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Home My WebLink AboutFY 2018 Budget Presentation (Housing Agency)COUNTY OF KAUAI RECEIVED --· i7 MR 24 P2 :01 OFFfCE OF THE COUNTY CLERK COUNTY OF Kf.,U A '! HOUSING AGENCY Fiscal Y .ear 2018 Budget Presentation April 7, 2017 KananiFu Housing Director I I ! Holollola 020 - Housing Agency I. Mission The Mission of the Housing Agency is to provide greater opportunities for affordable housing and to support community development for the people of Ka~. II. Vision The vision of the Housing Agency is to meet Kauai's demand for affordable housing units via a multi prong approach that focuses on policy, leveraging, opportunities, and partnerships (PLOP). Of equal importance is preserving our current affordable housing inventory and sustaining our federal programs such as the Housing Choice Voucher (HCV) Program, the HOME Program, the Community Development Block Grant (CDBG) Program, and the Housing Trust Fund (HTF) Program. II. FY 17 Achievements The Housing Agency's Strategic Plan guides our FY 17 goals and objectives. The following provides an update of our achievements as of March 31, 2017: Goal 1: Preserve the Housing Choice Voucher Program Objective 1: Expend 100% of the Housing ' Choice Voucher (HCV) Program's annual budget authority. The Housing Agency administers $6 million annually from HUD to support the HCV Program which provides rental assistance payments to low income families. The HCV Program is required to issue vouchers and achieve lease up success to ensure timely spend down of our allocated budget or risk losing the unspent budget the following year. For FY 17 , we are on target to spend 100 % of our allocated budget and have thus far served 605 families. In addition, to increase program participation and lease up success: • In August, the Section 8 waitlist opened. 2,300 applications were received and 750 applicants were selected by random lottery. We are in the process of conducting eligibility determination for these applicants and project an addition 40 new households to be served in FY 17. • Under the Housing Trust Fund Program (HTF), the Tenant-Based Rental Assistance (TBRA) Program commenced in February. This allows us to serve up to 15 homeless households and assist with rental payments and security deposits. In addition, participants will receive case management services provided by our partners to increase their success rate of remaining housed. As of March 31, 2017, the TBRA Program is serving 13 households. FY 2018 Budget Presentation Page 2 Objective 2: The Family Self-Sufficiency (FSS) Program will enable HCV Program participants to increase their earned income and reduce their dependency on public assistance. During FY 17, FSS served 96 households of which, 48 households increased their annual incomes by an average of $9,849. Other accomplishments include: • 16 household participants enrolled in post-secondary classes, • 6 households transitioned into non-subsidized housing, and • 10 households graduated from the FSS program with a collective total of $110,477 in escrow deposit that can be utilized toward home ownership, higher education or other qualified savings goals. Goal 2: Develop and preserve affordable housing inventory Objective 1: Project Kauai's housing needs. The Housing Agency relies on the Hawaii Housing Planning Study to guide our planning and development activities. In collaboration with State HHFDC and fellow County Housing departments, the Hawaii Housing Planning Study, 2016 was completed and published in December 2016. The study reports that by 2025, Kauai will need an additional 5,287 new housing units of which 2,485 are needed for ownership and 2,802 are needed for rental. It is no surprise that of the 5,287 total units needed, 3,926 (or 74 %) units are needed to supply our low income families who earn less than 80 % of the Area Median Income (AMI). Objective 2: Support the development of 400 new affordable housing units. To meet the projected housing demand, the Housing Agency is involved with supporting and developing the following projects which are in various stages of development: • Lima Ola Phase I, 149 units. Complete land entitlements in FY 17 and commence site work in FY 18. • Koa'e, 134 units. Construction to commence in FY 18. • State Scattered Lots, 12 units. Identify State parcels to develop single-family housing. Complete Executive Order with the State in FYI 7. • Kaniko'o Phase II, 30 units. Completed in FY 17. • Ele'ele Iluna Phase II, Increment A, 48 units: 48 buildable lots were completed in FY 17 and to date 24 homes have been constructed. The remaining 24 homes are projected to be constructed throughout FY 18 and into the early parts of FYI 9 • Ele'ele Iluna Phase II, Increment B, 59 units: Site work has commenced and 59 buildable lots are projected to be completed in FY 18. • Kohea Loa Ho'oluana, 32 units. Amend Ordinance to provide 32 completed duplex units. Construction will commence in FY 17 and continue through FY 18. The Housing Agency also convenes a monthly Affordable Housing Task Force meeting for expediting affordable housing development, giving developers a clearinghouse discussion of project issues, better communication, and faster problem solving with County permitting agencies. FY 2018 Budget Presentation Page 3 Objective 3: Preserve Kauai's existing affordable housing inventory. The Housing Agency utilizes several funding mechanisms to provide rehabilitation financing to existing affordable housing projects. In FY 17, the reroofing of Pa'anau Village was completed and tree and side walk maintenance commenced at Kalepa Village Phase 1. In FY 18, buildings that comprise Kalepa Phase I will undergo extensive exterior maintenance to include repainting and the replacing of building trimming. The Housing Agency will pursue establishing a Community Land Trust (CLT) to administer the County's affordable housing inventory. In FY 17, staff participated in trainings and discussions to identify best practices of a CLT. We project that establishing a CLT will span over several fiscal years as it will involve amending the Housing Policy, Ordinance No. 860. We project to start this in FY 18. Goal 3: Sustain capacity to support the Strategic Plan Objective 1: Secure financing resources to develop new affordable housing units. During FY 17 the Housing Agency awarded the development rights to Koa' e. Construction is estimated to cost $42 million and will utilize HOME and HTF funds being leveraged to secure private financing and Low-Income Housing Tax Credit (LIHTC) financing. Under this financing structure, the Housing Agency is providing the administrative support for the project however, no County funds are being used to fmance Koa'e. In FY 18, the Housing Agency will see some return of program income which will be allocated toward funding future development initiatives. It is also a long term strategy to establish a County tax fund that allocates a small percentage of property taxes for developing new affordable housing. In Maui County, approximately $5 million per year of tax revenue is collected and is leveraged to develop new housing. The Housing Agency aspires to implement something similar soon. Objective 2: Preserve adequate staffing to sufficiently operate the Housing Agency. With the depletion of the Housing and Community Development Revolving Fund (HCDRF), anticipated Federal budget reductions, and the impending increases due to collective bargaining, the Housing Agency staff continue to be at threat. To combat this, we focus on programs and activities that can generate non-county funds to support our administrative functions. ·1n FY 17, we've utilize less than 1 % of the County's general fund and we will do the same for FY 18. Objective 3: Support the professional growth of Housing Agency staff. The Housing Agency is investing in staff to provide the professional training and tools to maximize their skills to perform a multitude of job responsibilities. In addition, our managers are directed to provide cross training to staff and conduct bi-annual performance evaluations that support the professional growth of the Housing Agency's greatest asset, our staff. FY 2018 Budget Presentation Page4 Goal 4: Support community development Objective 1: Leverage federal funds to implement Housing Agency programs and to support community development activities. During FY 17, the CDBG Program supported nine organizations serving 243 individuals. These organizations provide the community with a multitude of direct services such as case management, substance abuse classes, and cultural education. In FY 17, we assisted in the expansion of KEO, which now operates 24 hours daily and actively participate the Continuum of Care, an organization that serves the homeless population. In addition, over $410,000 in CDBG funds was allocated in FY 17 for facility improvements, economic development, and to remove architectural barriers from parks and recreational facilities. Objective 2: Increase public awareness of housing opportunities through outreach, partnerships, and advocacy. The Housing Agency is dedicated to serving the public and engages in various outreach efforts to grow increase public awareness of housing and economic opportunities. During FY 17, the Housing Agency has been busy accomplishing the following: • Processed two mortgage loans for first-time homebuyers through the Home Buyer Loan Program. • Acquired two properties to sell as affordable. Sale will be completed in FY 17. • Provided information, outreach, and assistance to approximately 360 participants on the Home- Buyer List. • HCV Program works closely with the Veterans Administration to house veterans under the V ASH Program. There are 34 participants in this program. • The Housing Agency, in partnership with the Kauai Board of REAL TORS and the Kauai Community Alliance will hold a landlord summit to offer information, education and resources that will promote housing programs. • The HCV Program participates on the Kauai Workforce Development Board to provide employment and training programs that address local, state, and national challenges facing the workforce by collaborating with the Board through the Family Self-Sufficiency Program as a mande:ited partner under the Workforce Innovation & Opportunity Act. ID. FY 17 Challenges The Housing Agency is supported primarily with Federal and State funding. Our funding has remained flat over the past two fiscal years despite the growing demand for our programs and services. We continue to monitor the economic and political factors that have the potential to adversely impact our agency and the people we serve. Another challenge that is not new to development is the permitting and review processes required by public agencies. We've experienced significant delays in the review process from public departments. Consequently, this has delayed project timeliness resulting in revenue loss. More so, when projects are delayed, our families miss opportunities for low -cost financing such as mortgage interest rates. FY 2018 Budget Presentation Pages IV. FY 18 Goals and Objectives The goals for FY 18 for the Housing Agency continue to remain the same. As we analyze our achievements and challenges for FY 17, the Housing Agency is determined to move forward in a progressive manner. This entails reviewing our objectives, repeating the processes and approaches that has been successful for us, and making changes and tweaks where improvement is needed. It is our commitment to be steadfast in our mission and do our very best in serving the people of Kauai. Housing Agency Strategic Plan FY 18 1 -. Goal 1: Preserve the Housin& Choice Voucher Proa;ram Objective 1: Expend 100% of the Housing Choice Voucher (HCV) Program's annual budget authority. Objective 2: The Family Self-Sufficiency (FSS) Program will enable HCV Program participants to increase their earned income and reduce their dependency on public assistance . Goal 2: Develon and nreserve affordable housina; invento!:l'.: Objective 1: Support the development of 400 new affordable housing units. Objective 2: Support the preservation of 100 existing affordable housing units. Goal 3: Sustain canacitv to sunnort the Stratea;ic Plan Objective 1: Secure financing resources to develop new affordable housing units. Object i ve 2: Preserve adequate staffing to sufficiently operate the Housing Agency . Objective 3: Support the professional growth of Housing Agency staff . Goal 4: Sunnort community develonment Objective 1: Leverage federal funds to implement Housing Agency programs and to support community development activities. Objective 2: Increase public awareness of housing opportunities through outreach, partnerships , and advocacy. 1 Strate g ic Plan FY 18 is in draft form until 07 /01 /2017 and is subject to change. FY 2018 Budget Presentation Page 6 V. Budget Overview Salary and Wages Benefits Utilit:iES Vehicle/Equip, Lease Operations Fund: GENERAL FUND Deparbnent: HOUSING AGENCY FY2017 651,833 367,619 0 0 327,132 1,346,584 FY2018 656,741 348,814 0 0 258,456 1,264,011 $+I- 4,908 -18,805 0 0 -68,676 -82,573 O/o+/- 0.8% -5.1% 0.0% 0.0% -21.0% -6.1% FY 2017 Operating Budget FY 2018 Operating Budget 0% 0% • Salary and Wages •Benefits •Utilities •Vehicle/Equip, Lease Operations 0% 0% FY 2017 and FY 2018 Comparison 600,000 - 500,000 400,000 300,000 200,000 100,000 0 Salary and Wages FY 2018 Budget Presentation Benefits Utilities Vehicle/Equip, Lease •Salary and Waees •Benefits •Utilities •Vehicle/Equip, Lease Operations Operations g FY2017 FY2018 Page 7 Salary and Wages Benefits Utilities Vehicle/Equip, Lease Operations Fund: HOUSING & COMMUNilY DEV Department: HOUSING AGENCY FY2017 FY2018 $+I- 0 0 0 0 0 0 0 0 0 0 0 0 403.757 956,213 552.156 403,757 956,213 552,456 O/o+/- 0.0% 0.0% 0.0% 0.0% 136.8% 136.8% FY 2017 Operating Budget FY 2018 Operating Budget • Salary and Wases •Benefits •Utilities • Vehicle/Equip, Lease • Operations FY 2017 and FY 2018 Comparison •Salary ard Wases •Benefits Utilities •Vehicle/Equip, Lease •Operations 1,200,000 ~------------------------ 200,000 • Salary and Wages Benefits Utilities FY 2018 Budget Presentation Ve hide/Equip, Lease Operations fiFY2o17l ~ Page8 Salary and Wages Benefits Utilities Vehicle/Equip, Lease Operations Fund: HOUSING REVOLVING FUND Deparbnent: HOUSING AGENCY FY2017 FY2018 $+I- 0 0 0 0 0 0 0 0 szs.ooo SZS.000 575,000 575,000 "ID+/- 0 0.0% 0 0.0% 0 0.0% 0 0.0% 0 ~ 0 0.0% FY 2017 Operating Budget FY 2018 Operating Budget • Salary and Wages •Benefits •Utilities • Vehicle/Equip, Lease • Operations FY 2017 and FY 2018 Comparison Salary and Wages Benefits FY 2018 Budget Presentation Utilities Ve hide/Equip, Lease •Salary and Wages •Benefits •Utilities •Vehicle/Equip, Lease •Operations Operations fiFY20Ul ~ Page9 VI. Vacant Positions The Housing Agency does not anticipate position vacancies in FY 18. In FY 18, position 3541 and 9661 remains dollar funded to accommodate the additional staffing that would be required should the HCV Program expand. These positions would be completely funded by HUD. Position 9537 and 9534 remains dollar funded to accommodate the additional staffing that would be required when the development of Lima Ola, or other housing projects, commence. These positions would be completely funded with non-county resources such as State or Federal administrative fees. FY 2018 Budget Presentation Page 10