HomeMy WebLinkAboutBDGT - FY 06/07 - 30-Unit Apt. Cmplx PALM DESERT HOUSING AUTHORITY
STAFF REPORT
REQUEST: APPROVE THE FISCAL YEAR 2006-2007 BUDGET FOR A 30-UNIT
APARTMENT COMPLEX AND AUTHORIZE THE DIRECTOR OF
FINANCE TO APPROPRIATE FUNDS FROM THE UNOBLIGATED
HOUSING AUTHORITY FUND UPON CLOSE OF ESCROW
SUBMITTED BY: JANET MOORE, HOUSING AUTHORITY ADMINISTRATOR
DATE: JULY 13, 2006
CONTENTS: 2006-2007 POTENTIAL 30-UNIT COMPLEX BUDGET
Recommendation:
That the Housing Authority Board, by minute motion:
1) Approve the Fiscal Year 2006-2007 operating budget for a 30-unit
apartment complex to be effective upon close of escrow, and
2) Authorize the Director of Finance to budget$128,575 in revenue and
appropriate $377,874 for expenditures to the 2006-2007 Fiscal Year
operating budget for the new complex from the Unobligated Housing
Authority Fund (871).
Executive Summary:
Approval of this request will establish and appropriate a budget for the operations of the
potential 30-unit apartment complex upon acquisition. In order to operate the newly
acquired property a budget has been developed based on expected costs and revenue.
Discussion:
On August 1, 2006, the Palm Desert Redevelopment Agency anticipates closing escrow
on a 30-unit apartment complex. The units are being acquired to eliminate their "at risk"
status. This complex was originally constructed under a HUD Contract and is currently
subsidized as such for senior households. The contract is expected to expire on July
31, 2006, and in order to preserve the units as affordable the Agency has been
authorized to acquire the complex.
The Palm Desert Housing Authority has been duly authorized to operate the Agency's
properties in order to maintain continuity in all our projects. In order to pay the
necessary expenses related to the operations of this property, the Authority has
prepared a budget based on prior experience with similar properties. Once the initial
Staff Report
Approve Budget for FY 2006-2007 30-Unit At Risk Apartment Project and Appropriate Funds
July 13, 2006
Page 2 of 2
set-up is complete and the property's tenant base is established, the property budget
will stabilize. Due to the date escrow is anticipated to close, this budget was not
included in the 2006-2007 Financial Plan submitted by the Director of Finance.
Submitted by: Department Head:
. _ OP/
Ja 410 oore Dave Yrigoy
Hou ing Authority Administrator Director o edevelopment/Housing
Approval:
R
sti McCarthy, A development Paul . ibson, ance Director
Carlos L. Ortega, ecutive Director
;'BOA 4 16Y HOUSG AUTH
ON -7 - 13 .0(c
VERIFIED BY:
Original on file with City Jerk's Office
G:\RDA\Veronica Tapia\Word Files\Staff Reports\New Complex Operations Budget.doc
HOUSING AUTHORITY- NEW COMPLEX
FUND# 871
HOUSING AUTHORITY-30 UNIT,COMPLEX DEPT. 8693
Program Narrative:
Apartment complex has 30 units which are all rented at affordable levels for very low,
low and moderate income families.
EXPENDITURE ACTUAL ADOPTED PROJECTED 1st YEAR PERCENTAGE
SUMMARY FY 04-05 FY 05-06 FY 05-06 FY 06-07 CHANGE
SALARY AND BENEFITS
SUPPLIES
OTHER SERVICES 148,724 -100.00%
CAPITAL OUTLAY 229,150 -100.00%
TOTALS:
377,874 -200.00%
SIGNIFICANT CHANGES:
PALM DESERT REDEVELOPMENT AGENCY
BUDGET WORKSHEETS FY 2006-2007
HOUSING AUTHORITY-30 UNIT COMPLEX FUND# 871. 8693
ACTUAL ADOPTECPROJECT 1st YEAR
Account Code Account Description FY 04-05 FY 05-06 FY 05-06 FY 06-07
Revenue:
871-8693-363.20-00 TOTAL RENTAL INCOME 128,575
Expenditures
871-8693-466.30-89 PROF-NEW COMPLEX 56,603
871-8693-466.30-92 PROF-OTHER 19,936
871-8693-466.30-93 PROF-ADM EXP/APARTMENT BL 14,256
871-8693-466.32-23 ADVERTISING/PROMOTION 4,994
871-8693-466.33-10 R/M-BUILDING 23,655
871-8693-466.35-14 UTILITIES 24,420
871-8693-466.36-95 MISCELLANEOUS EXP 4,860
SUBTOTAL EXPENDITURES 148,724
NET OPERATING INCOME;(NO1):i... .>., ;. - r ; .- ,.. (20,149)
871-8693-466.33-11 REPLACEMENT EXPENDITURES 29,150
871-8693-466.40-01 CAPITAL BUDGET
871-8693-466.40-50 CAPITAL IMPROVEMENTS 200,000
NET INCOME
.., " 1. ;, (249,299)s