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Housing Authority adopts investment policy to put reserves in Treasury money markets; quarterly reporting pledged
Summary
The commission approved a new investment policy to invest operating reserves beyond a four‑month liquidity buffer in HUD‑approved instruments (U.S. Treasury money market, commercial paper), with staff proposing initial placement in an ultra‑liquid Treasury money‑market vehicle and quarterly reporting to the board.
The Housing Authority adopted an updated investment policy effective March 1, 2024, that allows the Authority to invest reserves above a four‑month operating threshold in HUD‑approved, fully guaranteed instruments such as U.S. Treasury money-market funds, Treasury bills and high‑quality commercial paper.
Chief Financial Officer Mamadou Neng said the Authority has been building a reserve since late 2022 and that placing funds in a Treasury money‑market vehicle would produce materially higher returns than idle bank balances. He described the expected returns in the current rate environment as roughly 4–5% for short-term Treasury instruments and emphasized that the proposed money‑market placement is highly liquid (one-day notice) and backed by U.S. Treasury instruments.
Commissioners asked about safeguards, fees and potential downside. Neng said HUD limits PHAs to conservative instruments and that the proposed initial placement carries minimal risk because it is fully guaranteed under allowable HUD instruments. The board approved the investment policy in a roll‑call vote and staff committed to quarterly reporting of investment holdings, interest earned and portfolio composition.
