2010 10 05 RDARedevelopment Agency agendas are
available on the City' web page
@ www.la-quinta.org
REDEVELOPMENT AGENCY
AGENDA
CITY COUNCIL CHAMBERS
78-495 Calle Tampico
La Quinta, California 92253
Regular Meeting
ESDAY. OCTOBER 5. 2010
DUE TO THERE BEING NO CLOSED SESSION SCHEDULED, THE REDEVELOPMENT
AGENCY WILL CONVENE AT 4:00 P.M.
Beginning Resolution No. RA 2010-010
CALL TO ORDER
Roll Call:
Agency Board Members: Adolph, Franklin, Henderson, Sniff, Chairperson Evans
PUBLIC COMMENT
At this time, members of the public may address the Redevelopment Agency on any
matter not listed on the agenda. Please complete a "request to speak" form and limit your
comments to three minutes.
CLOSED SESSION — NONE
CONFIRMATION OF AGENDA
APPROVAL OF MINUTES
1. APPROVAL OF MINUTES OF SEPTEMBER 21, 2010.
Redevelopment Agency Agenda 1 October 5, 2010
CONSENT CALENDAR
NOTE: Consent Calendar items are considered to be routine in nature and will be approved
by one motion.
1. APPROVAL OF DEMAND REGISTER DATED OCTOBER 5, 2010.
2. APPROVAL OF FINANCIAL AND COMPLIANCE REPORTS FOR
WASHINGTON STREET APARTMENTS FOR THE YEARS ENDING JUNE 30,
2010 AND 2009.
BUSINESS SESSION - NONE
STUDY SESSION — NONE
CHAIR AND BOARD MEMBERS' ITEMS — NONE
PUBLIC HEARINGS — NONE
ADJOURNMENT
The next regular meeting of the Redevelopment Agency will be held on October 19,
2010, commencing with closed session at 3:00 p.m. and open session at 4:00
p.m. in the City Council Chambers, 78-495 Calle Tampico, La Quinta, CA 92253.
DECLARATION OF POSTING
I, Veronica Montecino, City Clerk of the City of La Quinta, do hereby declare that
the foregoing agenda for the La Quinta Redevelopment Agency meeting of October
5, 2010, was posted on the outside entry to the Council Chamber at 78-495 Calle
Tampico and on the bulletin boards at 51-321 Avenida Bermudas and 78-630
Highway 111, on October 1, 2010.
DATED/ October 1, 2010
VERONICA J.,tdIONTECINO, City Clerk
City of La inta, California
Public Notice
Any writings or documents provided to a majority of the Redevelopment Agency regarding any item
on this agenda will be made available for public inspection at the City Clerk counter at City Hall
located at 78-495 Calle Tampico, La Quinta, California, 92253, during normal business hours.
RedevelopmentAgencyAgenda 2 October 5, 2010'0 • 0 ^ 2
U
w
CFM OF Tl�
AGENDA CATEGORY:
RDA MEETING DATE: October 5, 2010 BUSINESS SESSION
ITEM TITLE: Demand Register Dated CONSENT CALENDAR /
October 5, 2010
STUDY SESSION
PUBLIC HEARING
RECOMMENDATION:
It is recommended the Redevelopment Agency Board:
Receive and File the Demand Register Dated
October 5, 2010 of which $159,826.61
represents Redevelopment Agency Expenditures.
PLEASE SEE CONSENT CALENDAR ITEM NUMBER 1 ON CITY COUNCIL AGENDA
•,.. 003
T-df 4 4 a"
COUNCIL/RDA MEETING DATE: October 5, 2010
ITEM TITLE: Approval of Financial and Compliance
Reports for Washington Street Apartments for the
Years Ended June 30, 2010 and 2009
RECOMMENDATION:
AGENDA CATEGORY:
BUSINESS SESSION:
CONSENT CALENDAR: _
STUDY SESSION:
PUBLIC HEARING:
Approve and file the Financial and Compliance Reports for Washington Street
Apartments for the years ended June 30, 2010 and 2009.
FISCAL IMPLICATIONS:
Page 24 of the Audit contains a summary of Audit Results. No significant items
were noted.
CHARTER CITY IMPLICATIONS:
None
BACKGROUND AND OVERVIEW:
In October 2008, the La Quinta Redevelopment Agency acquired a 73 unit low-
income apartment complex, Washington Street Apartments. The apartment
complex is managed by Hyder & Company and the audit was performed by Joyce
Rethmeier, CPA.
The audit (Attachment1) was required since the United States Department of
Agriculture (USDA) Rural Development provides Federal funding.
FINDINGS AND ALTERNATIVES:
The alternatives available to the Agency Board include:
004
1. Approve and file the Financial and Compliance Reports for the Washington
Street Apartments for the years ending June 30, 2010 and 2009; or
2. Do not approve and file Financial and Compliance Reports for the
Washington Street Apartments for the years ending June 30, 2010 and
2009; or
3. Provide staff with alternative direction.
Respectfully submitted,
4M 4"e"
John M. Falconer, Finance Director
Approved for submission by:
Thomas P. Genovese, Executive Director
Attachment: 1. Washington Street Apartments Financial and Compliance
Reports Dated June 30, 2010 and 2009
005
WASHINGTON STREET APARTMENTS
FINANCIAL AND COMPLIANCE REPORTS
JUNE 30, 2010 AND 2009
CONTENTS
Independent Auditors' Report
Financial Statements
Statement of Financial Position
Statement of Activities
Statement of Cash Flows
Notes to, the Financial Statements
Supplemental Information
Report on Internal Control over Financial Reporting and on Compliance
and Other Matters Based on an Audit of Financial Statements
Performed in Accordance with Government Auditing Standards
Audit Findings on Compliance
Report on Compliance with Requirements Applicable to Each Major Program and on
Internal Control over Compliance in Accordance with OMB Circular A-133
Schedule of Findings and Questioned Costs
Schedules of Expenditures of Federal Awards
Accompanying Multiple Family Housing Borrower Balance Sheet — Form RD 3560-10
Accompanying Multiple Family Housing Project Budget — Form RD 3560-7
PAGE
3-4
5-6
7
8-9
10-13
15-18
19-20
21
22-23
24
25
26-27
28-32
007
[1
I
1
JOYCE E. RETHMEIER
CERTIFIED PUBLIC ACCOUNTANT
Independent Auditors' Report
To La Quinta Redevelopment Agency
Washington Street Apartments
(An elderly housing development owned by.
La Quinta Redevelopment Agency)
La Quinta, CA
USDA Rural Development
Moreno Valley Office
Moreno Valley, CA
' I have audited the accompanying statements of financial position of Washington Street Apartments (An elderly
housing development owned by La Quinta Redevelopment Agency), Case No. 04-033-953740431, as of June 30,
2010 and 2009, and the related statements of activities and cash flows for the year ended June 30, 2010 and period
from inception (October 31, 2008) to June 30, 2009. These financial statements are the responsibility of the
Project's management. My responsibility is to express an opinion on these financial statements based on my
audits.
' I conducted my audits in accordance with auditing standards generally accepted in the United States of America,
the standards applicable to financial audits contained in Government Auditing Standards, issued by the
Comptroller General of the United States. Those standards require that I plan and perform the audits to obtain
reasonable assurance about whether the financial statements are free of material misstatement. An audit includes
examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit
also includes assessing the accounting principles used and significant estimates made by management, as well as
evaluating the overall financial statement presentation. I believe that my audits provide a reasonable basis for my
opinion.
In my opinion, the financial statements referred to above present fairly, in all material respects, the financial
position of Washington Street Apartments, as of June 30, 2010 and 2009, and changes in its net assets and its cash
flows for the year ended June 30, 2010 and period from inception (October 31, 2008) to June 30, 2009 in
conformity with accounting principles generally accepted in the United States of America.
In accordance with Government Auditing Standards, I have also issued a report dated August 31, 2010, on my
consideration of Washington Street Apartment's internal control over financial reporting and on my tests of its
compliance with certain provisions of laws, regulations, contracts, and grant agreements and other matters. The
purpose of that report is to describe the scope of my testing of internal control over financial reporting and
' compliance and the results of that testing and not to provide an opinion on the internal control over financial
reporting or on compliance. That report is an integral part of an audit performed in accordance with Government
Auditing Standards and should be considered in assessing the results of my audits.
235 West Fifth Avenue, Suite G, Escondido, CA 92025 Tel (760) 233-2244 Fax (760) 233-2166
Member of American Institute of Certified Public Accountants
California Society of Certified Public Accountants 008
1 ..
I
My audits were conducted for the purpose of forming an opinion on the basic financial statements taken as a
whole. The accompanying supplementary information shown on page 15-18 and 26-32 is presented for purposes
of additional analysis and is not a required part of the basic financial statements of Washington Street Apartments.
The accompanying schedule of expenditures of federal awards is presented for purposes of additional analysis as
required by U.S. Office of Management and Budget Circular A-133, Audits of States, Local Governments, and
Non -Profit Organizations, and is also not a required part of the basic financial statements. Such information has
' been subjected to the auditing procedures applied in the audits of the basic financial statements and, in my
opinion, is fairly stated, in all material respects, in relation to the basic financial statements taken as a whole.
Joyce E. Rethmeier
Certified Public Accountant
August 31, 2010
009
V
WASHINGTON STREET APARTMENTS
(An elderly housing development owned by
La Quinta Redevelopment Agency)
CASE NO. 04-033-953740431
STATEMENTS OF FINANCIAL POSITION
JUNE 30,
ASSETS
Current Assets
Cash
Rental assistance receivable
Tenant receivable
Prepaid expenses
Receivable - other
Total Current Assets
Restricted Deposits and Funded Reserves
Cash restricted for tenant security deposits
Real estate tax and insurance reserve
Replacement reserve
Rental Property
Land
Buildings & Improvements
Less: Accumulated Depreciation
Other Assets
Permanent loan fees, net of accumulated amortization of
$2,314 and $926 in 2010 and 2009
Deposits
tTotal Assets
2010 2009
$ 89,087
34,784
5,061
823
8,300
138,055
26,249
46,320
331,043
403,612
3,447,094
2,748,477
6,195,571
(152,830)
6,042,741
15,620
6,400
22,020
$ 69,319
40,406
2,201
17,598
96
129,620
26,234
24,478
272,369
323,081
3,447,094
2,736,127
6,183,221
(60,803)
6,122,418
17,008
4,540
21,548
$ 6,606,428 $ 6,596,667
The accompanying notes are an integral part of these financial statements. "�..� 010
-5-
1
1
1
1
WASHINGTON STREET APARTMENTS
( An elderly housing development owned by
La Quinta Redevelopment Agency)
CASE NO. 04-033-953740431
STATEMENTS OF FINANCIAL POSITION (continued)
JUNE 30,
LIABILITIES AND NET ASSETS
Current Liabilities
Current portion of mortgage note payable
Accounts payable
Accrued expenses
Total Current Liabilities
Deposits and Prepaid Liabilities
Tenants' security deposits
Tenants' prepaid rents
Long -Term Liabilities
Mortgage note payable, net of current portion
Total Liabilities
Commitments
Net Assets
Total Liabilities and Net Assets
2010 2009
$ 39,408 $ 36,085
30 4,046
21,185 2,328
60,623 42,459
26,105
26,268
2,301
1,731
28,406
27,999
2,232,706 2,269,921
2,321,735 2,340,379
4,284,693 4,256,288
$ 6,606,428 $ 6,596,667
The accompanying notes are an integral part of these financial statements. 011
-6-
'
WASHINGTON STREET APARTMENTS
(An elderly housing development owned by La Quinta Redevelopment Agency)
CASE NO.04-033-953740431
STATEMENTS OF ACTIVITIES
FOR THE YEAR ENDED JUNE 30, 2010
'
AND PERIOD OF INCEPTION (OCTOBER 31, 2008) TO JUNE 30, 2009
2010
2009
'
Rental Income
Apartments
$ 172,276
$ 122,361
Less: Overage
-
Tenant Utility Allowance
-
'
Tenant Assistance Payments
445,396
296,643
Potential Rental Income
617,672
419,004
Less: Vacancies
(1,707)
(3,546)
'
Total Rental Income
615,965
415,458
Other Income
Laundry & Vending
4,917
2,307
Interest Income
2,188
777
Tenant Charges
2,746
1,846
Other Income
142
Total Other Income
9,993
4,930
'
Total Income
625,958
420,388
Expenses
Operating & Maintenance Expenses
235,715
129,835
Utilities Expenses
55,412
37,238
Taxes & Insurance
32,143
25,493
Bad Debts
-
-
Interest on Mortgage Payable
169,618
85,833
1
Total Expenses
492,888
278,399
Income/(Loss) from Operations
133,070
141,989
Non -Operating (Income) & Expense
Interest Subsidy Income
(46,912)
(27,365)
Interest Subsidy Expense
46,912
27,365
Asset Management Fee
11,250
Depreciation & Amortization
93,415
61,729
Total Non -Operating Income & Expense (104,665)
(61,729)
Change in Net Assets
28,405
80,260
Net Assets - Beginning of Year
4,256,288
-
Owner Contributions
-
4,176,028
'
Net Assets - End of Year
$ 4,284,693
$ 4,256,288
The accompanying notes are an integral part of these financial statements. '0°•'
012
-7-
WASHINGTON STREET APARTMENTS
(An elderly housing
development owned by La Quinta Redevelopment Agency)
'
CASE NO. 04-033-953740431
STATEMENTS OF CASH FLOWS
FOR THE YEAR ENDED JUNE 30, 2010
AND PERIOD
OF INCEPTION (OCTOBER 31, 2008) TO JUNE 30, 2009
2010
2009
Operating Activities
'
Rental receipts
$ 168,375
$ 118,249
Rental subsidy
451,018
256,237
Interest receipts
2,188
777
Other receipts
7,805
4,153
Net tenant security deposits (paid) received (178)
34
Net deposits received
(1,860)
(4,540)
Payroll
(53,844)
(33,052)
Administrative
(71,411)
(44,491)
'
Professional fees
(7,000)
Management fee
(11,250)
-
Utilities
(58,241)
(34,409)
Maintenance
(111,735)
(38,919)
Insurance and taxes
(8,389)
(52,919)
Interest on mortgage note payable
(158,952)
(85,833)
1
Net Cash From Operating Activities
146,526
85,287
Investing Activities
Reserve for Taxes & Insurance
(21,842)
(24,478)
Reserve for Replacement
(58,674)
(272,369)
Payment of Loan Fees
-
(17,934)
Purchase/Disposal of Rental Property
(12,350)
(6,183,221)
Net Cash From Investing Activities
(92,866)
(6,498,002)
Financing Activities
Mortgage Principal Payments
(33,892)
(26,746)
'
Mortgage Proceeds
2,332,752
Owner Contributions
-
4,176,028
Net Cash From Financing Activities
(33,892)
6,482,034
Net Increase/(Decrease) in Cash
19,768
69,319
Cash at Beginning of Period
69,319
-
Cash at End of Period
$ 89,087
$ 69,319
The accompanying notes are an integral part of these financial statements.
.,,,.` 013
'
8
WASHINGTON STREET APARTMENTS
(An elderly housing development owned by La Quinta Redevelopment Agency)
CASE NO. 04-033-953740431
STATEMENTS OF CASH FLOWS
FOR THE YEAR ENDED JUNE 30, 2010
AND PERIOD OF INCEPTION (OCTOBER 31, 2008) TO JUNE 30, 2009
Operating Activities
Increase in net assets
Adjustments to Reconcile Increase/(Decrease) in Net Assets to
Net Cash From Operating Activities
Depreciation & Amortization
Decrease (Increase) in Assets:
Rental Assistance Receivable
Tenant Receivables
Receivable - Other
Prepaid Expenses
Cash restricted for tenant security deposits
Deposits
Increase (Decrease) in Liabilities:
Accounts Payable
Accrued Expenses
Security Deposits - Liability
Prepaid Rents
Net Cash From Operating Activities
Supplemental Disclosures
Interest Subsidy
$ 28,405 $ 80,260
93,415
61,729
5,622
(40,406)
(2,860)
(2,201)
(8,204)
(96)
16,775
(17,598)
(15)
(26,234)
(1,860)
(4,540)
(4,016)
4,046
18,857
2,328
(163)
26,268
570
1,731
$ 146,526 $
85,287
$ 46,912 $
27,365
The accompanying notes are an integral part of these financial statements.
-9- "-. 014
F
WASHINGTON STREET APARTMENTS
(An elderly housing development owned by
La Quinta Redevelopment Agency)
Case No. 04-033-953740431
NOTES TO THE FINANCIAL STATEMENTS
Year Ended June 30, 2010
A. Organization
' Washington Street Apartments ("the Project") is an elderly housing development owned by La Quinta
Redevelopment Agency (herein referred to as the Project). The Project operates a 73 unit elderly housing
' development for low-income seniors, as defined in Section 521 of the Housing Act of 1949. The Project
commenced rental operations in November 2008.
' Legal title to the Project is held by La Quinta Redevelopment Agency, a government agency. The
accompanying financial statements are those of the Project and do not represent the financial statements of La
Quinta Redevelopment Agency.
The Project operates as an enterprise fund and, as such, follows governmental accounting standards and uses
the accrual basis of accounting. Under the accrual basis of accounting, revenues are recorded in the accounting
period in which they are earned and become measurable. Expenses are recorded in the period incurred, if
' measurable.
B. SignificantAccountingPolicies
A summary of the Project's significant accounting policies consistently applied in the preparation of the
accompanying financial statements are as follows:
Basis of Accounting
' The Project utilized the accrual basis of accounting, whereby income is recognized as earned and expenses are
recognized as obligations are incurred.
Cash and Cash Equivalents
Cash and cash equivalents consist of short-term investments with an original maturity of three months or less,
cash on deposit, money market funds and certificates of deposit.
Tenant Receivable and Bad Debt Policy
■ Tenant rent charges for the current month are due on the first of the month. Tenants who are evicted or move -
out are charged with damages or cleaning fees, if applicable. Tenant receivable consists of amounts due for
rental income, security deposit or the charges for damages and cleaning fees. The Project does not accrue
interest on the tenant receivable balances.
The Project has not established an allowance for doubtful accounts and does not use the reserve method for
recognizing bad debts. Bad debts are treated as direct write-offs in the period management determines that
collection is not probable. There are no bad debts for the year ended June 30, 2010 and period from inception
(October 31, 2008) to June 30, 2009.
' -10- Poe 015
WASHINGTON STREET APARTMENTS
(An elderly housing development owned by
La Quinta Redevelopment Agency)
Case No. 04-033-953740431
NOTES TO THE FINANCIAL STATEMENTS
Year Ended June 30, 2010
B. Significant Accounting Policies — (Continued)
Rental Property
Rental property is recorded at cost. Improvements are capitalized, while expenditures for maintenance and
repairs are expensed as incurred. Upon disposal of depreciable property, the appropriate property accounts
are reduced by the related costs and accumulated depreciation. The resulting gains and losses are reflected in
the statements of operations. The rental property is depreciated over estimated service lives as follows:
Buildings & Improvements
Land Improvements
Furnishings & Equipment
30 years
15 years
5-7 years
straight-line
accelerated
accelerated
The Project reviews its investment in real estate for impairment whenever events or changes in circumstances
indicate that the carrying value of such property may not be recoverable. Recoverability is measured by a
comparison of the carrying amount of the real estate to the future net undiscounted cash flow expected to be
generated by the rental property and any estimated proceeds from the eventual disposition of the real estate. If
the real estate is considered to be impaired, the impairment to be recognized is measured at the amount by
which the carrying amount of the real estate exceeds the fair value of such property. There were no
impairment losses recognized in 2010 and 2009.
Estimates
' The preparation of financial statements in conformity with accounting principles generally accepted in the
United States of America requires management to make estimates and assumptions that affect the reported
amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial
statements and the reported amounts of revenues and expenses during the reporting period. Actual results
could differ from those estimates.
Advertising
Advertising costs are expensed when incurred. During 2010 there was $371 in advertising expense. During
2009, there was no advertising expense.
'n< ^ 01.6
WASHINGTON STREET APARTMENTS
(An elderly housing development owned by
La Quinta Redevelopment Agency)
' Case No. 04-033-953740431
NOTES TO THE FINANCIAL STATEMENTS
Year Ended June 30, 2010
' C. Mortga-ge Payable
' Rural Development
The mortgage note was assumed by the Project and is payable to Rural Development in monthly installments of
' $7,107, at an interest rate of 10% and a term of 30 years, maturing in the year 2036. As part of the Loan
Agreement, the Partnership entered into an Interest Credit and Rental Assistance Agreement that reduces the
monthly mortgage payment to $3,198, which effectively lowers the interest rate to approximately 1% over the
term of the loan. The mortgage liability of the Partnership is limited to the underlying value of the real estate
collateral pledged.
' Under the loan agreement, the Project is required to make monthly escrow deposits for real estate, taxes and
insurance premiums, and is subject to operating and return to owner restrictions.
The Project's real and personal property are pledged as collateral for the trust deed note.
Maturities of the mortgage notes in each of the next five years are approximated as follows:
2011
$ 11,691
2012
12,916
' 2013
14,267
2014
15,760
2015
17,412
Thereafter
669,110
'
$ 741,156
There has been no significant change in interest rates
available to the Project. Therefore, the fair value of the
' mortgage notes approximate the book value.
' Provident Savings Bank, FSB
The Project is financed under a deed of trust with Provident Savings Bank, FSB, dated October 31, 2008 in the
' original amount of $1,572,031. Monthly installments are $12,873 through October, 2038. The interest rate on
the note is 8.36%.
' Maturities of the Permanent Loan in each of the next five years are approximated as follows:
r
�pa •-
' -12-
017
WASHINGTON STREET APARTMENTS
'
(An elderly housing development owned by
La Quinta Redevelopment Agency)
Case No. 04-033-953740431
'
NOTES TO THE FINANCIAL STATEMENTS
Year Ended June 30, 2010
C.
Mortgage Payable (continued)
Year ending June 30,
2011 $ 27,717
'
2012 30,125
2013 32,742
'
2014 35,587
2015 38,679
Thereafter 1,366,108
$ 1,530,958
D.
Commitments and Contingencies
'
Rental Assistance Agreement
The Project has entered into a Rental Assistance Agreement with Rural Development commencing April
2010, providing rental assistance for 72 units. The agreement provides for a maximum rental assistance
commitment of $401,760. The agreement expires May 1, 2011, but is then renewable under contract with
'
Rural Development pending congressional approval of budget authority.
E.
Current Vulnerability Due to Certain Concentrations
The Project's sole asset is Washington Street Apartments. The Project's operations are concentrated in the
affordable housing real estate market. In addition, the Project operates in a heavily regulated environment.
'
The operations of the Project are subject to the administrative directives, rules and regulations of federal, state
and local regulatory agencies, including, but not limited to, Rural Development and the State Housing
Agency. Such administrative directives, rules and regulations are subject to change by an act of Congress or
an administrative change mandated by Rural Development or the State Housing Agency. Such changes may
occur with little notice or inadequate funding to pay for the related cost, including the additional
administrative burden, to comply with a change.
'
F.
Concentration of Credit Risk
The Project maintains its cash in financial institutions insured by Federal Deposit Insurance Corporation
(FDIC). Deposit accounts, at times, may exceed federally insured limits. As of June 30, 2010 the cash
balance did not exceed those limits. As of June 30, 2009, the cash balance exceeded those limits by $152,429,
' respectively. The Project has not experienced any losses in such accounts and believes it is not exposed to any
significant credit risk on cash and cash equivalents.
1
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SUPPLEMENTAL INFORMATION
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1 . 019
WASHINGTON STREET APARTMENTS
( An elderly housing development owned by
La Quinta Redevelopment Agency)
CASE NO. 04-033-953740431
RETURN ON INVESTMENT
SURPLUS CASH
FOR THE YEAR ENDED JUNE 30, 2010
Return on Investment:
Net Cash (Deficit) (from Part I, line 30) $ 27,569
Any Return to Owner, paid this year for prior year(s) (at Part 1, Line 23) + 11,250
Any RD authorized use of unrestricted cash + -
Any RD authorized release of 2% initial operating capital + -
Any special reserve deposit (over that required in the regular loan
agreement) made to reduce excess cash + -
Any special reserve "redeposit" that was required by RD as a
result of the "adjustment to the reserve" calculation in the
previous years audit's reserve account reconciliation + -
If the project had an RD approved negative budget, add back any
actual Net Deficit up to the amount of the approved negative budget + -
Net Cash/Deficit, earned from current year's operation = $ 38,819
Surplus Cash:
Ending Cash Balance (Part I, Line 33 of RD 3560-7)
20% of total O & M proposed in the year being reviewed
Surplus Cash
$ 135,407
63,637
71,770
See independent auditor's report on additional information.
-15-
ae.' 020
WASHINGTON STREET APARTMENTS
( An elderly housing development owned by
La Qunita Redevelopment Agency)
CASE NO. 04-033-953740431
REPLACEMENT RESERVE RECONCILIATION
FOR THE YEAR ENDED JUNE 30, 2010
Reserve requirement 6/30/09
(Per Rural Development area office)
(1)
282,417
Required annual reserve deposit
(From loan agreement and any subsequent amendments)
(2)
64,800
Actual reserve account deposit
76,108
Total all authorized regular reserve withdrawals *
(3)
17,434
Total all authorized excess reserve withdrawals *
-
Total all unauthorized reserve withdrawals *
-
Required reserve balance 06/30/10
(5)
329,783
(1)+(2)-(3)=(5)
Verified Balance 06/30/10
331,043
Amount account over (+) under (-) funded
1,260
* Detail of all reserve withdrawals during the fiscal year
Regular
Purpose
Date
Amount
Authorized
Exterior lighting
07/01/09
6,175
yes
Exterior lighting
07/01/09
6,175
yes
Refrigerator F3,B8,A6,J 1
10/06/09
2,278
yes
Range B8, B4, G6
10/06/09
1,059
yes
Shopping carts
05/23/10
1,747
yes
Subtotal 17,434
See independent auditor's report on additional information.
-16-
�b 0 21
WASHINGTON STREET APARTMENTS
(An elderly housing development owned by
La Quinta Redevelopment Agency)
Case No. 04-033-953740431
NOTES TO THE FINANCIAL STATEMENTS
Year Ended June 30, 2010
1. Management Fee Calculation
The management fee is based on a fee per unit occupied by tenants during the month.
Total Qualified Units (73 * 12 months)
876
Less: Rent Free Unit
(12)
Vacancies
(0)
Total Occupied Units
864
Fee Per Unit (Effective July 1, 2009)
$52
Management Fee Expense $ 44,928
2. Insurance Disclosure
The Project maintains Insurance coverage as follows:
Deductible
Coverage
Building Insurance
$2,500
$6,982,970 blanket coverage
Comprehensive Business Liability
No Deductible
$2,000,000 per occurrence
Fidelity / Employee Dishonesty
No Deductible
$10,000
Earthquake Insurance
$25,000
$20,000,000
3. Return to Owner
In accordance with the Loan Agreement, the annual return to owner is as follows:
Maximum Return to Owner $ 7,500
Budgeted Return to Owner $ 7,500
Return to Owner Paid:
Asset Management Fee — Prior Year $ 3,750
Asset Management Fee — Current Year 7,500
$ 11,250
See Independent Auditors' Report.
-17-
•I.. ' 022
WASHINGTON STREET APARTMENTS
(An elderly housing development owned by
La Quinta Redevelopment Agency)
Case No. 04-033-953740431
NOTES TO THE FINANCIAL STATEMENTS
Year Ended June 30, 2010
4. Proiect Accounts
Account Tyne
Account Title
Account
Financial
Interest
Balance
Number
Institution
Rate
Checking
Operating Account
2120367221
California Bank
& Trust
58,628
Savings
Operating Savings
2110112028
Union Bank
.65%
30,309
Checking
Tax & Insurance
2120367491
California Bank
-
& Trust
46,320
Checking
Security Deposit
2120276859
California Bank
& Trust
0.20%
26,249
Checking
Replacement Reserve
2120277909
California Bank
& Trust
0.55%
130,780
Savings
Replacement Reserve
2110153387
Union Bank
0.65%
200,263
5. Changes to Owner Entity
There have been no changes to the owner entity.
See Independent Auditors' Report. 023
n..
JOYCE E. RETHMEIER
CERTIFIED PUBLIC ACCOUNTANT
Independent Auditors' Report on Internal Control Over Financial Reporting and on Compliance and
Other Matters Based on an Audit of Financial Statements Performed in
Accordance with Government Auditing Standards
' To La Quinta Redevelopment Agency USDA Rural Development
Washington Street Apartments Moreno Valley Office
(An elderly housing development owned by Moreno Valley, CA
La Quinta Redevelopment Agency)
La Quinta, CA
1 I have audited the financial statements of Washington Street Apartments (An elderly housing development owned
by La Quinta Redevelopment Agency), RD Case No. 04-033-953740431, as of and for the year ended June 30,
2010, and have issued my report thereon dated August 31, 2010. I conducted my audit in accordance with
auditing standards generally accepted in the United States of America and the standards applicable to financial
audits contained in Government Auditing Standards, issued by the Comptroller General of the United States.
Internal Control over Financial Reporting
IIn planning and performing my audit, I considered Washington Street Apartments internal control over financial
reporting as a basis for designing my auditing procedures for the purpose of expressing my opinion on the
financial statements, but not for the purpose of expressing an opinion on the effectiveness of the Washington
Street Apartments internal control over financial reporting. Accordingly, I do not express an opinion on the
effectiveness of the Project's internal control over financial reporting.
A deficiency in internal control exists when the design or operation of a control does not allow management or
employees, in the normal course of performing their assigned functions, to prevent or detect misstatements on a
timely basis. A material weakness is a deficiency, or combination of deficiencies, in internal control, such that
there is a reasonable possibility that a material misstatement of the financial statements will not be prevented, or
detected and corrected on a timely basis.
My consideration of internal control over financial reporting was for the limited purpose described in the first
paragraph of this section and was not designed to identify all deficiencies in internal control over financial
I reporting that might be deficiencies, significant deficiencies or material weaknesses. I did not identify any
deficiencies in internal control over financial reporting that I consider to be material weaknesses, as defined
above.
i
235 West Fifth Avenue, Suite G, Escondido, CA 92025 Tel (760) 233-2244 Fax (760) 233-2166
Member of American Institute of Certified Public Accountants
Califomia Society of Certified Public Accountants "
024
I
Compliance and Other Matters
As part of obtaining reasonable assurance about whether Washington Street Apartments financial statements
are free of material misstatement, I performed tests of its compliance with certain provisions of laws,
regulations, contracts, and grant agreements, noncompliance with which could have a direct and material
effect on the determination of financial statements amounts. However, providing an opinion on compliance
with those provisions was not an objective of my audit, and accordingly, I do not express such an opinion.
The results of my tests disclosed no instances of noncompliance or other matters that are required to be
reported under Government Auditing Standards.
This report is intended solely for the information and use of the La Quinta Redevelopment Agency,
management, others within the organization and the U.S. Department of Agriculture Rural Development and
' is not intended to be and should not be used by anyone other than these specified parties.
Joyce E. Rethmeier
Certified Public Accountant
August 31, 2010
025
WASHINGTON STREET APARTMENTS
(An elderly housing development owned by
La Quinta Redevelopment Agency)
Case No. 04-033-953740431
NOTES TO THE FINANCIAL STATEMENTS
Year Ended June 30, 2010
Reportable Conditions of Non Compliance
There were no findings in 2010.
Auditee's Comments on Prior Audit Resolution Matters Related to United States
Department of Agriculture Rural Development Programs.
There were no findings in 2009.
026
JOYCE E. RE'I'IT\AEIER
CERTIFIED PUBLIC ACCOUNTANT
REPORT ON COMPLIANCE WITH REQUIREMENTS APPLICABLE
TO EACH MAJOR PROGRAM AND ON INTERNAL CONTROL OVER
ICOMPLIANCE IN ACCORDANCE WITH OMB CIRCULAR A-133
1 To La Quinta Redevelopment Agency
Washington Street Apartments
Cora liance
I have audited Washington Street Apartments (An elderly housing development owned by La Quinta
Redevelopment Agency), RD Case No. 04-033-953740431, compliance with the types of compliance
requirements described in the U.S. Office of Management and Budget (OMB) Circular A-133 Compliance
Supplement that could have a direct and material effect on Washington Street Apartment's major federal
program for the year ended June 30, 2010. Washington Street Apartment's major federal program is identified
in the summary of auditor's results section of the accompanying schedule of findings and questioned costs.
Compliance with the requirements of laws, regulations, contracts and grants applicable to its major federal
program is the responsibility of Washington Street Apartment's management. My responsibility is to express
an opinion on Washington Street Apartment's compliance based on my audit.
I conducted my audit of compliance in accordance with auditing standards generally accepted in the United
States of America; the standards applicable to financial audits contained in Government Auditing Standards,
issued by the Comptroller General of the United States; and OMB Circular A-133. Those standards and OMB
Circular A-133 require that I plan and perform the audits to obtain reasonable assurance about whether
noncompliance with the types of compliance requirements referred to above that could have a direct and
material effect on a major federal program occurred. An audit includes examining, on a test basis, evidence
about Washington Street Apartment's compliance with those requirements and performing such other
I procedures as I considered necessary in the circumstances. I believe that my audit provides a reasonable basis
for my opinion. My audit does not provide a legal determination on the Washington Street Apartments
compliance with those requirements.
In my opinion, Washington Street Apartments complied, in all material respects, with the compliance
requirements referred to above that could have direct and material effect on its major federal program for the
year ended June 30, 2010.
Internal Control Over Compliance
The management of Washington Street Apartments is responsible for establishing and maintaining effective
internal control over compliance with requirements of laws, regulations, contracts and grants applicable to
federal programs. In planning and performing my audit, I considered Washington Street Apartments internal
control over compliance with requirements that could have a direct and material effect on a major federal
program to determine my auditing procedures for the purpose of expressing my opinion on compliance and to
test and report on internal control over compliance in accordance with OMB Circular A-133, but not for the
purpose of expressing an opinion on the effectiveness of internal control over compliance. Accordingly, I do
not express an opinion on the effectiveness of Washington Street Apartments internal control over compliance.
r235 West Fifth Avenue, Suite G, Escondido, CA 92025 Tel (760) 233-2244 Fax (760) 233-2166
Member of American Institute of Certified Public Accountants
California Society of Certified Public Accountants 0 n 1
•w.. �L
I
A deficiency in internal control over compliance exists when the design or operation of a control over
compliance does not allow management or employees, in the normal course of performing their assigned
functions, to prevent, or detect and correct, noncompliance with a type of compliance requirement of a
federal program on a timely basis. A material weakness in internal control over compliance is a deficiency,
or combination of deficiencies, in internal control over compliance, such that there is a reasonable possibility
1 that material noncompliance with a type of compliance requirement of a federal program will not be
prevented, or detected and corrected, on a timely basis.
My consideration of internal control over compliance was for the limited purpose described in the first
paragraph of this section and was not designed to identify all deficiencies in internal control over compliance
that might be deficiencies, significant deficiencies, or material weaknesses. I did not identify any deficiencies
in internal control over compliance that I consider to be material weaknesses, as defined above.
This report is intended solely for the information and use of management, the La Quinta Redevelopment
Agency, others within the organization and the U.S. Department of Agriculture, Rural Development and is
fnot intended to be and should not be used by anyone other than these specified parties.
Y� ' vz"V'c/X / 60?�
August 31, 2010
�.. 028
WASHINGTON STREET APARTMENTS
(An elderly housing development owned by
La Quinta Redevelopment Agency)
Case No. 04-033-953740431
r
SCHEDULE OF FINDINGS AND QUESTIONED COSTS
FOR THE YEARS ENDED JUNE 30, 2010 AND PERIOD FROM INCEPTION (OCT. 31,
2008) TO JUNE 30, 2009
SUMMARY OF AUDIT RESULTS
1. The auditor's report expresses an unqualified opinion on the financial statements of Washington Street
Apartments.
2. No material weaknesses were identified during the audit of the financial statements
3. No instances of noncompliance material to the financial statement of Washington Street Apartments
were disclosed during the audit.
4. No material weaknesses were identified during the audit of the major federal award programs.
5. The auditor's report on compliance for the major federal award programs for Washington Street
Apartments expresses an unqualified opinion.
6. There were no audit findings that are required to be reported in accordance with Section 510(a) of
OMB Circular A-133.
7. The programs tested as major programs included:
Farmers Home Administration pursuant to Section 521 of the Housing
Act of 1949, Sec. 515 Rural Rental Housing Loans
Rental Assistance
8. The threshold for distinguishing Types A and B programs was $300,000.
9. Washington Street Apartments qualifies as a low -risk auditee.
FINDINGS
None
1
r
r
r
See independent auditor's report on additional information.
-24-
CFDA #
10.415
10.427
w.. 029
I
WASHINGTON STREET APARTMENTS
(An elderly housing development owned by
La Quinta Redevelopment Agency)
Case No. 04-033-953740431
SCHEDULE OF EXPENDITURES AND FEDERAL AWARDS
FOR THE YEARS ENDED JUNE 30, 2010 AND PERIOD FROM INCEPTION (OCT. 31,
2008) TO JUNE 30, 2009
Federal Grantor/Pass-through
Grantor/Program Title
U.S. Department of Agriculture Rural Development
Farmers Home Administration pursuant to Section 521 of
the Housing Act of 1949, Sec. 515 Rural Rental Housing
Loans
Rental Assistance
Total
CFDA Federal Expenditures
Number 2010 2009
10.415 $ 741,171 $751,754
10.427 445,396 296,642
$ 1,186,567 $1,048,396
NOTES TO SCHEDULES OF EXPENDITURES OF FEDERAL AWARDS
NOTE A -BASIS OF PRESENTATION
The accompanying schedule of expenditures of federal awards includes the federal grant activity of
Washington Street Apartments (An elderly housing development owned by La Quinta Redevelopment
Agency), RD Case No. 04-033-953740431, and is presented on the accrual basis of accounting. The
information in this schedule is presented in accordance with the requirements of OMB Circular A-133,
Audits of States, Local Governments, and Non -Profit Organizations. Therefore, some amounts presented in
this schedule may differ from amounts presented in, or used in the preparation of, the basic financial
statements.
See independent auditors report on additional information.
-25-
•a. . 030
Form RD 3560-10 MULTI -FAMILY HOUSING
(02-05) BORROWER BALANCE SHEET
PART I - BALANCE SHEET
:1C411►UALTAIA
WASHINGTON STREET APARTMENTS
CURRENT YEA PRIOR YEAR
BEGINNING DATES> 07 -01 - 09 11 -01 -a
ASSETS ENDING DATE> (6 -30 -10 1 1 (6 -30 - 09
CURRENT ASSETS
1. GENERAL OPERATING ACCOUNT .....
2. R.E. TAX & INSURANCE ACCOUNT ....
3. RESERVE ACCOUNT .........................
4. SECURITY DEPOSIT ACCOUNT .........
5. OTHER CASH (identify) Petty Cash.......
6. OTHER ...........................................
7. TOTAL ACCOUNTS RECEIVABLE (Attar
ACCTS RCVBLE 0-30 DAYS $
ACCTS RCVBLE 30-60 DAYS $
ACCTS RCVBLE 60-90 DAYS $
ACCTS RCVBLE OVER 90 DAYS $
8. LESS: ALLOWANCE FOR DOUBTFUL A
9. INVENTORIES (supplies) .....................
10. PREPAYMENTS ................................
11.
12. TOTAL CURRENT ASSETS (Add 1 t,
FORM APPROVED
OMB NO. 0575-0189
....................
.....................
....................
....................
.......................
.................... .
:h list) ............
88,937
69,169
46,320
24,478
331,043
272,369
26,249
26,234
150
150
48,145
42,703
CCOUNTS .....
....................
..........
iru 11).............
823
17,598
541,667
452,701
FIXED ASSETS
13. LAND ......................................................
14. BUILDINGS ..............................................
15. LESS: ACCUMULATED DEPRECIATION ......
16. FURNITURE & EQUIPMENT ........................
17. LESS: ACCUMULATED DEPRECIATION ......
18. DEFERRED FINANCING COSTS
19. TOTAL FIXED ASSETS (Add 13 thru 18)...
OTHER ASSETS
20. DEPOSITS
21. TOTAL ASSETS (Add 12, 19, and 20)...
LIABILITIES AND OWNERS EQUITY
CURRENT LIABILITIES
22. TOTAL ACCOUNTS PAYABLE (Attach list) ..................
I ACCTS PAYABLE 0-30 DAYS $
ACCTS PAYABLE 30-60 DAYS $
ACCTS PAYABLE 60-90 DAYS $
ACCTS PAYABLE OVER 90 DAYS $
23. NOTES PAYABLE (Attach list)ACCRUED EXPENSES......
24. SECURITY DEPOSITS ............................................
25. TOTAL CURRENT LIABILITIES (Add 22 thru 24) .......
3,447,094
3,447,094
2,748,477
2,736,127
(152,830)
(60,803
0
0
0
0
15,620
17,008
6,058,361
6,139,426
6,400 4,540
6,606,428 6,596,667
' According to the Papenvork Heduchon Act 011995, an agency may not Conduct or sponsor, and a person Is not requIred to respond 0 a Collection o
information unless it displays a valid OMB control number. The valid OMB control number for this information collection is 0575-0189. The time required
to complete this information collection is estimated to average 2 hours per response, including the time for reviewing instructions, searching existing data
sources, gathering and maintaining the data needed, and completing and reviewing the collection of information.
See independent auditor's report on additional information. n r� 9
-26- 0 UJ8
I
LONG TERM LIABILITIES
26.
NOTES PAYABLE RURAL DEVELOPMENT
2,272,1141
2,306,006
27.
OTHER (Identify) Tenants'oreoaidrents
2,301
1,731
'
28.
TOTAL LONG-TERM LIABILITIES (Add 26 and 27).....
2,274,415
2,307,737
29.
TOTAL LIABILITIES (Add 25 and 28) ..................
2,321,735
2,340,379
30.
OWNER'S EQUITY (Net Worth) (21 minus 29) .............
4,284,693
4,256,288
31.
TOTAL LIABILITIES AND OWNER'S EQUITY
6,606,428
6,596,667
(Add 29 and 30)
1
Section 1001 of Title 18, United States Code provides: "Whoever, in any matter within the jurisdiction of any
department or agency of the United States knowingly and willfully falsifies, conceals or covers up by any trick, scheme, or
device a material fact, or makes any false, fictitious or fraudulent statements or representations, or makes or uses any
false writing or document knowing the same to contain any false, fictitious or fraudulent statement or entry, shall be fined
under this title or imprisoned not more than five years, or both.
I HAVE READ THE ABOVE WARNING STATEMENT AND I HEREBY CERTIFY THE FOREGOING INFORMATION IS
COMPLETE AND ACCURATE TO THE BEST OF MY KNOWLEDGE.
I(Date) (Signature of Borrower or Borrower's Representative)
(Title)
PART II -THIRD PARTY VERIFICATION OF REVIEW
I/We have reviewed the borrower's records. The accompanying balance sheet, and statement of actual budget and
income on Form RD 3560-7, is a fair presentation of the borrower's records.
I/We certify that no identity of interest exists between me/us and any individual or organization doing business
with the project or borrower.
(Date)
(Signature)
(Name and Title)
(Address)
❑ In lieu of the above verification and signature, a review completed, dated and signed by a person or firm
qualified by license or certification is attached.
See independent auditor's report on additional information. 032
-27-
F
FORM APPROVED
OM B NO.0575-0189
Form RD 3560-7
( 05 06)
MULTIPLE FAMILY HOUSING PROJECT BUDGET
PROJECT NAME
WASHINGTON STREET APARTMENTS
BORROWER NAME
LA QUINTA REDEVELOPMENT AGENCY
BORROWER ID AND PROJECT NO.
04-033-953740431
Reporting Period
Budget Type
Project Rental Type
Project type
Borrower Type
Plan Code
❑X Armual
❑ Initial
❑Family
1-1IFug--m
❑Individual
❑Quaznly
ORq larReport
X❑Elderly
❑ ILimimd Profit
❑Coryontion ❑ IA. of Farmer,
9ovowcr Acwunting
❑Monthly
❑Rem C'lunge
❑cmuiegare
X❑ INon-Profit
❑Limited Panes OrgofFarm
Method
❑$MR
❑Gmuphome
X❑ONer ❑ IWurEas
❑Other Snvieing
[]Mixed ❑LH
❑ IGen-al Parma
❑Cazh X❑Acnval
❑ Ineligible
BEGINNING DATES,
ENDING DATES
OPERATIONAL CASH SOURCES
I. Rental Income............................................................
2. RHS Rental Assistance Received .............................. .
'3. Occupancy Surcharges Received ...................... .........
4. Laundry and Vending............................................................
5. Interest Income............................................................
6. Tenant Charges............................................................
,7. Other - Project Sources.......................................................
8. Less (V.,ee Y and Contingency Allouanre) ........................
9 Less(Agency Approved Incentive Allo wnce) ........................
10. SUB -TOTAL [(I then 7) - (8 & 9)/.......................................
NON -OPERATIONAL CASH SOURCES
H. Cash - Non Project............................................................
12. Authorized Loan (Non-RHS) .......................................
13. Transfer From Reserve.........................................................
14, SUB -TOTAL (11 thru 13)......................................................
15. TOTAL CASH SOURCES (10+14).......................................
OPERATIONAL CASH USES
16. Total O&M Expenses (From Part 11)
17, RHS Debt Payment .............
18. RHS Payment (Overage) .......
19. RHS Payment (Late Fee) .......
20, RHS Payment (Occupancy Suechorge)
21. Tenant Utility Payments .I........
22, Transfer to Reserve .............
23. Retmn to Owner .............
24. SUB-TOTAL(16thru 23) .......
NON -OPERATIONAL CASH USES
25. Authorized Debt Payment (Non-RHS).......................................
26. Annual Capital Budget (From Part 111, Lines 4-6)' ........................
27. Miscellaneous............................................................
28. SUB -TOTAL (25 thin 27)......................................................
29. TOTAL CASH USES 04+28).......................................
30.
NET CASH (DEFICIT) (15-19)
ICASH BALANCE
31,
Beginning Cash Balance
32.
Accrual to Cash Adjustment
33,
Ending Cash Balance (30+31+32)
FIN
CURRENT ACTUAL PROPOSED COMMENTS
BUDGET I BUDGET or(YTD)
(07/01/09) (07/01/09)
627,264
170,569
-.a b; �+r 4v'
'. weir
�,,.
445,396
-
'a -4 �Y+Y
i, ,t�.
4,000
4,917
1,210
2,188
425
2,746
42
12,545
620,354
625,958
87,230 17,434
87230 I - 17434
707,584 1 643,392
707,457 1 615,823
............ 1 127 1 27,569
63,000
1 93,797
...".. ti .. .. 1`8'
63,127
14,041
1 135,407
. _...._.
mtb/m reporting burden for rhu ro/(ecrion efinfammion a atinmhd m average 4 hens per ies xi, including she time forievievin8 instructions, searese, a&ring data sources. gathering and
ainraining IXe dam needed, andeomp(eein8 and rmiexin%Ihe mlfecrian oji I r^abort. Smdcommenu regarding rhu burden atimarc or anY other arpea o/Mv collection ofieformadmi, including
suggadivejo,i-Mv,ngthninrdevie U.S. DixnaaentofAgdculame, Clearance O$ceq STOP 7602. 14001ndesimmence AvenuaSW, te hingmn. D.0 10250-7601. Please DO NOT RETURN
IftatmmhrrhismAdress. Foruaedmehemixl USDA inylle nly, you a, am required to respond to this collation ofinfoinnown an(asitannuity, a nnremly ralN OMB mntro( mrmbn.
I
See independent auditors report on additional information.
-28- Q33
'aa.�
I
IPART II - OPERATING AND
I.
2.
Maintenance and Repairs Payroll .............. ..................
Maintenance and Repairs Supply ................................
3.
Maintenance and Repair Contract ............ ... _...............
4.
Painting and Decorating ...... _...__.................
'
5.
6.
Snow Removal __......__._.... ......... ......
Elevator Maintenance/Contact ............ _.......... _......
7.
Grounds........................................................
8.
Services ........_._..._..... _............_.. _.. _...
'
9.
10.
Annual Capital Budget (From Pail V - Operating)
Other Operating Expenses ................................
11.
SUB -TOTAL MAINT. & OPERATING (I thou 10) ..............
12. Electricity
13. Water .__.... _... _........................................
14. Sewer ................................................ ........
15. Fuel (OiUCooi1Gas) ...............................
16. Garbage & Trash Removal ................................
17. Other Utilities........................................................
18. SUB -TOTAL UTILITIES (12 thou 17) ...........................
19. Site Management Payroll _.... .........................
20. Management Fee ....._.... ._.......... _..... I .......................
21. Project Auditing Expense ................................
22. Project Bookkeeping/Accounting................................
23. Legal Expenses.........................1..............................
24. Advertising ..........
25. Telephone& Answering Service ....... ......... _...._........
26. Office Supplies .....__ ... .... .......... .._..........................
27. Office Furniture & Equipment _
28. Training Expense ......_......... ................ .........._........
..
29. Health Ins. & Other Emp. Benefits ................................
30. Payroll Taxes ......................................... I _ _.........
31. Workman's Compensation ........_......................
32. Other Administrative Expenses .... ............._..... ........
33. SUB -TOTAL ADMINISTRATIVE (19 thru 32) ..............
34. Real Estate Taxes ........................................................
35. Special Assessments ................................
36. Other Taxes, Licenses & Permits .................. I.............
37. Property & Liability Insurance ...................
38. Fidelity Coverage Insurance ................................
39. Other Insurance ......... ........... _.............. ...................
40. SUB -TOTAL TAXES & INSURANCE (34 thru 39) ..............
CURRENT
PROPOSED I COMMENTS
ACTUAL BUDGET or(YTDI
30,160
29,187
12,280
13,968
27,000
16,024
8,500
2,113
36,500
33,260
3,990
4,446
15,720
23,621
3,950
4,919
138,100
127,538
9,50U
9,897
24,000
17,051
22162
20,266
3,000
1,376
9,500
6,822
68,162
55,412
27,880
25,869
44,928
44,928
7,000
5,783
2,500
816
300
371
3,250
2,716
5,750
4,280
I,000
137
7,883
5,123
5,056
4,964
4,545
4,250
6,066
3,856
116,158
103,093
845
800
7,107
9,886
900
62
23,010
22,195
32,662
32,143
41. TOTAL O&M EXPENSES (11+18+33+40) ............... 1 355,082 1 318,186
See independent auditors report on additional information.
-29- �._ 03,4
' PART HI — ACCOUNT BUDGETING/STATUS
CURRENT PROPOSED COMMENTS
BUDGEF ACTUAL BUDGET I or YTD
RESERVE ACCOUNT:
I BEGINNING BALANCE ..... --- ..... ..... .......
2 TRANSFER TO RESERVE... .... - ................
TRANSFER FROM RESERVE ......... ...... .........
3 OPERATING DEFICIT..........
4 ANNUAL CAPITAL BUDGET (Part V - Reserve
5 EQUIPMENT REPAIR & REPLACEMENT......
6 OTHER NON -OPERATING EXPENSES..........
7TOTAL (3 throb).... .... .... _..................
8 ENDING BALANCE [(/+2)-7]............ .......
.
GENERAL OPERATING ACCOUNT:*
BEGINNING BALANCE ... ......_..................
69,319
'
ENDING BALANCE..... ................ .......... .........
99,087
REAL ESTATE TAX AND INSURANCE ESCROW ACCOUNT:*
BEGINNING BALANCE .... ................. ---
24,478.
'
ENDING BALANCE. .............................. .
46,320
TENANT SECURITY DEPOSIT ACCOUNT:*
BEGINNING BALANCE........_ ...................
26,234
ENDING BALANCE ..... _........ _._._....... ....
26,249.
*(Complete upon submission ofaemal e,Rensea)
NUMBER OF APPLICANTS ON WAITING LIST... RESERVE ACCT. REQ. BALANCE.....
NUMBER OF APPLICANTS NEEDING RA. AMOUNT AHEAD/BEHIND... .... ....... -
See independent auditors report on additional information.
- 30 m.. 035
PART IV -- RENT SCHEDULE AND UTILITY ALLOWANCE
A. ('IIRR FNT .tFFRnVFn RFNTC/IITII ITV f11nWAN!`C.
UNIT DESCRIPTION
RENTAL RATES
POTENTIAL INCOME FROM EACH
RATE
BR SIZE
UNIT
TYPE
NUMBER
BASIC
NOTE
RATE
HUD
BASIC
NOTE RATE
I HUD
UTILITY
ALLOWANCE
1 BR
M
72
S 726
S 861
E -
S 627,264
$ 743.904
S -
S 72
1BR
Z
1
E -
S -
$ -
$ -
S -
E -
s
E -
$ -
$ -
b -
s -
'S -
S -
E -
$ -
S -
b -
$ -
E -
S
8 -
s -
$ -
E -
$ -
E -
E -
S
S -
$
8
$
s
$
$ -
$ -
S -
$ -
E -
% -
b -
$
$
E
S
E
S
E
CURRENT RENT TOTALS]$
627,264
$ 743,904
$
BASIC NOTE HUD
UNIT DESCRIPTION
RENTAL
RATES
POTENTIAL INCOME FROM EACH
BR SIZE
UNIT
TYPE
I NUMBER
BASIC
NOTE
RATE
HUD
BASIC
NOTE RATE
HUD
I BR
M
72
$ 726
S '. 861
S -
E 627,264
S 743.9N
E
1 BR
Z
1
S -
S -.
$ . -
s -
$ -
$
$ -
$ -
$ -
% -
$ -
s
$ -
S -
$
$
S
S
8
4
S
S
S
E
b
$
E
$ --
8 -
E -
E -
$ -
S
CURRENT RENT TOTALS
$ 627,264
$ 743,904
$
13ANIC NUIE HUD
C. PROPOSED UTILITY ALLOWANCE -Effective Date:
BR SIZE
UNITTYPE
NUMBER
ELECTRIC
V GAS �V
WATERvyV
SEWER
TRASH
OTHER
TOTAL
1 BR
M
72
62
14
76
1 BR
Z
1
::4
See independent auditor's report on additional information.
_31_
-a.a - C. 3 6
Appliances:
Range
Refrigerator
Range Hood
Washers & Dryers
Carpet & Vinyl:
1 Br.
2 Br.
3 Br.
4 Br.
5 Br.
Common Area
Cabinets:
Kitchens
Bathroom
Doors:
Exterior
Interior
Window Coverings:
Detail:
Heating & Air Conditioning:
Furnace
HVAC
Plumbing:
Water Heater
Bath Sinks
Kitchen Sinks
Faucets
Toilets
Major Electrical:
Detail: Exterior lighting
Structures:
Windows
Screens
Walls
Roofing
Siding
Exterior Painting
Paving:
Asphalt
Concrete
Seal & Stripe
Landscape & Grounds:
Landscaping
Lawn Equipment
Fencing
Recreating Area
Signs
Accessibility Features:
Detail:
Automation Equipment:
Site Management
Common Area
Other:
List:
List:
List:
List:
List:
List:
Actual I Actual Number Actual
n Reserve I From ODeratino Of Units I Total
1,059
3,333
11
4,392
2,279
3,388
10
5,667
12,350 1 1 1 12,350
TOTAL CAPITAL EXPENSES: 1 17,434 1 23,621 1 1 41,055
See independent auditor's report on additional information.
_32_
C37