NW Oregon PHA Gets $795,000 Voucher Bail Out; Projected $1.4 Million in Total Admin Fees is 27% of Prior Per Unit Costs.

News story from OPB is HERE.
South County Spotlight story is HERE.
Daily Astorian story is HERE.

I understand that the additional money came in the form of increased administrative fees, which are paid to housing authorities over and above housing voucher subsidy costs.

First, congrats to all the HUD staff and external partners, including elected officials, that made the additional allocation happen. Second, let's put that additional money in some context:

Comparison 1: Projected Admin Fee Increase is 122% From Prior CY 2009 Projection:
Using NW spending data from my prior post (HERE) that tracks $37+ Billion in HUD spending in FY 2009, I project that the additional $795,000 represents an increase of 122% in CY 2009 admin fee funding from HUD. A table with my Admin fee projection follows:

Actual CY 2009, Jan-June	$ 295,012
Actual June 2009	$ 59,594
Projected Remainder of CY 2009 (6 Months, July-Dec, at June Rate)	$ 357,564
Projected CY Total	$ 652,576
Additional Admin Fees	$ 795,000
Increased Admin Fee %	122%

Comparison 2: Project CY 2009 Admin Fee Cost is 27% of FY 2008 Per Unit Subsidy Costs.

• Total Admin fees in CY 2009 are therefore projected to reach $1,447,576.($652k +$795k).
  
• For 1,077 vouchers that would work out to total admin fees of $112 per month.
• CY 2008 per unit monthly voucher costs averaged $411.20, so $112 per month in admin fees would represent an admin fee of 27%.
  
• Historically, admin fees have run around 6%-8% of voucher costs.
• [NOTE: If actual CY 2009 admin fee totals are HIGHER than those I project the admin fee % will be HIGHER than my projection; if actual CY 2009 admin fee totals are LESS than I project, admin fee % will be lower than my projection.].
  

Comparison 3: Projected CY2009 Admin Fees Are 22% of the Audited Actual PHA FY 2008 TOTAL Voucher Spending.
My first blog post (HERE) about NW PHA vouchers included a link that shows the audited actual voucher spending (subsidy PLUS admin fees) was $6,269,408 for their FY 2008. Using that figure the projected CY 2009 $1,447,576 in admin fees from HUD would represent 23% of the actual FY 2008 TOTAL voucher spending (subsidy PLUS admin fees). [If admin fee were calculated only on subsidy costs that % would be HIGHER].

Final NOTE: Spending data shows that NW Oregon PHA has already received $3,126,006 in HUD funding in CY 2009 though June. When all CY 2009 spending data is available early next year, it seems very likely that their HUD spending will approach and perhaps exceed $7 Million.

(You can find more about HUD voucher admin fees from HUD website HERE).

Originally created and posted on the Oregon Housing Blog.