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9 - Management Report MEMORANDUM To: Board of Commissioners From: Management Staff Subject: Report of Activity Date: February 1, 2011 This month's Management report includes: Consent: Action: December 2010 Preliminary Financial Summary Resolution #1: 2010 Management Assessment (MASS) for PIIAS submission Resolution #2: Section 8 Administrative Plan Adoption Resolution 43: Adoption of Changes to Preferences for the Public Housing and Section 8 Housing Choice Voucher Program Updates: Occupancy Status and Net Rental Income Green Matrix and Solar Tracking CIP Projects Attachments: 2010 Management Assessment for Public Housing Agencies (by email) Resolution #1: 2010 Management Assessment (MASS) for PHAS submission December 2010 Financials Resolution 42 Section 8 Administrative Plan Adoption Resolution 43 Adoption of Changes to Preferences for the Public Housing and Section 8 Housing Choice Voucher Program Green Projects Matrix CONSENT ITEMS: ACTION ITEMS: December 2010 Financial Summary - Preliminary The attached numbers should be considered preliminary. We have completed all of the entries currently identified that affect 2010 income and expense and all balance sheet account reconciliations. However, we are keeping the books open until February 15 for 37 material invoices related to 2010. This was an area of concern to the auditors in 2009 specifically related to large invoices affecting our Capital Grants so we are being extra cautious. We still have some balance sheet clean up to complete before the numbers are considered final (pending audit). Income Statement Boulder Housing Partners completed a successful 2010 with revenues of $21,488,270 and expenses (including loss related to disposition of property) of $17,400,493 resulting in net income of $4,087,777 versus a budget of $2,068,545. It is important to note that this income is not unrestricted cash. Some significant items that adjust income to cash are: ,amortization and depreciation 1,280,000 Developer fees collected, prior years income 570,000 Principal payments on mortgage loans (1,770,000) Capitalization of grant expenditures (3,550,000) Developer fees earned, not yet collected 420,000] Total use of cash 890,000] (Please see the attached statement of Cash Flows for more detail) The major variances from budget arc explained as follows: Total Operations Revenue of $5,950,946 (A) continued in line with budget. Development Fees revenue is $215,556 (B) favorable to budget as a result of the recognition of the remaining fees from Broadway West and the total amount earned to date from Red Oak Park. HCV-HAP Revenue variance of $571,627 (Cl) is partially offset by the increase in FICV- HAP Expense (C2). Both relate primarily to the 181 new vouchers received over the last two years. Revenue exceeds the expense as the lease-up process occurs. Non Federal Grants and Donations revenue exceeded budget by $2,491,211 (D) primarily relating to City of Boulder funds received to retire debt on the Red Oak Parlc land at the closing of the tax credit partnership, City support for rehabilitation of the Bridgewalk property and City support for predevelopment work at High Mar. Federal Capital Grants revenue ended the year unfavorable to budget by $548,369 (E), an improvement from $1,209,979 at September 30. We have several projects close to completion including energy efficiency measures at the public housing family sites and solar installations at the senior sites which will result in recognition of income in 2011. These have been included in the 2011 budget. Total Miscellaneous Revenue (F) includes one-time income from Solar Rebates of $291,403 and insurance dividend revenue of $31,698. HUD Capital Improvement Expense (G) is under budget by $487,226. This is the result of more projects being capitalized than planned in 2010. We have corrected our estimating for the 2011 budget. 2 Z Loss on Disposition of Property of $632,892 (H) is the June write-off of accumulated predevelopment expenditures for Red Oak Park previously recorded as Construction in Progress (CIP) offset by the gain on the sale of a condo at Two Mile Creek. Extraordinary Expense of $100,000 (I) is the write-off of a grant receivable that proved to be structured as a loan with terms unfavorable to BHP. While we are still negotiating with the funding source, accounting rules require this write-off pending clarity of terms. Balance Sheet Accounts Receivable of $1,253,100 (J) includes approximately $180,000 of grant proceeds which have already been collected in 2011 and $420,000 of developer fees for Red Oak Park and Broadway West which should be collected over 2011 and 2012. Restricted Cash - Other (Kl) continues to decline as we spend the money we borrowed for the Canyon Pointe Green Retrofit project and the Energy Performance Contract for the public housing sites. There is a corresponding increase in Construction in Progress (K2) for the work we have done on these projects. They will both be completed in early 2011. Statement of Cash Flows The Statement of Cash Flows provides detail on the overall year to date increase in Cash and Cash equivalents of $171,287(M). The significant items are the increase in restricted Cash (Ll) and the increase in Construction in Progress (L2) as mentioned above. The decline in the current month relates to the delay in receipt of grant funds of $180,000 and payments made fiom the Xcel solar rebate cash to our solar vendors. Portfolio Analysis Report Given the demands of the December close we have not had time to complete the Portfolio Analysis for December. We will have it prepared for the Board Meeting Cash Report Note: The cash restricted for use from the Green Retro Fit Loan and the QECB and BAB bonds has not been included in the cash report. These projects are underway and the cash cannot be used for anything other than the planned project expenses and will all be spent on capital assets by the end of 2011. Resolution #1: Approval of 2010 Management Assessment (MASS) for PHAS submission HUD requires PHAs to submit a Management Assessment to measure performance of our public housing using a number of metrics. Attached is the 2009 submission with 2010 numbers in the margin for comparison. The majority of the metrics are holding steady (annual inspections, capital fund, security and economic self-sufficiency), with the following exceptions: • Vacant turnover time: There is a substantial difference in the vacant unit turnover time for 2010 versus 2009. The total average days vacant increased (from 26.8 days to 46). • Average lease up days: The average lease up days increased (from 17.86 days to 30 days). This is due to management's decision to hold units for two reasons: 1) Priority was given for Family Self Sufficiency (FSS) applicants into public housing and units were held in order to give time for these applicants to apply and be screened; and 2) one-bedroom units were held in order to find an applicant that would better match our screening criteria and better fit into the communities (specifically Walnut Place, Northport and Manhattan). • Average make ready days: The average turnover days also increased (from 8.93 to 15 days). This is due to some rehabilitation work that was paid for out of ongoing maintenance expenses and therefore the days were part of make ready time (versus having the work paid out of capital funds and the days then being exempted from the make ready time). • Emergency work orders: There was also an increase in the number of emergency work orders (from 319 to 434). All were completed within 24 hours. The emergency work order numbers are up largely due to our Energy Performance Contract (EPC) work; primarily furnace replacement/no heat calls and some new toilet problems. • Non-emergency work orders: The number of non-emergency work orders also slightly increased (from 2,425 to 2,493), with an increase in days to complete (from 6,139 to 9,280). This increase results from two improvements: a much-enhanced preventive maintenance inspection program and a new site inspection program. Resolution #2: Revised Section 8 Administrative Plan We are bringing the Section 8 Administrative Plan for Board review and adoption. The Section Administrative Plan (Admin Plan) is a FIUD-.required plan that governs how the Section 8 Housing Choice Voucher Program is operated by a housing authority. We began the process of re-writing our plan in 2009. In August 2010, a draft of the Admin Plan was brought to the Board, and several questions were raised during the public comment. Changes and clarifications were made to the Admin Plan to address these concerns. Below is a summary of the major changes in this Admin Plan. We have: - Awarded a local preference to students who currently live outside the city limits of. Boulder but who attend an institution of higher learning, as defined by HUD, on a full time basis, located within the city limits of Boulder. (Part of Chapter 4, tenant selection); - Adopted the Multi-Family definition of medical deductions from the HUD Guidebook 4350.3 in order to be consistent across all federal programs. (Chapter 6); - Implemented the same threshold for interim recertification as the public housing program, which is a change in income of $250 or more per month, again to be consistent across all programs. (Chapter 11); - Created a better definition for how to terminate families from the program in the case of insufficient funding (Chapter 12); and 4 Changed the procedure for unreported income: the second time a family does not report income and causes an overpayment of assistance, no repayment agreement will be offered. Payment must be paid in full. (Chapter 16). Given the size of the document (452 pages), we asked for two Board members to assist in reviewing the plan and providing feedback. Commissioners Smart and Mitchell volunteered; and provided their continent in August. The Admin Plan can be viewed in its entirety on the BHP website: http://www.boulderhousing.org The revised Plan was posted on December 20, 2010 for public review, allowing for the 45- day period for public comment. A public hearing was held on January 12, 2011, and was attended by four current participants. No issues or concerns were raised. One participant was greatly reassured with regard to the medical expenses wording. The Plan had been provided to the Resident Representative Council for their feedback and review, as well as three current participants in the Section 8 program who offered to review and provide feedback. Staff has checked in with all of them, and their comments will be shared at the Board meeting. Appointments will be scheduled with these individuals and the RRC during the week of January 31. Any feedback will be summarized and provided to the Board at the meeting. Based on the feedback received to date, the Administrative Plan is in its final phase. However, the Plan is a living document and will be reviewed annually and changed as needed. Staff recommends approval of the Resolution #2 for the Section 8 Admin Plan updates, and proposes that the new rules be effective at the time of Board approval. Resolution 43: Changes to Preferences for the Public Housing and Section 8 Housing Choice Voucher Program We are bringing changes to preferences for the Public Housing and Section 8 Housing Choice Voucher Program to the Board for review and adoption. At the December meeting, proposed changes were brought to the Board prior to being released for the 45-day public review period. The proposed changes were: 1. Adding an "emergency/disaster" preference 2. Adding a "graduates of transitional housing" preference 3. Removing the "homeless" preference They are described in detail below for your review. There have been no changes since you saw the proposals at the December Board meeting. A public hearing was held on January 12, 2011 and was attended by seven people. They were very supportive and understanding of the proposed changes, no concerns were voiced. No other public comment was received. Once the preferences are adopted, staff will work 5 with the Boulder Shelter for the Homeless and the Emergency Family Assistance Association to agree upon a definition for graduation from a transitional program. Staff is seeking Board adoption of these changes, effective immediately. The wording for the preferences will be adopted as follows: Disaster Emergency Preference BHP will give a priority preference for families affected by a local natural disaster. Local disasters include fire, flood, hurricane, earthquake, or tornado causing the applicant's current housing to be considered uninhabitable as verified by local, state, or federal authorities within the last six months. Local is defined as within the confines of Boulder County. Priority will be given in the following order: First priority: current BHP residents affected by the disaster Second priority: to others displaced by disaster (who also meet other eligibility requirements). Priority means those affected by the disaster be allowed to apply for housing assistance even if the waiting lists are closed and receive this emergency preference. These families will have preference over the applicants on the current Section 8 and Public Housing waiting lists and will remain at the top of the list for assistance for a period of six months from the date of the disaster. If at the end of the six-month period, no assistance has become available, their application will be removed from the wait list. Assistance will be limited to availability of vouchers or units in each of the programs and will reflect the nature and the extent of the disaster. The Board will determine, at its next regular meeting following the disaster, or sooner if needed, the extent of housing assistance to be allocated to the victims. Based on the severity of the natural disaster and the number of families affected, the Board will have discretion to approve the number of families who would qualify for this preference. Graduates of transitional housing preference: Upon graduation from a transitional program, the graduate would be allowed to apply for housing through our public housing or section 8 project-based programs, even if the wait list(s) were closed. They would be first in line for the next available unit of the appropriate bedroom size. In order to allow applicants who have been waiting on the list and not provide housing only to graduates of transitional housing, this preference would be applied to every third unit of each bedroom size. For example, a one-bedroom -unit comes available in our public housing program and we have a graduate who has been determined eligible. They would be offered that available unit. The next two one-bedroom units that become available would be offered to applicants fiom our waiting list. G 3i Removal of homeless preference: The current preferences would remove any reference to homeless for public housing and section 8 project-based properties, as shown below: Ranking 1 applies to all elderly, persons with disabilities, and family applicants who live and/or work within the city limits of Boulder er- are hem Ranking 2 applies to all elderly, persons with disabilities, and family applicants who live and/or work within Boulder County ^r- are homeless Ranking 3 applies to all elderly, persons with disabilities, and family applicants who live and/or work outside of Boulder County °r °Fe hemeless Ranking 4 applies to all single applicants who are not elderly or disabled who live and/or work within the city limits of Boulder Ranking 5 applies to all single applicants who are not elderly or disabled who live and/or work within Boulder County Ranking 6 applies to all single applicants who are not elderly or disabled who live and/or work outside Boulder County UPDATES: Occupancy Status and Net Rental Income The combined net rental income for all of BHP properties through December was $5,950,946 compared to a budgeted net rental income of $5,964,366 which is a negative variance to budget of $13,420. The combined net rental income for all of the Tax Credit Properties through December was $2,025,951 compared to a budgeted net rental income of $1,980,488 which is a positive variance to budget of $45,463. The variances in public housing income are a result of having budgeted operating subsidy based on 2009 levels. In 2010 our subsidy included asset repositioning fees for Broadway East that have since expired. The variance in project based rental income is the result of a budget oversight in which the vacancy calculation was applied to tenant rent but not subsidy income. It also results from a protracted legal interaction with one resident who did not pay rent for many months. The BHP year-to-date occupancy through December was 97.61 compared to a budgeted occupancy rate of 97%. The combined physical occupancy rate for the Tax Credit portfolio year-to-date through December was 98.99%, compared to a budgeted occupancy of 97%. The chart below shows physical occupancy by property type. These property designations mirror the way the budget is organized. Public Housing has been divided into two groups of less than 250 units each, to comply with HUD Project Based Accounting requirements. Public Housing I is comprised of all the family sites and Public Housing II is comprised of the two senior sites. 7 5V Public Housing I properties - Arapahoe, Diagonal, Iris/Hawthorne, Kalmia, Madison and Manhattan. -188 units Public Housing II properties - Northport and Walnut Place - 145 Units Project Based Section 8 Properties - Canyon Point, Glen Willow & North Haven - 124 Work Force - 101 Pearl, Arapahoe East, Bridgewalk, Dakota Ridge, Eden East, Hayden Place, Midtown, Orchard House, Sanitas Place, Twin Pines, Whittier and Woodlands- 272 Tax Credit properties - Broadway East, Broadway West, Foothills Community, Holiday Neighborhood and Vistoso 208 units Total units combined - 936 Net Rental Net Rental Net Rental Physical Occ Physical Occ Variance to Income Income - Income - YTD Budge Budget YTD BndLct Variance Public 97.60% 97% 0.60% Housing -1 $1,138,789 $1,168,249 ($29,460) Public 97.93% 97% 0.93% Housing - It $702,764 $708,975 ($6,211) PB Sec. 8 97.76% 97% 0.76% properties $1,203,536 $1,212,822 $9,286) Work 97.14% 97% 0.14% Force $2,904,816 $2,873,320 $31,496 BHP 97.61% 97% 0.61% portfolin combined $5,950,946 $5,964,366 $13,420) Broadway 98.70% 97% 0.70% Fast $518,077 $505,459 $12,618 Foothills $898,215 $880,089 $18,126 99.28% 97% 2.28% Holiday $468.737 $456,225 $12.512 99.71% 97% 2.71% Vistoso $140,921 $138,715 $2,206 98.27% 97% 1.27% TC $2,025,951 $1,980,488 $45,463 98.99% 97% 1.99% portfolio combined Green Matrix and Solar Tracking Boulder Housing Partners completed some impressive steps towards greening its portfolio in 2010. We are nearing completion on our Energy Performance Contract with Johnson Controls which should have a drastic effect on the water and energy usage at our family housing sites. Already we have started to see the benefits with a reduction in energy bills and an. average monthly water savings of 500,000 gallons spread across our portfolio. BHP is also nearing completion on our Green Retrofit Program at Canyon Pointe. The work will 8 3y be completed in February 2011 and includes new windows, lighting, carpeting, siding, ventilation systems, and with a brand new solar system on the roof. Throughout 2010, BHP also made great progress on putting solar photovoltaic panels on the roofs of our sites. Boulder Housing Partners will have almost 500 kW of photovoltaic panels installed by early 2011. This solar production accounts for 16 % of all installed solar for the city of Boulder, and will go a long way to reduce the energy needs for BHP and our residents. In 2011, BHP will use city funding to renovate and make more energy efficient the "troubled three" assets of Sanitas Place, Hayden Place and Arapahoe East. We will also begin phase III renovations at Bridgewalk in Spring 2011 with an upgrade to the landscape and paving at the site. More extensive interior and exterior renovations to transform Bridgewalk into a "class green" property will begin later this year. Finally, Boulder Housing Partners is tracking possible local, state, and federal grant and funding opportunities to continue our energy efficiency push throughout our portfolio. See attached matrix for more detail CIP Projects The Capital Improvement Program has been very active over the past few months. Through a combination of ARRA funding, City of Boulder funds, HUD Capital Funds, the Green Retrofit Loan, and the Bridgewallc work, 2010 was a record breaking year in terms of reinvestment in our existing housing stock. We are poised for a strong 2011 as well, with a focus on the T-3 and public housing. Currently we have: • Completed exterior renovations at Arapahoe East. • Completed unit interiors and exterior paint at Arapahoe Court. • Completed the Hayden Place stair replacement. • Walnut Place windows replaced. • The Energy Performance Contract is nearly complete, with punch list and contingency spending now in process. • Canyon Pointe Green Retrofit will be completed in February. We have six units remaining to be renovated as well as re-carpeting two floors and the common areas. • Phase II of Bridgewalk work (paving and site work) should be under contract prior to the Board Meeting. • Phase III of Bridgewallc (siding, windows, roofs, and unit interiors) is in design. • Walnut Place solar is being installed the week of January 31 st. • Northport solar nearly under contract and will begin once Walnut Place solar is complete. • Bid package for Manhattan siding and windows is ready to be released. • Planning for 2011 City of Boulder CIP funds underway. 9 BHP Statement of Activities for the Year to Date Ending - December 31, 2010 - Preliminary Ref YTD Actual YTD Budget Variance $ % Var Revenue Operations Revenue Tenant Dwelling Rental 4,737,049 4,619,949 117,100 2.5% Non Dwelling Rental Income 9,865 7,600 2,265 29.8% Rental Write-offs (22,366) (16,823) (5,543) 32.9% HUD-Operating Subsidy 506,621 549,568 (42,947) -7.8% HAP Project Based Assistance 719,777 804,072 (84,295) -10.5% Total Operations Revenue A 5,950,946 5,964,366 (13,420) -0.2% Fee Revenue Asset Fee Revenue 87,510 87,600 (90) -0.1% Property Mgmt & Bkkpg Fee 597,629 558,393 39,236 7.0% Development Fees B 659,336 443,780 215,556 48.6% Mgmt Fees - Tax Credits & S8 315,194 318,662 (3,468) -1.1% Total Res Svc Fee Income 186,896 194,858 (7,962) -4.1% Total Fee Revenue 1,846,565 1,603,293 243,272 15.2% Grants and Subsidies HCV-HAP Revenue C1 6,341,390 5,769,763 571,627 9.9% Non Federal Grants and Donations D 2,880,749 389,538 2,491,211 639.5% Federal Capital Grants E 1,874,369 2,422,738 (548,369) -22.6% Federal Service Grants 494,113 446,709 47,404 10.6% Total Grants and Subsidies 11,590,621 9,028,748 2,561,873 28.4% Other Revenue Tenant Late Fees 21,775 13,980 7,795 55.8% Tenant Work Order Charges 66,793 15,768 51,025 323.6% Tenant Reim - Utilities 19,504 36,465 (16,961) -46.5% Interest Income 559,359 533,674 25,685 4.8% Total Laundry 66,559 69,516 (2,957) -4.3% Community Center Revenue 5,748 5,580 168 3.0% Maint Charges to Prop 952,423 1,085,567 (133,144) -12.3% Total Miscellaneous Revenue F 407,977 6,216 401,761 6463.3% Total Other Revenue 2,100,138 1,766,766 333,372 18.9% Total Revenue 21,488,270 18,363,173 3,125,097 17.0% Expenses Salaries and Benefits Total Salaries 3,602,223 3,600,338 (1,885) -0,1% Total Salaries and Benefits 3,602,223 3,600,338 (9,885) -0.1% Property Costs HUD Capital Improvement Expense G 39,364 526,590 487,226 92.5% Management Fees 182,506 171,060 (11,446) -6.7% Maintenance Materials 234,979 225,112 (9,867) -4.4% Contract Labor & Repairs 748,212 644,804 (103,408) -16.0% BHP Contract Labor 782,743 929,037 146,294 15.7% Extraordinary Maintenance 201,187 113,746 (87,441) -76.9% Garbage and Trash Removal 119,804 111,360 (8,444) -7.6% Water and Sewer 270,561 284,660 14,099 5.0% Electricity 197,145 176,852 (20,293) -11.5% 1 of 2 2/1/20119:39 AM 9G BHP Statement of Activities for the Year to Date Ending - December 31, 2010 - Preliminary Ref YTD Actual YTD Budget Variance $ % Var Gas 194,738 191,991 (2,747) -1.4% PILOT 102,025 94,430 (7,595) -8.0% HOA Fees 7,707 5,196 (2,511) -48.3% Selling Expenses 5,065 0 (5,065) -100.0% Total Property Costs 3,086,036 3,474,838 388,802 11.2% Operating Expenses Amortization Expense 41,377 20,112 (21,265) -105.7% Asset Management Fee 87,510 87,560 50 0.1% Audit Fees 39,136 42,492 3,356 7.9% Background Checks 12,571 6,414 (6,157) -96.0% Bank Fees 6,100 4,416 (1,684) -38.1% Board Expense 4,376 5,884 1,508 25.6% Community Center Exp 1,210 1,320 110 8.3% Consultants 95,283 11,240 (84,043) -747.7% Depreciation 1,234,306 1,208,620 (25,686) -2.1% Dues and Fees 55,923 37,978 (17,945) -47.3% Expendable Equipment 91,612 105,772 14,160 13.4% HCV-HAP Expense C2 5,519,830 5,278,332 (241,498) -4.6% Insurance Expense 189,609 192,890 3,281 1.7% Interest Expense 8,294 12,600 4,306 34,2% Legal Expense 41,835 21,960 (19,875) -90.5% Mileage 9,942 14,040 4,098 29.2% Miscellaneous - Expense 33,301 25,332 (7,969) -31.5% Mortgage Interest Expense 1,014,258 1,020,612 6,354 0.6% Non-Salaried Personnel 57,484 45,804 (11,680) -25.5% Advertising/Marketing 28,391 24,840 (3,551) -14.3% Office Supplies 35,805 32,420 (3,385) -10.4% Phone Expense 56,346 52,358 (3,988) -7.6% Postage Expense 16,378 14,150 (2,228) -15.7% Pre-Development Costs 0 2,000 2,000 100.0% Printing Expense 34,148 36,100 1,952 5.4% Property Mgmt & Bkkpg Fee Exp 597,629 558,146 (39,483) -7.1% Publications 730 730 0 0.0% Res Svc/Strategic Planning Fee Exp 183,576 186,528 2,952 1.6% Staff Training 49,473 74,276 24,803 33,4% Service Grant Expense 374,701 364,529 (10,172) -2.8% Vehicle Expense 49,560 48,250 (1,310) -2.7% RRC Allocation 8,648 8,648 0 0.0% Total Operating Costs 9,979,342 9,546,353 (432,989) -4.5% Total Expenses 16,667,601 16,621,529 (46,072) -0.3% Net Income before Sale of Assets 4,820,669 1,741,644 3,079,025 176.8% Gain (Loss) on Disposition of Property H (632,892) 0 (632,892) -100.0% Extraordinary Income (Expense) 1 (100,000) 326,901 (426,901) -130.6% TOTAL NET INCOME (LOSS) 4,087,777 2,068,545 2,019,232 97.6% 2 of 2 211/20119:39 AM 37 BHP Balance Sheet December 31, 2010 and December 31, 2009 - Preliminary Balance Balance Net Ref December-10 December-09 Change YTD ASSETS Current Assets Unrestricted Cash and Cash Equivalents 2,677,124 2,505,834 171,290 Reserved Cash - Replacements 731,270 730,681 589 Reserved Cash - Tenant Security Deposits 388,795 376,805 11,990 Accounts Receivable J 1,253,100 748,167 504,933 Accounts Receivable-Tax Credits 108,186 734,397 (626,211) Prepaid Expenses 71,121 63,246 7,875 Supplies-inventory 24,331 26,576 (2,245) Total Current Assets 5,253,927 5,185,705 68,222 Restricted Cash Restricted Cash -Other K1 1,791,723 231,113 1,560,610 Restricted Cash - Section 8 112,429 112,429 0 Total Restricted Cash 1,904,152 343,542 1,560,610 Capital Assets Construction in Progress K2 4,025,988 1,944,274 2,081,714 Furniture Fixtures and Equipment 465,941 457,936 8,005 Real Estate Assets-Land and Buildings 51,054,451 49,583,756 1,470,695 Less: Accum Depreciation Real Estate Assets -28,334,063 (27,276,844) (1,057,219) Total Capital Assets 27,212,317 24,709,121 2,503,196 Other Assets Notes Receivable 9,757,205 9,714,740 42,465 Interest Receivable Notes 3,231,205 2,829,943 401,262 Partnership Investments 432,752 432,752 0 Net Amortized Costs 853,683 890,103 (36,420) Total Other Assets 14,274,845 13,867,538 407,307 TOTAL ASSETS 48,645,241 44,105,906 4,539,334 LIABILITIES & EQUITY LIABILITIES Current Liabilities Accounts Payable 566,955 184,575 (382,380) Accrued Payroll 66,923 56,928 (9,995) Accrued Payroll Taxes Payable 26,626 31,545 4,919 Accrued Compensated Absences 252,654 281,068 28,414 AP - Tax Credits 1,568 86,757 85,189 Other Accrued Expenses 313,913 328,701 14,788 Deferred Revenue 283,665 666,793 383,128 Current Portion of Long Term Debt 465,203 1,079,323 614,120 Prepaid Rent 12,683 47,419 34,736 Security Deposits 389,365 377,366 (11,999) Total Current Liabilities 2,379,555 3,140,475 760,920 Long-Term Liabilities Notes Payable 426,072 431,905 5,833 Mortgages Payable 18,930,305 19,276,380 346,075 Bonds Payable 1,564,386 0 (1,564,386) Total Long-Term Liabilities 20,920,763 19,708,285 (1,212,478) TOTAL LIABILITIES 23,300,318 22,848,759 (451,559) EQUITY Total Equity 25,344,923 21,257,147 (4,087,776) TOTAL LIABILITIES AND EQUITY 48,645,241 44,105,906 (4,539,335) 1 of 1 211120119:39 AM 3re . BHP Statement of Cash Flows for the Month and Year to Date Ending December 31, 2010 - Preliminary December 2010 Ref Month to Date Year to Date Reconciliation of Net Income to Net Cash Provided (Used) by Operating Activities Net Income (Deficit) $ 613,413 $ 4,087,777 Adjustments to Reconcile Net Income to Net Cash Provided (Used) by Operating Activities Increase (Decrease) Accum Deprec/Amort $ 111,703 $ 1,093,639 (Increase) Decrease in Accounts Receivable $ (1,253,508) $ 121,277 (increase) Decrease in Prepaid Expenses $ 13,452 $ (7,875) Increase (Decrease) in Prepaid Rent and Security Deposits $ (15,166) $ (22,737) (Increase) Decrease in Supplies/Inventory $ 6,098 $ 2,245 (increase) Decrease in Reserved Cash $ 1,004,331 $ (12,579) (Increase) Decrease in Restricted Cash L1 $ 592,495 $ (1,560,610) Increase (Decrease) in Payables and Accrued Expenses $ 81,495 $ 259,065 Increase (Decrease) in Deferred Revenue $ (44,257) $ (383,128) Total Adjustments $ 496,643 $ (510,703) Net Cash Provided (Used) by Operating Activities $ 1,110,056 $ 3,577,075 Cash Flows from Investing Activities (Increase) Decrease in Construction in Progress 1-2 $ (881,246) $ (2,081,714) (Increase) Decrease in Furniture Fixtures and Equipment $ 0 $ (8,005) (Increase) Decrease in Real Estate Assets $ (517,751) $ (1,470,695) (increase) Decrease in Notes and Interest Receivable $ (40,205) $ (443,727) Net Cash Provided (Used) by Investing Activities $ (1,439,202) $ (4,004,142) Cash Flows from Financing Activities Increase (Decrease) in Current Portion of Long Term Debt $ (203,639) $ (614,120) Increase (Decrease) in Notes Payable $ 0 $ (5,833) Increase (Decrease) in Mortgages and Bonds Payable $ 214,801 $ 1,218,311 Net Cash Provided (Used) by Financing Activities $ 11,162 $ 598,358 Net Increase (Decrease) in Cash and Cash Equivalents Net Increase (Decrease) in Cash and Cash Equivalents M $ (317,988) $ 171,287 Cash and Cash Equivalents - Beginning $ 2,995,109 $ 2,505,834 Unrestricted Cash and Cash Equivalents - Ending $ 2,677,122 $ 2,677,122 1 of 1 2/1/20119:39 AM 301 Boulder Boulder Housing Partners H11,w ng~„ Cash Report Partners ,1 December & November, 2010 Aliris4~l .Irr;ln IrySln'r l46G CASH NEEDED FOR OPERATIONS AND RESERVES Target Dec-10 Nov-10 Change Cash Needed for Day-to-Day Operations $ 750,000.00 $ 750,000.00 $ - Development Working Capital $ 250,000.00 $ 250,000,00 $ - Restricted Cash BMM Loan $ 345,270.48 $ 345,132,16 $ 138.32 Reserve for Capital Replacements - Woodlands $ 600,000.00 $ 600,000.00 $ - Reserve for Capital Replacements - General $ 600,000.00 $ 600,000.00 $ - 4800 Broadway Reserve $ 70,000.00 $ 70,000.00 $ - Landscaping Escrow - Set Aside $ 72,913.55 $ 72,920.45 $ (6,90) Total cash needed $ 2,688,184.03 $ 2,688,052.61 $ 131.42 Actual Total Unrestricted Cash Available for Operations $ 637,911.01 $ 777,857.21 $ (139,946.20) Restricted Cash for ROP/BMM $ 345,270.48 $ 345,132.16 $ 138.32 Unrestricted Cash Targeted for Woodlands Rehab $ 458,372.49 $ 452,182.90 $ 6,189.59 Unrestricted Cash Avail. for Replacements - Proj. Based only $ 77,568.21 $ 76,714.92 $ 853.29 Unrestricted Cash Available for Replacements $ 267,650.08 $ 315,579.28 $ (47,929.20) Development Funds Set Aside (Landscaping Escrow) _ 72,913.55 $ 72,920.45 $ (6.90) Total Cash available for Operations, Replacement and Set Asides $ 1,8594685.82 $ 2,040,386.92 $ (180,701.10) Overage (Shortage) $ (828,498.21) $ (647,665.69) $ (180,832.52) IMPACT: We continue to run short of the Board designated targets for operations and reserves. The impact is that rehabilitation projects may be delayed and that BHP does not have the ability to fund development projects or to take advantage of acquisition opportunities with casts reserves, CASH NEEDED FOR PUBLIC HOUSING AND PR03ECT BASED PROPERTIES Target Dec-10 Nov-10 Change Restricted Cash - Public Housing & Project Based -Target $ 650,000.00 $ 650,000.00 $ - Actual Restricted FSS Escrow $ 3,145.71 $ 2,828.71 $ 317.00 Restricted Cash - Public Housing & Project Based - Actual $ 1,074,145.03 $ 1,323,751.70 $ (249,606.67) Total PH and Project Based Cash $ 1,077,290.74 $ 1,326,580.41 $ (249,289.67) Overage (Shortage) $ 427,290.74 $ 676,580.41 $ (249,606.67) IMPACT: The unrestricted Public Housing and Project Based money cannot be borrowed for COCC Operations and has therefore been split from the Unrestricted Operating Cash. This money is available to fund operations for PH and PB portfolios. Current plans are in place to spend approximately $145,000 over the next 12 months on capital improvements for Public Housing CASH NEEDED FOR SECTION 8 Target Dec-10 Nov-10 Change Cash Needed for 1 month of HAP and Admin -Target $ 525,000.00 $ 525,000.00 $ - Actual Restricted Cash Available for Section 8 Operations - Actual $ 964,967.56 $ 893,473.83 $ 71,493.73 Restricted Funds Available for Use on HAP and FSS escrow $ 158,086.79 $ 155,317.79 $ 2,769.00 Total Section 8 Cash $ 1,123,054.35 $ 1,048,791.62 $ 74,262.73 Overage (Shortage) $ 598,054.35 $ 523,791.62 $ 74,262.73 IMPACT: Currently reserve is funded - If HUD were to slow down their payments, BHP would have funds to cover the shortfall for one month -This has been building due to full funding received for the 181 new vouchers which are still in the lease-up process, $300,000 Line of Credit Terms: If drawn on, terms are interest only variable rate of approx 5%, payment in full due November 2011 S:1FinanceiFinancials1201012010-121Finance Committee ReporttDecember Prelim - Fin Stmts xis 2/1/2011 ya BHP GRFFN IMPROVEMENTS MATRIX Public Housing I Green Improvements Completed Green Improvements Planned Financing Timeline Total Solar kW Arapahoe Court Complete lighting retrofit, new t-stats, Fmrhed for now. Energy Performance Completed Insulation and water conservation Contract (EPC) measures. Diagonal Court Solar energy system January 2008 Finished for now. EPC Completed 52.5 Complete lighting retrofit, DHW boiler, duct Insulation, envelope work, irrigatio controls and water conservation Complete lighting retrofit, envelope Finished for now. EPC Completed 14,96 work, Insulation, Irrigation controls and water conservation. Iris/Hawthorne Five Homes at Iris/Hawthorne are Finished for now. Competitive Capital Fund Completed currently receiving 14.96 kW solar Grant and Xcel rebates, energy systems. Complete lighting retrofit, envelope Finished for now. EPC Completed work, insulation, irrigation controls and water conservation. Kalmia Kalmia is receiving 76.84 kW e4 solar Flushed for now. Competitive Capital Fund Completed 76.84 energy on five buildings. C. ant and X<el rebates. Complete lighting retrofit, envelope Finished for pow. EPC Completed 41 99 work, irrigation controls and water conservation measures. Madison Madison is receiving 42 kW of solar Finished far now. Competitive Capital Fund Completed energy placed on three buildings. Grant and Xcel rebates. Complete lighting retrofit, high efficient Finished for now. EPC Completed 40.29 furnaces, envelope work, irrigation controls and water conservation measures, Manhattan Manhattan is also receiving 40 kW of Finisned for row. Competitive Cap'ta Fund Completed solar energy placed on 4 buildings. Gram: and Xcel rebates. of, Public Housing II Green Improvements Completed Green Improvements Planned Financing Timellne Total Solar W Complete lighting retrofit, None EPIC Completed 31.36 programmable t-stets, high efficiency boiler, pipe insulation, envelope work, Irrigation controls, water conservation measures and a new roof on the south side flat roof. Northport Northportwill also receive 31.36 Competitive Capital Fund Feb-March 2011 (Clossto kW of solar energy placed on both Grant and Xcel rebates, contract with Lighthouse the north and south buildings. Solar) Complete lighting retrofit, high efflcienc None EPC Completed cooling for common areas, pipe Insulation, envelope work, irrigation controls and water conservation measures. Walnut Place New roof completed (to replace the Wa:nct Place will be receiving a Competitive Capital Find Insta~.''.atlor January 2011 75.6 damage to the old one) 75.6 kW solar system. Grant and Xcel rebates. Installation of energy-efficlent windows HUD Capital Improvemenl Completed Funds Project Based Green Improvements Completed Green Improvements Planned Financing Timeline Total Solar kW Canyon Pointe Is In the process of None Loan through the Green Completion by Fetruarv 59.8 receiving an extensive green rehab Retrofit Program. 2031 through financing we received through Canyon Pointe the Cap Fund. Improvements will include an array of solar panels, new windows and patio doors, and rehab work in kitchens, bathrooms and common areas. Glen W'IIoW None None North Haven Nene None ~y Workforce Green Improvements Completed Green Improvements Planned Financing Timeline Total Solar kW Rentals 101 Pearl St None TBD TED Al East Installation of new cemenVous siding Weatherization Project: Water Capital Funds 2011 and energy efficient windows heater & fireplace enclosure Possible Energy Outreach Colorado and GEO Weatherizatlon Funding Bridgewalk None Complete renovation of units with Renovation Phase III Paving and grading low-VOC flooring, cabinets, improvements to occur in cementious siding, and energy 2011, with interior/exterior efficient windows renovations to fol~ow in late 2011 through 2012 Looking for opportunities for solar photovoltaic system Dakota Ride None TED TBD Hayden Place None Weatherizatlon Project: renovated Capital Funds 2031, kitchens & baths; Improve building Possible Energy Outreach envelope and Insulation Colorado and GEO Weatherizatlon Funding Mld:own None Weather4ation Project: improved Capital Funds TBD household appliances Possible Energy Outreach Colorado and GEO Weatherization Funding Orchard House None TBD TBD Sanitas Place None Weatherizatlon Project: renovate Capital Funds 2011 kitchens, baths, appliances, A/C Possible Energy Outreach Colorado and GED Weatherization Funding Twin Pines None Weatherizaton Project replace Capital Funds TED appliances, A/C Possible Energy Outreach Colorado and GED Weatherizatlon Funding Whittier None Weatherization Project: Improved Capital Funds TBD envelope, replaced appliances Possible Energy Outreach Colorado and GEO Weatherization Funding Woodlands Weatherization caulking completed to Exploring opportunities for Solar 2009 Refl funds Completed se I the cnveiu e Tx Cr Companies Green Improvements Completed Green Improvements Planned Financing Timeline Total Solar kW Foothills None To be anal ized at LIHTC exit Vistoso None To be analvized at LIHTC exit 406day None i o be analv'ized at LIHTC exit Broadway East Installation of a 92kW solar system Rcel rebates and grant Completed 92 from the City of Boulder Vie are exploring financing Broadway West None opportunities for a ll solar TBD TBD system at the new BWW building. Total 5a1a1 494.34 Lucia Craycraft 700 Walnut #214 Boulder, CO 80302 303-447-1092 November 11, 2010 Betsy Martens Boulder Housing Partners 4800 Broadway Boulder,CO 80304 Dear Ms. Martens: I am writing to thank the Housing Authority for these absolutely wonderful renovations here at 700 Walnut. Everything is just great' and quite an improvement. I am truly grateful - both for being provided with a place to live and for these very welcome upgrades. I also want to bring to your attention how much I appreciate your great staff. Nina Bennett is always there to help with a cheerful smile and a gracious attitude. She is a gem! And also, with these renovations came a lot of need for moving furniture, taking down pictures, etc. and George was just invaluable. He helped me so much! He moved furniture, took down and re-hung all of my paintings and was also there for moral support. George is always there to help (he also fed my cat during the evacuation when I was not allowed to enter the building when I came home from work at noon) and always with a joke and a smile. I absolutely cannot say enough to praise him. Give him a big raise! I really do want to thank the Housing Authority for everything - these wonderful renovations and your great staff. With Many Thanks, f 47/, Lucia Craycraft / 04Y