From its $21.42 million level in FY’08, assets dropped 9 percent in FY’09 to $19.40 million, sliding further to $19.08 million.
According to the audit conducted by Deloitte & Touche LLC, the decline in assets is attributed to the use of the housing assistance payment, or HAP, equity to fund the deficiency in revenues received from the grantor over actual HAP payments made for FY’09.
The audit further reasoned that this decrease in assets resulted from all disaster vouchers from Typhoons Tingting and Chaba had been converted to regular vouchers that led to a total of 363 voucher units that the housing agency administers and monitors for compliance.
The same could be said for the decline in assets from FY’08 to FY’09.
Of the $19.08 million, $11.796 million was invested in capital assets, a $315,347 difference from its FY’09 level of $12.11 million.
There were $13.47 million in non-current assets for FY’10: $9.65 million, land; $1.59 million, property and equipment; $1.67 million, loans receivable and $554,042 in net foreclosed real estate assets.
The housing agency had $7.46 million in liabilities last fiscal year: $4.35 million, deferred revenues; $2.02 million, reserved for loan guaranty; $565,261, due to grantor agency; $521,292, accounts payable and accrued expenses.
In FY’10, there were more vouchers utilized under the Housing Choice Voucher program — 330 vouchers in FY’09 compared to 341 vouchers for 2010.
Of the 341 vouchers issued last year, 42 were given to applicants in the waiting list. In 2009, 53 of the 330 vouchers were issued to those on the waiting list.
Last year, while Mihaville lost one occupant from 47 occupants of the 48 units down to 46 occupants, Koblerville remained 32 of 34 units occupied. The audit noted that the turnover of tenants was due to relocation requests and both properties have been properly maintained.
On Rota, under the Rota Multi-Family/New Construction Program, the Liyo’ Housing Subdivision had a 36.66 percent occupancy rate with 11 of 30 units occupied.
What drives the occupancy rate down for this program for the last three years was the existence of the HCV program with many qualified applicants for housing assistance preferring HCV because they could choose unit and location and units are semi- to fully furnished.
The audit also revealed that aside from a competing hosuing program, occupants expressed concerns with the safety at the Liyo’ owing to structural problems that drain NMHC of significant amounts of money for maintenance.
It further showed as disincentive for occupants the security deposit required by CUC for utilities connection.
Despite these problems, NMHC is intensifying efforts to keep the units occupied through advertisements and notices aside from its continued efforts in ensuring the units meet HUD’s Uniform Physical Condition Standards.
There was also a decline in the number of vouchers used. Of the total 50 HCV or Housing Choice Vouchers, 24 were used compared to 25 the previous year.
Although many are gravitated to the HCV program, knowledge of the limited vouchers and the long waiting period discourage potential occupants, according to the audit.
On Tinian, 20 units of the Multi-Family/New Construction Program have been fully occupied; however, one of five vouchers issued is being utilized while the remaining four moved to Saipan.
Two of the 20 units were vacated for renovation and extermination purposes at the end of FY’10.
Under the HCV program, Tinian has had only one out of 341 vouchers since 2008. While the waiting list for Saipan had been closed in Jan. 2009, it remained open for Tinian with some of the 42 vouchers for Saipan had been issued to Tinian.
In 2010, NMHC received $1.39 million — compared to $1.528 million in FY’09 — in Community Development Block Grant which it allocated for the purchase of life saving and fire protection equipment and A&E design for Tinian Fire Station, rehabilitation of Dan Dan Children’s Park and Susupe Sprots Complex Softball Field fencing.
It likewise had $62,844 in Emergency Shelter Grant in 2010, a $9,970 increase from $52,874 in FY’09.
Through a $589,165 Homeless Prevention and Rapid Re-Housing Program, the NMHC was able to assist 200 families in FY’10, with 50 percent of the funds used to pay for rent and utilities to keep these families off the streets.
Under the Community Development Block Grant-Recovery Funds, the NMHC received $1,374,719 that it used to spur economic activity, improve infrastructure and invest in environmental protection. Under this grant, the housing agency was able to fund the following projects: Grotto Bathrooms Infrastructure Improvement, Sinapalo Elementary School Public Facility, Tinian Infiltration System Infrastructure Improvement and Chalan Kanoa Kios Ku Leadership Courtyard Public Facility.
Under the Housing Economic Recovery Act of 2008, the NMHC received $364,162 through the Neighborhood Stabilization Program. The housing agency used this grant to defray the costs of rehabilitating foreclosed and abandoned residential properties and made available opportunities to borrowers to keep their homes.
From this grant, 7 homes had been rehabilitated.
