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.