Committee places one HOC resident‑services tranche on reconciliation list as agency seeks relief for scattered‑site losses

The Planning, Housing and Parks Committee on Thursday reviewed multiple requests from the Housing Opportunities Commission (HOC) related to a new headquarters and ongoing operating shortfalls and agreed to place a modest tranche on the council's reconciliation list while staff follows up on parking and other options.

HOC representatives, led by Senior Executive Vice President Kayrene Brown, said the county executive recommended a baseline $378,371 (4.13%) same‑services increase to HOC's FY27 operating budget but HOC had also requested additional items that would require reconciliation‑list placement. Those supplemental requests include $2,720,000 for headquarters support (broken down to a $772,000 resident‑services share: $612,000 in building/debt payments and $160,000 in operating costs), a $200,000 parking offset, $1,300,000 in temporary general cost assistance to offset losses at scattered‑site properties, and $616,736 to replace a federal fatherhood initiative grant.

HOC urged the committee to prioritize resident services as a permanent operating expense and to consider tranching larger requests. "We're asking for a little bit of relief" while the agency works through lease enforcement and unit turnover, Brown said, noting the agency has seen several million dollars in nonpayment across portfolios and that recovery will take time.

Council staff outlined two options for the $772,000 resident‑services request: split it into the debt service ($612,000) and operating ($160,000) components or divide it into three roughly even tranches (examples given were $272,000, $250,000, $250,000). Tim Goetzinger, HOC chief financial officer, told the committee that certain scattered‑site portfolios that previously generated revenue have been operating at a loss (citing an operating cost swing from about $1.0 million in FY24 to $2.4 million in FY25), reducing funds available for debt service and prompting reliance on reserves.

After questions about vacancy levels, eviction counts, and operational priorities, the committee agreed to place one $272,000 tranche for resident services on the reconciliation list as a realistic item to pursue and to add the $200,000 parking offset as a placeholder pending follow‑up with OMB and parking‑district planning. Members said the fatherhood initiative replacement and full headquarters support were unlikely to come off the reconciliation list this budget cycle absent new resources.

The committee asked HOC to provide a position‑level listing of current vacancies and the fiscal impact of filled versus vacant positions, and asked staff to check the parking‑district accounting mechanics that affect whether the county can waive or offset parking fees for HOC employees. The committee requested follow‑up information from OMB and parking‑planning staff before the full council considered reconciliation changes.

Next steps: the committee's recommendations will be forwarded to the full council, and staff will return with the requested vacancy and parking‑district follow‑up information.