1. Approval of Agency’s 2021 Operating Budgets for Fiscal Year beginning October 1, 2020.

Board approval is requested for the FY 2020-2021 budgets for the Central Office Cost Center (COCC), MDHA Service Crews, the Freeman Webb managed properties, and the Project Based Rental Assistance (PBRA) properties.  Administrative budgets have also been prepared for the Rental Assistance, Community Development and Urban Development Departments.  A 1.5% across the board salary increase is included in the budgets. The budgets have been reviewed by the Finance & Audit Committee.

The COCC $12,121,929 2021 budget will be funded by management and  developer fees, Rolling Mill Hill ground lease payments, with the remainder funded from surplus cash generated from the PBRA and Freeman Webb managed properties.

Separate from the COCC, the MDHA Service Crews are projecting a break even budget with fee for service revenue estimated to cover $1,718,092 in operational costs and $50,000 capital cost for two new trucks.  The Service Crews will provide property management with contract work, decrease vacant unit turnover time and provide a more efficient alternative to outside contract labor.

Freeman Webb manages eight properties owned by MDHA, therefore the budgets are prepared by their management team.  Collectively the positive cash flow from these properties totals $944,889.

The Project Based Rental Assistance (PBRA) properties have been prepared using HUD approved contract rents assuming a 1.5% Operating Cost Adjustment Factor (OCAF) for each HAP contract.  The projected cash flow of $3,853,931 assumes capital expenditures approved will be funded from the property replacement reserve escrows.

The breakeven operating budgets for the Rental Assistance Department, Community Development and Urban Development are presented with funding for additional CAREs Act administrative and program costs.

The total projected cash flow for 2021 of $5,432,518 will be utilized as a contribution for the strategic equity funds to support our Envision development plan.

Published On: September 8, 2020