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Housing Authority presents draft $142M budget; staff to use Section 18 sales and partnerships to support development
Summary
Deputy staff presented a draft budget that projects a positive fund balance driven in part by Section 18 home dispositions and developer fees, highlighted a beginning fund balance of about $50 million and expected gains from Section 18 sales, and described ongoing real‑estate strategy work and a forthcoming budget policy for the authority.
The Housing Authority of Washington County presented a draft fiscal year budget that staff said focuses on right‑sizing operations, structural sustainability and using property dispositions and development fees to support future projects.
"This is a draft budget," Deputy CFO Bridal Bonsbach said, walking the advisory committee through timing and key messages. Bonsbach and other staff said the authority is organizing the housing authority budget into three main buckets: federal vouchers, public housing and affordable housing development and operations. Staff described a beginning fund balance around $50,000,000 and a multi‑year plan that includes expected gains from Section 18 home dispositions.
Steve Netter, budget manager, said the housing assistance payments are the single largest revenue and expenditure driver. Staff noted a projected gain of about $8,200,000 from Section 18 sales that will be recorded in the public housing division and used for affordable housing development.
On Section 18 dispositions and unoccupied homes Staff described the Section 18 sale process: an initial broker listing, tenant protection vouchers for displaced tenants, opportunities for tenants to purchase homes at a discounted rate and market sales (listed on RMLS). Bonsbach said several tenants bought homes under the program and that 27 single‑family homes remain unoccupied and are being prepared for sale in the summer marketing season.
"For all of the tenants in the Section 18 units, they are granted a tenant protection voucher from HUD," Bonsbach said, describing the tenant protections the authority provided during the disposition process.
Real‑estate strategy and partnerships Committee members questioned how the authority balances mission‑driven permanent supportive housing (PSH) with revenue‑generating properties such as Quantum (a roughly 768‑unit property regulated at 80% AMI where HAWK holds a 50% interest). Staff said they will pause to develop a long‑term real estate strategy, clarify partnership templates and return with recommended terms for future deals.
Policy next steps Staff said they will return next month with a revised budget for approval by the housing authority board of directors; they also plan to draft a formal budget policy for HAWK to codify revenue projection methods, internal approvals and monitoring thresholds.
Committee discussion focused on how to balance new development, operations and the authority’s PSH mission while maintaining sustainable reserves and fund balances.
