Date

AGENDA #6

February 27, 2004

Department of Housing

Initial Budget Presentation to the Mayor and Town Council

2004-2005

I. Mission Statement

The mission of the Chapel Hill Department of Housing is to provide decent, safe, and affordable rental housing for low-income families. Our mission is also to provide services to help public housing families improve basic life skills and achieve economic independence.

II. Brief Services Description

The key services provided by the Department of Housing are:

· Low cost or no cost rental housing for low-income families

· 24-hour emergency maintenance repair services 7 days a week

· Information and referral about the public housing program, other federal housing programs, and area human service resources

· Financial counseling to help residents manage money responsibly

· Conflict resolution to help residents resolve family or neighborhood disputes

· Comprehensive orientation for new residents

· Technical and general assistance to support programs and activities of the Residents’ Council

· Staff support to the Housing and Community Development Advisory Board

· Referral services for residents with alcohol or drug dependency problems

· Home visits to complete redeterminations of eligibility or receive rental payments from elderly or disabled residents who can not come to the office

III. Departmental Revenue Estimates

REVENUE SOURCE

Actual

2002-2003

Revenues

2003-2004

Budgeted

Revenues

Estimated

2003-2004

Revenues

Proposed

Revenues

For 2004-2005

Dwelling Rents

378,181

410,780

338,436

Other

71,472

39,280

22,108

22,936

HUD Subsidy

1,103,971

972,704

1,014,675

1,158,208

Appropriation from

Fund Balance

236,698

267,159

132,318

TOTAL

1,553,621

1,659,462

1,714,722

1,651,898

Key Budget Issues

· The proposed 2004-2005 budget totals $1,651,898, about a $7,500 decrease from the 2003-2004 budget

· Estimated revenues are less than estimated expenditures

· We would use $132,318 of fund balance to cover expenditures

· The remaining fund balance would be about $300,044, which is above recommended federal guidelines. HUD guidelines recommend a fund balance equal to 20% of total routine operating expenses, or $298,416.

IV. Departmental Base Budget Cost Estimates

CATEGORY

2003-2004 Original Budget

Requested 2004-2005 Budget

Personnel

964,444

1,001,177

Operations

534,182

490,901

Capital Equipment

160,836

159,820

TOTAL

1,659,462

1,651,898

V. Programs Going Well

· Customer service to residents of public housing

· Enforcement of lease requirements

· The preventive maintenance program which is key to assuring that the public housing apartments are safe places to live

· Excellent response time to repair requests, including 24-hour emergency repair services

· The applicant screening process continue to be an effective tool in selecting applicants for public housing occupancy who have not been involved in criminal or illegal drug activities

· The ACHIEVE! Family Self-Sufficiency Program has 6 participants-One participant has obtained full-time employment and an escrow account has been established

· The Refurbishing Program - there are no occupied apartments that are not within our five-year refurbishing goal

· The one participant in the Transitional Housing Program has been enrolled in a financial counseling and budgeting program for 12 months - the family has an escrow account of about $2,000

· The Comprehensive Renovations Program - in addition to providing central air conditioning, we are including renovation features that enhance the exterior as well as the interior appearance of the public housing apartments

· Cooperative relationships with the schools and area human services agencies

VI. Programs That Could Be Improved

· Continue to identify ways to increase residents’ participation in community meetings.

VII. Proposed Additions or Reductions