The 2009 Executive Budget Document
Department of Housing and Community Development
Mission Statement
The Department of Housing and Community Development works in partnership to make Virginia’s communities safe, affordable, and prosperous places in which to live, work and do business.
Operating Budget History
| General Fund | Nongeneral Fund | Positions | |
|---|---|---|---|
| 2005 Appropriation | $ 28,718,516 | $ 71,323,791 | 127.00 |
| 2006 Appropriation | $ 43,599,134 | $ 71,318,291 | 136.00 |
| 2007 Appropriation | $ 50,535,545 | $ 64,572,537 | 136.00 |
| 2008 Appropriation | $ 46,779,781 | $ 64,542,537 | 141.00 |
| General Fund | Nongeneral Fund | Positions | |
|---|---|---|---|
| 2009 Base Budget | $ 44,541,138 | $ 71,513,064 | 110.00 |
| 2009 Addenda | $ (3,760,658) | $ 0 | (4.00) |
| 2009 Total | $ 40,780,480 | $ 71,513,064 | 106.00 |
| 2010 Base Budget | $ 43,194,485 | $ 71,473,064 | 110.00 |
| 2010 Addenda | $ (3,790,849) | $ 10,371,776 | (4.00) |
| 2010 Total | $ 39,403,636 | $ 81,844,840 | 106.00 |
Recommended Operating Budget Addenda
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Transfer appropriation and positions to the correct service areaRealigns funding and positions between programs and service areas.
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Increase federal appropriation to reflect increased funding from the Department of Housing and Urban DevelopmentIncreases the agency's federal fund appropriation to reflect federal grant awards. For 2010, $10.4 million (NGF).
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Provide funding for the department to relocate to Main Street CenterProvides funding to cover unbudgeted costs associated with the relocation of the Department of Housing and Community Development from its current leased office space to state-owned office space and associated parking. For 2009, $56,410 (GF). For 2010, $202,431 (GF).
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Reflect Governor’s October reductions in agency budgetsReflects the reductions approved by Governor Kaine in October 2008 for 2009 and the corresponding continuation of savings in 2010. See Part D of this document for reduction details. For 2009, a decrease of $3.7 million (GF) and four positions. For 2010, a decrease of $4.9 million (GF).
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Implement targeted reductionsImplements targeted reductions for 2009 and 2010 included in Governor Kaine's 2008-2010 Budget Reduction Plan. Reduction details can be found in Part D of this document. For 2009, a decrease of $94,085 (GF). For 2010, a decrease of $884,100 (GF).
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Provide funding for the Fort Monroe Federal Area Development AuthorityProvides general fund support for approximately 50 percent of the Fort Monroe Federal Area Development Authority's (FMFADA) operating expenses in FY 2010. Currently, the Appropriation Act includes an appropriation only in FY 2009 for FMFADA. In addition, language also clarifies that beginning with FY 2010, FMFADA will be responsible for all of the authority's fiscal, procurement, human resources, and any other business related activities, because the Department of Housing and Community Development will no longer serve as the authority's fiscal agent. FMFADA's employees will continue to be eligible for state retirement and benefits. For 2010, $1.6 million (GF).
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Provide funding for foreclosure counselingProvides additional funding for foreclosure counseling services statewide. The funds may be used to provide training and assistance to counselors specializing in foreclosure prevention, loss mitigation and consumer rights under existing mortgage lending laws and regulations, or may be used for grants to nonprofit organizations to support new or expanded foreclosure prevention counseling services targeted to areas of the state and populations at greatest risk. For 2010, $250,000 (GF).
Budget Reduction Strategies
October Reduction Strategies
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Delay filling vacant building code position
Delay filling a vacant senior compliance inspector for building codes position in the Abingdon office. The functions normally assigned to this position are being performed by staff in Richmond.
FY 2009 FY 2010 General Fund Savings $ (41,000) $ (41,000) -
Eliminate positions
This action eliminates positions throughout the agency's various divisions.
FY 2009 FY 2010 General Fund Savings $ (142,488) $ (405,515) Position Changes (4.00) (4.00) Layoffs 4 0 -
Eliminate the balance of funding for the community development bank
Eliminate the balance of funding appropriated for start-up and administrative support for Virginia Community Capital, the Commonwealth's community development bank. The bank has opened and can sustain operations on internally generated assets.
FY 2009 FY 2010 General Fund Savings $ (150,000) $ 0 -
Pay International Code Council dues with nongeneral funds
Pay dues to the International Code Council (ICC) from nongeneral fund revenue collected from an assessment on building permit fees paid by local governments for the Virginia Building Code Academy. The ICC is a membership association dedicated to building safety and fire prevention, and develops the codes used to construct residential and commercial buildings, including homes and schools. Housing pays for memberships for the agency and local officials.
FY 2009 FY 2010 General Fund Savings $ (18,000) $ (18,000) -
Reduce administrative costs for the Livable Home Tax Credit
Reduce funding for outreach and marketing of the Livable Home Tax Credit. The agency has $8,000 in its budget in each year for this purpose. Funding will be phased-out beginning in FY 2009. The Livable Home Tax Credit provides a tax credit for retrofitting residences with accessibility features. The agency markets the Livable Home Tax Credit by presenting information about the program to various organizations and providing printed educational materials.
FY 2009 FY 2010 General Fund Savings $ (7,000) $ (8,000) -
Reduce costs for postage services
Capture postage savings resulting from the agency's contract with the Department of General Services for postage services.
FY 2009 FY 2010 General Fund Savings $ (5,000) $ (5,000) -
Reduce discretionary expenses in the Division of Building & Fire Programs
Reduce expenses for travel, training, office equipment, and supplies.
FY 2009 FY 2010 General Fund Savings $ (5,500) $ (5,500) -
Reduce funding for single resident housing
Reduce funding for predevelopment assistance to nonprofit homeless organizations. Through the Single-Room Occupancy program, Housing provides grants to nonprofit homeless organizations to assist during the initial research stages of development of single-room occupancy facilities. The funds can be used for legal, architectural and engineering, consultation, and environmental services. This program will have $150,000 remaining after this reduction.
FY 2009 FY 2010 General Fund Savings $ (150,000) $ (150,000) -
Reduce funding for the Indoor Plumbing Rehabilitation Grant Program
Reduce funding for the rehabilitation of homes lacking indoor plumbing. Indoor plumbing rehabilitation efforts will continue throughout the state. This leaves a remaining balance of $2.88 million in each year, from the general fund, and an estimated $4.5 million in each year, of federal funds, to continue to provide services.
FY 2009 FY 2010 General Fund Savings $ (1,600,000) $ (1,600,000) -
Reduce funding for the Seed Program
Reduces funding to nonprofits to support capacity building. Funding will be phased-out beginning in FY2009. Participating organizations receive training in strategic planning, board and staff development, financial management, fund development, marketing and communications, and information systems.
FY 2009 FY 2010 General Fund Savings $ (30,000) $ (200,000) -
Reduce funding for the Virginia Enterprise Initiative grant program
Reduce funding for the Virginia Enterprise Initiative (VEI) program. The VEI program provides an opportunity for disadvantaged individuals to become economically independent through microbusiness training and access to credit. On a competitive basis, VEI provides grants and technical assistance to local organizations that will deliver microenterprise services. The program will have a remaining balance of $450,000 to maintain effort in this program.
FY 2009 FY 2010 General Fund Savings $ (50,000) $ (50,000) -
Reduce funding for the Virginia Enterprise Zone Program
Reduce funding for incentive grants provided to businesses located in enterprise zones. The program is a partnership between state and local government that stimulates job creation and private investment within designated areas throughout the state. Based on FY 2008 demand and the remaining appropriation, this strategy will result in a further proration of eligible credits.
FY 2009 FY 2010 General Fund Savings $ (1,106,100) $ (2,250,000) -
Reduce funding for the Virginia Main Street program
Reduce funding for consulting services and training provided through the Virginia Main Street (VMS) program. The VMS program helps localities develop their own strategies to stimulate long-term economic growth and revitalize the economic vitality of downtown commercial districts.
FY 2009 FY 2010 General Fund Savings $ (25,000) $ (14,990) -
Reduce operating expenses of the Fort Monroe Federal Area Development Authority
Reduce various operating expenses for the Fort Monroe Federal Area Development Authority (FMFADA) such as memberships, training, website design, and other expenses. FMFADA will reduce the frequency of its board meetings and meetings of the Historic Preservation Advisory Group. To the extent possible, FMFADA will reduce its travel expenses by maximizing its use of electronic communications. In FY 2009, FMFADA will also delay the start dates for vacant positions.
FY 2009 FY 2010 General Fund Savings $ (76,565) $ 0 -
Reduce the number of wage employees
Eliminate a wage position in the agency.
FY 2009 FY 2010 General Fund Savings $ (48,000) $ (48,000) -
Supplant general fund dollars in the Division of Housing with nongeneral funds
Cover expenses within the Division of Housing with federal funds. The agency anticipates sufficient federal revenue to continue this supplant for the next two years.
FY 2009 FY 2010 General Fund Savings $ (40,555) $ (40,555) -
Supplant general fund dollars within the Division of Administration with nongeneral funds
Cover personal services costs within the Division of Administration with indirect cost recovery funds.
FY 2009 FY 2010 General Fund Savings $ (169,030) $ (79,554) -
Supplant general fund dollars within the Division of Community Development with nongeneral funds
Cover operating expenses in the Division of Community Development with nongeneral fund resources. This is a one-time action.
FY 2009 FY 2010 General Fund Savings $ (42,345) $ 0 -
Supplant general fund expenses of the Fort Monroe Federal Area Development Authority with nongeneral funds
Supplant general fund dollars with existing grant funds from the Department of Defense. This is a one-time action.
FY 2009 FY 2010 General Fund Savings $ (16,400) $ 0
December Reduction Strategies
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Absorb Workforce Transition Act retirement costs in the Virginia Retirement System
When an agency implements layoffs for employees eligible for retirement, in lieu of severance, the employee is offered an enhanced retirement package. In such cases, the agency would normally pre-pay the Virginia Retirement System for the cost of the enhanced package. This savings strategy would require the Virginia Retirement System to temporarily absorb such costs incurred as the result of layoffs in the Governor's 2008-10 reduction plan and amortize the cost as part of future actuarial valuations.
FY 2009 FY 2010 General Fund Savings $ (94,085) $ 0 -
Reduce funding for Shelter Improvement Grants
Eliminates funding to assist three homeless shelters in FY 2010. Funds are used for rehabilitation, repair, and improvements to bring emergency shelter and transitional housing facilities into compliance with health and building codes, and for administration, operations and supportive services.
FY 2009 FY 2010 General Fund Savings $ 0 $ (100,000) -
Reduce funding for the research and development centers
Reduces funding for the Lynchburg Research and Development Center. This reduction leaves a balance of $425,000 in funding to continue strategic investment in research and development related to the nuclear industry cluster.
FY 2009 FY 2010 General Fund Savings $ 0 $ (75,000) -
Reduce funding for the Southeast Rural Community Assistance Project (SERCAP)
Reduces funding included in Housing and Community Development's budget for SERCAP. SERCAP uses these funds to provide assistance to low-income individuals for water and sewer connections.
FY 2009 FY 2010 General Fund Savings $ 0 $ (200,469) -
Reduce funding for the Southwest Virginia Water Construction Grants
Reduces funding for public water projects in Southwest Virginia. This strategy will result in a reduction in the scope of projects and number of households being served. This reduction leaves a balance of $2.1 million to provide services.
FY 2009 FY 2010 General Fund Savings $ 0 $ (225,000) -
Reduce funding for the Southwest Virginia Water Planning Grants
Reduces funding for planning efforts for water and sewer projects. This action will result in a reduction of $18,750 to each of the three Planning District Commissions that receive these funds.
FY 2009 FY 2010 General Fund Savings $ 0 $ (56,250) -
Reduce pass-through funding for Planning District Commissions (PDC's)
Reduces pass-through funding for PDCs in FY 2010. Included in Housing's budget is formula driven funding for the 21 PDCs. In addition, several PDCs also receive supplemental funding. This action will reduce all pass-through funding for the PDCs.
FY 2009 FY 2010 General Fund Savings $ 0 $ (202,558) -
Remove additional funding for pay practices
Removes the half-percent pay practices funding granted to Executive branch agencies in the 2006-08 biennium.
FY 2009 FY 2010 General Fund Savings $ 0 $ (24,823) -
Transfer nongeneral fund balances to the general fund
Transfers special fund balances to the general fund.
FY 2009 FY 2010 Revenue / Transfers $ 150,000 $ 0 -
Transfer nongeneral fund balances to the general fund
Captures nongeneral fund balances.
FY 2009 FY 2010 Revenue / Transfers $ 150,000 $ 0