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Table of Contents

SECTION I - INTRODUCTION TO THE BUDGET

Transmittal Letter - 5

Board of Commissioners - 6

Organizational Structure - 7

Staffing and Budget Allocations - 8

SECTION II - THE AUTHORITY

Profile of the Authority - 10

Strategic Plan - 11

SECTION III - THE BUDGET

Summary Budget - 13

Low Income Public Housing (LIPH) and Affordable Housing (AFH)

LIPH Program Summary - 15

LIPH Budget Assumptions & Projections - 16

AFH - Program Summary - 17

AFH - Budget Assumptions & Projections - 18

Property Management Team 1 - 19

Property Management Team 2 - 26

Property Management Team 3 - 29

Property Management Team 4 - 31

Property Management Team 5 - 36

Property Management Team 6 - 39

Central Office Cost Center (COCC)

COCC Program Summary - 42

COCC Budget Assumptions & Projections - 46

COCC Consolidated Budget - 47

Housing Choice Voucher Program (HCVP)

HCVP Program Summary - 48

HCVP Budget Assumptions & Projections - 49

HCVP Budgets (Administration | HAP) - 50

Development Ventures, Inc (DVI)

DVI Program Summary - 52

DVI Budget - 53

Learning Assistance, Inc (LAI)

LAI Program Summary and Budget - 54

Section I

Introduction to the Budget

2022 Annual Operating Budget

November 22, 2021

To the Chairman and Board of Commissioners

I am pleased to present the 2022 preliminary budget proposal for The Housing Authority of the City of Durham (The Authority) and its Instrumentalities.

The document provides the Board, Staff, and other Stakeholders with a comprehensive view of inflows and outflows of financial resources used for daily operations. it explains our core businesses, how our programs are funded and how we allocate these funds annually. It is also a tool for management to aid in decision-making and performance monitoring.

Our focus this year is "The Way Forward" - with improving operations, redeveloping and increasing our footprint across the affordable housing world. Although 2020 and 2021 proved to be a challenging year for us, we are better equipped to respond to operational situations with our recent experiences.

We look forward to discussions about this budget and we are ready to answer any questions you might have.

Respectfully submitted,

Anthony Scott,
Chief Executive Officer

2022 Operating Revenues

Low Income Public Housing
$10,037,693

Central Office Cost Center
$5,220,058

HCVP Administration
$2,120,491

Development Ventures, Inc.
$0

Edgemont Elms Housing, Inc.
$423,424

Goley Point, LLC
$155,451

Learning Assistance, Inc.
$15,000

Preiss Steele Place, LLC
$658,402

Damar Court, LLC
$980,212

Morreene Road, LLC
$1,197,345

Laurel Oaks
$202,827

Board of Commissioners

The Housing Authority of the City of Durham is governed by a seven-member Board of Commissioners. The Board is comprised of active public servants within the Durham community who are appointed by the Durham City Council and Mayor. These concerned and dedicated citizens serve without pay. At least one Board position is held by a resident of DHA's subsidized housing programs. Each Commissioner is appointed for a five-year term. The Chief Executive Officer acts as the Secretary/Treasurer for the Board.

Daniel C. Hudgins, Chairman

Mayme Webb-Bledsoe, Vice Chair

Torrell Armstrong, Member

Robert Glenn, Member

Angela Holmes, Member

Pebbles Lucas, Member

Christine Westfall, Member

The Board of Commissioners ensure that the Authority operates within the State statutes and the programs are run according to HUD regulations. Through the approval and adoption of resolutions, the Board authorizes the Chief Executive Officer and Senior Staff to implement policies and procedures that define business activities.

Organizational Structure

The organization has a matrix structure where programs and functional responsibilities have reasonably equal weight. The Board of Commissioners appoints the Chief Executive Officer to administer the affairs of the Authority.

BOARD OF COMMISSONERS

CEO ANTHONY SCOTT

DEPUTY TO THE CEO TAWAN FIELDS

COO/HCVP DIRECTOR DANITA JOHNSON

DIRECTOR OF HOUSING OPERATIONS DOMINQUE DUNN

DIRECTOR OF RESIDENT SERVICES MARCUS CLARK

DIRECTOR OF ADMINISTRATION SABRINA SINEGAL

CFO RALPH STALEY

DIRECTOR OF DEVELOPMENT ANTHONY SNELL

DIRECTOR OF STRATEGIC MANAGEMENT ASHANTI BROWN

COMMUNICATIONS MANAGER AALAYAH SANDERS

Staffing and Budget Allocations

Over the past (5) years, total staffing for the Authority has increased from 97 in 2018 to a budgeted number of 114 for 2022.

For budgeting and operational purposes, the staff is allocated to specific cost centers as follows:

Property Management - Low Income Public Housing and Affordable Housing
Housing Choice Voucher Program
Central Office Cost Center
Other Grant Funded Programs

STAFFING AT DHA - 5 YEAR TREND

2018 - 97 EMPLOYEES

2019 - 102 EMPLOYEES

2020 - 100 EMPLOYEES

2021 - 114 EMPLOYEES

2022 - 114 EMPLOYEES

The increase in staffing is mainly due to reorganization and new-grant funded positions.

Section II

The Authority

Profile of the Authority

The Authority is an autonomous, non-profit municipal entity created by the City of Durham in 1949 pursuant to state law and the National Housing Act of 1937. The Authority exists to provide safe, decent, and sanitary housing for low-income families of Durham in accordance with the rules and regulations prescribed by the U.S. Department of Housing and Urban Development (HUD). Although it maintains close ties with the City on several respects, the Authority is not a component of the City, as defined by the pronouncements of the Governmental Accounting Standards Board (GASB). The City is not financially accountable for the operations of the Authority, has no responsibility to fund its deficits or receive its surpluses, and does not guarantee the Authority's debt.

The Authority currently has about 1,197 public housing units available in 11 different communities located throughout the City of Durham. Additionally, the Authority assists in providing 502 affordable housing units at 6 communities. The Authority also has business-interest in about 135 units of affordable housing managed by The Community Builders (TCB) and about 177 units managed by California Commercial Investment Group/Florian Companies (CCI).

The Authority is currently authorized to administer 2,834 Housing Choice Vouchers that provide rental assistance to families renting housing units owned by private landlords. Through the Rental Assistance Demonstration Program (RAD), the Authority now has 2 Project-Based RAD contracts for a total of 163 units.

The Authority utilizes the business model of asset management as required by HUD. Funding, Budgeting, Accounting, Management and Oversight/Performance Assessment are completed on the project/program level.

For 2022, DHA will manage 4 main businesses - Low Income Public Housing, Affordable Housing, Housing Choice Voucher and Central Office Cost Center. Also, Development Ventures, Inc. - an instrumentality of the Authority will manage all its development and re-development activities. In addition, Learning Assistance. Inc. - a component unit of the Authority, will manage its scholarship program.

Strategic Plan

The Strategic Plan of the Authority was developed in 2017 to set goals and objectives for the Authority for the next 5 years. The main focus was to create a framework that more closely mirrored the long term plans of DHA, the community, and most importantly how DHA can better serve its clients.

The Strategic Plan establishes a management control system that consists of both a structure and a process to guide departmental efforts in attaining the mission of the organization.

The Chief Executive Officer in collaboration with the senior management team defined six major goals that are aligned with the vision of creating new opportunities, increasing the efficiency and effectiveness of operations and cultivating a culture that is set on progressive change.

The Authority is committed to developing, providing and managing quality affordable housing within the City of Durham and endeavors to meet and exceed these goals in the coming years.

The diagram and table below provide details of the foundation on which Strategic Plan is built on.