WICHITA HOUSING AUTHORITY

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1 WICHITA HOUSING AUTHORITY Semi- Report July 19,

2 EXECUTIVE SUMMARY On January 23, 2001, City Council created Charter Ordinance Number 189 that established the Housing Advisory Board to oversee the Wichita Housing Authority. The membership of the Wichita Housing Authority Board shall consist of the members of the governing body of the City of Wichita, and one additional member who shall be a tenant receiving public housing or Section 8 assistance from the City of Wichita. Such additional member shall be appointed by the mayor with approval of the city council. Whereas the Wichita Housing Authority does not have existing bylaws, quarterly programmatic reports to the Housing Advisory Board are necessary so that City Council remains engaged in the public housing authority s service delivery. The Wichita Housing Authority (Authority) consists of two program divisions: (1) Public Housing and; (2) Section 8 Housing Choice Voucher. Public Housing manages 578 apartment units while HCV administers 2,636 tenant based rental assistance. The Authority receives its funding wholly from HUD. Public Housing receives $3,917,126 for operating purposes and $810,174 restricted to the Capital Fund Program each year. HUD also provides nearly $13 million annually to the HCV for administration of its voucher program. On June 27, 2016, the Authority s Public Housing program received a Public Housing Assessment (PHAS) of 72 out of 100 possible points and was designated as Sub-Standard by HUD for Fiscal Year This label marks the fifth time since 2011 that the Authority has been Sub-Standard. Key deficiencies were in property management and financial management. Public Housing has a severe vacancy issue. On average, there are nearly 40 units that remain vacant each month resulting in a vacancy rate of 7 percent. Consequently, the Authority cannot receive its full administration fee from HUD, which is approximately $109,000 annually. The Authority has been depleting its operating reserve in order to fully fund the program s expenditures. As of May 31, 2016, Public Housing only has $545,553 in reserves whereas $778,748 has been needed annually to cover shortfalls. Public Housing only has until December 31, 2016, to increase its PHAS and revenue or there will be insufficient funds to cover all expenses and the Sub-Standard designation will occur for Fiscal Year 2016 as well. On the other hand, the HCV program was designated by HUD on April 15, 2016, as a High Performer for Fiscal Year Ended December 31, A 97 percent rating was attained based upon 140 of 145 points on the Section 8 Management Assessment Program. The HCV program endeavors to increase its voucher utilization and has processed 2,374 voucher applications to date this year. The goal is to issue 500 new vouchers due to program attrition. HUD also awarded HCV with 10 additional vouchers for veterans in its Veterans Affairs Supportive Housing Program. The additional rental assistance helps to fulfill the Mayor s Challenge of Ending Homelessness among Veterans. The Authority contacted HUD for technical assistance in order to improve its program management. HUD will assist the Authority to address weaknesses in admissions and leasing, succession planning, financial systems, and the design of a web-based portal so that program participants can receive and update information without having to physically complete paperwork. 2

3 Public Housing On June 27, 2016, the Authority s Public Housing program received a Public Housing Assessment (PHAS) of 72 out of 100 possible points and was designated as Sub-Standard by HUD for Fiscal Year This label marks the fifth time since 2011 that the Authority has been Sub-Standard. Key deficiencies were in property management and financial management. Public Housing has a severe vacancy issue. On average, there are nearly 40 units that remain vacant each month resulting in a vacancy rate of seven percent. Consequently, the Authority cannot receive its full administration fee from HUD, which is approximately $109,000 annually. As of May 31, 2016, Public Housing only has $545,553. Public Housing only has until December 31, 2016, to increase its PHAS and revenue or there will be insufficient funds to cover all expenses and the Sub-Standard designation will occur for Fiscal Year 2016 as well. Public Housing has a significant vacancy issue. On average, there are nearly 40 units that remain vacant each month resulting in a vacancy rate of seven percent since the last quarter of Consequently, the Authority cannot receive its full administration fee from HUD, which is approximately $109,000 annually. The Authority has been depleting its operating reserve in order to fully fund the program s expenditures. As of May 31, 2016, Public Housing only has $545,553 in reserves to last through December 31, Public Housing only has six months to increase its PHAS and revenue or the Sub-Standard designation may occur again in Fiscal Year The Authority is in this predicament due to net operating deficits from totaling $1,898,897. Eligible internal transfers from allowed the Authority to offset shortfalls. In 2015, private contractors were retained in an effort to get vacant units ready for move-in. This activity resulted in a net loss of $600,169, further reducing the reserve. The current financial status and forecast for the Authority are as follows: Operating Net Income (Loss)-PHA Wide* (355,572) (392,688) (120,046) (97,121) (933,470) (413,283) Capital Fund - 322, , , , , ,543 Operating Transfers AMP transfers Central Office Cost 50, , ,000 - Center (COCC) TOTAL TRANSFERS - IN 372, , , , , ,543 NET INCOME AFTER TRANSFERS 16,428 1,742 24,059 14,879 (600,169) (210,740) *From annual operations for AMPS no COCC included for this total, prior to CF, COCC and AMP transfers. All AMPs included. 3

4 Operating Reserve - CY2015 for AMPS Only Estimated Loss Projection for CY2016 Estimated Net Operating Reserves - 12/31/2016 Estimated COCC Reserves - 12/31/ ,066 (210,740) 199, ,333 The Authority contacted HUD for technical assistance in order to improve its program management. HUD will assist the Authority to address weaknesses in admissions and leasing, succession planning, financial systems, and the design of a web-based portal so that program participants can receive and update information without physically completing paperwork. Action has already begun to make corrective measures to remedy Public Housing s sub-standard status. Marketing, human capital recruitment, process improvement and goal setting are key activities that will guide program performance to higher achievement. Cross-program coordinated efforts are now occurring to optimize outreach and participation throughout the Department. In collaboration with Communications and Information Technology, the Authority now has web-based marketing. This feature will capture social media users. The web-based marketing is already live at the City of Wichita s website where a prospective tenant can view available units and complete an application electronically. Circular advertising has been modified for the appropriate demographics and will run through December 31, Recruitment has been completed and an offer extending to fill the vacant Customer Service Clerk II position. This slot is mission critical for the Authority to determine participant eligibility, develop a viable waitlist and coordinate tenant activities to make people love where they live. By doing so, occupancy will stabilize and vacancies will be wieldy. The City Manager has provided a Management Fellow to augment program management. Marketing, lease-up and continuous improvement exercises are duties being administered and examined to increase service delivery. The Housing Director has also assumed direct oversight of Public Housing. A triage approach is being employed to resolve bottleneck issues. A recent quick win has been resolving an 18 month vacancy with a unit that no one wanted. By ordering smaller appliances, the unit became functional and was leased in less than a week. Relevant goals have been established for staff and will be memorialized with revised Performance Plans by the end of July. Staff is now expected to develop a waitlist of a minimum of 100 prospective tenants for large bedroom units. Public Housing portfolio should never exceed 17 vacant units in order to maintain 97 percent occupancy and qualify for HUD s full administration fee of $109,000 per annum. The current 37 vacancies as a result shall be reduced to no more than 22 by September 30, Thereafter, the Authority will endeavor to 4

5 have no more than 17 vacancies by December 31, 2016, with an ultimate goal of having no more than 10 vacancies in any given month. The portfolio as of July 1, 2016, shows the Authority with 576 units. Two units are currently offline for modernization and are not counted against vacancy. There are 36 vacant units, and the Authority aims to lease as many as 15 during July. Asset Management Portfolio (AMP) June Move Ins June Move Outs # of Units Ready for Occupancy Amp Amp Amp # of Units Not Ready For Occupancy Amp * *1 moved in 7.5/other one Total Housing Choice Voucher Program The Housing Choice Voucher program is a division of the Housing and Community Services Department and the City of Wichita Housing Authority (WHA). It is federally funded through the U.S. Department of Housing and Urban Development (HUD). The 2016 assistance level for Housing Choice Voucher Program will provide assistance to 2636 families by contract with over 800 private landlords. The Housing Choice Voucher division administers the following programs in accordance with HUD rules and regulations and the Housing Choice Voucher Administrative Plan. 1) Housing Choice Voucher Program provides Housing Choice Vouchers (HCV) to low-income families who meet the income eligibility criteria. Families contribute the highest of 30% of their adjusted income or 10%R of gross monthly income toward rent. The program pays the balance of rent due the landlord. The maximum rent allowable in this program, is established by payment standards. 2) The Mainstream Program provides Housing Choice Vouchers for non-elderly persons and families with disabilities, to assist them in renting affordable, accessible and accommodating private dwellings to fit their particular needs due to their disability. 3) The Designated Housing Program provides Housing Choice Vouchers for non-elderly persons and families with disabilities on the Public housing waiting list, to assist them in renting affordable and accommodating private dwellings to fit their disability-related needs. 4) The Family Self-Sufficiency (FSS) Program is designed to help low-income HCV families become selfsufficient. The program helps families establish an escrow account that may be used as a down payment 5

6 to purchase a home, further educational needs, or repair credit. Families graduating from this program have met their self-sufficiency goal. 5) The Housing Choice Voucher Homeownership Program allows HCV assistance to be used for mortgage payments. Recipients must participate in the FSS program, attend homeowner training and secure a mortgage loan. 6) The Veterans Affairs Supportive Housing (VASH) program provides rental assistance through Housing Choice Vouchers for homeless veterans with case management and clinical services provided by the Veterans administration staff located at the local VA Medical Center, and in collaboration with other services in the community. Department Mission To provide housing and related services to benefit the citizens and neighborhoods of Wichita. Housing Choice Voucher Mission To provide affordable, decent, safe and sanitary housing choices for Wichita citizens who meet eligibility criteria through a variety of programs, while promoting self-sufficiency. Two Year Forecasting Tool for Housing Authorities Housing Choice Voucher Programs The U.S. Department of Housing and Urban Development has developed a spreadsheet tool for use by Public Housing Authorities to assist in projecting HCV leasing, spending and funding over a two year period. The purpose of the tool is to facilitate decision making by Housing Authorities and to guide HUD oversight and technical assistance to achieve optimal use of the HCV funds while stabilizing the program. The Wichita Housing Authority s Housing Choice Voucher management team utilizes this tool and in early 2016 to develop planning activities to ensure that appropriate leasing, spending and maximizing funding will lead the program into another successful high performing year. Management determined that the Housing Choice Voucher program team would need to accomplish the following activities: Open HCV program waiting list as it closed on October, 2014 and all families who made application were contacted by December, Waiting list to remain open until 5,000 families complete on-line preliminary application Conduct formal applications meetings for 5,000 households on the waiting list Determine eligibility and issue 1200 vouchers to provide rental assistance to 2,636 households. This goal would assist the Housing Choice Voucher program in decreasing rental assistance reserves to 8.6 percent. Overall goal is to provide 500 new families with rental assistance. The number of new families includes attrition that is projected to occur in Department of Housing and Urban Development national initiative is to decrease reserves to a level that will sustain all HCV programs and provide additional rental assistance to families in need of affordable, safe and decent household. The Wichita s Housing Authority s Housing Choice Voucher program goal is to decrease 6

7 reserves to 8.6 percent in 2016 and this will lead to reserves leveling off at 4-6 percent to meet HUD s initiatives in Activities for the first and second quarters included: Opening the HCV waiting list on February 22, 2015 Contacting 3500 households during January through June 2016 Determining Eligibilities Issuing 600 Vouchers Leasing up 250 new households Month Type of Meeting Number of Households Contacted Number of Households Attended or Rescheduled Voucher Issuance Jan 2016 Formal Application Feb Mar 2016 Formal 1, Application Apr May 2016 Formal 1,538 1, Application Jun 2016 Formal 1, Application Total 4,738 2, New Admission The Housing Choice Voucher program met its overall six months goal of issuing over 900 vouchers to households in Wichita community and 254 new families leasing up. Accomplishments On April 15, 2016, HCV received verification from HUD that the Wichita Housing Authority s Housing Choice Voucher is a high performer. Fifty three new landlords were added to the WHA s HCV program during the first six months in Completed 2016 Utility Allowances that is utilized for both programs of WHA; Low Income Housing Tax Credit (LIHTC) projects; and other housing programs in Wichita community. Housing Choice Voucher Veteran Affairs Supportive Housing program (VASH) met the Mayor s Challenge initiative of ending chronic homelessness among veterans by end of VASH program was successful in applying and receiving additional ten vouchers for homeless veterans. The total number of vouchers for the program is 208. HCV program is on target with City s Performance Measures. City of Wichita s Performance Measures Average Dollar Value of Vouchers Redeemed Over the Course of the Reporting Period per Household 7

8 Benchmark 2015 Actual 2016 Target 2016 Semi- TBD $5,127 $5,100 $5,100 Households That Redeemed Rental Assistance Vouchers Benchmark 2015 Actual 2016 Target 2016 Semi- 1,338 2,374 2,300 2,326 Percentage of Budget and Vouchers Redeemed During the Reporting Period Benchmark 2015 Actual 2016 Target 2016 Semi- 98% Budget 100% 98% 98% ,374 2,300 2,326 Vouchers Household Participating in Family Self-Sufficiency Benchmark 2015 Actual 2016 Target 2016 Semi Households that Graduated from the Self-Sufficiency Program Benchmark 2015 Actual 2016 Target 2016 Semi Waiting List Numbers Benchmark 2015 Actual 2016 Target 2016 Semi- 2,000 1,997 5,000 4,841 8

9 U. S. Department of Housing & Urban Development s Section Eight Management Assessment Program (SEMAP) Performance Measures Number Indicator 2015 Actual Possible Points 1 Selection from Waiting List 15 15/ Reasonable Rent 20 20/15/ Determination of Adjusted Income 15 20/15/ Utility Allowance Schedule 5 5/ Semi 2016 Actual 5 Housing Quality Standard (HQS) 5 5/0 5 Control 6 HQS Enforcement 10 10/ Expanding Housing Opportunities 5 5/0 5 8 Payment Standards 5 5/0 5 9 Timely Reexaminations 10 10/5/ Correct Tenant Rent Calculations 5 5/ Pre-Contract HQS Inspections 5 5/ HQS Inspections 10 10/5/ Lease-Up 20 20/15/ Family Self-Sufficiency 10 10/8/5/3/0 10 Total 145 Max % High Performance Rating 90% & Above Standard Rating 60% to 89% Troubled Rating 59% & Below 9

News from the DuPage Housing Authority August 20, 2015

DuPage Housing Authority 711 East Roosevelt Road Wheaton, IL 60187 PH: 630-690-3555 FAX: 630-690-0702 www.dupagehousing.org News from the DuPage Housing Authority August 20, 2015 DuPage Housing Authority