HomeMy WebLinkAboutFY 2022 Budget Presentation (Housing Agency)KAUXI COUNTY HOUSING AGENCY
FY 2022 BUDGET AND OPERATIONS SYNOPSIS
Adam Roversi
Director
Department: HOUSING AGENCY
Fund: GENERAL FUND
1. FY 2021 to FY 2022 BUDGET COMPARSION
FY 2021
FY 2022
$ + / -
% + / -
Salary and Wages
831,550
730,820
-100,730
-12.1%
Benefits
468,644
441,351
-27,293
-5.8%
Utilities
0
0
0
0.0%
Vehicle/Equip, Lease
2
2
0
0.0%
Operations
142,138
137,876
-4,262
-3.0%
1,442,334
1,310,049
-132,285
-9.2%
FY 2021 Operating Budget
FY 2022 Operating Budget
0
0 °■ Salary and Wages
0%
0%� ■ Salary and Wages
14%
■ Benefits
■ Benefits
00%
Utilities
Utilities
58%
■Vehicle/Equlp,
■Vehicle/Equip,
Lease
Lease
Operations
Operations
FY 2021 and FY 2022 Comparison
900,000
800,000
—
700,000
—
600,000
—
500,000
—
E FY 2021
400,000
E FY 2022
-400,000
200,000
100,000
0
Salary and Wages Benefits Utilities Vehicle/Equip,
Operations
Lease
1
Department: HOUSING AGENCY
Fund: REVOLVING FUND
FY 2021
FY 2022
$ + / -
% + / -
Salary and Wages
0
0
0
0.0%
Benefits
0
0
0
0.0%
Utilities
0
0
0
0.0%
Vehicle/Equip, Lease
0
0
0
0.0%
Operations
3,303,201
3,083,201
-220,000
-6.7%
3,303,201
3,083,201
-220,000
-6.7%
1 Operating Budget
9P% ■ Salary and
Wages
■ Benefits
■ Utilities
■ Vehicle/Equip,
M Lease
■ Opera lions
FY 2022 Operating Budget
{ ■ Salary and
Wages
■ Benefits
■ Utilities
■ Vehicle/Equip,
100%6 Lease
■ Operations
2
2. MAJOR CHANGES AND/OR VARIANCES IN OPERATIONS BUDGET
For FY22 we are projecting a $100,730 or 12.1% reduction in salary and wages and slight reduction
of $4,262 or 3% reduction in operations. The reduction in salary and wages is due to the projection
that two existing positions in the rental assistance division that were general funded in FY21 will
be funded by the federal Housing Choice Voucher (HCV) program in FY22. I say we "project" that
we can make this change because as of the submission of the Mayor's budget, we have not yet
received our annual federal funding notice from the Department of Housing and Urban
Development (HUD). If projected increases in HUD funding do not materialize, the Housing Agency
may need to request supplemental funding for some, or all, of these two HCV positions.
Operational savings are due to reduction in projected annual expenses for the maintenance of
the Waimea Theater.
3. OPERATIONAL CHALLENGES
Our two primary operational challenges are the administration of a dramatic increase in
participation in the federal Housing Choice Voucher (HCV) program, and a continuing struggle to
build alternative funding sources for direct County development of affordable housing projects.
With regard to the HCV program, this time last year we had a total of 703 rental assistance clients.
During FY21 we have increased total participation by 30% to 920. While in the past the Housing
Agency has struggled to spend down its available federal funding, this year we exceeded our
available federal funding, successfully utilized all available additional Covid19 related funding, and
received more than $500,000 in additional federal funds to meet the demands of our program.
The 30% increase in clients, though a benefit to our community and program success, has strained
our administrative capacity.
With regard to development funding, the Housing Agency needs to increase, or at the very least
preserve, direct County funding for affordable housing development through the Housing
Development Fund, or other funding sources so we are not dependent on federal low income
grant programs and tax credits. Direct County funding through the Housing Development Fund
provides much needed funds that may be administered with significantly more flexibility and
creativity then existing federal programs. We continue to explore additional alternative funding
options such as project specific revenue bonds.
4. TOP 3 OPERATIONAL HIGHLIGHTS FROM FY 2021
Operational Highlights include the dramatic expansion of our HCV program described above, the
completion and full occupancy of the Kealaula Supportive Housing project for homeless families,
and the groundbreaking for Phase I infrastructure development at the Lima Ola Workforce
Housing subdivision.
Our 30% increase in rental assistance program participation provides desperately needed housing
support as housing prices continue to increase even as local residents suffer economic hardship
due to Covid-19. The expanded program also pumps more than $9 million a year into our economy
in the form of rent payments.
In November of 2020 we commenced construction of Phase I infrastructure work at Lima Ola after
nearly a decade of planning. This water, sewer, electrical, and roadway infrastructure is scheduled
for completion in November of 2021, and will provide the foundation for approximately 150
affordable homes.
Lastly, we completed the 30-unit Kealaula Supportive Housing Project aimed at providing long-
term supportive housing and wrap around social services for families experiencing homelessness.
This $4.2 million cooperative state/county project was made possible by the County Housing
Development Fund. Kealaula is the first County project on Kaua'i specifically targeting
homelessness since the establishment of Kaua'i's emergency shelter some two decades ago. Now
fully occupied, Kealaula houses almost 70 individuals.
4