HomeMy WebLinkAbout030399 RES - 01/20/2015 Resolution of the City Council of the City of Corpus Christi, Texas
in support of the proposed revitalization of the La Armada II Public
Housing Complex.
Whereas, the Housing Authority of Corpus Christi is a Public Governmental Entity
charged with providing Safe, Decent, and Affordable Housing to residents of Corpus
Christi on behalf of the city of Corpus Christi; and
Whereas, the La Armada II is a 400-unit Public Housing Complex of the Housing
Authority of Corpus Christi; and
Whereas, La Armada II has faithfully served generations of families in Corpus Christi
since its construction in 1939; and
Whereas, 93 La Armada II units are currently off-line and not for use due to
deterioration; and
Whereas, Corpus Christi has a widely recognized need for affordable housing including
Public Housing units and returning the off-line units will help address the city's growing
affordable housing and homelessness needs; and
Whereas, the Housing Authority of Corpus Christi has proposed a development of the
La Armada II Complex at an estimated cost of approximately$5.3 million; and
Whereas, the Housing Authority of Corpus Christi plans to submit an Operating Fund
Financing Application through the US Department of Housing and Urban Development
in the amount of$3.5 million; and
Whereas, the Housing Authority of Corpus Christi plans to utilize U.S. Department of
Housing and Urban Development Capital Fund Program funding in the amount of $1.3
million; and
Whereas, a funding gap remains, the Housing Authority plans to submit a grant
application for local housing funds; and
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF
CORPUS CHRISTI, TEXAS:
Section 1. The City Council for the City of Corpus Christi hereby supports the
proposed La Armada II Complex Revitalization Plan, see Attachment "A".
Section 2. The City Council for the City of Corpus Christi hereby supports the
proposed Operating Fund Financing Program application to the U.S. Department
of Housing and Urban Development, see Attachment "B".
03 +` 399
INDEXED
Section 3. The City Council for the City of Corpus Christi hereby supports the
proposed use of U.S. Department of Housing and Urban Development Capital Fund
Program resources for the revitalization of the La Armada II Complex.
Section 4. The City Council for the City of Corpus Christi hereby supports the
Housing Authority efforts to identify and secure local grant funds to fill the identified
funding gap.
PASSED AND APPROVED this /du day of 4- , 2015 at a
regular meeting of the City Council of the City of Corpu Christi, Texa
ATTEST: T E ITY OF CORPUS CHRISTI
41/-t.A2k
77e- ,:Q�C.C.G•
Rebecca Huerta Nelda Martin
City Secretary Mayor
Corpus Christi, Texas
%.1"--day of ?ri\AAAU171, 2015
The above resolution was passed by the following vote:
Nelda Martinez
IRudy Garza, Jr. 1 '
Chad Magill
Colleen McIntyre ;y
Lillian Riojas 'L i1
Brian Rosas
Lucy Rubio r ,
Mark Scott
Carolyn Vaughn
030399
BOARD OF COMMISSIONERSUS Ci CORPUS CHRISTI HOUSING AUTHORITY
�p�4 f9�- Executive Offices
PRISCILLA WALLER,Chair '� 3701 Ayers Street
MARSHA HARDEMAN,Vice Chair • Corpus Christi,Texas 78415
FRANK W.MONTESANO,Commissioner air
r Website: www.hacc.org
VERONICA WENZEL,Commissioner
HARVEY S.LOPEZ,Resident Commissioner C+S., 04' GARY ALLSUP
1h2g AUt� President and Chief Executive Officer
361-889-3350
November 26,2014—updated January 12,2015
Corpus Christi Business and Job Development Corp
"Type A Board"
City of Corpus Christi
1201 Leopard St.
Corpus Christi,TX 78401
Please accept this letter as an application for Type A grant funding to assist and leverage the
Housing Authority of Corpus Christi's effort to revitalize the La Armada II Public Housing
Complex.
Housing Authority of Corpus Christi
The Housing Authority of Corpus Christi (CCHA) is a Local Governmental Entity charged with
providing Safe, Decent, and Affordable Housing to residents of Corpus Christi on behalf of the
City of Corpus Christi.
Homelessness and Affordable Housing
Corpus Christi has a widely recognized need for all types of affordable housing including Public
Housing units. As the City enjoys the current economic boom affordable housing has become both
less affordable and more difficult to find. Securing new units and maintaining current inventory
will help address the city's growing affordable housing and homelessness needs.
Public Housing
Public Housing serves residents who earn less than 80% of the area median income, the same as
the City's Homeownership program,though most residents earn less than 30% of the area median.
A typical family in La Armada II earns just over $9,000 per year, or $750 per month, and pays
30% of their income as rent. Public Housing serves both as a community safety net and as a
stepping stone within the workforce housing arena.
La Armada II
The La Armada II Complex was built during 1939-1940 as military housing. Since completing its
military service, La Armada II has well served citizens of Corpus Christi as a Public Housing
complex. However, after 70 years of use, the property is in desperate need of revitalization.
Currently 93 of its 400 units have been removed from service due to physical deterioration.
La Armada II Revitalization Plan
CCHA has long pursued a plan to demolish and rebuild the La Armada II complex through
CCHA 7)ipe A Funding Request
Page 2
multiple applications to the U.S. Department of Housing and Urban Development Hope VI
Program. Though federal funding to demolish and rebuild La Armada II has proven elusive,
CCHA's Board of Commissioners has not given up the dream. Instead, the Board of
Commissioners has approved an innovative revitalization plan to (I) return the 93 vacant units to
service,(2) update internal plumbing and baths for the remaining 307 units,(3)update the building
facades,and(4)re-roof the entire complex.
Our plan is to accomplish this ambitious goal utilizing HUD's Operating Fund Financing and
Capital Fund Programs. Construction is expected to be completed over a two year period within
an estimated $5.3 million budget. Funds currently available to the Housing Authority for this
project total$4.8 million,resulting in a$500,000 gap in funding.
Sources and Uses
COST
SUMMARY: Units Per Unit Extended
Full Interior 93 $10,000 $930,000
Plumbing 307 $1,500 $460,500
Baths 307 $3,200 $982,400
Exterior(per bldg) 71 $23,000 $1,633,000
Roofing(per bldg) 71 $18,000 $1,278,000
Total $5,283,900
FUNDING
SOURCES Amount
Operating Fund Financing $3,500,000
Program(CCHA Funds)
Capital Fund Program (CCHA $1,300,000
Funds)
Type A Funds $500,000
Total $5,300,000
CCHA Request
CCHA's Board of Commissioners hereby submits this grant request in the amount of$500,000 to
leverage other available funding to revitalize the La Armada II Public Housing Complex. This
request represents a 10%match from the City toward this important project.
The CCHA would be happy to enter into a written agreement with the City of Corpus Christi that,
should the Type A funds not be fully expended on this project, the CCHA would return the
remaining amount to the Type A fund.
Community Impact
In addition to adding 93 new housing units and improving the quality of life for additional 307
MIA Type A Funding Request
Page 3
families, this initiative will have a tremendous impact on the surrounding neighborhoods and Port
Avenue, a major artery of transportation and commerce within the city. Maximizing federal
resources provides a 10-fold leveraging of Type A Funds.
The CCHA Board of Commissioners appreciates your consideration and support in this endeavor.
Best Regards,
Gary Allsup
President&Chief Executive Officer
Operating Fund Financing Program
Summary
Under the Operating Fund Financing Program(OFFP),Public Housing Authorities(PHAs)are
permitted to borrow private capital to finance development and modernization of public
housing. Under this program,a PHA may use a portion of its Operating Fund reserve balances
to collateralize financings and pay debt service and customary financing costs where the
financing is used for public housing development or modernization(including public-housing
mixed-finance developments).
Operating reserve balances are those funds accumulated through the operation of public
housing,assistance from the Operating Fund program authorized by section 9(e)of the 1937
Act,and operating receipts as defined in section 2 of the Annual Contributions Contract(7/95)
(ACC). The FFY 2012 Appropriations Act,P.L.112-55,permits HUD to adjust the CY 2012
Operating Fund allocation by up to$750 million from excess reserve amounts by PHAs. For
more information on the implementation of this offset,see notice PIH 2011-55.
PHAs may use Operating Funds as outlined by Section 9(e),9(g)and 9(1)of the 1937 Act,notice
PIH 2012-2,and HUD regulations. PHAs may use Capital Funds as outlined by Section 9(d)of
the 1937 Act and HUD regulations. In addition to these statutorily permitted uses, pursuant to
P.L.112-55 and for FFY 2012 only,PHAs may use operating reserves above the HUD
recommended minimum for capital improvements,except PHAs may not use operating reserves
above the HUD recommended minimum for large modernization projects or development in the
absence of an OFFP approval. Because of the added flexibility provided by Pl.112-55,in FY
2012 there may not be a need for PHAs to undertake OFFPs unless they want to pursue large-
scale modernization or a development project. For more information about the use of operating
funds generally,and the use of operating reserves above the HUD recommended minimum for
capital improvements in FFY 2012,see notice PIH 2012-2.
Written approval is required before a PHA undertakes an OFFP transaction. HUD is
implementing the OFFP on a case-by-case basis and has approved a small number of
transactions to date. PHAs interested in participating in the OFFP should follow the general
guidelines and instructions outlined on this web page. PHAs should note that financing
proceeds from an OFFP transaction will be subject to regulations associated with Capital Funds,
including all applicable modernization or development requirements under the 1937 Act and
HUD regulations(including procurement and environmental review).
In reviewing OFFP proposals,HUD will determine the amount of reserves available for
financing by analyzing the PHA's financial statements over a two to three year period. The
amount available for financing is calculated by taking short term assets,subtracting short term
liabilities,and then subtracting an amount equal to four or six months of operating expenses,
depending upon PHA size(four months for PHAs with 250 or more units,six months for PHAs
with 249 or fewer units).
1
The results of the above noted calculations indicate the maximum amount of operating reserves
HUD would approve for financing. PHAs may undertake smaller financings based upon their
risk tolerance. PHAs should be aware that the decision to pursue an OFFP will not cause HUD
to calculate operating eligibility in a manner different than provided for by statute and
regulation. PHAs should consider these risks when determining whether or not to undertake an
OFFP transaction,and the size of their borrowing if they do pursue an OFFP transaction.
Typical Transaction
A typical transaction involves a PHA requesting HUD approval of a loan for the purpose of
modernization and/or development activities. The PHA collateralizes the loan with the
Operating Fund reserves and at the completion of construction,utilizes the Operating Fund
reserves to pay the principal and interest on the loan.
Suggested Guidelines and Required Documentation
PHAs interested in participating in the OFFP should follow the guidance provided below and
submit the following documents:
1. Approval-PHAs must request approval from the Deputy Assistant Secretary,Office of
Public Housing Investments. The Deputy Assistant Secretary for the Office of Public
Housing Investments,the General Deputy Assistant Secretary and the Assistant
Secretary for the Office of Public and Indian Housing are the only authorized HUD
officials who can grant approval.
• PHAs must submit a minimum of one hard copy and one electronic copy of the
complete OFFP Proposal to:
Attention:Shauna Sorrells,Director
Office of Public Housing Programs
Room 4232
451 7th Street SW
Washington,DC 20410
• An electronic copy of a complete OFFP Proposal should also be sent to the
Director of the Financial Management Division(FMD)and appropriate Director,
Office of Public Housing in the Field Office.
2. Operating Reserves Amounts-To participate in the OFFP,PHAs should
demonstrate that they have taken steps to maintain their operating reserves at a level
that can be reasonably anticipated to sustain necessary operations given a moderate level
of fluctuation in operations or appropriations. PHAs with 250 units or more should have
at least 4-months worth of operating reserves available above the amount proposed as
part of an OFFP transaction;PHAs with less than 25o units should have at least 6-
months worth of operating reserves available.When reviewing OFFP proposals,HUD
will also evaluate the impact of the allocation adjustment in the FFY 2012
Appropriations Act. To the extent that PHAs have reserve amounts in excess of 4 or 6
months as applicable,in addition to amounts associated with the proposed 2012
allocation adjustment,they may request approval to use excess operating reserves as
2
part of an OFFP transaction.
3. Proposal-PHAs interested in applying for participation in the OFFP should submit the
following documentation as part of their initial application package:
• Cover Letter-The cover letter must be signed by the PHA Executive Director
(or Chief Executive Officer,if applicable)and should request HUD's approval of
the OFFP Proposal. PHAs should also describe the proposed financing and the
intended use of proceeds,as well as the amount of the Operating Fund reserves
available. In the event that PHAs have experienced substantial fluctuations in
reserve levels,PHAs should also provide an explanation of the variations in
reserve levels. Finally,PHAs should include the amount of the Operating Fund
reserves the PHA intends to use for debt service payments(principal and
interest).
The cover letter should describe any security interest or other encumbrance being
provided as well as the recourse the lender will have in the event of a default,if
any. This description will provide the basis of HUD's approval of any security
interest.
The cover letter must indicate whether the PHA has undertaken any other
financing associated with its public housing program. If it has,it should include a
schedule detailing the terms of the financing(original principal amount,current
principal outstanding,interest rate,periodicity of debt service payment
requirements,amount of debt service payments,source of debt service payments,
security interest provided,description of what financing was used for).
• OFFP Financing Limit Spreadsheet-As part of their submission PHAs
should include the OFFP Financing Limit spreadsheet demonstrating the
availability of the requisite reserve amounts listed in paragraph 2,based on their
most recent unaudited financial statements. When making this calculation,the
PHA should refer to the calculation of operating reserves in Notice PIH 2011-55.
Be advised that the methodology to calculate operating reserves is based on data
calculated with full accrual accounting. Therefore,PHAs must use accrual
accounting when calculating their reserves.
The PHA should also complete two OFFP Financing Limit spreadsheets based
upon the most recent two years of approved Financial Assessment Submissions—
PHA(FASPHA)in order to assess any fluctuations in reserve levels. Unless the
current financial data reflects a decrease in financing capacity over the FASPHA
data,PHAs are not required to use the current financial data. If a PHA chooses to
do so,they assume the risk of any unrecognized expenses or accounting errors or
adjustments.
As part of its assessment,HUD will also complete two OFFP Financing Limit
spreadsheets based upon FASPHA data from the most recent two years.
3
i
• Financial Statements-PHAs should also include,within their initial
application package,the most recent,year-to-date financial documents available,
which should support the OFFP Financing Limit spreadsheet submitted by the
PHA.
• Financial Schedules-PHAs should include a debt service schedule in their
OFFP application package.
o The PHA should provide the terms of the financing,including:
• The name of the lender
• The term of the financing
• The principal amount
• The interest rate
• Annual Statement/Performance and Evaluation Report(HUD-
50075.1)-PHAs should submit an Annual Statement budgeting the use of the
proceeds from the OFFP financing.
• http://portal.hud.gov/hudportal/documents/huddoc?id=5oo7S.1.
pdf
• Disclosure of all Existing Financing-PHAs must disclose any existing
financing it has undertaken in their OFFP application package. The PHA should
include a schedule detailing the terms of any financing(original principal
amount,current principal outstanding,interest rate,periodicity of debt service
payment requirements,amount of debt service payments,source of debt service
payments,security interest provided,description of what financing was used for).
If a PHA has no existing financing,it should include a statement to that effect.
4. Transactional Documents- Once HUD has received and reviewed a PHA's initial
submission(as outlined above in paragraph 3),and determined that the proposal is
acceptable to HUD,the PHA will then submit the following additional documentation to
complete the application package:
• Board Resolution-PHAs must submit evidence of a PHA Board resolution that
authorizes the PHA to undertake the loan up to a specified amount;provide all security
interests required by the loan;and repay the loan with its Operating Fund reserves as
required by the financing documents.
• Authorization-The Board resolution must also provide authorization for the
Executive Director,Chief Executive Officer,or other executive staff to negotiate
and enter into all legal documents required as part of the transaction.
• Counsel's Opinion-The PHA must also submit PHA counsel's opinion,which opines
that the PHA has the authority to enter into the transaction,and that the transaction
complies with the requirements of the 1937 Act,as amended,federal regulations,and the
ACC,as amended.
• Sample Opinion of Counsel(MS-Word,72 KB)
4
1
• Depository Agreement-The PHA must submit a depository agreement that covers
all of the financing proceeds of the OFFP transaction. The Operating Fund reserves
collateralizing the loan must also be subject to a depository agreement.
■ Sample Depository Agreement
• Fairness Opinion-If the terms of the transaction proposed by the PHA are outside
the range of what is generally submitted to HUD,HUD reserves the right to request that
an independent third-party fairness opinion be submitted.
• OFFP Amendment to the ACC -Where,pursuant to an OFFP approval,a PHA will
use excess reserves to prepay a CFFP,they will need to amend their CFFP Amendment to
the ACC. For information on prepaying a CFFP,please contact the Director of the Office
of Capital Improvements. All other PHAs receiving an OI+'r'Y approval must execute an
OFFP Amendment to the ACC.
• Declaration of Trust(DOT)/Declaration of Restrictive Covenants(DRC)—
Where PHAs are providing a security interest or other encumbrance in a public housing
project as part of their OFFP,the PHA must provide evidence of compliance with public
housing restrictive use requirements.
o If a PHA proposes to use OFFP proceeds for modernization,for any
property the OFFP proceeds are used upon,or any property that is
mortgaged or otherwise encumbered as part of the OFFP,PHA counsel
must opine and HUD's Office of General Counsel will concur,that in each
instance the DOTs are recorded prior(both in time and position)to the
security interest or other encumbrance that will be recorded pursuant to
the OFFP,and that they will remain current and effective for the term of
the financing. PHA counsel shall further opine that a Development DOT
has been recorded prior to the recordation of any other encumbrance. If
the PHA Counsel is unwilling to offer such a certification,the PHA may
submit a title report,along with a certification from the PHA that the
DOTs and the title report cover all of the public housing properties,both
real and personal property,that will be subject to the security interest or
encumbrance related to the OFFP,or that will be the recipient of OFFP
proceeds. Further,where HUD determines a higher level of
documentation is needed,HUD reserves the right to require a title report.
o Where OFFP proceeds are used for development,title insurance must be
obtained in compliance with 24 CFR 941. The title documentation must
establish that an effective DOT or mixed-finance Declaration of
Restrictive Covenants will be filed in first position.
5
o PHAs that intend to fund mixed-finance development or modernization
with OFFP proceeds are not required to submit DOT/DRC documentation
as part of their OFFP proposal since that review will be completed as part
of HUD's review of the mixed-finance proposal.
o DOTs/DRC documentation shall be submitted to the Director,Office of
Public Housing at the appropriate Field Office for review by Field Office
counsel.
5. Reporting-Once construction begins,PHAs should submit Performance and
Evaluation reports(HUD 50075.1,see link above in Section 3 of this guidance,Annual
Statement/Performance Evaluation)detailing the obligation and expenditure of OFFP
proceeds on a quarterly basis to the Field Office until all borrowed funds are expended
and included in the audited year-end financial statement.
• Each OFFP transaction is subject to fiscal closeout in the same manner as a
Capital Fund Grant. Fiscal closeout includes the submission of an Actual
Modernization Cost Certificate(AMCC)or Actual Development Cost Certificate
(ADCC),and audit,if applicable,and a final Performance and Evaluation Report.
6. Loan Documents--Loan documents are not required to be submitted as part of the
OFFP proposal. Please find below sample language that maybe used on loan documents
at the discretion of the PHA. Please note that the OFFP amendment to the ACC contains
certain requirements related to loan documents. Complying with those requirements is
the responsibility of the PHA. The below language may help PHAs in drafting
documents that comply with the requirements of the OFFP amendment to the ACC,but
may or may not need to be modified to do so.
a. Non-Recourse Language-"This financing is non-recourse to any public
housing property(real or personal property including all public housing assets or
income),or disposition proceeds approved pursuant to Section 18 of the United
States Housing Act of 1937(unless explicitly permitted by HUD in the Section 18
approval letter)."
It should be noted that PHAs can provide lenders recourse to the reserve
funds pledged as part of the proposed OFFP transaction and should
modify,as needed,the language above if they chose to provide such
recourse.
b. Indemnification Clause-"The PHA's indemnification is limited to eligible
non-public housing assets(assets not subject to the Declaration of Trust and not
acquired or merged with assets acquired with public housing funding under the
United States Housing Act of 1937)."
c. HUD Not Liable: "Loans and bonds connected with the financing activities are
obligations of the PHA and are not guaranteed or insured by HUD or the U.S.
Government."
6
7. Paperwork Reduction Act-The information collection requirements contained in
this document are approved by the Office of Management and Budget(OMB)under the
Paperwork Reduction Act of 1995(44 U.S.C.2510-3520). In accordance with the
Paperwork Reduction Act,HUD may not conduct or sponsor,and a person is not
required to respond to,a collection of information unless the collection displays a
currently valid OMB control number.The OMB control number for the Capital Fund
Financing Program is: 2577-0157
If you have any questions or concerns regarding the necessary documentation required
for an OFFP proposal,please contact Kevin Gallagher at 202 402 4192 or
Kevin.J.Gallagher@hud.gov.
hud.gov.
7
Cover Letter
4us CAI,
HOUSING COMMISSIONERS p{ I, CORPUS CHRISTI HOUSING AUTHORITY
V d<,`' Executive Offices
PRISCILLA WALLER,Chairperson . 3701 Ayers,Corpus Christi,Texas 78415
MARSHA HARDEMAN,Vice-Chairperson
FRANK W.MONTESANO,Commissioner r '+V' Gary Allsup
VERONICA WENZEL,Commissioner p ", President&Chief Executive Officer
HARVEY LOPEZ,Commissioner •
O
sljpg. Anti' Office:361-889-3300
Website: www.hacc.org
December 01,2014
Shauna Sorrells
Director Office of Public Housing Programs, Room 4232
451 76 Street SW
Washington,DC 20410
Re: Corpus Christi Housing Authority OFFP Proposal
Dear Ms. Sorrells:
The Corpus Christ Housing Authority has prepared the attached proposal for the Operating Fund
Financing Program(OFFP) as it relates to Section 9(e) of the 1937 Act and operating receipts as
defined in section 2 of the Annual Contributions Contract (7/95). The CCHA requests HUD's
approval of this OFFP Proposal.
Development Description
La Armada II property consists of seventy-one(71)buildings with five(5)building types
and a total of four hundred (400) units. The buildings were built in 1941 and currently
has ninety(90)units that are off line or inhabitable.
Proposed Financing
The proposed financing will include a line of credit from Frost Bank to include a
principal amount of$ 3,500,000 with an interest rate of(a) a rate equal to the Latest U.S.
prime rate of interest quoted in the most recently published issue of THE WALL
STREET JOURNAL (U.S. Edition) in the "Money Rates" section, plus 0.25% percent
per annum, with said rate to be adjusted to reflect any change in said prime rate at the
time of any such change or(b)the highest rate permitted by applicable law. The maturity
date shall be thirty-six(36)months form the date of the Note.
The City of Corpus Christi Type A will also contribute 500,000 to this project.
Intended Use of Proceeds
The intended use of the proceeds include renovations to La Armada II that consist of
exterior improvements to seventy-one (71) buildings, interior renovations to ninety (90)
off line units, bathroom improvements and plumbing to three-hundred ten (310) units at
La Armada II.
Operating Funds Available
The current amount of Operating Fund reserves available for financing is 3,643,965.
Operating Funds to use for debt service payments
The debt service requirement: This is a Revolving Line of Credit with interest only payments
paid monthly based on the outstanding balance of the note. (Interest payments are based on line
usage.) The principal balance is due at maturity. No debt schedule is available, as this is not an
amortizing note.
Other source of funds
The City of Corpus Christi Type A will contribute 500,000 to this project.
Security Interest
A first lien security interest on all funds held in a money market or other deposit account with
Lender, whether now owned or hereafter acquired, together with all products and proceeds
thereof.
Lender Recourse in the event of default
This is a non-recourse loan.
Other Financing associated with Public Housing
On January 27,2004,The Housing Authority was given approval to move forward on the Energy
Performance Contract and selection of an Energy Saving Company (ESCO). A Request for
Proposals (RFP) was advertised in the Corpus Christi Caller Times on April 18 and 25, 2004.
The Amersco team was chosen on December 16, 2004. After careful review of the audit and the
proposal Energy Services Agreement(ESA),the Housing Authority elected to contract an energy
consultant to ensure the results of the audit and the details of the contract were accurate.
On February 7, 2006, the Texas Engineering Experiment Station (TEES), a subsidiary of the
University of Texas A&M,were selected for the energy audit and ESA review. The results were
posted to the Housing Authority on March 9, 2006 and then forwarded to Amersco on March 24,
2006 for comment.
On June 6, 2006, the San Antonio Housing and Urban Development (HUD) field office has
reviewed and approved the Energy Services Agreement (ESA). Next, is to approve the ESA and
begin construction.
According to Appendix D of Energy Services Agreement, the final lease amount including
construction period interest is 1,785,176 (original principal amount) with an interest rate of 4.43
and a 12-year term. The original principal amount is 1,785,176 and the interest amount is
555,192.21 with a grand total of 2,340,368.21. The current outstanding balance as of September
30, 2014 is 740,733,41 with payments of approximately 15,413.63 (principal 12,632.45 and
interest 2,781.18) due monthly. The source of this monthly payment is provided by each
property or AMP. The financing was used to implement an energy performance contract to
provide the CCHA with utility/energy supplier consumption and cost savings or "Energy
Savings"by installation of Energy Conservation Measures within certain PHA properties.
If you have any questions regarding this proposal,please contact me at your convenience.
Sincerely,
Gary Allsup
OFFP Financing Limit Spreadsheet
f
OPERATING RESERVE CALCULATION
CORPUS CHRISTI HOUSING AUTHORITY TX008
9/30/2013 AUDITED FINANCIAL STATEMENT
Line# FDS# Description 2013
1 111 Cosh—Unrestricted $7,787,993
2 114 Cash-Tenant Security Deposits $214,958
3 120 Total Receivables,less allowance for doubtful accounts $463,400
4 131 Investments—Unrestricted $0
5 142 Prepaid expenses and other assets $51,992
6 144 Inter-program-due from $0
7 145 Assets held for sale $0
8 Total(1+2+3+4+5+6+7) $8,518,343
9 310 Total Current Liabilities $1,945,203
10 343 Current Portion of Long Term Debt-Capital Projects $348,560
11 Subtotal(9-10) $1,596,643
12 Total Operating Reserves(8-11) $6,921,700
#of Months Reserves at FYE 2010
13 Total:Line 12/Line 17 8.45
Annual Operating Expenses
14 969000 $9,833,205.00
15 97100 Extraordinary Maintenance $0.00
16 97200 Casualty Losses-Non-capitalized $0.00
Monthly Operating Expenses
•
17 (Lines 14+15+16)/12 $819,433.75
4-months of Operating Expenses
(Line 17/12)x4
18 $3,277,735.00
Total Operating Reserves less 4 months of Operating Expenses
19 Line 12-Line 18 $3,643,965.00
20 Allocation Adjustment
Total Reserves available for Financing
21 (Line 19-Line 20) $3,643,965.00
22 Operating SubsidyAmount(EX CFP) $15,645,526.00
Financial Statements
r—� \AA
CORPUS CHRISTI HOUSING AUTHORITY
CORPUS CHRISTI,TEXAS
FINANCIAL STATEMENTS
AND SUPPLEMENTAL INFORMATION
September 30,2013
with
Report of Independent Auditors
and
Management's Discussion and Analysis
TABLE OF CONTENTS
PAGE
Report of Independent Auditors 1-3
Management's Discussion and Analysis 4-11
Basic Financial Statements:
Statement of Net Position 12
Statement of Revenues,Expenses,and Changes
in Net Position 13
Statement of Cash Flows 14-15
Notes to Basic Financial Statements 16-35
Supplemental Information:
Combining Schedule of Net Position 36
Combining Schedule of Revenues,Expenses,and Changes in Net Position 37
Financial Data Schedule(FDS)Electronic Submission Schedule . . 38-42
Certification of Actual Capital Fund Grant Costs 43
Schedule of Reconciliation of Actual Capital Fund Costs and Advances 44
Schedule ofExpenditures of Federal Awards 45
Single Audit Section:
Report on Internal Control over Financial Reporting and on Compliance and
Other Matters Based on an Audit of Basic Financial Statements Performed
•
in Accordance with Government Auditing Standards 46-47
Report on Compliance with Requirements Applicable to
Each Major Program and Internal Control over Compliance in
Accordance with OMB Circular A-133 48-49
Schedule of Findings and Questioned Costs 50-51
Summary Schedule of Prior Audit Findings 52
•
NOVO G RA IAC
'l.
• & COMPANY UP®
CERTIFIED PUBLIC ACCOUNTANTS
Report of Independent Auditors
To the Board of Commissioners of
Corpus Christi Housing Authority:
Report on the Financial Statements
We have audited the accompanying financial statements of Corpus Christi Housing Authority, which
comprise the statement of net position as of September 30,2013, and the related statements of revenues,
expenses,and changes in net position and cash flows for the year then ended, and the related notes to the
financial statements.
Management's Responsibility for the Financial Statements
Management is responsible for the preparation and fair presentation of these financial statements in
accordance with accounting principles generally accepted in the United States of America;this includes
the design, implementation, and maintenance of internal control relevant to the preparation and fair
presentation of financial statements that are free of material misstatement,whether due to fraud or error.
Auditors'Responsibility
Our responsibility is to express an opinion on these financial statements based on our audit. We
conducted our audit in accordance with auditing standards generally accepted in the United States of
America and the standards applicable to financial audits contained in Government Auditing Standards,
issued by the Comptroller General of the United States. Those standards require that we plan and perform
the audit to obtain reasonable assurance about whether the financial statements are free from material
misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in
the financial statements. The procedures selected depend on the auditors' judgment, including the
assessment of the risks of material misstatement of the financial statements,whether due to fraud or error.
In makingthose risk assessments, the auditors' consider internal control relevant to the entity's
preparation and fair presentation of the financial statements in order to design audit procedures that are
appropriate in the circumstances,but not for the purpose of expressing an opinion on the effectiveness of
the entity's internal control. Accordingly,we express no such opinion. An audit also includes evaluating
the appropriateness of accounting policies used and the reasonableness of significant accounting estimates
made by management,as well as evaluating the overall presentation of the financial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for
our audit opinion.
11044 RESEARCH BOULEVARD,BUILDING C.SUITE 400,AUSTIN,TX 78759 TELEPHONE(512)340-0420 FACSIMILE(512)340-0421 http://www.novoco.com
Opinion
In our opinion, the financial statements referred to above present fairly, in all material respects, the
financial position of Corpus Christi Housing Authority as of September 30, 2013, and the changes in its
net position and its cash flows for the year then ended in accordance with accounting principles generally
accepted in the United States of America.
Report on Required Supplemental Information
Accounting principles generally accepted in the United States of America require that the management's
discussion and analysis and budgetary comparison information on pages 4 through 11 be presented to
supplement the basic financial statements. Such information, although not a part of the basic financial
statements, is required by the Governmental Accounting Standards Board, who considers it to be an
essential part of financial reporting for placing the basic financial statements in an appropriate
operational,economic, or historical context. We have applied certain limited procedures to the required
supplemental information in accordance with auditing standards generally accepted in the United States
of America,which consisted of inquiries of management about the methods of preparing the information
and comparing the information for consistency with management's responses to our inquiries, the basic
financial statements,and other knowledge we obtained during our audit of the basic financial statements.
We do not express an opinion or provide any assurance on the information because the limited procedures
do not provide us with sufficient evidence to express an opinion or provide any assurance.
Report on Supplemental Information
Our audit was conducted for the purpose of forming opinions on the financial statements that collectively
comprise Corpus Christi Housing Authority's financial statements as a whole. The accompanying
combining fund financial statements on pages 36 and 37,certification of actual capital fund grant costs on
page 43,and schedule of reconciliation of actual fund costs and advances on page 44 are presented for
purposes of additional analysis and are not a required part of the financial statements. The schedule of
expenditures of federal awards on page 45 is presented for purposes of additional analysis as required by
the Office of Management and Budget Circular A-133,Audits of States, Local Governments and Non-
Profit Organizations, and is not a required part of the financial statements. Further, the financial data
schedules shown on pages 38 through 42 are presented for purposes of additional analysis as required by
Uniform Financial Reporting Standards issued by the U.S. Department of Housing and Urban
Development,and are not a required part of the financial statements.
The combining fund financial statements, certification of actual capital fund grant costs, schedule of
reconciliation of actual fund costs and advances,and schedule of expenditures of federal awards are the
responsibility of management and were derived from and relate directly to the underlying accounting and
other records used to prepare the basic financial statements. Such information has been subjected to the
auditing procedures applied in the audit of the basic financial statements and certain additional
procedures,including comparing and reconciling such information directly to the underlying accounting
and other records used to prepare the basic financial statements or to the basic financial statements
themselves,and other additional procedures in accordance with auditing standards generally accepted in
the United States of America. In our opinion, the above described supplemental information is fairly
stated in all material respects in relation to the financial statements as a whole.
Other Reporting Required by Government Auditing Standards
In accordance with Government Auditing Standards,we have also issued our report dated June 20, 2014,
on our consideration of Corpus Christi Housing Authority's internal control over financial reporting and
on our tests of its compliance with certain provisions of laws,regulations,contracts,grant agreements and
other matters. The purpose of that report is to describe the scope of our testing of internal control over
financial reporting and compliance and the results of that testing, and not to provide an opinion on
internal control over financial reporting or on compliance. That report is an integral part of an audit
performed in accordance with Government Auditing Standards in considering Corpus Christi Housing
Authority's internal control over financial reporting and compliance.
Austin,Texas
June 20,2014
CORPUS CHRISTI HOUSING AUTHORITY
Corpus Christi,Texas
MANAGEMENT'S DISCUSSION AND ANALYSIS
SEPTEMBER 30,2013
•
The Corpus Christi Housing Authority (the Authority) continues to find ways to build and maintain
affordable housing for low to mixed income residents.The use of asset based management techniques has
been instrumental in identifying the strengths of the ten asset managed properties consisting of 16 sites
that currently receive HUD subsidy funding. Challenges for each of the asset managed properties can
more easily be resolved since the focus is now on the individual property. The Housing Choice Voucher
program has been challenged in increasing lease up in the program by the effects on local housing of the
Eagle Ford Shale Oil and Gas event in South Texas.
As management of the Authority, we offer the readers of the Authority's financial statements this
narrative overview and financial-analysis for the year ended September 30,2013.Readers are encouraged
to consider this information in conjunction with the financial statements presented in this report.
Financial Highlights
o The assets of the Authority exceeded its liabilities as of September 30,2013 by$38,042,780(net
position). Of this amount, $9,569,760 (unrestricted net assets) may be used to meet obligations
and $27,934,530 is invested in•capital assets, net of related debt and depreciation charges.
Restricted net assets are$538,490 and are Housing Choice Voucher housing assistance payment
reserves.
o The Authority's total net assets increased by$844,086.
o Operating revenues decreased by $1,447,412 from the prior year. Decreases in subsidy income
and developer fees from Corban Townhomes were responsible for the decrease.
o Operating expenses decreased by $471,435, or 2%, primarily due to decreases in Housing
Assistance payments.
o Net capital assets increased because of capital funds projects.
o Total liabilities increased by $357,931 or 14% over the previous year because of increases in
accrued liabilities,
Overview of the Financial Statements
The financial statements included in the audit are those of a special-purpose government engaged in a
business-type activity.The following statements are included:
o Statement of Net Position-reports the Authority's assets and liabilities, with the difference
between the two reported as net position.
o Statement of Revenues, Expenses, and Changes in Net Position-reports the Authority's
operating and non-operating revenues by major source along with operating and non-operating
expenses and capital grants and contributions.
o Statement of Cash Flows-reports the Authority's cash flows from operating, investing, and
capital and non-capital financing activities.
4
•
•
CORPUS CHRISTI HOUSING AUTHORITY
Corpus Christi,Texas
MANAGEMENT'S DISCUSSION AND ANALYSIS
SEPTEMBER 30,2013
Financial Analysis
Following is an analysis of the entity wide net position,revenues,and expenses.This analysis includes all
assets and liabilities using the accrual basis of accounting, which is similar to the accounting used by
most private sector companies.This analysis also reflects the Authority's net position and changes in.net
position. The Authority's net position is the differences between what the Authority owns (i.e., assets)
and what the Authority owes(i.e.,liabilities).This is one way to measure the Authority's financial health.
Over time, significant changes in the Authority's net position are an indicator of whether its financial
health is improving or deteriorating.The readers need to also consider other non-financial factors such as
changes in resident characteristics, fluctuations in the local economy, U.S. Department of Housing and
Urban Development ("HUD") mandated program administrative changes, the physical condition of the
Authority's capital assets,and Authority's decision to create new housing with non-HUD resources.
In the Statement of Net Position and Statement of Revenues,Expenses and Changes in Net Position, the
Authority reports using a single enterprise fund. The fund includes activities of the Authority related to
the governmental programs it administers and activities of the Authority's non-profit corporations. The
governmental programs are funded by HUD and are as follows:
o Low Rent Public Housing
o Housing Choice Vouchers(Section 8 program)
o Public Housing Capital Fund Program
Additional financial support was provided during the year by the City of Corpus Christi via pass-through
grants. These funds were used for the resident service programs designed to aid Authority residents and
their families.
The Authority's non-profit corporations were created to develop and finance affordable Housing in the
community.The non-profit corporations are as follows:
Corpus Christi Finance Corporation (CCFC) is a non-profit corporation used for business activity
programs. The corporation is used to pay for any pre-development expenses related to the start of new
developments. These expenses may include site plans, filing fees, survey fees, market studies and
appraisals.
Thanksgiving Homes was created in 2002 to construct 30 homes to sell to low-income participants.Due
to the lack of qualified homebuyers, Thanksgiving Homes was not completed. The land and
improvements remain as assets of the Authority.
Bluebonnet Gardens was created in 2003 to develop affordable housing for low-income and elderly
residents.It was the co-developer of Sea Breeze Senior Apartments and Hampton Port Apartments, low-
income tax credit properties.
5
CORPUS CHRISTI HOUSING AUTHORITY
Corpus Christi,Texas
MANAGEMENT'S DISCUSSION AND ANALYSIS
SEPTEMBER 30,2013
Financial Analysis(Continued)
Royal Palms Gardens was created in 2005 as a non-profit corporation for the development of affordable
housing.There has been limited use of this entity;however,the entity records,as an asset,the land upon
which the Sea Breeze Seniors Apartment complex resides and the related loan from the Fannie Mae
Corporation as a liability.
Bahia Properties,Inc.was formed as a management company for the affordable housing developments.
It currently manages Sea Breeze Senior Apartments and Hampton Port Apartments which are owned,in
part,by limited partnerships that are also related organizations of the Authority.
The Authority has created additional corporations and partnerships to further its efforts to create,develop,
and finance affordable housing in the community. However; as of September 30, 2013, none of these
corporations of partnerships had any financial activity.
Analysis of Entity Wide Net Position(Statement of Net Position)
Total Assets for FYE 2013 were$41,041,642 and for FYE 2012 were$39,839,625. This represents a net
increase fiom theprior year of$1,202,017.
Current Assets increased by$702,513. This represents a change of 8%from the prior year.
Noncurrent Assets increased by $227,750. Most of the increase was due to a reclassification of
developer fee from Corban Townhomes.
Current Liabilities increased by $503,814.Vendors and contractors payable accounted for the change.
Noncurrent Liabilities decreased by$145,883 because of principal payments on the Frost Bank loan and
the Energy Performance Loan.
•
6
•
CORPUS CHRISTI HOUSING AUTHORITY
Corpus Christi,Texas
MANAGEMENT'S DISCUSSION AND ANALYSIS
SEPTEMBER 30,2013
Financial Analysis(Continued)
The table below illustrates the Authority's analysis.
Analysis of Entity Wide Net Position(Statement of Net Position)
2013 2012 Net change Variance
Assets
Cash and cash equivalents $ 8,619,669 $ 7,708,002 $ 911,667 12%
Other current assets 601,012 810,166 (209,154) -26%
Capital assets,net 29,027,977 28,756,223 271,754 1%
Noncurrent assets 2,792,984 2,565,234 227,750 9%
Total assets $ 41,041,642 $ 39,839,625 $ 1,202,017 3%
Liabilities
Current Iiabilities $ 1,945,203 $ 1,441,389 $ 503,814 35%
Noncurrent liabilities 1,053,659 1,199,542 (145,883) -12%
Total liabilities 2,998,862 2,640,931 357,931 14%
Net Assets
Invested in capital assets,
net of related debt 27,934,530 27,519,069 415,461 2%
Restricted net assets 538,490 788,949 (250,459) -32%
Unrestricted net assets 9,569,760 8,890,676 679,084 8%
Total net assets 38,042,780 37,198,694 844,086 2%
Total liabilities and net assets $ 41,041,642 $ 39,839,625 $ 1,202,017 3%
Analysis of Entity Wide Statement of Revenues,Expenses and Changes in Net Position
Total Operating Revenues were $19,233,443 in 2013 and $20,680,855 in 2012. The decrease was
primarily due to Other Revenue and HUD grants. Developer fees for Corban Townhomes were
recognized in 2012. The decrease in governmental revenues of 1% was primarily from the Housing
Choice Voucher program. HUD required that program reserves be used to help pay for Housing
Assistance Payments(HAP)in 2013.
Total Operating Expenses decreased by 2% from FYE 2013 to FYE 2012.The decrease was partially
due to reduced administrative costs for the Asset Managed Properties and the Central Office Cost Center.
Administrative Expenses increased by$84,743.Travel and training costs were increased in 2013 as well
as salary costs and office expenses. •
•
7
•
CORPUS CHRISTI HOUSING AUTHORITY
Corpus Christi,Texas
MANAGEMENT'S DISCUSSION AND ANALYSIS
SEPTEMBER 30,2013
Financial Analysis(Continued)
Analysis of Entity Wide Statement of Revenues,Expenses and Changes in Net Position(Continued)
Tenant Services Expenses decreased by $6,595. Some expenses for Resident Service programs were
paid by pass through grants from the City of Corpus Christi.
Utilities Expenses increased by 7% over the prior year due to a hotter summer in 2013 and the use of
additional electricity.
Ordinary Maintenance and Operations Expenses decreased by $5,279. Plumbing repairs were less
than in prior years.
General Expenses decreased by 14%. Compensated absences decreased as did bad debt expense.
Interest Revenue decreased by 3%. Interest earned on the certificates of deposit is at higher levels than
prior year. Interest expense decreased by 23%. As loans approach maturity,more of the payment goes
toward the principal balance and less to interest expense.Mortgage interest income has been generated by
the loan to Corban Townhomes for construction costs.
Capital Grants increased by 41%.The change from year to year in the Capital Grants Program has to do
with the timing of completion of projects for the Asset Managed Properties. Some construction activities
require longer completion times than others and this impacts the construction draws.
•
8
CORPUS CHRISTI HOUSING AUTHORITY
Corpus Christi,Texas
MANAGEMENT'S DISCUSSION AND ANALYSIS
SEPTEMBER 30,2013
The following table illustrates a comparative Statement of Revenues, Expenses and Changes in Net
Position.
2013 2012 Net Changie Variance
Operating revenues:
Rental revenue $ 2,897,890 $ 2,734,616 $ 163,274 6%
HUD grants 15,645,526 15,860,742 (215,216) -1%
Other revenue 690,027 2,085,497 (1,395,470) -67%
Total operating revenues 19,233,443 20,680,855 (1,447,412) -7%
Operating expenses:
Administration 3,764,675 3,679,932 84,743 2%
Tenant services 319,940 326,535 (6,595) -2% •
Utilities 1,644,088 1,532,347 111,741 7%
Ordinary maintenance and operations 3,055,016 3,060,295 (5,279) 0%
Protective services 33,245 35,747 (2,502) -7%
General expenses 973,389 1,129,227 (155,838) -14%
Housing assistance payments 8,347,803 8,698,154 (350,351) -4%
Depreciation 2,725,420 2,872,774 (147,354) -5%
Total operating expenses 20,863,576 21,335,011 (471,435) -2%
Operating loss (1,630,133) (654,156) (975,977) 149%
•Nonoperating revenues(expenses)
Interest revenue,unrestricted 6,300 5,658 642 11%
Mortgage interest revenue 79,629 82,484 (2,855) -3%
Interest expense (42,852) (55,475) 12,623 -23%
Fraud recovery 15,017 - 15,017 100%
Other expense (287,528) (18,827) (268,701) 1427%
Gain on disposition of capital assets 3,025 1,645 1,380 84%
Total nonoperating revenues. (226,409) 15,485 (241,894) -1562%
Loss before contributions (1,856,542) (638,671) (1,217,871) 191%
Capital grants 2,700,628 1,605,545 1,095,083 68%
Increase in net assets 844,086 966,874 (122,788) -13%
Net assets,beginning of year 37,198,694 36,231,820 966,874 3%
Net assets,end of year $ 38,042,780 $ 37,198,694 $ 844,086 2%
9
CORPUS CIIRISTI HOUSING AUTHORITY
Corpus Christi,Texas
MANAGEMENT'S DISCUSSION AND ANALYSIS
SEPTEMBER 30,2013
Capital Assets and Debt Administration
Capital Assets
The Authority's capital assets include land,buildings, equipment and vehicles. The current capitalization
amount is $5,000 with a Life span of greater than one year. Major capital assets added during this fiscal
year were:cathodic protection upgrades,roof repairs,and the purchase of golf carts.
Balance Balance
September 30,2012 Additions - - Deletions Transfers September 30,2013
Land $ 3,812,755 $ - $ - $ - $ 3,812,755
Land improvements 674,458 237,029 911,487
Buildings 60,050,851 34,084 1,940,420 62,025,355
Furniture,equipment and machinery 1,305,149 25,433 1,330,582
Construction in progress 4,728,912 2,700,628 - (1,940,420) 5,489,120
Subtotal 70,572,125 2,997,174 - - 73,569,299
Accumulated depreciation:
Buildings (40,878,501) (2,547,987) (43,426,488)
Furniture,equipment and machinery _ X937,401) (177,433) - - (1,114,834)
Total accumulated depreciation (41,815,902) (2,725,420) - - (44,541,322)
Capital assets,net $ 28,756,223 S 271,754 $ - $ _ -$ 29,027,977
Debt Administration
The Authority's outstanding long-tenn debt is summarized in the table below:
Balance Balance
September 30,2012 Additions Deletions September 30,2013
Notes Payable
Frost National Bank $ 5,726 $ - $ (5,726) $ -
Fannie Mae 200,000 - - 200,000
Total notes payable 205,726 (5,726) 200,000
Siemens-capital lease 1,031,428 (142,134) 889,294
Total long-telmdebt $ 1,237,154 $ - $ (147,860) $ 1,089,294
10
CORPUS CHRISTI HOUSING AUTHORITY
Corpus Christi,Texas
MANAGEMENT'S DISCUSSION AND ANALYSIS
SEPTEMBER 30,2013
Economic Factors and the 2014 Budget •
The following factors were considered in preparing the Authority's budgets for fiscal year ended
September 30,2014.
O HUD funding for 2014 for the Low Rent programs,the Housing Choice Voucher program and the
Capital Funds programs.
o The impact of negative proration on all HUD subsidies. (Proration involves a percentage change
in projected subsides and administrative fees.)
U Inflationary factors on basic services such as utilities,gasoline,building materials,and insurance.
U The impact of a continuing severe drought in South Texas.
O The need to develop affordable housing alternatives to replace aging properties.
o Aging properties that have become difficult to maintain and operate at an acceptable level.
o Employee benefit increases driven by medical care costs for employees and their families.
O Economic factors in the City of Coipus Christi and surrounding areas.
Request for information
This financial report is designed to provide the reader with a general overview of the Authority's
finances. Questions concerning any of the information provided in this report or requests for additional
information should be addressed to the Chief Executive Officer of the Corpus Christi Housing Authority
at 3701 Ayers Street,Corpus Christi,Texas 78415-4615.
11
CORPUS CHRISTI HOUSING AUTHORITY
Corpus Christi,Texas
STATEMENT OF NET POSITION
SEPTEMBER 30,2013
ASSETS
Current assets
Cash and cash equivalents,unrestricted $ 7,787,993
Cash and cash equivalents,reshicted 831,676
Accrued interest receivable 1,160
Accounts receivable,net of allowance 232,677
Due from other governments 229,563
Inventories,net of obsolescence 85,620
Prepaid expenses 51,992
Total emrent assets 9,220,681
Noncurrent assets
Other assets
Notes and interest receivable 1,230,572
Developer's Fee receivable and other 1,562 412_
Total other assets 2,792,984
Capital assets
Not being depreciated 10040 030
Depreciable,net 18,987,947
Total capital assets,net 29,027,977
Total noncurrent assets 312820,961
Total assets 41,041,642
LIABILiTiES
. Current liabilities
Vendors and contractors payable 511,808
Accrued wages/taxes payable 89,223
Accrued compensated absences 122,742
Due to local governments for PILOT 125,120
Deferred revenue 25,720
Notes and bonds payable 348,560
Other accrued liabilities 492,718
Total current liabilities 1,7152891_
Current liabilities payable from restricted assets
Resident security deposits 229,312
Noncurrent liabilities
Notes payable 740,734
Accrued compensated absences 285,072
Other accrued liabilities 27,853
Total noncurrent liabilities 1,053,659
Total liabilities 2,998,862
NET POSITION
Invested in capital assets,net of related debt 27,934,530
Restricted 538,490
Unrestricted 9,569,760
Total net position $ 38,042,780
The accompanying notes are an integral part of the financial statements.
12
CORPUS CHRISTI HOUSING AUTHORITY
Corpus Christi,Texas
STATEMENT OF REVENUES,EXPENSES,
AND CHANGES IN NET POSITION
FOR THE YEAR ENDED SEPTEMBER 30,2013
Operating revenues:
Rental revenue $ 2,897,890
HUD grants 15,645,526
Other revenue 690,027
Total operating revenues 19,233,443
Operating expenses:
Administration 3,764,675
Tenant services 319,940
Utilities 1,644,088
Ordinary maintenance and operations 3,055,016
Protective services 33,245
Insurance 617,228
General expenses 356,161
Housing assistance payments 8,347,803
Depreciation 2,725,420
Total operating expenses 20,863,576
Operating loss (1,630,133)
Nonoperating revenues(expenses)
Interest revenue,unrestricted 6,300
Mortgage interest revenue 79,629
Interest expense (42,852)
Fraud recovery 15,017
Other expense (287,528)
Gain on disposition of capital assets 3,025
Total nonoperating revenues (226,409)
Loss before contributions (1,856,542)
Capital grants 2,700,628
Increase in net position 844,086
Net position,beginning of year 37,198,694
Net position,end of year $ 38,042,780
The accompanying notes are an integral part of the financial statements.
13
CORPUS CHRISTI HOUSING AUTHORITY
Corpus Christi,Texas
STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED SEPTEMBER 30,2013
CASH FLOWS FROM OPERATING ACTIVITIES
Receipts from dwelling rentals $ 2,915,858
Operating grants 15,645,526
Other receipts 437,644
Payments to employees and suppliers (8,795,889)
Payments to landlords and resident benefits (8,955,271)
Net cash provided by operating activities 1,247,868
CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES
Capital contributions 2,700,628
Purchases of capital assets (2,949,883)
Principal paid on capital debt (148,560)
Interest paid on capital debt (42,852)
Net cash used in capital and related financing activities (440,667)
CASH FLOWS FROM INVESTING ACTIVITIES
Note activity-net 18,042
Decrease in notes and interest receivable 495
Interest 85,929
Net cash used in investing activities 104,466
Net increase in cash and cash equivalents 911,667
Balance-beginning of the year 7,708,002
Balance-end of the year $ 8,619,669
Reconciliation of Cash Flows to Statement of Net Assets
Cash and cash equivalents,unrestricted $ 7,787,993
Cash and cash equivalents,restricted 831,676
$ 8,619,669
The accompanying notes are an integral part of the financial statements.
14
CORPUS CHRISTI HOUSING AUTHORITY
Corpus Christi,Texas
STATEMENT OF CASH FLOWS(CONTINUED)
FOR THE YEAR ENDED SEPTEMBER 30,2013
Reconciliation of Net Operating Loss to
Net Cash Provided by Operating Activities
Operating loss $ (1,630,133)
Adjustments to reconcile net operating loss to
net cash provided by operating activities:
Depreciation 2,725,420
Changes in operating assets and liabilities:
Increase in accounts receivable •
(20,355)
Increase in due from other governments (228,434)
Decrease in prepaid expenses 3,271
Increase in resident security deposits 14,374
Increase in vendors and contractors payable 254,668
Decrease in compensated absences (10,025)
Decrease in due to other governments (5,612)
Increase in other accrued liabilities 432,222
Other revenue and expense reported as nonoperating (287,528)
$ 1,247,868
•
The accompanying notes are an integral part of the financial statements.
15
•
CORPUS CHRISTI HOUSING AUTHORITY
Corpus Christi,Texas
NOTES TO BASIC FINANCIAL STATEMENTS
SEPTEMBER 30,2013
A- Summary of Significant Accounting Policies and Organization:
1. Organization: The Corpus Christi Housing Authority(the"Authority" or"CCHA")is a public
body corporate.and politic,pursuant to the Laws of the State of Texas,which was organized to
provide low-rent housing for qualified individuals in accordance with the rules and regulations
prescribed by the U. S.Department of Housing and Urban Development(HUD)and other federal
agencies.
2. Reporting Entity: In determining how to define the reporting entity, management has
considered all potential component units. The decision to include a component unit in the
reporting entity was made by applying the criteria set forth in Section 2100 and 2600 of the
Codification of Governmental Accounting and Financial Reporting Standards and Statement No.
14, (amended) of the Governmental Accounting Standards Board: The Financial Reporting
Entity. These criteria include manifestation of oversight responsibility including financial
accountability,appointment of a voting majority,imposition of will,financial benefit to or burden
on a primary organization,financial accountability as a result of fiscal.dependency,potential for
duel inclusion, and organizations included in the reporting entity although the primary
organization is not financially accountable.
Blended Component Units -Blended component units are separate legal entities that meet the
component unit criteria described above and whose governing body is the same or substantially
the same as the Authority. These component units are in substance part of the Authority's
operations and thus,data from these units are combined with the data of the Authority.
Based on the application of these criteria,there are five component units blended with CCHA and
reported as business activities.These five entities are as follows:
Corpus Christi Finance Corporation (CCFC) was incorporated July 3, 1996. The
corporation is a Texas nonprofit corporation.The purpose of CCFC is to provide housing for
occupancy by low income participants as defined by the regulations of HUD by acquiring
residences, repairing such residences and selling them to qualified purchasers, all in the
furtherance of the goal of the Authority. Separate financial statements for CCFC are not
issued.
Thanksgiving Homes was incorporated December 27, 2002. The corporation is a Texas
nonprofit corporation. The purpose of Thanksgiving Homes is to assist the Authority in
acquiring, financing,constructing, mortgaging, selling,refinancing, and doing any other such
act as approved by the Authority to provide affordable housing for low to moderate income,
and elderly families. Thanksgiving Homes does not issue separate financial statements.
•
16
CORPUS CHRISTI HOUSING AUTHORITY
Corpus Christi,Texas
NOTES TO BASIC FINANCIAL STATEMENTS
SEPTEMBER 30,2013
A- Summary of Significant Accounting Policies and Organization:(Continued)
2. Reporting Entity: (Continued)
Blended Component Units(Continued)
Bluebonnet Gardens was incorporated in August 22, 2003. The corporation is a Texas
nonprofit public facility corporation. Bluebonnet Gardens was organized exclusively to
develop affordable housing for low-income, middle-income, and elderly families, to include
the development and/or construction of single-family or multi-family residential projects,and
the making of distributions to organizations that qualify as exempt organizations under
Section 501(c)(3) of -the Internal Revenue Code. Separate financial statements for
Bluebonnet Gardens are not-issued.
Bahia Properties, Inc. (Bahia Properties) was incorporated on April 27, 2005. The
corporation is a nonprofit Texas public facility corporation. The primary purpose of the
corporation is the charitable provision and management of safe, decent, and affordable
housing and to serve low and moderate-income, elderly, and disabled individuals, and to
administer and manage public housing in a manner beneficial for all citizens of Corpus
Christi. The corporation shall, but not be limited to, reinvest funds acquired by the
corporation in affordable housing developments and programs and shall provide grants and
loans to other nonprofit organizations in furtherance of the corporation's goals. Separate
financial statements for Bahia Properties are not issued.
Royal Palm Gardens was incorporated on July 22, 2005. The corporation is a nonprofit
Texas public facility corporation. The corporation is established for the charitable purpose of
generally constructing,financing,and managing affordable public housing for the citizens of
Corpus Christi, Nueces County, Texas, and other areas approved by law and the board of
directors. Separate financial statements for Royal Palm Gardens are not issued.
Dormant Component Units - The following eight entities are currently dormant, having no
assets,liabilities or operational activities.If and when any of these entities have assets, liabilities
or operational activities, such entities would be blended for financial statement reporting
purposes.
Sea Breeze was incorporated on September 3, 2003. The corporation is a Texas nonprofit
public facility corporation. The purpose of Sea Breeze is to assist the Authority in financing,
refinancing, or providing public housing/facilities for low-income families and/or to provide
affordable housing for those qualifying for public assistance.
Construction Management Corp. ("CMC") was incorporated on December 19, 2003. The
corporation is a Texas nonprofit corporation. CMC was organized to develop, construct,
improve,repair, market, and sell multi-family and single-family residential units and related
structures, to provide safe, decent, and affordable housing; and to serve low and moderate-
income,elderly,and disabled individuals. ,
17 •
CORPUS CHRISTI HOUSING AUTHORITY
Corpus Christi,Texas
NOTES TO BASIC FINANCIAL STATEMENTS
SEPTEMBER 30,2013
A- Summary of Significant Accounting Policies and Organization: (Continued)
2. Reporting Entity: (Continued) •
Dormant Component Units(Continued)
Sea Breeze GP, LLC was incorporated on February 28, 2005. Sea Breeze GP, LLC is a
Texas Limited Liability Company. The sole member of the company is Bluebonnet Gardens,
a Texas nonprofit corporation.
Hampton Port GP,LLC was incorporated on March 3,2006. Hampton Port GP,LLC is a
Texas Limited Liability Company. The sole member of Hampton Port GP, LLC is
Bluebonnet Gardens.
Corban Townhomes GP,LLC was incorporated on August 17, 2009. Corban Townhomes
GP,LLC is a Texas Limited Liability Company. The sole member of Corban Townhomes
GP,LLC is Bluebonnet Gardens.
• Hampton Port Manor was incorporated on July 22, 2005. The corporation is a nonprofit
Texas public facility corporation. The charitable purpose of the corporation is to provide
public housing, and to issue bonds, obtain tax credits, and/or purchase Authority obligations
under the regulations of HUD, to finance public facilities on behalf of the Authority,or loan
the proceeds of the obligations to other entities to accomplish the purposes of the Authority.
The corporation was further established for the charitable purpose of generally constructing,
financing,and managing affordable public housing for the citizens of Corpus Christi,Nueces
County,Texas,and other areas.
Magnolia Apartments was incorporated on February 23, 2005. The corporation is a
nonprofit Texas public facility corporation. The purpose of the corporation is to issue bonds
under Local Government Code,to purchase Authority obligations,to finance public facilities
on behalf of the Authority, or loan the proceeds of the obligations to other entities to
accomplish the purposes of the Authority.
Corpus Christi Capital Funds was incorporated on June 1 3, 2005. The corporation is a
Texas nonprofit public facility corporation. The primary purpose of the corporation is the
provision and management of safe, decent, and affordable housing and to serve low and
moderate-income, elderly, and disabled individuals, and to administer and manage public
housing in a manner beneficial to the citizens of Corpus Christi.
18
CORPUS CHRISTI HOUSING AUTHORITY
Corpus Christi,Texas
•
NOTES TO BASIC FINANCIAL STATEMENTS
SEPTEMBER 30,2013
A- Summary of Significant Accounting Policies and Organization:(Continued)
2. Reporting Entity: (Continued)
Investments in Limited Partnerships(Non-Component Units)
Sea Breeze Seniors,LP was formed on March 1, 2005 as'a Texas Limited Partnership. Sea
Breeze GP, LLC, a component unit of the Authority, is the General Partner, Columbia
Housing SLP Corporation is the Special Limited Partner and PNC Multifamily Capital
Institutional Fund XXIX Limited Partnership is the Investment Limited Partner. The only
purposes of the partnership are to construct, acquire,own, operate,maintain,manage, lease,
sell, mortgage, or otherwise dispose of the 200 unit Sea Breeze Senior Apartments project.
The project is operated in a manner necessary to qualify for federal low-income housing tax
credits as provided for in Section 42 of the Internal Revenue Code. Profits and losses of the
Partnership are allocated.01%to the general partner and 99.99%to the limited partners. The
general partner had no equity investment in Sea Breeze Seniors, LP, as of September 30,
2013. Sea Breeze Seniors,LP is a related organization of the Authority. Financial statements
for Sea Breeze Seniors,LP,may be obtained at the Authority's administrative offices.
Hampton Port, Ltd. was formed on August 10, 2005 as a Texas Limited Partnership.
Hampton Port GP,LLC,a component unit of the Authority,is the General Partner,Columbia
Housing SLP Corporation is the Special Limited Partner and PNC Multifamily Capital
Institutional Fund XX IX Limited Partnership is the Investment Limited Partner. The only
purposes of the partnership are to rehabilitate, acquire, lease, own (the buildings and
improvements), operate, maintain,manage, sell, mortgage, or otherwise dispose of the 110
unit Hampton Port Apartments project. The project is operated in a manner necessary to
qualify for federal low-income housing tax credits as provided for in Section 42 of the
Internal Revenue Code.Profits and losses of the Partnership are allocated.01%to the general
partner and 99.99% to the limited partners. The general partner had no equity investment in
the Hampton Port, Ltd., as of September 30, 2013. Hampton Port, Ltd. is a related
organization of the Authority. Financial statements for Hampton Port, Ltd.may be obtained
at the Authority's administrative offices.
Corban Townhomes, L.P. was formed on August 17, 2009 as a Texas limited partnership.
The General Partner, Corban Townhomes GP, LLC, was also formed on August 17,2009.
These entities were created to develop a 128-unit townhome-style property on existing
Authority land. Corban Townhomes is a Low-Income Housing Tax Credit property operating
as a project-based Section 8 Program of the Authority.
Investments in Partnerships are accounted for under the equity method. Under this method,
the investment is initially recorded at cost and is then increased or decreased by the
proportionate share of the partnerships'net earnings or losses.As of September 30,2013,the
Authority had no equity investment in Sea Breeze Seniors, LP, or Hampton Port, Ltd., or
Corban Townhomes,L.P.
19
CORPUS CHRISTI HOUSING AUTHORITY
Corpus Christi,Texas
NOTES TO BASIC FINANCIAL STATEMENTS
SEPTEMBER 30,2013
A- Summary of Significant Accounting Policies and Organization: (Continued)
2. Reporting Entity: (Continued)
Investments in Limited Partnerships(Non-Component Units)(Continued)
Other Authority programs are as follows:
O Low Rent Public Housing
O Section 8 Housing Choice Voucher Programs
O Public Housing Capital Fund Program
Summary of HUB Programs: The accompanying financial statements include the activities
of the housing programs subsidized by HUD. A summary of the programs funded by HUD is
provided be low.
o Low Rent Public Housing-This type of housing consists of apartments owned and
operated by the Authority. Funding is provided by tenant rent payments and
subsidies provided by HUD.
o Public Housing Capital Fund Programs - Substantially all additions to buildings
and equipment are accomplished through the Capital Fund Programs. These
programs add to, replace, or materially upgrade deteriorated portions of the
Authority's housing units. Funding is provided through programs established by
HUD.
o Section 8 Housing Choice Vouchers - This program is a housing program wherein
low-income tenants lease housing units directly from private landlords rather than
through the Authority. The Authority contracts with private landlords to make
assistance payments for the difference between the approved contract rent and the
actual rent paid by the low-income tenants. Eighty-nine(89)vouchers are designated
project-based for Sea Breeze Senior Apartments and one hundred twenty-eight(128)
vouchers are designated as project-based for Corban Townhomes.
3. Basis of Presentation: In accordance with uniform financial reporting standards for HUD
housing programs, the financial statements are prepared in accordance with U.S. generally
accepted accounting principles("GAAP").
Based upon compelling reasons offered.by HUD, the Authority reports under the governmental
• proprietary fund type (enterprise fund), which uses the accrual basis of accounting. The
enterprise fund emphasizes the flow of economic resources measurement focus. In this fund,
revenues are recorded when earned and expenses are recorded at the time the liabilities are
incurred. Pursuant to the election option made available by GASB Statement No. 20,
pronouncements of the Financial Accounting Standards Board(FASB)issued after November 30,
1989 are not applied in the preparation of the basic financial statements.
20
CORPUS CHRISTI HOUSING AUTHORITY
Corpus Christi,Texas
NOTES TO BASIC FINANCIAL STATEMENTS
SEPTEMBER 30,2013
A- Summary of Significant Accounting Policies and Organization:(Continued)
3. Basis of Presentation: (Continued)
The enterprise fund is used to account for those operations that are financed and operated in a
manner similar to a private business, or where the Board has decided that the determination of
revenues earned, costs incurred, and/or net income is necessary for management accountability.
The intent of the governing body is that the costs(expenses including depreciation)of providing
services to the general public on a continuing basis be financed or recovered primarily through
user charges,
Generally accepted accounting principles for state and local governments requires that resources
be classified for accounting and reporting purposes into the following three net asset categories:
Invested in Capital Assets, Net of Related Debt - Capital assets, net of accumulated
depreciation and outstanding principal balances of debt attributable to the acquisition,
construction or improvement of those assets.
Restricted -Net assets whose use by the Authority is subject to externally imposed stipulations
that can be fulfilled by actions of the Authority pursuant to those stipulations or the expire by the
passage of time. Such assets include assets restricted for capital acquisitions and debt service.
Unrestricted-Net assets that are not subject to external imposed stipulations. Unrestricted net
assets may be designated for specific purposes by action.of management or the Authority Board
or may otherwise be limited by contractual agreements with outside parties.
4. Budgets: Budgets are prepared on an annual basis for each major operating program and are
used as a management tool throughout the accounting cycle. The capital fund budgets are
adopted on a "project length" basis. Budgets are not, however, legally adopted nor legally
required for financial statement presentation.
5. Cash and Cash Equivalents: Cash and cash equivalents consist principally of demand deposits
and certificates of deposit. These are stated at fair value.
6. Interprogram Receivables and Payables: Interprogram receivables/payables are the result of
the use of the Public Housing Program as the common paymaster for shared costs of the
Authority. Cash settlements are made periodically and all interprogram balances net to rem.
Offsetting due to/due from balances are eliminated for the financial statement presentation.
7. Inventories: Inventories (consisting of materials and supplies) are valued at cost using the first
in, first out (FIFO) method. If the fair value of inventory falls below cost due to damage,
deterioration,or obsolescence, the Authority establishes an allowance for obsolete inventory. In
accordance with the consumption method,inventory is expensed when items are actually placed
in service.
S. Prepaid Items:Payments made to vendors for goods or services that will benefit periods beyond
the fiscal year end are recorded as prepaid items.
21
•
CORPUS CIIRISTI HOUSING AUTHORITY
Corpus Christi,Texas
NOTES TO BASIC FINANCIAL STATEMENTS
SEPTEMBER 30,2013
A- Summary of Significant Accounting Policies and Organization: (Continued)
9. Restricted Assets: Certain assets may be classified as restricted on the balance sheet because
their use is restricted by contract agreements with outside third parties and lending institutions.
Restricted assets of the Authority at September 30,2013 are as follows:
Cash and Cash Equivalents
Tenant Security Deposits $ 214,958
HCV Net Restricted Assets 616,718
TOTAL $ 831,676
10. Use of Estimates: The preparation of financial statements in conformity with U.S. generally
accepted accounting principles requires management to make estimates and assumptions that
affect the reported amounts of assets and liabilities and disclosures of contingent liabilities at the
date of the financial statements and reported amounts of revenues and expenditures during the
reporting period. Actual results could differ from those estimates.
11. Fair Value of Financial Instruments: The carrying value of the .Authority's financial
instruments at September 30,2013 including cash and cash equivalents,accounts receivable,and
accounts payable closely approximates fair value.
12. Capital Assets:
a. Book Value: All purchased capital assets are valued at cost when historical records are
available. When no historical records are available, capital assets are valued at estimated
historical cost.
Land values were derived from development closeout documentation.
Donated capital assets are recorded at their fair value at the time they were received.
Donor imposed restrictions are deemed to expire as the asset depreciates.
All normal expenditures of preparing an asset for use-are capitalized when they meet or exceed
the capitalization threshold.
b. Depreciation: The cost of capital assets is depreciated over the estimated useful lives of all
related assets on a composite basis using the straight-line method.
Depreciation commences on modernization and development additions in the year following
completion.
Estimated useful lives of the classes of depreciable capital assets are as follows:
Buildings 15-40 years
Furniture,Equipment,and Machinery 5-7 years
22
CORPUS CHRISTI HOUSING AUTHORITY
Corpus Christi,Texas
NOTES TO BASIC FINANCIAL STATEMENTS
SEPTEMBER 30,2013
A- Summary of Significant Accounting Policies and Organization: (Continued)
12. Capital Assets: (Continued)
c. Maintenance and Repair Expenditures: Maintenance and repairs expenditures are charged
to operations when incurred. Betterments in excess of$5,000 are capitalized. When buildings
and equipment are sold or otherwise disposed of, the asset account and related accumulated
depreciation account are relieved,and any gain or loss is included in operations.
d.Interest Capitalization:The Authority capitalizes interest costs related to construction.
13. Compensated Absences: Compensated absences are those absences for which employees will be
paid, such as vacation and sick leave computed in accordance with GASB Statement No. 16. A
liability for compensated absences that is attributable to services already rendered and that are not
contingent on a specific event that is outside the control of the Authority and its employees, is
accrued as employees earn the rights to the benefits. Compensated absences that are related to
future services or that are contingent on a specific event that is outside the control of the
Authority and its employees are accounted for in the period in which such services are rendered
or in which such events take place.
14. Litigation Losses:The Authority recognizes estimated losses related to litigation in the period in
which the occasion giving rise to the loss occurred,the loss is probable,and the loss is reasonably
estimable.
15. Annual Contributions Contract:Annual contribution contracts provide that HUD shall have the
authority to audit and examine the records of public housing authorities. Accordingly, final
determination of the Authority's financing and contributions status for the Annual Contributions
Contract is the responsibility of HUD based upon financial reports submitted by the Authority.
16. Risk Management: The Authority is exposed to various risks of loss related to torts, theft of,
damage to, and destruction of assets, errors and omissions, injuries to employees, and natural
disasters. The Authority carries commercial insurance for risk of loss regarding crime,employee
dishonesty,property,and other risks. Settled claims resulting from these risks have not exceeded
commercial insurance coverage in any of the past three fiscal years. Additionally, there have
been no significant reductions in insurance coverage from the prior year.
The Authority also participates in two public entity risk pools. The Housing Authority's Risk
Retention Group covers the Authority's general liability and the Texas Municipal League covers
automobile, worker's compensation, and windstorm. Settled claims resulting from these risks
have not exceeded the risk pool coverage in any of the past three years. Rights and
responsibilities of the Authority and the pools are contained within the pool agreements and the
scope of coverage documents.
23
CORPUS CHRISTI HOUSING AUTHORITY
Corpus Christi,Texas
NOTES TO BASIC FINANCIAL STATEMENTS
SEPTEMBER 30,2013
B- Deposits and Investments:For purposes of the Statement of Cash Flows,the Authority considers all
highly liquid investments (including restricted assets) with a maturity of three months or less when
purchased and non-negotiable certificates of deposit to be cash equivalents. There were no noncash
investing,capital and financing activities during the year.
1. HUD Deposit and Investment Restrictions
HUD requires authorities to invest excess HUD program funds in obligations of the United
States,certificates of deposit,or other federally insured instruments.
HUD also requires that deposits of HUD program funds be fully insured or collateralized at all
times. Acceptable collateralization includes FDIC/FSLIC insurance and the market value of
securities purchased and pledged to the political subdivision. Pursuant to HUD restrictions,
obligations of the United States are allowed as security for deposits. Obligations furnished as
security must be held by the Authority or with an unaffiliated bank or trust company for the
account of the Authority.
2. Risk Disclosures
a. Interest Rate Risk: As a means of limiting its exposure to fair value losses arising from
rising interest rates, the Authority's investment policy limits the Authority's investment
portfolio to maturities not to exceed two years at time of purchase.
At September 30, 2013, the Authority's deposits and investments were not limited and are
either available on demand or have maturities of less than two years.
b. Credit Risk: This is risk that a security or a portfolio will lose some or all of its value due to
a real or perceived change in the ability of the issuer to repay its debt. The Authority's
investment policy is that none of its total portfolio may be invested in securities of any single
issuer,other than the U.5.Government,its agencies and instrumentalities.
c. Custodial Credit Risk:This is the risk that in the event of the failure of the counterparty,the
Authority will not be able to recover the value of its investments or collateral securities that
are held by the counterparty. All of'the Authority's investments in securities are held in the
name of the Authority. The Authority's custodial agreement policy prohibits counterparties
holding securities not in the Authority's name.
The carrying amounts of the Authority's cash deposits were $8,616,269 at September 30,
2013. Bank balances before reconciling items were$8,830,197 at that date,the total amount
of which was collateralized or insured with securities held by an unaffiliated banking
•
institution in the Authority's name. The Authority also held$3,400 in cash on hand for a total
cash balance of$8,619,669.
24 •
CORPUS CHRISTI HOUSING AUTHORITY
Corpus Christi,Texas
NOTES TO BASIC FINANCIAL STATEMENTS
SEPTEMBER 30,2013
B- Deposits and Investments:(Continued)
3. Interest Rate Risk
Interest rate risk is the risk that changes in market interest rates m ay adversely affect the fair
value of an investment. The Authority manages its exposure to interest rate risk by purchasing
high quality,short to medium term investments.
C-Accounts Receivable: •
Dwelling rents(net of allowance for doubtful accounts of$17,743) $ 46,481
Due from Sea Breeze 173,880
Due from Hampton Port 12,316
$ 232,677
D-Due From Other Government:
U.S.Department of HUD $ 226,488
Other PHA's 3,075
$ 229,563
E-Prepaid Items:
Prepaid expenses $ 51,992
F- Capital Assets and Depreciation:
Capital asset activity for the year ended September 30,2013 was as follows:
Balance Balance
September 30,2012 Additions Deletions Transfers September 30,2013
Non-depreciable assets:
Land $ 4,487,213 $ - $ - $ - $ 4,487,213
Construction in progress 4,728,912 2,700,628 - (1,940,420) 5,489,120
Total not being depreciated 9,216,125 _ 2,700,628 - (1,940,420) 9,976,333
Depreciable:
Building and improvements 60,050,851 271,113 - 1,940,420 62,262,384
Accumulated depreciation: _ (40,878,501) - (2,547,987) - - (43,426,488)
Net buildings and improvements I9,172,350 (2,276,874) - 1,940,420 18,835,896
Equipment 1,305,149 25,433 - - 1,330,582
Accumulated depreciation: (937,401) (177,433) - - (1,114,834)
Net equipment 367,748 (152,000) - - 215,748
Net depreciable assets 19,540,098 (2,428,874) - 1,940,420 19,051,644
TOTAL $ 28,156,223 $ 271,754 $ - $ - $ 29,027,977
Depreciation expense for the year ended September 30,2013 was$2,725,420.
25
CORPUS CHRISTI HOUSING AUTHORITY
Corpus Christi,Texas
NOTES TO BASIC FINANCIAL STATEMENTS
SEPTEMBER 30,2013
G- Notes Receivable:
1. Using a portion of the proceeds from the transfer of the physical assets of the Hampton Port
Apartments to a related entity (Hampton Port, Ltd.) on December 28, 2006,Hampton Port,Ltd.
borrowed $385,110 from the Authority. The Authority records this loan as a long-term note
receivable. The promissory note was dated December 21, 2006 and stipulates that interest shall
be calculated at a rate per annum equal to the Long Term Applicable Federal Rate(as such term
is defined in the Internal Revenue Code of 1986, as amended from time to time,or any successor
statute) in effect on the date of the note. All past due principal and, to the extent permitted by
applicable law,interest on this note will,at the lenders(the Authority)option,bear interest at the
lower of 12%per annum or the highest lawful rate. The note is to be repaid in accordance with
the Limited Partnership Agreement of Hampton Port, Ltd. as cash is available for distribution. •
The entire balance of the note is due and payable on July 31, 2024. The outstanding balance at
September 30,2013 is$38,556.The accrued interest is$3,370.
• 2. On November 15,2010,the Corpus Christi Housing Authority received a promissory note in the
amount of$1,000,000 from Corban Townhomes, L.P. for the construction of a mixed-income
dwelling complex. Interest will be earned at a rate of 7.6%per annum. The loan converted to
permanent financing in April 2012 and will amortize over 30 years from that date. The entire
amount of $1,000,000 is long-term at September 30, 2013 and interest receivable at
September 30, 2013 is $188,646. Interest revenue.for the year ended September 30, 2013 was
$76,000.
H- Developer's Fee Receivable and Other:
1. Bluebonnet Gardens, a blended component unit of the Authority, entered into a development
services agreement with Sea Breeze Seniors, LP. Bluebonnet earned a fee of $1,727,296 for
services rendered in connection with the construction and development of the Project. The
developer's fee is non-interest bearing and is due in full on January 1, 2021. Payments of
developer's fee are to be made from cash flows, as defined in the partnership agreement of Sea
Breeze Seniors,LP. As of September 30, 2013, developer's fee receivable was$1,651,296. The
Authority has booked an allowance for doubtful collections receivable in the amount of$900,000,
for a net receivable of$751,296.
2. Corpus Christi Finance Corporation(CCFC),a blended component unit of the Authority, has
entered into a development services agreement with Corban Townhonaes, L.P. CCFC earned a
fee of$811,116 in connection with the construction and development of the Project. Interest
accrues at a rate of 8.0%per annum. As of September 30, 2013, developer's fee receivable was
$811,116.
•
•
26
CORPUS CHRISTI HOUSING AUTHORITY
Corpus Christi,Texas
NOTES TO BASIC FINANCIAL STATEMENTS
SEPTEMBER 30,2013
II- Developer's Fee Receivable and Other: (Continued)
Summary:
Developer's Fee Receivable
Receivable Allowance Net
Bluebonnet Gardens $ 1,651,296 $ (900,000) $ 751,296
Corpus Christi Finance Corp. 811,116 - 811,116
$ 2,462,412 $ (900,000) $ 1,562,412
I- Deferred Revenue:
Unearned ground lease payments $25,625
Prepaid rents 95
$25,720
J- Long-Term Liabilities:
Balance at Year Ended Balance at
September 30,2012 September 30,2013 September 30,2013
Current Long-term Current Long-term
Portion Portion Additions Payments Portion Portion
Notes and bonds
payable $ 347,860 $ 889,294 $ - $(147,860) $ 348,560 $ 740,734
Accrued compensated
absences 128,566 289,273 161,210 (I71,235) 122,742 285,072
Resident FSS escrows 5,244 20,975 10,918 - 9,284 27,853
$ 481,670 $1,199,542 $172,128 $(319,095) $ 480,586 $1,053,659
27
CORPUS CHRISTI HOUSING AUTHORITY
Corpus Christi,Texas
NOTES TO BASIC FINANCIAL STATEMENTS
SEPTEMBER 30,2013
K-Long-Term Debt:
Description of Debt
Fannie Mae-Note Payable/Line of Credit
On October 27,2005,the Authority entered into a revolving line of credit/loan agreement with Fannie
Mae and agreed to repay the principal sum of$1,000,000 advanced under the terms and conditions of
the loan agreement,together with interest at an adjustable interest rate, obtained by adding 175 basis
points to the three-month LIBOR, adjusted quarterly, based on such rate published in the Wall Street
Journal. The proceeds from the loan were used to acquire land associated with the development of
Sea Breeze Senior Apartments, a 4% tax credit/tax-exempt bond project. Interest was to be paid
quarterly and principal payments were scheduled to occur as the developer fee is paid,whether from
tax credit equity or cash flow from the property. The final maturity date of the loan was originally
October 27, 2010. The loan was collateralized by the assignment of the Authority's partnership
interest(through its component unit Sea Breeze GP,LLC) in Sea Breeze Seniors,LP and the pledge
of developer fee receivable associated with the development of the Sea Breeze Senior Apartments.
On August 14,2012 Fannie Mae informally accepted a proposed settlement amount of$200,000 in
full satisfaction of this note. The payment is to be made within 30 days of the formal agreement. As
of September 30,2013,the balance was$200,000.
Subsequent to year end,the note was paid in full.
Note Payable-Frost National Bank
On October 6,2003,the Authority borrowed$550,000 from Frbst National Bank to purchase land for
Bluebonnet Gardens. The note was originally due September 27, 2004. The Authority renewed the
note on June 27,2005 and June 26,2006. The note bore interest at the prime rate, and was payable
monthly. The note was due and payable in full on June 25,2007.The Authority renewed the note on
October 23, 2007 with the unpaid balance of $318,916 being due and payable in 60 monthly
installment payments. The first payment was due in November 2007 and the final maturity of the
note was October 2012. For the year ended September 30, 2013, the remaining balance was fully
repaid. The balance due as of September 30,2013 was$0.
Siemens Public Inc. - Capital Lease Payable
On June 30, 2006, the Authority entered into a Master Equipment Lease/Purchase Agreement with
Banc of America Leasing and Capital,LLC to finance the acquisition of energy savings equipment in
the principal amount up to$1,785,176 at an interest rate not to exceed 4.43%per annum. Principal
and interest are payable monthly from energy savings. The lease matures February 28 2019, and is
collateralized by the energy savings equipment. On July 29,2012, Banc of America assigned and
sold to Siemens Public Inc. all right, title and interest in this loan. As of September 30, 2013, the
total cost of assets under capital lease was $1,733,966, with accumulated depreciation of$693,585.
The remaining principal balance is$889,294.
28
CORPUS CHRISTI HOUSING AUTHORITY
Corpus Christi,Texas
NOTES TO BASIC FINANCIAL STATEMENTS
SEPTEMBER 30,2013
K-Long-Term Debt:(Continued)
Debt Maturity
Debt service requirements as of September 30,2013 were as follows:
Year Ending
September 30, Principal Interest Total
2014 $148,560 $ 36,404 $ 184,964
2015 155,277 29,687 184,964
2016 162,297 22,667 184,964
2017 169,634 15,330 184,964
2018-2019 253,526 8,504 262,030
$889,294 $ 112,592 $1,001,886
L- Other Accrued Liabilities:
Current Long Term
Retirement employee $ 34,932 $ -
Retirement loans 8,926 -
Escheat funds 13,087 -
Self-insurance liability 200,001 -
Contractor/retainage payable 226,488 -
FSS escrows 9,284 27,853
$492,718 $ 27,853
•
29
•
CORPUS CHRISTI HOUSING AUTHORITY
Corpus Christi,Texas
NOTES TO BASIC FINANCIAL STATEMENTS
SEPTEMBER 30,2013
M- Operating Leases:
• The Authority leases office equipment under numerous non-cancelable operating leases expiring m
various years through 2015.
The following is a schedule by year of the future minimum lease payments for the non-cancelable
operating leases:
Year Ending
September 30, Principal
2014 $ 35,747
2015 24,866
$ 60,613
Rental expense related to these operating leases was$40,452 for the year ended September 30,2013.
N- Annual Contributions by Federal Agencies:
Annual Contributions Contract FW-1256
Pursuant to the Annual Contributions Contract, HUD contributes an operating subsidy approved in
•the operating budget HUD operating subsidy contributions for the year ended September 30, 2013
were$6,295,111. Additional contributions for capital activities totaled$3,282,852.
Annual Contributions Contract FW-4046
Housing Choice Voucher (Section 8) programs provide for Housing assistance payments to private
owners of residential units on behalf of eligible low to very low-income families. The program
provides for such payments with respect to existing and moderately rehabilitated housing covering the
difference between the maximum rental on a dwelling unit, and the amount of rent contribution by a
participating family and related administrative expense. The Authority is also eligible to receive
reimbursement of preliminary expenses prior to lease up. The Authority currently participates in a
disaster program for hurricane Ike clients(DHAP-IKE).
30
CORPUS CHRISTI HOUSING AUTHORITY
• Corpus Christi,Texas
NOTES TO BASIC FINANCIAL STATEMENTS
SEPTEMBER 30,2013
N- Annual Contributions by Federal Agencies: •
Annual Contributions Contract FW-4046(Continued)
HUD contributions for these activities for the year ended September 30,2013,were$8,790,144.
0- Defined Contribution Pension Plan:
The Authority provides benefits for all its full-time employees through a defined contribution plan
entitled "The Housing Renewal and Local Agency Plan". The plan is administered by ADP
Retirement Services. In a defined contribution plan, benefits depend solely upon the amounts
contributed to the plan plus investment earnings. The Board of Commissioners for the Authority is
authorized to establish and amend benefit plans. There is no requirement for employee contribution
to the plan;however, employees are encouraged to contribute a percent of gross income to the plan
each pay period. Contributions are after-tax payroll deductions. Each pay period the Authority
contributes to the plan,7.5%of the employees' gross compensation. Employees become fully vested
after one(1)year of continuous employment. Members who terminate employment after one year of
credited service may leave their contributions on deposit and receive monthly retirement benefits at
age 62 or reduced benefits as early as age 55 or they may to withdraw entire amount.
The Authority's total gross payroll for the fiscal year 2013 was $3,638,936 and the Authority's and
employees'contributions to the plan were$236,888 and$171,920,respectively.
P- Economic Dependency:
The Authority received approximately 83%of its revenues from HUD during fiscal year 2013.If the
amount of revenues received from HUD falls below critical levels,the Authority's reserves could be
adversely affected.
Q- Contingencies:
Grants
The Authority is subject to possible examination made by grantor agencies who determine
compliance with terms, conditions, laws, and regulations governing other grants given to the
Authority in the current or prior years. Costs charged to the respective grant programs are subject to
audit and adjustment by the grantor agencies; therefore, to the extent that the Authority has not
complied with the rules and regulations governing the grants,refunds of any money received may be
required and the collectability of any related receivable may be impaired. In the opinion of the
Authority, there are no significant contingent liabilities relating to compliance with the rules and
regulations governing the respective grants; therefore, no provision has been recorded in the
accompanying basic financial statements for such contingencies.
31
CORPUS CIIRISTI HOUSING AUTHORITY
Corpus Christi,Texas
NOTES TO BASIC FINANCIAL STATEMENTS
SEPTEMBER 30,2013
Q- Contingencies:(Continued)
• Developer's Fees Receivable
Bluebonnet Gardens,the sole member of Sea Breeze GP, LLC, entered into an agreement with Sea
Breeze Seniors, LP, a related organization. According to the development agreement, Bluebonnet
Gardens was expected to earn a fee of$1,727,296 for services rendered in connection with the
construction and development of the Sea Breeze Seniors Apartments. The developer's fee was earned
on the percentage of completion of the project and the performance of the development services. If,
on completion of the construction,the developer's fee had not been paid in full, Sea Breeze Seniors,
LP was to pay to the developer an amount from available net cash flow equal to the difference
between the total developer's fee and the amount actually paid to the developer, plus interest, in
accordance with the partnership agreement. The developer's fee shall be paid in full no later than
January 1,2021.The construction of the Sea Breeze Seniors Apartments was completed in May 2008.
As of September 30, 2013, cumulative developer's fee earned by Bluebonnet Gardens for the Sea
Breeze Seniors Apartment Project totaled$1,727,296,of which$1,651,296 is a receivable from Sea
Breeze Seniors, LP. The developer's fee is subject to offset and reduction as provided in the
partnership agreement upon the occurrence of certain events. Management of the Authority estimates
that $900,000 of the $1,651,296 receivable will not be collected since certain project criteria and
timelines were not met. This amount is recorded as an allowance for uncollectable accounts. The
allowance is evaluated annually by the Authority.
R- Conduit Type Debt:
Public Housing Program: Debt related to the original acquisition and early modernization of the
public housing developments is funded, guaranteed, and serviced by HUD. There is no debt or
pledge of faith and credit on the part of the Authority. Accordingly,this debt has not been recorded
in the financial statements of the Authority. Additionally, HUD no longer provides debt service
infonnation to the Authority.
Other Business Activities: The Authority's component unit, Sea Breeze, a nonprofit public housing
facility corporation,issued Multifamily Housing Revenue Bonds, Series 2006, dated March 1, 2006,
in the aggregate principal amount of$7,855,000 for the purpose of making a loan pursuant to a loan
agreement to Sea Breeze Seniors, LP, a related organization, to acquire and construct a multifamily
residential development.The bonds are limited obligations of Sea Breeze,the issuer,and are secured
by the financed improvements.The bonds are payable solely from the project revenues arising from
the pledge and assignment of the payments on the underlying loan.The bonds are conduit debt and do
not constitute a debt or pledge of the faith and credit of the Authority, the State, or any political
subdivision. Accordingly, the bonds are not recorded as liabilities in the accompanying financial
statements. As of September 30, 2013, the outstanding principal amount on the bonds was
$7,615,000.
32
CORPUS CHRISTI HOUSING AUTHORITY
Corpus Christi,Texas
NOTES TO BASIC FINANCIAL STATEMENTS
SEPTEMBER 30,2013
S- Leasing Activities(as Lessor): •
The Authority is the lessor of dwelling units mainly to low-income residents. The rents under the
leases are determined generally by the residents'income as adjusted for eligible deductions regulated
by HUD,although the residents may opt for a flat rent. Leases may be canceled by the lessees at any
time.The Authority may cancel a lease only for cause.
Revenues associated with these leases are recorded in the financial statements and schedules as
"Rental revenue". Rental revenue per dwelling unit generally remains consistent from year to year,
but is affected by general economic conditions that impact personal income and local job availability.
The Authority(landlord) and Sea Breeze Seniors,-LP (tenant) (a related organization) entered into a
ground lease on March I,2006,whereby the Authority agreed to lease land,with a recorded cost of
$967,352, to Sea Breeze Seniors, LP for the construction and operation of the Sea Breeze Seniors
Apartments. The annual rent will be in the amount of$1,000 and is payable only to the extent of
available net cash flow. If available cash flow is insufficient to pay the ground lease the annual rent
will be accrued. The term of the ground lease is 75 years. During the term of the lease, the
improvements and equipment shall be owned by Sea Breeze Seniors, LP. Upon such expiration or
termination of the lease,the property shall become the sole property of the Authority. The Authority
accrued$1,000 in 2013 for the unpaid ground lease.
The Authority (landlord) and Hampton Port, Ltd. (tenant) (a related organization) entered into a
ground lease on June 19,2006, whereby the Authority agreed to lease land,with a recorded cost of
$88,304, to Hampton Port, Ltd. for Hampton Port, Ltd.'s development and rehabilitation of the
Hampton Port Apartments. Under the ground lease, the Authority also agreed to transfer the
improvements to the Hampton Port Apartments to Hampton Port, Ltd. for $1,700,000, which was
equal to the appraised value of the improvements existing on the premises as of June 19, 2006.
Commencing on the first anniversary date of the lease,Hampton Port, Ltd. shall pay the Authority,
solely from net cash flow, an annual rent payment for the land in the amount of$33,000. If the net
cash flow is insufficient in any year, the unpaid portion of the rent shall accrue. The term of the
ground lease is 75 years. During the term of the lease,the improvements and the equipment shall be
owned by Bampton Port, Ltd. Subject to the terms and conditions of all applicable requirements in
regard to low-income ho using units,upon such expiration or termination of the lease,the premises,
the improvements, and the equipment on the premises shall become the sole property of the
Authority. The transfer of the physical assets of the Hampton Port Apartments to Hampton Port,Ltd.
occurred on December 28,2006.
Additionally, under an "Option and Right of First Refusal" agreement, the Authority has the option
and has been granted the right of first refusal to acquire the improvements located on the land(subject
to the ground lease) hum Hampton Port,Ltd. subject to the consent of the limited partners. The term
of both the option and the right of first refusal shall commence one day after Hampton Port,Ltd. has
completed a fifteen (15) year "compliance period" under Section 42 of the Internal Revenue Code.
The term of the option and right of first refusal is expected to commence on January 1,2023. The
Authority received a payment of$33,000 in 2013 from Hampton Port,Ltd.for the ground lease.
33
•
CORPUS CHRISTI HOUSING AUTHORITY
Corpus Christi,Texas
NOTES TO BASIC FINANCIAL STATEMENTS
SEPTEMBER 30,2013
T- Self-Insurance:
The Authority has a self-insured health program which covers all eligible employees. The program
carries re-insurance for claims over $45,000 per year, after a minimum aggregating specific
deductible of$40,000, up to a maximum lifetime reimbursement of $1,955,000 per person. The
estimated liability for claims incurred but not paid as of September 30,2013 was$200,001.
U- Thanksgiving Homes:
As of September 30, 2013,the Authority's investment in capital assets, net of related debt, includes
$768,458 for the Thanksgiving Homes project,which consists of land purchased for$94,000 in 2002
and land improvements of$674,458. The land improvements represent costs for sewer lines, curbs,
gutters, sidewalks,and other costs to ready the land for building homes to be later sold to low income
families. Due to the lack of qualified homebuyers,homes were not built on the site,
V- Related Party Transactions:
Sea Breeze Seniors,LP
The Authority has made payments on behalf of a related organization, Sea Breeze Seniors, LP for
development and operating expenses. As of September 30, 2013, Sea Breeze Seniors, LP owed
$173,880 to the Authority for reimbursement of expenses.
. See also Note Q for discussion of the ground lease between the Authority and Sea Breeze Seniors,
LP.
Bluebonnet Gardens,the sole member of Sea Breeze G P,LLC entered into a development services
agreement with Sea Breeze Seniors,LP,a related organization.Bluebonnet Gardens should earn a fee
of$1,727,296 for services rendered in connection with the construction and development of the Sea
Breeze Seniors Apartments. The developer's fee is due January 1, 2021. Developer's fee revenue is
discussed further at Note Q.
Bahia Properties, a component unit of the Authority,provides property management services to Sea
Breeze Seniors, LP. Bahia earns a monthly management fee of 5% of the total gross monthly rent
collected for the previous month. For the year ended September 30, 2013, Bahia Properties earned
$62,955 of property management fees for Sea Breeze Seniors,LP.
On December 28,2006,the Authority executed a transfer of the physical assets of the Hampton Port
Apartments,excluding the land,to Hampton Port,LTD,a related entity.As mentioned in Note S,the
Authority maintains ownership of the land and leases the land to Hampton Port, LTD through a
ground lease.
34
CORPUS CHRISTI HOUSING AUTHORITY
Corpus Christi,Texas
NOTES TO BASIC FINANCIAL STATEMENTS
SEPTEMBER 30,2013
V- Related Party Transactions:(Continued)
Hampton Port,LTD
The transfer of the physical assets of the Hampton Port Apartments to Hampton Port,Ltd., a related
organization, was made with$1,700,000 to be paid to the Authority.Prior to the transfer,Hampton
Port,Ltd.paid the Authority$170,000 in June 2006 as a 10%down payment for the acquisition of the
physical assets of the Hampton Port Apartments. On December 28, 2006, the date of closing, the
remaining balance of$1,530,000 was distributed as follows:$318,286 was used to pay off an existing
Authority loan, $385,110 was loaned by the Authority to Hampton Port,Ltd. as an interim loan(see .
Note F),and$826,604 of cash was deposited into an escrow account by the title company based on an
escrow agreement,pending settlement of litigation between the Authority and HUD.
Pursuant to the litigation, the Authority, HUD, and an escrow agent, entered into an escrow
agreement dated December 28, 2006,whereby$1,001,400 of the proceeds were to be held in escrow
by the escrow agent. The Authority owed an additional$173,297 to the escrow account so that the
escrow balance would equal the required$1,001,400. hi January 2009, a related entity, Hampton
Port,Ltd. paid funds in the amount of$173,297 to the escrow agent on behalf of the Authority to
bring the escrow balance to $1,001,400. In April 2009, the Authority received$743,079 from the
escrow account in settlement of the litigation, plus interest of$361. HUD received the remaining
amount of$258,321. Due to the settlement, the Authority recognized a gain of$743,440 on the
transfer of the physical assets to Hampton Port,Ltd. during the year ended September 30, 2009. As
of September 30,2013,the Authority has repaid all amounts owed to Hampton Port,Ltd.
Bahia Properties, a component unit of the Authority, provides property management services to
Hampton Port,Ltd. Bahia earns a monthly management fee of 8%of the gross rent potential.For the
year ended September 30, 2013,Bahia Properties earned $55,050 of property management fees for
Hampton Port,Ltd.
As discussed in Note 0,the Authority has a note receivable from Hampton Port,Ltd.in the amount of
$38,556 all of which is noncurrent as of September 30,2013.
As discussed in Note G, the Authority has a note receivable from Corban Townhomes, L.P in the
amount of$1,000,000 all of which is noncurrent as of September 30, 2013. Subsequent to year end,
management of Corban Townhomes,L.P was transferred to Bahia Properties.
W-Commitments: The Authority is engaged in a modernization program funded by HUD. In this
regard, the Authority has entered into construction-type contracts with approximately $2,121,090
remaining until completion.
X Subsequent Events:Subsequent events have been evaluated through June 20,2014,which is the date
the financial statements were available to be issued; and there are no subsequent events requiring
disclosure other than the payment of the Fannie Mae note payable described in note K and the transfer
of management of Corban Townhomes,L.P described in note V.
35
SUPPLEMENTAL INFORMATION
•
CORPUS CHRISTI HOUSING AUTHORITY
Carpus Christi,Terns
COMBINING SCHEDULE OF NET POSITION
SEPTEMBER 30,2013
DIOAP-IKE
Housing Disaster
Low Rent Choice Other Business Relief
Public Housing Vouchers Activities Program COCC Eliminations Total 2013
ASSETS
Current assets
Cash arid cash equivalents,unrestricted S 7,295,084 $ 120,575 $ 372,334 $ - $ - S - S 7,717,993
Cash and cash equivalents,resoicted 214,958 616,718 - - - - 831,676
Accrued interest receivable 1,160 - - - - - 1,160
Accounts receivabk,net of allowance 46,481 - 61,591 - 124,598 - 232,677
Due from other governments 226,488 3,075 - - - - 229,563
Due from/to other programs - - 1,346,113 797,742 (2;143,855)
Inventories,net ofobsolcscescs 85,620 - - - - 85,620
Prepaid expenses 51,751 - - - 241 - 51,992
Total current assets 7,921,542 740,368 1,780,045 - 922,581 (2,143,855) 9,220,681
Noncurrent assets
Other a•4h
Notes and interest receivable - - 1,230,572 - - - 1,230,572
Developer's Fee receivable and other - - 1,562,412 - - - 1,562,412
Total other assets - - 2,792,984 • - - - 2,792,984
Capital assets
Not being depreciated 7,650,449 - 2,389,581 - - - 10,040,030
Depreoiabk,net 18,845,287 53,023 - - 89,637 - 18,987,947
Total capital assets,net 26495,736 53,023 2,389,581 - 89,637 - 29,027,977
Total noncurrent assets 26,495,736 53,023 5,182,565 - 89,637 - 34820,961 ,
Total assets 34,417,278 793,391 6,962,610 - 1,012,218 (2,143,855) 41,041,642
LIABILITIES •
Current liabilities
Vendors and contractors payable 506,861 - - - 4,947 - 511,808
Accrued wages/taxes payable 51,822 8,036 1,489 - 27,876 - 89,223
Accrued compensated absences 55,871 21,607 - - 45,264 - 122,742
Due to other programs - 44,166 2,099,689 - - (2,143,855)
Due to local gaveransents for 91 LOT 125,120 - - - - - 125,120
Deferred revenue 95 - 25,625 - - - 25,720
Notes and toads payable 148,560 - 200,000 - - - 348,560
Other accrued liabilities 474,795 17,923 - - - - 492,718
Totalcurrent liabilities 1,363,124 91,732 2,326,803 - 78,087 (2,143,855) 1,715,891
Current liabilities payable from restricted
assets
Resident security deposits 229,312 - - - - - 229,312
Noncurrent liabilities
Notes and bonds payable 740,734 - - - - - 740,734
Accrued compensated absences 129,758 50,185 - 105,129 - 285,072
Other accrued liabilities - 27,853 - - - - 27853
Total noncurrent liabilities 870,492 78,038 - - 105,129 - 1,053,659
Total liabilities 2,462,928 169,770 2,324803 - 183,216 (2,143,855) 2,998,862
NET POSITION
Invessted in capital assets,net of related
debt 25,606,442 53,023 2,185,428 - 89,637 - 27,934,530
Restricted - 538,490 - - - - 538,490
Unrestricted 6,347,908 32,108 2,450,379 - _ 739,365 - 9,569,76
Total net position S 31,954,350 $ 621621 $ 4,635,807 ,$ _ - S 829,002 $ - $ 38,042,780
•
See report of independent auditors
36
r
CORPUS CHRISTI HOUSING AUTHORITY
Corpus Christi,Texas
COMBINING SCHEDULE OF REVENUES,EXPENSES,
AND CHANGES IN NET 1osrrioN
FOR THE YEAR ENDED SEPTEMBER 30,2013
DHAP-IRB
Housing Other Disaster
Low Rent Choice Business Relief
Public Housing Vouchers Activities Program COCC Eliminations Total 2013
Operating revenues:
Rental revenue $ 2,897,890 S - $ - $ - S - 6 - $ 2,897,890
Fee revenue - - - - 1,173,487 (1,773,487) -
HUD grants 6,877,335 8,753,077 - 15,114 - - 15,645,526
Other revenue 231,095 309,481 148,351 - 1,100 - 690,027
Total operating revenues 10,006,320 9,062,558 148,351 15,114 1,774,587 (1,773,487) 19,233,413
Operating expenses:
Adtninist.ation 3,156,435 699,602 81,577 - 1,391,652 (1,564,591) 3,764,675
Asset management fee 208,896 - - - - (208,896) -
Tenant services 319,940 - - - - - 319,940
Utilities 1,644,088 - - - - - 1,644,038
Ordinary maintenance and operations 3,044,813 1,540 6,869 1,794 - - 3,055,016
Protective services 33,245 - - - - - 33,245
Insurance 585,186 7,760 769 - 23,513 - 617,228
General expenses 356,161 - - - - - 356,161
Housing assistance payments - 8,334,483 - 13,320 - - 8,347,803
Depreciation _ 2,658,316 21,336 - - 45,768 - 2,725,420
Total operating expenses 12,007,080 9,064,721 89,215 15,114 1,460,933 (1,773,487) 20,863,576
Operating income(less) (2,000,760) (2,163) 59,136 - 313,654 - (1,630,133)
Nonoperating revenues(expenses) -
Interest revenue,unrestricted • 6,212 74 14 - - - 6,300
Mortgage interest revenue - - 79,629 - - - 79,629
Interest expense (42,829) - (23) - - (42,852)
Fraud recovery - 15,017 - - - - 15,017
Other expense - (287,528) - - - - (287,528)
Gain(loss)on disposition of capital
assets 3j025 - - - - - 3,025
Total nonopesating seventies (33x5921 (272,437) 79,620 - - - (226,409)
Income(loss)before contributions (2,034,352) (274,600) 138,756 - 313,654 - (1,856,542)
Capital contributions 2,700,623 - - - - - 2,700,628
Increase(decrease)in net assets 666,276 (274,600) 133,756 - 313,654 - 344,086
Net assets,beginning ofyeer 31,288,074 898,221 4,497,051 - 515,348 - 37,193,694
Net assets,end of year $ 31,954,350 S 623,621_ $ 4,635,807 S- , S 829,002 S - $ 38,042,780
See report of independent auditors
37
CmpsrChristi Haulm Authority
CORPUS CHR13r1,TX
Entity Wide 8alanee Sheet Seam ery
Submimian Type:Audited/A-133 Fiscal Year End:09/10/2013
14.871
Project Total dousing 1Busiess 14.IKE DHAP- COCC Subtotal 0.64 Total
Chloe Activities IKE
_ Vouchers
111 Cash-UnresulGed $7,295,084 $120,575 $372,334 $0 57,787,993 50 $7,787,993
112 Cash-Res4kied-Modernization and oovelopmenl S0 $a $0 $0 $0 $0
113 Cash-Other ResbkJad SO 5818,718 $0 $816,718 $0 5818,718
114 Cash-Tenant Security Deposits $214,958 $0 $0 $214,956 50 5214,958
115 Cash-Resukted for Payment of Current Uablhias $0 50 so 50 SO 50
100 Total Cash $7,510,042 $737,293 $372,334 $0 $0 58,819,869 50 58,619,669
121 Accounts Receivable-PHA Projects SO $3,075 50 $3,075 $0 $3,075
122 Accounts Receivable-HUDOlherProjects $226,488 $0 SO $228,488 $0 $228,488
124 ACcounla Receivablle-Other Govonrnant 50 So SO $0 - $0 $0
125 Accounts Receivable-Miscellaneous $0 50 $61,598 5124,598 $188,186- 50 $186,198
-
128 Accounts Receivable-Tenants $43,958 $0 $0 $43,958 $0 $43,958
e-
128.1 AltowMancefor DoubtAcwunts-Tenants -512,948 $0 80 $12,948 $0 812,948
126.2 ABwnncofor0oubi6d Accounts-Other 50 50 SO 50 $0 SO $0
T
127 Notes,Loans,&Mortgages Receivable-Current $0 SO $0 $0 $0 $0
128 Fraud Recovery $20,266 SO 50 520,286 SO 520,268
128.1 AtirMancefor Doubtful Accents-Fraud 44,795 SO $0 $4,795 $0 $4,795
120 Accrued Interest Receivable $1,180 SO $0 50 $1,160 $0 $1,180
120 Total Recehabfes,Nat of ASowanoes for Doubtful Accounts 5274.129 $3,075 $81,898 50 5124,598 $463,400 $0 $463,400
131 Investments.Unrestricted $0 50 50 50 SO $0
132 InvesbnmUs-Reshicied SO $0 • SO SO $0 $0
135 Investments.Restricted for Payment 01 Current Lhhillty $0 SO SO SO $0 SO
142 Repaid Expenses end Other Assets 551,151 SO $241 561,992 $0 $51,992
143 Inventories $90,128 $0 $0 $90,128 SO $90,126
-
143.1 Mtowance for Obsoletelnveclades -54,508 50 $0 $4,508 $0 $4,508
144 Inter Program Due From $0 $0 51,346.113 5797,742 $2,143,855 -$2,143,855 $0
146 Assets Held for Ms $0 $0 $0 50 SO $0
150 Total Currant Assets $7,921,542 $740,368 $1,780,045 $0 5922,585 $11,364,538 42,143,855 $9,220,681
•
181 Land 52,101,786 SO $2,385,428 $0 $4,487,213 $0 $4,487,213•
162 Buildings $02,179,782 $0 $0 582,179,782 $0 $82,179,782
183 Funture,Equipment&Machinery-Dwellings $355,229 50 $0 $355229 S0 $358,229
164 Forn8Om,Equipment Machinery-Administration $429,787 $1&3,659 $381,807 •$976,353 SO $975,353
165 leasehold leprarements $0 $0 $0 $0 $0 $0
166 Accumulated Depretblion -544,110,491- -$110,636 -5292,270 544,622,397 SO $44,522,397
^
167 Canstructton in Progress $5,546,684 $0 50.153 50 56,652,017 $0 $5,562,817
168 lnfraslructure SO - SO SO $O SO 50
160 Total CapllalAssets,Net ofAccumulated Depmda9an $28,495,736 853623 $2,389,581 $0 $89,637 529,027677 SO $29,027,977
171 Nates,Loans and Mortgages Receivable-Non-Cunenl $0 - SO 01230,572 SO 51,230,572 $0 $1,230,572
172 Notes,Loam,S Mortgages Receivable-Non Current-Past $O SO $0 $0 $0 SO
173 Grants Receivable-Non Currant SO $0 SO SO $0 $0
174 Ober Assets $0 SO $1,562,412 S0 $1,582,412 SO 51662,412 •
1761rweshnenta h Joint Ventures $0 SO 50 SO $0 SO
180 Total Non-Cerent Assail $26,495,736 $53,023 $6182,885 SO $89,637 $31,820,981 $0 $31,820,951
190 Tafel Assets $34,417,278- $793,961 $8,982,610 $9 $1,012,218 $43,105,497 -$2143,855 $41,041,642
38
14,871
Project Total Housing 19usines
tess 14.IHEDHAIHEP- COCCI Subtotal ELSE Total
Chdce AWvB
_ Voudnas _
311 Bank Overdraft $0 $0 $6 S0 $0 $0
312 Accents Payable0o900ays $500,865 $0 $4,947 $511,808 $0 $511,808
313 Accounts Payable>90 Days Past Due 50 $0 SO 50 $0 SO
321 Accrued Wage/Payroll Taxes Payable $51,822 18.036 01,489 $27,810 $89,223 $0 $89,223
322 Accrued Caapensafed Absences-Current Patton $55871 $21,607 $45,264 $122,742 SO $122,742
_ -
324 Aoaued Contingency LlabOly $0 SO $0 SO SO SO
325 Accrued Interest Peyabl S0 $0 SO SO SO SO
331 Accounts Paydde-HUD PHA Programs SO $O $0 $d SO $0
332 Account Payable-PHA Pro*ecls 50 SO $0 SO S0 $O
333 Accounts Payable-Other Govermei t $125,120 $0 50 $125120 50 5125120
341 Tenant Seamy Deposits $229,312 50 s0 $228312 r $0 $228312
342 Deferred Rwaajes $95 $O $25,625 SO $25720 $0 $25720
343 Current Portion of longterm Debt-Capital $148,560 SO $200000 SO $348580 SO $348560
344 Current Patton of Longterm Debt-Operating Elorroretugs $0 SO SO 50 $0 $0
345 Other Outmost Uoblllas $474,795 $17,523 SO $492,718 SO $492,718
346 Accrued Liabilities-Other $0 $0 $0 $0 SO $0
347 Oda Program-Due To $0 $44,186 $2,099,689 $0 $0 $2,143,855 -$2143,855 $0
345 Loan Uab�-Current 50 SO 50 $0 50 $0
316 Total Current Liabilities 51,592,436 391,732 02,328.803 SO $78,087 $4,089,058 -$2,143,853 51,945,203
i.351 Lag-lean Dab!,Net of Currant-Capeal Projects/Mortgage $740,734 $0 $0 SO $740734 SO 5740734
352 Log-brei Debt,Net of Current-Operating Borroo9sgs 50 50 $0 SO S0 SO
353 Non-curerilJabWes-Olean SO $27,853 $0 $27,853 $0 $27,853
354 Accrued Compensated Absences-Non Current $129,768 $50,185 $105,129 $285,072 $0 $285,072 •
355 Wan UabSly-Nen Current $0 $0 SO 50 $0 10
358 FASB5 Whales $0 $0 SO 50 SO 00
357 Accrued Pension and OPEB L3ah%'ales $0 $0 $0 50 $0 SO
350 Total Non-Oanrint Liabilities $870,492 $78,038 SO SO $105,129 $1,053,059 $0 $1,053,659 •
300 Total L1eb6800 $2,402,928 $189,770 $2,328,803 $0 $183218 55,142,717 -$2,143,655 $2,986,882
5061 Invested h Cep4et Asaeta,Net of Related Debt $25,606,442 $53,023 $2,195,426 $88637 $27,934530 50 527,934,530
509.2 Fund Balance Reserved SO SO
511.2 Unreserved,Doot paled Fund Balance $0 $0
511,1 Restricted Net Assets 50 $538,490 50 5538,490 $o $538,490
512.1 Unrestricted Net Assets 56,347,900 932.108 52,450,379 SO 5739,365 59,569,160 50 59,569,760
512.2 Unreserved.Undesignated Fund Balance SO SO
513 Total Eq96541'let Asset. $31,954,350 $623,621 54.635,807 $0 $829,002 $38,042,792 SO $38,042,780
900 Total Uabliess and EquAyMet Assets $34,417,278 $793,391 $9,982,610 50 51,012218 $43,185,497 42,143,955 $41,041,642
39
Cones Christi Hoosins Aeltuity
CORPUS CR93T1,7x
Entity Pack linnet and Expense senseery
Su5edssion Type:Andital/A-I33 Fiscal Year Pen 09/3017013
14.871
• Prated Told Housing 1Buslnesa t43KE DHAP- COLO Subtotal ELIM Tola1
Choke Activities IKE
_
your/ars
_ _
(70300 Nel Tenant Rental Revenue $2,997,890 $0 $0 $2,697,895 $0 $2,897,890
70400 Tenant Revenue-Otter $148,518 $0 $0 $148,518 $0 $148,518
70500 Total Tenant Revenue $3,048,408 $0 $0 SO SO $3,046,408 $0 53,046,408
70800 HUD PHAOperalkg Grants 66,877,335 58,753,077 $15,114 50 $15,845,528 $0 $15,646,520
70610 Capital Giants $2,700.828 $O $o $2,700,628 $0 $2,700,628
70710 Management Fee $1,209,138 $1,209,136 -$1,299,136 $0
70720 Asset Management Fee 5208,896 5208,098 -5208,996 SO
70730 Book Keeping Fee 5285,455 5265,455 4285,455 $0
70740 Front Line Service Fee $0 $0 $O $0
?0750 Other Fees $0 $0 S0 SO
70700 Told Fee Revenue $1,773,487 $1,773,487 -$1,773,497 $0
-
70800 Other Gavereoet Grants $0 S0 $0 $0 $0 $0
71100 Investment Inane-Unrestgeted $6,292 $74 $14 $0 $8,300 SO $6,300
T
71200 Mortgage Mecca!Income $0 $0 $79,629 SO 519,620 50 879,629
71300 Proceeds tom Dlsposl6at of Assets lietd forSan SO $0 $D $0 SO $0
71310 Cost of Sale of Assets $0 SO $0 $0 $0 $0
71400 Fraud Recovery SO $15,017 $0 $15,017 SO $15,017
71500 Other Revenue $82,577 5309,481 $148,351 51,100 5541,609 $0 $541,809
71800 Gain or Loss on Sate of Capital Assets $3,025 $0 $0 $3,025 SO 53,025
720001nveeyneetInman-Restl0led SO $0 $0 50 SO 50
70000 Tota Revenue $12,716,185 98,077,049 $227,994 $15,114 $1,774,587 $23,511,629 -$1,773,487 $22,038,042
91100 Administrates°Salaries $999,090 5333,136 $46,502 $819,480 $2,199,118 $O $2,199,118
91200 Abetting Fees $56,812 $3,720 $9,408 $0 $69,940 SO $69,940
91300 Management Fee 81,297,705 $91,431 S0 $1,299,136 41,299,138 50
91310 Book•keepin9 Feet $156,690 9108,785 $266,465 -$265,455 90
91400 Advertising and Merileting $10,823 $414 $7,225 518,262 $5 $18,262
91500 Employee Benefit contribution-Administrative $320,492 $99,729 $7,224 $355,973 5783,418 $0 $783,418
91600 OBke Expenses 5204,986 562,402 $1,927 $167,401 5438.605 50 9438.696
91700 Legal Expense $14,495 50 $18516 931,115 $62,128 50 562,126 ,
91900 Travel $8,920 $5 $0 $10,448 $17,373 SO $17,373
91810 Allowed Overhead S0 $0' $0 $0 $0
91900 Other $177,742 $0 SO 90 $177,742 $0 $177,742
..
91000 Total Operating Admttistra5ve $3,158,435 $699,602 $81,577 $0 $1391,852 $5,329,288 -$1,584,5991 $3,764,876
g
. 1
92000 AssetMoeagament Fee $209,896 $0 $208,898 -$209,896 $o
92100 Tenant Servims-Safeties $154,330 $0 50 5154,330 $0 $154,330
92200 Relocatico Coss $40,844 SO $0 $40,644 $0 $40,844
92300 Employee Benefit Contributions-Tenant Services $89,258 $0 $0 $68,258 50 508,268
92400 Tenant Services-Other 559,708 S0 SO 556,708 SO $59,708
-
92500 Total Tenant Services $319,940 S0 $0 50 SO 3319940 $0 $319,940
1
40
14,871
Protect Total Housing 1 Business 14.IKE NW-
Choke �� Subtotal 1391 Total
AndvWes IKE
_ VmC1TS . _ -
93100 Water $828,593 $0 $0 $828,593 SO $828,503
93200 Els*Nicly $196,110 $0 $0 $196,110 $0 $196,110
93300 baa $138,096 $0 SO $138,096 SO $138,098
93400 Fuel - $0 _ $0 - - - SO $0 $0 $0
H -
93500 Labor $0 $0 $0 $0 $0 $0
93600 Sewer $481,209 $0 7 SO $451,289 $0 $401,289
93700 Employes Seam ContrOnr5ons-Iltli8es SO 90 SO $0 SO SO
83000 Other U65tlea Expense ' $0 $0 $0 •$0 SO $0
T
93000 Total Glides $1,644,0881 50 $0 $0 $0 _ $1,644,088 $0 91,644,088
94100 Ordinarylda5enanea and Op0(8110ns-Labor $983,273 $0 $8,491 SO 0989,764 $0 $989,764
94200 Ordinary Mairtenanca and Operations-ilolsdata and Other $726,969 $0 $1,704 $0 $728,763 $0 $720,763
04300 Ord9saryilaitenance and Operations Contracts $845,977 $1,540 $0 $847,517 $9 $847,517
64500 Employee Benoit Ce klo6lons-Ordinary Maintenance $458,594 $0 $376 $0 $468,972 $0 $488,972
94090 Total Mablenance $3,044,813 $1,540 $8,869 $1,794 $0 93,055,010 SO $3,055,016
•
-
95100 ProtectMt Services-Labor SO $0 $0 $0 s0 SO
95200 Protective Services-Other Contract Costs $21,641 $0 $0 $21,641 50 $21,841
95300 RWatdve Services-OUar $11,404 SO $0 $11,404 $0 $11,404
95500 Employee Benefit Contributions-Protective Services' $0 S0 SO $0 $0 $0
95000 Total Prden8,8 Services 533,245 $0 $0 SO $0 $33,245 SO $33,245
66110 Property Murano 5409,645 $0 SO $409,645 SO 0409,615
98120 Liability Insurance $127,866 $0 $0 $127,686 $0 $127,686
66130 Wodrrne*Compensation $38,230 $7,750 $769 $19,187 $65,946 $0 $85,946
96140 W Other Ins/ranee $9,645 $0 $4,326 $13,971 SO 513,071
96100 Total Sisurance Premiums $585,186 $7,760 $769 $0 $23,613 $817,228 $0 $617,228
96200 Other General Expenses $0 S0 SO $0 $0 _ $0
- _ -
96210 Compensated Absences $181,210 $0 50 9181,210 $0 $180,210
96300PaymenlslnLieudTaxes $125,120 $0 $0 $125,120 SO $125,120
96400 Bad debt-Tenant Rents $69,531 SO $0 $69,831 $0 $69,831
-
98500 Bad debt-Mortgages $0 $0 SO $0 $0 50
96600 Bad debt-Other $0 J $9 $0 $9 $9 $o
96800 Severe=Expense $0 SO $0 $0 $0 S0
-
96000 Tote,Other General Expenses $358,161 S0 SO SO SO $359,101 $0 $358,161
96710 Inlerestd Mortgage(or Bonds)Payable $42,829 $0 $0 $42,829 $0 $42,829
98720 Interestoa Motes Payable(Ston and Long Term) SO SO 523 $0 $23 SO $23
96730 Mlortrzeyon of Bond Issue Costs SO SO S0 $0 50 $0
98700 Total Interest Expense and gmortkalon Cost $42,829 $0 $23 $0 $0 542,852 $0 $42,852
96900 Total Operating Expenses $9,391,593 8709,902 509,238 $1,794 $1,415,165 $11,606,692 -$1,713,487 $9,833,205
_ - 1- - -
97000 Excess o(Opera9rg Revenue over Operating Expanses $3324,502 $8,368,747 $138,756 $13,320 5350,422 $12,204,837 $0 $12,204,837
41
14.871 7
Housing 1Business 14.8(EOHAP-
PrajeelTolal Ctsolee &Mies IKE COCO Subtotal ELBd Total
Vouchers _
97100 Extraordinary Malntenanee $0 $0 $0 $0 $0 $0
97200 Casually Looses-NoncapOaOzad $0 $0 $0 $0 $0 $0
l
97300 Housing Assistance Payments $0 $6,334,463 $13,320 $0 $8,347,003 $0 $6,347,803
97350 HAP Portab6y-In $0 $287,528 SO $287,528 $0 $287,528
97400 Depreda0oe Expense $2,658,318 $21,336 $45,768 $2,726,420 $0 $2,726,420
97500 Fraud Losses 50 50 , $0 SO SO $01. y
97600 Candid Outlays-Governmental Funds 0 0
97700 Debt Prin pal Payment-Governmental Funds 0 0
97800 Oweeng Units Rent Expense $0 $0 $0 $0 $0 $0
90000 Total Expenses $12,049,959 59,352,249 $89,238 $16,114 51,460,933 522,967,443 -$1,773,487 $21,193,956
10010 Operating Translerin $357.765 $0 $0 $357.765 -$357,785 $0
10020 Operating transierOW 5357,765 $0 $0 -$357,765 $357,765 $0
10030 Operating Transfersfromfto Primary Government SO SO 50 $0 SO 50
10040 Operating Transfersfrom/to Component Unit $0 $0 $0 $0 s0 so
10050 Proceeds from Notes,Loam and Bonds 8 0
10060 Proceeds Som Properly Saks 9 0
10070 ExtraordInarylIum,Net Gs5stoso SO $0 S0 SO SO $0
10060 Special Items(NetGnWLoss) $0 $O $0 $0 SO $0 I
10001 Wer Project Excess Cosh Trends!'In $0 0 $0 I
10092 Inter Project Excess Cash Transfer Out 50 0 50 0
10093 Transfers behmen Program and Project-In $0 s0 $0 $0 b0 s0
10094 Trasufera bebveen Pr:Oland Program-Out $0 $0 SO $0 $0 SO
10100 Total O1118 Monolog Sources(Uses) SO $0 SO SO 5O 50 $0 $0
10000 Excess(Deficiency)of Told Revenue Over(Under)Total $664278 4274,600 $138,756 $0 $313,654 $644,066 $0 $844,086
11020 Required Annual Debt Principal Payments S142,134 $0 $0 SO 50 $142,134 $142,134
-
11030 Beginning Equity $31,288,074 $898,221 $4,407,051 $0 $515.348 $37,198,694 $0 • $37,198,694
11040 Pdor Period Adjustments,Equity Transfers and Correction $0 $0 $0 $0 $O $0
11050 Changes In Canpereded Absence Balance 50 SO
11060 Changes b ContingentUabiOly Balance 50 SO
11070 Charges in Unrecognized Pension Transition Uab88y $0 $5
11060 Changes la Special Tenn/Severance 8058040 LlahOty $0 $0
11090 Changes InAllowance for Doubtful Accounts-DweNeg SO SO
11103 Mangos In Mamma for Doubtful Accounts-Other $0 50
•11170 AdmWslrafivm Fee Equity $85,131 $65,131 $85,131
11180 Housing Assistance Payments Egtdly $538,400 5538,490 $534490
11190 Una Monte Available 18364 15700 36 0 35120 0 35120
11210 Number ofUnit Months Leased 18968 14430 36 0 33432 0 33432
11270 Excess Cash $5,427,809 $5,427,609 $5427,809
11610 Land Purchases 50 s0 s0 $0
11620 Budding Purchases $2,734,712 SO $2,734,712 $2,734,712
11630 FurniWe&Equipment-D5s1h5 Purchases $0 $0 s0 $0
11840 Furniture&Equipment-Administrative Purchases $0 50 SO $0
11660 Leasehold Improvements Purchases 50 $0 So so
11660 Infrastructure Purchases .$0 SO SO $0
13510 CFFP Debt Sehdce?aymards $0 SO 50 50
13901 Replacement Housing Factor Finds $0 $0 $0 30
42
CORPUS CHRISTI HOUSING AUTHORITY
CERTIFICATION OF ACTUAL CAPITAL FUND GRANT COSTS
FOR THE YEAR ENDED SEPTEMBER 30,2013
PROGRAM 501-09
Funds approved $2,796,764
Funds expended 2,796,764
Excess of funds approved $ -
Funds advanced $2,796,764
Funds expended 2,796,764
Excess of funds advanced $ -
The distribution of costs as shown on the Actual Modernization Cost Certificate submitted to HUD for
approval is in agreement with the PHA's records
All modernization costs have been paid and all related liabilities have been discharged through payment.
•
See report of independent auditors
43
CORPUS CHRISTI HOUSING AUTHORITY
Corpus Christi,Texas
SCHEDULE AND RECONCILIATION OF ACTUAL
CAPITAL FUND COSTS AND ADVANCES
FOR THE YEAR ENDED SEPTEMBER 30,2013
CFP CFP CFP CFP CFP
PROGRAM 501-09 501-10 501-11 501-12 Total
BUDGET $ 2,796,764 $ 2,799,620 $ 2,577,394 $ 2,132,808 $ 10,306,586
ADVANCES
Cash receipts-prior years $ 2,785,814 $ 1,175,792 $ 622,035 $ 694 $ 4,584,335
Cash receipts-current year 10,950 I,295,179 923,201 1,053,524 3,282,854
Cumulative as of September 30,2013 $ 2,796,764 $ 2,470,971 $ 1,545,236 $ 1,054,218 $ 7,867,189
COSTS
Prior years $ 2,785,814 $ 1,402,280 $ 622,035 $ 694 $ 4,8I0,823
Current year 10,950 1,294,979 923,201 1,053,524 3,282,654
Cumulative as of September 30,2013 $ 2,796,764 $ 2,697,259 $ 1,545,236 $ 1,054,218 $ 8,093,477
Deficiency of advances due from HUD(net) $ - $ (226,288) $ - $ - $ (226,288)
Modernization of Cost Certificate issued? Yes No No No
Soft costs
Prior years $ 749,986 $ 688,603 $ 583,741 $ - $ 2,022,330
Comfit year 10,949 23,975 58,374 488,927 582,225
Cumulative as of September 30,2013 $ 760,935 $ 712,578 $ 642,115 $ 488,927 $ 2,604,555
Hard costs
Prior years $ 2,035,829 $ 713,677 $ 38,294 $ 694 $ 2,788,494
Current year - 1,271,004 864,827 564,597 2,700,428
Cumulative as of September 30,2013 $ 2,035,829 S 1,984,681 $ 903,121 $ 565,291 $ 5,488,922
Hard costs remaining on CFP $ 2,035,829 $ 1,984,631 $ 903,121 $ 565,291 $ 5,488,922
Cumulative hard and soft costs $ 2,796,764 $ 2,697,259 $ 1,545,236 $ 1,054,218 $ 8,093,477
See report of independent auditors
44
CORPUS CHRISTI HOUSING AUTHORITY
• SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS
FOR THE YEAR ENDED SEPTEMBER 30,2013
FEDERAL GRANTOR
Pass Through Federal
CFDA Number Program Title Entity Expenditures
•
U.S.Department of Housing and Urban Development
14.850 Low Rent Public Housing NA $ 6,295,111
CFP Cluster
14.872 Capital Fund Program NA 3,282,852
Total CFP Cluster 3,282,852
Housing Voucher Cluster
14.871 Housing Choice Voucher Program NA 8,753,077
14.871 Housing Choice Voucher Program Other PHAs 309,481
14.IKE DHAP-Ilse NA 15,114
Total Housing Voucher Cluster _ 9,077,672
Total U.S.Department of HUD 18,655,635
Total Federal Award Expenditures $ 18,655,635
Notes to the Schedule of Expenditures of Federal Awards
• A. Basis of Accounting
This Schedule is prepared on the accrual basis of accounting.
B. The information on this schedule is presented in accordance with the requirements of •
OMB Circular A-133,"Audits of States,Local Governments and Non-Profit Organizations".
C. Reconcilation of Total Federal Award Expenditures to Financial Data Schedule
FDS line 706 $ 15,645,526
FDS line 706.1 2,700,628
FDS line 715 309,481
$ 18,655,635
See report of independent auditors
45
NitITOGRADAC
•'s' COMPANY
II LLPN
CERTIFIED PUBLIC ACCOUNTANTS
Report on Internal Control over Financial Reporting and on Compliance and
Other Matters Based on an Audit of Financial Statements Performed in
Accordance with Government Auditing Standards
To the Board of Commissioners of
Corpus Christi Housing Authority:
•
We have audited the accompanying financial statements of Corpus Christi Housing Authority (the
"Authority") as of and for the year ended September 30, 2013,and have issued our report thereon dated
June 20, 2014. We conducted our audit in accordance with auditing standards generally accepted in the
United States of America and the standards applicable to financial audits contained in Government
Auditing Standards issued by the Comptroller General of the United States.
Internal Control over Financial Reporting
In planning and performing our audit, we considered the Authority's internal control over financial
reporting as a basis for designing our auditing procedures for the purpose of expressing our opinion on the
financial statements, but not for the purpose of expressing an opinion on the effectiveness of the
Authority's internal control over financial reporting. Accordingly, we do not express an opinion on the
effectiveness of the Authority's internal control over financial reporting.
A deficiency in internal control exists when the design or operation of a control does not allow
management or employees, in the normal course of performing their assigned functions, to prevent, or
detect and correct misstatements on a timely basis. A material weakness is a deficiency,or a combination
of deficiencies,in internal control such that there is a reasonable possibility that a material misstatement
of the Authority's financial statements will not be prevented,or detected and corrected on a timely basis.
Our consideration of internal control over financial reporting was for the limited purpose described in the
first paragraph of this section and was not designed to identify all deficiencies in internal control over
financial reporting that might be deficiencies,significant deficiencies or material weaknesses. We did not
identify any deficiencies in internal control over financial reporting that we consider to,be material
weaknesses,as defined above.
Compliance and Other Matters
As part of obtaining reasonable assurance about whether the Authority's financial statements are free of
material misstatement,we performed tests of its compliance with certain provisions of laws,regulations,
contracts,and grant agreements,noncompliance with which could have a direct and material effect on the
determination of financial statement amounts. However,providing an opinion on compliance with those
provisions was not an objective of our audit, and accordingly, we do not express such an opinion. The
results of our tests disclosed no instances of noncompliance or other matters that are required to be
reported under Government Auditing Standards.
11044 RESEARCH BOULEVARD,BUILDING C,SUITE 400,AUSTIN,TX 75759 TELEPHONE(512)340-0420 FACSIMILE(512)340-0421 http://www.novoco.com
Restriction of Use
This report is intended solely for the information of the Board of Commissioners, management, and
federal awarding agencies and is not intended to be and should not be used by anyone other than these
specified parties.
awrilac I aniufan4 cy C)
June 20,2014
NOVOGRADAC7� 1L�
'r ' Jl& C�•'MAIV LLYp
,I�d
CBRTIFIBD PUELIC ACCOUNTANTS
Independent Auditor's Report on Compliance with Requirements
That Could Have a Direct and Material Effect on
Each Major Program and on Internal Control over Compliance
in Accordance with OMB Circular A-133
To the Board of Commissioners of
Corpus Christi Housing Authority:
Compliance
We have audited Corpus Christi Housing Authority's compliance with the types of compliance
requirements described in the OMB Circular A-133 Compliance Supplement that could have a direct and
material effect on each of the Housing Authority's major federal programs for the year ended
September 30,2013. The Authority's major federal programa are identified in the summary of auditors'
results section of the accompanying schedule of findings and questioned costs. Compliance with the
requirements of laws,regulations,contracts and grants applicable to each of its major federal programs is
the responsibility of the Authority's management. Our responsibility is to express an opinion on the
Authority's compliance based on our audit.
We conducted our audit of compliance in accordance with auditing standards generally accepted in the
United States of America; the standards applicable to financial audits contained in Government Auditing
Standards, issued by the Comptroller General of the United States; and OMB Circular A-133. Those
standards and OMB Circular A-I33 require that we plan and perform the audit to obtain reasonable
assurance about whether noncompliance with the types of compliance requirements referred to above that
could have a direct and material effect on a major federal program occurred. An audit includes
examining, on a test basis, evidence about the Authority's compliance with those requirements and
performing such other procedures,as we considered necessary in the circumstances. We believe that our
audit provides a reasonable basis for our opinion. Our audit does not provide a legal determination of the
Authority's compliance with those requirements.
In our opinion,the Authority complied, in all material respects, with the requirements referred to above
that could have a direct and material effect on each of its major federal programs for the year ended
September 30,2013.
Internal Control over Compliance
Management of Corpus Christi Housing Authority is responsible for establishing and maintaining
effective internal control over compliance with the requirements of laws, regulations, contracts, and
grants applicable to federal programs. In planning and performing our audit, we considered the
Authority's internal control over compliance with the requirements that could have a direct and material
effect on a major federal program in order to determine our auditing procedures for the purpose of
expressing our opinion on compliance and to test and report on internal control over compliance in
accordance with OMB Circular A-133, but not for the purpose of expressing an opinion on the
11044 RESEARCH BOULEVARD,BUILDING C,SUITE 400,AUSTIN,TX 76759 TELEPHONE(512)340-0420 FACSIMILE(512)340-0421 http://www.novoco.ca,n
effectiveness of internal control over compliance. Accordingly, we do not express an opinion on the
effectiveness of the Authority's internal control over compliance.
A deficiency in internal control over compliance exists when the design or operation of a control over
compliance does not allow management or employees,in the normal course of performing their assigned
functions, to prevent, or detect and correct noncompliance with a type of compliance requirement of a
federal program on a timely basis. A material weakness in internal control over compliance is a
deficiency, or a combination of deficiencies, in internal control over compliance, such that there is a
reasonable possibility that material noncompliance with a type of compliance requirement of a federal
program will not be prevented,or detected and corrected,on a timely basis.
Our consideration of internal control over compliance was for the limited purpose described in the first
paragraph of this section and was not designed to identify all deficiencies in internal control over
compliance that might be deficiencies, significant deficiencies, or material weaknesses. We did not
identify any deficiencies in internal control over compliance that we consider to be material weaknesses,
as defined above.
Restriction of Use
This report is intended solely for the information and use of the Board of Commissioners, management
and federal awarding agencies, and is not intended to be and should not be used by anyone other than
these specified parties.
Novoiru/tccc Co-ruipoypty. UP
June 20,2014
CORPUS CHRISTI HOUSING AUTHORITY
Corpus Christi,Texas
SCHEDULE OF FINDINGS AND QUESTIONED COSTS
FOR THE YEAR ENDED SEPTEMBER 30,2013
Section I—Summary of Auditors Results
Financial Statements
4
Type of audit report issued on financial statements of auditee: Unqualified
Internal control over financial reporting:
o Material weaknesses identified? yes X no
o Significant deficiency(ies)identified? yes X none reported
Noncompliance material to financial statements noted? yes X no
Federal Awards
Internal control over major programs:
o Material wealmess(es)identified? yes X no
o Significant deficiency(ies)identified? yes X none reported
Type of auditor's report issued on compliance for major
programs: Unqualified
Any audit findings disclosed that are required to be reported in
accordance with section 510(a)of Circular A-133? yes X none reported
Identification of major programs:
CFDA Numbers Name of Federal Program or Cluster
CDFA 14.850 Low Rent Public Housing
CDFA 14.871 Housing Choice Voucher Program
Dollar threshold used to distinguish between Type A
and Type B programs: $551,043
Auditee qualified as low-risk auditee? X yes no
50
•
CORPUS CHRISTI HOUSING AUTHORITY
•
Corpus Christi,Texas
SCHEDULE OF FINDINGS AND QUESTIONED COSTS(CONTINUED)
FOR THE YEAR ENDED SEPTEMBER 30,2013
Section II—Financial Statement Findings
There were no financial statement findings for the year ended September 30,2013.
Section HI—Federal Award Findings and Questioned Costs
There were no federal award findings or questioned costs for the year ended September 30,2013.
•
•
51
CORPUS CIII2ISTI HOUSING AUTHORITY
Corpus Christi,Texas
SUMMARY SCHED1ULE OF PRIOR AUDIT FINDINGS
FOR THE YEAR ENDED SEPTEMBER 30,2013
There were no findings for the year ended September 30,2012.
•
52
Financial Schedules
Financial Schedule
The debt service requirement: This is a Revolving Line of Credit with interest only payments
paid monthly based on the outstanding balance of the note. (Interest payments are based on line
usage.) The principal balance is due at maturity. No debt schedule is available, as this is not an
amortizing note.
Lender Name: Frost Bank
Term: 36 Months from the Date of the Note
Principal Amount: $ 3,500,000
Interest Rate: Wall Street Journal Prime Interest Rate: Interest is to be computed at a per
annum rate equal to the lesser of(a) a rate equal to the Latest U.S.prime rate of interest as
quoted in the most recently published issue of THE WALL STREET JOURNAL(U.S. Edition)
in the"Money Rates"section,plus 0.25%percent per annum,with said rate to be adjusted to
reflect any change in said prime rate at the time of any such change,or(b)the highest rate
permitted by applicable law. Interest shall be computed on a per annum basis or a year of 360
days and for the actual number of days elapsed. In no event shall interest contracted for,charged
or received under the Line of Credit,plus any other changes in connection therewith which
constitute interest, exceed the maximum interest permitted by applicable law.
Annual Statement/Performance and Evaluation Report
(HUD-50075.1)
Annual Statement/Performance and•Evaluation Report U.S.Department of Housing and Urban Development
Office of Public and Indian Housing
OMB No.2577-0226
Expires 06/30/2017
Part I: Summary
PHA Name:Corpus Christi Housing FFY of Grant:
Grant Type and Number OFFP
Authority FFY of Grant Approval:
Giant No:
Date of OFFP:
Type of Grant
®Original Annual Statement 0 Reserve for Disasters/Emergencies 0 Revised Annual Statement(revision no: )
0 Performance and Evaluation Report for Period Ending 0 Final Performance and Evaluation Report
Line Summary by Development Account Total Estimated Cost _ Total Actual Cost'
Original Revised2 Obligated Expended
1 Total non-CFP Funds
2 1406 Operations(may not exceed 20%of line 21)3
3 1408 Management Improvements
4 1410 Administration(may not exceed 10%of line 21)
5 1411 Audit
6 1415 Liquidated Damages
7 1430 Fees and Costs 89.890
8 1440 Site Acquisition
9 1450 Site Improvement
10 1460 Dwelling Structures 3,161,957
11 1465.1 Dwelling Equipment Nonexpendable
12 1470 Non-dwelling Structures
13 1475 Non-dwelling Equipment
14 1485 Demolition
15 1492 Moving to Work Demonstration
16 1495.1 Relocation Costs
17 1499 Development Activities'
To be completed for the Performance and Evaluation Report.
2 To be completed for the Performance and Evaluation Report ora Revised Annual Statement.
3 PHAs with under 250 units in management may use 100%of CFP Grants for operations.
4 RHF funds shall be included here.
Pagel form HUD-50075.1(07/2014)
Annual Statement/Performance and Evaluation Report U.S.Department of Housing and Urban Development
Office of Public and Indian Housing
OMB No.2577-0226
Expires 06/30/2017
Part I: Summary
PHA Name: FFY of Grant:
Corpus Christi Grant Type and Number OFFP FFY of Grant Approval:
Housing Authority Crrnnt No:
Date of CFA':
Type of Grant
Original Annual Statement 0 Reserve for Disasters/Emergencies 0 Revised Annual Statement(revision no:
Performance and Evaluation Report for Period Ending: ❑Final Performance and Evaluation Report
Line Summary by Development Account Total Estimated Cost Total Actual Cost
Original RevisedObligated Expended
18a 1501 Collateralization or Debt Service paid by the PHA
18ba 9000 Collateralization or Debt Service paid Via System of Direct
Payment
19 1502 Contingency(may not exceed 8%of line 20) 248,153
20 Amount of Annual Grant: (sum of lines 2-19) 3,5 00,000
21 Amount of line 20 Related to LBP Activities 5,000
22 Amount of line 20 Related to Section 504 Activities 0
23 Amount of line 20 Related to Security-Soft Costs 0
24 Amount of line 20 Related to Security-Hard Costs 0
25 Amount of line 20 Related to Energy Conservation Measures 105,980
Signature of Executive Director Date Signature of Public Housing Director Date
To be completed for the Performance and Evaluation Report
To be completed for the Performance and Evaluation Report ora Revised Annual Statement
Page2 form HUD-50075.1(07/2014)
Annual Statement/Performance and Evaluation Report U.S.Department of Housing and Urban Development
Office of Public and Indian Housing
OMB No.2577-0226
Expires 06/30/2017
Part II: Supporting Pages
PHA Name:Corpus Christi Housing Authority Grant Type and Number OFFP Federal FFY of Grant:
Grant No:
Date of OFFP:
Development Number General Description of Major Work Development Quantity Total Estimated Cost Total Actual Cost Status of Work
Name/PHA-Wide Categories Account No.
Activities _
Original Revised` Funds Funds
Obligated2 Expended2
La Armada II, Exterior Improvements: 71 Bldgs. 1,514,266
TX 08-05 Inclusive of cement siding,painting of
existing plaster walls,placing restroom
slider window/unit,replacing and
painting each new water heater door/unit.
Contingency 71 Bldgs. 118,734
1 To be completed for the Performance and Evaluation Report or a Revised Annual Statement.
'`To be completed for the Performance and Evaluation Report.
Page3 form HUD-50075.1(07/2014)
Annual Statement/Performance and Evaluation Report U.S.Department of Housing and Urban Development
Office of Public and Indian Housing
OMB No.2577-0226
Expires 06/30/2017
Part II: Supporting Pages
PHA Name:Corpus Christi Housing Authority Grant Type and Number OFFP Federal FFY of Grant:
Grant No:
Date of OFFP:
Development Number General Description of Major Work Development Quantity Total Estimated Cost Total Actual Cost Status of Work
Name/PHA-Wide Categories Account No.
Activities
Original Revised` Funds Funds
Obligatedz Expended'
La Armada II, 1.) Interior Improvements: 67,914
TX 08-05 Paint Interior Walls/L&M
a. Clean and Texture
b. Paint 2 coats/walls,Note:Lead 76,146
Abatement/Encapsulation
2.) Paint Interior Ceilings/L&M, 40,929
a. Clean and Texture
b. Paint 2 coats/ceiling 61,394
3.) Wall&Ceiling Repair 11,250
4.) Paint doors and trim,Note: 13,000
Lead Abatement/Encapsulation
5.) VCT tile,remove and replace 32,500
kitchen including abatement
and underlayment
6.) New kitchen lower cabinet with 38,500
counter and sink with faucets,
and paint cabinet
7.) New upper cabinets painted 38,061
8.) New range hood/electric 4,750
9.) Wood,floor,clean and varnish 34,772
10.)New smoke detectors 3,500
11.)Living room fan w/light switch , 12,250
12.)Bedroom fans with lights 22,183
13.)New window blinds 10,986
14.)Electrical upgrade 17,055
Contingency 39,809
'To be completed for the Performance and Evaluation Report or a Revised Annual Statement.
2 To be completed for the Performance and Evaluation Report
Annual Statement/Performance and Evaluation Report U.S.Department of Housing and Urban Development
Page4 form HUD-50075.1(07/2014)
Office of Public and Indian Housing
OMB No.2577-0226
Expires 06/30/2017
Part II: Supporting Pages
PHA Name:Corpus Christi Housing Authority Grant Type and Number Federal FFY of Grant:
Grant No:
Date of OFFP:
Development Number General Description of Major Work Development Quantity Total Estimated Cost Total Actual Cost Status of Work
Name/PHA-Wide Categories Account No.
Activities
Original Revised i Funds Funds
Obligated2 Expended2
La Armada II, Bathroom Improvements 310 Units
TX 08-05
1.) Plumbing demo,debris,note: 310 Units 122,140
Asbestos abatements 54,500
2.) Tub area removal and wall prep 310 Units 77,500
3.) Steel tub placement with FRP 310 Units 86,800
surround
4.) Ceramic Floor Tile,Note: 6,200 sq. 74,400
Asbestos abatement,42,000 ft.
5.) Replace sink and toilet 310 Units 82,150
6.) New faucets,handles&drains 310 Units 72,230
7.) Incidentals/curtain holders and 310 Units 66,030
medicine cabinets
8.) Light fixture 310 Units 54,250
9.) Shower Head 310 Units 108,500
Contingency 310 Units 49,690
310 Units
1.) 310 Units 418,500
Contingency 310 Units 39,920 _
1 To be completed for the Performance and Evaluation Report or a Revised Annual Statement.
2 To be completed forte Performance and Evaluation Report.
Page5 form HUD-50075.1(07/2014)
Annual Statement/Performance and Evaluation Report U.S.Department of Housing and Urban Development
Capital Fund Program,Capital Fund Program Replacement Housing Factor and Office of Public and Indian Housing
Capital Fund Financing Program OMB No.2577-0226
Expires 06/30/2017
Part III: Implementation Schedule for Capital Fund Financing Program
PHA Name: Federal FFY of Grant:
Development Number All Fund Obligated All Funds Expended Reasons for Revised Target Dates 1
Name/PHA-Wide (Quarter Ending Date) (Quarter Ending Date)
Activities
Original Actual Obligation Original Expenditure Actual Expenditure End
Obligation End End Date End Date Date
Date
La Armada II,TX 08-05
1 Obligation and expenditure end dated can only be revised with HUD approval pursuant to Section 9j of the U.S.Housing Act of 1937,as amended.
Page6 form HUD-50075.1(07/2014)
Disclosure of all Existing Financing
Disclosure of all Existing Financing
On January 27,2004,The Housing Authority was given approval to move forward on the Energy
Performance Contract and selection of an Energy Saving Company (ESCO). A Request for
Proposals (RFP) was advertised in the Corpus Christi Caller Times on April 18 and 25, 2004.
The Amersco team was chosen on December 16, 2004. After careful review of the audit and the
proposal Energy Services Agreement(ESA),the Housing Authority elected to contract an energy
consultant to ensure the results of the audit and the details of the contract were accurate.
On February 7, 2006, the Texas Engineering Experiment Station (TEES), a subsidiary of the
University Of Texas A&M,were selected for the energy audit and ESA review. The results were
posted to the Housing Authority on March 9, 2006 and then forwarded to Amersco on March 24,
2006 for comment.
On June 6, 2006, the San Antonio Housing and Urban Development (HUD) field office has
reviewed and approved the Energy Services Agreement (ESA). Next, is to approve the ESA and
begin construction.
According to Appendix D of Energy Services Agreement,the final lease amount including
construction period interest is 1,785,176(original principal amount)with an interest rate of 4.43
and a 12-year term. The current outstanding balance as of September 30,2014 is 740,733.41
with payments of approximately 15,413.63 (principal 12,632.45 and interest 2,781.18)due
monthly. The source of these monthly payments is provided by each property or AMP. The
financing was used to implement an energy performance contract to provide the CCHA with
utility/energy supplier consumption and cost savings or"Energy Savings"by installation of
Energy Conservation Measures within certain PHA properties.
The executed Energy Services Agreement dated June 6,2006 between Ameresco Inc,and the
Corpus Christi Housing Authority is available upon request.