Denver Housing Authority

2015 Annual Budget

777 Grant Street

Denver, CO 80203

www.denverhousing.org

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HOUSING AUTHORITY OF

THE CITY AND COUNTY OF DENVER, COLORADO

COMPREHENSIVE OPERATING BUDGET FISCAL YEAR BEGINNING JANUARY 1, 2015

Mr. Richard James Chavez Chairperson

Ms. Jamie Torres Mr. Craig Archibald Treasurer Vice Chairperson Ms. Grace Buckley Mr. Trinidad Rodriguez Commissioner Commissioner Ms. Marian Lawrence Mr. Jeffrey Martinez Commissioner Commissioner Mr. Ronald Fields Mr. Kevin Mullin Commissioner Commissioner

Mr. Ismael Guerrero Executive Director

Ms. Nichole Ford Mr. Christopher Parr Chief Financial Officer Director of Development Mr. Robert Prettyman Ms. Loretta Owens Chief Operating Officer Director of Section 8 Programs Housing Management Ms. Loretta Lovell Mr. Joshua Crawley Director of Procurement and Agency Counsel Special Projects

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TRANSMITTAL LETTER 11 The transmittal letter highlights the accomplishments of the past year, new initiatives and financial planning for the coming year. DHA’S VISION AND GOALS 19 This section discusses the vision for DHA. Also included are the short and long-term goals for DHA, and the outcome and status of each goal. Vision/Mission Statement/Values ............................ 21 Guiding Principles/Strategies ..................................... 22 Strategic Plan – Short and Long Term Goals ......... 23 FINANCIAL MANAGEMENT POLICIES 45 The policies that define the financial responsibilities of the Authority are explained in this section. DHA ORGANIZATION CHARTS 53 This section presents the organizational structure of DHA by division.

DHA Structure .................................................................... 55 Executive Division ............................................................ 56 Finance Division ................................................................ 57 Housing Management Division ................................... 58 Section 8 Department ..................................................... 59 Staffing Summary/Graphs ............................................ 60 BUDGET SUMMARY 63 Presented in this section is the 2015 Budget in summary, changes in fund equity balances, revenue projections and projected payroll.

2015 Comparative Budget Summary ........................... 65 Combining 2014/2015 Budgets by Fund ................... 66 2015 Revenue Summary .................................................... 70 2015 Expenditure Summary ............................................ 72 DHA 2015 Business Units .................................................. 74

BUDGET SUMMARY, continued 2015 Projected Payroll Benefits ...................................... 76 Fund Balance and Fund Equity Changes ...................... 78

TRENDS & PROJECTIONS 79 2015 Budget trends and projections are presented.

Revenue Projections ............................................................. 81 5 Year Revenue Projection ................................................. 83 Historical Revenue Summary ........................................... 84 DHA Rental Revenue Historical Graph ......................... 85 Rental Unit Comparison Graph ....................................... 85 Rental Income and HUD Subsidy Comparison Graph ........................................................................................... 86 Section 8 HAP/Unit Historical Chart ............................. 86 Historical Capital Grant Funding Information .......... 87 Federal Financial Assistance Historical Chart ........... 88 Capital Grant Funding by Year ......................................... 90 Public Housing Operating Fund Historical Proration Levels ..................................................................... 91 Section 8 Administrative Fees Historical Proration Levels ..................................................................... 92 Comprehensive Budget Overview .................................. 94

DIVISION BUDGETS 97 The Division budgets provide financial data, goals and accomplishments for each division within DHA.

Division/Department Structure ............................... 99 Executive Division .......................................................... 100 Finance Division .............................................................. 102 Housing Management Division ................................. 104 Section 8 Department ................................................... 106 Resident & Client Services Department (RCS). ... 107 Workforce Development & Community Initiative Programs (WDCI) ........................................ 109

TABLE OF CONTENTS

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FUND BUDGETS 111 The Fund Budgets provide definition of DHA’s fund structure and present three years of financial data.

Summary of Revenues and Expenditures ............ 113 DHA Fund Structure ....................................................... 114 Fund Budget Statement ................................................ 115 General Administrative Fund .................................... 121 Public Housing Program Fund ................................... 122 Section 8 Program .......................................................... 123 Denver Housing Programs (DHP) ............................ 124 Resident Services Programs) ..................................... 125 Internal Services Funds ................................................. 127 Component Units ............................................................. 130

CAPITAL BUDGETS 155 The Capital Budget section provides an overview of the revenue and expense components of DHA’s Capital Improvements program.

Capital Budget Statement, Sources and Uses ........ 157 Public Housing Rehabilitation Detail ....................... 158 2015 Capital Budget Detail ........................................... 160 2013-2014 Capital Budget Detail Status Update . 163 Impact of Capital Improvement Program on the Operating Budget .............................................................. 166

PROJECT BASED BUDGETS 169 The project based budgets give financial detail for individual project by housing program.

Public Housing Program Detail ................................... 171 Denver Housing Corporation Program Detail ...... 174 Multifamily Housing Program Detail ........................ 175

GENERAL INFORMATION 179 This section provides long-term debt, demographic and statistical information.

General Information Statement ................................... 181 Long-Term Debt ................................................................. 182 Budget Process .................................................................... 193 DHA’s Performance Indicators .................................... 197 Number of Dwelling Units .............................................. 205 DHA Property Characteristics and Unit Composition ......................................................................... 206 Non-Residential Property Information .................... 208 DHA Community Centers ............................................... 209 DHA Special Limited Partnership Units ................... 209 Statistical Information

Employee Demographics ....................................... 210 DHA Controlled Properties/Resident Demographics ............................................................. 212 Section 8 Program Client Demographics ........ 214

Denver Income Limits FY2014...................................... 216 Awards and Recognitions ................................................ 217 In Memory of - Salvadore Carpio ................................ 218 GLOSSARY/ACRONYMS 219 Definitions and acronyms used throughout the book are defined in this section.

Glossary of Terms .............................................................. 221 Acronyms ............................................................................... 229

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The Government Finance Officers Association of the United States and Canada (GFOA) presented an Award for Distinguished Budget Presentation to the Housing Authority of the City and County of Denver for its annual budget for the fiscal year beginning January 1, 2014. In order to receive this award, a governmental unit must publish a budget document that meets program criteria as a policy document, as an operations guide, as a financial plan and as a communication device. The award is valid for a period of one year only. We believe our current budget continues to conform to program requirements, and we are submitting it to GFOA to determine its eligibility for another award.

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O U R M I S S IO NThe mission of the Denver Housing Authority is to

serve the residents of Denver by developing, owning and operating safe, decent and

affordable housing in a manner that promotes thriving communities.

D H A B O A R D O F C O M M I S S I O N E R S The DHA Board of Commissioners consists of nine members appointed by the

Mayor of Denver and approved by the City Council. Each member serves a five-year term. The Board is responsible for establishing DHA policy, long-term goals, objectives and direction.

The Board of Commissioners is also responsible for hiring the Executive Director.

Board meetings are held the second Thursday of each month at 4:00 p.m. Location and/or changes are posted three days prior to the meeting at the

front entrance of the DHA main administrative offices located at 777 Grant Street; or can be obtained by calling the DHA Executive Offices at (720) 932-3106;

or by visiting our Web site at www.denverhousing.org.

Richard Chavez Chair

Craig Archibald Vice Chair

Jamie Torres Treasurer

Jeffrey Martinez

Ronald Fields Kevin Mullin Grace Buckley

Marian Lawrence Trinidad Rodriguez

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TTRRAANNSSMMIITTTTAALL LLEETTTTEERR

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HOUSING AUTHORITY OF THE CITY AND COUNTY OF DENVER

TRANSMITTAL LETTER December 11, 2014

To the Board of Commissioners:

Transmitted in this document is DHA’s adopted fiscal year 2015 annual operating budget. This budget sets forth the operating budget for DHA by major program, department and by development. The budget encompasses all DHA programs and funds. As in prior years, the FY2015 budget includes all real estate development efforts of DHA even though multi-year individual development budgets are approved by the DHA Board prior to the financial closing of each real estate development effort. This budget is intended to ensure that DHA remains financially sound while delivering services according to its mission statement. There has been a continued decline in federal funding for low income housing programs and public housing disinvestments continue at the federal level. DHA is continuously striving to diversify its sources of revenue in addition to achieving efficiencies in its operations. FY2015 has budgeted revenues of $147,537,300 and budgeted expenses of $147,537,300 resulting in a balanced budget. DHA’s FY2015 budget was prepared fully compliant with HUD’s Asset Management Principles. Under Asset Management, the costs of the General Administrative Fund (Central Office Cost Center (COCC)) are paid from fees for services provided to the programs that it supports. HUD’s Assets Management rules require that each housing authority develop and maintain a system of budgeting and accounting for each project in a manner that allows for analysis of actual revenues and expenses associated with each Asset Management Project (AMP) grouping. There is a section in this budget document with project-based budgets for each AMP that DHA manages. DHA's accounting system maintains records that conform to Generally Accepted Accounting Principles (GAAP) as applicable to governments. An Independent Public Accounting firm will perform an annual audit and will issue an opinion on the Comprehensive Annual Financial Report (CAFR). DHA's CAFR conforms to guidelines established by the Government Accounting Standards Board (GASB) for financial reporting and has been receiving Government Finance Officers Association's (GFOA) Certificate of Achievement award for the last nineteen consecutive years.

D H A O V E R V I E W

DHA was established in 1938 as a quasi-municipal corporation authorized by State law to operate in the City and County of Denver. The 1937 National Housing Act created housing authorities to clear slums and blight, to provide safe and sanitary housing for persons of low income and to stimulate business activity. Today, DHA’s vision has been honed to reflect the goal that every individual or family shall have quality and affordable housing, in communities offering empowerment, economic opportunity, and a vibrant living environment. DHA maintains close ties with the City and County of Denver, although it is not a component unit of the City as defined by the pronouncements of the Government Accounting Standards Board. The City is not financially accountable for the operations of DHA, has no responsibility to fund deficits or receive surpluses, and does not guarantee DHA’s debt. The City provides DHA with grants from the City’s HOME (HOME Investment Partnership Program) and CDBG (Community Development Block Grant) allocations for DHA’s project specific development efforts. DHA is the largest Public Housing Authority in the Rocky Mountain Region and the largest landlord of subsidized rental housing in the city of Denver. DHA’s goals are accomplished through a variety of housing programs and activities. These activities include two major programs developed by HUD, the Public Housing Program and the Section 8 tenant based/project based Housing Programs. The governing body of the Authority is its Board of Commissioners (“Board”) comprised of nine members appointed by the Mayor of the City. DHA Board members serve staggered five (5) year terms. The Board appoints an Executive Director to administer the affairs of DHA. The Board is the policy-making body of DHA. The primary source of funding for DHA is the U.S. Department of Housing and Urban Development (“HUD”).

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HOUSING AUTHORITY OF THE CITY AND COUNTY OF DENVER TRANSMITTAL LETTER (CONTINUED)

In addition to federal programs, DHA has created various instrumentalities to explore and develop innovative techniques for providing alternative housing possibilities for the low to moderate-income residents of Denver. These programs have allowed DHA the flexibility to develop several private/public partnerships providing a variety of housing opportunities for Denver residents. In addition, DHA strives continuously to support our residents towards economic self-sufficiency. DHA offers various programs for the children, youth, adults and seniors of our housing programs which are designed to improve their lives.

E C O N O M I C C O N D I T I O N A N D O U T L O O K

The U.S. economy is ending 2014 in its best shape in a decade and is expected to expand further, albeit at a slower pace during 2015. The Federal Reserve’s benchmark short term rate is expected to stay near zero through the middle to late 2015. Unemployment rates are still falling and, as of November, stand at 5.8% nationally, 4.3% in Colorado and 3.6% in Denver. Vacancy rates in Denver have fallen to 3.9% and as a result of the decreasing supply, rents are increasing. Analysts are cautiously optimistic about the economic recovery continuing and increasing in 2015.

H U D B U D G E T F O R 2 0 1 5

As with most other housing authorities, majority of DHA’s operating and capital funding comes from federal dollars provided by HUD in the form of Operating Subsidies, Capital Fund grants and Section 8 housing assistance payments. DHA is also the beneficiary of significant Low Income Housing Tax Credit Equity dollars provided by investors for the provision of affordable rental housing construction and rehabilitation. In December 2014, Congress passed a 2015 combination continuing resolution and omnibus spending package for 2015, just in time to avoid a government shut down. While the funding for HUD programs remains well below 100% of eligibility, it appears that it will be close to the estimates used in preparing this budget. The budget presented here factors in 14% total funding cuts to the public housing program, 23% cut to Housing Choice Voucher program’s Administrative fees and 1% funding cuts to the Housing Assistance Payments (payments to Landlords of the HCV program). As final funding pro-rations for FY2015 become available appropriate revisions will be proposed for DHA.

I M P A C T O F H U D F U N D I N G C U T S

Housing authorities have been underfunded for most of the past decade in both the major housing programs, i.e. Public Housing and Section 8 Housing Choice Vouchers. To cope with funding cuts, housing authorities have resorted to pay cuts, concessions, layoffs and reduction in services to tenants. Elimination of services affects the public housing residents who are mainly children, elderly and disabled. DHA had to restructure its workforce various times over the last few years to maintain a balanced budget.

For 2015, DHA is budgeting an operating subsidy cut of 14% in the Public Housing program. Section 8 Housing Choice Vouchers are projected to be funded at 99%. Section 8 administrative fees for 2015 are projected to be underfunded by 23%. DHA’s strategy to manage decreased federal funding has been to limit hiring, strategically reduce non-routine maintenance, and employ creative, mixed-finance capital developments to maintain and expand its affordable housing portfolio. Going forward, DHA will continue to identify methods of becoming more self-sufficient. DHA continues to enter into public/private partnerships in the creation of mixed income communities, which will promote the economic vitality of the DHA communities.

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HOUSING AUTHORITY OF THE CITY AND COUNTY OF DENVER TRANSMITTAL LETTER (CONTINUED)

P R I O R I T I E S F O R T H E N E W Y E A R

The Board of Commissioners has reaffirmed DHA's mission to serve the residents of Denver by developing, owning, and operating safe, decent and affordable housing in a manner that promotes thriving communities, while staying within DHA's anticipated revenue sources. Another priority is to continue along the path of becoming more entrepreneurial in our efforts to increase non-HUD revenues through partnerships with other entities. Every effort was made during this budget process to operate more efficiently and effectively in the coming year. This included requiring balanced budget submittals from each property, use of a fee-for-service budget for the Central Office, and a continuous cost analysis of centralized services and operations. Ensuring long-term fiscal stability, preserving key assets and improving quality of life for DHA residents continue to be the key goal of DHA’s budget process. DHA and AFSCME Local 535 will be in the final year of a three-year contract in 2015. Sixty percent of DHA’s FY2015 regular full-time employees fall under the Union classification. During 2012, the DHA Board and management developed a new three-year strategic plan for 2013-2015. The leadership team sought to create an innovative yet grounded plan using insight from all departments and staffing levels throughout the Authority. The result was a plan that focuses on six initiatives that are described in the next section of this budget.

Sun Valley Revitalization In 2013, DHA was awarded a Choice Neighborhoods Initiative (CNI) planning grant for our Sun Valley property. Sun Valley is a 333 unit property that was built in the 1950s. This 33 acre site is one of the oldest housing sites in DHA’s portfolio. The CNI grant provides funding to create a master plan for a mixed-income, higher density rental and homeownership community with active mixed-use commercial space. This plan will be in line with the Decatur-Federal Station Area Plan which guides future growth and change near the light rail station which is minutes from the property.

South Lincoln Revitalization In 2010, DHA completed the master planning for the revitalization of South Lincoln Park Homes which was built in the early 1950s. The first phase of the revitalization effort of the neighborhood was completed in January 2012 with the construction of a 100 unit senior/disabled public housing building in an adjacent parcel of land using leveraged ARRA funding. DHA applied for a HOPE VI grant for the remainder of the phases at South Lincoln in 2010 and was awarded $22 million in 2011. Since 2012, three (3) addition phases have been constructed adding 257 units of mixed income housing, 79 of which being public housing. In 2014, construction started for Phase VI and will add 94 units of mixed income, 36 units being public housing. Also in 2014, Phase V closed which was a land sale to Habitat for Humanity for construction of affordable single family residences. Phases II, III, IV, and VI are mixed income housing which consists of 30% of each type, public housing, Low Income Housing Tax Credits (LIHTC) and market rate. The market rate units have also been very successful and have experienced near 100% occupancy levels. Overall the benefits from combining HOPE VI, public housing, tax credits and market rate rents have resulted in revitalizing a community and creating a positive and healthy neighborhood that had been over 65 years old. DHC II – Casa Loma, Syracuse and Goldsmith DHA is undergoing the comprehensive rehabilitation of three project based Section 8 properties (Casa Loma – 83 units, Syracuse - 100 units and Goldsmith - 35 units) owned by DHA’s instrumentality, Denver Housing Corporation (DHC). The rehab is funded by Low Income Housing Tax Credits and $21 million in Private Activity Bonds. This is a major rehabilitation effort with a combined construction budget over $40 million with DHA serving as the Master Developer. Construction was completed in October 2014 for Casa Loma and is expected to be completed by April 2015 for Syracuse and Goldsmith.

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HOUSING AUTHORITY OF THE CITY AND COUNTY OF DENVER TRANSMITTAL LETTER (CONTINUED)

B U D G E T S U M M A R Y

The adopted budget for 2015 is $147,537,300. As in prior years, majority of DHA’s operating revenues is coming from federal financial assistance to provide low-income housing. The federal government funds $100.8million of the total 2015. Rental income of $21.3 million is expected to be collected. Interest income of $0.2 million and other revenues of $7.5 million constitute the remainder of the 2015 revenues. Also included in 2015 budget is $17.7 million in Capital Financing for development activity. The adopted 2015 budgeted expenditures include $56.6 million in Housing Assistance Payments (HAP) to Section 8 HCV landlords. Capital Investment of $35.2 million is budgeted for the year. Utility expenses are budgeted at $7.7 million. Debt service budget of $7.0 million is comprised of principal and interest payments on DHA obligations comprising of bonds and loans. Administration expense of $21.6 million and general expense of $2.4 million are comprised mainly of salary, benefits and general costs. Maintenance expense of $13.0 million includes salaries of the maintenance staff, the costs of materials and contracted services. Operating and replacement reserves are budgeted at $3.9 million. All administrative expenses including property management salaries are budgeted in the administration line item. General expense category is mostly DHA’s insurance premium costs.

Increase2013 2014 2015 (Decrease)

Revenues - All Sources Budget Budget Budget From Prior YearRental income $15,419,872 $17,185,098 $21,331,545 24.1%Interest income 203,201 186,552 205,333 10.1%Management & Other Fees 4,060,691 6,588,094 4,756,432 (27.8%)Federal financial assistance 111,382,030 98,606,252 100,823,238 2.2%Other income 1,515,255 2,560,161 2,528,052 (1.3%)Use of replacement & operating reserves 450,000 263,685 225,000 (14.7%)Capital financing/Tax Credit Equity 28,450,000 34,200,000 17,667,700 (48.3%) Total $161,481,049 $159,589,842 $147,537,300 (7.6%)

All ExpendituresAdministration $18,149,409 $19,810,941 $21,393,549 8.0%Rent to owners 59,104,969 53,203,380 56,646,938 6.5%Utilities 7,265,974 7,419,995 7,696,629 3.7%Maintenance 12,305,231 11,699,525 13,028,173 11.4%

Debt service/Interest expense 5,608,141 5,407,364 7,005,247 29.6%General 1,894,716 2,221,353 2,380,206 7.2%Operating/Replacement Reserves 2,930,163 6,202,304 4,160,296 (32.9%)

Capital Investments 54,222,446 53,624,980 35,226,262 (34.3%) Total $161,481,049 $159,589,842 $147,537,300 (7.6%)

Net of interfund transfers and interfund revenues and expenditures.

2015 BUDGET SUMMARYCOMPARATIVE SUMMARY OF TOTAL 2015 REVENUES AND EXPENDITURES

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HOUSING AUTHORITY OF THE CITY AND COUNTY OF DENVER TRANSMITTAL LETTER (CONTINUED)

Rental revenues are budgeted higher in 2014 to reflect rehabilitated units coming on-line from public housing, DHC programs, and non-HUD programs. Rental revenues represent all tenant rents paid in the public housing units, Denver Housing Corporation units, and all DHA non-HUD units in addition to the rents generated from DHA’s commercial leases. Interest revenues are budgeted higher due to slight incline in interest rates. Federal financial assistance from HUD of $100.8 million includes $61.3 million in Housing Assistance Payments for the Section 8 and tenant based program clients, $17.9 million in public housing operating subsidies and the remainder in various capital grants and other resident program grants. Other income and contributions of $2,528,052 consist mainly of service charges and late payment charges to tenants, lease revenues from rooftop antennas, DHA Partnerships’ management fees and ground lease revenues. All Capital financings are shown as revenue sources due to DHA being the Developer in various mixed finance real estate developments. These sources include, but not limited to, Low Income Housing Tax Credit (LIHTC) equity, Construction and Permanent financing from banks and various HUD Capital grants. On the expense side, lease payments to Section 8 landlords account for 38% of total expenditures. Administrative expenses include administrative salaries and costs of administrative supplies and services in all programs. Utility expenses paid by DHA for the public housing units and for the DHA facilities are budgeted at $7.7 million for FY2015. Maintenance expenditures account for the maintenance staff’s salaries, maintenance material costs and other maintenance related vendor contracts. Maintenance expenses increased 11.4% for 2015. Debt service of $7.0 million is budgeted to cover scheduled payments of principal and interest on various DHA obligations. General expense of $2.4 million is comprised of insurance costs and payment in lieu of taxes payments. Development and capital investment budget of $35.2 million account for the additions and betterments to DHA’s real estate assets. The 2015 budget for real estate development activities is 34.3% lower than 2014 reflecting a decrease of development activities for 2015.

WHERE THE MONEY COMES FROM – ALL REVENUE

61.79%

10.77% 0.12%

1.60%

21.43%

0.16%

4.13% 2014

2014 Total Revenues By Category $159,589,842

68.34%

14.46%

0.14%

1.71%

11.98%

0.15%

3.22%

2015 Federal FinancialAssistance

Tenant Rental Income

Interest Income

Other Income &Contribution

Capital Financing

Use of operatingreserves

Property Mgmt &Other Fees

2015 Total Revenues By Category $147,537,300

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HOUSING AUTHORITY OF THE CITY AND COUNTY OF DENVER TRANSMITTAL LETTER (CONTINUED)

WHERE THE MONEY GOES – ALL EXPENDITURES

2 0 1 5 B U D G E T H I G H L I G H T S / A S S U M P T I O N S

The highlights of the 2015 budget and the assumptions used in developing DHA’s 2015 Operating Budget are as follows:

• The FY 2015 DHA Comprehensive budget is for $147,527,300, a decrease of $12,052,542 (7.6%) from FY 2014.

• The major Capital projects for 2015 are: South Lincoln Hope VI redevelopment, Sun Valley Master Planning (CNI), Syracuse and Goldsmith rehabilitation, St. Anthony/West Colfax Project and Energy Outreach Colorado. The award of a $22 million Hope VI Grant is facilitating the redevelopment of South Lincoln.

• Use of $225,000 of Section 8 Operating Reserve is budgeted to cover administrative costs.

• Administrative fee revenue is budgeted at 77% for Section 8.

• Housing Assistance Payments (HAP) are budgeted at 99%.

• 94% lease-up is budgeted for the DHA Section 8 program in 2015.

• DHA will administer 6,849 Section 8 vouchers in FY2015. This is an increase of 159 vouchers from 2014.

• DHA is budgeted to manage 4,298 rental units in 2015 between the public housing and other DHA HUD and non-HUD programs. This decrease of 84 units from 2014 is due to the demolition of 88 units at South Lincoln and addition of 4 units at Casa Loma.

• Operating subsidy for the public housing program is budgeted at 86% funding in FY2015.

33.34%

12.41%

4.65% 7.33% 1.39%

3.39%

33.60%

3.89%

2014

2014 Total Expenditures by Category $159,589,842

38.39%

14.50% 5.22% 8.83%

1.61% 4.75%

23.88% 2.82%

2015 Rents to Owners

Administration

Utilities

Maintenance

General

Debt Service

CapitalInvestments

Replacement/OperatingReserves

2015 Total Expenditures by Category $147,539,315

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HOUSING AUTHORITY OF THE CITY AND COUNTY OF DENVER TRANSMITTAL LETTER (CONTINUED)

• 97% occupancy is projected for DHA’s established rental developments.

• DHA’s central office building is budgeted to have $293,000 deficit due to loss of tenants, this deficit is covered by an operating transfers from COCC.

• DHA investments are budgeted to earn an average of 0.40% in 2015.

• The 2015 budget projects 260 regular full-time employees. This is an increase of two employees from 2014. The Finance and Real Estate departments each added one employee. Two employees were transferred from Section 8 to Housing Management.

• Annual salary increase of 1% is budgeted for eligible regular full-time staff in 2015.

• Merit increase in salary of 3% is budgeted for eligible regular full-time staff in 2015. • Per DHA’s Union contract and Personnel Policy for 2015, DHA is budgeted to absorb 60%, 70% or 80%

of health insurance premiums based on the types of plan chosen by employees. DHA’s health insurance premiums increased by 7% from 2014 to 2015.

A G E N C Y P L A N

The Quality Housing and Work Responsibility Act of 1998 (QHWRA) created the requirement of the submission to HUD of an Agency Plan by all public housing authorities. The Agency Plan is a comprehensive guide to PHA policies, programs, operations and strategies for meeting local housing needs. Agency Plan includes a 5-year plan submitted every five years and an annual plan, which the PHA submits every year. The Agency Plan is required to be submitted 75 days prior to the beginning of the fiscal year. The DHA Board approved the 2015 Agency Plan in October 2014. The Agency Plan was also submitted to HUD in October 2014 and we are currently awaiting approval by HUD.

P H A S S C O R E

HUD’s Public Housing Assessment System (PHAS), provides a comprehensive and strategic measurement of a PHA’s essential operations. PHAS assesses the physical condition of the housing authorities’ public housing units, management operations of public housing, the Housing Authority’s financial condition and residents’ satisfaction with living conditions. For the fiscal year ended December 31, 2013, DHA submitted all required reporting to HUD and received a final score of 93.

S E M A P S C O R E

HUD’s Section 8 Management Assessment Program (SEMAP) grades an agency’s management capabilities under the Section 8 Program. SEMAP has 14 key indicators, which are designed to improve HUD’s oversight of the Section 8 tenant based rental assistance programs. For the fiscal year ended December 31, 2013, DHA scored 103 percent, which continues to place DHA as a high performer in the Section 8 program. FY2014 data will be submitted to HUD in February 2015 and a score will be determined by HUD.

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HOUSING AUTHORITY OF THE CITY AND COUNTY OF DENVER TRANSMITTAL LETTER (CONTINUED)

A W A R D S & R E C O G N I T I O N

The Government Finance Officers Association of the United States and Canada (GFOA) presented an Award for Distinguished Budget Presentation to the Housing Authority of the City and County of Denver for its annual budget for the fiscal year beginning January 1, 2014. In order to receive this award, a governmental unit must publish a budget document that meets program criteria as a policy document, as an operations guide, as a financial plan and as a communications device. The award is valid for a period of one year only. We believe our current budget continues to conform to program requirements and we will submit it to GFOA to determine its eligibility for another award. DHA’s Finance/Administration Division was presented with a Certificate of Achievement in Financial Reporting for Excellence for 2013. The Finance/Administration Division also received from Housing Authority Insurance Group – Low Loss Achievement and Outstanding Risk Control Program awards. DHA’s Resident Community Services received recognition from the National Association of Housing and Redevelopment Officials (NAHRO) with the following 2014 awards – the National Award of Excellence for the Patient Navigator, and Awards of Merit for the Advanced Manufacturing Academy, Health Living Program and the Osage Café. DHA also received the following awards and recognitions:

• 2014 Champion of Change in Solar Deployment from the White House • Mayor’s Design Award Active Spaces – Mariposa District Active Stairs • Appreciation Award/Valued Community Partner from Community college of Denver Education

Opportunity Center (EOC) • Community Outreach and Leadership Award for HOPE VI Summer Youth Program from Metropolitan

State University of Denver and Shades of Blue • Counselor of the Year Award for Becky O’Brien from the Colorado Foreclosure Hotline

A C K N O W L E D G M E N T S

A great deal of effort has gone into the development of this budget and has involved many individuals throughout DHA. Our sincere appreciation goes to each and every employee who contributed to the preparation of this document and to the division managers who spent many hours developing balanced budget submittals. We would like to especially acknowledge James DiPaolo, Deputy Chief Financial Officer and Nancy Guereca-Munoz, Budget Officer, for their efforts in preparing the budget and this document. Without the leadership and support of the Board of Commissioners, preparation of this budget would not have been possible. We greatly appreciate the guidance and advice given to staff for this budget preparation by the DHA Board’s Finance and Operations Committee. Respectfully submitted,

Ismael Guerrero Executive Director

Nichole Ford Chief Financial Officer

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VVIISSIIOONN//GGOOAALLSS// IINNIITTIIAATTIIVVEESS

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THIS PAGE IS LEFT BLANK

INTENTIONALLY.

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VISION

DHA’s vision is that every individual or family shall have quality and affordable housing, in communities offering empowerment, economic opportunity, and a vibrant living environment.

MISSION STATEMENT

DHA's mission is to serve the residents of Denver by developing, owning, and operating safe, decent and affordable housing in a manner that promotes thriving communities.

VALUES

• Respect

We treat tenants, employees, Board of Commissioners, and the public with a high level of respect.

• Honesty

We promote and encourage the highest level of ethics within the city and community.

• Teamwork

We promote a cooperative working relationship among tenants, employees, Commissioners, and external partners because; we are all members of a team striving to improve housing and economic opportunities in our community.

• Integrity

We conduct our internal and external affairs with impartiality and equity. We strive to “do the right thing”, even when it is difficult.

• Diversity

We embrace the personal and cultural variations that enrich our community.

• Excellence

By utilizing the creativity and innovation of staff, board and tenants, we shall continue to lead the nation in providing high quality housing and tenant services.

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GUIDING PRINCIPLES AND STRATEGIES

I. Promote Collaborative Partnerships and Teamwork

DHA will be a leader in forming strategic partnerships that lead to the maximum leveraging of financial, human and organizational resources. DHA staff will be recognized for being open, engaged and dependable and for their focus on advancing the mission of the agency at every opportunity.

II. Manage Our Assets Responsibly

DHA will utilize industry best practices to maintain and modernize our real estate portfolio. Our residential properties will be healthy and thriving communities. Our commercial properties will be managed and leveraged to provide maximum benefit to DHA and to our mission.

III. Expand Housing Opportunities for All

DHA will be recognized as one of the City of Denver’s top developers by designing and developing award-winning residential communities that create a continuum of housing opportunities for those most in need. Our developments will lead to neighborhood revitalization through strategic alliances with community stakeholders and strategic leveraging of mixed-use market opportunities.

IV. Fiscally Responsible Operations

DHA will be recognized for its sound fiscal management; the diversity of its revenue generating initiatives; and its innovative financing strategies. DHA will align its financial resources to best support its strategic goals and the overall mission of the agency.

V. Empower Our Residents

DHA residents will be empowered to participate in the governance and oversight of the organization and will be supported in their individual and collective efforts to improve their condition and the quality of their neighborhood.

VI. Maximize Opportunities for Disadvantaged Residents, Businesses and Communities

DHA will promote resident employment and micro-business formation. DHA will be recognized for its innovative programs that achieve high levels of MBE/WBE participation and create economic impact in the communities we serve.

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Denver Housing Authority Strategic Plan

Recognizing the dynamic shifts underway in the realm of public, affordable housing and the opportunities and challenges that the current housing market presents, the Denver Housing Authority undertook a strategic planning process in 2012 to align its mission and vision with the anticipated demands of FYs 2013-2015.

DHA’s leadership sought a plan that embodied three key principles:

1. A bold plan embracing the changing environment and seeking new ways to achieve the mission of the organization;

2. A grounded plan with a high likelihood of implementation; and 3. An inclusive plan developed from multiple perspectives across departments – from

leadership to line staff – that built broad ownership of the plan’s goals and strategies.

The Strategic Plan is composed of six areas:

• Housing Initiatives • Vibrant Communities Initiatives • Resident Empowerment and Economic Opportunity • Business Improvements • Employee Initiatives • Communications

The details of the Goals/Desired Outcomes, Metrics, Strategies, Benchmarks, and Partners are listed on the following pages.

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Housing Initiatives At the core of DHA’s mission is the provision of housing for those most in need within the City of Denver. With declining public housing funding and related federal funds combined with the goal of developing economically integrated communities, the means DHA must undertake to meet its mission have shifted.

This area of the strategic Plan describes both the traditional and emerging methods DHA will use for development housing, maintaining units and planning for the shifting population demographics that we expect to experience.

Preservation

DHA Outcome Maintain units on a 20 Year Life-Cycle while maximizing building energy and operation efficiency.

Metrics • DHA will achieve 5% reduction in energy consumption through implementation of Energy Performance Contract, Phase 2.

• All immediate needs determined by Physical Needs Assessments are completed within three years.

• All EPC and ECMs are completed by year end 2013. • Develop and update portfolio wide capital plan annually to be incorporated into DHA's

agency plan. • Operational Efficiency Metrics will be developed through LEAN process reviews. • Reserves for capital improvement are sufficient to meet the capital plan. • Staff will present a quarterly Forecast of Capital Improvement Expenditures Report to

Board of Directors. Strategies 1. Energy Performance Contract Phase II and Power Purchase Agreement

Implementation. 2. Implement 5 Year Capital Investment Plan based on completed 5 Year CPNA's include

replacement reserve and financing plan. 3. Annual Perform HUD Required Five Year PNAs and Energy Audits to evaluate Energy

Improvements and inform capital investments. 4. Hire an Energy Manager by May 1, 2013 to manage retrofits, resident behavior, and

building operations. Benchmarks • Hire consultants to implement EPC2

• Staff are trained in energy conservation measures within three years. • Resident energy conservation program launched. • 5 year capital plan completed

Partners Energy Outreach of Colorado, LEAP, State of Colorado, Governor's Energy Office, City and County of Denver, Xcel Energy

DHA Outcome One-for-One Replacement of subsidized units during any redevelopment.

Metrics • Create report that identifies nonperforming assets. • Dispose of underperforming assets. • Purchase replacement units.

Strategies 1. Develop the troubled asset report that identifies underperforming assets. 2. Adopt a recovery plan for all properties on the troubled asset report.

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Benchmarks • Production of report to track under and non performing strategies. DHA Outcome Ensure that DHA supportive services and housing/unit types meet

the needs of the evolving population. Metrics • Resident survey 20% rate of return 1st year, 25% 2nd year, 30% 3rd year.

• Demographic information report on resident need. Strategies 1. Complete resident surveys annually to evaluate resident needs and determine aging in

place and economic self-sufficiency supportive service needs. 2. Complete an annual resident need and demographic report to identify resident needs

and trends. 3. Advocate to and share information with related agencies.

Partners HealthSET, Enterprise Foundation, Total Longterm Care, Denver Health and Hospitals, Leading Age, Catholic Charities, DU Bridge, Denver Public Schools

Production

DHA Outcome Increase the number of affordable housing units serving families between 30% and 50% of AMI.

Metrics • Capital return realized from disposal of underperforming assets. • Leverage equity raised from sale of assets is 8 to 1. • Capitalize an internal predevelopment fund at $5 million to $10 million. • Through South Lincoln/Mariposa neighborhood revitalization and Sun Valley Homes

redevelopment, increase HCV vouchers for relocation • Purchase 100 foreclosed properties through REO bulk sales. • Increase number of Project Based units by 10% per year for next three years. • Acquire or construct one new affordable housing development within the next three

years. • Increase DHA’s rental housing portfolio by 10% (approximately 600 units), with a goal

that 60% of those units be affordable to families earning between 30% and 50% AMI. Strategies 1. Pursue predevelopment, acquisition, infrastructure, and capital funding from Non-HUD

sources such as Department of Transportation, Foundations, and other non-traditional funding sources.

2. Active participation on current and future Fastracks Corridor Working Groups. 3. Growth of HCV Pool through strategic disposition and replacement of Public Housing

Units. 4. Strategic Acquisition of troubled and expiring subsidized and nonsubsidized housing

units. 5. Work with City of Denver to identify troubled properties owned by area nonprofits. 6. Develop and adopt an acquisition policy. 7. Work with HUD to identify expiring project based Section 8 contracts. 8. Within the Housing Choice Voucher Program:

a. Expand PBV partnerships. b. Partner with HUD on transition of Opt-Out Properties. c. Monitor Regional Consolidation and Outsourcing of HCV program.

Benchmarks • Hire broker to establish value of DHA dispersed properties considering criteria to identify and prioritize underperforming properties for Demo/Dispo

• Create a report of strategic acquisition candidates. • Partner with for profit and nonprofit agencies to provide Project Based Section 8 in

existing and new construction developments.

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Partners City of Denver, Department of Transportation, Urban Land Conservancy, City of Lakewood, RTD, City of County of Denver, Housing and Urban Development, Area Banks/Mortgage Companies, Division of Regulatory Agencies Mercy Housing, Rocky Mountain Mutual Housing, Colorado Coalition of the Homeless, Veterans Administration, Del Norte, Housing and Urban Development and Opt-Out owners"

DHA Outcome Focus new development toward mixed-income communities in transit corridors.

Metrics • Complete construction of 437 mixed-income units at Mariposa HOPE VI. • Convert remaining 80 units of South Lincoln homes public housing units to mixed-

income. • Plan to 330 units redeveloped of Sun Valley in mixed income TOD model. • Identify one DHA led TOD redevelopment along the East Corridor.

Strategies 1. Complete 90 units per year at Mariposa. 2. Identify funding sources and development approach for Mariposa non Hope 6 units. 3. Participate on East Corridor Working Group with DRCOG and secure site control of one

TOD redevelopment opportunity. DHA Outcome In revitalizing communities, increase opportunities for affordable

home ownership through programs, partnerships, and disposition. Metrics • Successful development of 6 new homeownership units at Mariposa through Habitat

partnership. • 30 New Home owners through DHA Homebuyers Club. • Improve the success of post-purchase of home ownership clients – needs baseline

Strategies 1. Sustain success of homeownership for post-purchase home ownership clients. 2. Strategic Disposition of Dispersed Units to raise additional capital for new development. 3. Determine leveragability based on equity raised. 4. Strategic Acquisition of troubled and expiring subsidized and nonsubsidized housing

units. 5. Facilitate development of 20 affordable home ownership units on DHA owned property 6. 30 Home buyer club purchases at 10 per year 7. Evaluate potential development joint ventures to increase housing production.

a. Partner with-for profit developers to expand mixed income communities. b. Partner with local nonprofits to increase housing production.

Benchmarks • Hire broker to establish value of DHA dispersed properties considering criteria to identify and prioritize underperforming properties for Demo/Dispo.

• Create report that identifies nonperforming assets Partners Northeast Denver Housing Center, City of Denver, Del Norte, NEWSED, Colorado Housing

Assistance Corporation, Colorado Housing and Finance Authority, Colorado Coalition for the Homeless, Tax credit recipients

Special Needs Housing

DHA Outcome Expand supportive housing options for families and households with special needs.

Metrics • Identify demographics for underserved populations in City and County Denver to determine housing needs; Initial report by January 1, 2013 -- updated annually thereafter

• Apply for 100% of VASH and special needs vouchers funding when available

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Strategies 1. Advocate for additional special needs vouchers. 2. Grow the VASH and other Special Needs voucher programs. 3. In partnership with other housing and service providers, create a Continuum of Care

model within DHA portfolio that allows seniors and individuals with disabilities to live independently and age in place successfully for the longest period possible.

Partners Veterans Administration, Housing and Urban Development, Colorado Coalition for the Homeless, Mental Health Corporation of Denver, Colorado Health Network, Department of Human Services, Atlantis Community Inc., Mercy Housing. HealthSET, Total Longterm Care, Denver Health and Hospitals, Department of Human Services, Catholic Charities, DU Bridge, Denver Public Schools, Mental Health Corporation of Denver, Denver Coalition for Integration, Metro Crisis, Volunteers of America, Seniors Inc.

DHA Outcome Enhance partnerships to increase comprehensive services on site to increase resident retention.

Metrics • Increase partner membership by 10% per year for three years, to Program Coordinating Committee to discuss, enhance, and increase continuum of care services on site

Strategies 1. Develop partnerships for Continuum of Care within DHA portfolio. Partners HealthSET, Total Longterm Care, Denver Health and Hospitals, Department of Human

Services, Catholic Charities, DU Bridge, Denver Public Schools, Mental Health Corporation of Denver, Denver Coalition for Integration, Metro Crisis, Volunteers of America, Seniors Inc.

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Vibrant Communities Initiatives For over two decades, the Denver Housing Authority has been a leader in moving away from obsolete housing models that isolate families in areas of concentrated poverty. This goal has been achieved through the implementation of progressive community revitalization including: developing mixed-use, mixed income communities designed to provide a link to life’s essentials (i.e., employment, childcare, transportation, schools, etc.); creating a sense of place and belonging for its residents; designing environmentally responsible housing sites; and offering residents opportunities for connecting to diverse social networks that increase the likelihood of their upward mobility.

In this section DHA clarifies its role in creating vibrant living communities in Denver while identifying the strategic partnerships required to undertake this broader ecological approach.

Safe and Healthy Living

DHA Outcome DHA Developments will be safe places to live. Metrics • Decreased crime rates in DHA housing and facilities

• RCB Participation • LRC meeting attendance increases by 5% • # of LRCs engaged with neighborhood associations and other neighborhood groups

/organizations. • Ensure timely resolution of resident concerns as tracked on the RCB Report Card

Strategies 1. Evaluate and expand the Good Neighbor model partnership with Denver Police Department to Districts 6 and 4.

2. Evaluate the effectiveness of the Violence Task Force (VTF) program, improve and re-market.

3. Enhance education on VTF options 4. Create resident safety coalition with active reporting 5. Ensure timely resolution of resident concerns and developing new programs based on

data gathered. 6. Research and implement best practices in resident safety.

a. Evaluate the potential for an ombudsman/interview program in which outside party interviews residents to better understand resident concerns/needs

Benchmarks • Track the Number of followers and the Level of communication Developed as a Result of our Conversations (example., tweets)

• Track in annual Resident Survey use of Social Media • Incorporate safety benchmarks in resident surveys

DHA Outcome DHA will be designed to encourage healthy living choices through purposeful design and programming.

Metrics • % of DHA residents with Health Coverage • Increase in miles of accessible walking paths connected to a pedestrian network. • Increase in miles of accessible bike paths connecting to pedestrian network. • # of resident students with Parks and Rec passes. • Increase health checks to health partners. • % of square feet of DHA space designated to gardens.

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Strategies 1. Work with Health Services Providers to create access to important health services, resources and education.

2. Work with Heath/Healthy Living Services Providers to collect health data. 3. DHA will design buildings and sites that:

a. Facilitate urban gardens & urban farming. b. Provide lighting improvements - site plan strategy should include design oriented

lighting. c. Facilitate urban gardens and healthy food access

i. Engage with partners in neighborhood food hub development in DHA neighborhoods.

4. Create walkable neighborhoods - promoting & enabling walkability. 5. Develop smoke-free housing and living environment policy.

Partners LiveWell, Denver Parks and Rec, BCycle, DUG, Co health foundation, VOA, Health Set, DPS

Sustainable Development

DHA Outcome Strive to make all DHA developments Green, Sustainable, and provide access to essential services.

Metrics • Achieve Green Communities and LEED Designations. • Achieve EPC2/ ECM goals • 50% reduction in energy (including water) in new construction

Strategies 1. Implement an agency-wide Recycling Program. a. Work with City on recycling and compost

2. Conservation initiatives in the area of Resident Behavior and Sustainable Infrastructure. 3. Incorporated "smart growth principles" & "complete streets" planning into

development. 4. Design and develop energy-efficient buildings working towards a Net-Zero energy

consumption goal. Benchmarks • Develop Monitoring & Verification reports of energy consumption goals by property.

• Adaptation of plans using reports and on-going design principles DHA Outcome New communities will offer multi-modal and affordable transit

connections. Metrics • Increase access to affordable public transit

• Increase access to alternative programs (car share, b-cycle) • Increase miles of pedestrian trails and bike paths connected to pedestrian networks.

Strategies 1. Car reduction Initiative through B-Cycle expansion 2. Shared-car programs, and other alternatives to car ownership to promote TOD

development on light rail. 3. Work with RTD on Ecopasses.

DHA Outcome DHA leadership will adopt a “vibrant living environment policy/guidelines” which codifies a core set of vibrant living strategies into all DHA development activities.

Metrics • Vibrant living environment policy adopted Strategies 1. Work with the board to develop a clear policy framework for vibrant living communities. Benchmarks • Vibrant living environment policy framework receives board approval.

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Economic/Empowering Spaces

DHA Outcome DHA will be a catalyst for and strategically invest in commercial space that creates access to services and programs offering economic empowerment opportunities and personal sustainability.

Metrics • Annually review DHA’s commercial portfolio with Board and adopt goals for leased space coming available in the next 12-24 months.

• Within larger neighborhood revitalization efforts, identify and report on community needs for programs, services, and amenities.

Strategies 1. Be a catalyst in creation of essential services such as grocery stores, banking services, early childhood education serving needs of DHA residents.

2. Where feasible, create or catalyze appropriate community service space that makes essential social services available to DHA residents.

DHA Outcome DHA will ensure the development of areas which foster human intersection and social support.

Metrics • Board and staff will set a goal for the percentage of a buildings square footage that should be developed as community / commercial space.

Strategies 1. Evaluate the feasibility of a minimum of 5% of available square feet as community and commercial space within new re-development projects.

2. Develop mixed-use communities with ground level and free standing commercial space for Economic Empowerment activity.

3. Design of developments which result in everyday interaction of residents 4. Create minimum "1% for the Arts" fund for each new development. 5. Promotion of neighborhood coops

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Resident Empowerment and Economic Opportunity DHA’s purpose is not solely to provide housing, but to provide housing as a means for resident to be empowered and become self-sufficient. As a developer, owner and manager of local real estate assets, the Denver Housing Authority has a unique opportunity to: strategically coordinate critical services and programs that provide stability at critical moments; help residents prepare for their next steps; and assist residents in taking charge of their own lives. This section begins to clarify the roles of DHA and its key partners in the provision of critical services and programs.

Youth and Families

DHA Outcome Youth and their families will obtain the life skills needed to achieve academic success and will have access to services that ensure their escape from generational poverty, graduating from high school and no longer requiring subsidized housing.

Metrics • Number of: o National Certifications Attained o Graduation and Education Goals o Literacy and Math Gains

• School readiness for 0-3 Year-olds • Prepare Parents as Teachers • Increased number of pre-school programs • Increased learning in the Home • Track and report annually on participation in afterschool programs • Track and report annually on academic achievement • Benchmark Rec Center enrollment through DHA. • Cross-reference DHA resident enrollment at Rec Centers • Track site (Parent Portal) usage by residents • Reductions in Gang Related Criminal Activity • Capital funds raised for build out. • Enrollment of current residents

Strategies 1. Increase enrollment in YEA camps, including growth of fee-for-service classes. 2. Hold 6 Academies per year. 3. Launch the Osage Café venture. 4. Increase 0-3 programs at sites where they don’t exist. Westwood Homes is first

expansion site. 5. Stabilize programs during rehab transitions at Mariposa. 6. Finalize program concepts with Boys-Girls Club at Mariposa. 7. Ensure Bridge transition to Neighborhood House is a successful expansion. 8. Conduct outreach and education on use of Parks new Quick Form. 9. Coordinate with Parks on data sharing. 10. Measure education, outreach and training efforts to launch portal initiative. 11. Education and recruitment of youth into programs. 12. Promote awareness of DHA programs. 13. Increase enrollment at Art Space 14. Successful launch of Youth Media Studio

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Partners Denver Public Schools (DPS), Denver’s School Compact, Northeast Denver’s Children’s Corridor, Youth Safety Initiative, Denver Foundation - Hunger Free Colorado, Youth Research Summit, and DPS STAR / SWAP services for disabled youth.

Adults Moving to Work

DHA Outcome Residents will achieve the skills and resources needed in order to transition out of subsidized housing. DHA will reduce the amount of subsidy households required through increases in earned income.

Metrics • Number of: o National Certifications Attained o Graduation and Education Goals o Literacy and Math Gains

• Increased: o High school graduation rates o Personal income o Attained employment o Credit scores o Debt reduction o Personal saving o Home savings o Placements (Section 3, RTD Workforce Initiative Now (WIN), Denver Urban

Renewal Authority (DURA) First Source Program o Number of residents earning RAP points

• Establish and report Family Self Sufficiency metrics annually • Track number of households transitioning out of Public Housing and Section 8

Strategies 1. Implement Adult YEA at Culinary Academy. 2. Increased enrollment of Section 8 clients in YEA. 3. Expanded resume writing workshops. 4. Expand focus on financial fitness and computer technology literacy. 5. Establish new criteria for Self-Sufficiency to confirm sustained success. 6. Expand placements to non-Section 3 contracts with past vendors. 7. Increase training and certification opportunities (OSHA and EPA) 8. Monitor and evaluate RAP program outcomes. 9. Evaluate expansion of RAP to other DHA initiatives such as Energy Conservation

and Urban Farming. 10. Focus on “banking the unbanked”. 11. Computer technology training focus. 12. Increase participation from Section 8 clients in Financial Literacy courses. 13. Outreach for Workplace Learning Project. 14. Expanded outreach and enrollment in employment initiatives. 15. Annual Survey of Economic and Education levels and barriers of residents.

Partners Self-Sufficiency Research Summit, United Way - Spark Point Model (Collective Impact best practices), Neighborworks Housing Network, Mental Health service providers, Youth Employment and Workforce Partners

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Continuum of Care for Seniors and Disabled

DHA Outcome Residents will be supported to live independently for the longest possible time. Residents will be supported to manage their fixed incomes in a self-sufficient manner.

Metrics • Increased number clients receiving on site health care services • HealthSet services expanded from 9 to 11 sites • Track aggregate health data by property • Increase number of residents participating in WEHL programs • Measurement of resident tenure with DHA • Increase number of sites served by Veterans of America Healthy Food Initiative • Increased number of residents registered with TLC

Strategies 1. Expand HealthSet services to Walsh Annex and Tapiz Apartments. 2. Increase enrollment at existing sites through better outreach by RSC’s. 3. Collaborate with Healthset on data collection and sharing. 4. Collaborate with Volunteers of America (VOA) to expand sites served. 5. Expand the Senior Companion Program. 6. Expand WEHL program to North Lincoln and Westridge Homes. 7. Collaborate with HMD to identify and track residency tenure of Seniors and

Disabled clients. 8. Complete analysis of survey results and present recommendations. 9. Develop new services/initiatives based on survey results. 10. Expand TLC visibility at senior properties. 11. Increase referrals to TLC services.

Partners Transportation Options, Benefits Enrollment, Transition to Assisted Living, End of Life Planning, Access to Mental Health Services, and Commission on Aging

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Business Improvements The goals outlined in the section establish the plan for ensuring that DHA continues to increase its efficiency and effectiveness through process improvements and sound, forward-thinking program administration and financial management. It also describes the steps needed for becoming a leading “green” housing authority throughout the nation.

Financial Sustainability Guiding Principles

Create a sustainable and diversified funding model that is adaptive to external challenges and opportunities; Maintain administration of core programs.

DHA Outcome Create a realistic long-term plan to operate DHA in the context of continued funding reductions for the HUD programs.

Metrics • Maintain a strong balance sheet for DHA. o Increase DHA’s net assets annually o Increased operating reserves by program

Strategies 1. Quantify anticipated HUD funding cuts and provide 5 year revenue projections on an annual basis. Benchmark: Year 1 and update every year thereafter

2. Create Agency-wide five-year Capital Investment Plan. Benchmark: Year 1- Assess needs Year 2-and 3 create plan and start implementation

3. Set operating reserve goals for each program/department. Benchmark: Year 1

4. Proactively identify DHA spending reductions in anticipation of HUD funding cuts. Benchmark: Year 2 and 3 (by each department)

5. Identify and quantify other sources of revenue to help offset federal funding reductions. a. Identify and quantify consulting and IGA opportunities b. Develop a business model for Housing Management to provide property

management services for DHA full portfolio and possibly third parties. Benchmark: Year 2 and ongoing thereafter

6. Analyze MTW, RAD and any other new opportunities and prepare evaluation reports on the analysis. Benchmark: On going- to be completed by a ‘ New Initiatives Committee’.

7. Develop DCV as a viable resource development vehicle for RCS activities. Set fundraising goals and evaluation tools. Benchmark: Year 1- Develop work plan, fund raising goals and evaluation tools Year 2 and thereafter- Monitor and evaluate effectiveness

Responsible Executive/Finance/HMD/Section 8/RCS and all COCC departments DHA Outcome Maintain financial integrity of all DHA processes and operations. Metrics • Receive external audit reports that are unqualified.

• Address any and all audit findings timely. Strategies 1. Cause to maintain unqualified independent audit reports for DHA and all its component

units. Benchmark: Every Fiscal year

2. Address all audit deficiencies effectively and timely. Benchmark: Every Fiscal year

3. Provide accurate monthly financial reporting to the DHA Board covering all DHA activities.

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Benchmark: Every month 4. Maintain strong internal controls over all financial activities. Identify and evaluate need

for Internal Control Improvements throughout DHA, e.g. P-card activities, DHA fleet program, etc. Benchmark: Year 1- Do risk assessment Year 2- Design internal control audit process and identify areas of weakness Year 3- implement process

5. Create programs for employee fraud awareness and detection. Benchmark: Year 2

6. Review/update/provide training on DHA Policies and Procedures. Benchmark: Ongoing

Responsible Finance is lead DHA Outcome Responsible leveraging and stewardship of DHA Assets. Metrics • Balanced budgets for each program.

• Achieve minimum 5 to 1 on any dollars put in by DHA • Identify Pay-back period for DHA investments

Strategies 1. Create responsible balanced development budgets for all new real estate ventures. Benchmark: Every Fiscal year

2. Monitor all real estate development budgets effectively. Benchmark: Ongoing

3. Develop and adopt DHA’s capital investment policy. 4. Create new ventures that are self-sustaining financially.

Benchmark: Create for each development effort 5. Evaluate and get Board approval on the long-term financial impacts of all new DHA

ventures. Benchmark: For each development effort

6. Develop a comprehensive, post development asset management report to monitor long-term performance.

7. Avoid cross collateralization of assets between DHA's stand-alone programs and projects. Benchmark: Ongoing

Responsible Finance and Real Estate Departments DHA Outcome Maintain DHA's High Performer status in the Public Housing and

Section 8 programs. Metrics • Follow HUD prescribed criteria for PHAS/SEMAP. Strategies 1. Create DHA's PHAS/SEMAP monitoring team.

Benchmark: Year1 2. Review PHAS/SEMAP status quarterly by interdepartmental teams.

Benchmark: Quarterly/Ongoing 3. Develop PHAS/SEMAP dashboard reports tied to various PHAS/SEMAP benchmarks.

Benchmark: Year 2 Responsible HMD/Section 8 / Finance

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Green Guiding Principles Identify and implement sustainable practices throughout the agency to minimize

impacts on the environment. DHA Outcome Develop an agency-wide Green Plan using the guidelines from the

Certifiably Green Denver program Metrics • Evaluate effectiveness of green practices identified in the first 3-year plan. Strategies 1. Determine the oversight staff or department for the Green Plan and Practices

Benchmark: Year 1 2. Perform an agency-wide review to promote green practices including

evaluating and measuring energy consumption, paper utilization, and resource conservation. Benchmark: Year 2

3. Add a Pilot program to test recycling at one or more remote facilities Benchmark: Year 1

4. Create a commitment to the green effort through training and incentives Benchmark: Year 1-3, ongoing

Responsible Energy Manager (lead); Green Committee and All Staff will be impacted.

Process Efficiencies Guiding Principles Improve DHA processes through automation, technology upgrades, and continuous process

improvement. DHA Outcome Improve efficiencies with enhanced software or software add-ons

for the housing and financial systems. Metrics • Evaluate the effectiveness of the new software through reduction in

compliance issues, reduced phone calls, and better customer support. Strategies 1. Evaluate and implement new or upgraded software for the Public Housing,

Multifamily, and Tax Credit programs Benchmark: Year 1- Evaluate and tested new software Year-2: Train staff and implement new software

2. Develop a Section 8 Web-based Landlord Portal Benchmark: Year 1 – Systems analysis and design, and testing of new portal. Prepare training materials for staff and landlords.

3. Evaluate and purchase or design new acquisition software for procurement acquisitions Benchmark: Year 1: Evaluate software option Year 2: Implement software (purchased or designed)

Responsible MIS (lead); 1. Housing Management, Finance/Accounting, and RCS with be impacted. 2. Section 8 will be impacted. 3. Procurement and Housing Management will be impacted.

DHA Outcome Develop a continuous improvement program to evaluate and improve efficiencies of administrative and service-delivery processes.

Metrics • Reduce processing time and/or operating costs Strategies 1. Create a “Bright Idea” team to review administrative and service-delivery processes to

maximize efficiencies.

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Benchmark: Year 1/ongoing 2. Link individual work plans and performance evaluation to outcomes and metrics of the

Strategic Plan. Benchmark: Year 2

3. Pilot one cross-divisional process improvement project. Benchmark: Year 2

4. Promote awareness of and adherence to our internal and external fraud prevention policies (possible pilot project). Benchmark: Year 2

5. Incentivize team-based cross-divisional problem-solving. Benchmark: Year 1-3

Responsible Executive Committee (lead) – All staff, all cross-divisional departments will be impacted. DHA Outcome Implement LEAN Principles. Metrics • Measure savings realized from process efficiencies

• Maintain high performer standards Strategies 1. Develop clear metrics for measuring savings

2. Training a core team of Lean facilitators 3. Pilot Section 8 department in 2012 for Lean Process review 4. Engage in one inter-agency Lean Process Review

DHA Outcome Reduce costs and improve efficiencies through paperless processing.

Metrics • Evaluate the effectiveness by measuring the reduction of paper costs Strategies 1. Refine the Human Resources processes to include workflow process in a paperless

environment Benchmark: Year 1- Replace the Personnel Action form process with a workflow approval process Benchmark: Year 2- Implement on-line applications and eliminate the manual hiring process Benchmark: Year 3- Evaluate other manual/paper processes in Personnel and implement new workflow processes.

2. Continue the implementation of the agency-wide Enterprise Content Management (ECM) system Benchmark: Year 1- Complete the backlog scanning for the Housing Management files. Add Procurement to the ECM system. Benchmark: Year 2- Add Section 8 to the ECM system and begin the backlog scanning. Add remainder of Finance files to the ECM system. Benchmark: Year 3 – Complete the backlog scanning for the Section 8 files. Add Legal, Executive, and other departments to the ECM system.

Partners ECM - MIS (lead); All staff impacted. HR – MIS (lead); Personnel, Executive, Legal, and Finance impacted.

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Employee Initiatives At the heart of all of DHA’s accomplishments are its employees – DHA’s work force who are motivated by the organization’s critical mission in our community. This section of the plan describes the means through which staff will continue to strengthen their customer service approach with DHA clients and the ways in which the agency will recognize strong performance, validate staff input, improve the organization and continue to build team-based success.

Customer Service Guiding Principles To offer courteous, helpful and friendly service to all in a prompt and timely

manner. Customers are not just those that we serve, but those that we work with and that each employee should be treated just as we would treat a customer.

DHA Outcomes Implement and Bridges-Out-Of-Poverty Customer Life-Cycle Model.

Metrics • Annual customer satisfaction survey • POC survey results

Strategies 1. Launch an Internal Client-process reviewers pilot program in first quarter of 2013. End of third quarter launch agency wide.

2. Develop a core team of Bridges Out of Poverty (BOP)/Life Cycle Model (LCM) train the trainers.

3. Pilot BOP one department in first quarter of 2013. 4. Launch BOP/LCM agency-wide in third quarter 2013. 5. Ensure all front-line staff receive customer service training.

Recognition Guiding Principles Attract and retain best qualified employees and recognize their contributions

to DHA DHA Outcomes Retaining a qualified and motivated workforce. Metrics • Complete employee surveys annually to identify employee needs

• Diversity of DHA workforce Strategies 1. Develop employee satisfaction survey and implement across divisions. (personnel)

2. Evaluate results of employee satisfaction survey annually to determine needs. (Personnel)

3. Convene interdepartmental team to develop recommendations based on survey results.

4. Invest in training and development of DHA Managers and Supervisors. 5. Develop a DHA succession plan. 6. Fostering a positive employment culture to sustain and attract employees through

transparency, equity and mobility.

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7. Update job descriptions to include more current qualification needs. (ongoing) 8. Develop targeted recruitment strategies to fill positions. 9. Create staff wellness program. 10. Promote diversity in DHA workforce that reflects DHA communities.

DHA Outcomes Create programs and opportunities for employees to contribute to the success of DHA and the community

1. # of staff receiving leadership training 2. # of staff serving on cross-organizational committees 3. # of staff involved in community volunteer activities 4. Employee satisfaction survey

1. Identify and develop leadership training programs. 2. Develop strategies to increase ownership of work. 3. Create cross-organizational committees to involve more employees. 4. Post volunteer opportunities in central location.

DHA Outcomes Promote excellence and recognize employee contribution. Metrics • Annual recognition at All Employees Annual Meeting and DHA Employee

Appreciation Day • # of divisions recognized in recognition programs over 1 year

Strategies 1. Implement an employee recognition program that is inclusive of all departments and divisions.

2. Orient employee recognition to Strategic Plan Key performance Indicators.

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Communications DHA interacts with many people – clients, partners, potential tenants, current tenants, property owners, government staffs, elected officials, policy and decision makers, media and community leaders – within its network. Each of these relationships carries a unique information need. This area of the plan describes the multiple means through with DHA will convey its information, key messaging and brand to the community. DHA Outcome Enhance DHA communication policy and infrastructure.

Metrics • Policy adopted by board in advance of implementation of Social Media Strategies • Decision on website hosting made by end of 2012 • Search Engine Optimization plan completed by second quarter of 2013. • Searchable database completed by the end of 2012. • Branding platform finalized by second quarter of 2012.

Strategies Social Media Marketing Research and Evaluation 1. Develop policies and

structure to guide the development and implementation of social media to maximize its potential while guarding against challenges such as privacy infringement, productivity drop-off, content management and viral message monitoring.

2. Research internal vs. outsource management of DHA Website

3. Develop Search Engine Optimization Plan

1. Develop a searchable contact database that facilitates targeted communications to segmented DHA audience groups.

2. Implement a routinized marketing list update process in which key DHA staff regularly revise contacts in a centralized database.

3. Develop and apply a consistent branding platform across all DHA communications strategies and tools.

DHA Outcome Influence Public Officials & Policy Makers through the provision of up to date information, activity and research on DHA

Metrics • # of positive mentions in the press • # of events DHA staff are asked to present at • # of Council support of DHA policy proposals • # of key policy-makers that receive DHA regular communications • # of Policy-makers that open DHA regular communications

Strategies Social Media Marketing Research and Evaluation 1. Identify key public

officials who we want to follow DHA on Twitter

2. Determine social media measures for analysis by studying similar organizations/agencies that use social media

1. Implement the newly developed Marketing Plan and update annually.

2. Utilize the “DHA In the News” to share our stories with public officials.

1. Publish and present DHA full evaluation reports as they come available and annually at a minimum, and develop summaries for multiple audiences.

2. Send press releases upon the completion of DHA

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3. Include links on DHA website to all social media – Twitter, YouTube, Facebook, Flicker

4. Utilize social media to recognize public policy makers/officials who give support to DHA

5. Solicit policy makers contributions to DHA social media content (year 2 and 3)

3. Share press mentions, events, DHA report results with DHA industry groups and their networks

reports. 3. Track number of

resources requests such as “hits” for DHA web resource tab.

4. Document image all DHA resource reports.

DHA Outcome Provide PH and HCV residents with updated, easily accessible information regarding DHA programs, procedures and events.

Metrics • Increased participation in DHA Services & Programs • Decreased phone calls to agency (if able to find info on website) • Decreased terminations in HCV Program (by having updated information on program

changes posted) • # of visits to RCS Website

Strategies Social Media Marketing Research and Evaluation 1. Designate content

managers for all relevant departments.

2. Research and select social media management tools (Hootsuite, Social Mention, TweetReach, Facebook Insights)

3. Create website, quarterly updated FAQs for PH, HCV residents linked through social media tools.

4. Utilize social media to develop and disseminate resident success stories featuring particular programs and resources of DHA.

1. Revamp the RCS/HMD bi-monthly newsletter and annual calendar to include HCV information and send to all DHA households.

2. Change DHA website pages (RCS/HCV/HMD) to be more user friendly for residents.

3. Use participant testimonials to encourage recruitment and retention for self-sufficiency programs.

4. Create an “Information Phone Line” for updated program information for PH &HCV clients.

• Consolidate DHA newsletters into one cohesive source of information about all aspects of DHA.

DHA Outcome Establish DHA as an innovative, responsive landlord working proactively toward a positive resident experience.

Metrics • Increased participation in programs: FSS, YEA, homeownership, employment, local resident councils, landlord choice housing voucher events, resident satisfaction surveys.

Strategies Social Media Marketing Research and Evaluation 1. Develop DHA

participant testimonial videos showcasing DHA programs and resident-centered orientation.

1. Incorporate testimonials and stories into collateral marketing material.

1. Publish and distribute executive summary “Re