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Home My WebLink AboutFY 2016 Budget Presentation-Housingr---· .... , ~~:-.... • •. !'.:'". , . J .' I ~ M AR 19 ? 3 :OQ COUNTY OF KAUA'I HOUSING AGENCY 2016 Budget Presentation Kamuela Cobb-Adams Director ---Il l ! Halo Halo zozo Growi'>g!Wa1...,,.,._ HOUSING AGENCY I. Mission / To provide greater opportunities for safe, decent and quality housing and to promote and sustain comn ~mnity development for the people of Kaua'i . II. Goals The Agency's primary goals are to: • Preserve tenant based rent subsidies under the Section 8 Housing Choice Voucher Program; • Maintain and expand affordable housing inventory to meet the needs of Kaua'i' s population; · • Increase financial capacity to support the goals and objectives of the Housing Agency; • Provide efficient, consistent, and quality delivery of services ; and • Promote and sustain community -development activities. III. FY 15 Successes and Achievements Rental Housing Division • Section 8 served 600 families and administered $6 million in housing vouchers; • Section 8 Program received no findings on the Single Audit for the fourth consecutive year; • Section 8 Program issued vouchers to 40 new participants to replace participants who went off the program; . ' • A new online application system allowed Section 8 to seamlessly process over 2,000 applicants in two weeks; • A lottery was · held placing 750 families on the waitmg list. We are currently processing the first 250 extremely low income families on that list and 39 new vouchers have been awarded; • Section 8 Program cont~nues to work closely with V ASH Coordinators in ensuring V ASH Veterans are maintaining their housing assistance by complying with program requirements; and • During 2014 , the Family Self Sufficiency program served 102 households of which 36 families increased their incomes by an average of $4907 per year. 5 families transitioned into non-subsidized housing and 13 graduated from the program. Program is currently managing 74 families. 2016 Budget Presentation: Page 1 Housing and Community Development Division • Assisted Kaua'i Habitat for Humanity , which broke ground on the 'Ele'ele Iluna Phase 2 subdivision in January 2014, to construct infrastructure improvements (grading, roads , utilities, drainage). The project is financed with $1.92 million in HOME funds and will assist 48 low-income families with first-time homeownership; • Kaniko'o (Rice Camp) Phase I construction is nearing completion and residents have begun moving in. Phase 1 provides 60 new rental units for low -income seniors. • Awarded Vitus Development, LLC $500,000 in HOME funds to finance Kaniko'o (Rice Camp) Phase 2 which is slated to break ground in March 2016 . Phase 2 will · consist of 30 new rental units . • Kolopua is currently under construction and expected to be complete June 2015 . Kolopua in Princeville will provide 44 new multi -family rental units for low -income households, with preference given to those who work in Princeville Phase 1 and Phase 2 . • Kukui 'ula Zoning Exactions provides 11.2 acres of land and off site infrastructure to the County of Kaua 'i for 130+new workforce housing units . The project, Koae, will commence environmental and preliminary engineering in March 2015 and Request for Proposals to develop the site will be issued in summer 2015. Off -site infrastructure is scheduled for completion by September 2016. • Awarded Mutual Housing Association of Hawai'i $711,000 in HOME funds and $94 ,500 in CDBG to carry out exterior rehabilitations for 9 residential buildings (73 rental units) at Lihu 'e Court Townhomes to preserve Kaua'i 's stock of affordable rental housing. Rehab work is expected to be completed April 2015 ; • Completed Lima Ola value engineering, environmental assessment , water master plan, and preliminary engineering studies and planning tasks that will be used to prepare the County 's formal 201H application ; ---------\ I l l Halo Halo zozo Grou-*'9""""' ~ • The Housing Agency continues to facilitate tQ.e Affordable Housing .Task Force to expedite affordable housing development by offering developers a clearinghouse discussion of project issues , better communication, and faster problem solving with County permitting agencies; • Fast Track Permitting for Workforce Housing Projects implemented to expedite the permit process for qualified w~rkforce housing projects. To date , 2 projects have used Fast Track Permitting ; • Agency staff processed 3 homebuyer loans for first-time homebuyers through the County's Home Buyer Loan Program and acquired two properties for leasehold sale; 2016 Budget Presentation Pa.ge 2 • Agency staff sustained programs through CDBG and NSP activities that revolve funds through purchase and re-sale of affordable homes and financing low-interest mortgage loans; and • 10 organizations and programs were served by CDBG. Over 243 individuals, adult and youth received direct services from CDBG sub recipients for substance abuse treatment and prevention, case management and after school enrichment programs. For public services, every $1.00 of CDBG funds awarded leveraged $3.00 of non- CDBG funding. IV. FY 15 Challenges Over the past few years, Federal budget cuts to HUD has decreased funding for housing programs while collective bargaining has increased overall administrative costs. These cost increases have been covered by the Housing & Community Development Revolving Fund (HCDRF) which was established from disaster recovery funds as a result of Hurricane Iniki. Unf01iunately, the HCDRF is near depletion and can no longer cover such costs for Fiscal Year 2016. Under its strategic plan, the Housing Agency has carried out various initiatives to address this issue while increasing productivity. Housing has eliminated a vehicle, held off on . hiring of three of the four positions vacated by retiring employees, cut other administrative costs, and basically done more with less . Unfortunately, the cost increases and lack of HCDRF has left the Housing Agency reliant on General Funds to maintain the staff and capacity to administer HUD programs and provide quality service to Kaua'i' s Citizens. V. FY 16 Goals and Objectives See Attachment A -FY 2016 Goals Kaua'i County Housing Agency Strategic Plan 2012-2016. VI. Performance Measures All goals are measureable by completion of activity of through HUD measurement/assessment tool. 2016 Budget Pres .entation Page 3 VII. Budget Overview Fund: General Fund FY 2015 FY 2016 $ + / -0 /o +I - Salary and Wages 434,714 629,872 195,158 44.9% * Benefits 242,988 333,520 90,532 37.3% Utilities 0 0 0 0.0% Vehicle/Equip, .Lease 2,000 0 -2,000 -100.0% Operations 27,515 ' 77,465 49,950 181.5% 707,217 1,040,857 333,640 47.2% * FY 2015 Benefits include restoring OPEB budget FY 2015 Operating Budget FY 2016 Operating Budget 0% 0 4% 0% •Salary and Wages •Benefits •Utilities •Vehicle/Equip, Lease •Operations •Salary and Wages •Benefits •Utilities •Vehicle/Equip, Lease • Operations FY 2015 and FY 2016 Comparison 400,000 300,000 200,000 100,000 0 Salary and Wages 2016 Budget Presentation Benefits Utilities Vehicle/Equip, Operations Lease . FY 2015 a FY2016 Page4 VIII. Itemized Listing of Grant Funds See Attachment B: Housing Agency-FY 2015-2016 2016 Budget Presentation Page 5 Attachment A FY 2016 Goals Kaua'i County Housing Agency Strategic Plan 2012-2017 MISSION: Provide greater opportunities for safe, decent, and quality housing and to promote and sustain community development for the people of Kaua'i. Preserve tenant based rent subsidies under the Section 8 Housing Choice Voucher Program Objective 1 -Maintain lease up percentages at or above 98°/o of HAP budget to maintain budget levels. • Maintain lease up percentage above 100%. Objective 2 -Increase access to rental housing opportunities for low income residents to increase voucher utilization rates. • Issue Project Base Vouchers at Pa 'anau Village 1. • Issue Project Base Vouchers at Kaniko 'o (Rice Camp Phase 2) Objective 3 -Reduce the dependency of low income families on Section 8. • FSS will graduate at 6 participating households with escrow balances. • FSS program will provide financial education counseling and services and referrals to homebuyer education to at least 105 participants. • FSS program will assist 12 participants securing employmentJ at least 14 participants obtaining higher wages and earned incomeJ at least 48 participants maintaining employment greater than 1 year and at least 36 participants qualifying or the Earned Income Tax Credit EITC. March 2015 Maintain and expand affordable housing inventory to meet the needs of Kaua'i's population Objective 1 -Establish a 5 year affordable housing development plan • Complete an island wide study to determine affordable/workforce housing demands by planning area. Objective 2 -Encourage, support and initiate development of 400 affordable housing units • Kaniko 'o (Rice Camp) Phase 1 -60 units Complete Construction and 100% occupancy. • Kolopua. -44 units -Complete Construction and 100% occupancy • 'Ele'ele Iluna (Habitat) Phase 2J increment 1 -45 lots -Complete construction and occupancy of 10 homes. • Koae (Kukui'ula workforce housing) 130 units o Complete EA Topography mapJ & Survey. o Issue RFP and contract with developer. • Lima OlaJ Phase 1 -180 units o Complete Entitlements & Subdivision o Complete Design of Phase 1. o Start Construction of Off-site improvements. • Draft Administrative Rules for Ordinance 860 Increase financial capacity to support the goals and objectives Objective 1 -Increase Development funding that will create 250 new Affordable Housing units • Partner with State or obtain funding for 1 affordable housing project on Kaua 'i. • Partner with a developers on 2 projects ideal for LI HTC award. • Obtain Administration and Council support to establish a County Fund for Affordable Housing and Community development. Objective 2 -Maintain Administrative and operational budget over the next 5 years. • Establish an annual rental increase assessment procedure for County owned projects. • Implement Rental increase procedure and raise rents at County owned projects if warranted. ··-: ·--~" i?F 6viH~ ~~°fficTen 't;, ·· ~ : Promote and sustain . -~ -~. ,· :'·· ,, ; ·. , -'. , --'-. ::,.:c:"C>hsistent, arid ::quality : community '.'·'··;;,d~Hvery . ofsetv'ifes ·, . · development activities ~-~---·~:;~-.2 --·. ·" . ! Objective 1 -Increase operational efficiency in order to maintain the same operational budget for the next five years. • Re-assign staff roles & job descriptions so that work loads are more evenly balanced and tasks more effectively completed. • Update Office Management Strategic plan and set goals for FY2016. Objective 2 -Establish assessment and evaluation procedures that measure progress as it relates to the goals & objectives. • Administer annual evaluation & goal setting for all staff • Implement a service evaluation for each division of Housing Agency. Objective 1 -Increase funding • Leverage CDBG funds to complete one County public facility project. • Utilize CD BG to assist 3 private organizations in providing services for substance abuseJ mental health employment trainingJ and childcare for the target populations of youth adultsJ seniorsJ and people with disabilities. Objective 2 -Increase awareness • Create community 5 community projects through work group collaboration of the Kaua 'i Community Health Improvement Initiative. Attachment B 3/9/2015 Housing Agency-FY 2015-2016 Ele Obj Acct Desc TOTAL GENERAL HCDRF KALE PA PAANAU HOME CDBG HOF NSP SECS 01 01 REGULAR SALARIES 1,395,248 628,371 39,006. 39,006 9,358 106,325 1 573,181 04/05 SALARIES/ADJUSTMENTS 6,912 1 1 1 6,909 02 01 REGULAR OVERTIME 13,738 1,500 624 624 500 4,757 1 5,732 03 01 PREMIUM PAY 0 05 01 SOCIAL SECURITY CONTRIBU 108,317 48,185 3,032 3,032 754 8,498 1 44,815 02 HEAL TH FUND CONTRIBUTION 116,791 50,390 3,413 3,413 789 8,887 1 49,898 03 RETIREMENT CONTRIBUTION ~ 239,528 107,078 6,737 6,737 1,676 18,884 1 98,415 04 WORKERS COMPENSATION TTD 7 1 1 1 1 1 1 1 05 WORKERS COMPENSATION MED 7 1 1 1 1 1 1 1 06 UNEMPLOYMENT COMPENSATION 6 1 1 1 1 1 1 08 MONTHLY AUTO ALLOWANCE 0 09 MILEAGE 0 10 OTHER EMPLOYEE BENEFITS 0 12 OTHER POST EMPLOY BENEFITS 286,025 127,864 8,045 8,045 2,001 22,550 1 117,519 24 00 TRAINING 600 600 30 00 OTHER SERVICES 1,165,870 13,000 507,700 471,730 39,325 75,000 1 59,114 31 00 DUES AND SUBSCRIPTIONS 7,500 1,500 3,500 2,500 32 00 CONSULTANT SERVICES 770,203 510,603 219,600 40,000 35 00 SPECIAL PROJECTS 4,218,870 253,711 2,485,719 979,440 500,000 41 01 BUILDING LEASE 0 02 COPIER 24,000 11,000 3,000 10,000 42 00 INDIRECT COST 25,000 25,000 43 01 SPECIAL SERVICES (BUILDING REPAIR' 15,000 15,000 02 R&M EQUIPMENT 0 03 R&MVEHICLE 0 05 R&M COMPUTERS 19,000 2,000 17,000 44 01 LOANS 2,269,677 350,000 1,805,000 114,677 55 00 ADVERTISING 10,800 3,000 6,500 1,300 56 01 AIRFARE, GENERAL 13,530 5,400 1,000 6,050 1,080 02 PER DIEM, GENERAL 1,650 540 80 780 250 03 CAR RENTAL & PARKING, GEN 3,240 1,350 240 1,515 135 04 OTHER TRAVEL, GENERAL 1,300 550 650 100 07 AIRFARE, TRAINING 10,550 5,000 750 1,800 3,000 08 PER DIEM, TRAINING 9,900 3,600 500 2,800 3,000 09 CAR RENTAL & PARKING, TRN 2,820 1,450 250 120 1,000 10 OTHER , TRAINING 14,800 3,650 250 900 10,000 57 00 PRINTING 25 25 60 01 ELECTRICITY 0 61 01 OFFICE SUPPLIES 24,899 8,000 1,849 6,255 8,795 02 OTHER SUPPLIES 7,800 1,800 3,500 2,500 03 CONTROLLED ASSETS 0 62 01 OTHER SMALL EQUIPMENT 0 62 02 COMPUTERS 23,400 3,600 19,800 67 00 OTHER COMMODITIES 6,143,000 6,143,000 88 01 AUTOMOBILE 0 89 01 EQUIPMENT 0 TOTAL 16,950,013 1,040,857 628,711 1,079,164 752,191 2,505,719 3,074,639 575,000 114,686 7,179,046