After months of anxiety about the Little Rock housing authority's finances, commissioners learned Thursday about a $1.5 million increase in the agency's revenue for the first six months of 2019 compared with the same period last year.
The Metropolitan Housing Alliance received about $10.2 million in revenue in the first six months of the year, but about $8.7 million from January to June 2018, Ron Hooks, the agency's director of finance, said during a presentation.
Expenses also went up from about $7.6 million in 2018 to $9.9 million in 2019, according to board documents.
"It's a combination of things," interim director Anthony Snell said of the revenue increase during the meeting.
The agency's budget has been a frequent topic in commission meetings in recent months. Concerns started to grow when the housing authority embarked on the renovation of several properties through a federal program, commissioner Lee Lindsey said.
Lindsey is one of two commissioners who serve on the housing authority's finance committee.
Most of the 2019 revenue for the first six months came from the Section 8 housing-choice voucher program. The agency switched several properties from public housing to Section 8 through a federal program over the past year.
The agency is working to lease out all the available units in the towers and will be interviewing applicants in the coming weeks, said Jeannie Owens, director of the voucher program.
"It's a whole lot better than what we did last year," board Chairwoman Leta Anthony said.
Since the agency hired a new manager, fewer residents are failing to pay rent and being evicted, which helps increase revenue, said Kathy Washington, interim director of asset management.
In the second quarter of 2019, the agency collected 99% of the rent for public housing residents with only $504.83 going uncollected, according to a board document.
"Having a new manager there, he is really enforcing [rent collection]," Washington said.
She added that this leads to fewer evictions. When residents fail to pay rent, they receive notices to pay within 14 days. If the agency doesn't get a payment within the 14 days, the agency gives the resident three days to vacate.
But the agency will work on a payment plan with residents if circumstances warrant, Washington said.
Snell said that while the improved revenue is good news, the agency still has work to do. He mentioned roof and foundation repairs needed at Sunset Terrace. The property has 74 units, most of them duplexes.
"We are being challenged," Snell said.
Concern about the agency's financial health stemmed from its shift of several properties from public housing to Section 8 under the federal Rental Assistance Demonstration program, Lindsey said.
The program allows the public agency to partner with private companies to refurbish housing. The agency also handed over day-to-day management of the properties to the company.
The renovations are almost complete at the Fred W. Parris, Cumberland and Powell towers.
In addition to remodeling apartments, the first-floor community areas of the buildings will get a makeover with spaces for playing games, access to computers and new exercise rooms, Laura Narduzzi, the director of operations for Gorman & Co., told commissioners Thursday.
Gorman, a Wisconsin company, is renovating all three towers. The towers have 596 total households.
"I think that we're finally getting a handle on our expenditure," Lindsey said in an interview. "I can see that we have a plan in place."
Finances have often been a focal point of meetings. Twice in 2018, commissioners rejected resolutions that would have set aside $266,000 for employee bonuses.
In May, commissioners questioned staff members about the budget, which prompted Snell to suggest that the July meeting should focus on finances.
"I'm sure that you've gathered that the board has a lot of concerns over the financial health of the agency," Anthony said at the May meeting. "And we are concerned."
Anthony and Lindsey said they hope to get similar midyear reports on finances in the future.
"This just puts us in a better mindset," Anthony said of Thursday's budget report.
Metro on 07/26/2019