June 17, 2025
Economic Development
Richmond Housing Authority (RHA)
DATE: June 17, 2025
TO: Housing Authority Board of Commissioners and
Members of the City Council
FROM:
Shasa Curl, City Manager
Andrea Miller, Director of Finance
Mubeen Qader, Deputy Director of Finance
Nannette Beacham, Economic Development Director
Antoinette Terrell, RHA Executive Director
Rita Martinez, Finance Manager II
Gabino Arredondo, Project Manager
Subject:
Proposed Richmond Housing Authority Budget for Fiscal
Year (FY) 2025-2026
FINANCIAL IMPACT: This action approves the Richmond Housing Authority (RHA) proposed Fiscal Year (FY) 2025-2026 operating
budget, with estimated revenues of $4,480,249.92, and
total proposed expenditures of $4,480,249.92. If the
proposed General Fund subsidy of $1,039,755 is
approved by the City of Richmond, it will balance the
RHA FY2025-2026 budget to $4,480,249.92 in estimated
revenues and $4,480,249.92 in expenditures.
PREVIOUS COUNCIL
ACTION:
None.
STATEMENT OF THE
ISSUE:
City staff is requesting that the RHA Board of
Commissioners and members of the City Council
review and approve the RHA FY2025-2026 proposed
operating budget.
JOINT MEETING
AGENDA REPORT
June 17, 2025
RECOMMENDED ACTION:
ADOPT a joint resolution approving the proposed Fiscal
Year (FY) 2025-2026 Richmond Housing Authority (RHA)
budget, with total estimated revenues of $4,480,249.92
and total estimated expenditures of $4,480,249.92; and
APPROVE an RHA subsidy from the City of Richmond
General Fund in the amount of $1,039,755, which will
provide sufficient revenue to match anticipated
expenditures and balance the RHA budget to
$4,480,249.92 in estimated revenues and $4,480,249.92
in expenditures - Richmond Housing Authority/Finance
(Antoinette Terrell 621-1300/Rita Martinez 621-1546).
DISCUSSION:
Background:
The Richmond Housing Authority (RHA) provides affordable housing for low and very low-income Richmond residents through the U.S. Department of Housing and Urban Development (HUD) federally funded housing programs. RHA owns multiple public housing properties and manages one property occupied by residents (Nystrom Village) with approximately 100 units. There are an additional 393 units associated with RHA entities (Richmond Village, Triangle Court, Friendship Manor), 148 units recently rehabilitated and occupied at Hacienda Heights, and 142 units currently under substantial rehabilitation by EAH Housing (Nevin Plaza) for a total of 783 units. Funding for the RHA budget is largely dependent on funding from the U.S. Department of Housing and Urban Development (HUD), and thus subject to congressional appropriations. HUD continues the trend of inadequate funding for public housing authorities nationwide, and therefore, it is increasingly difficult for RHA to operate without a General Fund subsidy.
Statement of the Issue:
RHA is proposing $4,480,249.92 in expenditures during FY 2025-2026 to manage the public housing program. These expenditures include personnel costs (currently at 5.0 Full Time Equivalents (FTE)), funds to cover utilities, contracts for property maintenance and unit turnover activities at Nystrom Village, professional services for asset repositioning, and addressing outstanding financial liabilities such as completing financial audits, and an operating subsidy pass through for Richmond Village. Estimated revenue of $3,440,494.92 is comprised of operating subsidies from HUD, capital funds, and tenant rents. FY 2025-2026 Budget staff recommend that the RHA Board of Commissioners and City Council adopt a resolution approving RHA's FY2025-2026 operating budget in the amount of $3,440,494.92 in revenues and $4,480,249.92 in expenditures, with a proposed City of Richmond subsidy amount of $1,039,755. The most significant revenue and expenditure changes are listed below:
June 17, 2025
Revenue - $4,480,249.92
HUD Operating Subsidy - $959,255.92: The HUD operating subsidy includes $622,708 for Nevin and Nystrom, and $336,547.92 for the Richmond Village I, II, III pass through.
Capital Fund Program - $1,482,029: The Capital Fund provided by HUD funds, annually, Public Housing Agencies (PHAs) for the development, financing, and improvements of public housing developments and for management improvements.
Tenant Rental Income - $364,500: There are units at Nystrom Village that have been repaired and units that are currently being rehabilitated with the goal of increasing tenancy and improving conditions. RHA will continue to focus on evaluating the units that can be brought back online and implementing improvements.
Hacienda Asset Repositioning - $30,000: Funds for Hacienda maintenance and upkeep are available from Hacienda asset repositioning funds. Authority Oversight Fees - $5,000
Repayment Agreements and Other Revenue - $3,000: Repayment agreements are between residents and RHA to pay owed rent.
Operating Transfer In –
o Capital Grant Fund: $518,710; Capital Fund is allowed to transfer up to 25 percent ($370,507) of the total grant amount for operations to the Asset Management Projects (AMPs), and up to 10 percent ($148,203) for administration to Central Office Cost Center (COCC).
o Operating Subsidy: $78,000; RHA will continue to receive a subsidy for Nevin Plaza during the rehabilitation period, but it has reduced over time.
Any remaining funds from the Nevin operating subsidy may be transferred to other RHA AMPs in need.
o City’s General Fund Subsidy: $1,039,755; to balance the budget.
Expenditures: $4,480,249.92
Personnel - $615,072: Salaries and Benefits, the current budget includes 5.0 FTEs (Attachment 3).
Professional & Administrative Services - $1,288,830: Costs for services include, but are not limited to: Unit renovations, assessments, remediation, consulting, legal services, financial audits, and trainings.
Operating Expenses - $367,750: Operating expenses include, but are not limited to: Tenant relocation, building, maintenance and office supplies, mailing and copying, housing commission payments, tenant program fees, and equipment rentals.
Equipment & Contractual Services - $793,069: Contractual services include, but not limited to: Renovation supplies, appliances, equipment, temporary staffing, HVAC, plumbing, landscaping, and repairs and maintenance.
June 17, 2025
Grant Expenditures - $351,047.92: Expenditures for the Capital Grant auditing services and the Richmond Village subsidy passthrough payments. Property Insurance - $53,574
Utilities - $241,000: Utilities costs include expenditures for telephone, electricity, water, sewer, gas, and refuse services.
Cost Allocation - $123,197: Per the Title 2 Code of Federal Regulations 200 (2 CFR Part 200) compliant Cost Allocation Plan (CAP).
Capital Outlay - $50,000: Unit rehab activities and roof repairs. Operating Transfer Out - $596,710:
o Capital Grant Fund: $518,710; Capital Fund is allowed to transfer up to 25 percent ($370,507) of the total grant amount for operations to the Asset Management Projects (AMPs), and up to 10 percent ($148,203) for administration to Central Office Cost Center (COCC).
o Operating Subsidy from Nevin Plaza: $78,000; RHA will continue to receive a subsidy for Nevin Plaza during the renovation period, but it has reduced over time. Any remaining funds from the Nevin operating subsidy may be transferred to other RHA AMPs in need.
FY 2024-2025 RHA and COR Accomplishments
RHA’s main goals and objectives for FY 2024-2025, in addition to the management of the public housing program, includes moving forward on asset repositioning activities outlined in the 2019 Public Housing Authority Recovery and Sustainability (PHARS) agreement between the HUD, City of Richmond, and RHA. RHA, in collaboration with City of Richmond staff, continues to make progress in improving its operations and addressing outstanding tasks outlined in the PHARS.
Nevin Plaza marks a significant achievement for the Richmond Housing Authority (RHA), in collaboration with EAH Housing, as they have successfully completed the transfer and rehabilitation of Phase I, consisting of 140 housing units. Construction is set to commence on June 1, 2025, with ongoing enhancements, including finalizing improvements in the common areas. This project milestone is a crucial advancement in the revitalization of Nevin Plaza, aimed at enhancing the living conditions for residents.
Additionally, RHA has executed a lease disposition and development agreement with EAH to construct approximately 76 affordable housing units designated for seniors and disabled individuals on the adjacent lot, owned by RHA, as part of Nevin Plaza Phase II.
Nystrom Village, consisting of 100 units acknowledged as the oldest and most challenging property within the RHA’s portfolio, is presently undergoing extensive renovations and modernization efforts. The maintenance teams are diligently addressing resident work orders to enhance the standards of daily living. The maintenance team has successfully completed 350 work orders and renovated 13 vacant units for leasing, which included eight transfers for habitability purposes. To further improve the living conditions at Nystrom Village, the RHA initiated a new Request for Qualifications (RFQ) on May 15, 2024, aimed at identifying a development partner. The forthcoming development agreement intends to replace existing public
June 17, 2025
housing units while also facilitating the construction of new affordable and mixed- income housing in a nearby three-block area. The selection committee is actively evaluating candidate proposals and conducting interviews, with a recommendation to be presented to the Board of Commissioners.
The Hacienda Heights affordable housing site, consisting of 150 units, has been renovated and remains fully occupied, and operating successfully.
The Richmond Village project, dedicated to the redevelopment of affordable housing, received its Commitment to enter into a Housing Assistance Contract (CHAP) in December 2024. This commitment facilitates the initiation of essential processes required to transition the project from public housing to Section 8. Such processes include conducting an environmental review, performing a physical needs assessment, and assembling relevant documentation in anticipation of the financing plan submission.
These undertakings are currently being executed by the Richmond Housing Authority (RHA) in collaboration with McCormack Baron Salazar.
Professional Development and Training:
To enhance our capabilities in maintenance and operations, the staff of the RHA has completed the following training sessions:
HUD National Standards for the Physical Inspection of Real Estate (NSPIRE) training.
HUD Procurement and Contract Management, attended by both RHA and City staff.
Annual Fair Housing Training
City of Richmond Anti-Harassment Training
These training sessions underscore our commitment to continuous improvement and adherence to industry standards.
Financial Update
The Finance Department has made progress regarding RHA financial matters. RHA and City Finance staff continue to work with the auditors, Badawi & Associates, to complete audits. In addition, staff have worked with Matrix Consulting Group to complete a Cost Allocation plan for FY2025-2026 in accordance with HUD requirements set forth in the Title 2 CFR, Part 200 Compliant Version.
Audit Status:
Housing Choice Voucher (HCV) Section 8 Program -
o Under HUD review to finalize the closeout process
2020 Audit - Basic Financial Statements – Completed on April 10, 2025. o 2020 Single Audit – In progress; providing final responses to auditors. 2021 Audit - Data has been provided to auditors and under review for testing. 2022 – 2024 Audits – to be performed in FY 2026
June 17, 2025
2025 – 2026 Audits – to be performed in FY 2027
Capital Grant Funds:
2022 Capital Fund Grant - $1,434,323; RHA has drawn down 89 percent of funds.
2023 Capital Fund Grant - $1,463,024; RHA has drawn down 35 percent of funds.
2024 Capital Fund Grant - 5 Year Activity Plan (YAP) for 2024–2028 has been submitted and approved by HUD.
o Required documents package submitted to HUD for approval.
A considerable amount of City resources have been allocated to assist RHA in meeting obligations to program participants and HUD, impacting other City operations. RHA and City staff members will continue to oversee and monitor RHA’s budget to maintain financial integrity and the health and safety of Richmond residents.
DOCUMENTS ATTACHED:
Attachment 1 - Resolution
Attachment 2 - FY2025-2026 Budget Summary
Attachment 3 - FY2025-2026 Budget Detail
Attachment 4 - FY2025-2026 Position Control