 Approved Budget

085

1.81% 1.50% 1.25% 0.83% 0.69% 0.65% 0.53% 0.02% 100.00%

June 2019

CAPITAL FUND PROGRAM OVERVIEW

FUNDING METHODOLOGY

The primary objective of the Capital Fund Program is to provide assistance to NRHA in carrying out capital and management improvement activities in its public housing communities.

The Capital Fund is made available by formula distribution based on the number of public housing units, age of the buildings and geographic location.

PROGRAM INITIATIVES The Capital Fund will be utilized to assist with public housing neighborhood renovations and specific upgrades such as new roofs, windows and doors.

NRHA FY2019 Approved Budget

086

June 2019

CAPITAL FUND PROGRAM FY18 Actual

Revenue:

HUD PHA Grants

3,800,275

FY19 Approved Budget 10,651,955

FY19 Projected Actual 7,481,221

FY20 Approved Budget 7,821,049

Other Government Grants Other Fees for Service (External Source)

Other Revenue (External Source)

Administrative Fee (Interproject)

613,595

Appropriations from Other Programs Earnings from Other Programs Appropriation of (Admin project) Reserves

505,000

634,129

431,765

30,570

38,773

39,890

53,470

4,484,330

11,249,198

8,115,350

8,252,814

Administration Resident Services Maintenance Program

608,342 -

767,621 -

313,910 -

607,836 -

Total Labor Other Administration Other (Interproject Fee for Services) Employee Benefits Management Fees

608,342 23,424 61,605 249,650 756,372

767,621 53,707 65,859 122,011 -

313,910 39,843 46,106 113,688 120,582

607,836 36,362 101,044 222,572 -

Total Admin & Program Delivery Exp.

1,699,393

1,009,198

634,129

967,814

Total Revenue

Expenditures Administrative and Program Delivery: Labor:

Program Expenses: Resident Services Utilities Maintenance Specialized Maintenance

Equipment (Non Expendable/Hardware) Transfers to Other Projects Interproject Repayments or Advances Other Capital Expenditures Surplus (Deficit) From Operations

$ $

Appropriation for Other Programs Depreciation (Not Included in Totals)

Total Program/Operating Expenses

245,504 2,539,433

275,000 9,965,000

7,481,221

7,285,000

4,484,330

11,249,198

8,115,350

8,252,814

Actual Admin Reserves June 30, 2018

Projected Admin Reserves June 30, 2019

Projected Admin Reserves June 30, 2020

Provision For Reserves:

NRHA FY2019 Approved Budget

087

June 2019

PAGE INTENTIONALLY LEFT BLANK

NRHA FY2019 Approved Budget

088

June 2019

CAPITAL FUND PROGRAM

PLANNED DESIGN & CONSTUCTION WORK AND ADMINISTRATION FOR NRHA FY2020 (using multiple grant years)

NEW CONTRACT WORK

Job Description

Development Activities Site Work Storm Doors Exterior Doors Interior/Exterior Repairs; Lighting Windows Common Area Lights Lobby Flooring Design, Inspection, and Fees Program Delivery New Contract Work

Neighborhood

Estimated Cost

FY2020 $ Summer 2019 Fall 2019 " Summer 2020 " " " FY2020 " Subtotal $

500,000 610,000 450,000 310,000 3,500,000 350,000 30,000 35,000 1,500,000 536,049 7,821,049

Administration

431,765

Grand Total

8,252,814

NRHA FY2019 Approved Budget

Tide/Calvert/Young Grandy Phase VI - Ph1 Young Calvert Oakleaf Partrea/Hunter/Bobbitt Hunter Bobbitt Various Various

Start Date

089

June 2019

CAPITAL IMPROVEMENT PROGRAM OVERVIEW

FUNDING METHODOLOGY

The Capital Improvement Program (CIP) is a multi-year plan for capital expenditures to replace and expand the City of Norfolk’s infrastructure. The City uses CIP funds to develop infrastructure and provide support for redevelopment and conservation activities. This funding allows for a mixed-income, market rate approach that is considered essential in building sustainable healthy neighborhoods.

NRHA applies for funding through the City’s Funding Application Process.

PROGRAM INITIATIVES ♦ Design public infrastructure to support the development of new housing in Broad Creek. ♦ Provide support to the redevelopment of the St. Paul’s Area. ♦ Acquire and clear blighted properties in Spartan Village, Wards Corner, East Ocean View and Willoughby to support redevelopment initiatives.

NRHA FY2019 Approved Budget

090

June 2019

CAPITAL IMPROVEMENT PROGRAM FY18 Actual Revenues: Net Tenant Rental Revenue Tenant Revenue - Other HUD PHA Grants Other Government Grants Interest Income Proceeds from Notes, Loans and Bonds Proceeds from Property Sales Other Fees for Service (External Source) Other Revenue (External Source) Management Fees (Interproject) Interproject Repayments Appropriation of CIP Reserves

1,366,508 1,366,508

FY19 Approved Budget 5,872,117 5,872,117

FY19 Projected Actual 1,596,600 1,596,600

FY20 Approved Budget 10,424,600 10,424,600

Total Revenue Expenditures: Administrative and Program Delivery: Labor: Administration Resident Services Maintenance Program Total Labor Other Administration Employee Benefits Management Fee Total Admin & Program Delivery Exp. Program Expenses: Renewal Service Activity Relocation Demolition Site Improvements Disposition Construction Rehabilitation Other Total Program/Operating Expenses Surplus(Deficit) From Operations

Depreciation (Not Included in Totals) Provision For Reserves: Actual Reserves June 30, 2018 Projected Reserves June 30, 2019 Projected Reserves June 30, 2020

$ $ $

NRHA FY2019 Approved Budget

$ $

934,093 432,415 1,366,508 -

091

4,272,117 1,500,000 100,000 5,872,117 -

1,577,058 19,542 1,596,600 -

6,624,600 300,000 3,500,000 10,424,600 -

June 2019

COMMUNITY DEVELOPMENT BLOCK GRANT OVERVIEW

FUNDING METHODOLOGY

The primary objective of the Community Development Block Grants (CDBG)/Entitlement Grants program is to develop viable urban communities by providing decent housing and a suitable living environment as well as expand economic opportunities principally for persons of low and moderate income. This objective is achieved in two ways:

The City of Norfolk is a designated entitlement community that receives an annual allocation of funding from the U.S. Department of Housing and Urban Development (HUD). The amount awarded is determined by statutory formula, which uses several objective measures of community need.

1) Grantees may use funds only to assist eligible activities that meet one of the three national objectives of the program: •

Benefit low- and moderateincome persons;

•

Aid in the prevention or elimination of slums and blight; or

•

PROGRAM INITIATIVES ♦ The HomeNet Homeownership Center to provide credit repair, education and counseling to homebuyers.

Meet community development needs having a particular urgency.

♦ Acquisition of Hunton YMCA Recreational and Day Care Center to benefit at least 51 percent low- and moderate-income persons.

2) Grantees must spend at least 70 percent of awarded funds over a period of up to 3 years for activities that address the national objective of benefiting low- and moderate-income persons.

NRHA FY2019 Approved Budget

♦ Collaborate with HUD and the City of Norfolk to complete monitoring and compliance requirements for prior year CDBG activities.

092

June 2019

COMMUNITY DEVELOPMENT BLOCK GRANT FY18 Actual

Revenue:

Net Tenant Rental Revenue

FY19 Approved Budget

FY19 Projected Actual

FY20 Approved Budget

Tenant Revenue - Other

HUD PHA Grants

Other Government Grants

Other Fees (Interproject)

Appropriations from Other Programs

Appropriation of CDBG Reserves

Total Revenue

600,000

1,100,000

Expenditures Administrative and Program Delivery: Labor: Administration $ Resident Services Maintenance Program Total Labor $ Other Administration Employee Benefits Management Fee Total Admin & Program Delivery Exp. $ Program Expenses: Acquisition Relocation Demolition Site Improvements Disposition Rehabilitation Interest Expense Bond Fees Other Capital Expenditures Total Program/Operating Expenses $ Surplus(Deficit) From Operations $

100,000 100,000 100,000

500,000 600,000 -

Appropriation for Other Programs Depreciation (Not Included in Totals)

$ $

Actual Reserves June 30, 2018 Projected Reserves June 30, 2019 Projected Reserves June 30, 2020

$ $ $

Provision For Reserves:

NRHA FY2019 Approved Budget

093

1,100,000 1,100,000 -

June 2019

DEVELOPMENT ADMINISTRATION OVERVIEW

FUNDING METHODOLOGY

This fund pays for administrative support for Development Operations.

Funds in this account are accumulated via settlement and yearly fees on tax-exempt bond issuance and interest on investments.

PROGRAM INITIATIVES ♦ Receive fees associated with ongoing development initiatives and new activities reaching fruition in FY2020. ♦ Provide operating and program delivery support for the Community Development Division.

NRHA FY2019 Approved Budget

094

June 2019

DEVELOPMENT ADMINISTRATION FY18 Actual

FY19 Approved Budget

FY19 Projected Actual

FY20 Approved Budget

Revenues Net Tenant Rental Revenue

Tenant Revenue - Other

HUD PHA Grants

Other Government Grants

114,647

1,000,000

114,500

1,000,000

Interest Income

Proceeds from Notes, Loans and Bonds

Proceeds from Property Sales

Other Fees for Service Other Revenue (External Source) Management Fees (Interproject) Other Fees Privetly Managed Earnings

38,316

51,606

147,826

230,400

653,521

Appropriations from Reserves Total Revenue

600,000

464,724 299,331

1,000,000 714,744 174,434 319,520

84,515

177,887

1,954,310

2,258,908

1,764,055

2,208,698

963,078

990,919

874,501

1,052,861

Expenditures Administrative and Program Delivery: Labor: Administration Resident Services

Maintenance

Program

Total Labor Other Administration

963,078 $

Employee Benefits Management Fee Total Admin & Program Delivery Exp.

990,919

874,501

1,052,861

41,389

59,066

66,900

50,077

331,803

401,839

285,986

352,918

543,650

760,084

485,155

678,452

1,879,920

2,211,908

1,712,542

2,134,308

Program Expenses: -

Relocation

Demolition

Site Improvements

62,390

35,000

39,513

62,390

General Expense

Interest Expense

12,000

Client (New Loans)

Principal Payment on Debt

Equipment (Non Expendable/Hardware)

Acquisition

Disposition

Operating Transfer Out

Interproject Repayments or Advances Other Total Program/Operating Expenses

1,954,310

2,258,908

1,764,055

2,208,698

Surplus (Deficit) From Operations

Depreciation (Not Included in Totals)

Actual Reserves June 30, 2018

Projected Reserves June 30, 2019

Projected Reserves June 30, 2020

Provision For Reserves:

NRHA FY2019 Approved Budget

095

June 2019

EAST BEACH OVERVIEW

FUNDING METHODOLOGY

East Bea ch is a public/private partnership of NRHA, the City of Norfolk and East Beach Company, LLC with the goal of turning nearly 100 acres of once-blighted property in Ocean View into a waterfront village of nearly 700 residences, offices, retail spaces, walking paths, parks and a beach pavilion.

NRHA receives five percent of land-sales proceeds based on an agreement between NRHA and the developer.

PROGRAM INITIATIVES Support continued development of Phase VII of East Beach in the East Ocean View Redevelopment project area, including disposition contract oversight, design review and financial administration.

NRHA FY2019 Approved Budget

096

June 2019

EAST BEACH FY18 Actual

Revenue:

Net Tenant Rental Revenue

Tenant Revenue - Other Proceeds from Notes, Loans and Bonds Proceeds from Property Sales Operating Transfer (Interproject)

FY19 Projected Actual

FY20 Approved Budget

75,650 -

Other Revenue (External Source) Appropriation of East Beach Reserves Total Revenue

FY19 Approved Budget

122,500 -

66,800 -

313,250 -

75,650

122,500

66,800

313,250

10,554 10,554 3,561 5,710 19,825

23,990 23,990 6,271 11,851 42,112

12,647 12,647 3,889 5,555 22,091

22,540 22,540 7,968 10,180 40,688

Program Expenses: Acquisition $ Demolition Planning Disposition Rehabilitation General Expense Interest Expense Bond Fees Land Sale Proceeds to the City of Norfolk Principal Payment on Debt Operating Transfer Out Capital Expenditures Total Program/Operating Expenses $ Surplus (Deficit) From Operations $

9,690 29,515 46,135

4,500 46,612 75,888

4,928 27,019 39,781

9,690 50,378 262,872

Depreciation (Not Included in Totals)

Provision For Reserves: Actual Reserves June 30, 2018 Projected Reserves June 30, 2019 Projected Reserves June 30, 2020

NRHA FY2019 Approved Budget

$ $ $

126,756 -

097

166,537 -

429,409

June 2019

5TH to 7TH BAY DEVELOPMENT OVERVIEW

FUNDING METHODOLOGY

The original Master Plan for the 5th to 7th Bay Streets development dates from the early 2000s.

In addition to Capital Improvement Program funds, NRHA utilized its line of credit to fund infrastructure development costs. Proceeds from lot sales are utilized to repay the loan.

Discussions with community and city leadership resulted in the project being divided into two sections. The western side of 5th Bay Street became Bay Oaks Park and the eastern side of 5th to 7th Bay Streets was targeted for development into 40 single-family homes comprising the Homes at Bay Oaks.

PROGRAM INITIATIVES All homes in the 5th to 7th Bay Streets development are expected to be completed by the end of FY2020.

NRHA utilized the services of an engineering firm to produce a set of bid-ready construction documents detailing the infrastructure needed to support new single-family homes. Site work began in the summer of 2017 and was completed in late 2018. NRHA awarded 39 of the 40 single-family lots in the development to 10 of its Builders Guild members. Construction of the first 20 homes in Phase 1 began in the summer of 2018 with construction of the remaining 20 lots in Phase 2 beginning in early 2020.

NRHA FY2019 Approved Budget

098

June 2019

5TH TO 7TH BAY DEVELOPMENT FY18 Actual

Revenue:

Net Tenant Rental Revenue

FY19 Approved Budget

FY19 Projected Actual

FY20 Approved Budget

Tenant Revenue - Other

HUD PHA Grants

Other Government Grants

Interest Income

Proceeds from Notes, Loans and Bonds

2,630,086

452,750

486,586

604,163

1,558,000

Proceeds from Property Sales

Other Fees for Service (External Source)

Other Revenue (External Source)

Management Fees (Interproject)

Other Fees (Interproject)

Interproject Repayments

Appropriations from Other Programs

Appropriation of (this project) Reserves

Total Revenue

2,630,086

1,056,913

2,044,586

835,000

Expenditures Administrative and Program Delivery: Labor: Administration Resident Services Maintenance Program

Total Labor

Other Administration Other (Interproject Fee for Services) Employee Benefits Management Fees Total Admin & Program Delivery Exp.

Utilities Maintenance Specialized Maintenance Site Improvements

Program Expenses:

2,630,086

General Expense Interest Expense Bond Fees Client (New Loans) Principal Payment on Debt Equipment (Non Expendable/Hardware) Transfers to Other Projects * Interproject Repayments or Advances Principal Payment on Debt Capital Expenditures Total Program/Operating Expenses Surplus (Deficit) From Operations

$ $

2,630,086 -

1,056,913 1,056,913 -

543,720

130,000

1,500,866 -

705,000 -

2,044,586 -

835,000 -

Provision For Reserves: Actual Reserves June 30, 2018 Projected Reserves June 30, 2019 Projected Reserves June 30, 2020

NRHA FY2019 Approved Budget

$ $ $

099

June 2019

GENERAL FUND PROGRAM OVERVIEW

FUNDING METHODOLOGY

A contractual agreement between the City of Norfolk and NRHA provides funding for staffing, neighborhood initiatives and special projects.

NRHA applies for funding through the City’s Funding Application Process.

PROGRAM INITIATIVES ♦ Provide direct administrative support for the delivery of the Development Division’s programs and activities. ♦ Support the Economic Development Incentive Grant program to provide performance-based funding to private businesses that generate additional tax revenue for the City of Norfolk. ♦ In partnership with the City of Norfolk, provide office space funding support for various agencies. ♦ Maintain acquired properties and pursue disposition activities for new development that serves the objectives established for redevelopment and conservation project areas in Norfolk.

NRHA FY2019 Approved Budget

100

June 2019

GENERAL FUND PROGRAM FY18 Actual

Revenue:

Net Tenant Rental Revenue

Tenant Revenue - Other HUD PHA Grants

FY19 Projected Actual

FY20 Approved Budget

Other Government Grants

2,070,377

Interest Income Proceeds from Notes, Loans and Bonds Management Fees (Interproject) Other Fees (Interproject) Interproject Repayments Appropriation for Earnings Total Revenue

FY19 Approved Budget

3,393,548

3,859,768

2,849,438

12,000

3,405,548

3,871,768

2,861,438

2,070,377

Program Expenses: Acquisition Demolition Site Improvements Disposition Rehabilitation General Expense Interest Expense Other Total Program/Operating Expenses Surplus(Deficit) From Operations

$ $

277,462 1,792,915 2,070,377 -

312,000 3,093,548 3,405,548 -

312,000 3,559,768 3,871,768 -

312,000 2,549,438 2,861,438 -

Provision For Reserves: Actual Reserves June 30, 2018 Projected Reserves June 30, 2019 Projected Reserves June 30, 2020

NRHA FY2019 Approved Budget

$ $ $

101

June 2019

GRANDY VI OVERVIEW

PROGRAM INITIATIVES

Currently under construction with completion planned by FY 2020, Grandy Phase VI will result in an additional 70 residential units operating under the Section 8 Project Based Voucher Program.

Grandy Village has undergone multiple phases of renovation over the past several years being transformed from a property operating under the Section 9 Low Income Public Housing Program to one operating under the Section 8 Housing Choice Voucher/Project Based Voucher Program. At the start of FY2018, Grandy Village Phases IV and V, consisting of 291 units, were converted to a Rental Assistance Demonstration Project Based Voucher rental subsidy.

FUNDING METHODOLOGY Development costs for 70 units in Grandy Village VI total approximately $14.2 million.

Upon completion of the current Grandy Village VI development, the goal is to have all 361 units in the Grandy Community operating under a Project Based Voucher rental subsidy as follows:

The development is being constructed using a 9 percent Low Income Housing Tax Credit allocation which provides private equity investment that is leveraged with a mortgage loan that will be repaid from the propertyâ&#x20AC;&#x2122;s operating revenue.

NRHA FY2019 Approved Budget

Grandy Phase IV: 275 units Grandy Phase V: 16 units Grandy Phase VI: 70 units TOTAL: 361 units

102

June 2019

GRANDY VILLAGE VI FY18 Actual

Revenue: Net Tenant Rental Revenue

FY19 Approved Budget

FY19 Projected Actual

FY20 Approved Budget

Interest Income

Proceeds from Notes, Loans and Bonds

Proceeds from Property Sales

Other Fees for Service (External Source) Other Revenue (External Source)

Appropriations from Other Programs

Appropriation of (this project) Reserves

3,500,000 316,686 -

2,777,641 271,359 -

653,118 226,047 -

3,816,686

3,049,000

879,165

Administration Resident Services Maintenance Program

182,285 -

159,252 -

125,304 -

Total Labor

182,285

159,252

125,304

44,355 90,046

54,351 57,756

44,151 56,592

Total Revenue

Expenditures Administrative and Program Delivery: Labor:

Other Administration Other (Interproject Fee for Services) Employee Benefits Management Fees Total Admin & Program Delivery Exp.

316,686

271,359

226,047

Utilities Maintenance Specialized Maintenance Site Improvements

3,500,000

2,777,641

653,118

Program Expenses:

General Expense Interproject Repayments or Advances Other Capital Expenditures Total Program/Operating Expenses Surplus (Deficit) From Operations

$ $

$ $ $

3,816,686 -

3,049,000 -

879,165 -

Provision For Reserves: Actual Reserves June 30, 2018 Projected Reserves June 30, 2019 Projected Reserves June 30, 2020

NRHA FY2019 Approved Budget

103

June 2019

HOME INVESTMENT PARTNERSHIP PROGRAM OVERVIEW

FUNDING METHODOLOGY

The HOME Investment Partnership (HOME) Program objectives include:

The HOME formula, developed by HUD, spreads the allocation geographically to reflect different types of housing need. HOME funds are split, allocating sixty percent to units of general local government and forty percent to states.

♦ Expanding the supply of decent and affordable housing for very lowand low-income citizens; ♦ Strengthening the abilities of state and local governments to design and implement strategies for achieving adequate supplies of decent and affordable housing

The City of Norfolk is the grantee and awards HOME funds to NRHA as a subrecipient.

♦ Providing financial and technical assistance to participating jurisdictions including the development of model programs for affordable low-income housing; and ♦ Extending and strengthening partnerships among all levels of government and the private sector, including for-profit and non-profit organizations, in the production and operation of affordable housing.

PROGRAM INITIATIVES

NRHA utilizes HOME funds to assist eligible first-time homebuyers with down payment and closing costs assistance in the form of a forgivable, no interest and no monthly payment “soft second” mortgage loan with a principal residence requirement, affordability period, forgiveness term, and recapture/refinance restrictions.

♦ Utilizing the projected FY2020 Community Housing Development Organization (CHDO) set-aside allocation, develop two singlefamily new construction homes to be sold to two eligible first-time homebuyers.

NRHA FY2019 Approved Budget

♦ Utilizing the projected FY2020 Homebuyer Assistance allocation, provide down payment and closing costs assistance for up to 23 eligible first-time homebuyers.

104

June 2019

HOME INVESTMENT PARTNERSHIP PROGRAM FY18 Actual

Revenue:

Net Tenant Rental Revenue

Tenant Revenue - Other HUD PHA Grants

FY19 Approved Budget

FY19 Projected Actual

FY20 Approved Budget

1,411,868

997,293

878,788

1,278,608

Other Government Grants

Interest Income

Proceeds from Notes, Loans and Bonds

Proceeds from Property Sales

Other Revenue (External Source)

Management Fees (Interproject)

Other Fees (Interproject)

Interproject Repayments

Appropriations from Other Programs

Appropriation of HOME Reserves

Total Revenue

1,411,868

997,293

878,788

1,278,608

47,807 47,807 6,410 12,397 759 67,374

88,843 88,843 5,000 36,429 43,887 174,159

110,175 110,175 3,815 29,120 40,179 183,289

92,401 92,401 5,000 29,280 1,179 127,860

1,182,040 162,000 1,411,413 -

685,945 137,189 997,293 -

695,499 878,788 -

958,956 191,792 1,278,608 -

Expenditures Administrative and Program Delivery: Labor: Administration Resident Services Maintenance Program Total Labor Other Administration Employee Benefits Management Fee Total Admin & Program Delivery Exp.

Program Expenses: Acquisition Site Improvements Disposition Rehabilitation NRHA Homebuyer Assistance CHDO Projects Other Total Program/Operating Expenses Surplus (Deficit) From Operations

$ $

Depreciation (Not Included in Totals)

$ $ $

Provision For Reserves: Actual Reserves June 30, 2018 Projected Reserves June 30, 2019 Projected Reserves June 30, 2020

NRHA FY2019 Approved Budget

105

June 2019

HOMENET HOMEOWNERSHIP CENTER OVERVIEW

FUNDING METHODOLOGY

The HomeNet Homeownership Center provides a “one-stop shop” for first-time homebuyers.

NRHA applies for grant funding through the City of Norfolk’s Funding Application Process, HUD Housing Counseling and the Virginia Housing Development Authority.

Services include: ♦ Development of individualized plans for overcoming homeownership obstacles; ♦ Comprehensive credit counseling, credit clinics and credit repair;

PROGRAM INITIATIVES

♦ Financial literacy including information on developing a healthy budget;

♦ Assist 30 clients to achieve first-time homeownership.

♦ A 16-month Homebuyer’s Club offering classes for first-time homebuyers and residents;

♦ Provide pre-purchase counseling, credit repair and financial counseling services to 350 clients.

♦ VHDA Homeownership Education Class open to the public.

♦ Increase client savings by 40%. ♦ Increase client credit scores by 40%.

♦ Referrals to qualified lenders, realtors and attorneys; and

♦ Enroll 25 residents into the Homebuyers Club classes.

♦ Post-purchase counseling. Qualifying first-time homebuyers may receive up to $40,000 via NRHA’s Homebuyer Assistance Program towards a home purchase within the City of Norfolk; and up to $20,000 via the Homeward Norfolk Program towards a home purchase in the Oakdale Farms, Ingleside and Monticello Village neighborhoods.

NRHA FY2019 Approved Budget

♦ Enroll 240 potential first-time homebuyers into the VHDA homeownership class. ♦ Explore strategies and options to increase outside funding support for continued homeownership services.

106

June 2019

HOMENET HOMEOWNERSHIP CENTER FY18 Actual

Revenue:

Net Tenant Rental Revenue

Tenant Revenue - Other HUD PHA Grants Other Government Grants Interest Income Proceeds from Notes, Loans and Bonds Proceeds from Property Sales Other Revenue (External Source) Management Fees (Interproject) Other Fees (Interproject) Earnings from Other Programs Appropriations from Other Programs Appropriation of HomeNet Reserves Total Revenue

FY19 Approved Budget

FY19 Projected Actual

FY20 Approved Budget

65,882

49,178

56,894

58,003

110,235

73,000

89,769

43,545 -

167,430

202,958

165,723

190,208

108,671 108,671 20,378 29,995 8,386 167,430

46,016 46,016 126,872 17,471 12,599 202,958

118,800 118,800 12,228 31,761 2,934 165,723

47,749 47,749 106,055 24,507 11,897 190,208

167,430 -

202,958 -

165,723 -

190,208 -

Program Expenses: Acquisition Relocation Demolition Site Improvements Disposition Rehabilitation Total Program/Operating Expenses Surplus (Deficit) From Operations

$ $

Depreciation (Not Included in Totals) $

Provision For Reserves: Actual Reserves June 30, 2018 Projected Reserves June 30, 2019 Projected Reserves June 30, 2020

NRHA FY2019 Approved Budget

$ $ $

107

June 2019

MERRIMACK LANDING OPERATIONS OVERVIEW

FUNDING METHODOLOGY

Merrimack Landing is a 492-unit conventional multi-family housing community built in 1941 on 56 acres providing below market rate rental housing.

Tenant payments for rent, utilities and fees make up the total income for the Merrimack Landing Apartments.

The property is privately managed by Lawson Realty. Property management includes, but is not limited to: unit leasing, unit turnover, deposit and rent collection, lease enforcement, full range maintenance responsibilities, provide and maintain curb appeal, financial management responsibilities, and submission of required monthly reports.

PROGRAM INITIATIVES â&#x2122;Ś Continue to provide below market rate rental housing. â&#x2122;Ś Utilize project savings for additional improvements including community building enhancements and site amenities, such as playground equipment.

The final phase of the comprehensive renovation project was completed in October 2018; and associated sewer and infrastructure repairs were also completed in the fall of 2018. A job cost report from Lawson Realty dated 05/01/2019 reports a total renovation cost of $22,117,516.

NRHA FY2019 Approved Budget

108

June 2019

MERRIMACK LANDING OPERATIONS FY18 Actual

Revenue:

Net Tenant Rental Revenue

3,420,807

Tenant Revenue - Other HUD PHA Grants

Other Government Grants Interest Income Proceeds from Notes, Loans and Bonds

442,737

Appropriation of (this project) Reserves Total Revenue

FY19 Projected Actual

FY20 Approved Budget

3,991,022

4,272,984

4,712,723

456,888 -

519,924 -

526,786 -

423

354

448

468

FY19 Approved Budget

3,863,967

4,448,264

4,793,356

5,239,977

Expenditures Administrative and Program Delivery: Labor: Administration Resident Services Maintenance Program

Total Labor

Other Administration Other (Interproject Fee for Services) Employee Benefits Management Fees

603,935 177,600

636,652 126,763 140,000

864,624 129,530

708,209 140,000

Total Admin & Program Delivery Exp.

781,535

903,415

994,154

848,209

Utilities Maintenance Specialized Maintenance Protective Services

326,815 900,807 72,761

396,888 970,221 69,600

363,641 903,591 69,506

332,998 836,796 69,600

59,580 362,788 45,631 1,304

74,204 907,692 33,825 25,000

49,152 938,752 33,825 8,889

58,199 863,401 154,469

Program Expenses:

General Expense Interest Expense Relocation Expenses Client (New Loans) Principal Payment on Debt Equipment (Non Expendable/Hardware) Transfers to Other Projects * Interproject Transfer Other Capital Expenditures Total Program/Operating Expenses

2,551,221

3,380,844

3,361,510

3,163,672

Surplus (Deficit) From Operations *

1,312,746

1,067,420

1,431,846

2,076,305

Provision For Reserves: Actual Reserves June 30, 2018 Projected Reserves June 30, 2019 Projected Reserves June 30, 2020

$ $ $

* Surplus is considered current year earnings to be utilized for other program initative funding gaps

NRHA FY2019 Approved Budget

109

June 2019

OAKMONT NORTH OPERATIONS OVERVIEW

FUNDING METHODOLOGY

Oakmont North is a 408-unit multifamily housing community built in 1971 on 21 acres providing below market rate rental housing.

Tenant payments for rent, utilities and other fees make up the total income for the Oakmont North Apartments.

PROGRAM INITIATIVES ♦ Oakmont North was included in the Portfolio Needs Assessment (PNA) of all NRHA’s rental communities that was conducted by the Authority’s Housing Operations Division. A review of the PNA study for Oakmont North will be used in determining long range plans for the community.

Capital improvements for the Oakmont North Family Investment Center are complete.

NRHA FY2019 Approved Budget

♦ The Oakmont North site includes property that could support the development of additional affordable rental housing units. NRHA continues to pursue community support for this effort.

110

June 2019

OAKMONT NORTH OPERATIONS FY18 Actual

Revenue:

Net Tenant Rental Revenue

Tenant Revenue - Other

FY19 Approved Budget

FY19 Projected Actual

FY20 Approved Budget

3,876,205

4,025,197

3,959,257

3,955,549

251,790

237,868

276,037

368,504

HUD PHA Grants

Other Government Grants

1,998

1,320

1,927

2,028

Proceeds from Notes, Loans and Bonds

Other Revenue (External Source)

Interest Income

Total Revenue

4,129,993

4,264,385

4,237,221

4,326,081

Expenditures Administrative and Program Delivery: Labor: Administration Resident Services Maintenance Program

Total Labor Other Administration Other (Interproject Fee for Services) Employee Benefits Management Fees

660,155 125,004

628,416 125,000

656,731 119,397

677,210 125,000

Total Admin & Program Delivery Exp.

785,159

753,416

776,128

802,210

Program Expenses: Resident Services

Utilities Maintenance Protective Services

452,052 976,904 43,935

473,581 1,166,312 43,800

511,320 1,076,576 62,405

513,353 1,238,808 65,000

General Expense Interest Expense Bond Fees Principal Payment on Debt Equipment (Non Expendable/Hardware) Other Capital Expenditures

126,036 11,940 15,301 285,000 227,157

182,606 17,795 15,058 300,000 536,110

118,114 11,983 23,314 300,000 473,433

128,352 15,268 32,853 300,000 545,010

Total Program/Operating Expenses

2,923,484

3,488,678

3,353,273

3,640,854

Surplus (Deficit) From Operations *

1,206,509

775,707

883,948

685,227

Provision For Reserves: $ Actual Reserves June 30, 2018 $ Projected Reserves June 30, 2019 $ Projected Reserves June 30, 2020 * Surplus is considered current year earnings to be utilized for other program initative funding gaps

NRHA FY2019 Approved Budget

111

June 2019

PARK TERRACE OPERATIONS OVERVIEW

FUNDING METHODOLOGY

Park Terrace is an 81-unit community on 5 acres offering market-rate units as well as Housing Choice Voucher units that provide assisted-rental support to extremely-low and moderately-low income families.

Tenant payments for rent, utilities and other fees, in addition to a subsidy from HUD, comprise the total income for this project.

The property is privately managed by S. L. Nusbaum. Property management includes, but is not limited to: unit leasing, unit turnover, deposit and rent collection, lease enforcement, full range maintenance responsibilities, provide and maintain curb appeal, financial management responsibilities, and submission of required monthly reports.

PROGRAM INITIATIVES ♦ Long term planning for Park Terrace is included in the Portfolio Needs Assessment. ♦ Since the Housing Assistance Payment contract for Park Terrace expires August 31, 2019, to ensure all existing Park Terrace residents in compliance with their leases are able to remain in Park Terrace, NRHA obtained 81 tenant-based housing choice vouchers for their use through the Housing Choice Voucher Program. ♦ During FY2020, NRHA will continue to evaluate improvement needs for Park Terrace in order to develop a renovation plan.

NRHA FY2019 Approved Budget

112

June 2019

PARK TERRACE OPERATIONS FY18 Actual

Revenue:

Net Tenant Rental Revenue

Tenant Revenue - Other

FY19 Approved Budget

204,855 14,124

HUD PHA Grants

361,103

Other Government Grants

Appropriation of Park Terrace Reserves Total Revenue

325,848 -

Interest Income Other Revenue (External Source)

190,757

FY19 Projected Actual

FY20 Approved Budget

321,204

526,622

56,327

13,440

185,063 -

580,146

516,605

562,617

540,062

Expenditures Administrative and Program Delivery: Labor: Administration Resident Services Maintenance Program

Total Labor Other Administration Other (Interproject Fee for Services) Employee Benefits Management Fees

125,390 10,029

129,910 15,500

149,287 28,207

135,497 30,885

Total Admin & Program Delivery Exp.

135,419

145,410

177,494

166,382

79,830 134,617 75 -

82,640 161,884 7,200 -

88,847 198,738 8,533 -

88,200 162,780 -

40,770 26 9,793

66,019 5,052 48,400

10,715 22,305

59,000 1,000 62,700

400,530 179,616

516,605 -

506,632 55,985

540,062 -

Program Expenses: Utilities Maintenance Protective Services Housing Assistance Payments PILOT General Expense Interest Expense Bond Fees Principal Payment on Debt Equipment (Non Expendable/Hardware) Capital Expenditures

Total Program/Operating Expenses Surplus (Deficit) From Operations

Depreciation (Not Included in Totals)

Actual Reserves June 30, 2018 Projected Reserves June 30, 2019 Projected Reserves June 30, 2020

$ $ $

Provision For Reserves:

NRHA FY2019 Approved Budget

113

June 2019

PAGE INTENTIONALLY LEFT BLANK

NRHA FY2019 Approved Budget

114

June 2019

FY2020 Fee Schedule - Privately Managed Properties Privately Managed Units

# of Units

Management Fee

Bookeeping Fee

Asset Management Fee

$5.00

Fee Rate (PUM) Merrimack*

492

Oakmont*

408

Park Terrace** Privately Managed Totals

110,480

100,520

88 $

9,120 220,120 $

29,520 24,480 54,000

Total Fees

140,000 125,000

9,120 274,120

*Flat Fee. **Based on a percentage of Gross Rents.

NRHA FY2019 Approved Budget

115

June 2019

REHABILITATION RESERVE ACCOUNT OVERVIEW

FUNDING METHODOLOGY

At this time, the only income booked to this Rehabilitation Reserve Account (RERA) is from repayments from a residential program once offered and funded by the Department of Defense and administered by NRHA.

Growth in this account is from interest income on investments. Use of program income is left to the discretion of NRHA. Cash is advanced to cover rehabilitation construction draws and down payment and closing cost assistance until Community Development (CD), Home Investment Partnerships Program (HOME) or Community Investment Program (CIP) funding is received from the City of Norfolk.

PROGRAM INITIATIVES Provide funding to address quality and customer service issues related to various neighborhood revitalization activities.

NRHA FY2019 Approved Budget

116

June 2019

REHABILITATION RESERVE ACCOUNT

Revenue:

Net Tenant Rental Revenue

Tenant Revenue - Other HUD PHA Grants Other Fees for Service (External Source) Other Income Management Fees (Interproject) Other Fees (Interproject) Interproject Repayments Appropriations from Other Programs Appropriation of Rehabilitation Reserves Total Revenue

FY18 Actual

FY19 Approved Budget

FY19 Projected Actual

FY20 Approved Budget

300

450

7,000

8,672

7,000

300

7,000

9,122

7,000

7,000 7,000 -

9,122 9,122 -

7,000 7,000 -

Expenditures

Administrative and Program Delivery: Labor: Administration $ Resident Services Maintenance Program Total Labor $ Other Administration Employee Benefits Management Fee Total Admin & Program Delivery Exp.

Program Expenses: Acquisition Relocation Demolition Site Improvements Disposition Housing Assistance Payments NRHA Homebuyer Assistance General Expense Operating Transfer* Capital Expenditures Total Program/Operating Expenses Surplus (Deficit) From Operations

$ $

Appropriation for Other Programs

Actual Reserves June 30, 2018 Projected Reserves June 30, 2019 Projected Reserves June 30, 2020

$ $ $

22,035 -

13,363 -

6,363

Provision For Reserves:

NRHA FY2019 Approved Budget

117

June 2019

PAGE INTENTIONALLY LEFT BLANK

NRHA FY2019 Approved Budget

118

June 2019

FEDERAL, LOCAL AND OTHER SOURCES AVAILABLE REVENUE FOR FY2020 (All Program Years) Projected Carryover FY20

Description CDBG Program Rehabilitation NRHA HomeNet Project Improvements Total CDBG Program HOME Investment Partnership Program CHDO NRHA Admin NRHA Homeownership Total HOME Program Neighborhood Revitalization (CIP) Acquisition Homebuyer Assistance Site Clearance Renewal Services Activities Redevelopment Activity Rehabilitation All Purpose Project Improvements/A&E Total CIP Program General Fund Economic Development Performance Grants Disposition Monroe Building Rental Supplement Administrative Support Total General Fund Other Program Funding Land Proceeds East Beach Land Proceeds 5th to7th Bay Rehabilitation Reserve Account Housing Opportunity Funding-HomeNet Home Fees Appropriation Capital Fund Bond Fees Gem Lot VHDA Total Other Program Funding Capital Fund & Privately Managed Grandy VI Merrimack Landing Operations Oakmont Operations Park Terrace Total Capital Fund and Privately Managed

Total NRHA

NRHA FY2019 Approved Budget

Approved Budget FY20

364,487 92,461 456,948

$ $

493,684 2,000,000 12,184 16,976 1,355,375 9,757,982

$ $

$ 10,214,930 119

$ $

5,179,763 700,000

$ $

Total Available FY20

1,100,000 56,894 1,156,894

191,792 127,860 958,956 1,278,608

$ $

1,464,487 56,894 92,461 1,613,842 191,792 127,860 958,956 1,278,608 5,179,763 700,000

300,000 6,624,600 714,744 3,500,000 11,139,344

793,684 6,624,600 2,000,000 12,184 731,720 4,855,375 20,897,326

2,449,271 300,000 112,167 1,000,000 3,861,438

$ $ $ $ $

2,449,271 300,000 112,167 1,000,000 3,861,438

50,378 835,000 7,000 43,545 229,203 835,710 8,252,814 299,520 20,000 35,000 10,608,170

653,118 3,163,672 3,640,854 540,062 7,997,706

$ 36,042,160

653,118 3,163,672 3,640,854 540,062 7,997,706

$ 46,257,090

June 2019

PAGE INTENTIONALLY LEFT BLANK

NRHA FY2019 Approved Budget

120

June 2019

PAGE INTENTIONALLY LEFT BLANK

NRHA FY2019 Approved Budget

121

June 2019

FY2020 OTHER PROGRAMS OVERVIEW

SUMMARY FY2020 OTHER PROGRAMS FY2020 expenditure needs for “Other Programs” total $6,447,284 and are comprised of eleven unique programs which are not contained in either of the Authority’s two programmatic divisions. The revenue sources supporting these activities are derived from program revenue, a program’s own reserves, earnings from privately managed properties or fee for service agreements. Expenditures and funding gaps included in “Other Programs” are displayed below:

Programs

Amount

NRHA Rental Project

53,833

555 E Main Street Operations

1,683,972

Broad Creek Village Center

60,000

COCC Administration

304,307

COCC Specialized Maintenance

985,105

Core Business Service

820,390

Communications and Government Relations

439,366

Disposition Support

17,795

Executive Director Contingency Fund

410,250

Hampton Roads Ventures

17,956

Project Development Financing

1,654,310

Total

6,447,284

NRHA FY2019 Approved Budget

122

June 2019

PROGRAM DESCRIPTIONS NRHA Rent Project: Receives and disburses office rent payments from NRHA projects for space leased at 555 E. Main Street. Supports NRHA specific maintenance and janitorial services. 555 E Main Street Operations: Funds the operating costs and debt service of 555 E. Main Street. Broad Creek Village: Includes the former sites of the Moton and Roberts Village public housing communities that have been cleared and are awaiting development. COCC Administration: Reserves from the Central Office account are used to offset shortfalls from charging management fees as a target reduction measure in select programs. COCC Specialized Maintenance: A collective group of specialized trades that perform maintenance services primarily to the public housing communities. Core Business Service: A project to expense certain services that are determined to be an administrative burden to be equitably distributed to the programs including information technology, parking, the employee assistance program and telephone lines. Communications and Government Relations: The department oversees development, planning, implementation and integration of all communications and marketing strategies in support of NRHAâ&#x20AC;&#x2122;s initiatives and coordinates liaison activities for legislative matters. Disposition Support: NRHA provides maintenance of cleared land and temporary operations support to properties purchased and owned by NRHA. Executive Director Contingency Fund: Funds activities that support internal and external initiatives that are otherwise ineligible under federal programs. Hampton Roads Ventures: NRHA provides management and services to Hampton Roads Ventures, LLC, including oversight management for loan servicing, asset management, compliance and reporting. Project Development Financing: Dedicated to developing financial strategies and coordinating efforts to provide mixed-financing initiatives in the renovation, redevelopment or construction of housing.

NRHA FY2019 Approved Budget

123

June 2019

NRHA RENT PROJECT OVERVIEW

FUNDING METHODOLOGY

The NRHA Rent Project receives and disburses office rent payments from NRHA projects for space leased at 555 E. Main Street. The project also supports NRHA specific maintenance and janitorial services.

This project is funded from rents charged to the programs based on square foot usage.

PROGRAM INITIATIVES NRHAâ&#x20AC;&#x2122;s administrative offices are located at 555 E. Main Street. The funding gap for FY2020 is $53,833 and will be funded from Privately Managed Earnings.

NRHA FY2019 Approved Budget

124

June 2019

NRHA RENT PROJECT FY18 Actual

Revenue:

Net Tenant Rental Revenue

806,816

FY19 Approved Budget -

FY19 Projected Actual 711,272

FY20 Approved Budget 711,272

Tenant Revenue - Other

Other Fees (Interproject)

Appropriation of Earnings

17,544

62,464

53,833

824,360

773,736

765,105

Administration Resident Services Maintenance Program

25,543 -

26,787 -

28,078 -

Total Labor Other Administration Other (Interproject Fee for Services) Employee Benefits Management Fees (Interproject) Management Fees (External)

25,543 704 15,513 -

26,787 5,069 13,315 -

28,078 6,077 13,178 -

Total Admin & Program Delivery Exp.

41,760

45,171

47,333

818 1,530 780,252 -

2,857 725,708 -

5,000 1,500 711,272 -

824,360 -

773,736 -

765,105 -

Total Revenue

Expenditures Administrative and Program Delivery: Labor:

Program Expenses: Planning Utilities Maintenance Specialized Maintenance Protective Services Note Payable Interest Expense Real Estate Taxes General Expense Other (Rent) Capital Expenditures

Total Program/Operating Expenses Surplus (Deficit) From Operations

Provision For Reserves: Actual Reserves June 30, 2018 Projected Reserves June 30, 2019 Projected Reserves June 30, 2020

$ $ $

*FY19 Approved Budget included in 555 E. Main Steet Operations.

NRHA FY2019 Approved Budget

125

June 2019

555 EAST MAIN STREET OPERATIONS OVERVIEW

FUNDING METHODOLOGY

The purpose of this project is to cover the operating costs and debt service for the office building located at 555 East Main Street.

This project is funded from 555 East Main Streetâ&#x20AC;&#x2122;s tenant revenue. Rents are based on square footage usage.

PROGRAM INITIATIVES Fund the operating costs and debt service of the 555 East Main Street office building project.

NRHA FY2019 Approved Budget

126

June 2019

555 EAST MAIN STREET OPERATIONS FY18 Actual

Revenue:

Net Tenant Rental Revenue

Tenant Revenue - Other

FY19 Approved Budget

FY19 Projected Actual

FY20 Approved Budget

692,902

1,891,618

1,821,522

1,925,014

2,835

157,445

201,776

218,937

Proceeds from Notes, Loans and Bonds

Proceeds from Property Sales

40,690

Other Fees (Interproject) Appropriation of Reserves Total Revenue

736,427

2,049,063

2,023,298

2,143,951

Expenditures Administrative and Program Delivery: Labor: Administration Resident Services Maintenance Program

Total Labor Other Administration Other (Interproject Fee for Services) Employee Benefits Management Fees (Interproject)

Total Admin & Program Delivery Exp.

Program Expenses: Planning

Resident Services Utilities Maintenance Specialized Maintenance Protective Services Note Payable Interest Expense Real Estate Taxes General Expense Capital Expenditures Total Program/Operating Expenses Surplus (Deficit) From Operations

124,966 -

102,022 47,923

124,966 33,763 22,280 86,851

86,927 -

70,910 107,198

149,945

267,860

86,927

178,108

89,027 102,832 38,046 148,026 55,426 10,950 -

350,108 232,233 140,000 436,798 109,061 25,863 -

342,280 341,107 150,206 436,798 109,061 57,859 -

338,600 381,722 177,957 436,798 109,061 61,726 -

594,252 142,175

1,561,923 487,140

1,524,238 499,060

1,683,972 459,979

$ $ $

1,314,638 -

1,813,698 -

2,273,677

Provision For Reserves: Actual Reserves June 30, 2018 Projected Reserves June 30, 2019 Projected Reserves June 30, 2020

NRHA FY2019 Approved Budget

127

June 2019

BROAD CREEK VILLAGE CENTER OVERVIEW

FUNDING METHODOLOGY

Funds are required for the temporary maintenance of undeveloped land that will ultimately be used in the construction of for-sale residential homes. This land is located in the area of the Broad Creek revitalization effort known as the Broad Creek Village Center, which is the former public housing site of Moton Circle and Roberts Village East.

The initiative is funded with contributions from local funds.

PROGRAM INITIATIVES Activity in FY2020 includes maintenance of cleared land and disposition of parcels to private developers for residential construction.

NRHA FY2019 Approved Budget

128

June 2019

BROAD CREEK VILLAGE CENTER FY18 Actual

Revenue:

Net Tenant Rental Revenue

FY19 Approved Budget

FY19 Projected Actual

FY20 Approved Budget -

Tenant Revenue - Other

HUD PHA Grants

Other Government Grants

Interest Income

49,511

60,000

47,745

60,000

49,511

60,000

47,745

60,000

Administration Resident Services Maintenance Program

Total Labor Other Administration Other (Interproject Fee for Services) Employee Benefits Management Fees (Interproject)

Total Admin & Program Delivery Exp.

49,511 -

60,000 -

47,745 -

60,000 -

Total Program/Operating Expenses Surplus (Deficit) From Operations

$ $

49,511 -

60,000 -

47,745 -

60,000 -

$ $ $

Earnings from Other Programs Total Revenue

Expenditures Administrative and Program Delivery: Labor:

Program Expenses:

Provision For Reserves: Actual Reserves June 30, 2018 Projected Reserves June 30, 2019 Projected Reserves June 30, 2020

NRHA FY2019 Approved Budget

129

June 2019

CENTRAL OFFICE COST CENTER ADMINISTRATION OVERVIEW

FUNDING METHODOLOGY

The Central Office Cost Center (COCC) refers to the collective group of NRHA business units that provide corporate oversight, specialized services, or professional support for the benefit of all or multiple projects or programs (business centers).

This COCC is funded from excess fees accumulated from prior years for service from the Authority’s Programs funded from HUD and other revenue sources.

PROGRAM INITIATIVES

When amounts of the COCC are underfunded, the gap is included for appropriation in Other Programs. See Central Office tab for an explanation of COCC services, initiatives and goals.

NRHA FY2019 Approved Budget

This year, $304,307 of the Central Office Cost Center’s offset reserves will be used to fund the gap for the Executive Office, Administration Division and Housing Oversight Function.

130

June 2019

CENTRAL OFFICE COST CENTER ADMINISTRATION FY18 Actual

Revenue:

Management Fees (Interproject) Other Fees (Interproject)

Other Fees for Service (External Source)

FY19 Approved Budget 5,906,372 -

30,000

Appropriations from Other Programs

5,706,668 -

FY20 Approved Budget

5,644,072 -

Earnings from Other Programs Appropriation of (this project) Reserves

FY19 Projected Actual

6,135,964 -

355,359

555,907

21,785

304,307

6,029,431

6,492,279

5,728,453

6,470,271

Administration Resident Services Maintenance Program

3,677,800 -

4,024,237 -

3,607,233 -

3,884,251 -

Total Labor Other Administration Other (Interproject Fee for Services) Employee Benefits Management Fees

3,677,800 467,778 606,658 1,277,195 -

4,024,237 595,283 435,224 1,437,535 -

3,607,233 527,470 421,318 1,172,432 -

3,884,251 655,858 516,274 1,413,888 -

Total Admin & Program Delivery Exp.

6,029,431

6,492,279

5,728,453

6,470,271

Total Revenue

Expenditures Administrative and Program Delivery: Labor:

Program Expenses: General Expense Interest Expense Equipment (Non Expendable/Hardware) Transfers to Other Projects Interproject Repayments or Advances Other Capital Expenditures

Total Program/Operating Expenses Surplus (Deficit) From Operations

$ $

Depreciation (Not Included in Totals)

Actual Reserves June 30, 2018 Projected Reserves June 30, 2019 Projected Reserves June 30, 2020

$ $ $

6,029,431 -

6,492,279 -

5,728,453 -

6,470,271 -

Provision For Reserves:

NRHA FY2019 Approved Budget

2,929,334 -

131

2,907,549 -

2,603,242

June 2019

COCC SPECIALIZED MAINTENANCE OVERVIEW

FUNDING METHODOLOGY

COCC Specialized Maintenance is a collective group of specialized trades that perform maintenance services primarily for NRHA’s public housing communities and midrise buildings. Services include ground maintenance, electrical, carpentry, extermination, painting, plastering, plumbing, heating and other specialized and preventative maintenance services.

This fund is comprised of earnings derived from fees for actual work performed for NRHA public housing communities and programs.

PROGRAM INITIATIVES ♦ Revenue is constrained due to limited HUD funding for low-income housing maintenance. While expenses still exceed income, annual shortfalls continue to decline. ♦ Provide the Tidewater Wooden Boat Workshop with 4,080 square feet of warehouse space to allow them to continue the training they provide for public housing residents and other nonprofit organizations. ♦ Assisting in the RAD Demolition Project in Diggs Town by salvaging high cost materials. The valuable materials will aid in funding maintenance costs throughout NRHA’s communities.

NRHA FY2019 Approved Budget

132

June 2019

COCC SPECIALIZED MAINTENANCE FY18 Actual

Revenue:

Other Fees Other Revenue (External Source)

Apropriation of (this project) Reserves

FY19 Approved Budget

6,194,227 -

Appropriation from Other Program Reserve

306,249

Appropriation of Earnings

5,963,830 82,500 739,691 -

FY19 Projected Actual 5,753,519 -

FY20 Approved Budget 6,299,571 100,000

338,982

276,458

985,105

6,500,476

6,786,021

6,368,959

7,384,676

Administration Resident Services Maintenance Program

2,341,660 -

2,292,929 -

2,184,455 -

2,421,297 -

Total Labor Other Administration Other (Interproject Fee for Services) Employee Benefits Management Fees (Interproject)

2,341,660 16,377 299,841 858,656 898,466

2,292,929 14,500 366,097 883,701 933,158

2,184,455 20,183 292,647 836,897 749,347

2,421,297 26,299 286,131 1,015,814 982,815

Total Admin & Program Delivery Exp.

4,415,000

4,490,385

4,083,529

4,732,356

70,999 1,883,019 65,340 63,100 3,018

73,600 2,076,045 23,991 122,000

85,977 1,870,267 74,186 155,000 100,000

71,373 2,353,299 68,648 159,000 -

$ $

6,500,476 -

6,786,021 -

6,368,959 -

7,384,676 -

$ $ $

3,209,613 -

2,870,631 -

2,870,631

Total Revenue

Expenditures Administrative and Program Delivery: Labor:

Program Expenses: Utilities Maintenance Specialized Maintenance Protective Services General Expense Interest Expense Equipment Other Capital Expenditures Total Program/Operating Expenses Surplus (Deficit) From Operations

Provision For Reserves: Actual Reserves June 30, 2018 Projected Reserves June 30, 2019 Projected Reserves June 30, 2020

NRHA FY2019 Approved Budget

133

June 2019

COMMUNICATIONS AND GOVERNMENT RELATIONS OVERVIEW

FUNDING METHODOLOGY

Communications and Government Relations oversees the development, planning, implementation and integration of all communications and marketing strategies in support of NRHA’s vision, mission and business objectives. It also coordinates liaison activities for legislative matters.

Earnings from the Authority’s privately managed apartments fund the department’s activities.

Key functions include: ♦ Media and government relations Website/intranet development and maintenance;

PROGRAM INITIATIVES ♦

Provide community outreach.

♦

Foster collaborative relationships.

♦

Provide legislative advocacy.

♦ Presentations;

♦

Website development.

♦ Graphic design services;

♦

St. Paul’s Area communications efforts.

♦ Social media; ♦ Newsletters and collateral materials production;

♦ Event/tradeshow planning and management; and ♦ Marketing campaigns and research.

NRHA FY2019 Approved Budget

134

June 2019

COMMUNICATIONS AND GOVERNMENT RELATIONS FY18 Actual

Revenue:

Net Tenant Rental Revenue

FY19 Approved Budget

FY19 Projected Actual

FY20 Approved Budget

Tenant Revenue - Other

HUD PHA Grants

Developer Fees

Interest Income

Proceeds from Notes, Loans and Bonds

Other Fees for Service (External Source)

Earnings from Other Programs

430,262

474,363

473,471

439,366

430,262

474,363

473,471

439,366

Administration Resident Services Maintenance Program

250,079 -

258,329 -

246,473 -

213,832 -

Total Labor Other Administration Other (Interproject Fee for Services) Employee Benefits Management Fees (Interproject)

250,079 74,741 25,197 80,245 -

258,329 100,761 26,633 88,640 -

246,473 114,478 28,534 83,986 -

213,832 120,592 26,723 78,219 -

Total Admin & Program Delivery Exp.

430,262

474,363

473,471

439,366

Total Revenue

Expenditures Administrative and Program Delivery: Labor:

Program Expenses: Planning Bond Fees

$ $

430,262 -

474,363 -

473,471 -

439,366 -

Provision For Reserves: Actual Reserves June 30, 2018 Projected Reserves June 30, 2019 Projected Reserves June 30, 2020

NRHA FY2019 Approved Budget

$ $ $

135

June 2019

CORE BUSINESS SERVICE OVERVIEW

FUNDING METHODOLOGY

Core Business Service is a project created to expense certain services, i.e. information technology, parking, employee assistance program and telephone lines, that are determined to be an administrative burden when allocated to individual programs.

The Core Business Service project is funded by earnings from the Authorityâ&#x20AC;&#x2122;s privately managed apartments.

Core Business Service is a collective group of services and activities considered essential to NRHA operations and the well being of staff.

NRHA FY2019 Approved Budget

PROGRAM INITIATIVES Expense certain information technology services and other employee benefits as a direct cost to relieve the administrative burden of distributing these costs to individual programs.

136

June 2019

CORE BUSINESS SERVICE FY18 Actual

Revenue:

Interest Income

Other Fees (Interproject) Interproject Repayments Earnings from Other Programs

FY19 Projected Actual

FY20 Approved Budget

521,513

Appropriation of Reserves Total Revenue

FY19 Approved Budget

521,513

652,348 130,134 782,482

760,826 760,826

712,743 107,647 820,390

Expenditures Administrative and Program Delivery: Labor: Administration Resident Services Maintenance Program

Total Labor Other Administration Other (Interproject Fee for Services) Employee Benefits Management Fees (Interproject)

47,221 460,950 90,904 -

53,900 644,697 83,885 -

44,306 622,732 93,788 -

49,180 701,090 70,120 -

Total Admin & Program Delivery Exp.

599,075

782,482

760,826

820,390

Program Expenses:

Total Program/Operating Expenses Surplus (Deficit) From Operations

$ $

599,075 (77,562)

782,482 -

760,826 -

820,390 -

Provision For Reserves: Actual Reserves June 30, 2018 Projected Reserves June 30, 2019 Projected Reserves June 30, 2020

NRHA FY2019 Approved Budget

$ $ $

137

June 2019

DISPOSITION SUPPORT OVERVIEW

FUNDING METHODOLOGY

Disposition Support provides support services for grounds and property owned by NRHA.

The fund is comprised of earnings derived from fees charged for services performed.

PROGRAM INITIATIVES In FY2019, income from fees for service did not cover expenses. In FY2020, $17,795 of NRHA discretionary reserves will be used to fund the operating shortfall.

NRHA FY2019 Approved Budget

138

June 2019

DISPOSITION SUPPORT FY18 Actual

FY19 Approved Budget

FY19 Projected Actual

FY20 Approved Budget

Proceeds from Notes, Loans and Bonds

Proceeds from Property Sales

Other Fees for Service (External Source) Other Revenue (External Source)

Interest Income

4,938 -

20,175 -

18,190 -

17,795 -

4,938

20,175

18,190

17,795

Administration Resident Services Maintenance Program

Total Labor Other Administration Other (Interproject Fee for Services) Employee Benefits Management Fees (Interproject)

Total Admin & Program Delivery Exp.

4,938 -

20,175 -

18,190 -

17,795 -

Total Program/Operating Expenses Surplus (Deficit) From Operations

$ $

4,938 -

20,175 -

18,190 -

17,795 -

$ $ $

Revenue:

Other Fees Other Revenue (External Source)

Appropriation from Other Program Reserves Appropriation of Earnings from Other Projects Appropriation from (this) Program Reserve

Appropriation of Reserves Total Revenue

Expenditures Administrative and Program Delivery: Labor:

Program Expenses:

Provision For Reserves: Actual Reserves June 30, 2018 Projected Reserves June 30, 2019 Projected Reserves June 30, 2020

NRHA FY2019 Approved Budget

139

June 2019

EXECUTIVE DIRECTOR CONTINGENCY FUND OVERVIEW

FUNDING METHODOLOGY

The Executive Director Contingency Fund was created to capture costs that support internal and external initiatives that are otherwise ineligible under federal programs. The contingency fund allows staff activities to continue that would otherwise be unfunded. It also provides the flexibility to fund unforeseen expenditures with the approval from the Executive Director.

Earnings from the Authority’s privately managed apartments fund the Executive Director Contingency Fund.

NRHA FY2019 Approved Budget

PROGRAM INITIATIVES

140

♦

Support internal and external initiatives.

♦

Support administrative Rental Assistance Demonstration conversion initiatives.

June 2019

EXECUTIVE DIRECTOR CONTINGENCY FUND

Revenue:

Interest Income

Other Revenue (External Source) Earnings from Other Programs

FY18 Actual

FY19 Approved Budget

FY19 Projected Actual

FY20 Approved Budget

264,524

527,271

567,230

410,250

Appropriations from Other Programs

Appropriation of (this project) Reserves

Total Revenue

264,524

527,271

567,230

410,250

Expenditures Administrative and Program Delivery: Labor: Administration Resident Services Maintenance Program

Total Labor Other Administration Other (Interproject Fee for Services) Employee Benefits Management Fees

264,524 -

527,271 -

567,230 -

410,250 -

Total Admin & Program Delivery Exp.

264,524

527,271

567,230

410,250

Program Expenses:

General Expense Interest Expense Bond Fees Client (New Loans) Principal Payment on Debt Equipment (Non Expendable/Hardware) Transfers to Other Projects Interproject Repayments or Advances Other Capital Expenditures

Total Program/Operating Expenses Surplus (Deficit) From Operations

$ $

Depreciation (Not Included in Totals)

Actual Reserves June 30, 2018 Projected Reserves June 30, 2019 Projected Reserves June 30, 2020

$ $ $

264,524 -

527,271 -

567,230 -

410,250 -

Provision For Reserves:

NRHA FY2019 Approved Budget

141

June 2019

HAMPTON ROADS VENTURES OVERVIEW

FUNDING METHODOLOGY

Hampton Roads Ventures, LLC, (HRV) is a limited liability company formed in 2003. HRV is a qualified community development entity that holds new market tax credit allocation authority to be used for investment in qualified active low-income community businesses.

The HRV Management Agreement provides fee for service and funding to support operating cost. The New Markets Tax Credit program costs and post-closing expenditures of each investment are reflected under HRV as a component unit of NRHA, rather than incorporated in the Authority’s annual budget. NRHA’s budget reflects the revenue from HRV as a fee for service for operational oversight and support provided by NRHA staff.

HRV partners with public, privatesector and non-profit community development organizations to attract private-sector investment capital for innovative real estate projects in lower income neighborhoods, particularly inner city and rural communities. Staffed by experienced community economic development professionals, HRV is extremely sensitive to the unique opportunities, challenges and constraints facing public sector and non-profit community development agencies.

The New Market Tax Credits Program provides tax credit incentives to investors for equity investments in certified Community Development Entities that invest in low-income communities.

PROGRAM INITIATIVES ♦ Continue to spur revitalization efforts of low-income and impoverished communities. ♦ Meet the investor requirements of existing Limited Partnership Agreements for NRHA component units.

NRHA FY2019 Approved Budget

142

June 2019

HAMPTON ROADS VENTURES FY18 Actual

FY19 Approved Budget

FY19 Projected Actual

FY20 Approved Budget

Tenant Revenue - Other

HUD PHA Grants

Other Government Grants

8,445

16,002

13,415

17,956

Revenue:

Net Tenant Rental Revenue

Mangement Fees Appropriations from Other Programs

8,445

16,002

13,415

17,956

Administration Resident Services Maintenance Program

6,399 -

12,481 -

10,651 -

13,313 -

Total Labor Other Administration Other (Interproject Fee for Services) Employee Benefits Management Fees (Interproject)

6,399 2,046 -

12,481 3,521 -

10,651 2,764 -

13,313 4,643 -

Total Admin & Program Delivery Exp.

8,445

16,002

13,415

17,956

8,445 -

16,002 -

13,415 -

17,956 -

$ $ $

Total Revenue

Expenditures Administrative and Program Delivery: Labor:

Program Expenses: Planning Bond Fees

Provision For Reserves: Actual Reserves June 30, 2018 Projected Reserves June 30, 2019 Projected Reserves June 30, 2020

NRHA FY2019 Approved Budget

143

June 2019

PROJECT DEVELOPMENT FINANCING OVERVIEW

FUNDING METHODOLOGY

Funds provided through Project Development Financing support efforts to finance the renovation, redevelopment and/or construction of quality, affordable homes and apartments in sustainable, mixed-

Advances from Working Fund reserves are provided to cover pre-development costs. Advances are repaid when permanent financing is in place.

income communities.

PROGRAM INITIATIVES ♦ Continue predevelopment activity for: •

Diggs Public Housing Communities Phases I & II;

•

5th to 7th Bay Streets development; and

•

HUD Choice Neighborhoods Initiative.

♦ Reposition activities and projects to enhance cash flow in NRHA’s existing rental portfolio.

NRHA FY2019 Approved Budget

144

June 2019

PROJECT DEVELOPMENT FINANCING FY18 Actual

Revenue:

Net Tenant Rental Revenue

FY19 Approved Budget

FY19 Projected Actual

FY20 Approved Budget

Tenant Revenue - Other

HUD PHA Grants

Developer Fees

748,822

822,206

736,166

651,655

Other Income

Interest Income

Earnings

Appropriation from Other Programs Reserves

202,655

328,627

800,000

480,392

800,000

1,077,449

1,622,206

1,216,558

1,654,310

Administration Resident Services Maintenance Program

395,266 -

430,939 -

388,393 -

450,040 -

Total Labor Other Administration Other (Interproject Fee for Services) Employee Benefits Management Fees (Interproject)

395,266 12,984 49,598 125,692 165,282

430,939 26,133 40,164 149,590 175,380

388,393 24,420 41,762 105,761 175,830

450,040 26,833 42,766 149,524 185,147

Total Admin & Program Delivery Exp.

748,822

822,206

736,166

854,310

Relocation Demolition Planning Disposition Rehabilitation General Expense Interest Expense Bond Fees Client (New Loans) Principal Payment on Debt Equipment (Non Expendable/Hardware) Transfers to Other Projects Interproject Repayments or Advances Other Capital Expenditures

328,627 -

800,000 -

480,392 -

800,000 -

Total Program/Operating Expenses

$ $

1,077,449

1,622,206

1,216,558

1,654,310

Surplus (Deficit) From Operations Appropriation for Other Programs

Total Revenue

Expenditures Administrative and Program Delivery: Labor:

Program Expenses:

Depreciation (Not Included in Totals)

Actual Reserves June 30, 2018

Projected Reserves June 30, 2019

Projected Reserves June 30, 2020

Provision For Reserves:

NRHA FY2019 Approved Budget

145

June 2019

PAGE INTENTIONALLY LEFT BLANK

NRHA FY2019 Approved Budget

146

June 2019

PAGE INTENTIONALLY LEFT BLANK

NRHA FY2019 Approved Budget

147

June 2019

CENTRAL OFFICE COST CENTER Overview of Funding Methodology and Services Provided

CENTRAL OFFICE COST CENTER The Central Office Cost Center (COCC) refers to the collective group of Authority business units that provide corporate oversight, specialized services and professional support benefitting all or multiple NRHA projects or programs (business centers) whose services may not be readily identifiable to a particular one. Some services of the COCC units are targeted to benefit all programs of NRHA while others benefit subsets of the Agency as follows: 1. Units that benefit all programs of the Authority that require indirect business overhead cost recovery. Organizationally, these units function within the Administrative Operations Division or Executive Offices and include:       

Administrative Services Department (including Procurement) Budget and Compliance Department Chief Administrative Officer Executive Office Finance Department Human Resources Information Technology

2. COCC units that benefit Property Management Functions and support the administration of the Housing Choice Voucher Program include:        

Chief Housing Officer Public Housing Property Management Project Base Voucher Property Management Public Housing Annual Plan Coordination Asset Management Function Resident Services (Central Oversight) Rental Properties - Third Party Management Oversight Specialized Maintenance

The costs of each of the business units listed above are recovered from the benefiting properties, projects and programs under three different methodologies:

NRHA FY2019 Approved Budget

148

June 2019

Fee for Service This method involves charging a management fee, service fee, and other allowable fees for those properties, projects and programs consistent with eligibility rules. Public Housing, the Capital Fund Program and the Housing Choice Voucher Program are examples of programs that allow fees for services as the basis for recovering overhead. Fees are also charged to external sources when services are rendered to nonaffiliated agencies. Proration of centralized front line costs Some properties and programs allow centralized “front line” activities, such as intake and security, to be prorated and the cost distributed to the benefitting properties based upon the number of units or the number of bedrooms. OMB-Compliant Indirect Cost Allocation Plan Properties, projects and programs that do not allow fee for service and/or proration may receive an allocation of COCC Indirect Costs based upon an Indirect Cost Allocation Plan (CAP).

SERVICES PROVIDED An overview of the services provided by each unit of the Central Office Cost Center is provided on the following pages. Asset Management Department The Asset Management department supports the public housing communities by supplying various services as follows: 

Maintaining the Public and Indian Housing Information Center (PIC) public housing report system as well as the Enterprise Income Verification (EIV) system to ensure the integrity of the data that is reported to HUD.  Maintaining statistical analysis of public housing demographics and community activity data.  Supplying the AMP managers with tools to assist in the management of their communities, e.g. a condensed monthly financial report called a “monthly report card”.  Monitoring and inventory oversight including establishing procedures and processes, training staff, problem solving, annual physical inventory and reconciliation.

NRHA FY2019 Approved Budget

149

June 2019

The Asset Management department also conducts on-going systems training and refresher sessions to the AMP staff as needed. The department assists the AMP managers in gathering the information required for their HUD on-site review and also reviews files and records for HUD compliance. In addition, the department manages the NRHA fraud hotline. Chief Administrative Officer (CAO) The Chief Administrative Officer provides oversight of the Authority's Finance and Administration departments that provide expert supportive services and administrative data to ensure all other business areas of the Authority are able to contribute to the achievement of the mission of the organization. The departments reporting to the CAO within the Administrative Operations Division are Finance, Structured Finance, Budget and Compliance and Administrative Services. The CAO is responsible for ensuring that the organizational infrastructure links goals, activities and people through planned processes and systems in a manner that supports the vision and growth of NRHA. Chief Housing Officer (CHO) The Chief Housing Officer oversees Property Management, Client Services and Community Engagement, Facilities Management, Specialized Maintenance and Housing Choice Voucher. The CHO keeps abreast of housing policies affecting these departments and makes recommendations and changes to relevant policies and procedures. Grants, plans and reports are reviewed and approved for submission to HUD and other governmental agencies. Periodic reviews are conducted by the CHO to ensure that NRHA complies with the laws of all governing agencies. Budget and Compliance Department The Budget and Compliance Department coordinates preparation of the financial components of NRHAâ&#x20AC;&#x2122;s operating and capital plan. Budget and Compliance manages annual operating and capital budgets of approximately $110 million annually. Specific support services include preparation of budget guidelines and instructions, coordination of budget preparation and review, providing feedback on budget status and approved budgets, publishing the budget document, providing needed budget, analytical and reporting data, monitoring budget, reporting and compliance oversight and providing assistance on budget and compliance issues.

NRHA FY2019 Approved Budget

150

June 2019

The Budget and Compliance Department also serves as liaison with funding providers and coordinates many of the compliance audits for the Authority. Executive Office The Executive Director maintains NRHAâ&#x20AC;&#x2122;s strategic focus on the accomplishment of its mission and vision as well as overseeing the operations of all NRHA and affiliate organizations. The Chief Administrative Officer, Chief Housing Officer and Director of Development Operations, as well as the Communications and Government Relations, Human Resources, Information Technology, and Neighborhood Projects departments report to the Executive Director. Finance Department NRHAâ&#x20AC;&#x2122;s Finance Department monitors the fiscal integrity of the Authority. The department is charged with ensuring asset identification and control, providing sound fiscal guidance and performing traditional financial operations to include accounts payable, accounts receivable, payroll and monitoring compliance with financial mandates. Specific services provided for NRHA programs include: disbursement of all NRHA funds; processing and payment of biweekly payroll; draw-down of all government revenue; tracking and reporting on the status of nrha reserves and inter-project advances; tenant accounting for resident balances; tracking program notes and accounts receivable; grant accounting; cash and investment management; financial reporting; capital asset, land inventory accounting; supply inventory accounting; contract reporting and tracking; regulatory reporting; accounting for NRHA debt obligations; COCC/internal service fund accounting; maintenance of general ledger and chart of accounts; accounting for component units; maintenance of cost allocation system and evolving fee for service structure; third party property management monitoring and bookkeeping; fiscal agent accounting services; and annual financial and other audits. Communications and Government Relations Communication and Government Relations is responsible for every aspect of NRHA's internal and external communications. The department answers requests for information, produces multiple publications as well as managing the intranet and website. They are also responsible for customer relations, special events, marketing NRHA's program and services, public and media relations and monitoring and communicating legislative changes impacting NRHAâ&#x20AC;&#x2122;s operations. Human Resources

NRHA FY2019 Approved Budget

151

June 2019

Human Resources is responsible for the professional, technical, and administrative functions associated with staffing, compensation, benefits, training and development, human resources policy development and enforcement, employment law compliance, employee relations and other internal administration. Information Technology The Information Technology department provides a wide range of technology services to NRHA’s operating divisions to:  Ensure that technology assets are fully operational for all users in support of daily business needs;  Provide security for the Authority’s data from unauthorized access using industry best practices security measures;  Performs daily backups of that data utilizing off-site storage; and  Maintain vendor-provided and internally developed custom applications to serve the business needs of the organization. Administrative Services Department Administrative Services provides a wide array of services to support all Authority operations.  Procurement Services develops, recommends and establishes procurement policies and procedures; serves as internal consultant on procurement policy and procedures; oversees centralized small purchases, survey and disposition of expendable and non-expendable assets; conducts physical inventory of assets; administers the credit card purchasing program; administers the desktop office supply delivery program; provides centralized supply chain management, primarily for Housing Operations; and collaborates with the Economic Opportunities Office in outreach to Section 3 and MWBE vendors.  Administrative Services manages incoming, distribution and bulk mail services; Central Files document management, records retention and storage; parking administration; cellular telephones; vehicle pool; service billings and payments; and customer service.  Property Management manages 555 E. Main Street building and contract administration with third party realtors.  Safety and Risk Management provides workers compensation management; general liability, property, auto and boiler insurance procurement and claims management; employee safety and risk management; conducts/facilitates employee and resident training in risk management and OSHA compliance;

NRHA FY2019 Approved Budget

152

June 2019

conducts loss prevention, control and accident investigations; and coordinates emergency incident response. Public Housing Property Management Public Housing Property Management provides managerial direction for the operations of all Public Housing communities to ensure that affordable, safe, decent and sanitary housing is available for qualified individuals and families through ongoing monitoring of the physical, management and financial condition of each community. In addition, the Property Management assures compliance with HUD public housing rules and regulations, equal housing laws, local ordinances and Americans with Disabilities Act (ADA) laws. Rental Properties – Third Party Management Oversight NRHA owns or has ACC compliance oversight responsibility for several rental properties whose daily operations are managed by third-party realty companies. The COCC third party management oversight function serves to: assure contract compliance; monitor property performance; resolve issues related to contractors’ property management; maintain positive relations with contractors; monitor expenditures for conformity with budget; recommend housing policies, programs, and procedures; monitor compliance with laws and regulations; coordinate asset management functions with NRHA’s managed public housing operations; coordinate property inspections according to UPCS standards set by HUD; randomly review records to ensure they are maintained properly; monitor review by HUD and VHDA to ensure corrective action; and contract negotiation. Resident Services Central Public Housing Coordination The COCC supervises the central resident service functions that support the public housing residents. Functions supervised include workforce development, resource development, and neighborhood management. Annual Plan Coordination Included in the COCC budget are the cost associated with coordinating the development of the draft annual plan, disseminating the draft, conducting meetings with residents, staff and others, presenting the plan to NRHA’s Board of Directors and interested parties and submitting the plan to HUD. Prior to developing the draft plan, HUD guidelines are reviewed for new regulatory changes and/or mandates. After

NRHA FY2019 Approved Budget

153

June 2019

submission, staff follows up with HUD for approval and to receive feedback on the contents of the plan. Specialized Maintenance Shops Specialized Maintenance Shops perform services to maintain or improve the physical environment of NRHAâ&#x20AC;&#x2122;s housing communities and programs. Services include ground maintenance, electrical work, extermination, painting, plastering, plumbing, heating and other specialized maintenance services. To generate income to offset expenses, the shops charge fees for services to the housing communities and programs for actual work performed.

NRHA FY2019 Approved Budget

154

June 2019

ADMINISTRATIVE SERVICES Building Management, Central Files, Purchasing, and Risk Management & Safety

KEY CHALLENGES  

    

Ensuring that the needs of end users are met while maintaining compliance with statutory, regulatory and policy requirements. Elevating Procurement to a position of strategic importance and encouraging the function to be better recognized as a value-generating resource within the agency, where sourcing success is linked to business outcomes. Validating internal service rates to ensure that more competitive pricing for comparable work is not available from other sources. Educating end users on the importance of document completion to reduce delays and missed deadlines. Transitioning procurement procedures to the new Emphasys Elite Administration Suite. Addressing the need for greater storage capacity since the current storage facility for permanent and stored files is filled to capacity. Leasing office space at 555 E. Main Street

FY2019 ACCOMPLISHMENTS    



One Purchasing Assistant obtained Certification in Procurement and Acquisition from Tidewater Community College Re-designation of 1-CPPO and 1-CPPB procurement certification for the next five years. Phase I building upgrades at 555 E. Main Street: Garage Lighting, Railing at front entrance, HVAC Upgrades Successfully initiated solicitation, transitioned and entered into a 5-year agreement with Commonwealth Commercial LLC and JLL Real Estate Company for 555 E. Main Street Property Management and Leasing Services, respectively. Published policy and executed training on the disposition of Damaged Property Policy encouraging timely reporting in order to support restoration of property damage within the required 72-hour period. Distributed newly written policy sections to the Safety Manual to comply with NRHA protocol and OSHA - Standards and Plans on Blood Borne Pathogens and Hearing Conservation.

NRHA FY2019 Approved Budget

155

June 2019

ADMINISTRATIVE SERVICES Building Management, Central Files, Purchasing, and Risk Management & Safety 

Conducted a review of Property, liability and general insurance policies totaling $928,477 a year. Internal audit resulted in a total cost savings of $16,000 for policy year 2018.  Assumed responsibility for Property Management residential claims of loss and diligence resulted in an approximate savings of $43,368 for 2018.

FY2020 GOALS – 555 EAST MAIN STREET BUILDING MANAGEMENT 

Conduct a 555 E Main Street tenant survey for feedback on Property Management transition.  Work with JLL, leasing company, on marketing strategy for the 555 E Main Street building and preparing leasing proposals for perspective tenants.  Fully transition the Property Management Company to NRHA standards in Emergency Management and Accident Reporting.  Planning for Phase II construction work.

FY2020 GOALS - CENTRAL FILES 

Work with the IT Department to implement and train staff on Laserfiche (Electronic Document Management) usage.  Purchase and install proper weight bearing shelving for records volume at the 910 Ballentine Boulevard file location.  Conduct an Agency-wide Shred event.  Streamline and make official the rules by with the Authority is expected to operate by revamping the outdated Administrative Procedures/Operations Manual.

FY2020 GOALS - PURCHASING 

Improve end-user relationships through negotiations of cost of services to improve transparency through established contracts.

NRHA FY2019 Approved Budget

156

June 2019

ADMINISTRATIVE SERVICES Building Management, Central Files, Purchasing, and Risk Management & Safety

FY2020 GOALS – PURCHASING CONT’…   

  

    

Establish protocol for sourcing, negotiating, drafting contracts and tracking of IT procurements. Re-certification of CPPO and CPPB designations. Continue to reduce costs through negotiation, cooperative procurement opportunities and by combining departmental needs to increase buying power for NRHA. Promote authority-wide usage of the Elite software program by developing easy to follow Elite Procurement training documents. Begin preparation for the solicitation of new stock contracts. Continue to reduce costs through negotiation, cooperative procurement opportunities, and by combining departmental needs to increase buying power for NRHA. Continue to reduce P-Card stock items purchases by end users. Re-assignment of procurement department staff to different client areas to increase cross training efforts. Update the procurement procedures manual to include IT procurement procedures including the use of Cooperatives for IT purchases. Authority wide refresher training in procurement procedures. Reduce P-Card stock items purchases by end users.

FY2020 GOALS - RISK MANAGEMENT & SAFETY 



  

Promote a safe working environment that minimizes potential accidents for staff, residents and the general public by maintaining an active focus on safety and identifying corrective measures to eliminate or control recognized safety hazards. Continue to work with outside agencies and security programs to produce sitespecific emergency management procedures for both residents and employees to ensure a cohesive response in emergency situations. Continue with the Employee, Client, and Community safety initiative - establish emergency management procedures. Continue to advise, mitigate and address liability and risk concerns within the agency. Assist in the implement of on-job training for specialized shops.  Encourage vehicle safety by training all required drivers on distracted driving and implement a cell phone usage policy for vehicle operators.

NRHA FY2019 Approved Budget

157

June 2019

BUDGET AND COMPLIANCE KEY CHALLENGES The biggest challenges in FY2020 are to estimate the level of resources that will be needed to support the goal of transforming public housing; assist executive management in developing a plan to obtain a sustainable budget; and procure and implement budgeting software.

FY2019 ACCOMPLISHMENTS        

Prepared and submitted a balanced FY2020 Annual Operating and Capital Budget. Prepared mid-year and year-end reports to the Board of Commissioners on the Authority’s current fiscal year’s budget expenditures. Provided technical assistance and coordination in the preparation and execution of the operating and capital budget with participants of the budget process. Provided support and assistance to other departments during software implementations, audits, and new programs. Monitored appropriated funds. Provided various departments with program compliance assistance. Provided assistance in the preparation of the City’s FY2018 CAPER and FY2020 Annual Action Plan. Prepared and submitted funding applications to the City for the award of: FY2020 CDBG funds for Hunton YMCA Acquisition; and FY2020 HOME funds for Admin, Homebuyer Assistance and CHDO Set-Aside.

FY2020 GOALS         

Work with management to identify expenditure reductions and revenue opportunities to assist in balancing the FY2021 budget. Develop processes to closely monitor vacancy and turnover savings. Implement budgeting software and streamline the budget process. Prepare the annual operating budget for approval by the Board. Complete the development of and implement a grants review process. Develop policies and procedures for grants compliance, management and reporting. Report bi-annually the Authority’s current fiscal position. Prepare and distribute the 2019 Program Reserve Book. Continue to promote fiscal responsibility among departments by working more collaboratively.

NRHA FY2019 Approved Budget

158

June 2019

COMMUNICATIONS AND GOVERNMENT RELATIONS KEY CHALLENGES ♦ NRHA website overhaul and redesign. ♦ Department staff training and development. ♦ Improving citizen/neighborhood perception of the Housing Choice Voucher program. ♦ Support for the St. Paul’s area redevelopment initiative.

FY2019 ACCOMPLISHMENTS ♦ Planned and implemented operational objectives and strategies for communications department to align with corporate strategic plan. ♦ Planned and implemented successful special events including the Annual Employee meeting and 5th to 7th Bay Streets Groundbreaking ♦ Created and implemented “Families First” branding to include a new resident newsletter. ♦ Provided significant support services for the St. Paul’s area redevelopment initiative, including media relations and the creation of a St. Paul’s area website. ♦ Provided significant services in support of NRHA’s Choice Neighborhoods Initiative, including special tours of the St. Paul’s Area for representatives from HUD. ♦ Produced and distributed NRHA’s 2018 Annual Report. ♦ Designed, developed and implemented PR and marketing strategies and campaigns. ♦ Planned and developed news releases, articles, reports, newsletters, ads, website content and other publications for external and internal distribution. ♦ Provided support for activities in NRHA’s resident communities including creation of flyers and other promotional materials, photography and provision of marketing materials. ♦ Designed and developed Community Newsletter templates and assisted in their implementation. ♦ Designed and developed graphics for print and digital media. ♦ Planned, developed and coordinated special events, conferences and appearances. ♦ Advised NRHA executive leadership on communications and PR matters. ♦ Represented agency in response to media information requests.

NRHA FY2019 Approved Budget

159

June 2019

COMMUNICATIONS AND GOVERNMENT RELATIONS ♦ Created and maintained relationships with government officials, political agencies, business and industry organizations, key influencers, community groups, public housing residents, news media and employees. ♦ Managed social media to showcase agency events, announcements, people and achievements. ♦ Managed and responded to all Freedom of Information Act (FOIA) requests. ♦ Prepared successful award submissions for NRHA’s Annual Report and National Night Out events.

FY2020 GOALS ♦ Provide clear and accurate information to the families of the St. Paul’s area to enable them to feel comfortable in making the housing choice that best suits their needs.

♦ Improve citizen/neighborhood and landlord perception of the Housing Choice Voucher program through a targeted campaign. ♦ Support major NRHA property management and real estate development initiatives such as the St. Paul’s Area redevelopment, Ocean View, Broad Creek and the repositioning of privately-managed properties. ♦ Implementation of NRHA’s website redesign. ♦ Provide General Assembly and Congressional delegation regular updates on NRHA activities as well as advocate for positive legislation impacting NRHA operations. ♦ Effectively represent NRHA in the community and with partner organizations. ♦ Plan and implement organization-wide special events. ♦ Support NRHA resident community activities.

NRHA FY2019 Approved Budget

160

June 2019

FINANCE

KEY CHALLENGES ♦

♦

♦ ♦

Staff realignment is needed to better meet the diverse, continuously changing and expanding financial service needs required by new programs and initiatives, funding providers, regulatory requirements as well as program staff. Continual introduction of new programs and initiatives that have no additional or inadequate administrative funding for organization support but require significant time to set up, track and draw funding, e.g., Jobs Plus grant, SRAP, online rent payment processing, Resident Opportunities, Inc., City View Tower and Hampton Roads Ventures distributions. Continued maintenance of a significant number of “legacy” programs that have no new program initiatives but require administrative oversight and tracking of phasedown activity. These programs generate no new earned fees to cover administrative cost throughout this maintenance and phase down period. Although conversion of software from the Masterpiece platform to the Elite Admin Suite for Procurement, General Ledger, Accounts Payable, Grants, and Fixed Assets has been completed, we now face challenges of determining maximum utilization of the system to aid in producing more user-friendly reports. Transitioning from Low Income Public Housing to RAD/PBV based funding, which requires different monthly processing as well as different fiscal year end reporting. Planning for the development of the St. Paul’s Area in relation to the effects on the Public Housing and Housing Choice Voucher programs.

FY2019 ACCOMPLISHMENTS ♦ ♦

♦ ♦ ♦ ♦ ♦

Provided accounting oversight for the renovation of the Merrimack Landing project. Continued to update protocol and procedures for management and tracking of inventory and fixed assets between property management, purchasing and finance personnel. Applied for and obtained renewal of Single Room Occupancy vouchers contract before its annual expiration. Completed FY2018 unaudited financial statements by HUD’s August 31 deadline. Completed the FY2018 audited financial statements with an unqualified (clean) opinion by HUD’s March 31 deadline. Implemented accounting for RAD/PBV conversion of Diggs Town Phase I. Continued to provide oversight for the accounting and reporting of the change in Park Terrace’s status after payoff of the VHDA loan.

NRHA FY2019 Approved Budget

161

June 2019

FINANCE FINANCE Implemented additional rent payment option for Project Based Voucher residents. ♦ Provided accounting oversight for the purchase of the new City View Tower building. ♦ Secured the services of an audit firm to perform NRHA’s annual fiscal year end audit for another five year term ♦ Created far-reaching revenue and expense models to forecast possible outcomes of the St. Paul’s Area development. ♦

FY2020 GOALS ♦

♦ ♦ ♦ ♦ ♦ ♦ ♦

♦

♦ ♦ ♦

Continue to update protocol and procedures for management and tracking of inventory and fixed assets between property management, purchasing and finance personnel with inclusion of new software. Analyze the regulations for the new Grandy VI tax credit development to insure proper accounting and reporting of the entities. Continue to provide accounting oversight for the renovation of the Merrimack Landing project. Complete the implementation of accounting for RAD/PBV conversion of Diggs Town Phases I and II. Complete FY2019 unaudited financial statements by HUD’s August 31 deadline. Complete the FY2019 audited financial statements with an unqualified (clean) opinion by HUD’s March 31 deadline. Secure the services of an audit firm to perform NRHA’s annual fiscal year end audit for another five year term. Continue to work with consultants in positioning staff to more effectively accomplish NRHA’s goals as well as provide staff the opportunity to develop in different areas of responsibility and expertise. Continue to implement new Elite Admin Suite software consisting of the Procurement, General Ledger, Accounts Payable, Grants and Fixed Assets modules to better position us to meet future reporting requirements needed for tax credit entities. Assist in the assessment of legacy programs to determine avenues to transition them to performing assets or to close them out. Assist the Budget Department in a review of the budget preparation and transaction recording process for Specialized Maintenance operations. Create and update far-reaching revenue and expense models to forecast possible outcomes of the St. Paul’s Area development.

NRHA FY2019 Approved Budget

162

June 2019

HUMAN RESOURCES

KEY CHALLENGES ♦ ♦ ♦ ♦ ♦

Attracting and retaining talent at an affordable cost. Controlling staffing management costs, especially temporary and turnover staffing costs. Expanding and improving training content while managing training costs. Improving performance management systems. Offering a benefits program that attracts and retains employees, while also controlling benefit costs. ♦ Monitoring and complying with changing legal requirements, particularly those related to compensation and health care reform. ♦ Expanding the use of technology to improve administrative efficiencies and service delivery.

FY2019 ACCOMPLISHMENTS ♦ Coordinated the recruitment for Chief Administrative Officer and Neighborhood Projects ♦ ♦ ♦ ♦ ♦ ♦ ♦ ♦ ♦ ♦ ♦ ♦

Director. Facilitated key organizational structure changes, including changes in the Development Operations division, and assisted staff in job design. Improved recruitment through better tracking procedures and more advertising venues. Administered a two percent upward adjustment in the NRHA pay structure. Administered the Performance Review Summary performance evaluation system and coordinated a comprehensive pay-for-performance program for fourth year. Expanded the training offered by NRHA by conducted stress management and customer service training sessions as well as coordinated conciliation and team-building training. Implemented a new electronic internal requisition and application procedure. Served as an active member in the Norfolk benefits consortium. Marketed wellness, disease management and other health management initiatives; marketing financial wellness initiatives. With Client Services, participated in Tenant Management Council leadership development training and Career Information session. With the Budget and Compliance department, developed a position tracking and reporting system. Participated as a member of the Critical Incident Response Team. Developed a video featuring NRHA’s Executive Director for use in new employee orientation training.

NRHA FY2019 Approved Budget

163

June 2019

HUMAN RESOURCES FY2020 GOALS ♦ Act effectively and efficiently on proposed organizational changes in response to ♦ ♦ ♦ ♦ ♦ ♦

implementing grant-based housing and community engagement programs. Implement technological solutions to routine human resource and payroll operations, including employee records management. Create and execute a comprehensive staff training strategy. Stabilize hiring and retention. Expand employee recognition and engagement. Continue to serve as an active member in the Norfolk Benefits Consortium, obtaining and implementing recommendations to manage benefits costs from benefits consultant. Act to assure compliance with new federal mandates.

NRHA FY2019 Approved Budget

164

June 2019

INFORMATION TECHNOLOGY

KEY CHALLENGES ♦ Balancing, increasing and evolving workload with current staffing capacities. ♦ Continuous review of technology and operational methods seeking ways to reduce costs while ensuring sustainability. ♦ Staff transitions emphasize the need for knowledge transfer and keeping skill sets up to date. ♦ Maintaining legacy in-house custom programs for long term sustainability and support. ♦ Understanding the business directions and needs of NRHA to ensure that technology solutions meet those needs efficiently. ♦ Inclusion of non-traditional business areas within NRHA that require technology review and planning.

FY2019 ACCOMPLISHMENTS ♦ Upgraded Abra HR, payroll software and hardware to latest versions. Reconfigured the supporting payroll process software to work with the new Abra systems. ♦ Implemented software configuration changes to support the Diggs RAD and tax credit conversion. ♦ Virtualized Utilities meter reading systems to remove single point of failure. ♦ Upgraded data center, backup system and firewall to be completely virtualized and redundant. ♦ Converted remote desktop application support from Citrix to native Microsoft platform to simplify support, retire aging hardware infrastructure and leverage new data center hardware. ♦ Assisted projects enabling online access for HomeNet clients and the build of a new NRHA webpage. ♦ Implemented online Rent Reasonableness determination software application. ♦ Installed technology for a second Jobs Plus office at Young Terrace, Family First centers at Tidewater Gardens and the Oakleaf Forest Family Investment Center. ♦ Upgraded the sound system in Boardroom. ♦ Worked with vendor and NRHA staff to implement online VHDA data upload software. ♦ Upgraded Emphasys Elite and Laserfiche to latest software versions. ♦ Enable Elite Admin Suite Purchasing email processes notification. NRHA FY2019 Approved Budget

165

June 2019

INFORMATION TECHNOLOGY ♦ Implement the Emphasys modules for the Streamline Recertification Portal, Waitlist Application and Applicant Update Portals.

FY2020 GOALS ♦ Upgrade desktop computers to Windows 10 and Office version 2019. ♦ Upgrade computer management, antivirus, ancillary databases and custom programs to function in the new client computer environment. ♦ Install internet kiosks for public housing rental offices. ♦ Implement My Housing modules for cloud based client interactions. ♦ Upgrade housing and administrative support software to Elite 2.0. ♦ Configure Elite email integration to allow for management notification of identified events. ♦ Upgrade server hardware at Ballentine to be fully compatible with Headquarters. ♦ Implement electronic publication of Commissioner meeting agenda. ♦ Facilitate major security enhancements in rental offices.

NRHA FY2019 Approved Budget

166

June 2019

FY2020 REVENUE & EXPENDITURES Central Office Cost Center Approved Revenue

FY2020

Description

Amount

Management Fees (Internal P rojects) Fe de rally Ai de d Housi ng vi a HUD-approve d Safe Harbor Fe e s

2,336,505

15.2%

Se cti on 8 program vi a HUD-approve d Safe Harbor Fe e s

847,685

5.5%

RAD/Proje ct Base d Vouche r vi a HUD-approve d Safe Harbor Fe e s

677,414

4.4%

Di ggs Phase I-approve d Safe Harbor Fe e s

115,937

0.8%

35,562

0.2%

Cottage Bri dge vi a 6% of gross re nt Re si de nti al Opti ons, Inc.-approve d Safe Harbor Fe e s

35,402

0.2%

758,299

4.9%

Proje ct De ve lopm e nt Fi nanci ng i ni ti ati ve s vi a allocate d costs

185,147

1.2%

Spe ci ali ze d Mai nte nance vi a allocate d costs

982,815

6.4%

555 E. Mai n St. Offi ce Bui ldi ng (5% of T e nant Re ve nue s)

107,198

0.7%

Book k e e pi ng and Asse t Manage m e nt Fe e s (Multi -fam i ly Re ntal)

346,076

2.3%

6,359,571

41.4%

De ve lopm e nt Ope rati ons vi a allocate d costs

Oth er Fees for Service (Internal P rojects) Fe e s e arne d for Spe ci ali ze d Mai nte nance Se rvi ce s Re ntal Incom e 555 Mai n Stre e t Offi ce (Othe r Program s)

711,272

4.6%

Fees for Service and Oth er Revenue (External P rojects) Spe ci ali ze d Mai nte nance fe e s charge s

40,000

0.3%

Othe r Re ve nue for Adm i ni strati on Ope rati ons

30,000

0.2%

Reserves or Appropriations (Internal P rojects) Ce ntral Offi ce Cost Ce nte r Offse t

304,307

2.0%

Spe ci ali ze d Mai nte nance

985,105

6.4%

53,833

0.4%

NRHA Re nt Proje ct Com m uni cati ons & Gove rnm e nt Re lati ons Total Revenue

439,366

2.9%

15,351,494

100.00%

Approved Expenditures Description Labor Em ploye e Be ne fi ts Manage m e nt Fe e Expe nse Othe r Adm i ni strati on Ge ne ral Expe nse Copi e rs Equi pm e nt Inform ati on Se rvi ce s Insurance - Li abi li ty Insurance - Prope rty Mai nte nance Re nt 910 Bui ldi ng Re nt 555 Mai n Stre e t (COCC)

Amount % $ 6,710,412 2,575,374 982,815 621,044 4,025 43,619 164,430 31,657 44,229 24,418 2,358,300 277,395 1,188,530

T e le phone T rai ni ng and T rave l

44.0% 16.9% 6.4% 4.1% 0.0% 0.3% 1.1% 0.2% 0.3% 0.2% 15.5% 1.8% 7.8%

12,575

0.1%

107,002

0.7%

Uti li ti e s

71,373

0.5%

Ve hi cle

46,500

0.3% 100.00%

Total E xpenditures

15,263,698

E xcess/Deficit

87,796

NRHA FY2019 Approved Budget

167

June 2019

Central Office Cost Center Summary by Functional Group TOTAL

Executive & Administrative Offices

Line Item Descriptions Resources City Grant Interest Income Management Fee (Interproject) Other Fees (Interproject) Other Fees for Service (External Source) Other Revenue (External Source) Appropriation of (this project) Reserves Transfer from Other Projects Total Resources Expenditures Capital & Multiyear Programs Copiers Employee Benefits Equipment General Expense Insurance - Liability Insurance - Property Interest Expense Information Technology Labor Maintenance Management Fee Expense Other Administration (direct) Protective Services Rent 910 Building Rent 555 Main St. Building COCC Rent 555 Main St. Building Other Programs Telephone Transfer to Other Programs Training and Travel Utilities Vehicle Total Expenditures Excess/Deficit

NRHA FY2019 Approved Budget

$ $

54,000 30,000 304,307 388,307

Housing Management COCC -

Development Management COCC -

23,846 1,123,039 3,550 23,017 3,029,336 381,586 277,063 47,853 38,750 4,948,040

5,351 290,849 700 1,750 870,325 112,575 136,466 32,512 1,450,528

4,313 500 400 7,499 6,289 37,779 7,173 7,750 71,703

(4,559,733)

(1,450,528)

(71,703)

168

Mutual Income COCC 6,081,964 6,081,964 6,081,964

Executive, Administrative, Housing Mgmt, Mutual Income

6,135,964 30,000 304,307 6,470,271 33,510 1,413,888 4,750 25,167 3,899,661 501,660 6,289 451,308 87,538 46,500 6,470,271 -

June 2019

Central Office Cost Center Summary by Functional Group

Expenditures Capital & Multiyear Programs Copiers Employee Benefits Equipment General Expense Insurance - Liability Insurance - Property Interest Expense Information Technology Labor Maintenance Management Fee Expense Other Administration (direct) Protective Services Rent 910 Building Rent 555 Main St. Building COCC Rent 555 Main St. Building Other Programs Telephone Transfer to Other Programs Training and Travel Utilities Vehicle Total Expenditures

Excess/Deficit

NRHA FY2019 Approved Budget

Specialized Maintenance

555 E. Main Street & Other Programs

Rental Properties 3rd Party Oversight Management Project

6,299,571 100,000 985,105 7,384,676

17,956 711,272 493,199 1,222,427

274,120 274,120

6,428,040 7,010,843 30,000 100,000 304,307 1,478,304 15,351,494

8,799 1,015,814 159,000 44,229 24,418 3,090 2,421,297 2,353,300 982,815 9,500 271,106 11,935 8,000 71,373 7,384,676

1,310 96,040 680 2,500 3,400 255,223 5,000 109,412 737,222 640 11,000 1,222,427

49,632 1,525 134,231 472 464 186,324

43,619 2,575,374 164,430 4,025 44,229 24,418 31,657 6,710,412 2,358,300 982,815 621,044 277,395 1,188,530 12,575 107,002 71,373 46,500 15,263,698

87,796

169

GRAND TOTAL

June 2019

Central Office Cost Center Detail

Admin Services

Line Item Descriptions Resources City Grant Interest Income Management Fee (Interproject) Other Fees (Interproject) Other Fees for Service (External Source) Other Revenue (External Source) Appropriation of (this project) Reserves Transfer from Other Projects Total Resources Expenditures Capital & Multiyear Programs Copiers Employee Benefits Equipment General Expense Insurance - Liability Insurance - Property Information Technology Labor Maintenance Management Fee Expense Other Administration (direct) Protective Services Rent 910 Building Rent 555 Main St. Building COCC Rent 555 Main St. Building Other Programs Telephone Transfer to Other Programs Training and Travel Utilities Vehicle Total Expenditures Excess/Deficit

NRHA FY2019 Approved Budget

$ $

304,307 304,307

AED For Fin & Adm Svc & CFO 15,000 15,000 -

Budget & Compliance

Executive Office

Human Finance Dept Resources

15,000 15,000

54,000 54,000

Information Services -

Procurement -

Assistant Executive Director of Housing

Public Housing Property & Asset Mgmt.

2,796 87,263 234,992 99,259 25,236 1,379 31,000 481,925

35,061 600 116,488 2,000 17,588 3,500 175,237

3,215 138,292 250 412,225 27,079 32,712 2,500 616,273

5,659 72,476 500 206,406 131,762 16,867 1,750 7,750 443,170

6,063 408,765 13,297 1,056,031 23,586 82,544 8,000 1,598,286

1,085 123,003 2,200 6,289 293,503 82,677 29,842 6,000 544,599

2,187 162,464 464,293 12,102 52,370 22,050 715,466

2,841 95,715 3,431 245,398 3,121 19,904 2,674 373,084

114 57,923 500 186,360 4,300 17,822 3,700 270,719

2,387 127,479 200 1,750 382,415 23,662 28,904 10,143 576,940

(177,618)

(160,237)

(616,273)

(428,170)

(1,544,286)

(544,599)

(715,466)

(373,084)

(270,719)

(576,940)

170

June 2019

Central Office Cost Center Detail

Client Services

Line Item Descriptions Resources City Grant Interest Income Management Fee (Interproject) Other Fees (Interproject) Other Fees for Service (External Source) Other Revenue (External Source) Appropriation of (this project) Reserves Transfer from Other Projects Total Resources Expenditures Capital & Multiyear Programs Copiers Employee Benefits Equipment General Expense Insurance - Liability Insurance - Property Information Technology Labor Maintenance Management Fee Expense Other Administration (direct) Protective Services Rent 910 Building Rent 555 Main St. Building COCC Rent 555 Main St. Building Other Programs Telephone Transfer to Other Programs Training and Travel Utilities Vehicle Total Expenditures Excess/Deficit

NRHA FY2019 Approved Budget

$ $

Housing Programs Community Director & Engagement Annual Plan Director -

Development

1,699 65,495 211,106 2,663 26,893 3,019 310,875

1,151 39,952 90,444 1,950 62,847 5,900 202,244

80,000 9,750 89,750

4,313 500 400 7,499 6,289 37,779 7,173 7,750 71,703

(310,875)

(202,244)

(89,750)

(71,703)

171

Mgmt. Fee Public Housing 2,336,505 2,336,505 2,336,505

Mgmt. Fee Project Based Voucher/ RAD Projects

Mgmt. Fee Diggs Phase I

Mgmt. Fee Cottage Bridge

677,414 677,414

115,937 115,937

35,562 35,562

677,414

115,937

35,562

Mgmt. Fee Section 8 847,685 847,685 847,685

June 2019

Central Office Cost Center Detail

Mgmt. Fee Residental Options Inc.

Line Item Descriptions Resources City Grant Interest Income Management Fee (Interproject) Other Fees (Interproject) Other Fees for Service (External Source) Other Revenue (External Source) Appropriation of (this project) Reserves Transfer from Other Projects Total Resources Expenditures Capital & Multiyear Programs Copiers Employee Benefits Equipment General Expense Insurance - Liability Insurance - Property Information Technology Labor Maintenance Management Fee Expense Other Administration (direct) Protective Services Rent 910 Building Rent 555 Main St. Building COCC Rent 555 Main St. Building Other Programs Telephone Transfer to Other Programs Training and Travel Utilities Vehicle Total Expenditures Excess/Deficit

NRHA FY2019 Approved Budget

$ $

35,402 35,402 35,402

Mgmt. Fee Capital Fund 84,318 84,318 84,318

Mgmt. Fee Specialized Maintenance 982,815 982,815 982,815

172

Mgmt. Fee Development 673,981 673,981 673,981

Mgmt. Fee Housing Reinvention 185,147 185,147 185,147

Mgmt. Fee 555 E Main Street 107,198 107,198 107,198

TOTAL Executive, Administrative, Housing, Development, Management Fee

Specialized Maintenance

6,135,964 30,000 304,307 6,470,271

6,299,571 100,000 985,105 7,384,676

33,510 1,413,888 4,750 25,167 3,899,661 501,660 6,289 451,308 7,173 80,365 7,750 38,750 6,470,271

8,799 1,015,814 159,000 44,229 24,418 3,090 2,421,297 2,353,300 982,815 9,500 271,106 11,935 8,000 71,373 7,384,676

June 2019

Central Office Cost Center Detail

555 E. Main Street

Line Item Descriptions Resources City Grant Interest Income Management Fee (Interproject) Other Fees (Interproject) Other Fees for Service (External Source) Other Revenue (External Source) Appropriation of (this project) Reserves Transfer from Other Projects Total Resources Expenditures Capital & Multiyear Programs Copiers Employee Benefits Equipment General Expense Insurance - Liability Insurance - Property Information Technology Labor Maintenance Management Fee Expense Other Administration (direct) Protective Services Rent 910 Building Rent 555 Main St. Building COCC Rent 555 Main St. Building Other Programs Telephone Transfer to Other Programs Training and Travel Utilities Vehicle Total Expenditures Excess/Deficit

NRHA FY2019 Approved Budget

Rental Properties - 3rd Mgmt. Fee - Party Oversight Government Hampton Roads Management Venture Relations Project

$ $

Grand Total

711,272 53,833 765,105

439,366 439,366

17,956 17,956

274,120 274,120

6,428,040 7,010,843 30,000 100,000 304,307 1,478,304 15,351,494

13,178 2,500 200 28,078 5,000 715,009 640 500 765,105

1,310 78,219 680 3,200 213,832 109,412 22,213 10,500 439,366

4,643 13,313 17,956

49,632 1,525 134,231 472 464 186,324

43,619 2,575,374 164,430 4,025 44,229 24,418 31,657 6,710,412 2,358,300 982,815 621,044 277,395 1,188,530 12,575 7,173 99,829 79,123 38,750 15,263,698

87,796

173

June 2019

COCC - Specialized Maintenance Detail Automotive Equipment Fund

Line Item Descriptions Resources City Grant $ Interest Income Management Fee (Interproject) Other Fees (Interproject) Other Fees for Service (Ext. Source) Other Revenue (External Source) Appropriation of (this project) Reserves Transfer from Other Projects Total Resources $

Carpentry Shop

Electronics

Extermination

Grounds

Housing Ops. Bldg

HVAC

Painting

Specialized Maintenance Admin

Sanitation

Tile

Tool Room

Grand Total

1,056,334 1,049,558 40,000 60,000 1,096,334 1,109,558

208,299 208,299

118,914 118,914

329,629 329,629

1,099,031 1,099,031

379,215 379,215

1,106,309 1,106,309

405,217 405,217

27,486 27,486

155,984 155,984

273,400 273,400

90,195 90,195

6,299,571 100,000 6,399,571

41,791 115,279 77,007 47,426 4,536 286,039

21,515 62,649 29,861 25,774 1,080 140,879

61,605 146,177 86,957 60,137 4,284 359,160

224,359 411,877 423,708 169,447 45,470 1,274,861

1,216 7,965 196,697 9,286 11,935 71,373 298,472

185,868 470,287 416,538 193,477 23,350 1,289,520

36,189 97,798 103,832 40,234 1,500 279,553

118,163 1,840 351,317 37,170 131,223 8,513 77,904 7,000 733,130

26,366 55,829 30,809 22,968 135,972

47,980 84,495 174,829 34,761 4,700 346,765

18,436 48,996 8,973 20,157 5,367 101,929

1,015,814 159,000 44,229 24,418 3,090 2,573,627 2,200,969 982,815 18,299 271,106 11,935 8,000 71,373 7,384,676

-77,740

-21,965

-29,531

-175,830

80,743

-183,211

125,664

-705,644

20,012

-73,365

-11,734

-985,105

Expenditures Capital & Multiyear Programs Copiers Employee Benefits Equipment Insurance - Liability Insurance - Property Information Technology Labor Maintenance Management Fee Expense Other Administration (direct) Rent 910 Building Telephone Transfer to Other Programs Training and Travel Utilities Vehicle Total Expenditures

86,755 146,787 159,000 43,013 16,453 1,250 207,951 520,972 241,885 372,703 85,551 151,660 500 35,223 67,692 1,000 876,331 1,262,064

Excess/Deficit

220,003

Electrical

NRHA FY2019 Approved Budget

-152,506

174

June 2019

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175

June 2019

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176

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177

June 2019

F Y 2 0 2 0 C O M P O N E N T U N I T S O V E RV I E W

SUMMARY FY2020 COMPONENT UNITS Budgets for the component units displayed in this section are not part of NRHA’s C o n s o l i d a t e d A n n u a l O p e r a t i n g a n d C a p i t a l B u d g e t ; h o w e ve r , t h e b u d g e t s a r e i nc l u d e d i n t h e A p p r o ve d B u d g e t bo o k d u e t o t h e s i g n i fi c a n c e o f t h e i r o p e r a t i o n a l a n d / o r fi n a n c i a l r e l a t i o n s h i p s w i t h t h e A u t h o r i t y . C u r r e n t l y , a l l c o m p o n e n t u n i t s h a ve a fi s c a l y e a r t h a t be g i n s J a n u a r y 1 s t . T h e c o m p o n e n t u n i t s d i s p l a y e d h e r e a r e : the Monroe Building, Norfolk Community College Campus Corporations (NCCCC), Hampton Roads Ventures LLC., and Mission College Apartments, L.P. The Monroe Building and Norfolk Community College Campus Corporations (NCCCC) are discretely presented component units. Discretely presented component units are entities that are legally separate from the Authority, but for which t h e A u t h o r i t y i s fi n a n c i a l l y a c c o u n t a bl e , o r w h o s e r e l a t i o n s h i p s w i t h t h e A u t h o r i t y a r e s u c h t h a t e xc l u s i o n w o u l d c a u s e t h e A u t h o r i t y ’ s fi n a n c i a l s t a t e m e n t s t o be m i s l e a d i n g o r i n c o m p l e t e . T h e s e c o m p o n e n t u n i t s a r e e xc l u d e d f r o m t h e a u t h o r i t y ’ s t o tals to emphasize they are legally separate from the Authority. T h e A u t h o r i t y a l s o c o n t a i n s v a r i o u s c o m p o n e n t u n i t s t h a t a r e p r e s e n t e d a s bl e n d e d c o m p o n e n t u n i t s . T h e s e a r e c o m p o n e n t u n i t s t h a t h a ve a c t i vi t i e s t h a t a r e m o r e r e lated to the Authority’s business than discrete component units. Two of these bl e n d e d c o m p o n e n t u n i t s t h a t a r e n o t p r e s e n t e d e l s e w h e r e i n t h e bu d g e t bo o k a r e Hampton Roads Ventures LLC., and Mission College Apartments, L.P.

NRHA FY2019 Approved Budget

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June 2019

CHALLENGES Non Applicable.

MAJOR GOALS ï&#x201A;·

Continue operational and maintenance activities.

NRHA FY2019 Approved Budget

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June 2019

HAMPTON ROADS VENTURES, LLC OVERVIEW

FUNDING METHODOLOGY

Hampton Roads Ventures (HRV) is a limited liability company formed in 2003. HRV is a qualified community development entity that holds new market tax credit allocation authority to be used for investment in qualified active low-income community businesses.

The NMTC Program provides tax credit incentives to investors to equity investments in certified Community Development Entities, which invest in low-income communities.

PROGRAM INITIATIVES The goal of the program is to spur revitalization efforts of low-income and impoverished communities.

NRHA FY2019 Approved Budget

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June 2019

HAMPTON ROADS VENTURES, LLC CY16 Actual Revenue: Operating Receipts Subsidy/Grants Admin Subsidy/Grants Program Interest

Administrative and Program Delivery: Labor: Administration Resident Services Maintenance Program Total Labor Other Administration Employee Benefits Management Fee Total Admin and Program Delivery Expenses Program Expenses: Resident Services Utilities Maintenance Housing Assistance Payments Protective Services General Expense Interest Expense Other Total Program Expenses Total Operating Expenses Surplus (Deficit) From Operations NonOperating Expenses: Equipment (Non Expendable/Hardware) Capital Improvements Principal Payment on Debt Distribution of Surplus Cash Total NonOperating Expenses Other Financing Sources and Uses: Interproject Transfers IN(OUT) Interproject Repayments (Advances) Client Repayments (New Loans) Proceeds from Notes Proceeds from Sale of Property Reserves Total Other Financing Sources and Uses TOTAL EXCESS (DEFICIT) Depreciation (Not Included in Totals) Provision For Reserves: Actual Reserves December 31, 2016 Actual Reserves December 31, 2017

CY18 Actual

968,952 1,502 944,761

1,099,535 2,999 1,012,811

906,411 5,339 100,307

830,000 6,500 233,500

1,915,215

2,115,345

1,012,057

1,070,000

276,530 -

260,525 -

288,567 -

340,000 -

276,530 -

260,525 -

288,567

340,000 -

276,530

260,525

288,567

340,000

$ $

1,105,869 1,105,869 1,382,399

913,471 913,471 1,173,996

793,155 793,155 1,081,722

728,370 728,370 1,068,370

532,816

941,349

$ $

$ $ $

532,816

$ $

7,269,125 -

100,000 100,000 841,349 -

8,110,474

Actual Reserves December 31, 2018

Projected Reserves December 31, 2019

NRHA FY2019 Approved Budget

CY19 Budget

Other Total Revenue Operating Expenses:

CY17 Actual

181

(69,665) 530,000 530,000 (599,665)

1,630 1,630

7,510,809 -

7,512,439

June 2019

MISSION COLLEGE APARTMENTS, LP OVERVIEW

FUNDING METHODOLOGY

Mission College Apartments, LP is a tax credit development owned by a limited partnership with NRHA as the general administrative overview. There are 260 units of housing for low-tomoderate income families managed by SL Nusbaum Realty Company.

Tenant payments for rent.

PROGRAM INITIATIVES General operations and maintenance.

NRHA FY2019 Approved Budget

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June 2019

MISSION COLLEGE APARTMENTS, LP (MCA)

Revenue: Operating Receipts Subsidy/Grants Admin Subsidy/Grants Program Interest

CY16 Actual

CY17 Actual

CY18 Actual

CY19 Budget

2,342,291 2,666 266,966

2,281,333 2,728 251,636

2,443,160 9,155 281,917

2,455,000 10,000 285,000

2,611,923

2,535,697

2,734,232

2,750,000

355,502 -

384,832 -

380,303 -

380,000 -

355,502 88,520

384,832 85,961

380,303 92,191

380,000 93,000

444,022

470,793

472,494

473,000

267,408 606,367 969,462 409,073 2,252,310 2,696,332

245,044 477,491 975,065 451,811 2,149,411 2,620,204

260,125 397,106 981,312 469,859 2,108,402 2,580,896

265,000 390,000 985,000 470,000 2,110,000 2,583,000

Other Total Revenue Operating Expenses: Administrative and Program Delivery: Labor: Administration Resident Services Maintenance Program Total Labor Other Administration Employee Benefits Management Fee Total Admin and Program Delivery Expenses Program Expenses: Resident Services Utilities Maintenance Housing Assistance Payments Protective Services General Expense Interest Expense Other Total Program Expenses Total Operating Expenses Surplus (Deficit) From Operations NonOperating Expenses: Equipment (Non Expendable/Hardware) Capital Improvements Principal Payment on Debt Distribution of Surplus Cash Total NonOperating Expenses Other Financing Sources and Uses: Interproject Transfers IN(OUT) Interproject Repayments (Advances) Client Repayments (New Loans) Proceeds from Notes Proceeds from Sale of Property Reserves Total Other Financing Sources and Uses TOTAL EXCESS (DEFICIT) Depreciation (Not Included in Totals)

NRHA FY2019 Approved Budget

$ $

$ $ $

(84,409)

(84,507)

153,336

167,000

89,060 2,255 91,315

97,293 97,293

104,123 104,123

111,590 111,590

49,213

55,410

511,385

512,000

$ $

$ $ $

(175,724)

(181,800)

508,077

505,882

183

June 2019

MONROE BUILDING GOVERNOR’S SCHOOL FOR THE ARTS OVERVIEW

FUNDING METHODOLOGY

Monroe Arts and Education, LP (Monroe AELP) is a historic tax credit development owned by a limited partnership (Monroe AELP) with NRHA as the general administrative overview. The Monroe Building, located at 254 Granby Street, Norfolk, VA, has 52,700 square feet and was originally built in 1915. The building houses facilities serving the Governor’s School for the Arts and the Virginia Stage Company.

Tenant payments for rent.

PROGRAM INITIATIVES  Consolidation of GSA’s administrative and primary educational spaces at the Monroe Building.  General operations and maintenance.

NRHA FY2019 Approved Budget

184

June 2019

MONROE BUILDING GOVERNOR'S SCHOOL FOR THE ARTS (GSA) Approved Cumulative Budget Revenue: Operating Receipts Subsidy/Grants Admin Subsidy/Grants Program - CIP Interest Appropriation of Project Reserves

Administrative and Program Delivery: Labor: Administration Resident Services Maintenance Program Total Labor Other Administration Employee Benefits Management Fee Total Admin and Program Delivery Expenses Program Expenses: Resident Services Utilities Maintenance Housing Assistance Payments Protective Services General Expense Interest Expense Other Total Program Expenses Total Operating Expenses Surplus (Deficit) From Operations NonOperating Expenses: Equipment (Non Expendable/Hardware) Building and Capital Improvements Land Acqusition Principal Payment on Debt Distribution of Surplus Cash Total NonOperating Expenses Other Financing Sources and Uses: Interproject Transfers IN(OUT) Interproject Repayments (Advances) Client Repayments (New Loans) Proceeds from Notes Proceeds from Sale of Property Reserve Deposit of Excess Operating Cash Total Other Financing Sources and Uses TOTAL EXCESS (DEFICIT) Depreciation (Not Included in Totals) Amortization (Not Included in Totals) Provision For Reserves: Actual Reserves December 31, 2016 Actual Reserves December 31, 2017 Actual Reserves December 31, 2018 Projected Reserves December 31, 2019

NRHA FY2019 Approved Budget

CY17 Cumulative Actual

CY18 Cumulative Actual

CY19 Budget

9,741,017

477,416 99,381 -

487,479 110,227 -

497,755 80,740 -

508,251 55,996 -

9,741,017

576,797

597,706

578,495

564,247

Other - Investor Equity Total Revenue Operating Expenses:

CY16 Cumulative Actual

2,652 -

525 -

275 -

2,652 20,444 23,096

525 20,937 21,462

275 21,445 21,720

275 21,969 22,244

122,124 210,995 333,120 356,216

127,199 201,753 328,952 350,414

131,697 197,402 329,099 350,819

133,997 189,957 323,955 346,199

$ $

$ $ $

9,741,017

220,581

247,291

227,677

218,048

9,741,017 9,741,017

76,306 36,700 113,006

130,861 36,216 167,077

135,739 36,216 171,955

143,521 36,216 179,737

(110,227) (110,227) (2,652)

(80,740) (80,740) (525)

(55,996) (55,996) (275)

(38,586) (38,586) (275)

310,801 9,494

310,801 2,517

301,342 2,517

268,587 -

239,100 -

214,356

196,946

$ $

$ $ $

185

June 2019

NORFOLK COMMUNITY COLLEGE CAMPUS CORPORATION OVERVIEW

FUNDING METHODOLOGY

Norfolk Community College Campus Corporation (NCCC) is a non-stock corporation that was organized in 1994 for charitable and educational purposes including developing and maintaining a public educational facility.

NRHA appoints the members of NCCC. The Authority also guarantees the payment of some revenue bonds solely from the source of the revenues. Due to the fee portion of the rent reducing each year, NRHA will contribute funds to NCCC in FY 2018 â&#x20AC;&#x201C; FY 2020 to cover legal and audit fees.

PROGRAM INITIATIVES Lease revenues are expected to equal bond expenditures each year.

NRHA FY2019 Approved Budget

186

June 2019

NORFOLK COMMUNITY COLLEGE CAMPUS CORPORATION (NCCCC)

Revenue:

Net Tenant Rental Revenue

CY16 Actual $

CY17 Actual

CY18 Actual

CY19 Budget

Tenant Revenue - Other

HUD PHA Grants

Other Government Grants

Interest Income

113,631

105,892

73,032

41,200

Proceeds from Notes, Loans and Bonds

610,000

645,000

680,000

720,000

Other Revenue (External Source) Total Revenue

10,750

15,405

11,700

10,200

734,381

766,297

764,732

771,400

Expenditures Administrative and Program Delivery: Labor: Administration Resident Services Maintenance Program

Total Labor Other Administration Other (Interproject Fee for Services) Employee Benefits Management Fees

12,150 -

12,300 -

10,665 -

9,300 -

Total Admin & Program Delivery Exp.

12,150

12,300

10,665

9,300

140,372 2,500 610,000 -

106,497 2,500 645,000 -

71,567 2,500 680,000 -

39,600 2,500 720,000 -

765,022 (30,641)

766,297 -

764,732 -

771,400 -

Program Expenses: Interest Expense Trustee Fees Client (New Loans) Principal Payment on Debt Equipment (Non Expendable/Hardware) Other Capital Expenditures Total Program/Operating Expenses Surplus (Deficit) From Operations

NRHA FY2019 Approved Budget

$ $

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June 2019

BUDGET GLOSSARY The Budget Document contains a variety of terms, phrases, and references to programs that are not generally familiar. Some are unique to governmental budgeting or housing agencies; some are unique to NRHA. This glossary made liberal use of glossaries already compiled by other governmental entities and of NRHA’s independent auditors. In all instances, terms are defined as they are used in NRHA’s budget.

Acquisition – Costs associated with the actual purchase or other acquisition of land.

Account – A separate financial reporting unit for budgeting, management, or accounting purposes. All budgetary transactions (revenue or expenditure) are recorded in accounts. Several related accounts may be grouped together in a fund.

Activity – A specific line item capturing the cost of work performed to accomplish a function, project or program for which a governmental unit is responsible.

Accounting System – The total set of records and procedures which are used to record, classify, and report information on the financial status and operations of an entity or fund.

Administration (also Administrative) – Costs associated with the general management, oversight, coordination, monitoring and evaluation of program. While these costs are not a component of the final work product, they are essential to the accomplishment of program objectives. At NRHA, direct program administration costs are captured in the activity “administration” or “other administration”. Indirect administrative costs are captured in the line called “Allocated Administration Costs”.

Accounts Payable (A/P) - is the obligation that a business owes to its creditors for buying goods or services. It is the unpaid invoices, bills, or statements for goods or services rendered by outside contractors, vendors or suppliers. Accounts Receivable (A/R) - Money which is owed to a company by a customer for products or services provided on credit. A specific sale is generally only treated as an account receivable after the customer is sent an invoice.

Advances – The temporary loan of cash from one program to another in anticipation of the future repayment. Allocations – The allowable costs of services provided by a governmental unit on a centralized basis to its departments and units; these central service costs are accumulated during the month then distributed (or allocated) to the appropriate programs based on the relative benefit received –

Accrual – A method of accounting that recognizes the financial effect of transactions, events and inter-fund activities when they occur, regardless of the timing of related cash flows.

NRHA FY2019 Approved Budget

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June 2019

Annual Contributions Contract (ACC) – Each public housing project is covered by an ACC which is executed between HUD and the PHA and sets forth the specific obligations and responsibilities of each party in the implementation of the Public Housing Program.

as defined by a documented central service cost allocation plan. The services are necessary for the function of the organization as a whole, but cannot be directly assigned to one program. i.e. accounting, computer support, human resources, etc. or are considered more efficient to administer centrally i.e. (liability insurance, office rent, division general office expenses).

Appropriation – An authorization made by NRHA Board of Commissioners, which permits NRHA to incur obligations and to make expenditure of resources. An appropriation is a specified sum of money from a specified fund for a specific purpose.

Amendment – A change to an adopted budget which may increase or decrease a fund total and requires Board of Commissioner approval. American Dream Down Payment Initiative (ADDI) – Provides down payment, closing cost and rehabilitation assistance in the amount of $10K or 6% of the home’s purchase price to eligible individuals to help increase the homeownership rate among minority and lower-income households.

Approved Budget - The financial plan of revenue and expenditures for a fiscal year that are adopted once approved by the Board of Commissioners. Audit – Systematic collection of sufficient, competent evidential matter needed to attest to the fairness of the presentation of the Authority’s or service provider financial statements. The audit tests the Authority’s accounting system to determine whether the internal accounting controls are both available and being used.

Americans with Disabilities (ADA) – Civil rights protection for individuals with disabilities similar to those provided to individuals on the basis of race, color, sex, national origin, age and religion. It guarantees equal opportunity for those with disabilities in public accommodations, employment, transportation, state and local government services and telecommunications.

Authority – Refers to Norfolk Redevelopment and Housing Authority. Available Fund Balance – That portion of a fund balance available within the current period or soon enough thereafter to be used to pay liabilities of the current period.

Administrative Operating Cost - i.e. legal, consultant, sundry admin, office supplies, training, travel, vehicles, employee recognition, printing and reproduction, mileage

Balance Budget – Total revenues equal total expenses.

Administrative Overhead- Fixed Cost associated with doing business. Examples include rent, telephones, PC software, copiers/printers, PC Maintenance.

NRHA FY2019 Approved Budget

Balance Sheet – That portion of the Authority’s financial statement that discloses the assets, liabilities and reserves. The sheets reflect the

191

June 2019

balances of specific government funds as of specific date.

Proposed budget is drafted first. Once it is approved and adopted by the Board, it becomes the “Approved Budget.”

Basis of Accounting – A term used when revenues, expenditures, expenses, transfers, assets, and liabilities are recognized in the accounts reported in the financial statements. Specifically, it relates to timing of measurements made, regardless of nature to the measurement, on the cash, modified accrual or accrual method.

Budget Amendment– A procedure to revise a budget appropriation either by: a) NRHA Board approval via adoption of a supplemental Resolution for any addition appropriation, or b) Chief Executive Officer approval for any interdivisional or inter-fund adjustments.

Beginning/Ending Balance – Cash resources available in a fund from the prior/current fiscal year after payment of the prior/current fiscal year’s expenditures. This is not necessarily cash on hand.

Budget Calendar – Key date schedule NRHA follows in the preparation, adoption, and implementation of the budget. The calendar begins with the issuance of the budget preparation package; ends with adoption of the budget by resolution of the Board of Commissioners.

Blighted Area – Is an area and or structure of a community which constitutes physical, social or economic liabilities. Redevelopment is in the interest of the people of the community and the city.

Budget Document – A bound version of approved budget authorizations presented as a comprehensive financial program.

Board of Commissioners – (BOC) Locally appointed citizens who serve as the direct supervisor and policy makers of a local public agency for a specified term, usually without financial compensation.

Budgetary Control – The control or management of a governmental unit or enterprise in accordance with an approved budget for the purpose of keeping expenditures within the limitations of authorized appropriations and available revenues.

Bond Fees – Funds received to pay down principal debt of a loan.

CHDO Support & Administration – Expenditures relating to the Community and Housing Development Organization, a nonprofit housing provider.

Broad Creek Village Center - Includes the former site of the Roberts Village public housing community that has been cleared and is awaiting development.

Capital Budget – A plan of expenditures which results in the acquisition of or addition to fixed assets, and the means of financing these expenditures.

Budget (Operating) – A plan of financial operation embodying an estimate of proposed expenditures for a given period (typically a fiscal year) and the proposed means of financing them.

NRHA FY2019 Approved Budget

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June 2019

Capital & Direct Cost- money spent by an organization for long-term improvements as well as money not consumed directly by the grantee. Examples are Capital Expenditures for Public Housing and Direct program Costs such as Planning, A&E, Acquisition, Relocation, Demolition, Site Improvement, and HCV Payments

Capital Improvement Program Neighborhood (CIP-N) – A short-range plan, usually four to six years, which identifies neighborhood projects, provides a planning schedule and identifies options for financing the plan. Central Service Cost Allocation Plan – The documentation identifying, accumulating, and allocating allowable costs of services provided by a governmental unit on a centralized basis to its departments and units. The costs of these services may be allocated or billed to users.

Capital Equipment – Chattels which have a useful life of more than five years and a unit cost of at least $5,000.00.

CEO Contingency - Funds activities that support internal and external initiatives that are otherwise ineligible under Federal programs.

Capital Expenditures – Cost that is incurred in the acquisition or improvement of property asset. Capital Fund Admin. - Management fee provided by HUD for the oversight for physical improvements to all public housing communities as well as some supportive services.

Chart of Accounts – The list of general ledger account numbers that subdivide basic accounting equations, with associated titles and definitions, used by an entity for posting to its general ledger.

Capital Fund Program – Provides funding for physical and management improvements to all Public Housing Authorities. Capital Improvement – A permanent addition to NRHA’s assets (for operations), including the design, construction, or purchase of land, buildings, or facilities, or major renovations.

Choice Neighborhoods Initiative – A competitive grant program that provides flexible resources for local leaders to help transform highpoverty, distressed neighborhoods into mixedincome neighborhoods with the affordable housing, safe streets, and good schools every family needs.

Capital Improvement Program (CIP) – A plan for capital expenditures to provide long lasting physical improvements to be incurred over a fixed period of several future years.

COCC Admin - A collective group of business units of the Authority which provide corporate oversight, specialized services, and professional support.

Capital Improvement Program Independent (CIP-I) – A short-range plan, usually four to six years, which identifies independent projects, provides a planning schedule and identifies options for financing the plan.

COCC Specialized Maintenance - A collective group of specialized trades that perform maintenance services primarily to the public housing communities.

NRHA FY2019 Approved Budget

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June 2019

Community/Property Operating Cost - i.e. insurance for property and liability, utilities, maintenance

development corporation that serves the needs of low-wealth and low-income individuals and families in the southeast by creating affordable, green, sustainable housing opportunities and services for them.

Cost of living Adjustment (COLA) –- An increase in salary for employees intended to adjust for inflation.

Comprehensive Grant Program (CGP) – A formula-determined federal grant program which is aimed at funding capital improvements and correction of construction and management deficiencies in the federally-assisted housing communities to ensure their continued availability to low and moderate income families.

Collateralized Mortgage Obligations – A security backed by a pool of pass-through rates structured so that there are several classes of bondholders with varying maturities, called tranches. The principal payments from the underlying pool of pass-through securities are used to retire the bonds on a priority basis as specified in the prospectus.

Contingency – An authorized budgetary set aside for emergencies or unforeseen expenditures during the fiscal year.

Come Home To Norfolk, Now (NOW) – is a program designed to encourage and maximize investment in Norfolk’s neighborhoods and to spread the word about the breadth and quality of the city’s housing

Contributed Capital – An equity account that shows the amount of permanent fund contributed to that fund.

Community Development – A special Revenue Fund which accounts for the implementation and administration of the Federal Community Development Block Grant Program and the cost associated with the delivery of financial services for the Community Development loan and grant and rental rehabilitation program.

Core Business Services - A newly created project to expense certain services (IT, Parking, Employee Assistance Program and Telephone Lines) determined to be an administrative burden to distribute to the program. Cost – An amount as determined on cash, accrual, or other basis acceptable to the Federal awarding or cognizant agency. It does not include transfers (permanent nor temporary) to a general or similar fund.

Community Development Block Grant Program (CDBG) – A federal program which allocates block grants to local governments to be used to meet housing and community development needs. NRHA applies to the City of Norfolk each year to obtain funding to perform particular projects for the city. Community Housing (CHP) - a 501(c)(3)

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Davis-Bacon – Statutory requirement that persons working on federally supported projects is paid at least a minimum of prevailing wage. Debt Service Fund – The Debt Service Fund accounts for transactions related to resources

Partnership community

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obtained and used for the payment of interest and principal on long-term general obligation debt, except for the debt payable by the propriety Fund Types. Resources are principally derived from contributions from HUD.

drawing funds against a letter of credit, a federal grant, or an escrow account). Eminent Domain – Authority of a government agency to acquire property for public purposes. This is also known as condemnation.

Deficit – The excess of expenditures over revenues (cash basis).

Employee (or Fringe) Benefits - Amounts paid on behalf of employees, not included in the gross salary. Examples are group health or life insurance payments, contributions to employee retirement, Social Security taxes, workers’ compensation payments and unemployment insurance payments.

Demolition – Costs related to the removal of a structure, existing paving, foundations, utilities and related infrastructure. Department – A defined segment of NRHA employees and equipment assigned overall management responsibility for a group of related operations within a functional area.

Encumbrance – The legal commitment of appropriated funds to purchase an item or service. To encumber funds means to set aside or commit funds for a future expenditure.

Department of Housing and Urban Development (HUD) – The Federal agency responsible for administering the bulk of federal funds allocated to housing and economic development programs.

Enterprise Funds – Enterprise Funds are used to account for operations that are financed and operated in a manner similar to private business enterprises – where the intent of the Authority is that the costs (expenses, including depreciation) of providing goods and services to the general public on a continuing basis will be recovered primarily through user charges. The measurement focus is upon determination of net income, financial position, and changes in financial position.

Depreciation – 1) Expiration in the service life of a capital assets attributable to wear and tear, deterioration, action of the physical elements, inadequacy or obsolescence. 2.) That portion of the cost of a capital asset which is charged as an expense over the expected usable life of the asset. Disposition – The cost associated with acquired property, such as legal fees and surveys, and routine maintenance.

Equipment – An article of tangible personal property that has a useful life of more than 2 years and a cost of $500 or more.

Division – A group of departments that make up the various units which are functionally unique in their service delivery:

Estimated Revenue – The amount of revenue projected to be collected during the fiscal year.

Drawdown - The withdrawal of funds from an account established for a specific purpose (e.g.,

NRHA FY2019 Approved Budget

Expendable – Property that is consumed, loses its identity, or becomes an integral part of other

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property and has an expected life of less than one year, with a cost of under $500(example: materials and supplies).

lead to economic independence and selfsufficiency. Federal Insurance Contributions Act tax (FICA) – Mandates that an employer withhold a set percentage of an employee’s pay each pay period and requires that the employer match the employee’s amount and contribute the money to the Social Security Trust Fund.

Expenditure/Expense – Decreases in net financial resources. Refers to the outflow of funds paid in acquiring an asset, goods, or services which requires current or future use of current assets. External Source – A source outside of NRHA.

Fees for Service & Other Income (External Projects) – are funds earned by COCC functions when services are rendered to non-NRHA entities, i.e. rental of office space, maintenance of small equipment.

Extraordinary Maintenance - Work that is not recurrent, is substantial in scope, and is performed in connection with specific work programs. Whether performed by the owner or regularly employed staff, specific labor force, or under contract, the expenditure involved would otherwise materially distort the level trend of ordinary maintenance expense.

Fiscal Year (FY) – The twelve (12) month period for recording financial transactions. NRHA’s fiscal year begins July 1st and ends June 30th. Fiscal Year-to-Date (FYTD) – A total of all activity from the first day of the fiscal year (July 1) to the date the information was last updated.

Fair Labor Standards Act (FLSA) – Requires most employers in the United States to comply with minimum wage and hour standards. It requires overtime payment for employees working more than 40 hours per work week, employment limitations for children and mandated record keeping by employers.

Fixed Assets – Assets of long-term character which are intended to continue to be held or used, such as land, buildings, machinery, furniture and other equipment.

Family Investment Center (FIC) – Located in Calvert Square, it provides the public housing communities with a variety of sources and support such as the Family Resource Center, Youth Center, Elderly Programs and the Early Childhood Education Program. It is a unique partnership between several public and private agencies.

Fund – An independent fiscal and accounting entity with a self-balancing set of accounts recording cash and/or other resources together with all related liabilities, obligations, reserves, and equities which are segregated for the purpose of carrying on specific activities or attaining certain objectives.

Family Self-Sufficiency (FSS) – A HUD program that encourages communities to develop local strategies to help families living in subsidized housing obtains employment that will

Fund Balance – The excess of an entity’s or fund’s assets over its liabilities and is therefore also known as surplus funds. A negative fund balance is sometimes known as a deficit.

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Funding Gap - The amount by which expenditures exceed revenues for a particular program or project.

procedures necessary to define accepted accounting practices at a particular time. They include not only broad guidelines of general applications, but also detailed practices and procedures. The GAAP provides a standard by which to measure financial presentations. The primary authoritative body on application of GAAP to state and local government is the Government Accounting Standards Board (GASB).

Fungible – a commodity that is freely interchangeable with another in satisfying an obligation. General Fund (GF) – The fund is a contractual agreement between the City and NRHA which provides additional funds for staffing neighborhood initiatives and special projects.

Goal – The milestone the program or organization aims to achieve.

General Expense – An expense not directly connected with any single department.

Government Relations (Formerly Communications and Marketing) - The department oversees development, planning, implementation and integration of all communications and marketing strategies in support of NRHA’s initiatives and coordinates liaison activities for legislative matters.

General Governmental Revenue – The revenue of government other than those derived from and retained in an enterprise fund. General Obligation Bonds – Bonds that finance a variety of public projects such as streets, buildings, and improvements; the repayment of these bonds is usually made from secondary property taxes, and these bonds are backed by the full faith and credit of the issuing governmental body.

Grant – A contribution by the government or other organization to support a particular function. Grants may be classified as either categorical or block depending upon the amount of discretion allowed to the grantee.

General Operating Expenditures – Expenses incurred for administration, maintenance, establishment of reserves and other costs and charges (including, but not limited to payments in lieu of taxes and operating improvements) which are necessary for the operation of a project.

HUD – see Department of Housing and Urban Development Hard Cost – The costs directly associated with the construction of a development, including labor, materials, general contractor, profit and contingencies.

Generally Accepted Accounting Principles (GAAP) - Uniform minimum standards and guidelines for financial accounting and reporting. These principles govern the form and content of the financial statements of an entity. The GAAP encompasses the conventions; rules and

NRHA FY2019 Approved Budget

Home Investment Partnership Program (HOME) – The largest Federal block grant to state and local governments designed exclusively to create affordable housing for low-income

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Housing Opportunities for Persons With AIDS (HOPWA) - A program dedicated to the housing needs of low-income persons living with HIV/AIDS and their families.

households.. The program is funded under Title II of the National Affordable Housing Act of 1990. Homeownership Opportunity Program – A housing program administered by NRHA that offers low income housing to qualified individuals under a program of ‘rent with option to buy.

Housing Quality Standards (HQS) – housing standards defined by HUD to establish minimum quality criteria necessary for the health and safety of program participants.

Hope VI – A grant to assist Public Housing Authority’s in improving the living environment for public housing resident of severely distressed public housing projects through the demolition, rehabilitation, reconfiguration, or replacement of obsolete public housing projects.

Improvements – The necessary changes to a parcel(s) of land that is required for this future development. These often include modifications of the roadways, water and sewer mains, and the parcel capacity. Income – A term used in proprietary fund-types accounting to represent, (1) revenues or (2) the excess of revenues over expenses.

Housing Assistance Payments (HAP) - That portion of rent subsidize by the Section 8 program for eligible households in the private sector.

Indirect Cost – A cost that is not directly related to the production of a specific, good or service, but that is indirectly related to a variety of goods or services.

Housing Choice Voucher Program (HCVP) – A program that assists very low-income families, elderly, and the disabled afford decent , safe and sanitary housing in the private market by: providing “tenant-based” rental assistance vouchers for tenants to move from one unit meeting housing quality standards to another (assistance stays with the tenant); allowing individuals to apply their monthly voucher towards the purchase of a home; and allowing part of the program funding to be used for “project-based” rental assistance vouchers for a specific number of units in a building (assistance stays with the unit).

Infrastructure – Public improvements which support development, including street lights, sewers, flood control facilities, water lines, gas lines, telephone lines, etc. Interest Expense – The cost of borrowing funds in the current fiscal year. Interest Income - Income generated from investments. Internal Control – A process, affected by the management and other personnel of an entity, designed to provide reasonable assurance regarding the achievement of objectives in the following categories: (i) effectiveness and efficiency of operations and programs (ii)

Housing Choice Voucher (SRO-Single Room Occupancy) – Housing Choice Vouchers that assist homeless participants obtain housing in a single room occupancy facility.

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Low Income Housing – Encompasses the revenues and expenditures of the Authority’s federally aided housing projects, the Comprehensive Improvement Assistance Program, and the Comprehensive Grant Program.

reliability of information and financial reporting, and (iii) compliance with applicable laws and regulations. Internal Service Funds – Internal Service Funds provides a means to account for the financing of goods or services provided by one department to other departments within the Authority on a costreimbursement basis.

Low Income Public Housing (LIPH) – refers to residencies for individuals or families with low annual household income. The purpose of low income housing is to provide places for people to live at a reasonable cost for them to afford.

Inter-project fee for services – A monetary charge billed to one project’s account for a service that has been provided by another project.

Low Income Residents – Families (or single persons) whose income does not exceed 80percent of the median income for the area.

Inter-project Transfers – Monies transferred from one fund to another. These transfers may finance the operations or another fund or to reimburse the fund for certain expenditures.

Low Rent Housing Program – This program is conventional public housing whereby the Federal Governmental provides the funds to acquire or build housing for low-income people. The Authority owns and operates the units.

Investment – The outlay of money, usually for income or profit. Labor - wages paid to workers in a specific job.

Maintenance – The activities that provide routine care and upkeep of NRHA’s housing projects. These expenditures include, labor, materials, supplies, contracts and equipment used in connection with routine maintenance.

Leverage – refers to the use of debt to supplement investment Line-Item Budget – A budget that lists each expenditure category (Administrative salaries, Fringe Benefits, etc.) separately, along with the dollar amount budgeted for each specified category.

Management Fee Project - Asset management and bookkeeping fees received for services rendered for privately managed properties.

Local Development Fund (LDF) – This fund is used as working capital to support development efforts. Advances are made from this fund when shortfalls occur in the CDBG and CIP funding sources by the City of Norfolk.

Management Fees (Internal Projects) – Groups amounts tendered to cover services that may not be directly identifiable with the programs benefited i.e. executive office staffing and office administration, bookkeeping, asset management oversight, maintaining computer infrastructure, image management, preparing for audits.

Long-Term Debt – Debt with a maturity of more than one year after the date of issuance.

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Management Improvement Cost – Cost to implement programs to increase the Authority’s efficiency, reduce waste, increase the safety and security of the residents, and afford the residents the opportunity to break generation of poverty.

NOW (Come Home to Norfolk Now) - is designed to encourage and maximize investment in Norfolk’s neighborhoods and to spread the word about the breadth and quality of the city’s housing. Specifically, the initiative is about strengthening neighborhoods, broadening the housing market through new housing and rehabilitation, creating new programs and providing financial incentives for home ownership and improvements.

Mandated – A requirement, usually by Federal law. Mission Statement – A mission statement outlines what the organization, department or program is now. It focuses on today; it identifies the customer(s); it identifies the critical processes; and it states the level of performance.

NRHA Homebuyer Assistance – This affordable housing initiative provides assistance to those who may not be able to realize the opportunity of homeownership on their own. NRHA makes the homeownership opportunity available to those who are low and moderate income.

Mixed-Finance – Refers to the combination of public housing funds with other government and private funds to develop low income and public housing authorized to public housing authorities by 24CFR 941.

Neighborhood Stabilization Program (NSP) – Established for the purpose of stabilizing communities that have suffered from foreclosures and abandonment, the NSP provides for the purchase and redevelopment of foreclosed and abandoned homes and residential properties.

Mixed-Income – Refers to a resident mix that includes families with various incomes levels within one development. Mixed incomes developments combine public housing families with other residents in order to decrease the economic and social isolation of these families.

Net Assets – The difference between assets and liabilities.

Modernization (Public Housing) – The process of upgrading public housing developments when the local housing authority and HUD deem that the physical condition, location, and outmoded management policies in specific developments adversely affect the quality of living of the tenants.

Net Income – Excess of revenue over outlays in a given period of time (including depreciation and other non-cash expenses). Net Operating Income (NOI) – A company's operating income, after operating expenses are deducted and before income taxes and interest are deducted. If this is a positive value, it is referred to as net operating income, while a negative value is called a net operating loss (NOL).

Money Follows the Person (MFP) – Helps people transition from an institution such as a nursing facility, to community living in an apartment, private home or small group setting.

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New Loans – An initial financial transaction in which one party (the lender) agrees to give another party (the borrower) a specific amount of money with the expectation of total repayment. The specific terms of the new loan are often spelled out in the form of a promissory note or other contract.

connection with the ownership or operation of a project or program.

Non-expendable – Property which has a continuing use, is not consumed in use, is of a durable nature with an expanded service life of one or more years, and has an acquisition cost of $500 or more.

Operating Subsidy - Subsidy paid by the federal government to a local housing authority to compensate for the limitation on rent of 30% of a tenant's adjusted monthly income; a result of the Housing and Urban Development Act of 1970. The operating subsidy funds-the amount of the deficit between rents and expenses up to the difference between the annual contributions paid the authority by the federal government.

Operating Revenue – Fund revenues that are directly related to the fund’s primary service activities. These revenues consist primarily of user charges for services.

Non-Operating Expenses – The cost of services that are not directly attributable to a specific program or operation. An example would be debt service obligations.

Operating Transfers – Legally authorized transfers from a fund receiving revenue to the fund through which the resources are to be expended.

Non-Operating Revenues – The income received that is not directly attributable to providing a service. An example would be interest on cash in banks or investments.

Organizational Structure – The offices, divisions, branches, etc. established within an entity based on responsibility whether functional or program related.

Objective – Something to be accomplished in specific, well defined, and measurable terms and is achievable within a specific time frame.

Other Administration – Expenses for which no specific account is prescribed, such as office supplies, stationary, postage and the like.

Operational Cost - routine cost of running a business Operating Budget – is the portion of the budget which pertains to daily operations. The operation budget appropriates for such expenditures as personal, supplies, utilities, materials, travels and fuel.

Other Fees for Service (Internal Projects) – are tendered for program identifiable, direct use of COCC provided services i.e. rent base on office square footage, charge for actual time and material spent on maintenance job, pc software licensing fees.

Operating Income – Excess of operating revenue after deducting operating expenses.

Other Financing Sources - A category of revenue which includes: long-term debt proceeds,

Operating Receipts – All rent, revenue, income and receipts accruing from, out of or in

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proceeds from the sale of general fixed assets, and operating transfer in.

position may be regular or temporary, occupied or vacant.

Other Financing Uses – A category of appropriations, which include fund operating transfers- out and the amount of refunding bond proceeds deposited with the escrow agent.

Preventive Maintenance - Maintenance action taken on the basis of regular, scheduled methodical inspections to avoid or minimize future costly measures.

Other Income - Income resulting from circumstances that do not occur during the normal course of operation.

Principal Payment on Debt – Payment made toward the principal balance owed on long term debt.

Other Operating Expenses – Fund expenses that are directly related to the fund’s primary service activities.

Privately Managed Earnings - Budget year net revenue from privately managed properties (Merrimack, Oakmont) that can be used to support other NRHA programs.

Parcel – A lot or tract of land. Pay-As-You-Go – A financial policy by which capital outlays are financed from current revenues rather than through borrowing.

Proceeds from Notes, Loans and Bonds – Amounts received as a result of borrowing funds using a note payable, entering into a loan agreement and/or from the issuance of bonds.

Per Unit Month (PUM) – Average monthly income and/or expense for each unit of housing operated.

Proceeds from Sale of Property - Amounts received as a result of a sale of fixed assets. Program Budget – Budget that focuses on choices and information in terms of purpose and related activities rather than the organizational units, or object classes of expenditure.

Performance Budget – Budget that focuses on activities rather than line items. Workload and unit cost data are collected in order to assess efficiency of services.

Program Delivery – See Administration, allocations and fringe benefits. Labor and fringe associated with direct program activities.

Performance Funding System – Formula used to calculate the amount of operation subsidies required by each public housing authority to operate its public housing units.

Program Delivery Costs – Staff and overhead costs directly related to carrying out activities eligible under the CDBG program.

Performance Indicators – Specific quantitative measure of work performed as an objective of the department.

Program Fund Types – The classification used to account for the Authority’s ongoing in the private sector. All assets, liabilities, equities, revenues,

Position – The aggregate of duties and responsibilities performed by one person. A

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expenses and transfers government’s business act.

relating

the

under a state or local program having the same general purposes as the federal program. Distinguished from privately financed housing, regardless of whether federal subsidies or mortgage insurance are features of such housing development

Project Area – Area that is designated in the redevelopment plan for redevelopment and revitalization. Project Based Rental Assistance (PBRA) Project-based contract administered by HUD’s Office of Multi-family Housing that ties rental assistance to specific units in a property.

Public Housing Agency (PHA) - Any state, county, municipality, or other governmental entity or public body (or agency or instrumentality thereof) which is authorized to engage in or assist in the development and operation of low-income housing.

Project Based Voucher (PBV) – part of the Housing Choice Voucher (HCV) program funding can be used for contracts that tie the HCV funding to a specific number of units in a building. The assistance stays with the unit after a tenant moves out.

Public Housing Assessment System (PHAS) – A system which measures the performance of a public housing agency Public Housing Development – Represents funding under the Family Self Sufficiency Program.

Project Units – Dwelling units within a defined project’s area. Proprietary Fund Types – The classification used to account for the Authority’s ongoing activities that are similar to those often found in the private sector. All assets, liabilities, equities, revenues, expenses and transfers relating to the government’s business activities are accounted for through proprietary funds. The Generally Accepted Accounting Principles used are generally those applicable to similar business in the private sector and the measurement focus is on determination of net income, financial position and changes in financial position.

Public Housing Management Assessment Program (PHMAP) – Implements section 502 (a) of the National Affordable Housing Act of 1990 (NAHA) and evaluates the performance of public housing agencies (PHAs) in major areas of management operations. PHMAP provides an objective system of measuring PHA performance using standard criteria for all PHAs. Public & Indian Housing Information Center (PIC) – A system that provides for the timely and accurate submission of information from housing authorities to HUD.

Protective Services – Expenditures for services relating to providing protective services to the projects and tenants of NRHA.

PRIDE – NRHA’s recently established purchase/renovation program whose goal is to acquire houses in good condition which is offered to developers for comprehensive renovation and resale.

Public Housing (PH) - Housing assisted under the provisions of the U.S. Housing Act of 1937 or

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Rental Assistance Demonstration (RAD) - Is a HUD program that allows the conversion of properties from conventional public housing support under Section 9, with traditional capital fund subsidies and operating fund subsidies, to Project based Section 8 program with a Housing Assistance Payment (HAP) contract. PHAs considering RAD can choose to convert public housing units to one of two types of long-term, project-based Section 8 rental assistance contracts: Project-Based Vouchers (PBV) or Project-Based Rental Assistance (PBRA).

and some lenders have also used the expertise of local housing agencies and nonprofit organizations to help manage the rehabilitation processing. Relocation – The effort to assist and facilitate rehousing of families, individuals, businesses or organizations displaced due to redevelopment activities. Relocation Assistance – Relocation payments provide assistance to families, individuals, businesses and non-profit organizations displaced as a result of redevelopment activities.

Real Estate Assessment Center (REAC) – is the agency responsible for providing accurate, credible and reliable assessments of HUD’s real estate portfolio.

Reserve – An account used to indicate that a portion of a Fund’s balance is restricted for a specific purpose.

Redevelopment – Planning, development, replanning, redesign, clearance, reconstruction, or rehabilitation of all or part of a project area.

Reserves or appropriations –Cash balances on hand accumulated from prior years operations, consisting of recaptured capital costs through depreciation or the provision of COCC working..

Redevelopment Agency – The governing body created to designate redevelopment project areas, supervise and coordinate for a project area and implement the development program.

Resident Services - Expenditures for services provided for resident families that contribute to achieving the social objectives of the low-income housing program including community agency referrals on family welfare, health, job training, placement and counseling.

Redevelopment Plan – Plan for revitalization and redevelopment of land within the project area in order to eliminate blight and the conditions which caused it.

Residual Receipts – The amount by which operating receipts exceeds allowable operating reserves.

Rehabilitation – Modification an existing structure through improvements that correct any code violations involving health and safety issues.

Restricted Funds – Funds that may only be used for certain purposes.

Rehabilitation Reserve Account– Section 203(k) program is HUD’s primary program for the rehabilitation and repair of single family properties. Housing agencies have designed programs, specifically for use with Section 203(k)

NRHA FY2019 Approved Budget

Resources - For budget purposes, NRHA classifies funds available to be spent in the form of revenue, reserves, and/or earnings

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Retained Earnings – An equity account reflecting the accumulated earnings of an Enterprise or Internal Service Fund

opportunities generated by certain HUD financial assistance shall, to the greatest extent feasible, and consistent with existing Federal, State, and local laws and regulations, be directed toward low and very low income persons, particularly those who are recipient of government assistance for housing, and to business concerns with provides economic opportunities to low and very lowincome persons.”

Revenue – Funds the government receives as income. It includes such items as receipts from other government, grants, shared revenues and interest income. Revenue Bonds – Bonds usually sold by governments for constructing projects that will produce revenue pledged to pay the principal and interest of the bond.

Section 3 Resident – A public housing resident or an individual who resides in the metropolitan area or non-metropolitan country in which the section covered assistance is expended.

Revised Budget – The Adopted Budget as amended by the Board of Commissioners to show compatibility as a result of shifts in programmatic or functional responsibilities. It is also a procedure utilized to revise established budgets to meet inter-departmental or inter-fund adjustments.

Section 8 Exiting Certificates – A type of assistance provided in the Section 8 Program. Section 8 Housing Vouchers – A type of assistance provided to low-income persons/families.

Risk Management – Organized attempt to protect, in the most economical method, a government’s assets against accidental loss..

Section 8 (HCV) Program – A federal housing program which subsidizes the rent of eligible households in the private market. The government makes Housing Assistance Payments to private landlords for the difference between fair market rent and what the family can afford to pay.

Section 202 – Section 202 mandates demolition of certain “distressed” developments that cannot be revitalized for less than the cost of vouchers. Under Section 202, demolition is required when the monthly per unit cost to renovate and maintain any contiguous property with more than 300 units and with a vacancy rate in excess of 10 percent exceeds the monthly cost of housing.

Site Improvements – Activities performed on a site that prepares it for its intended use. For example, site clearance, drainage, grading, sidewalks, landscaping, street and alleys, curbs and gutters, fencing and exterior lighting.

Section 3 – The purpose of Section 3 of the Housing and Urban Development Act of 1968, as amended by Section 915 of the Housing and Community Development Act of 1992 is to “ensure that employment and other economic

NRHA FY2019 Approved Budget

Small and Disadvantaged Business Unit (SADBU) – Office in most government agencies responsible for assisting small and disadvantaged businesses obtain government contracts.

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Soft Cost - Non “brick and mortar” cost incurred in the development of a project, including third party expenses such as design and legal fees, taxes, insurance, construction loan debt service, developer overhead and profit, etc.

Subsidy/Grants Program - Funding from Federal, State and Local governments usually for a specific purpose and time period that are limited to defined projects or activities. Surplus – Unspent funds at the end of the year.

Sources of Revenue – Revenues are classified according to their source, or point of origin.

Survey & Planning – The process of ascertaining the area dimensions and location of a piece of land and the long term development of a piece of land, such as land use, housing, and conservation.

Special City Projects – Accounts for revenues received from the City of Norfolk and the expenditures incurred for specific capital improvement projects. These projects are identified by the City of Norfolk.

Tax Credit Residential Services - Housing supportive services provided to Grandy Revitalization and Franklin Arms residents above and beyond the tax credit agreement.

Special Revenue Funds – Special Revenue Funds account for resources earmarked for specific purposes by law or contractual provisions. Expenditures include those for lowincome housing, administration and capital outlay; in addition, various grants are accounted for in this fund type in accordance with the respective grant provisions.

Tax-Exempt Securities – An obligation whose interest is tax exempt. Tenant-Bases Rental Assistance (TBRA) –Is a rental subsidy that helps individual households afford housing costs such as rent, utility costs, security deposits, and/or utility deposits.

Statement of Changes in Financial Position – The basic financial statement which presents information on the amount of the sources and uses of an entity’s working capital during an accounting period.

Tax Increment Financing (TIF) – Public financing method used in many countries, including the United States, as a subsidy for redevelopment, infrastructure and community improvement projects. Similar or related value capture strategies are used around the world.

Strategic Direction Setting Team – A committee formed from four departments within the Executive Office reviewing the Strategic Plan and identifying key projects to set direction for NRHA.

Tranche – One of several related securities offered at the same time. Tranches from the same offering usually have different risk, reward, and/or maturity characteristics.

Subsidy/Grants Admin - Funding from Federal, State and Local governments received in the current fiscal year to cover operating cost.

NRHA FY2019 Approved Budget

Turn Unit – Refers to the turnover of a unit from one resident to another and the effort involved in making a unit ready for a new resident after the previous resident moves out.

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Unencumbered Balance – Refers to the amount of funds still available for future purposes.

Very Low-Income Persons – Families (or single persons) whose incomes do not exceed 50 percent of the median income for the area.

Unrestricted Funds – No restrictions on the use of current operating funds from the general funds

Virginia Retirement System (VRS) – administers a defined benefit plan, a group life insurance plan, a deferred compensation plan and a cash match plan for Virginia's public sector employees, as well as an optional retirement plan for selected employees and the Virginia Sickness and Disability Program for state employees.

Urban Design - Supports urban design and site planning for neighborhood revitalization activities, as well as funding for third-party urban design services. Urban Renewal – Accounts for the revenues and expenditures related to projects developed under the Urban renewal Program within certain targeted redevelopment and conservation areas located in the City of Norfolk.

Vision Statement - Outlines what an organization, department or program wants to be. It focuses on tomorrow; it is inspirational; it provides clear decision-making criteria; and it is timeless.

Utilities – Water, electricity, gas and fuel.

Working Capital – The excess of current assets over current liabilities, and is used to indicate the relative liquidity of an enterprise or internal service fund.

VIDA - The Virginia Individual Development Account (VIDA) savings program provides eligible, low-income individuals with a savings match of two dollars to every one dollar saved. The savings can be used to purchase a home, start a business, or finance post-secondary education.

NRHA FY2019 Approved Budget

Year-to-Date (YTD) – A total of all activity from the first day of the calendar year to the date the information was last updated.

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ACRONYMS

CIP CIP-I

A AAF ACC ADA ADDI AFG AMI AMP A/P A/R ARRA Act

Annual Adjustment Factor Annual Contributions Contracts Americans with Disabilities Act American Dream Down-Payment Initiative Assistance to Firefighter’s Grant Area Median Income Asset Management Project Accounts Payable Accounts Receivable American Recovery & Reinvestment

CIP-N CNI COCC CSS CY

D DIG DHS

B BOC

CHO CHP CHRO

Development Incentive Grant Department of Homeland Security

E Board of Commissioners

C CAP CD CDBG CDO CEO CEP CFO CFP CFR CGP CHDO

Capital Improvement Program Capital Improvement Program – Independent Projects Capital Improvement Program Neighborhoods Choice Neighborhood Initiative Central Office Cost Centers Community Support Services Calendar Year

Corrective Action Plan Community Development Community Development Block Grant Chief Development Officer Chief Executive Officer Public Housing Capital Fund Program Chief Financial Officer Capital Fund Program Code of Federal Regulations Comprehensive Grant Program Community Housing Development Organization Chief Housing Officer Community Housing Program Chief Housing Reinvention Officer

NRHA FY2019 Approved Budget

ED EIV EOV ET

Executive Director Enterprise Income Verification East Ocean View Executive Team

F FEMA FIC FICA FLSA FMR FP&S FSS FY FYTD

208

Federal Emergency Management Agency Family Investment Center Federal Insurance Contribution Act Fair Labor Standards Act Fair Market Rent Fire Prevention and Safety Grant Family Self-Sufficiency Fiscal Year Fiscal Year-to-Date

June 2019

MCA MFP MWBE

G GAAP

Generally Accepted Accounting Principles Government Accounting Standards Board General Fund

GASB GF

H HAP HCV HCVP HOME HOPWA HQS HR HRT HQS HUD HVAC

Housing Assistance Payments Housing Choice Voucher Housing Choice Voucher Program Home Investment Partnership Program Housing Opportunities for Persons With AIDS Housing Quality Standards Human Resources Hampton Roads Transit Housing Quality Standards U.S. Department of Housing and Urban Development Heating, Ventilation & Air Conditioning

I IREM IT

Institute for Real Estate Management Information Technology

J JARC

Job Access and Reverse Commute Program

L LDF LIHTC LIPH

Local Development Fund Low Income Housing Tax Credit Low Income Public Housing

M MBE

Mission College Apartments Money Follows the Person Minority and Women Business Enterprise Multi-Year

NAHRO National Association of Housing and Redevelopment Officials NCCCC Norfolk Community College Corporation NEO New Employee Orientation NOI Net Operating Income NOW Come Home to Norfolk, Now NRHA Norfolk Redevelopment and Housing Authority NSP Neighborhood Stabilization Program

O ODU

Old Dominion University

P PBRA PBV PFS PH PHA PHFSS PHAS PILOT PHMAP PIC PILOT PRIDE PUM

Project Based Rental Assistance Project Based Voucher Performance Funding System Public Housing Public Housing Agency Public Housing Family Self Sufficiency Public Housing Assessment System Payment In Lieu of Taxes Public Housing Management Assessment Program Public & Indian Housing Information Center Payment in Lieu of Taxes Purchase Renovation Per Unit Month

Refers to Minority Business Enterprise

NRHA FY2019 Approved Budget

209

June 2019

R RAD REAC RERA RFP ROI ROSS

T Rental Assistance Demonstration Real Estate Assessment Center Rehabilitation Reserve Account Request for Purchase Residential Options, Inc. Resident Opportunities and Self Sufficiency

S SADBU Small and Disadvantaged Business Utilization SEMAP Section Eight (8) Management Assessment Program SPARC Sponsoring Partnerships and Revitalizing Communities SRO Single Room Occupancy

NRHA FY2019 Approved Budget

TBRA TDHE TIF TOAP TOT

Tenant-Based Rental Assistance Tribally-Designated Housing Entity Tax Increment Financing Temporary Operation of Acquired Property Total

V VHDA VMS VRS

Virginia Housing Development Authority Voucher Management System Virginia Retirement System

Y YTD

210

Year- To-Date

June 2019

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NRHA FY2019 Approved Budget

211

June 2019

PAGE INTENTIONALLY LEFT BLANK

NRHA FY2019 Approved Budget

212

June 2019