Combined operating and
capital budget presented
Public hearing
participants advocate restoration of arts funds
SEATTLE—September 17, 2007—Seattle Housing
Authority staff presented a draft budget for 2008 to the Housing
Authority's Board of Commissioners on Monday, September 17. Combined
revenues for operations and capital expenses total $261.5 million,
about $40 million less than last year. The reduction is due
primarily to progress on the Housing Authority's development
projects and the completion of many of the building renovations in
the homeWorks project, which is improving 22 high-rises around the
city.
Prior to the presentation at the
board meeting, staff and board members heard testimony from
about 15 supporters of the Nature Consortium, which operates youth arts
programs at Yesler Terrace and Rainier Vista. The organization
received $81,000 for these programs last year, but the draft budget
did not include on-going funding. Nancy Whitlock, the organization's
founder and executive director, encouraged the Board to reconsider
this cut. "There is no more effective way to reach so many youth, to
cross cultures and languages... than the arts," she told the
commissioners.
 Nearly
half of SHA's budget is devoted to capital projects, including
homeWorks and redevelopments. Funds for these developments represent
39 percent of revenues and come from tax-credits and bond financing,
and from HOPE VI grants.
SHA's other major source of revenue
is HUD funding ($124.4 million), which represents 46 percent of the
overall budget. Rental income of $23 million is 9 percent of the
budget.
 Budgeted
expenses closely follow the revenues, with the largest portion ($126
million) going to capital projects. Housing Choice Voucher payments
to landlords represent 28 percent of the budget
($73 million) and day to day oper-ating expenses are $51.8 million,
or 24 percent.
Shelly Yapp, Seattle Housing's
chief financial officer, went through the highlights of the draft
budget with the commissioners. She stressed several key points about
this year's budget.
According to Yapp, "If
Congressional action in June to increase funding for the
Housing Choice Voucher program had not occurred, we would have been
facing the need to reduce services in this budget. Also, the fact
that SHA is designated as an 'MTW' agency allows us to use the
increase in HCV funding as we see fit. If it were not for this, we
would be facing reductions in the Low Income Public Housing
properties. The other reality we have to deal with is that we still
have significant capital needs in the future for our local housing
that we don’t yet have funding sources for."
The budget will be presented a
second time at the October 15 meeting of the Board of Commissioners,
with a vote expected at that time. Comments on the draft budget and
the annual MTW plan are welcomed until October 8. Detailed
information on the budget and the plan are available on
SHA's homepage.
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