The Metropolitan Housing Alliance's budget for next year is projected to increase by 14 percent, to almost $18.4 million.
The preliminary budget presented to the Little Rock Housing Board of Commissioners last week represents the first time projected funding has risen above pre-sequestration amounts from 2013.
In 2013, the federal government implemented a 5 percent across-the-board cut to the U.S. Department of Housing and Urban Development, which in turn decreased funding to public-housing authorities across the country that are primarily funded with HUD money.
The projected 2016 budget for the Metropolitan Housing Alliance in Little Rock is about $2 million higher than its 2013 budget of $16.5 million, which decreased to $15.8 million after the funding cut in March that year.
The agency's funding remained relatively flat in 2014 at $15.7 million and rose slightly this year to $16.2 million.
The housing board is to vote on the proposed 2016 budget next month.
Much of the budget increase is because the housing alliance has received an additional 79 vouchers for veterans this year, Executive Director Rodney Forte said at the board meeting Monday. HUD granted the agency $341,000 to aid its efforts to house veterans. The agency now administers 179 veterans housing vouchers in addition to 2,083 housing-choice vouchers for people with low incomes.
It is possible the housing agency, which also manages 902 public-housing units, could have its funding cut again in the spring without much notice, leaving Forte and his staff to determine how to make up any shortfall. But finance director Ron Hooks said at the board meeting that funding is not likely to change in 2016.
In 2013, Forte and the housing board chose to lay off four maintenance workers and two assistant housing managers, as well as put employees on furlough and close the office every other Friday, to make do with less funding after the federal cut.
The agency's workers e̶v̶e̶n̶t̶u̶a̶l̶l̶y̶ ̶r̶e̶t̶u̶r̶n̶e̶d̶ ̶t̶o̶ ̶a̶ ̶4̶0̶-̶h̶o̶u̶r̶ ̶w̶o̶r̶k̶w̶e̶e̶k̶ work 36 hours per week*, but the week is now four days, with the agency closed Fridays.
The budget document doesn't say whether employees are still on furlough, which is about a 10 percent reduction in pay, or whether raises are included in the 2016 budget. Forte didn't respond to phone and email requests for comment.
Housing board chairman Ted Dickey also did not return emails or a voice message.
With the increased funds expected for 2016, Forte has already hired more executive staff members. For the first time in almost a decade, a deputy executive director was hired in 2014 with a $92,000 salary. Dana Arnette took that position with a furloughed salary of $82,800.
Recently, Forte hired Kenneth Clark as the deputy executive director in charge of real estate, a new position. The budget does not say what Clark's salary is.
The agency recently has been more entrepreneurial by looking into partnerships with private real estate companies to develop low-income housing units. One such agreement has been approved, and a second is being studied. The housing authority gets a portion of the yearly profits of such developments, but isn't responsible for day-to-day management under the partnerships.
The number of employees on the maintenance staff that serves public-housing tenants has dwindled since last year. Nine mechanics, foremen and laborers were on the staff as of July -- a decrease from 11 the previous year.
To allow the workers as much time as possible to answer requests from tenants, the housing board has approved contracting with companies to be "on call" to help prepare apartments for new tenants.
In the event federal funding decreases, maintenance is one area the agency continues to target.
"MHA's strategy to manage decreased federal funding continues to be: limit hiring, strategically reduce non-routine maintenance, apply for alternate funding sources ... and employ creative, mixed-finance capital developments to maintain and expand its affordable housing portfolio," the budget proposal says.
The housing board is expected to vote on the proposed budget Dec. 17 at its 11:30 a.m. meeting at the agency's headquarters at 100 S. Arch St. in Little Rock.
Metro on 11/15/2015
*CORRECTION: Metropolitan Housing Alliance employees work 36 hours per week. This article on the agency’s budget incorrectly reported the amount of hours.