City of Milwaukee - File #: R13118

• File #: R13118
• Version: 0
• Type: Housing Authority Resolution
• Status: Passed
• File created: 12/6/2019
• In control: HOUSING AUTHORITY
• On agenda: 12/17/2019
• Final action: 12/17/2019
• Title: Resolution approving HACM’s 2020 Fiscal Operating Budgets that include the Section 8 Housing Choice Voucher Program, Berryland, Northlawn and Southlawn (unsubsidized affordable housing) developments, Public Housing Program and Central Office Cost Center and Tax Credit LLC
• Sponsors: THE CHAIR

Date	Ver.	Action By	Action	Result	Tally
12/17/2019	0	HOUSING AUTHORITY	ADOPTED; Minutes note: Mr. Pérez asked HACM staff Fernando Aniban, Chief Financial Officer, Finance Director Rick Koffarnus, and Director of Strategic Initiatives Kaylin Nuss to present the 2020 HACM Operating Budgets and Strategic Goals. Ms. Nuss, stated that in the past years, Board members would meet in small groups and have discussions regarding the proposed budgets for current fiscal year. However, this year, it was agreed to present to the Commissioners at the Board meeting in order for them to provide feedback and suggestions on budget items. Ms. Nuss summarized HACM’s goals for 2020 in the following areas; to optimize organizational structures and business processes, to implement portfolio repositioning, to transform Westlawn Gardens and surrounding neighborhood through Choice Neighborhood initiative, develop comprehensive housing plant-people and housing, to promote socio-economic and racial diversity of the neighborhood and personal mobility of residents and establish/execute communication strategy to promote positive image of the Housing Authority. Ms. Nuss provided summarizing documents with the agenda. Commissioners were able to have a Q&A for clarification on budget items such as; compensation, staffing, benefits and the dynamics for RAD and strategic operations as it pertains to current properties.	Pass	6:0

Number

R13118

Version

Original

Reference

Sponsor

The Chair

Title

Resolution approving HACM’s 2020 Fiscal Operating Budgets that include the Section 8 Housing Choice Voucher Program, Berryland, Northlawn and Southlawn (unsubsidized affordable housing) developments, Public Housing Program and Central Office Cost Center and Tax Credit LLC

Analysis

Body

WHEREAS, the Secretary-Executive Director is required to submit annual operating budgets for the HACM’s Public Housing program, Section 8 Housing Choice Voucher program, Unsubsidized Affordable Housing program (aka Berryland, Northlawn and Southlawn developments), and Central Office Cost Center for approval by the board; and

WHEREAS, the Housing Authority of the City of Milwaukee owns and manages 2,632 rental units under the federally-funded Public Housing program; and

WHEREAS, the Secretary-Executive Director is required by regulations promulgated by the U. S. Department of Housing and Urban Development to develop property-based budgets and funding allocations consistent with the requirements of the Final Rule 79FR 54983 published in the Federal Register on 9/19/2005 as amended by PIH Notice 2006-14(HA); and

WHEREAS, the Secretary-Executive Director recommends that a total budget of $19,165,508 including the extraordinary maintenance items of $210,000 be approved for Fiscal Year 2020 for the Public Housing Program; and

WHEREAS, the Secretary-Executive Director recommends that the property-based budgets for all Asset Management Property (AMP) groupings be approved; and

WHEREAS, the Housing Authority of the City of Milwaukee (HACM) administers the federally funded Section 8 Housing Choice Voucher Program which serves more than 6,200 families; and

WHEREAS, the Secretary-Executive Director recommends an administrative budget for the year 2020 of $3,683,197 for the Section 8 Housing Choice Voucher Program; and

WHEREAS, the Housing Authority of the City of Milwaukee owns and manages 980 rental units of Unsubsidized rental housing; and

WHEREAS, the Secretary-Executive Director has submitted a proposed operating budget of $6,557,894 (including debt service & replacement reserve) for fiscal year 2020 for the Berryland, Northlawn and Southlawn Unsubsidized rental housing developments; and

WHEREAS, the Secretary-Executive Director is required by federal regulations to submit an annual operating budget for the Central Office Cost Center covering various support services necessary to administer its housing programs; and

WHEREAS, the Secretary-Executive Director confirms that management, asset management, bookkeeping, other fee income and unrestricted reserve will be available to support the Central Office Cost Center; and it

WHEREAS, the Secretary-Executive Director recommends a Central Office Cost Center budget of $9,481,653 for the 2020 Fiscal Year; and

WHEREAS, the HACM’s operating budgets includes an amount of 3 percent of total salary budget to fund for performance based salary adjustment to be given to all eligible direct HACM employees to be determined by the Secretary-Executive Director; and

WHEREAS, as part of the continued implementation of performance based salary structure, management plans to allocate incentive pay of up to 3 percent of the total salary budget subject to funding availability to be determined at the end of 2020; and

WHEREAS, management is recommending to make permanent the temporary 2.5% salary adjustments given to eligible employees in 2012; and

WHEREAS, the Housing Authority of the City of Milwaukee through subsidiaries owns and manages 692 Rental Assistance Demonstration (RAD) Project-based Voucher (PBV) units in 12 Covered Projects; and

WHEREAS, the Housing Authority of the City of Milwaukee is the Section 8 administrator for the RAD PBV Units; and

WHEREAS, HUD RAD Notice Revision 4 H 2019-09 PIH 2019-23 Section 1.6(D)(2) requires the Project Owner to submit to the administering PHA’s Board the operating budget for the covered project annually to confirm the Project Owner is making deposits into the Reserve for Replacement account in accordance with the RAD Conversion Commitment (RCC) as well as assess the financial health of the Covered Project; and

WHEREAS, the Secretary-Executive Director confirms that funding subject to federal appropriations for operating subsidy has been included in the 2020 budget to support HACM’s continued participation, including related travel, in the following professional organizations, but not limited to: American Planning Association (APA), Council for HOPE VI and Mixed Finance, Council of Large Public Housing Authorities (CLPHA), Green Roofs for Healthy Cities, Housing Authority Insurance Group (HAIG), Congress on New Urbanism (CNU), Housing Development Law Institute (HDLI), HUD/HHS Elderly Housing Initiative, Midwest Assisted Housing Management Association (MAHMA), National Association of Housing and Redevelopment Officials (NAHRO), National Historic Trust, National Housing & Rehabilitation Association (NH&RA), National Housing Coalition (NHC), National League of Cities, Project for Public Spaces, The Corps Network, United States Green Building Council (USGBC), Urban Land Institute (ULI), Wisconsin Association of Housing Authorities (WAHA), Wisconsin Green Building Alliance (WGBA), YouthBuild USA, National Association of Pest Management (NAPM), Wisconsin Pest Control Association (WPCA), Housing Alliance Group LLC (HAGL)Housing Is, Choice Neighborhoods; NOW THEREFORE BE IT,

RESOLVED, by the Housing Authority of the City of Milwaukee that the operating budgets for its Public Housing program, Section 8 Housing Choice Voucher program, Unsubsidized Affordable Housing program (aka Berryland, Northlawn and Southlawn developments), and Central Office Cost Center for fiscal year is hereby approved; and, be it

FURTHER RESOLVED, by the Housing Authority of the City of Milwaukee that the reserve for replacement accounts in RAD Covered Projects are fully funded; and, be it

FURTHER RESOLVED, that the Secretary-Executive Director is hereby authorized to fill all direct Housing Authority positions funded in the year 2020 HACM’s entity-wide  budget; and fill unfunded positions as funding becomes available and, be it

FURTHER RESOLVED, that the Secretary-Executive Director is hereby authorized to implement the performance based salary adjustment to all eligible direct HACM employees effective as of pay period 1 and, be it

FURTHER RESOLVED, that the Secretary-Executive Director is hereby authorized to make permanent the temporary salary adjustments given to employees in 2012, effective as of pay period 1 and, be it

FURTHER RESOLVED, that the Secretary-Executive Director is hereby authorized to disburse incentive pay, if any, in accordance with the HACM’s Performance & Appraisal System and Variable Pay Incentive Plan Policy; and, be it

FURTHER RESOLVED, that training and travel related to the professional organizations funded in the HACM’s 2020 operating budgets be and is hereby approved.

Requestor

Drafter

Housing Management, Kaylin Nuss, Director of Strategic Initiatives, 12/6/2019