HRHA financial report: budgets steady, HUD grant delays and voucher management prompt caution

The Harrisonburg Redevelopment and Housing Authority on May 21 received and approved financial and management reports showing overall income ahead of projections and expenses below budget, but staff warned of two program-level risks: a delayed HUD-funded service coordinator grant and a tighter Housing Choice Voucher (HCV) budget authority position.

Michael, executive director, told the board that most programs are building reserves and that overall spending is under projections. He said the authority has not yet received approximately $90,000 in a HUD-funded service coordinator grant; HUD staff have told HRHA the funds exist but the agency has not yet approved distribution.

Staff said they will self-fund the service coordinator program in the near term and monitor the situation, but if the grant has not been released by September or October the authority would likely have to consider discontinuing that service. Michael described contingencies to move funds internally if necessary but said extended self-funding beyond a year would create hardship in that program area.

Housing Choice Voucher program: staff reported the HCV program experienced a small negative in HAP reserves but recently received a HUD notice indicating HAP funding increased to $8.2 million (from a historical $7 million figure); the authority will adjust budgets when final official notice arrives. The authority currently is not issuing new vouchers, has about nine vouchers in use outside the authority at the moment and historically averages 10–14 voucher issuances in comparable periods. The HCV program had 768 vouchers under lease and a waiting list of roughly 2,500 names, staff reported.

Staffing and operations: two positions will remain vacant for now — an occupancy specialist in the HCV program and an administrative position serving Franklin Heights and related properties — after two recent departures. A staff member named Charlie will leave in June; a candidate is scheduled to start June 16 to fill a separate role. Staff said the authority will not broadly refill positions until funding clarity improves; doing so has contributed to lower operating expenses.

Payment standards: staff said they are analyzing potential changes to HCV payment standards. Presently the authority uses a 20% threshold above fair market rents; staff said reducing that to 10% is under consideration to contain HAP spending, although immediate changes would not affect current high-cost units until future adjustments are made.

Board action: the board approved the minutes for April 16, 2025, then approved the financial reports and the management reports by voice vote. Exact voice-vote tallies were not recorded in the transcript; staff noted no members opposed.

Homelessness and grants: staff briefed the board on ongoing uncertainty in federal and state homeless assistance awards. Michael said federal Emergency Housing Voucher funding issued during the COVID response may phase out and warned of potential impacts in Virginia; HRHA itself was not allocated additional emergency vouchers but regional partners may request services as those funds expire. The agency also flagged that HOPWA contract transitions will close the current program at the end of the week and that the Harrisonburg Community Health Center is working with HRHA on transitional arrangements for rental assistance.

Management report highlights: maintenance and preventive work continue across properties, roofing bids are out for Franklin Heights, and the authority expects a $300,000 reimbursement on a recently closed grant that will increase cash balances.

Board motion and votes: the board made motions to approve the minutes, financial report and management report; motions carried by voice vote with no opposition recorded.