2012 PHADA Commissioners Conference January 8-11, 2012. Michael LaRiccia, Program Advisor, U.S. Dept. HUD [email protected] Coping with HCV Budget Cuts. Revenue Reduction & Liquidity Squeeze. The Pie is getting smaller and HUD is handing out the slices on an as needed basis.
This 1700 unit PHA received $7.9 million in 2011, and is on track to spend about $7.5 million. It began the year with a NRA $217,097 – about 2.7% of BA, and will end the year with about $655,000, an 8.6% NRA. (It will lease 98.6% of its units.)
In 2011, HUD will disburse all $7.9 million, and MMHA will retain a reserve of $655,000. They will also earn about $866,517 in admin fees. All tolled, $8.8 million will be disbursed. Had the 2012 admin fee levels and disbursement changes been applied to 2011, MMHA would have received $8.062 million, and would have no NRA funds in the bank at year end. Admin fees would have dropped from $866,517 to $782,997.Liquidity Impact
300 unit sample PHA at median fee rate of $61.54 pum. Leasing at 98.5%.
Estimated Fee Rate for 2012
Median: $61.01 Little Rock, Ar.
A 300 unit fully leased program would have earned the above amounts in the three locations in 2011.
In our 300 unit PHA Example: An underleasing PHA can add $1,600 in revenue in 2012 with each additional UML Percentage Point .
Median is $.31 per UML, but over one third of PHAs recover zero fraud, while one-fifth recover over $1 per UML.
A $1.00 Fraud Recovery rate earns a 300 unit HA about $3,500
Financial Statement compilation – All PHAs.
2003 Ohio PHA Survey
Finding the judicious trade-off between cost to administer and PUC cost savings.
What are thresholds for triggering an Interim?
Board Responsibility: Assessing and Managing Trade-Offs .
Board Responsibility: Strategic Assessment of viability of program in current environment.