2012 DHA Annual Report - Durham Housing Authority
Transcription
2012 DHA Annual Report - Durham Housing Authority
Board of Commissioners Thomas Niemann, Chair David Haley, Vice-Chair Barbara Lofton Gloria Nottingham George Quick John Ramsey Isaac Robinson City Council Member/DHA Liaison Steve Schewel Legal Services The Banks Law Firm On the cover: Damar Court Resident Justin Hester, a sophomore at NC A&T University See his story on Page 9 Pen & Inc Communications www.penandinc.com Copyright © 2013 Durham Housing Authority All Rights Reserved DURHAM HOUSING AUTHORITY 2012 Annual Report Partnering to Provide Housing Choices Contents Message from DHA’s Leadership ...................................................................................................... 2 Development ..................................................................................................................................... 3 Resident Services............................................................................................................................... 7 Capital Improvements ...................................................................................................................... 11 Financial Statements ......................................................................................................................... 13 DURHAM HOUSING AUTHORITY | 2012 Annual Report 1 FROM DHA’S LEADERSHIP The Durham Housing Authority (DHA) maintained or improved services to its resident population despite resource reductions in its major program areas. Each year, the U.S. Department of Housing and Urban Development (HUD) measures the performance of all public housing authorities. For 2012 DHA’s Public Housing Assessment System (PHAS) score remained in the high eighties. The agency’s Section Eight Management Assistance Program (SEMAP) score for 2012 broke the “High Performer” barrier at 93 percent for the first time in recent memory. While staff reductions totaled 12 percent over the past 18 months, DHA remained fiscally solvent. Tom Niemann has served as Chairman of the Board of Commissioners since 2006. He is the owner of Niemann Capital, LLC. DHA had a number of major achievements for 2012. Among them were HUD’s awarding DHA a Choice Neighborhood Initiatives (CNI) Planning Grant for the McDougald Terrace Development area and a Rental Assistance Demonstration (RAD) Housing Assistance Payment Contract (CHAP) for the Morreene Road Development. DHA also acquired the Lincoln Apartment complex. A cleared Lincoln site may be used in a re-development effort of the McDougald Terrace area under a CNI scenario. Moreover, during August, the North Carolina Housing Finance Agency informed DHA that its application for competitively awarded Low Income Housing Tax Credits (LIHTC) for the Preiss-Steele Place Development had been approved. The renovation of the Edgemont Elms site (comprised of 57 units) was substantially complete during 2012 and an Open House was held during September. DHA is committed to utilizing all available resources and partner agreements to improve and expand housing opportunities for very-low, low and moderate income families and individuals who reside in the Durham area. A number of partners have emerged to assist DHA in executing its mission. DHA’s Board of Commissioners joint meeting with the Durham City Council was significant, if not historic. At this meeting, DHA provided the City Council with an overview of the agency’s Development plans and objectives. During June, DHA sponsored its second annual Conference on Housing. This well attended forum explored vital topics germane to affordable housing in the Durham area and tangential themes e.g. Healthcare, Education and Public Safety. Dallas J. Parks joined DHA as CEO in June of 2010. He has worked extensively in the private sector and spent over 20 years in housing management. We thank DHA’s dedicated staff, partners and supporters including: Resident leadership, not-for-profit organizations and City and County officials. We also would like to acknowledge the dedication and effectiveness of DHA’s Board of Commissioners. Leadership Team Shannon McLean, Director, Development & Real Estate Strategies Jeffrey Causey, CPA, Chief Financial Officer Rhega Taylor, Director, Housing Choice Voucher Program Vickie Ellis, Capital Improvements/ Strategic Plan Administrator Elvert Dorsey, Director, Resident Services Sabrina Sinegal, Director, Human Resources 2 DURHAM HOUSING AUTHORITY | 2012 Annual Report (L-R) DHA Chairman Tom Niemann, CEO Dallas J. Parks, Deputy Asst. Secretary – Field Policy & Management (HUD-Washington DC) Pat Hoban-Moore, Mayor William V. “Bill” Bell, City Director of Community Development Reginald Johnson, NCCU Director of Government and Community Relations Starla Tanner (L-R) City Councilman/DHA Liaison Steve Schewel, Commissioners Barbara Lofton and David Haley, DHA Chairman Tom Niemann, CEO Dallas J. Parks, Mayor William V. “Bill” Bell, Commissioner Gloria Nottingham, Director of Development & Real Estate Strategies Shannon McLean, County Commissioner Michael Page and Community Development Director Reginald Johnson Development In February 2013, renovation was completed on Edgemont Elms, a 57-unit multi-family mixed-income development. The total development cost was $2.4 million. The renovation efforts included new siding, windows, roof, appliances, carpet and shutters. Landscaping work will be completed in 2013. This former market-rate development now consists of a management office/model apartment, 16 public housing units and 41 market-rate units. The development currently has an occupancy rate of 89%, the highest it has been in several years. Goley Pointe will be a 20-unit multi-family rental development comprised of two detached, six semi-detached and 12 row-house style units. The two detached (single-family) structures will be lease-to-own options. The bedroom distribution will include four one-bedroom units, nine two-bedroom units and seven three-bedroom units. DURHAM HOUSING AUTHORITY | 2012 Annual Report 3 The Goley Pointe units will be leased via a site-based waiting list. The 20 units will be occupied by persons at or below 80% of the area median income level. Twelve of the 20 units will serve homeless families. The site will be comprised of 14 public housing units and six market rate units. Development Ventures Incorporated (DVI), the Durham Housing Authority’s development instrumentality, secured over $1 million in construction and permanent financing for this project. The North Carolina Housing Finance Agency committed a $600,000 permanent loan through its Supportive Housing Development Program. DVI received $368,073 in Continuum of Care funding to assist with the construction of units for homeless families. DVI is also the recipient of all $600,000 in Neighborhood Stabilization Program funds from SelfHelp Credit Union. It is anticipated that construction will begin in the second quarter of 2013. The estimated total development cost is approximately $3 million. HOPE VI Edgemont Homeownership Program The HOPE VI Edgemont Homeownership development will finalize the FY 2000 Few Gardens HOPE VI grant. This development will consist of 37 newly constructed detached, single-family for-sale homes. All 37 homes will be sold to households earning 80% or less than the area median income with prices ranging from $109,900 to $130,900. The square footage of the homes will range from 1200 to 1456. The estimated total development cost is $16 million. HOPE VI Mortgage Assistance Program The HOPE VI Mortgage Assistance Program consists of 67 mortgage assistance grants available to households earning no more than 80% of the area median income. To date, 55 mortgage assistance grants were provided to citizens of Durham totaling $391,227.04. The purchase prices of the assisted homes range from $80,000 to $199,990. Choice Neighborhoods Initiative DHA was awarded a FY2012 Choice Neighborhoods Initiative (CNI) $300,000 planning grant to develop a plan for Durham’s Southeast Central Neighborhood, which includes its oldest public housing community – McDougald Terrace. The goal of the CNI program is to transform neighborhoods of concentrated poverty into those of opportunity. Choice Neighborhoods employs a comprehensive approach to neighborhood transformation. 4 DURHAM HOUSING AUTHORITY | 2012 Annual Report The program will support organizations working to transform neighborhoods by revitalizing severely distressed public and/or assisted housing and leveraging investments in well-functioning services, high quality public schools and education programs, high quality early learning programs and services, public assets, public transportation and improved access to jobs. DHA will proceed with the development of a Neighborhood Plan, which will include input from residents, its partners (City of Durham, North Carolina Central University, Durham Technical Community College, Durham County’s Department of Social Services, Durham Economic Resource Center, Triangle Transit) and other interested persons. The City of Durham committed $133,000 cash to assist with the planning efforts. The North Carolina Mutual Life Insurance Company committed $2,000 cash and DHA committed $167,000. DHA’s total cash leverage is $301,667 and its in-kind leverage is more than $900,000. Bond Issuance DHA has the statutory power to provide grants, loans, interest supplements and other programs of financial assistance to public and private developers of housing for persons of low income, moderate income or low and moderate income. DHA recently agreed to issue bonds for a Durham property. The property was awarded an allocation of $9.8 million in volume cap. Preiss-Steele Place In 2012, DVI applied for and received 9% low-income housing tax credits from the North Carolina Housing Finance Agency for Preiss-Steele Place, a 102-unit one-bedroom senior and disabled development. After renovations, the site will become an 82-unit development, comprised of 62 one-bedroom units and 20 two-bedroom units. The units will range from 526 square feet to 1052 square feet. The development will serve households that are up to 60% of the area median income limit. The estimated total development cost is $8.6 million. Rental Assistance Demonstration The Rental Assistance Demonstration (RAD) program is authorized by the Consolidated and Further Continuing Appropriations Act of 2012 (Public Law 112-55, approved November 18, 2011), which provided fiscal year 2012 appropriations for HUD (2012 Appropriations Act). RAD’s first component allows projects funded under the public housing programs to convert their assistance to long-term, project-based Section 8 rental assistance contracts. Under this component of RAD, public housing agencies owners can choose between two forms of Section 8 Housing Assistance Payment contracts: project-based vouchers or project-based rental assistance. The 2012 Appropriations Act authorized up to 60,000 units to convert assistance under this component. DHA received a RAD award for its Morreene Road public housing development, a 224-unit one-, two- and three-bedroom unit development. The development will be converted to a project-based rental assistance site. Development Ventures Incorporated will renovate the development via 4% low-income housing tax credits from the North Carolina Housing Finance Agency, bonds and a loan. DHA also anticipates submitting additional RAD applications for up to three additional sites. DURHAM HOUSING AUTHORITY | 2012 Annual Report 5 Capital Improvements DHA continues to build on its success in implementing the Active Strategy Enterprise software that has served as a management platform for its Blueprint for Success. This award-winning scorecard method of outcome management has allowed DHA to make effective data-driven decisions in managing capital improvement projects. Training for the most recent version of the software (ActiveStrategy Enterprise 10) was completed for the system administrators, power users and end users by November 7, 2012. As of November 13, 2012, the ASE10 software conversion project was 100% complete. The DHA ASE10 production website is up and running. 6 DURHAM HOUSING AUTHORITY | 2012 Annual Report Capital Improvements accomplishments include the completion of several grant cycles: 2008 CFP Grant – As of February 29, 2012, grant was 100% expended. 2008 CFP RHF Grant – As of June 25, 2012, grant was 100% expended. 2009 ARRA CFP Grant – As of January 31, 2012, grant was 100% expended. In April 2012, submitted the last quarterly reports in FederalReporting.gov and the Recovery Act Management and Performance System (RAMPS) reporting systems to complete and finalize the ARRA grant activities. FederalReporting.gov collected quarterly data on the number of jobs created and retained as “full-time equivalents” (FTEs), project activities and the total federal amount of ARRA funds received/invoiced/expended. RAMPS collected quarterly information on ARRA modernization activities, energy efficiency measures, unit counts and funding. As of April 30, 2012, started the submission of quarterly reports in the EPIC system (Energy and Performance Information Center) for all open CFP Formula and RHF CFP grants. EPIC is a program designed to collect information on energy efficiency measures (EEMs) being implemented with the CFP Formula and RHF Grants, as well as non-energy modernization activities, unit counts and funding. The EPIC system inherited most of the characteristics and functionality of the RAMPS system. An average of 34 reports was submitted for each of the four quarters in 2012. FY2013 PHA 5-Year and Annual Plan was submitted September 28, 2012 and approved October 15, 2012. An application was submitted for the FY 2012 Safety and Security Emergency CFP grant October 16, 2012. Requested the maximum grant award amount of $250,000 to address safety and security emergencies that threaten the health and safety of the public housing residents. If awarded, funding will be used to install security cameras and lighting at McDougald Terrace, Cornwallis Road and Oxford Manor. Award notifications by HUD are pending. Capital Improvements staff provided construction management services for DHA’s affordable housing projects - Edgemont Elms Rehabilitation and 1010 Worth Street Demolition/New Construction. The staff also implemented and managed the multiple stages of nine capital improvement projects at various AMPS to include fluorescent lighting conversion, CPTED improvements, breezeways/stairs repairs, miscellaneous site improvements, installation of range hoods, plumbing renovations, flooring repairs, dumpsters/pads/enclosures, playground areas/equipment/fences, sidewalks repair/replacement, community signage, community center renovations, handrails installations at interior stairs and replacement of miscellaneous basement exterior doors. DURHAM HOUSING AUTHORITY | 2012 Annual Report 7 Resident Services Resident Services Director Elvert Dorsey and Education Program Manager Ashley Johnson congratulate Miss Daje’ Muhanned as she receives the $500 Academic Achievement Scholarship. She was a resident of the Laurel Oaks Community and participated in the Dropout Prevention Program where students receive tutoring, job readiness training, help with writing resumes, SAT preparation and college tours. Miss Muhammed was subsequently admitted to Livingstone College. DHA seeks to develop a foundation for sustainability through capacity building, developed by the continued submission of grant applications by its Resident Services staff. The awarded grant applications will fulfill program goals and objectives, while investing in the continued economic and personal development of residents served by DHA. 8 DURHAM HOUSING AUTHORITY | 2012 Annual Report In 2012 DHA received grant funding totaling $306,280 as well as an additional $200,000 in in-kind donations from its community partners. Ruffin Edwards Academic Development Scholarship (READS) The mission of Learning Assistance, Inc.’s READS program is to provide scholarship assistance and supportive services to students who live in public housing and wish to pursue higher education. In 2012 a total of $15,010.50 was awarded to 33 public housing residents. Scholarship awards increased from $400 per semester to $500 per semester as a means to attract more student interest in the READS Program. Eligible students may now qualify for up to $1,000 per year. READS Scholar Spotlight Justin Hester (shown on our cover) of Damar Court graduated with honors from Riverside High School in 2012 and is currently pursuing a Bachelor of Science in Mechanical Engineering at North Carolina A&T State University. He was selected for the Helping Orientation Minorities in Engineering (HOME) Program, a six-week summer residential program in which students enrolled in a calculus course along with a freshman “survival” course all of which earned him 4 hours of university credit. Justin has begun a 6-month employment opportunity with Toyota Motor Engineering & Manufacturing North America, Inc. in Georgetown, Kentucky. His employment began in May 2013 and continues through December. Youth Programs The 21st Century Community Learning Century completed its afterschool service on May 18, 2012. A total of 261 students were enrolled throughout the year. The Dropout Intervention Program (DIP) targeted 100 Durham Public School students, grades 8-12 who reside in the Club Boulevard, Oxford Manor, Cornwallis and Damar Court communities to help students identify their strengths and utilize them to overcome their barriers to promote academic achievement and reduce the occurrence of behavior problems. DURHAM HOUSING AUTHORITY | 2012 Annual Report 9 Graduate Recognition The 21st Century CLC Program, Dropout Intervention Program and READS program sponsored the 2012 DHA Graduation Celebration on June 11, 2012 at Lyon Park Community Center. Fifteen 2012 high school and college graduates were recognized for their accomplishments. Two graduates were recognized for their academic achievements in the form of $500 scholarships, sponsored by the Dropout Intervention Program. The graduates attended Riverside High School and Hillside High School. Youth participants in the 21st Century CLC Program and Dropout Prevention Program participated in an outing to Washington DC on June 14, 2012. A total of 45 participants and chaperones participated in the trip. Community partners from the Durham Police Department and DHA housing communities assisted with supervision. Youth spent the day touring the Smithsonian museums and the Dr. Martin Luther King Jr. Memorial. Youth Residents in the 21st Century, Dropout Prevention and Hip HOP Choir traveled to Greenville, South Carolina to view a live performance of “The Lion King” on June 21, 2012. Family Self-Sufficiency Fourteen (11-Housing Choice Voucher; 3-Public Housing) families completed the DHA Family Self-Sufficiency (FSS) program in 2012. The FSS Program is a HUD program that encourages communities to develop local strategies to help Public Housing and Housing Choice Voucher families obtain employment that will lead to economic independence and self-sufficiency. Public housing agencies work with welfare agencies, schools, businesses, and other local partners to develop a comprehensive program that gives participating FSS family members the skills and experience to enable them to obtain employment that pays a living wage. The 14 graduating families received a total of more than $65,400 in escrow funds to build wealth and maintain self-sufficiency. The escrow account is an interest-bearing account established by DHA for each participating family. An escrow credit, based on increases in earned income of the family, is credited to this account during the term of the FSS contract. If the family completes the contract and no member of the family is receiving cash welfare assistance, the amount of the FSS account is paid to the head of household. 10 DURHAM HOUSING AUTHORITY | 2012 Annual Report Empowering Residents The Resident Services staff hosted an empowerment conference entitled “Mind, Body and Soul: Uncover Who I Am.” This bi-annual series was designed to enhance residents’ lives by addressing issues that specifically impact health, relationships and overall lifestyles. Forty women attended the conference on October 27, 2012. The audience was comprised of participants from the ROSS, FSS, HOPE VI, READS and HCV programs. Conference topics included female health concerns, pregnancy support services, sexual integrity, domestic violence and relationships. Partners assisting with the conference included: CAARE, Inc., Costco, Portrait Innovations, Chick-Fil-A and Feed My Sheep. Internship Program DHA implemented an internship program with NCCU Departments of Criminal Justice, Social Work and Human Science. Undergraduate and Graduate students implemented various programs within the DHA communities to assist residents in becoming self-sufficient. DHA established the internship program to give students practical field experiences that complement academic study; to give students practical experience working with professionals and residents and to provide students with professional networking opportunities for future employment. In 2012 there were 17 NCCU students interning within the Resident Services Department. DURHAM HOUSING AUTHORITY | 2012 Annual Report 11 The Housing Choice Voucher Program is annually rated by HUD under the Section Eight Management Assessment Program (SEMAP). This standardized assessment evaluates how a housing authority manages the program, using 15 indicators. DHA received 93% of available points in this ranking, resulting in “high performing” status for the HCV program. The Public Housing Program’s management is annually rated by HUD under the Public Housing Assessment System (PHAS). This assessment examines how the agency manages its finances, capital improvements and physical properties. DHA’s estimated score for FY 2012 was 89.2, which (if confirmed) will result in the highest end of the “standard performing” range. 12 DURHAM HOUSING AUTHORITY | 2012 Annual Report Partners (L-R) Durham Police Chief Jose Lopez, Corporal Christopher Andrews, Deputy Chief Loretta Clyburn and Commander Patrice Andrews. DHA’s residential communities are, at their essence, neighborhoods that connect to the larger City of Durham. The Housing Authority relies on its partners to accomplish what is possible in rebuilding neighborhoods, protecting residents and making Durham a desirable place to live. Through its partnership with the Durham Police Department, DHA has conducted countless outreach programs and built strong, constructive relationships between the residents served in assisted housing and the law enforcement professionals who protect them. We are all grateful for the good work accomplished by these efforts and will continue to build a more secure community by working together with all Durham first responders and City staff, whose hard work and dedication is invaluable to its citizens. DURHAM HOUSING AUTHORITY | 2012 Annual Report 13 At the Durham Marriott, DHA sponsored its second annual conference on housing in June 2012 featuring a keynote speech from HUD’s Assistant Secretary for Public & Indian Housing, Sandra B. Henriquez. Many of DHA’s partners from the Durham Community attended. (Clockwise from top left) DHA CEO Dallas J. Parks and WTVD’s Anthony Wilson listen during the luncheon speech by NAHRO President Saul Ramirez. City of Durham Community Development Director Reginald Johnson, Deputy City Manager Keith Chadwell and Starla Tanner, Director of Government & Community Relations, NCCU. Jeffrey Lines of TAG Associates and Laura Thrift (Legislative Assistant to Rep. David Price) Sandra Henriquez, Assistant Secretary of Public & Indian Housing delivered the Keynote address (HUD) delivers the keynote address. 14 DURHAM HOUSING AUTHORITY | 2012 Annual Report Summary Statement of Revenues, Expenses and Changes in Net Assets Summary Statement of Revenues, Expenses and Changes in Net Assets Year Ended December 31 Operating Revenues Tenant rent Operating grants & subsidies Fee Revenue Other revenues Total operating revenues Operating Expenses Administration Tenant services Utilities Maintenance & operations Protective services General expense Housing assistance payments Depreciation & amortization Total operating expenses Net Operating income (loss) Non-operating revenues (expenses) Investment income Mortgage interest income Interest expense Casualty Loss Gain on sale of capital assets Total non-operating revenues (expenses) Change in net assets before contributions and transfers Capital grants contributions Change in net assets Prior year adjustments Net Assets, beginning of year Net Assets, end of year 2012 2011 2010 $ 4,669,756.0 31,025,492 2,777,682 366,714 38,839,644 $ 4,505,300.0 32,042,316 2,603,228 629,148 39,779,992 $ 4,589,815.0 33,627,721 3,662,408 603,094 42,483,038 8,489,864 1,060,938 3,353,138 5,539,541 227,809 1,597,550 17,759,833 8,886,218 1,189,793 3,320,488 6,338,402 216,640 1,632,583 18,536,427 3,375,544 41,404,217 (2,564,573) Change 164,456.0 (1,016,824) 174,454 (262,434) (940,348) 3.7% -3.2% 6.7% -41.7% -2.4% 10,799,488 1,205,944 3,499,841 6,027,077 169,538 1,564,042 19,072,050 (396,354) (128,855) 32,650 (798,861) 11,169 (35,033) (776,594) -4.5% -10.8% 1.0% -12.6% 5.2% -2.1% -4.2% 3,042,024 43,162,575 (3,382,583) 2,980,991 45,318,971 (2,835,933) 333,520 (1,758,358) 818,010 11.0% -4.1% -24.2% 8,040 353,876 (103,070) (23,647) 235,199 13,332 (118,083) 36,932 42,095 (25,724) 25,800 (137,184) 367,246 255,862 (5,292) 15,013 (60,579) (42,095) 260,923 -39.7% 0.0% -12.7% -164.0% -100.0% -1014.3% (2,329,374) 2,474,808 (3,408,307) 2,434,769 (2,580,071) 4,044,147 1,078,933 40,039 -31.7% 1.6% (973,538) 1,464,076 35,095,645 33,631,569 $ 34,122,107 $ 35,095,645 1,118,972 (973,538) 145,434 -114.9% 145,434 34,122,107 $ 34,267,541 $ % Change $ DURHAM HOUSING AUTHORITY | 2012 Annual Report -2.8% 0.4% 15 Summary Statement of Net Assets Summary Statement of Net Assets December 31 2012 2011 2010 9,338,875 $ 11,570,267 $ 12,431,023 9,578,658 9,234,313 21,183,888 Change % Change Assets Current Assets $ (2,231,392) -19.3% 8,822,705 344,345 3.7% 19,815,238 20,143,162 1,368,650 6.9% $ 40,101,421 $ 40,619,818 $ 41,396,890 $ (518,397) -1.3% $ $ $ $ (610,179) -22.5% Non-Current Assets Capital Assets Total Assets $ Liabilities & Net Assets Current Liabilities 2,107,661 2,717,840 2,210,821 Non-Current Liabilities 3,726,219 3,779,871 4,090,424 (53,652) -1.4% Total Liabilities 5,833,880 6,497,711 6,301,245 (663,831) -10.2% 18,066,371 16,542,828 16,623,533 1,523,543 9.2% Invested in Capital Assets Net of Related Debt Restricted Net Assets 9,587,546 9,483,408 8,516,047 104,138 1.1% Unrestricted Net Assets 6,613,624 8,095,871 9,956,065 (1,482,247) -18.3% Total Net Assets 34,267,541 34,122,107 35,095,645 145,434 0.4% $ 40,101,421 $ 40,619,818 $ 41,396,890 (518,397) -1.3% Total Liabilities & Net Assets 16 DURHAM HOUSING AUTHORITY | 2012 Annual Report $ Club Boulevard Laurel Oaks Scattered Sites 2415 Glenbrook Drive 600 Laurel Oaks Drive 300 Gary Street Cornwallis Road Liberty Street Edgemont Elms 3000 Weaver Street 131 Commerce Street 912 Angier Avenue Damar Court McDougald Terrace Preiss-Steele Place 3412 Glasson Street 1101 Lawson Street 500 Pickwick Trail Forest Hill Heights Morreene Road 700 S. Mangum Street 3412 Glasson Street Hoover Road Oldham Towers 1126 Hoover Road 519 East Main Street J. J. Henderson Housing Center Oxford Manor 807 S. Duke Street 3633 Keystone Place Durham Housing Authority 330 E. Main Street Durham, NC 27701 durhamhousingauthority.org (919) 683-1551