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Home My WebLink AboutFY 2019 Budget Presentation (Housing Agency) Kanani Fu Housing Director COUNTY OF KAUAI HOUSING AGENCY 2019 Budget Presentation April 10, 2018 FY 2019 Budget Presentation Page 2 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 residents of the County of Kauai. 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. III. FY 18 Successes and Achievements The Housing Agency’s Strategic Plan guides our FY 18 goals and objectives. The following provides an update of our achievements as of March 31, 2018: Goal 1: Expand the Housing Choice Voucher Program Objective 1: Expend 100% of the Housing Choice Voucher (HCV) Program’s annual budget authority. The Housing Agency administers approximately $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 18, we are on target to spend 100% of our allocated budget and serve an average of 620 families per month. In calendar year 2017, the HCV program issued 188 new vouchers to households. Objective 2: Issue 100 new and unduplicated vouchers. In calendar year 2017, the HCV program issued 188 new and unduplicated vouchers to households. In September 2017, the HCV Program wait list opened. 1,182 applications were received and 450 applicants were selected by random lottery. We are in the process of conducting eligibility determination for these applicants and project an addition 100 new households to be served. 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, 2018, the TBRA Program is serving 13 households. FY 2019 Budget Presentation Page 3 Objective 2: The Family Self-Sufficiency (FSS) Program will support 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: Site two affordable housing projects for future development The Housing Agency is currently in progress of completing the Environmental Assessment for the Pua Loke Affordable Housing Project which proposes to develop up to 60 units on land owned by the County. The Housing Agency is on target to select a developer in FY 18, secure financing in FY 19, and commence construction in FY 20. 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 that are in various stages of development:  Lima Ola Phase I, 149 units. Land entitlements were completed in August 2018 and the Housing Agency is working to secure a $13 MM Dwelling Unit Revolving Fund loan from Hawai‘i Housing Development Corporation (HHFDC) to develop the infrastructure. Site work is targeted to commence in FY 19.  Koa‘e, 134 units. Construction to commence in FY 18, with completion of all units in FY 21.  State Scattered Lots, 12 units. Complete Executive Order with the State in FY18, commence construction in FY 2019.  ‘Ele‘ele ‘Iluna Phase II, Increment A, 48 units: 24 homes were completed in FY 18. The remaining 24 homes are projected to be constructed throughout FY 18 and into the early parts of FY19.  ‘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, 151 units of which, 32 are affordable units. In FY 18, construction commenced. 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 2019 Budget Presentation Page 4 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 18, the reroofing of Pa’anau Village was completed and exterior building maintenance commenced at Kalepa Village Phase 1. Goal 3: Grow capacity to support the Strategic Plan Objective 1: Secure non-County funds via public-private partnerships to secure the development of new affordable housing. During FY 18, the Housing Agency awarded the development rights to Koaʻe. Construction is estimated to cost $41 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 finance Koaʻe. 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: Grow the Housing and Community Development Revolving Fund (HCDRF) by 10 percent. 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 programs and 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. In FY 18, we have utilize less than 1 % of the County’s general fund and we will do the same for FY 19. Objective 3: Support the professional growth of Housing Agency staff. The Housing Agency is investing in staff to provide the professional tr aining 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. Goal 4: Support community development Objective 1: Leverage federal funds to implement Housing Agency programs and to support community development activities. During FY 18, the CDBG Program supported 10 projects that will provide the community with a multitude of direct services and provide community facility improvements that will remove architectural barriers from parks and recreational facilities. FY 2019 Budget Presentation Page 5 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. IV. FY 18 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 processed required by public agencies. We have 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. V. FY 19 Goals and Objectives The goals for FY 19 for the Housing Agency continue to remain the same. As we analyze our achievements and challenges for FY 18, 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 improvements are needed. Consequently, the objectives of the Housing Agency will be established at a later time, but prior to the commencement of the new fiscal year. 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 191 Goal 1: Preserve the Housing Choice Voucher Program Goal 2: Develop and preserve affordable housing inventory Goal 3: Grow capacity to support the Strategic Plan Goal 4: Support community development 1 Strategic Plan FY 19 is in draft form until 07/01/2018 and is subject to change. FY 2019 Budget Presentation Page 6 VI. Budget Overview Fund: GENERAL FUND Department: HOUSING AGENCY FY 2018 FY 2019 $ + / -% + / - Salary and Wages 666,298 717,043 50,745 7.6% Benefits 359,426 315,888 -43,538 -12.1% Utilities 0 0 0 0.0% Vehicle/Equip, Lease 0 0 0 0.0% Operations 280,881 269,275 -11,606 -4.1% 1,306,605 1,302,206 -4,399 -0.3% 0 100,000 200,000 300,000 400,000 500,000 600,000 700,000 800,000 Salary and Wages Benefits Utilities Vehicle/Equip, Lease Operations FY 2018 and FY 2019 Comparison FY 2018 FY 2019 51% 28% 0% 0% 21% FY 2018 Operating Budget Salary and Wages Benefits Utilities Vehicle/Equip, Lease Operations 55% 24% 0% 0% 21% FY 2019 Operating Budget Salary and Wages Benefits Utilities Vehicle/Equip, Lease Operations