The Housing Authority provided a fiscal-year review and a warning about federal funding offsets that could create a small shortfall for housing-assistance payments.

Finance presentation: staff reported that FY2024 revenues for the Housing Choice Voucher (HCV) program were in line with the approved budget and that expenses produced roughly $3 million in savings largely because IT modernization and some tenant services were deferred to FY2025. The Authority said some savings will be spent on planned IT modernization and tenant services next fiscal year.

HAP funding and program breakdown: finance staff said Housing Assistance Payments (HAP) funding totals about $394 million and detailed program-specific voucher counts: Veterans Affairs vouchers, 110 family-unification vouchers, foster-youth vouchers including 17 competitive vouchers, and a homeownership program serving seven families. They emphasized that savings are program-specific and must remain within the individual program buckets.

HUD offsets and shortfall risk: the metrics team reported monthly HAP spending around $34 million and said HUD applied two offsets to the Authority’s renewal: one offset of $10 million at renewal and a later $5 million offset in August, actions the Authority appealed. Staff said the offsets were unexpected, that they have appealed and are providing data to the HUD shortfall team, and that the Authority is projecting either a small shortfall or a slight reserve reduction for the year.

Investments and pension liability: finance staff outlined an investment plan to preserve capital and pay pension liabilities; they reported public-housing reserve returns near 4.96% for the period cited and reiterated that certain revenue savings are restricted to particular program uses.

Next steps and commissioner response: staff will continue monthly discussions with HUD and the shortfall team, provide reconciliation materials, and monitor voucher issuance and leasing. Commissioners pressed for more granular metrics about voucher allocation timelines and operational performance; staff agreed to return with additional operational metrics and timelines.