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Minutes of a Meeting of the
Newport News Redevelopment and Housing Authority
December 16, 2025
The projected total housing revenue for the year is $7,346,577, an estimated overall
Operating Budget for
Calendar Year 2026 and decrease of $92,302 from last year. The projected net operating subsidy of
Chee Te oi gn $4,240,963 makes up the bulk of the total revenue and is down $441,344 from last
HUD Form 52574 year due to the demolition of 88 housing units at Marshall Courts. Additionally,
NNRHA received the final installment of the Asset Repositioning Fee for Ridley Place
in 2025. The net rental revenue collected from tenants projected for this fiscal year
is $2,435,342. This amount is $390,778 more than last year due to more accurate
rent forecasting utilizing our current average rent rolls, which is based on current
household income. All properties are projected to have occupancy rates of 97-99%.
Projected investment income is up significantly due to increased earnings on the
VML/VACO Net Asset Value Stable Fund investments. The current dividend rate
averages around 4.09%. The total revenue for all Asset Managed Projects (AMPs) is
$7,346,577. This is less than CY25 ($92,302 or 1.2%) mainly because the Authority
removed 88 public housing units from inventory.
The total estimated operating expense of our public housing properties is $6,853,562,
which is an increase of $332,302 over last year’s budget. NNRHA continues to
experience increases in the purchase of all goods and services. Expenses for utilities
for public housing properties are projected to increase overall by $184,000, which is
10.02% more than last year. This increase is due to increases in electric, water,
sanitation costs, and stormwater fees. HRSD costs have continued to increase
annually.
This year, total maintenance expenditures are budgeted to increase by $68,306 to
$1,741,930. The budgeted insurance line items have increased 8.7%, mostly due to
overall market conditions. The Authority’s General Expense includes such items as
the Payment-in-lieu-of-taxes (PILOT) and collection losses (2% of rents) which are
both a function of total rental income and have increased slightly from last year.
The Asset Management fees the AMPs pay to the COCC is projected to be $85,320.
The fees are based on total housing units and are paid only when the AMPs have a
positive cash flow. All AMPs are projected to pay the fee in 2026.
This budget projects the Authority’s public housing operating reserve to increase by
approximately $493,015 in CY 2026. This budget projects the Authority’s public
housing operating reserve to increase by approximately $493,015 in CY 2026.
The revenue for the COCC is made up of fees allowed to be assessed to all programs
administered by the Authority. The total projected revenue is $2,826,600 which is
approximately $123,505 less than in CY25. Overall, grants and Housing Choice
Voucher fees decreased this year. Since the Authority conservatively budgeted the
number of vouchers issued this year, the fee received from the Housing Choice
Voucher program decreased as well. There were a few grant programs that ended
this year; the CDBG CARES and the HOME American Rescue Plan (ARP) programs
ended in 2025, therefore the administrative fees associated with these programs
have ended. The CNI grant will conclude in September 2026; therefore, positions
funded from this grant will end, and the management fee and the fee associated with
the Infrastructure and Wellness Trail projects have also ended. The CNI Accountant
position in Finance will end in September 2025 and the vacant Procurement Supply
Specialist will not be filled at this time.
In 2025, Great Oaks Apartments completed its 15-year compliance period. At that
time, the investor member exited the partnership and NNRHA created a new entity,
GO Senior LLC, to replace the investor member. This change enabled Great Oaks
Apartments to start paying on a promissory note that it has with the Authority. Annual
interest payments of $72,361 will be paid to the COCC for the next nineteen years.
The expenses to the COCC are all typical administrative functions of the Authority
including program management functions of the Executive Office, and the Finance,
Administrative Services, and Community Development Departments, specialized
maintenance services and housing program oversight. Overall COCC expenses total
$2,805,696 leaving a positive cash flow of $20,904.Jump to an indexed page (43 of 43)