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Home My WebLink AboutFY 2007/08 Budget - Sagecrest Apartments PALM DESERT HOUSING AUTHORITY STAFF REPORT REQUEST: APPROVE THE FISCAL YEAR 2007-2008 BUDGET FORA 14-UNIT APARTMENT COMPLEX, KNOWN AS SAGECREST APARTMENTS AND AUTHORIZE THE DIRECTOR OF FINANCE TO APPROPRIATE FUNDS FROM THE UNOBLIGATED HOUSING AUTHORITY FUND UPON CLOSE OF ESCROW LOCATION: 73-775 SANTA ROSA WAY SUBMITTED BY: JANET MOORE, DIRECTOR OF HOUSING DATE: MARCH 13, 2008 CONTENTS: 2007-2008 SAGECREST APARTMENTS BUDGET Recommendation: By Minute Motion, that the Housing Authority Board: 1) Approve the Fiscal Year 2007-2008 operating budget for Sagecrest Apartments, and 2) Authorize the Director of Finance to budget $29,214 in revenue and appropriate $87,498 for expenditures to the 2007-2008 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 14-unit apartment complex, known as Sagecrest Apartments, located at 73-775 Santa Rosa Way. In order to operate the newly acquired property, a budget has been developed based on expected costs and revenue. Discussion: On February 28, 2008, the Palm Desert Redevelopment Agency closed escrow on a 14- unit complex, known as Sagecrest Apartments. The acquisition of this complex will assist the Agency with continuing to reach the 2007 Regional Housing Needs Allocation. Staff Report Approve Budget for FY 2007-2008 14-Unit Apartment Project and Appropriate Funds March 13, 2008 Page 2 of 2 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 set-up is complete and the property's tenant base is established, the property budget will stabilize. Submitted by: Department Head: Ja et Mo re Dave Yrigoy Director Housing Director o edevelopment/Housing Approval: Ju cCarthy, CM lopment Paul G. Gibson, Finance Director Carlos L. Ortega, fecutive Director I C V BY HOUSG AUTH ON 13 - VERIFIED BY: OK I rrr Original on file with City Clerk's Of6cr. G:\rda\Veronica Tapia\Word Files\Staff Reports\New Complex Operations Budget 31308.doc PALM DESERT REDEVELOPMENT AGENCY BUDGET WORKSHEETS FY 2007-2008 HOUSING AUTHORITY-SAGECREST APARTMENTS FUND# 871 8695 ACTUAL ADOPTED PROJECT 1st YEAR Account Code Account Description FY 05-06 FY 06-07 FY 06-07 FY 07-08 Revenue: 871-8695-363.20-00 TOTAL RENTAL INCOME 29,214 Expenditures 871-8695-466.30-89 PROF-NEW COMPLEX 6,896 871-8695-466.30-92 PROF-OTHER 4,536 871-8695-466.30-93 PROF-ADM EXP/APARTMENT BL 1,958 871-8695-466.32-23 ADVERTISING/PROMOTION 219 871-8695-466.33-10 R/M-BUILDING 7,794 871-8695-466.35-14 UTILITIES 4,986 871-8695-466.36-95 MISCELLANEOUS EXP 1,109 SUBTOTAL EXPENDITURES 27,498 NET OPERATING INCOME(NOI) 1.716 871-8695-466.33-11 REPLACEMENT EXPENDITURES 10,000 871-8695-466.40-01 CAPITAL BUDGET 871-8695-466.40-50 CAPITAL IMPROVEMENTS 50,000 NET INCOME (58.284) HOUSING AUTHORITY - NEW COMPLEX FUND# 871 HOUSING AUTHORITY - SAGECREST APARTMENTS DEPT. 8695 Program Narrative: Apartment complex has 14 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 05-06 FY 06-07 FY 06-07 FY 07-08 CHANGE SALARY AND BENEFITS SUPPLIES OTHER SERVICES 27,498 -100.00% CAPITAL OUTLAY 60,000 -100.00% • TOTALS: 87,498 -200.00% SIGNIFICANT CHANGES: