Pinal County Housing Authority 2020-2025 Five Year and ... · 5-Year PHA Plan U.S. Department of...

VERSION 1

Pinal County Housing Authority 2020-2025 Five Year and Annual Public

Housing Agency Plan

PINAL COUNTY HOUSING AUTHORITY Table of Contents

Five Year and Annual Public Housing Agency Plan

I. HUD 50075-5Y

II. Section B of HUD 50075 – 5Y

1. B.1 Mission Statement

2. Goals and Objectives

3. Progress Report

4. Violence Against Women Act (VAWA)

III. HUD 50075-SM

IV. Section B.1 of HUD 50075-SM Revision of PHA Plan Elements

1. Deconcentration Policy

2. Rent Determination Policy

3. Substantial Deviation

4. Significant Amendment/Modification

V. Section B.2 of HUD 50075-SM New Activities

1. Conversion of Public Housing to Tenant-Based Assistance

2. Family Self-Sufficiency (FSS)

3. Move to Work (MTW)

4. Project Based Rental Assistance

5. Rental Assistance Demonstration (RAD)

6. Veterans Affairs Supportive Housing (VASH)

7. Demolition and Disposition

8. Units With Approved Vacancies for Modernization

VI. Section D.2 HUD 50075-SM

1. Resident Advisory Board (RAB) Comments

VII. Section E. HUD 50075-SM

1. Statement of Capital Improvement

2. HUD 50075.1 Annual Statement /Performance and Evaluation Report

3. HUD 50075.2 CFP Five Year Action Plan

4. Fiscal Year 2020-2021 Financial Resources

5. 5 Year 2020-2025 Financial Resources

6. Fiscal Year Audit

VIII. Required Submissions for HUD Field Office (Certifications attached)

1. 50075-SM Civil Rights Certification

2. 50075-SM Certification by State of Local Officials

3. HUD 50077-CRT-SM Certification of Compliance with PHA Plans and

Related Regulation

4. HUD 50071 Certification of Payment to Influence Federal Transaction

5. HUD 50070Certification for a Drug-Free Workplace

5-Year PHA PlanU.S. Department of Housing and Urban Development 0MB No. 2577-0226 Office of Public and Indian Housing Expires: 02/29/2016

(for All PHAs) . .

Purpose. rhe 5-Ycar and Annual PHA Plans provide a ready source for interested parties to locate baste PHA polic1cs, rule . and requirements concerning the PHA's operations, programs, and services, and informs HUD, families served by the PHA, and members of the public of the PHA's mission, goals and objectives for serving the needs oflow- income, very low- income, and extremely low- income families

Applicability. Form HUD-50075-SY is to be completed once every 5 PHA fiscal years by all PHAs.

A.

A.I

PBA Information.

PHA Name: PINAL COUNTY HOUSING AUTHORITY PHA Code: AZ0 10

PHA Plan for Fiscal Year Beginning: (MM/YYYY): 07/2020 PHA Plan Submission Type: li2I ·-Year Plan ubmission D Revised 5-Year Plan Submission

Availability of Information. In addition to the items listed in this fonn, PHAs must have the elements listed below readily available to the public. A PHA must identify the specific location(s) where the proposed PHA Plan, PHA Plan Elements, and all infonnation relevant to the public hearing and proposed PHA Plan are available for inspection by the public. Additionally, the PHA must provide infonnation on how the public may reasonably obtain additional infonnation on the PHA policies contained in the standard Annual Plan, but excluded from their streamlined submissions. At a minimum, PHAs must post PHA Plans, including updates, at each Asset Management Project (AMP) and main office or central office of the PHA. PHAs are strongly encouraged to post complete PHA Plans on their official websites. PHAs are also encouraged to provide each resident council a copy of their PHA Plans.

0 PHA Consortia: (Check box ifsubmitling a Joint PHA Plan and complete table below)

Participating PHAs

Lead PHA:

PHA Code

Program(s) in the Consortia

Program(s) not in the Consortia

Page 1 of 3

No. of Units in Each Program

PH HCV

form HUD-50075-SY (12/2014)

B.

8.1

8.2

5-Yeur �la:n. RequiJ:cd for allPHAs completing thls :tbill1.

Mission. State the PHA's mission for serving the needs oflow- income, very low- income, and extremely low- income families in the PHA's jurisdiction for the next five years.

See Attachment 8.1

Goals and Objectives. Identify the PHA's quantifiable goals and objectives that will enable the PHA to serve the needs of low- income, very lowincome, and extremely low- income families for the next five years.

See Attachment 8.2

8•3 Progress Report. Include a report on the progress the PHA has made in meeting the goals and objectives described in the previous 5-Year Plan.

8.4

8.5

8.6

B.7

See Attachment 8.3

Violence Against Women Act (VAWA) Goals. Provide a statement of the PHA's goals, activities objectives, policies, or programs that will enable the PHA to serve the needs of child and adult victims of domestic violence, dating violence, sexual assault, or stalking.

See Attachment 8.4

Significant Amendment or Modification. Provide a statement on the criteria used for determining a significant amendment or modification to the 5-YearPlan.

See Attachment 8.5

Resident Advisory Board (RAB) Comments.

(a) Did the RAB(s) provide comments to the 5-Year PHA Plan?y N� �

(b) If yes, comments must be submitted by the PHA as an attachment to the 5-Year PHA Plan. PHAs must also include a narrative describing theiranalysis of the RAB recommendations and the decisions made on these recommendations.

See Comments Attached

Certification by State or Local Officials.

Forni HUD 50077-Sl, Certification by State or local Officials of PHA Plans Consistency with the Consolidated Plan; must be submitted by the PHA as an electronic attachment to the PHA Plan.

Page 2 of 3 form HUD-50075-SY (12/2014)

PINAL COUNTY HOUSING AUTHORITY PHA PLAN

Attachment B. 1

MISSION

Provide safe, decent, and affordable housing options to

qualified low-income families in Pinal County; while

encouraging economic self-sufficiency through

education, training, and employment opportuni�ies.


Attachment B. 2

GOALS AND OBJECTIVES

A. Preserve, Expand, and Promote Availability

of Safe, Decent, and Affordable Housing:

1. Apply for additional voucher opportunities

that would add value to the PCHA's housing

programs.

2. Maintain an occupancy level of at least 98%

in the Public Housing Program.

3. Leverage private funds through developers

to develop new affordable housing units.

4. Identify opportunities to use voucher in

developments for the creation of additional

affordable housing units.

B. Improve the quality of assisted housing

units:

1. Achieve a designation status of High

Performer by;

a. Timely response to work order request,

completion of work orders, and

comprehensive oversight of fixed asset

inventories.

b. Ensure operational funds are available

to maintain properties at a high level of

quality.

2. Modernize or renovate existing public

housing units. Over the next five years the

PCHD will;

a. Maximize the utilization of Capital

Funds for capital improvements.

b. Remodel kitchens, bathrooms, and

flooring upon unit turnovers.

c. Implement a Preventive Maintenance

program.

d. Continue to address curb appeal and

site improvement needs.

3. Demolish or dispose of obsolete housing

with a focus on redevelopment or

replacement housing.

4. Maintain the High Performer designation

for the Housing Choice Voucher Program.

a. Follow Housing Quality Standard

inspection protocols.

b. Monitor and track SEMAP indicators.

c. Conduct routine quality control

inspections and tenant file audits.

C. Promote efforts towards self-sufficiency:

1. Promote the participation on an economic

self-sufficiency program through the Family

II

Self-Sufficiency {FSS or Resident

Opportunity Self-Sufficiency {ROSS)

program that promotes education, training,

and employment.

2. Develop relationship/partnerships with

local service providers to provide

supportive services to program participants,

including elderly or families with disabilities.

D. Improve organizational management

1. Attract and retain a competent,

committed, and professional workforce that

align with the mission of the county and the

housing department.

2. Ensure employees receive adequate

training and designations appropriate to

their job function and professional growth.

3. Conduct annual performance evaluations

to identify organizational strengths and

weaknesses.


Attachment B. 3

PROGRESS REPORT

Pinal County Housing Authority (PCHA) provides and maintains temporary safe,

decent, and sanitary standardized housing for qualified low-income people; to

assist individuals in becoming independent by giving opportunities for education,

training, counseling and support; and to help residents remain independent and

maintain their personal dignity for as long as possible.

On February 8, 2018 the U.S. Department of Housing and Urban Development's

(Department) Special Applications Center (SAC) approved Pinal County Housing

Authority's application for the disposition of 6.18 acres of land improved and 15

dwelling buildings containing 30 dwelling units at Pinal, AZ0l000000l, (known as

Stanfield).

The Stanfield development was sold via public auction for the amount of

$315,000, which will be which will go back into the public housing funds which

can be used for improvements to the other public housing units or toward the

development or purchase of additional affordable housing units.

PCHA has maintained a High Performance designation for the second year in a

row on the 2019 Section Eight Management Assessment Program (SEMAP). PCHD

will continue to monitor and track SEMAP indicators in order to maintain its High

Performance designation.

PCHA has also obtained a designation status of Standard Performer on the Public

Housing Assessment System (PHAS) for the fiscal year ending 6/30/2019. PCHA

has shown major improvements over the past two years with the improvement in

the physical condition of the PCHA's public housing units. PCHA will continue to

track and monitor the PHAS indicators in order to achieve High Performing

designation with the Public Housing Program.

PHAS FISCAL YEAR SCORE DESIGNATION STATUS

2015 66 Capital Fund Troubled

2016 59 Troubled

2017 64 Substandard

Management

2018 74 Small PHA

Deregulation

2019 89 Standard Performer

The Resident Opportunity Self-Sufficiency program (ROSS) has 52 active public

housing residents enrolled in the program. The ROSS program assisted five

participants to achieve their GED, and three participants to enroll in higher

education, and two participants enroll in adult literacy and learned to read. ROSS

had two participants to complete the home buyer's workshop and purchased

their ist homes. The ROSS program received donations for Thanksgiving and

delivered 86 meals to public housing residents, and 32 Christmas trees to ROSS

participants. The ROSS program partnered with Turning Point Beauty School who

provided 15 free haircuts to public housing residents.

Pinal County Housing Authority entered into an intergovernmental agreement

with Tucson Housing Authority, which extended 10 portable HUD Veterans Affairs

Supportive Housing (VASH) vouchers to Pinal County Housing Authority to

administer through portability. Pinal has successfully leased all 10 of the VASH

vouchers. February 1, 2020 Pinal was awarded 15 VASH vouchers of our own in

addition to the 10 portable vouchers from Tucson.


Attachment B.4

VIOLENCE AGAINST WOMEN

ACT (VAWA)

21.3. Domestic Violence, Dating Violence, Sexual Assault, or Stalking (Violence

Against Women Act (VAWA)) 24 CFR subpart 5

A. Under the Violence Against Women Act (VAWA), notwithstanding the title

of the statute, protections are not limited to women, but cover victims

regardless of sex, gender identity, or sexual orientation). Public Housing

participants have the following specific protections, which will be observed

by Pinal County Housing Authority.

B. An applicant for assistance or an assisted tenant may not be denied

admission to, or denied assistance under, terminated from participation in,

or evicted from the housing on the basis or as a direct result of the fact that

the applicant or tenant is or has been a victim of domestic violence, dating

violence, sexual assault, or stalking, hereafter VAWA crimes, if the applicant

or tenant otherwise qualifies for admission, assistance, participation, or

occupancy. (FR-5720-F-03 p. 80800)

C. A tenant may not be denied tenancy or occupancy rights solely on the basis

of criminal activity directly relating to the domestic violence, dating

violence, sexual assault, or stalking if the criminal activity is engaged in by a

member of the household of the tenant or any guest or person under the

control of the tenant, and the tenant or an affiliated individual of the

tenant is the victim or threatened victim of a VAWA crime.

D. Once PCHA is presented with a claim for continued or initial tenancy or

assistance based on status as a victim of domestic violence, dating violence,

sexual assault, stalking, or criminal activity related to domestic violence,

dating violence, sexual assault, or stalking, PCHA will request, that the

individual making the claim document the abuse. PCHA's request for

documentation will be in writing.

E. PCHA will accept the following documentation as validation of a claim of

domestic violence, dating violence, sexual assault, or stalking. This

documentation must be submitted within 14 business days after receipt of

PCHA's written request for verification. PCHA will consider an extension of

time for reasonable cause.

1. A Federal, State, tribal, territorial, or local law enforcement or court

record; or;

2. Documentation signed by an employee, agent, or volunteer of a

victim service provider, an attorney, or medical professional, from

whom the victim has sought assistance in addressing domestic

violence, dating violence, sexual assault, or stalking, or the effects of

abuse, in which the professional attests under penalty of perjury

under 28 U.S.C. 1746 to the professional's belief that the incident or

incidents of abuse, and the victim has signed or attested to the

documentation. or

3. HU D's Certification of Domestic Violence, Dating Violence Sexual

Assault, or Stalking and Alternate Documentation form.

4. In the event PCHA receives conflicting evidence, tenants and

applicants will be required to submit third-party documentation to

document the occurrence of a VAWA crime. This documentation

must be submitted in the PCHA office within 30 calendar days

(§S.2007(b)(2).

Failure to timely provide the required documentation may remove the

protections given under VAWA. PCHA may honor court orders regarding the

rights of access or control of the property, including order of protection,

domestic violence order, and other orders issued to protect the victim and to

address the distribution or possession or property among household members

where the family "breaks up."

F. PCHA may bifurcate the lease and terminate the assistance or evict a

tenant who engages in criminal acts or threatened acts of violence or

stalking to family members or others without terminating the assistance or

evicting victimized tenants. PCHA will trespass the perpetrator from the

Public Housing rental communities. The VAWA victim must be the one who

retains the assistance.

G. Once the lease is bifurcated and the perpetrator's assistance is terminated,

and if the removed tenant is the only one family member whose

characteristics qualified the rest of the family to live in the unit or receive

assistance, the remaining tenants have 90-days to establish eligibility

and/or find new housing. However, the 90-day period will not apply if the

lease expires prior to the termination of the 90-day period, and as a result

of the lease expiration, assistance is terminated.

H. If in the case where the perpetrator is the only legal citizen in the

household and is removed due to domestic violence, PCHA must terminate

assistance to the remaining non-citizen family. The remaining non-citizen

family will be terminated 30 days after the lease bifurcation, or when the

lease expires, whichever is sooner (FR-5720- F-03, p. 80775)

I. PCHA will review and take into consideration all circumstances to remove a

person from the household. If warranted, PCHA will issue a 24-hour notice

of removal/trespassing, if allowed by court action or upon law enforcement

advice/guidance.

J. Consideration will be given if the perpetrat�r attends counseling orrehabilitation services and provides proof of attendance. Review will be ona case-by-case basis to determine if counseling or rehabilitation is sufficientreason to continue to assist the person. Any repeated act of actual orthreatened domestic violence, dating violence, sexual assault, or stalkingafter consideration of counseling or rehabilitation will be cause forimmediate termination of the perpetrator with no further consideration.

K. If after submitting a claim for protection under VAWA, the victim allows theperpetrator to move back into the household/unit and PCHA has notagreed to reinstate the person for assistance, assistance may be terminatedfor the family.

L. If the victim of the VAWA crime allows the perpetrator onto the property,and if the presence of the perpetrator on the property will endangerothers, or if PCHA can demonstrate an actual and imminent threat to othertenants, or those employed at or providing services to the property, PCHAwill evict or terminate assistance of a victim of a VAWA crime {80731).

M. There is no limitation on the ability of PCHA to terminate assistance forother good cause unrelated to the incident or incidents of domesticviolence, dating violence, sexual assault, or stalking, other than the victimmay not be subject to a "more demanding standard" than other tenants inmaking the determination whether to evict, or to terminate assistance oroccupancy rights.

N. There is no prohibition on PCHA terminating assistance if it "candemonstrate an actual and imminent threat to other tenants or thoseemployed at or providing services to the property if that tenant's (victim's)assistance is not terminated (FR-5720-F-03, p. 80731).

0. If an incident of domestic violence, dating violence, sexual assault, orstalking results in damage to the unit, PCHA will not charge the tenant withcost to repair/replace if the tenant takes the steps necessary to protect

against the perpetrator (police, court, counseling, etc.). If the victim takes

the necessary steps and PCHA waives any maintenance charges associated

with damage due to domestic violence, dating violence, sexual assault, or

stalking and the victim allows the perpetrator back into the unit, the PCHA

will charge the tenant with the full cost of the repair/replacement.

P. VAWA provides an exception to the prohibition against tenants moving in

violation of the lease in the Public Housing program. If a safe unit is

immediately available, PCHA will consider allowing a tenant to transfer to

another PCHA Public Housing unit if the tenants have established they are

victims of domestic violence, dating violence, sexual assault or stalking, and

provides a written request before a transfer occurs certifying that the

criteria for an emergency transfer are met. (FR Vol 81, No. 221, November

16, 2016, pg. 80727, 80741).

Q. PCHA has a waiting list preference in place for victims of VAWA crimes,

however, PCHA must be open for applications in order to get on the waiting

list.

R. Any protections provided by law which give greater protection to the victim

are not superseded by these provisions.

S. PCHA shall require verification or certification in all cases where a tenant

claims VAWA protections. Tenant verification /certification must be

submitted within 14 business days after receipt of the Housing Authority's

written request for verification, unless provided an extension at the

discretion of the PCHA.

T. All information provided under VAWA including the fact that an individual is

a victim of domestic violence, dating violence, sexual assault, or stalking,

shall be retained in confidence and shall not be entered into any shared

database or provided to any related entity except to the extent that the

disclosure is:

1. Requested or consented to by the individual in writing;

2. Required for used in an eviction proceeding; or

3. Otherwise required by applicable law.

U. PCHA shall provide its tenants notice of their rights under VAWA including

their right to confidentiality and the limits thereof.

V. PCHA shall keep a record of all emergency transfer requests requested

under the E Emergency Transfer Plan and the outcome of these requests

for three years.

21.4. IMMIGRATION STATUS/ SELF-PETITIONER

A. In accordance with Section 214 of the Housing and Community

Development Act of 1980, HUD may not allow financial assistance to

ineligible non-citizens, but assistance must not be denied while verifying

immigration status or appeal of a determination as satisfactory immigration

status is pending.

8. A "Self-Petitioner" is a category of battered noncitizens seeking legal

permanent resident status without the cooperation or knowledge of their

abusive relative. A "VAWA Self-Petitioner" is a category of battered

noncitizens seeking VAWA-related relief and other VAWA related petitions

or applications for lawful permanent resident status.

C. Self-petitioners can indicate that they are in "satisfactory immigration

status" when applying for assistance or continued assistance from Section

214 covered housing providers.

D. PCHA will not deny, reduce, or terminate the assistance of a VAWA

Self-Petitioner who claims "satisfactory immigration status". PCHA will

verify that the applicant or participant is a self-petitioner by utilizing the

SAVE system to verify immigration status.

E. All protections afforded under VAWA apply to the self-petitioner

throughout the verification process.

21.5. VAWA Confidentiality

All information provided under VAWA including the fact that an individual is

a victim of domestic violence, dating violence, sexual assault, or stalking,

shall be retained in confidence and shall not be entered into any shared

database or provided to any related entity except to the extent that the

disclosure is:

A. Requested or consented to by the individual in writing;

B. Required for used in an eviction proceeding; or

C. Otherwise required by applicable law.

APRIL 1, 2020

PINAL COUNTY Wll>L 01'1-:N O!'l'OHl'l NITY

PINAL COUNTY HOUSING AUTHORITY

ANNUAL AGENCY PLAN

2020-2021

Adeline Allen, Director

Streamlined Annual U.S. Department of Housing and Urban Development 0MB No. 2577-0226

Office of Public and Indian Housing Expires: 02/29/2016

PHA Plan

(Small PHAs)

Purpose. The 5-Year and Annual PHA Plans provide a ready source for interested parties to locate basic PHA policies, rules, and requirements concerning the PHA's operations, programs, and services, and informs HUD, families served by the PHA, and members of the public of the PHA's mission, goals and objectives for serving the needs oflow- income, very low- income, and extremely low- income families

Applicability. Form HUD-50075-SM is to be completed annually by Small PHAs. PHAs that meet the definition of a Standard PHA, Troubled PHA, High Perfonner PHA, HCV-Only PHA, or Qualified PHA do not need to submit this form.

Definitions.

( 1) High-Performer PHA - A PHA that owns or manages more than 550 combined public housing units and housing choice vouchers, and was designated asa high performer on both of the most recent Public Housing Assessment System (PHAS) and Section Eight Management Assessment Program (SEMAP)assessments.

(2) Small PHA - A PHA that is not designated as PHAS or SEMAP troubled, or at risk of being designated as troubled, and that owns or manages less than250 public housing units and any number of vouchers where the total combined units exceeds 550.

(3) Ho11si11g Cltoice Voucher (HCV) 011ly PHA - A PHA that administers more than 550 HCVs, was not designated as troubled in its most recent SEMAPassessment, and does not own or manage public housing.

( 4) Sta11dard PHA - A PHA that owns or manages 250 or more public housing units and any number of vouchers where the total combined units exceeds 5 50, and that was designated as a standard performer in the most recent PHAS or SE MAP assessments.

(5) Troubled PHA - A PHA that achieves an overall PHAS or SEMAP score of less than 60 percent.(6) Qualified PHA - A PHA with 550 or fewer public housing dwelling units and/or housing choice vouchers combined, and is not PHAS or SEMAP

troubled.

A. PHA Information.

A.I PHA Name: PINAL COUNTY HOUSINQ AUTHORITY PHA Code: AZOIO PHA Type: 1:8:1 Small D High Performer PHA Plan for Fiscal Year Beginning: (MM/YYYY): 07/2020 PHA Inventory (Based on Annual Contributions Contract (ACC) units at time ofFY beginning, above) Number of Public Housing (PH) Units 1.§9__ Number of Housing Choice Vouchers (HCVs) 584 Total Combined 753 PHA Plan Submission Type: [8:1 Annual Submission □Revised Annual Submission

Availability of Information. In addition to the items listed in this form, PHAs must have the elements listed below readily available to the public. A PHA must identify the specific location(s) where the proposed PHA Plan, PHA Plan Elements, and all inforniation relevant to the public hearing and proposed PHA Plan are available for inspection by the public. Additionally, the PHA must provide information on how the public may reasonably obtain additional infomiation of the PHA policies contained in the standard Annual Plan, but excluded from their streamlined submissions. At a minimum, PHAs must post PHA Plans, including updates, at each Asset Management Project (AMP) and main office or central office of the PHA PH As are strongly encouraged to post complete PHA Plans on their official website. PH As are also encouraged to provide each resident council a copy of their PHA Plans.

Pinal County Housing Authority 970 N. Eleven Mile Comer Road, Casa Grande, Arizona 85194

htto://ninalcountvaz.Qov/deoartments/housin2:/oa!!es/Home.asox

D PHA Consortia: (Check box ifsubmittin a Joint PHA Plan and complete table below)

Participating PHAs PHA Code Program(s) in the Consortia Program(s) not in the No. of Units in Each Program

Consortia PH HCV

Lead PHA:

Page I of6 form HUD-50075-SM (12/2014)

B. Annual Plan Elements ubmitted with 5-Year PHA Pl�s. R:equired e-lements fer all PHAs cQm�leting thisdacument in y.eara in whieb the 5-Year Pt� is also due. This �ection does not need m be completed fqr years wh-en aPFIA is not submitting its 5-Year Plan. ee Se�on C f0r tequi.red. elements in all other ){ears ('tears 1-4).

B.1 Revision of PUA Plan Elements.

(a) Have the following PHA Plan elements been revised by the PHA since its last Five-Year PUA Plan submission?

y N D [8] Statement of Housing Needs and Strategy for Addressing Housing Needs. [8] D Deconcentration and Other Policies that Govern Eligibility, Selection, and Admissions. D [8] Financial Resources. [8] D Rent Determination. D [8] Homeownership Programs. [8] D Substantial Deviation. [8] D Significant Amendment/Modification

(b) The PHA must submit its Deconcentration Policy for Field Office Review.

( c) If the PHA answered yes for any element, describe the revisions for each element below:

B.2 New Activities.

(a) Does the PHA intend to undertake any new activities related to the following in the PHA's current Fiscal Year?

y N D [8] Hope VI or Choice Neighborhoods. D [8] Mixed Finance Modernization or Development. [8] D Demolition and/or Disposition. [8] D Conversion of Public Housing to Tenant Based Assistance. [8] D Conversion of Public Housing to Project-Based Assistance under RAD. [8] D Project Based Vouchers. [8] D Units with Approved Vacancies for Modernization. D [8] Other Capital Grant Programs (i.e., Capital Fund Community Facilities Grants or Emergency Safety and Security Grants).

(b) If any of these activities are planned for the current Fiscal Year, describe the activities. For new demolition activities, describe any publichousing development or portion thereof, owned by the PHA for which the PHA has applied or will apply for demolition and/or disposition approvalunder section 18 of the 1937 Act under the separate demolition/disposition approval process. !fusing Project-Based Vouchers (PBVs), provide theprojected number of project based units and general locations, and describe how project basing would be consistent with the PHA Plan.

B.3 Progress Report.

Provide a description of the PHA's progress in meeting its Mission and Goals described in the PHA 5-Year Plan.

B.3 Progress Attached.

Page 2 of6 form UUD-50075-SM (12/2014)

c.

C.l.

C.2

D

:Aflnual Plan Elements ubmitted All Other ¥Hrs (Years 1-4). Requir�d elements· for all ether fiscal years. This seetion does not ne�d ro be eompleted in yea(S when a PHA is submitting its 5� Year PHA. Plan.

New Activities

(a) Does the PHA intend to undertake any new activities related to the following in the PHA's current Fiscal Year?

y N

D D Hope V[ or Choice Neighborhoods. D O Mixed Finance Modernization or Development. 0 D Demolition and/or Disposition. D D Conversion of Public Housing to Tenant-Based Assistance. D O Project Based Vouchers. 0 D Other Capital Grant Programs (i.e., Capital Fund Community Facilities Grants or Emergency Safety and Security Grants).

(b) If any of these activities are planned for the current Fiscal Year, describe the activities. For new demolition activities, describe any publichousing development or portion thereof, owned by the PHA for which the PHA has applied or will apply for demolition and/or disposition approvalunder section 18 of the 1937 Act under the separate demolition/disposition approval process.

(c) [f using Project-Based Vouchers, provide the projected number of project-based units, general locations, and describe how project-basing wouldbe consistent with the PHA Plan.

(d) The PHA must submit its Deconcentration Policy for Field Office Review.

Certification Listing Policies and Programs that the PHA has Revised since Submission of its Last Annual Plan

r-om1 50077-SM, Certification of Compliance with PHA Plans and Related Regulations, including Hem 5 must be submitted by the PHA as anelectronic attachment to the PHA Plan. Item 5 requires certification on whether plan elements have been revised, provided to the RAB for commentbefore implementation, approved by the PHA board, and made available for review and inspection by the public.

Otlaer- Certi&atiea Reftalreaents for &

·Pisa- . . .

D.l Civil Rights Certification.

form 50077-SM-HP, Certification of Compliance with PHA Plans and Related Regulations, must be submitted by the PHA as an electronic attachment to the PHA Plan. D. l Civil Rights Certification Attached

D.2 Resident Advisory Board (RAB) Comments.

D.3

E

(a) Did the RAB(s) provide comments to the PHA Plan?

y N

□□

If yes, comments must be submitted by the PHA as an attachment to the PHA Plan. PHAs must also include a narrative describing their analysis of the RAB recommendations and the decisions made on these recommendations.

Certification by State or Local Officials.

f'onn I IUD 50077-SL, Certification by State or Local Officials of PHA Plans Consistency with the Consolidated Plan, must be submitted by the PHA as an electronic attachment to the PHA Plan. D.3 Certification by State or Local official Attached.

Statement of Capital Improvements. Required io all year,s for all PH.A completiog this form that administer public housing and reoei:ve funding .from the Capital Fund Pregram (OFP). E. Statement of Capital Improvement Attached. E. Statement of Financial Resources Attached.

Page 3 of6 form HUD-50075-SM (12/2014)


Attachment B. 1

DECONCENTRATION POLICY

Deconcentration Policy ACOP, Section 10.5

The PCHA will affirmatively market our housing to all eligible income groups.

Lower income residents will not be steered toward lower income developments

and higher income people will not be steered toward higher income

developments.

Prior to the beginning of each fiscal year, we will analyze the income levels of

families residing in each of our developments and the income levels of the

families on the waiting list. Based on this analysis, we will determine the level of

marketing strategies and deconcentration incentives to implement.

' The PCHA is not subject to the deconcentration requirements according to 24

CFR 903. Nevertheless, the PCHA will affirmatively market its housing to all

eligible income groups.


Attachment B. 1

RENT DETERMINATION

Determination of Total Tenant Payment and Tenant Rent ACOP, Section 13.0

13.0 DETERMINATION OF TOTAL TENANT PAYMENT AND TENANT RENT

13.1. Family Choice of Rent (§960.253)

At admission and each year in preparation for their annual reexamination, each

family is given the choice of having their rent determined under the income

method or having their rent set at the flat rent amount.

A. Families who opt for the flat rent will be required to go through the income

reexamination process every three years, rather than the annual review

they would otherwise undergo.

B. Any changes to the Flat Rent amounts due to HUD-published Fair Market

Rents (FMR) will be effective on the annual anniversary date for each

affected family.

C. Families who opt for the flat rent will be required to undergo an annual

review of family composition.

D. Families who opt for the flat rent may request to have a reexamination and

switch to the income-based method at any time for any of the following

reasons, however they can only switch to the flat rent at their annual

recertification:

1. The family's income has decreased.11.3. Maximum Subsidy

2. The family's circumstances have changed increasing their expenses

for childcare, medical care, etc.

3. Other circumstances creating a hardship on the family such that the

formula method would be more financially feasible for the family.

Upon submission of family's request for switch, PCHA will review the family

situation and determine whether or not a financial hardship exists. If it is

determined that a financial hardship exists, PCHA will immediately allow the

switch to income-based rent.

E. Families have only one choice per year except for financial hardship cases.

In order for families to make informed choices about their rent options,

PCHA will provide them with the following information whenever they have

to make rent decisions:

1. PCHA's policies on switching types of rent in case of a financial hardship;

and

2. The dollar amount of tenant rent for the family under each option. If the

family chose a flat rent for the previous year, PCHA will provide the

amount of income-based rent for the subsequent year only the year

PCHA conducts an income reexamination or if the family specifically

requests it and submits updated income information.

3. There is no utility allowance for families who choose the flat rent.

13.2. The Income Method

The total tenant payment is equal to the highest of:

A. 10% of the family's monthly income; or

B. 30% of the family's adjusted monthly income; or

C. If the family is receiving payments for welfare assistance from a public

agency and a part of those payments, adjusted in accordance with the

family's actual housing costs, is specifically designated by such agency to

meet the family's housing costs, the portion of those payments which is so

designated. If the family's welfare assistance is ratably reduced from the

standard of need by applying a percentage, the amount calculated under

this provision is the amount resulting from one application of the

percentage; or

D. The minimum rent amount.

*** When calculating income for a wage earner who works less than 12 months

per year (example is a school employment where the person is off during the

summer), calculate the TIP both ways, then give the head of household the

choice. The head of household MUST initial agreeing to the rent calculation

method chosen.

13.3. Minimum Rent and Hardship Exemption (24CFR §5.630)

HUD allows the minimum rent to be set between $0 and $50.00. PCHA minimum

rent is $50.00.

If the family requests a hardship exemption, however, PCHA will suspend the

minimum rent beginning the month following the family's request until PCHA can

determine whether the hardship exists and whether the hardship is of a

temporary or long-term nature.

A. A hardship exists in the following circumstances:

1. When the family has lost eligibility for, or is waiting an eligibility

determination for a Federal, State, or local assistance program, including

a family that includes a member who is a non-citizen lawfully admitted

for permanent residence under the Immigration and Nationality Act who

would be entitled to public benefits but for title IV of the Personal

Responsibility and Work Opportunity Act of 1996;

2. When the family would be evicted because it is unable to pay the

minimum rent;

3. When the income of the family has decreased because of changed

circumstances, including loss of employment; and

4. When a death has occurred in the family.

8. No hardship. If PCHA determines there is no qualifying hardship, the

minimum rent will be reinstated, including requiring back payment of

minimum rent for the time of suspension.

C. Temporary hardship. If PCHA reasonably determines that there is a

qualifying hardship but that it is of a temporary nature, the tenant portion

of the rent will not be imposed for a period of 90 calendar days from the

beginning of the suspension of the minimum rent. At the end of the 90-day

period, the tenant portion of the rent will be imposed retroactively to the

time of suspension. PCHA will offer a repayment agreement in accordance

with Section 19 of this policy for any rent not paid during the period of

suspension. During the suspension period, PCHA will not evict the family for

nonpayment of the amount of tenant rent owed for the suspension period.

D. Long-term hardship. If PCHA determines there is a long-term hardship, the

family will be exempt from the tenant portion of the rent requirement until

the hardship no longer exists.

E. Appeals. The family may use the grievance procedure to appeal PCHA's

determination regarding the hardship. No escrow deposit will be required

in order to access the grievance procedure.

13.4. The Flat Rent (ACOP Section 15.3, §960.253)

PCHA has set a flat rent for each Public Housing unit. The flat rent is determined

annually, based on the market rental value of the unit using one of the following

three options:

A. Option One: PCHA will establish a flat rent for each Public Housing unit that

is no less than 80 percent of the applicable Fair Market Rent (FMR) as

determined under 24 CFR part 888, subpart A;

8. Option Two: No less than 80 percent of an applicable small area FMR

(SAFMR) or unadjusted rent, if applicable, as determined by HUD, or any

successor determination, that more accurately reflects local market

conditions and is based on an applicable market area that is geographically

smaller than the applicable market area used in the first paragraph of this

section. If HUD has not determined an applicable SAFMR or unadjusted

rent, PCHA will rely on the applicable FMR under the first option or may

apply for an exception flat rent under the third option. No other smaller

geographical FMRs will be allowed by HUD;

C. Option Three: PCHA may request, and HUD may approve, on a case-by-case

basis, a flat rent that is lower than the amounts in Options One or Two of

this section, subject to the following requirements:

1. PCHA must submit a market analysis of the applicable market.

2. PCHA must demonstrate, based on the market analysis, that the

proposed flat rent is a reasonable rent in comparison to rent for other

comparable unassisted units, based on the location, quality, size, unit

type, and age of the Public Housing unit and any amenities, housing

services, maintenance, and utilities to be provided by the PHA in

accordance with the lease.

3. All requests for exception flat rents under this option must be submitted

to HUD.

PCHA will not implement Option Three prior to receiving HU D's written approval.

(A new market analysis and a new HUD written approval is required every year.)

The option chosen to establish the required flat rent will be the sole decision of

PCHA.

PCHA will determine flat rents in accordance with Option One.

Annually, no later than 90 days after issuance of new FM Rs or SAFMRs by HUD,

PCHA will compare the current flat rent amount to the applicable FMR and

SAFMR/unadjusted rent. If the flat rent is at least 80 percent of the lower of the

FMR or SAFMR/unadjusted rent, PCHA is in compliance with the law, and no

further steps are necessary. If the flat rent is less than 80 percent of the lower of

the FMR and SAFMR, PCHA will adjust the flat rents at no less than 80 percent of

the lower of the FMR or SAFMR/unadjusted rent, subject to the utilities

adjustment required for tenant-paid utilities, or PCHA may request an exception

flat rent pursuant to Option Three, as described above. Revised flat rents will

become effective for all families admitted after the flat rent is changed or at the

lease renewal for an existing resident. (See HUD's definition of "unadjusted rent"

as relates to Flat Rent requirements).

D. As for flat rent phase-ins, previous regulations in PIH Notice 2014-12 and

the subsequent FAQ's, HUD provided flexibility to PHAs to phase in all flat

rent increases over a three-year period, including those increases that were

35 percent or less.

However, the FY 2015 Appropriations Act provides PCHA additional flexibility to

establish flat rents at lower amounts, thereby eliminating the need for the three

year phase-in of flat rent increases that are 35 percent or less. Therefore, the only

flat rent increases that will be phased-in are those where a family's rent will

increase by more than 35 percent.

Agencies that began phase-ins for families with rent increases at 35 percent or

less last year shall follow the actions outlined below at the family's next annual

rent option:

1. On a case-by-case basis, at the family's next annual rent option,

compare the updated flat rent amount applicable to the unit to the

rent that was being paid by the family immediately prior to the

annual rent option;

a. If the updated flat rent amount would not increase a family's

rental payment by more than 35 percent, the family may choose

to pay either the updated flat rent amount or the previously

calculated income-based rent;

b. If the agency determines that the updated flat rent amount

would increase a household's rental payment by more than 35

percent, the family may choose to pay the phased-in flat rent

amount resulting from the flat rent impact analysis or the

previously calculated income-based rent.

Affected families will be given a 30-day notice of any rent change. Adjustments

are applied at the end of the annual lease (for more information on flat rents, see

Section 15.3).

Flat rents are incorporated in this policy as set by HUD Final Rules, Notices and

regulatory requirement.

PCHA will post the flat rents at the administrative office.

Flat rent families will receive a utility allowance based on the current utility

schedule. (See Section 15.3)

13.5. Rent for Families under the Non-Citizen Rule §5.500, 5.514, 5.516, 5.518,

5.520, PIH 2016-05

A mixed family will receive full continuation of assistance if all of the following

conditions are met:

A. The family was receiving assistance on June 19, 1995;

B. The family was granted continuation of assistance before November 29,

1996;

C. The family's head, spouse, co-head has eligible immigration status; and

D. The family does not include any person who does not have eligible

status other than the head of household, spouse, co-head of the head of

household, any parent of the head, spouse, co-head, or any child (under

the age of 18) of the head, spouse, co-head.

The family's assistance is prorated in the following manner:

A. Step 1. Determine the total tenant payment in accordance with 24 CFR

§5.628. (Annual income includes income of all family members,

including any family member who has not established eligible

immigration status.)

B. Step 2. Family maximum rent is equal to the applicable flat rent for the

unit size to be occupied by the family.

C. Step 3. Subtract the total tenant payment from the family maximum

rent. The result is the maximum subsidy for which the family could

qualify if all members were eligible ("family maximum subsidy").

D. Step 4. Divide the family maximum subsidy by the number of persons in

the family (all persons) to determine the maximum subsidy per each

family member who has citizenship or eligible immigration status

("eligible family member"). The subsidy per eligible family member is

the "member maximum subsidy."

E. Step 5. Multiply the member maximum subsidy by the number of family

members who have citizenship or eligible immigration status ("eligible

family members"). The product of this calculation is the "eligible

subsidy."

F. Step 6. The mixed family TTP is the maximum rent minus the amount of

the eligible subsidy.

G. Step 7. Subtract any applicable utility allowance from the mixed family

TTP. The result of this calculation is the mixed family tenant rent.

When the mixed family's TTP is greater than the maximum rent, the PCHA will use

the TTP as the mixed family TTP.


Attachment B. 1

SUBSTANTIAL DEVIATION

In accordance with 24 CFR §903.7(r)(2) which requires public housing authorities

to identify the basic criteria the agency will use to determine a substantial

deviation from its 5-Year Plan and significant amendments or modification to the

5-Year Plan and Annual Plan, the following definitions are offered:

Substantial Deviation:

Substantial Deviations is defined as a change that will negatively impact a

majority of Section 8, Public Housing participants, or waiting list applicants,

except when the change is determined to be necessary in order to comply with

regulatory requirements, respond to funding constraints, or respond to a

federally, state or locally declared emergency.

Substantial Deviations is defined as discretionary changes in the plans or policies

of the housing authority that fundamentally change the mission, goals, objectives,

or plans of the agency and which require formal approval of the Board of

Supervisors.


Attachment B. 1

SIGNIFICANT

AMENDMENT /MODIFICATION

In accordance with 24 CFR §903.7(r)(2) which requires public housing authorities

to identify the basic criteria the agency will use to determine a substantial

deviation from its 5-Year Plan and significant amendments or modification to the

5-Year Plan and Annual Plan, the following definitions are offered:

Significant Amendment/Modification:

Significant Amendment/Modification is defined as a change that will negatively

impact a majority of Section 8, Public Housing participants, or waiting list

applicants, except when the change is determined to be necessary in order to

comply with regulatory requirements, respond to funding constraints, or respond

to a federally, state or locally declared emergency.

Significant Amendment/Modification is defined as discretionary changes in the

plans or policies of the housing authority that fundamentally change the mission,

goals, objectives, or plans of the agency and which require formal approval of the

Board of Supervisors.


Attachment B. 2

NEW ACTIVITIES

CONVERSION OF PUBLIC HOUSING TO TENANT-BASED

ASSISTANCE

There is a great need for additional affordable housing units in Pinal County. In

addition to the large population of elderly, disabled, handicapped families in need

of affordable housing, there is also a great need for senior housing.

Pinal County Housing Department (PCHA) plans to explore voluntary conversion

of public housing units to tenant-based vouchers, where it is economically

beneficial and will increase housing opportunities. PCHA may seek additional

funding authority in the voucher program to increase project-based opportunities

for elderly, disabled, and handicapped families. PCHA also explore Low-Income

Housing Tax Credit (LIHTC) and other resources to facilitate a voluntary

conversion


Attachment B. 2

NEW ACTIVITIES

FAMILY SELF-SUFFICIENCY (FSS}

Pinal County Housing Authority (PCHA) plans to apply for any Family Self

Sufficiency programs that may come available during the 2019 fiscal year.

The PCHA last applied for the renewal of the FSS grant and received funding for FY

2014, which was funded from January 1, 2015 through December 31, 2015. The

PCHA has been actively performing FSS duties and managing the mandatory

program slots without funding for the past four years. This program has been

beneficial to current program participants as well as previous program participant

who successfully graduated from the program.


Attachment B. 2

NEW ACTIVITIES

MOVE TO WORK (MTW)

The Move to Work (MTW) is a Department of Housing and Urban Development

(HUD) demonstration program that allows housing authorities to design and test

innovative, locally-designed strategies for providing low-income families with

affordable housing and new paths to economic independence. Congress

established three statutory goals for MTW:

• Reduce cost and achieve greater cost effectiveness in Federal expenditures;

• Give incentives to families with children where the head of household is

working, is seeking work, or is preparing for work by participating in job

training, educational programs, or programs that assist people to obtain

employment and become economically self-sufficient; and

• Increase housing choices for low-income families.

Pinal County Housing Authority (PCHA) plans to submit an application for the

Move To Work (MTW) program as an initiative to encourage self-sufficiency as

well as allow the PCHA to move funds to the areas in need in order to better

operate our programs and better serve the community.

The PCHA understands that there are some families who may be elderly, disabled,

or handicapped who may always need a basic level of housing assistance;

therefore, the needs of those families will be best served by maintaining an

income-based rent structure. However, the PCHA also understands that there are

families that housing assistance should be a temporary bridge to achieving total

self-sufficiency.

The PCHA believes that encouraging work and individual responsibility, we will

see a higher percentage of working families as well as a significant voucher

turnover rate, which will allow the PCHA to continue to issue new vouchers to

many of the neediest families in Pinal County.


Attachment B. 2

NEW ACTIVITIES

PROJECT BASED RENTAL ASSISTANCE

There is a great need for additional affordable housing units in Pinal County. In

addition to the large population of elderly, disabled, handicapped families in need

of affordable housing, there is also a great need for senior housing.

Pinal County Housing Authority (PCHA) plans to explore the creation of additional

housing options through Project Based Vouchers that will provide additional

affordable housing units. The PCHA will explore the utilization of the Rental

Assistance Demonstration (RAD) program as an alternative for converting public

housing to project-based assistance.


Attachment B. 2

NEW A CTI VITI ES

RENTAL ASSISTANCE DEMONSTRATION

(RAD)

The Rental Assistance Demonstration (RAD) is a voluntary program of the

Department of Housing and Urban Development (HUD). RAD seeks to preserve

public housing by providing Public Housing Agencies (PHAs) with access to more

stable funding to make needed improvements to properties.

Pinal County Housing Authority (PCHA) plans to explore the Rental Assistance

Demonstration (RAD) program as an alternative to addressing the capital needs of

public housing units provided by the PCHA.


Attachment B. 2

NEW A CTI VITI ES

VETERANS AFFAIRS SUPPORTIVE HOUSING

(VASH)

Pinal County Housing Authority (PCHA) plans to submit an application for the

Veteran Affairs Supportive Housing (VASH) vouchers program that may come

available during the 2019 fiscal year. There is a great need for affordable housing

options for the veteran population throughout Pinal County.


Attachment B. 2

NEW ACTIVITIES

DEMOLITION AND DISPOSITION

Pinal County Housing Authority will continue to access our current public housing

stock mainly the scattered site single family dwelling units located in Apache

Junction, Casa Grande, and Coolidge to determine if these units are obsolete as to

physical condition and may pose a financial burden to the PHA for modifications.


Attachment B.2.

NEW A CTI VITI ES

UNITS WITH APPROVED VACANCIES FOR

MODERNIZATION

Pinal County Housing Authority is currently undergoing the modernization of one

(1) vacant HUD approved public housing unit. PCHA will submit a request to HUD

to rehab seven (7) additional public housing units annually as they become

vacant, as it strives to maintain decent, quality housing for the families it serves.


Attachment E.

STATEMENT OF CAPITAL

IMPROVEMENTS

CAPITAL FUNDS PROGRAM

The Capital Funds Program (CFP) is a grant funded program by the U.S.

Department of Housing and Urban Development.

ELIGIBLE ACTIVITIES:

The funds may be used for

► Development;

► Financing;

► Modernization of Public Housing Development; and

► Management Improvements

INELIGIBLE ACTIVITIES

The funds may not be used for:

► Luxury improvements;

► Direct social Services;

► Cost funded by other HUD programs;

► Ineligible activities as described by HUD in the Capital Fund Guidebook

version 04/01/2016; and

► Routine Maintenance

MISSION STATEMENT

Provide safe, decent, and affordable housing options to qualified low-income

families in Pinal County; while encouraging economic self-sufficiency through

education, training, and employment opportunities.

The capital needs planning process is performed on an ongoing basis and

includes;

► Inspection reports;

► Resident comments gathered through surveys;

► Resident meetings;

► Maintenance personnel input; and

► Results from HUD monitoring

2020 GOALS

Subject to Board of Supervisors Approval of a new 2020-2025 "Rolling" 5 year

action plan, we are planning on:

► Modernize kitchens and bathrooms in 7 units.

► Upgrade 3 ADA unit to UFAS Standards.

► CAP Related Training for Maintenance and Administrative Staff

► Replace 8 HVAC units.

Capital Fund Program - Five-Year Action Plan

Status: Draft Approval Date: Approved By:

Part I: Summary

PHAName: Pinal County Housing Authority Locality (City/County & State)

IX) Original 5-Year Plan

PHANumber: AZ0l0

A. Development Number and Name Work Statement for Work Statement for

Year! 2019 Year2 2020

PINAL (AZ0l0OOOOOl) $335,000.00 $335,000.00

U.S. Department of Housing and Urban Development Office of Public and Indian Housing

2577-0274 07/31/2017

D Revised 5-Year Plan (Revision No: )

Work Statement for Work Statement for Work Statement for

Year3 2021 Year4 2022 Year5 2023

$335,000.00 $335,000.00 $335,000.00

Form HUD-50075.2(4/2008)


Part Il: Supporting Pages - Physical Needs Work Statements (s)

Work Statement for Year l 2019

Identifier

1D0008

100009

100010

1D0023

lD00:10

Development Number/Name

PINAL (AZOIOOOOOOI)

Administtation(Administr.llion ( 1410)-Salarics)

Opcrations(Opcrations (1406))

City Sewer Connections(Dwelling Unit-Site Work (1480)-Sewcr Lines• Mains)

Upsmde 3 ApA units to UFAS s12ndards(Dwclling Unit-lnterior(l480}-AppUanccs,Dwclling Unit-Interior (14.80)-Bathroom Counters and Sinks.Dwelling Unlt-lntcrior (1480)-BathrOQm Flooring (non cyclical),Dwclling Unit-lntcrior ( 1480)-Elcctrical.Dwclling Unit-Interior ( 1480)-FJooring (non mutioc),Dwc,lling Unit-lntcrior (1480}-Jotcrior Painting (nOII rou1ine),Dwclling Unit-lntcrior(l 480)· l{jtchen Cabincts,Dwclling Unit-Interior ( 1480}-Kitohcn Slnlcs and Faueets,Dwclling Unit-Interior (J480'-Plumbin� Dwcllinn rln1t-In1crinr 11480\-Tubs and SMw-' Staff Training (Management Improvement ( 1408}-SlilffTraining)

Subt0L1l ofEstimarcd Co5t

U.S. Department of Housing and Urban Development

Office of Public and Indian Housing

2577-0274

07/31/2017

General Description of Major Work Categories Quantity Estimated Cost

S335,000.00

Salary for Capital Fund Administrators $33,500.00

For General Operations budget to use as need wri,a;s, $63,961.00

Abandon old septic systems and connect to Apache Jurn:tion city sewer system. $153,000.00

Upgrade 3 units to UF AS Aeccssibility Checklist. Re.model kitchens and S79,539.00 ba.throoms replacing cabinelry, countcrtops and plumbing fixtures, replace VCT flooring throughout unit, move electrical switches and receptacles, replace 3 exterior doors and hardware (front, back, & laundry).

CAP nilatcd training for maintenance supervisor and odministrati.vc staff. $5_,000.00

$335,000.00

Form HUD-50075.2(4/2008)


Part TI: Supporting Pages - Physical Needs Work Statements (s)

Work Statement for Year 2 2020

Identifier Development Number/Name

PINAL (AZ0!OOOOOOI)

IDOOIJ Administration(Administration ( 1410)-Salarics)

JD00l4 Operations(Opcrations (1406))

1D0015 Modernize kitchens and bathrooms in 7 units(Dwclling Unit-Interior (1480)-Bathroom Counters and Sinlc.s,Owelling Unit-Interior (1480)-Balhroom Flooring (non cyclical),Dwclling Unit-Interior (1'480)-Elcctrical,Dwclling Unit-Interior ( 1480)-Ftooring (non routioc),Dwclllng Un.!t-lntcrior ( 1480)-lnturlor Painting (non roatinc),Dwelling Unit-Interior (1480)-l{jtcbcn CabinCIS,DwcUiog Unit-Interior (1480)-Kitchen Sinks and FaocctS,Owclling Unit-Interior ( 1480}-Ptum.bing,Dwe!llng Unit-Interior ( 1480)-Tuhs and Shnwc,s)

!00024 Upgrade I ADA Unit lo UFASstandsrds(Owolliog Unit-Jntcrior (1480)-Applianccs,DwctLing Unit-lntcrior (1480)-Bathroom Count.C<S ond Sinks,Dwdling Unit-Interior (1480)-Ba:hroom Flooring (non cyolical),Dwclling Unit-Interior ( l4l!0)-Elccnical,Owelling Unit-Interior ( 1480)-Flooring (non rou1inc),Dw0Uing Unit-Interior (1480)-lnu:rior Painting (non routinc).Dwclliog Unit-Interior (1480}-Kitchen Cabinets.Dwelling Unit-lntcrior{l480)-Kj1chcn Sinks and Faucc(S.l)welling Unit-Interior 114801-Pfumhin�.Dwcllin� Unit-Interior (1480)-Tubs and Showers)

ID0025 8V AC IDlil rcplacement(Dwelling Unit-fatcrio.r (1480)-0thcr)

Subtotal of.Estimated Cost


Office of Public and Indian Housing 2577-0274

07/31/2017


$335,000.00

Salary compensation for Capital Fund administrators $33,500.00

Operations budget for general operations need as they arises. $77,496.00

Kitchens to include replacement of cabinets, sink, range hood, light fixture and $ I 62,491.00 counter tops. Bathrooms to include replacement of bathtub, sink, exhaust fan, light fixture and medicine cabinet. Remove fiberglass tub surround and replace with tile. Replace YCT flooring throughout the unit.

Upgrade I unit to UF AS Accessibility Checklist. Remodel kitchen and bathroom $26,513.00 replacing cabinetry, countcnops and plumbing fixture, replace YCT flooring throughout uniL move clec11kal switches ,md receptacles, replace 3 exterior doors and hardware (front, back, & laundry).

Replacement of 8 HV AC units as they become irreparable. Locations to be $35,000.00 determined as needed.

$335,000.00

Form HUD-50075.2(4/2008)





PINAL (AZ0lOOO0OOl)

ID0018 Administration(Administra.tion ( I 410)-Salarics)

IDOOl9 Opcrations(Opcrations (1406))

ID0027 Erosion Control in Apache Jmetion(Non-Dwelling Site Work (J 480)-Storrn Drainage)

1D0028 Upgrade 3 ADA units 10 UFAS s1an�Dwc11Tng Unit-Jntorior ( 14ll0)•lntcriar Painting (non rourinc),Dwelling Unit-Interior ( 1480)-Kltchcn Cabinets.Dwelling Unit-Interior ( 1480}-Kitchcn Sin1ts and Fauc.c:ts,Dwclling Unit-Interior (1480}-Plumbing.Dwelling Unil-lntcrior (1480}-Tubs �nd Showcrs,Dwclling Unit-Interior ( I 480)•Appliaaccs,Dwclling Unit-Interior (14<!0)-Balhroom Counters and Sinks,Owclling Unit-Interior ( 1480),Bathroom Flooring (non cyclicat),Dwclllng Unit-Interior fl480l-Ekc.trical Dwcllino I lnit-lntcrim-114ll0l-l'loorinv /non routine"

100029 Modcmiz.c kitchens and bathrooms in 2 units(Dwclling Unit-Interior (1480)·B•throom Counters and Sinks.D=lling Unit-Interior ()480)-Bathroom Flooring {non cyclicaI).Owclling Unit-Interior (1480)-"Elcctricol,Dwclling Unit-Interior (1480)-Flooring (non routinc),Dwclling Unit-Interior (1480)-Tntcrior Painting (non routinc).Dwclling Unit-Interior ( 1480}-Kitchcn Cabinets.Dwelling Unit-lnt.erior (1480)-Kitch.ca Sinks and Fnucets,Dwclling Unit•lnterior (1480)-Plumbing.Dwolling Unii-!rucrior (1480)· Tubs and Showers)

ID0030 Block Fc:ncing(Non-Owclling Site Werle (1480)-Fcnci.ng)



2577-0274

07/31/2017


$335,000.00

Salary compensation for Capital Fund administrators $33,500.00

Operations for general budget as need arises. $76,500.00

10-IO and 10-8 units. Provide 3" curb cuts where needed. Adjust grade around buildings adding clean fill where needed. Grade should be 2" from top of

$40,000.00

sidewalk. Install 1/2" screened gravel at a depth of2".

Upgrade 3 units to UFAS Accessibility Checklist. Remodel kitchens and bathrooms replacing cabinetry, countertops and plumbing fixtures, replace VCT

$79,539.00

flooring throughout unit, move electrical switches and receptacles, replace 3 exterior doors and hardware (front, back, & laundry).

Kitchens to include replacement of cabinets, sink, range hood, light fixture and counter tops. Bathrooms to include replacement of bathtub, sink, exhaust fan,

$46,426.00

light fixture and medicine cabinet. Remove fiberglass tub surround and replace with tile. Replace VCT flooring throughout the unit.

Add 3 ft. block fencing around common area of Tomahawk site. Excavate I ft. $21,000.00 below grade. Layout pattern to minimize cuts. Set level concrete foundation. Lay courses up to 3 ft. tall in mortar joints. Docs not include top filling.

Form HUD-50075.2(4/2008)


Part II: Supporting Pages - Physical Needs Work Statements (s)



IDOOJI HV AC unit replaeemcnt(Dwclling Unit-Exterior (1480)-Othcr)

ID0041 Staff Training (Management Improvement (1408)-StaffTraining)

Subtotal of Estimated Cost



07/31/2017


Replacement of6 HV AC units as they become irreparable. Locations to be $33,035.00 determined as needed.

CAP related training for maintenance supervisor and administrative staff. $5,000.00

$335,000.00

Form HUD-50075.2(4/2008)





PINAL (AZ0IOOOOOOI)

ID0020 Administraton(Administration (1410)-Salarics)

ID0021 Operations(Opcrations ( 1406))

ID0032 Evaporative Cooler Replaccment(Dwcning Unit-Exterior (1480)-Other)

ID0038 Modernize kitchens and bathrooms in 4 units(Dwclling Unit-Interior ( 1480)-Bathroom Counters and Sinks,Dwclling Unit-Interior (1480)-Bathroom Flooring (non cyclical),Dwelling Unit-Interior (1480)-Elcctrical,Dwclling Unit-Interior (1480)-Flooring (non routinc),Dwelling Unit-Interior (1480)-Jntcrior Painting (non routinc),Dwelling Unit-Interior ( 1480)-Kitchcn Cabincts,Dwelling Unit-Interior ( 1480)-Kitchen Sinks and Faucets.Dwelling Unit-Interior (1480)-Plumbing.Dwclling Unit-Interior (1480)-Tubs and Shower,;\

ID0039 Slurry Scal(Non-Dwelling Site Work (1480)-Asphalt - Concrete - Paving)

Subtotal ofEstimatcd Cost



07/31/2017


$335,000.00

Salary compensation for Capital Fund Manager $33,500.00

Operations for general budget as need arises. $80,000.00

Replace 12 evaporative coolers with HVAC units in Casa Grande. Disconnect all $87,148.00 existing systems, crane scrvkc, install new split system heat pumpl4 seer, line sets, TXV, and necessary duct work Existing stand to be modified as necessary, condensation pump, electrical supply, 3/4" pvc drain line and sheet metal. Install new non programable thermostats. provide a 220 V circuit for air handler with disconnect or rccentacle cord. Kitchens to include replacement of cabinets, sink, range hood, light fixture and counter tops. Bathrooms to include replacement of bathtub, sink, exhaust fan,

$92,852.00

light fixture and medicine cabinet. Remove fiberglass tub surround and replace with tile. Replace VCT flooring throughout the unit.

Eleven Mile Comer - Provide area protection. Remove loose debris from surface. $41,500.00 Seal cracks. Apply slurry seal to existing asphalt. Clean up.

$335,000.00

Form HUD-50075.2(4/2008)





PINAL(AZ0IO00OOOI)

100026 Opcralions{()pcrations (1406))

100033 HV AC unit rcploccmcn1(Dwclling Unit-EJ<1crior ( 1480)-Othcr)

100034 Adfl)inisu-aton(Administration ( 1410)-Salari�)

T0003S RoofRcplaccmcot(Dwclling Unit-Exterior (1480)-Roofs)

JD0036 Modernize kitchens and balli.moms In 3 unlts(D\\'clling Unh-lntai<>r ( 1480)-Balhroom Counters and S[nks.Dwcllinc Un.i1-ln1crior (1480}-B<Uhmom Flooring (non cyclic::i\),Dwelling Unit-Interior (1480)-Ekcuic:11.Owdling Uni1-lntcrlor (14S0}-Floorins (non routinc),Owdlfng Unit-lntcrior(1480)-Jntcrior Pointing (non rourinc).D"'cllln& Unit-Interior ( 1480)-Kiwhcn Cabinets.Dwelling Unit-Interior ( 1480)-Kiu:hcn Sinks and Fauccl5,Dwc1Hng Unit-Interior (1480)-Plurnbing,Dwclling Unit-Interior (1480)-Tu"• nod Shnwcro<,

ID0037 Erosion Conaol in Casa Grnndc(Noa-Dwclling Site Work (1480)-Stonn Drainage)



07/31/2017


$335,000.00

Operations budget for general operations need as lhcy arises. $75,000.00

Replacement of IS HY AC unit< as they become im:pmblo.. Locations to be $75,361.00 determined as needed.

Salary compcnsal.ion fo r C.1pi1al Fund administra.toro $33,500.00

Replacement of roofs as riccdcd when they become irreparable. Locations to be $36,500,00 determined as needed.

lC,itchcm to include ccplaccmcnl of cabinets. sink, range hood, light furnuc and $69,639.00 counter tops Bathrooms to include replacement of bathtub, sink, exhaust fan, light fixture and medicine caliinct, Remove fiberglass tub surround and replace whh rile. Replace VCT Jlooring throughout the unit

Pro,➔dc 3" cub cuts where needed. Adjust grade around bu[ldingsadding clean fill where needed. Grade should be 2" from top of sidewalk Install If.!" screened

S40,000.00

gravel at a depth of2".

Form HUD-50075.2(4/2008)



Work Statement for Year 5


ID0042 Staff Training (MAnagement Improvement (1408)-StaffTraining)

Subtotal ofEstimated Cost

2023



07/31/2017


CAP related training for maintenance supervisor and administrative staff. $5,000.00

$335,000.00

Fonn HUD-50075.2(4/2008)

Pinal County Housing Department

Fiscal Year 2020-2021

FINANCIAL RESOURCES

Sources

Public Housing

Federal Grants Estimated

- Public Housing Operating Funds

- Public Housing Capital Fund

Other Revenue

Public Housing Dwelling Rental Income

Other Income Public Housinq

General Fund Contribution - Wages

General Fund Contribution - Fleet

Total Public Housing

Housing Choice Voucher


- Housing Assistance Payment

- Administrative Funding

Other Revenue

Portability Income

Other Income HCV


General Fund Contribution - Fleet

Total Housing Choice Voucher

TOTAL RESOURCES

Dollar Amount Comments

704,419

335,000 See 5 Yr Action Plan

179,294

41,554 Mgmt Fees, Tenant Work Orders/Damages

21,364 Benefits for 2 Maint. Workers, expecting add'I contrib

6,429 Fleet Maint. for public housing vehicles

1,288,060

3,388,252

295,479

18,358

1,872 Admn Fees & Fraud Recovery

20,896 General Fund Contrib. from

715 Fleet Maint. for HCV vehicles

3,725,573

5,013,633

Pinal County Housing Department

FINANCIAL RESOURCES

Sources

Public HousinQ


Public Housing Operating Funds

Public Housing Capital Fund

Other Revenue

Public Housing Dwelling Rental Income

Other Income Public Housing


General Fund Contribution - Fleet Total Public Housing

Housing Choice Voucher


- Housing Assistance Payment

- Administrative Funding

Other Revenue

Portability Income

Other Income HCV


General Fund Contribution - Fleet Total HousinQ Choice Voucher

TOTAL RESOURCES

Fiscal Year

2020-2021

Dollar Amount

704,419

335,000

179,294

41,554

21,364

6,429 1,288,060

3,388,253

295,479

18,358

1,872

20,896

715 3,725,573

5,013,633

Fiscal Year

2021-2022

Dollar Amount

660,350

335,000

182,880

41,554

21,791

6,558 1,248,133

3,405,194

296,956

18,450

1,891

21,314

729 3,744,535

4,992,668

Fiscal Year

2022-2023

Dollar Amount

618,059

335,000

186,537

41,554

22,227

6.,689 1,210,066

3,422,220

298,441

18,635

1,910

21,740

744

3,763,690

4,973,756

Fiscal Year Fiscal Year

2023-2024 2024-2025

Dollar Amount Dollar Amount Comments

630,420 643,029 ARF induded Until 2022-2023

335,000 335,000 See 5 Yr Action Plan

190,268 194,073

41,554 41,544 Mgmt Fees, Tenant Woll< Orders/Damages

22,672 23,125 aenefits for 2 Maint. Worl<ers, expecting add'I contrib

6,823 6,959 l=leet Main! for public housing vehides

1,226,736 1,243,730

3,439,331 3,456,528 Expect to maintain or slighHy increase utilization

299,933 301,433

19,007 19,387

1,929 1,948 Admn Fees & Fraud Recovery

22,175 22,618 Expected contribution from general fund for wages

759 774 3,783,135 3,802,689

5,009,871 5,046,419

PINAL COUNTY HOUSING DEPARTMENT Casa Grande, Arizona ___________________

REPORT ON AUDIT OF BASIC FINANCIAL STATEMENTS, SUPPLEMENTAL INFORMATION AND SINGLE AUDIT

___________________

FOR THE YEAR ENDED JUNE 30, 2019 AND 2018

TABLE OF CONTENTS

PAGE Independent Auditor's Report on Basic Financial Statements and Other Supplemental Information ………………………...……………………………………….

Management's Discussion and Analysis ………………………...………………………………..

1-2

3-9

Basic Financial Statements

Statement of Net Position ….……...……………………………...…………………………………. 10

Statement of Revenues, Expenses and Changes in Net Position ……..……...………………... 11

Statement of Cash Flows ....……...………………………………...……………………….………. 12-13

Notes to Basic Financial Statements ..………………………..……………………………………. 14-26

Supplemental Information

Combining Schedule of Assets, Liabilities and Net Position ….……………...……………..……. 28

Combining Schedule of Revenues, Expenses and Changes in Net Position …...………...……. 29

Schedule of Expenditure of Federal Awards ……………….….…………...………………………. 30

Arizona State Retirement System ………….…………….…………………………………….……. 31

Single Audit Section Report on Internal Control Over Financial Reporting and On Compliance and Other Matters

Based On Audit of Basic Financial Statements Performed in Accordance With

Government Auditing Standards .………….…………………...…………………………………. 33-34

Report on Compliance With Requirements Applicable to Each Major Program and On Internal Control Over Compliance in Accordance With OMB Circular A-133 ..………………. 35-36

Schedule of Findings and Questioned Costs ...…………….….……………………...……………. 37-28

Summary Schedule of Prior Audit Findings ...…………….…...……………………………………. 39

office 801.872.9470 mail PO Box 1516 | Bountiful, Utah 84011

www.B2aCPA.com

To the Board of CommissionersPinal County Housing DeptFlorence, AZ

Report on the Financial StatementsWe have audited the accompanying financial statements of Pinal County Housing Dept (the Authority), which comprise the Statement of Net Position as of June 30, 2019, and the related Statements of Revenue, Expenses and Changes in Net Position and Cash Flows for the year then ended, and the related notes to the financial statements.

Management’s Responsibility for the Financial Statements

Management is responsible for the preparation and fair presentation of these financial statements in accordance with accounting principles generally accepted in the United States of America; this includes the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error.

Auditors’ Responsibility

Our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits 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. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor’s judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity’s preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity’s internal control. Accordingly, we express no such opinion. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluating the overall presentation of the financial statements.

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.

Unqualified Opinion

In our opinion, the financial statements referred to in the first paragraph present fairly, in all material respects, the financial position of The Authority as of June 30, 2019 and the results of its operations and its cash flows for the year then ended in accordance with accounting principles generally accepted in the United States of America.

Other Matters

Required Supplementary InformationAccounting principles generally accepted in the United States of America require the management’s discussion and analysis be presented to supplement the basic financial statements. Such information, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic, or historical context. We have applied certain limited procedures to required supplementary information in accordance with auditing standards generally accepted in the United States of America, which consisted principally of inquiries of management regarding the methods of preparing the information and comparing the information to consistency with management’s responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements. We do not express an opinion or provide any assurance of the information because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance.

Other InformationOur audit was conducted for the purpose of forming an opinion on the financial statements as a whole. The accompanying supplementary information is presented for purposes of additional analysis as required by the Uniform Financial Reporting Standards issued by the U.S. Department of Housing and Urban Development, Office of the Inspector General, and is not a required part of the financial statements. The accompanying schedule of expenditures of federal awards, as required by Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards, is presented for purposes of additional analysis and is not a required part of the financial statements. Such information is the responsibility of management and was derived from and relates directly to the underlying accounting and other records used to prepare the financial statements. The information has been subjected to the auditing procedures applied in the audit of the financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the financial statements or to the financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America. In our opinion, the information is fairly stated, in all material respects, in relation to the financial statements as a whole.

Other Reporting Required by Government Auditing StandardsIn accordance with Government Auditing Standards, we have also issued our report dated September 26, 2019,on our consideration of the Authority’s internal control over financial reporting and on our 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 our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the Authority’s internal control over financial reporting and compliance.

BB2a, CPAs B2a, CPAsBountiful, UtahSeptember 26, 2019

2

PINAL COUNTY HOUSING DEPARTMENT Casa Grande, Arizona

MANAGEMENT’S DISCUSSION AND ANALYSIS JUNE 30, 2019 AND 2018

(Continued)

The Pinal County Housing Department’s (“the Authority”) Management’s Discussion and Analysis is designed to (a) assist the reader in focusing on significant financial issues, (b) provide an overview of the Authority’s financial activity, (c) identify changes in the Authority’s financial position, and (d) identify individual fund issues or concerns.

Since the Management’s Discussion and Analysis (MD&A) is designed to focus on the current year’s activities, resulting changes and currently known facts, please read it in conjunction with the Authority’s basic financial statements.

Financial Highlights

• The Authority’s net position increased by $2,489 (0.05%) during the fiscal year ended 2019.• The total operating revenues of the Authority decreased by $46,669 (1.0%) during the fiscal year

ended 2019.• The total operating expenses of all Authority programs decreased by $102,858 (2.0%) during the

fiscal year ended 2019.• At the close of fiscal year ended 2019, the Authority’s assets exceeded its liabilities by $4,790,907.

Using this Annual Report

The Report includes three major sections, the “Management’s Discussion and Analysis (MD&A)”, “Basic Financial Statements”, and “Other Supplemental Information”:

MD&A ~ Management’s Discussion and Analysis

Basic Financial Statements ~ Authority-wide Financial Statements –

Statement of Net Position Statement of Revenues, Expenses, and Changes in Net Position

Statement of Cash Flows

~ Notes to Basic Financial Statements

Supplemental Information ~ Supplemental Information (other than the MD&A)

The primary focus of the Authority’s basic financial statements is on both the Authority as a whole (Authority-wide) and the major individual programs. Both perspectives (Authority-wide and major individual programs) allow the user to address relevant questions, broaden a basis for comparison (year to year or Authority to Authority), and enhance the Authority’s accountability.

3



(Continued)

Authority-Wide Basic Financial Statements

The Authority-wide basic financial statements are designed to be corporate-like in that all business type activities are consolidated into columns which add to a total for the entire Authority.

These Statements include a Statement of Net Position, which is similar to a Balance Sheet. The Statement of Net Position reports all financial and capital resources for the Authority. The statement is presented in the format where assets minus liabilities, equals “Net Position”, formerly known as equity. Assets and liabilities are presented in order of liquidity, and are classified as “Current” (convertible into cash within one year), and “Non-Current”.

The focus of the Statement of Net Position is designed to present the net available liquid (non-capital) assets, net of liabilities, for the entire Authority. Net Position (formerly equity) is reported in three broad categories:

Net Investment in Capital Assets: This component of Net Position consists of all Capital Assets, reduced by the outstanding balances of any bonds, mortgages, notes or other borrowings that are attributable to the acquisition, construction, or improvement of those assets. Restricted Net Position: This component of Net Position consists of restricted assets, when constraints are placed on the asset by creditors (such as debt covenants), grantors, contributors, laws, regulations, etc. Unrestricted Net Position: Consists of Net Position that does not meet the definition of “Net Investment in Capital Assets”, or “Restricted Net Position”.

The Authority-wide basic financial statements also include a Statement of Revenues, Expenses and Changes in Net Position (similar to an Income Statement). This Statement includes Operating Revenues, such as rental income, Operating Expenses, such as administrative, utilities, maintenance and depreciation, and Non-Operating Revenue and Expenses, such as capital grant revenue, investment income, and interest expense.

The focus of the Statement of Revenues, Expenses and Changes in Net Position is the “Change in Net Position”, which is similar to Net Income or Loss.

Finally, a Statement of Cash Flows is included, which discloses net cash provided by, or used for operating activities; non-capital financing activities; from capital and related financing activities; and from investing activities.

Basic Financial Statements

The Authority consists of an Enterprise Fund. Enterprise funds utilize the full accrual basis of accounting. The Enterprise method of accounting is similar to accounting utilized by the private sector accounting.

Many of the programs maintained by the Authority are required by the Department of Housing and Urban Development. Others are segregated to enhance accountability and control.

4



(Continued)

The Authority’s Programs

Low Rent Public Housing – Under the Low Rent Public Housing Program, the Authority rents units that it owns to low-income households. The Low Rent Public Housing Program is operated under an Annual Contributions Contract (ACC) with HUD, and HUD provides Operating Subsidy and Capital Grant funding to enable the Authority to provide the housing at a rent that is based upon 30% of household income. The Low Rent Public Housing Program also includes the Capital Fund Program, which is the primary funding source for physical and management improvements to the Authority’s properties.

Housing Choice Voucher Program – This program is a type of Section 8 assistance. The Authority administers contracts with independent landlords that own the property. The Authority subsidizes the family’s rent through a Housing Assistance Payment (HAP) made to the landlord. The program is administered under an Annual Contributions Contract (ACC) with HUD. HUD provides contributions to the Authority to enable the Authority to subsidize the participants’ rents.

Capital Fund Program – The Conventional Public Housing (low rent) also includes the capital fund program, which is the primary source for physical management improvements to the Authority’s ACC properties. The formula funding methodology used is based upon the number of units, bedroom sizes of those units, and age of the buildings/units.

ROSS Grant – This grant programmatically addresses the needs of public housing residents by providing service coordinator positions to coordinate supportive services, resident empowerment activities and/or assisting residents in becoming economically self-sufficient or age-in-place.

Business Activities – This fund accounts for the Authority owned rental properties.

Authority-wide Statements

Statement of Net Position: The following table reflects the Statement of Net Position compared to prior year. The Authority is engaged only in Business-type activities.

5



(Continued)

Table 1 - Comparative Statement of Net Position

2019 2018Increase

(Decrease)ASSETS Current Assets

Cash and cash equivalents, unrestricted 465,848$ 312,983$ 152,865$ Cash and cash equivalents, restricted 381,361 316,004 65,357 Accounts receivable, net of allowance 25,884 63,321 (37,437) Inventories, net of obsolescence 58,512 37,282 21,230 Prepaid expense 38,882 42,437 (3,555) Total Current Assets 970,487 772,027 198,460

Noncurrent Assets Other Assets

Notes, loans & mortgage receivable - noncurrent - - - Capital Assets

Not being depreciated 426,628 426,628 - Depreciable, net 5,117,747 5,491,820 (374,073) Total Capital Assets, net 5,544,375 5,918,448 (374,073) Total Noncurrent Assets 5,544,375 5,918,448 (374,073)

Total Assets 6,514,862 6,690,475 (175,613) Deferred Outflow of Resources 180,085 143,167 36,918 Total Assets and Deferred Outflow of Resources 6,694,947 6,833,642 (138,695) LIABILITIES Current Liabilities

Vendors and contractors payable 23,901 20,038 3,863 Accrued wages/taxes payable 34,718 33,874 844 Accrued compensated absences 3,182 3,600 (418) Other current liabilities 16,465 3,360 13,105 Total Current Liabilities 78,266 60,872 17,394

Current liabilities payable from restricted assetsResident Security Deposits 28,155 30,365 (2,210)

Noncurrent liabilitiesLoan liability - noncurrent 486,851 486,851 - Accrued compensated absences 73,182 82,804 (9,622) Net pension liability 1,096,528 1,155,298 (58,770) Total Noncurrent Liabilities 1,656,561 1,724,953 (68,392)

Total Liabilities 1,762,982 1,816,190 (53,208) Deferred Inflow of Resources - Pensions 141,058 96,777 44,281 Deferred Inflow of Resources - Other 132,257 (132,257) Total Liabilities and Deferred Inflow of Resources 1,904,040 2,045,224 (141,184) Net Position Net investment in capital assets 5,057,524 5,431,597 (374,073) Restricted net position 318,771 168,222 150,549 Unrestricted net position (585,388) (811,401) 226,013

Total Net Position 4,790,907$ 4,788,418$ 2,489$

For more detailed information see the Statement of Net Position.

6



(Continued)

Major Factors Affecting the Statement of Net Position

During 2019, net position slightly increased by $2,489 caused primarily by an increase in restricted cash during the period. Contributing to the increase was an increase in inventories, net of obsolescence of $21,230 compared to the previous year, an increase of unrestricted cash of $152,865 and a decrease in net pension liability of $58,770. Offsetting the increase was a decrease in net investment in capital assets of $374,073 in noncurrent assets due to depreciation expense. Other factors offsetting the increase in the net position were a decrease in accounts receivable, net of allowance of $37,437 and an increase in vendors and contractors payable of $3,863.

Comparative Statement of Revenues, Expenses and Changes in Net Position

The following schedule compares the revenues and expenses for the current and previous fiscal year. The Authority is engaged in Business-type Activities.

Table 2 - Comparative Statement of Revenues, Expenses and Changes in Net Position

2019 2018Increase

(Decrease)Operating Revenue

Rental Revenue 208,440$ 272,646$ (64,206)$ HUD Grants 4,415,190 4,362,365 52,825 Other revenue 228,783 83,074 145,709 Total operating revenue 4,852,413 4,718,085 134,328

Operating ExpensesAdministrative 628,597 649,071 (20,474) Tenant services 2,260 89 2,171 Utilities 32,131 40,372 (8,241) Ordinary maintenance and operation 402,503 464,312 (61,809) Insurance 89,605 90,633 (1,028) General expenses 203,365 168,551 34,814 Housing assistance payments 3,196,375 3,239,282 (42,907) Depreciation 375,850 381,234 (5,384) Total operating expense 4,930,686 5,033,544 (102,858) Operating income (loss) (78,273) (315,459) 237,186

Non-operating revenues (expenses)Interest revenue 22 24 (2) Fraud recovery - - - Gain on sale of capital assets 80,740 - 80,740 Total non-operating revenues (expenses) 80,762 24 80,738

Income (loss) before capital contributions 2,489 (315,435) 317,924 Capital contributions - - -

Increase (decrease) in net position 2,489 (315,435) 317,924 Net position, beginning of year 4,788,418 5,103,853 (315,435) Net position, end of year 4,790,907$ 4,788,418$ 2,489$

7



(Continued)

Major Factors Affecting the Statement of Revenues, Expenses and Changes in Net Position

Operating revenues increased during 2019 by $145,709 due to an increase in other revenue from $83,074 to $228,783. The increase was due to the recognition of income from fiscal year 2016 through the current year of program income that the Housing Authority has determined it is eligible to keep. Other factors contributing to the increase in the net position was an overall increase in operating subsidies received from HUD from $4,362,365 to $4,415,190. Offsetting that increase was a decrease in rental revenue from $272,646 to $208,440.

Operating expenses decreased by $102,858 during 2019 due to the decrease in housing assistance payments made to landlords and a decrease in general expenses. The decrease in general expenses was mainly due to decreased costs associated with ordinary maintenance and operation and utilities due to a decreased turnover rate.

Overall, net position increased by $2,489 due to operating revenues exceeding operating expenses for the current year.

Federal Awards:Capital Fund Program 204,088$ Low Rent Public Housing 659,960 ROSS 80,542 Housing Choice Vouchers 3,470,600 Total Federal Awards 4,415,190$

Capital Assets and Debt Administration

Capital Assets

As of the year-end, the Authority had $5,544,375 invested in a variety of capital assets as reflected in the following schedule.

Table 3 - Capital Assets at Year-End (Net of Depreciation)

2019 2018Increase

(Decrease)Non depreciable Land 426,628$ 426,628$ -$ Total 426,628 426,628 - Depreciable Buildings 11,038,235 11,083,134 (44,899) Leasehold improvements 1,852,910 1,852,910 - Infrastructure 245,970 245,970 - Equipment 194,079 186,044 8,035 Total 13,331,194 13,368,058 (36,864)

Accumulated Depreciation 8,213,447 7,876,238 337,209 Total 5,117,747 5,491,820 (374,073) Capital assets, net 5,544,375$ 5,918,448$ (374,073)$

8



(Continued)

Debt Outstanding

The Authority had long term liabilities of $1,656,561 and $1,724,953 for 2019 and 2018 respectively for a net decrease of $68,392. The majority of the net decrease is attributed to the decrease of the net pension liability of $58,770 in 2019. In addition, for 2019 the long term liabilities consisted of a loan from the State of Arizona of $486,851 and compensated absences of $73,182. For 2018 the long term liabilities consisted of a loan from the State of Arizona of $486,851 and compensated absences of $82,804.

The loan from the State of Arizona was dated December 9, 2003 and carries an interest rate of 0%, and has a maturity date of September 30, 2019. The loan is forgivable at the maturity date provided the loan does not become due and payable due to the disposition of the underlying property or other noncompliance with the terms of the debt that cannot be resolved.

Factors Affecting Next Year’s Budget The Authority continues its affordable housing ventures. Availability of funding from HUD for operating subsidy, housing voucher program and modernization remain uncertain and volatile.

Economic Factors

Significant economic factors affecting the Authority are as follows: • Federal funding provided by Congress to the Department of Housing and Urban Development.• Local labor supply and demand, which can affect salary and wage rate.• Local inflationary, recessionary and employment trends, which can affect resident incomes and

therefore the amount of rental income.• Inflationary pressure on utility rates, supplies and other costs.• Increased material, contracted labor, and insurance costs due to storm activity or drought.

Financial Contact

The individual to be contacted regarding this report is Adeline Allen, Director of the Pinal County Housing Department. Specific requests may be submitted in writing to the Pinal County Housing Department, 970 North Eleven Mile Corner Road, Casa Grande, AZ 85294 or by telephone at (520) 866-7201.

9


ASSETS

Current AssetsCash and cash equivalents, unrestricted 465,848$ Cash and cash equivalents, restricted 381,361 Accounts receivable, net of allowance 25,745 Due from other governments 139 Inventories, net of obsolescence 58,512 Prepaid expense 38,882 Total current assets 970,487

Noncurrent AssetsOther Assets Notes and mortgages receivable - Capital Assets Not being depreciated 426,628 Depreciable net 5,117,747 Total capital assets, net 5,544,375 Total noncurrent assets 5,544,375

Total Assets 6,514,862 Deferred Outflow of Resources 180,085

Total Assets and Deferred Outflow of Resources 6,694,947

LIABILITIES

Current LiabilitiesVendors and contractors payable 23,901 Accrued wages/taxes payable 34,718 Accrued compensated absences 3,182 Other current liabilities 16,465 Total current liabilities 78,266

Current liabilities payable from restricted assetsResident security deposits 28,155

Noncurrent LiabilitiesNotes and bonds payable 486,851 Accrued compensated absences 73,182 Net pension liability 1,096,528 Total noncurrent liabilities 1,656,561

Total Liabilities 1,762,982 Deferred Inflow of Resources, pensions 141,058 Deferred Inflow of Resources, other

Total Liabilities and Deferred Inflow of Resources 1,904,040

NET POSITIONNet investment in capital assets 5,057,524 Restricted 318,771 Unrestricted (585,388)

Total Net Position 4,790,907$

STATEMENT OF NET POSITIONJUNE 30, 2019

10


Operating RevenuesRental Revenue 208,440$ HUD grants 4,415,190 Other revenue 228,783 Total operating revenues 4,852,413

Operating ExpensesAdministrative 628,597 Tenant services 2,260 Utilities 32,131 Ordinary maintenance & operation 402,503 Insurance 89,605 General expenses 203,365 Housing assistance payments 3,196,375 Depreciation 375,850 Total operating expenses 4,930,686

Operating income (loss) (78,273)

Non-operating revenues (expenses)Interest revenue 22 Fraud recovery - Gain on sale of capital assets 80,740 Total non-operating revenues (expenses) 80,762

Increase (decrease) in net position 2,489

Net position, beginning of year 4,788,418 Net position, end of year 4,790,907$

STATEMENT OF REVENUES, EXPENSES AND CHANGES IN NET POSITIONFOR THE YEAR ENDED JUNE 30, 2019

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Cash Flows From Operating ActivitiesReceipts from dwelling rents 244,919$ Operating grants 4,415,190 Other receipts 95,274 Payments to employees (689,200) Payments to suppliers (730,571) Payments to landlords and resident benefits (3,196,375) Net cash provided (used) by operating activities 139,237

Cash Flows From Capital and Related Financing ActivitiesCapital contributions - Capital asset acquisitions purchased/constructed (1,777) Net cash provided (used) by investing activities (1,777)

Cash Flows From Investing ActivitiesInterest 22 Fraud recovery - Proceeds from homebuyer note activity - net - Gain on disposal of capital asset 80,740 Net cash provided (used) by investing activities 80,762

Net increase (decrease) in cash and cash equivalents 218,222 Balance - beginning of the year 628,987 Balance - end of the year 847,209$

Reconciliation of Cash Flows to Statement of Net PositionCash and cash equivalents, unrestricted 465,848$ Cash and cash equivalents, restricted 381,361 Balance - end of the year 847,209$

STATEMENT OF CASH FLOWSFOR THE YEAR ENDED JUNE 30, 2019

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Operating Income/(loss) (78,273)$

Adjustments to reconcile net operating income (loss) to net cash provided (used)by operating activities:

Depreciation elimination 375,850 Changes in assets and liabilities Accounts receivables, net (8,031) Due to/from other governments 45,468 Inventories (21,230) Prepaid items 3,555 Deferred outflows of resources, pensions (36,918) Vendors and contractors payable 3,863 Accrued wages/taxes payable 844 Other current liabilities 13,105 Resident security deposits (2,210) Accrued compensated absences (10,040) Net pension liability (58,770) Deferred inflows of resources, pensions 44,281 Deferred inflows of resources, other (132,257) Net cash provided (used) by operating activities 139,237$

STATEMENT OF CASH FLOWSFOR THE YEAR ENDED JUNE 30, 2019

(Continued)

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NOTES TO BASIC FINANCIAL STATEMENTS JUNE 30, 2019

A – Summary of Significant Accounting Policies and Organization:

1. Organization: Pinal County Housing Department (“the Authority”) is a public body corporateand politic pursuant to the Laws of the State of Arizona which was organized to provide lowrent housing for qualified individuals in accordance with the rules and regulations prescribedby the U.S. Department of Housing and Urban Development (HUD) and other federalagencies.

2. Reporting Entity: In determining how to define the reporting entity, management hasconsidered all potential component units. The decision to include a component unit in thereporting entity was made by applying the criteria set forth in Section 2100 and 2600 of theCodification of Governmental Accounting and Financial Reporting Standards and StatementNo.14, (amended) of the Governmental Accounting Standards Board: The FinancialReporting Entity. These criteria include manifestation of oversight responsibility includingfinancial accountability, appointment or a voting majority, imposition of will, financial benefit toor burden on a primary organization, financial accountability as a result of fiscal dependency,potential for dual inclusion, and organizations included in the reporting entity although theprimary organization is not financially accountable. Based upon the application of thesecriteria, the reporting entity has no component units.

The basic financial statements of the Authority consist primarily of Low Rent Public Housingunder Annual Contributions Contract SF 202.

3. Summary of HUD and Other Authority Programs: The accompanying basic financialstatements consist of the activities of the housing programs subsidized by HUD and Authorityowned entities. A summary of each of these programs is provided below.

a. Annual Contributions Contract

1) Low Rent Public Housing: This type of housing consists of apartments and single-family dwellings owned and operated by the Authority. Funding is provided by tenantrent payments and subsidies provided by HUD.

2) Modernization and Development: Substantially all additions to land buildings, andequipment are accomplished through the Capital Fund Program. These programs addto, replace or materially upgrade deteriorated portions of the Authority’s housing units.Funding is provided through programs established by HUD.

3) Resident Opportunity and Supportive Services (ROSS): The Authority will providesupportive services to its elderly and disabled housing residents in order to enhancetheir quality of life and to enable residents to maintain their independence as long aspossible. Services will include a wellness program, transportation, congregate meals,housekeeping aid, employment assistance, recreational activities and casemanagement.

b. Annual Contributions Contract – Housing Assistance Payments Programs

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Housing Choice Vouchers: This is a housing program wherein low rent tenants lease housing units directly from private landlords rather than through the Authority. The Authority contracts with private landlords to make assistance payments for the difference between the approved contract rent and the actual rent paid by the low rent tenants.

4. Basis of Presentation and Accounting: In accordance with uniform financial reportingstandards for HUD housing programs, the basic financial statements are prepared inaccordance with U.S. generally accepted accounting principles (GAAP).

Based upon compelling reasons offered by HUD, the Authority reports its basic financial statements as a special purpose government engaged solely in business-type activities, which is similar to the governmental proprietary fund type (enterprise fund), which uses the accrual basis of accounting and the flow of economic resources measurement focus. Revenues are recorded when earned and expenses are recorded at the time the liabilities are incurred. Pursuant to GASB Statement No. 62, Codification of Accounting and Financial Reporting Guidance Contained in Pre-November 30, 1989 FASB and AICPA Pronouncements, certain accounting and financial reporting guidance is applied in the preparation of the basic financial statements, unless those pronouncements conflict with or contradict GASB pronouncements.

Generally accepted accounting principles for state and local governments requires that resources be classified for accounting and reporting purposes into the following three net position categories:

Net Investment in Capital Assets – Capital assets, net of accumulated depreciation and outstanding principal balances of debt attributable to the acquisition, construction or improvement of those assets.

Restricted – Net position whose use by the Authority is subject to externally imposed stipulations that can be fulfilled by actions of the Authority pursuant to those stipulations or that expire by the passage of time. Such assets include assets restricted for capital acquisitions and debt service.

Unrestricted – Net position that is not subject to externally imposed stipulations. Unrestricted net position may be designated for specific purposes by action of management or the Authority Board or may otherwise be limited by contractual agreements with outside parties.

5. Budgets: Budgets are prepared on an annual basis for each major program and are used asa management tool throughout the accounting cycle. The capital fund budgets are adoptedon a “project length” basis. Budgets are not, however, legally adopted nor legally required forbasic financial statement presentation.

6. Cash and Cash Equivalents: For purposes of the Statement of Cash Flows, the Authorityconsiders all highly liquid investments (including restricted assets) with a maturity of threemonths or less when purchased and non-negotiable certificates of deposit to be cashequivalents. There were no noncash investing, capital and financing activities during the year.

7. Inter-program Receivables and Payables: Inter-program receivables/payables, whenpresent, are all current, and are the result of the use of the Public Housing Program as thecommon paymaster for shared costs of the Authority. Cash settlements are made periodically,

15



and all inter-program balances net zero. Offsetting due to/due from balances are eliminated for the basic financial statement presentation.

8. Investments: Investments, when present, are recorded at fair value. Investment instrumentsconsist only of items specifically approved for public housing agencies by HUD. Investmentsare either insured or collateralized using the dedicated method under the dedicated methodof collateralization, all deposits and investments over the federal depository insurancecoverage are collateralized with securities held by the Authority’s agent in the Authority’sname. It is the Authority’s policy that all funds on deposit are collateralized in accordance withboth HUD requirements and requirements of the State of Arizona.

9. Inventories: Inventories (consisting of materials and supplies) are valued at cost using thefirst in, firs out (FIFO) method. If inventory falls below cost due to damage, deterioration orobsolescence, the Authority establishes an allowance for obsolete inventory. In accordancewith the consumption method, inventory is expensed when items are actually placed inservice.

10. Prepaid Items: Payments made to vendors for goods or services that will benefit periodsbeyond the fiscal year end are recorded as prepaid items.

11. Use of Estimates: The preparation of basic financial statements in conformity with U.S.generally accepted accounting principles requires management to make estimates andassumptions that affect the reported amounts of assets and liabilities and disclosure ofcontingent liabilities at the date of the basic financial statements and reported amounts ofrevenues and expenditures during the reporting period. Actual results could differ from thoseestimates.

12. Fair Value of Financial Instruments: The carrying amount of the Authority’s financialinstruments at June 30, 2019 including cash, investments, accounts receivable, and accountspayable closely approximates fair value.

13. Capital Assets:

a. Book Value: All purchased fixed assets are valued at cost when historical records areavailable, fixed assets are valued at estimated historical cost.

Land values were derived from development closeout documentation.

Donated fixed assets are recorded at their fair value at the time they are received.

Donor imposed restrictions are deemed to expire as the asset depreciates.

All normal expenditures or preparing an asset for use are capitalized when they meet orexceed the capitalization threshold.

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b. Depreciation: The cost of buildings and equipment is depreciated over the estimateduseful lives of the related assets on a composite basis using the straight-line method.

Depreciation commences on modernization and development additions in the yearfollowing completion.

The useful lives of buildings and equipment for purposes of computing depreciation areas follows:

Buildings 30 to 40 years Components 10 to 40 years Building Modernization 10 to 40 years Furniture 5 to 7 years Equipment 5 to 7 years Vehicles 5 to 7 years Computers 5 to 7 years

c. Maintenance and Repairs Expenditures: Maintenance and repairs expenditures arecharged to operations when incurred. Betterments for buildings in excess of $25,000 arecapitalized. When buildings and equipment are sold or otherwise disposed of, the assetaccount and related accumulated depreciation account are relieved, and any gain or lossis included in operations.

d. Impairment of Long-Lived Assets: The Authority has been and is currently involved invarious demolition activities in conjunction with its modernization and developmentprograms. In accordance with Statement of Financial Accounting Standards No. 144,“Accounting for the Impairment or Disposal of Long-Lived Assets”, the Authority has atJune 30, 2019, recognized in the accompanying basic financial statements the impact ofthe demolition activities. Under the provisions of the statement, long-lived assets are tobe reviewed for impairment. Application for measurement of long-lived assets should beat the lower of carrying amount or fair value less cost to sell, whether reported in continuingoperations or discontinued operations.

14. Compensated Absences: Compensated absences are those absences for which employeeswill be paid, such as vacation and sick leave computed in accordance with GASB StatementNo. 16. A liability for compensated absences that is attributable to services already renderedand that are not contingent on a specific event that is outside the control of the Authority andits employees, is accrued as employees earn the rights to the benefits. Compensatedabsences that relate to future services or that are contingent on a specific event that is outsidethe control of the Authority and its employees are accounted for in the period in which suchservices are rendered or in which such events take place.

Long-term compensated absences are those that the Authority does not expect to be usedwith the next fiscal year based on experience with their employees.

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15. Litigation Losses: The Authority recognizes estimated losses related to litigation in theperiod in which the occasion giving rise to the loss occurred, the loss is probable and the lossis reasonably estimable.

16. Annual Contribution Contracts: Annual Contribution Contracts provide that HUD shall havethe authority to audit and examine the records of public housing authorities. Accordingly, finaldetermination of the Authority’s financing and contribution status for the Annual ContributionContracts is the responsibility of HUD based on financial reports submitted by the Authority.

17. Risk Management: The Authority is exposed to various risks of loss related to torts; theft of,damage to, and destruction of assets; errors and omissions; injuries to employees; and naturaldisasters. The Authority carries commercial insurance for certain risks of loss, includingworkers’ compensation and employee health and accident insurance, fidelity bond,automobile, and Director and Officers liability. Settled claims resulting from these risks havenot exceeded commercial insurance coverage in any of the past three fiscal years.Additionally, there have been no significant reductions in insurance coverage from the prioryear.

18. Use of Restricted Assets: It is the Authority’s policy to first apply restricted resources whenan expense is incurred for purposes for which both restricted and unrestricted net positionsare available.

19. Operating Revenues and Expenses: The principal operating revenues of the Authority’senterprise fund are charges to customers for rents and services. Operating expenses for theAuthority’s enterprise fund include the cost of providing housing and services, administrativeexpenses and depreciation on capital assets. Revenues and expenses not meeting thisdefinition are reported as non-operating revenues and expenses.

20. Pensions: For purposes of measuring the net pension (asset and) liability, deferred outflowsof resources and deferred inflows of resources related to pensions, and pension expense,information about the pension plans’ fiduciary net position and additions to/deductions fromthe plan’s fiduciary net position have been determined on the same basis as they are reportedby the plans. For this purpose, benefit payments (including refunds of employee contributions)are recognized when due and payable in accordance with the benefit terms. Investments arereported at fair value.

B – Deposits and Investments: For purposes of the Statement of Cash Flows, the Authority considers all highly liquid investments (including restricted assets) with a maturity of three months or less when purchased and non-negotiable certificates of deposit to be cash equivalents.

1. HUD Deposit and Investment Restrictions:

HUD requires authorities to invest excess HUD program funds in obligations of the United States, certificates of deposit or any other federally insured instruments.

HUD also requires that deposits of HUD program funds be fully insured or collateralized at all times. Acceptable security includes FDIC/FSLIC insurance and the market value of securities

18



purchased and pledged to the political subdivision. Pursuant to HUD restrictions, obligations of the United States are allowed as security for deposits. Obligations furnished as security must be held by the Authority or with an unaffiliated bank or trust company for the account of the Authority.

2. Risk Disclosures

a. Interest Rate Risk: As a means of limiting its exposure to fair value losses arising frominterest rates, the Authority’s investment policy limits the Authority’s investment portfolioto maturities not to exceed two years at time of purchase. At June 30, 2019, the Authority’sdeposits and investments were not limited and all of which are either available on demandor have maturities of less than two years.

b. Credit Risk: This is risk that a security or a portfolio will lose some or all of its value dueto a real or perceived change in the ability of the issuer to repay its debt. The Authority’sinvestment policy is that none of its total portfolio may be invested in securities of anysingle issuer, other than the US Government, its agencies and instrumentalities.

c. Custodial Credit Risk: This is the risk that in the event of the failure of the counterparty,the Authority will not be able to recover the value of its investments or collateral securitiesthat are held by the counterparty. All of the Authority’s investments in securities are heldin the name of Pinal County. The Authority’s custodial agreement policy prohibitscounterparties holding securities not in the Authority’s or County’s name. The carryingamounts of the Authority’s cash deposits were $847,209 at June 30, 2019. Bank balancesbefore reconciling items were $846,725 at that date, the total amount of which wascollateralized or insured with securities held by an unaffiliated banking institution in theAuthority’s or the County’s name.

C – Accounts Receivable:

Dwelling Rents $ 4,479 Fraud receivable, net of allowance of $87,104 - Other receivables 9,596

$ 14,075

D – Due From Other Governments:

U.S. Department of Housing and Urban Development $ 11,670 Other PHA's, net of allowance of $7,611 139

$ 11,809

E – Prepaid Expense:

Prepaid Insurance $ 38,882

19



F – Land, Buildings and Equipment:

Balance June 30,

2018 Additions Deletions Balance

June 30, 2019 Not being depreciated: Land $ 426,628 $ - $ - $ 426,628 Construction in progress - - - - Total not being depreciated 426,628 - - 426,628

Depreciable: Buildings & improvements 12,936,045 - (44,900) 12,891,145 Infrastructure 245,970 - - 245,970

Accumulated depreciation (7,717,021) (326,183) - (8,043,204) Net buildings & improvements 5,464,993 (326,183) (44,900) 5,093,911 Equipment 186,043 8,036 - 194,079 Accumulated depreciation (159,217) (11,026) - (170,243)

Net equipment 26,827 (2,990) - 23,836 Net depreciable assets 5,491,820 (329,173) (44,900) 5,117,747

TOTAL $ 5,918,448 $ (329,173) $ (44,900) $ 5,544,375

G – Other Current Liabilities:

FSS Escrow Balance at June 30, 2018 3,360$ Deposits during fiscal year 2019 16,465 Payments/forfeitures during fiscal year 2019 (3,360) Ending Balance at June 30, 2019 16,465$

H – Long-Term Debt:

Mortgage Bond and Note Payable.

The Authority had a note payable to the Arizona Department of Housing of $486,851 at June 30, 2019 with annual principal reduction contributions of approximately zero over the next 3 months. The bond and note are secured by the land and buildings under signed Deeds of Trust.

There was no interest expense for the year ended June 30, 2019. There was no capitalized interest expense for the year ended June 30, 2019.

The outstanding balance of Notes Payable at June 30, 2019 was $486,851. The note matures on September 30, 2019 and is expected to be forgiven at that time as the Authority has met the provisions of compliance in providing low income housing.

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I – Schedule of Changes in Noncurrent Liabilities:

Current Portion

Long-term Portion Additions Reductions

Current Portion

Long-term Portion

Notes payable -$ 486,851$ -$ -$ -$ 486,851$ Accrued compensated absences 3,600 82,804 81,873 (91,913) 3,182 73,182 Net pension liability - 1,155,298 26,878 (85,648) - 1,096,528

3,600$ 1,724,953$ 108,751$ (177,561)$ 3,182$ 1,656,561$

June 30, 2018 June 30, 2019 June 30, 2019Balance at Year ended Balance at

J – Annual Contributions by Federal Agencies:

Annual Contributions Contract – Pursuant to the Annual Contributions Contract, HUD contributes an operating subsidy approved in the operating budget under the Annual Contributions Contract. HUD operating subsidy contributions for the year ended June 30, 2019 were $659,960. HUD also contributed additional funds for modernization and operations in the amount of $204,088 for soft costs for the year ended June 30, 2019.

Annual Contributions Contract – The Section 8 Housing Choice Voucher program provides housing assistance payments to private owners of residential units on behalf of eligible low or very low-income families. The program payments cover the difference between the maximum rental on a dwelling unit and the amount of rent contribution by a participating family. HUD also funds related administrative expenses. HUD contributions for the year ended June 30, 2019 were $3,470,600.

K – Pensions and Other Postemployment Benefits: The Authority contributes to the Arizona State Retirement System plan described below. ASRS is a component unit of the State of Arizona. At June 30, 2019 the Authority reported the following amounts related to pensions for this plan.

Statement of Net Position and Statement of Activities Business-Type Activities Net pension liabilities 1,096,528 Deferred outflows of resources 180,085 Deferred inflows of resources 141,058 Pension expense 22,768

The Authority’s accrued payroll and employee benefits includes $2,861 of outstanding pension amounts payable to all plans for the year ended June 30, 2019. The OPEB plans are not described due to their relative insignificance to the Authority’s financial statements. Arizona State Retirement System

21


NOTES TO BASIC FINANCIAL STATEMENTS

JUNE 30, 2019

Plan Description: Authority employees participate in the Arizona State Retirement System (ASRS). The ASRS administers a cost-sharing multiple-employer defined benefit pension plan. The Arizona State Retirement System Board governs the ASRS according to the provisions of A.R.S. Title 38, Chapter 5, Articles 2 and 2.1. The ASRS issues a publicly available financial report that includes its financial statements and required supplementary information. The report is available on its Web site at www.azasrs.gov. Benefits Provided: The ASRS provides retirement and survivor benefits. State statute establishes benefit terms. Retirement benefits are calculated on the basis of age, average monthly compensation, and service credit as follows:

Retirement Initial Membership Date: Before July 1, 2011 On or after July 1, 2011

Years of Service and age required to receive benefit

Sum of years and age equals 80 30 years age 55 10 years age 62 25 years age 60 5 years age 50* 10 years age 62

any years age 65 5 years age 50* any years age 65

Final average salary is based on

Highest 36 months of last 120 months Highest 60 months of last 120 months

Benefit percent per year of service

2.1% to 2.3% 2.1% to 2.3%

*With actuarially reduced benefits. Retirement benefits for members who joined the ASRS prior to September 13, 2013, are subject to automatic cost-of-living adjustments based on excess investment earnings. Members with a membership date on or after September 13, 2013, are not eligible for cost-of-living adjustments. Survivor benefits are payable upon a member’s death. For retired members, the survivor benefit is determined by the retirement option chosen. For all other members, the beneficiary is entitled to the member’s account balance that includes the member’s contributions and employer’s contributions, plus interest earned. Contributions: In accordance with state statutes, annual actuarial valuations determine active member and employer contribution requirements. The combined active member and employer contribution rates are expected to finance the costs of benefits employees earn during the year, with and additional amount to finance any unfunded accrued liability. For the year ended June 30, 2019, active ASRS members were required by statute to contribute at the actuarially determined rate of 11.64 percent of the members’ annual covered payroll, and the Authority was required by statute to contribute at the actuarially determined rate of 11.18 percent of the active members’ annual covered payroll. The Authority’s contributions to the pension plan for the year ended June 30, 2019 were $74,175. Liability: At June 30, 2019, the Authority reported the following liability for its proportionate share of the ASRS’ net pension liability.

ASRS Net Pension Liability Pension $ 1,096,528

22

http://www.azasrs.gov/


NOTES TO BASIC FINANCIAL STATEMENTS

JUNE 30, 2019

The net pension liability was measured as of June 30, 2018. The total pension liability used to calculate the net pension liability was determined using update procedures to roll forward the total pension liability from an actuarial valuation as of June 30, 2017, to the measurement date of June 30, 2018. The total liabilities as of June 30, 2018 reflect changes in actuarial assumptions based on the results of an actuarial experience study for the 5-year period ended Jun 30, 2016, including decreasing the discount rate from 8 percent to 7.5 percent, changing the projected salary increased from 3-6.75 percent to 2.7-7.2 percent, decreasing the inflation rate from 3 percent to 2.3 percent, and changing the mortality rates. The Authority is a departmental unit of Pinal County, and as such, shares in the reported liability for the County. The County’s proportion of the net pension liability was based on the County’s actual contributions to the plan relative to the total of all participating employers’ contributions for the year ended June 30, 2018. The County’s proportion measured as of June 30, 2018, was 0.7020 percent, which was an increase of 0.0398 percent from its proportion measured as of June 30, 2017. The Authority’s reported a liability at June 30, 2018, decreased by $58,770 from the Authority’s prior year liability of $1,155,298 because of changes in the ASRS’ net pension liability and the County’s proportionate share of that liability. The ASRS’ publicly available financial report provides details on the changes in the net pension liability. Pension expense and deferred outflows/inflows of resources: For the year ended June 30, 2019, the Authority recognized pension expense for ASRS of $22,768. At June 30, 2019, the Authority reported deferred outflows of resources and deferred inflows of resources related to pensions from the following sources:

ASRS Deferred Outflow Deferred Inflow of Resources of Resources

Difference between expected and actual experience $ 30,208 $ 6,045 Changes of assumptions or other inputs 29,016 97,222 Net Difference between projected and actual earnings on plan investments - 26,369 Changes in proportion and differences between Authority contributions and proportionate share of contributions 46,686 11,422 Authority contributions subsequent to the measurement date 74,175 - Total $ 180,085 $ 141,058

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The $74,175 reported as deferred outflows of resources related to ASRS pensions resulting from county contributions subsequent to the measurement date will be recognized as a reduction of the net pension liability in the year ending June 30, 2020. Other amounts reported as deferred outflows of resources and deferred inflows of resources related to ASRS pensions will be recognized in pension expense as follows:

Year ending June 30 2020 $ 22,245 2021 (5,567) 2022 (40,000) 2023 (11,826)

Actuarial Assumptions: The significant actuarial assumptions used to measure the total pension liability are as follows:

ASRS Actuarial valuation date June 30, 2017 Actuarial roll forward date June 30, 2018 Actuarial cost method Entry age normal Investment rate of return 7.5% Projected salary increases 2.7-7.2% for pensions/not applicable for OPEB Inflation 2.3% Permanent benefit increase Included for pensions/not applicable for OPEB Mortality rates 2017 SRA Scale U-MP for pension and health

insurance premium benefit Recovery rates 2012 GLDT for long-term disability Healthcare cost trend rate Not applicable

Actuarial assumptions used in the June 30, 2017, valuation were based on the results of an actuarial experience study for the 5-year period ended June 30, 2016.

The long-term expected rate of return on ASRS pension plan investments was determined to be 7.5 percent using a building-block method in which best-estimate ranges of expected future real rates of return (expected returns, net of pension plan investment expense and inflation) are developed for each major asset class. These ranges are combined to produce the long-term expected rate of return by weighing the expected future real rates of return by the target asset allocation percentage and by adding expected inflation. The target allocation and best estimates of geometric real rates of return for each major asset class are summarized in the following table:

24



ASRS

Asset Class Target

Allocation Long-term expected

geometric real rate of return Equity 50% 5.50% Fixed Income 30% 3.83% Real Estate 20% 5.85% Total 100%

Discount Rate: At June 30, 2018, the discount rate used to measure the ASRS total pension liability was 7.5 percent, which was a decrease of 0.5 from the discount rate used as of June 30, 2017. The projection of cash flows used to determine the discount rate assumed that contributions from participating employers will be made based on the actuarially determined rates based on the ASRS Board’s funding policy, which establishes the contractually required rate under Arizona statute. Based on those assumptions, the pension plan’s fiduciary net position was projected to be available to make all projected future benefit payments of current plan members. Therefore, the long-term expected rate of return on pension plan investments was applied to all periods of projected benefit payments to determine the total pension liability.

Sensitivity of the Authority’s proportionate share of the ASRS net pension liability to changes in the discount rate: The following table presents the Authority’s proportionate share of the net pension liability calculated using the discount rate of 7.5 percent, as well as what the Authority’s proportionate share of the net pensions liability would be if it were calculated using a discount rate that is 1 percentage point lower (6.5 percent) or 1 percentage point higher (8.5 percent) that the current rate:

ASRS 1% Decrease

Current Discount Rate 1% Increase

(6.5%) (7.5%) (8.5%) Authority's proportionate share of net pension liability $ 1,563,126 $ 1,096,528 $ 706,693

Pension plan fiduciary net position: Detailed information about the pension plan’s fiduciary net position is available in the separately issued ASRS financial report.

L – Economic Dependency: The Authority receives approximately 92% of its revenues from HUD. If the amount of revenues received from HUD falls below critical levels, the Authority’s reserves could be adversely affected.

M – Contingencies: The Authority is subject to possible examinations made by Federal and State authorities who determine compliance with terms, conditions, laws and regulations governing other grants given to the Authority in the current and prior years. There were no such examinations for the year ended June 30, 2019.

N – Leasing Activities: The Authority is the lessor of dwelling units mainly to low-income residents. The rents under the leases are determined generally by the resident’s income as adjusted for eligible

25



deductions regulated by HUD, although the resident may opt for a flat rent. Leases may be cancelled by the lessee at any time. The Authority may cancel the lease only for cause.

Revenues associated with these leases are recorded in the basic financial statements and schedules as “Rental Revenue”. Rental Revenue per dwelling unit generally remains consistent from year to year, but is affected by general economic conditions which impact personal income and local job availability.

O – Decrease in Net Position: The decrease in net position is expected to be absorbed through operations in subsequent fiscal years, assisted by transfers from various programs. No fund deficit is expected as a result of the current year loss.

P – Deferred Inflow of Resources, Other: The deferred inflow of resources, other consists of prepaid rents from tenants in the Business Activities program.

Q – Related Party Transactions: Pinal County, Arizona is a related party of the Authority. The County contributed to employee salary and benefits which totaled $48,909 and to services and supplies which totaled $51,630 for a total contribution of $100,439 during the fiscal year ended June 30, 2019. These expenses have not been included in the Authority’s financial statements.

R – Other Revenue: The Housing Authority recognized $180,997 during 2019 for receipts collected during fiscal years 2016 through 2019, but not previously recognized, as program income. This program income was generated as program participants for the NSP3 program did not meet the period of affordability. During 2019, it was determined that the authority was able to keep the funds.

S – Subsequent Events: In preparing these financial statements, the Authority has evaluated events and transactions for potential recognition for disclosure through September 26, 2019, the date the financial statements were available to be issued. The authority recognizes that the note payable to the Arizona Department of Housing of $486,851, referenced in note I, will reach maturity on September 30, 2019, at which time it is expected to be forgiven in accordance with the loan agreement.

Fiscal Year Amount Received 2016 $ 31,878.00 2017 $ 95,342.05 2018 $ 4,078.89 2019 $ 49,698.00

TOTAL $ 180,996.94

26

SUPPLEMENTAL INFORMATION

27

FDS Section 8Line Public Ross Rental CDBGItem Housing Grant Vouchers NSP III Business Combined

Acct # Account Description14.850 & 14.872 14.870 14.871 14.218 Activities Balance

ASSETSCurrent AssetsCash:

111 Cash - Unrestricted 220,284$ 791$ 77,585$ - 167,188$ 465,848$ 113 Cash - Other Restricted 74,046 - 22,483 180,997 - 277,526 114 Cash - Tenant Security Deposits 27,505 - - - 800 28,305 115 Cash - Restricted for Payment of Current Liabilities 40,839 - 34,435 - 256 75,530 100 Total Cash 362,674 791 134,503 180,997 168,244 847,209

Receivables:122 Accounts Receivable - HUD Other Projects - 11,670 - - - 11,670 124 Accounts Recevable - Other Government 139 - 7,611 - - 7,750 125 Accounts Receivable - Miscellaneous 9,096 - - - 500 9,596 126 Accounts Recevable - Tenants 4,479 - - - - 4,479

126.1 Allowance for Doubtful Accounts- Tenants - - - - - - 126.2 Allowance for Doubtful Accounts - Other - - (7,611) - - (7,611) 128 Fraud Recovery - - 87,104 - - 87,104

128.1 Allowance for Doubtful Accounts - Fraud - - (87,104) - - (87,104) 120 Total Receivables, net of allowances for -

doubtful accounts 13,714 11,670 - - 500 25,884

Current Investments:142 Prepaid Expenses and Other Assets 38,882 - - - - 38,882 143 Inventories 58,512 - - - - 58,512 144 Inter-Program Due From 9,725 - - - - 9,725 *150 Total Current Assets 483,507 12,461 134,503 180,997 168,744 980,212

Noncurrent AssetsCapital Assets:

161 Land 426,628 - - - - 426,628 162 Buildings 10,557,330 - - - 480,905 11,038,235 164 Furniture, Equipment & Machinery - Admin 175,926 8,036 10,117 - - 194,079 165 Leasehold Improvements 1,852,910 - - - - 1,852,910 166 Accumulated Depreciation (7,983,774) (909) (10,117) - (218,647) (8,213,447) 168 Infrastructure 245,970 - - - - 245,970

160Total Capital Assets, Net of Accumulated Depreciation 5,274,990 7,127 - - 262,258 5,544,375

200 Deferred Outflow of Resources - Pensions 124,259 - 55,826 - - 180,085

171Notes, Loans and Mortgages Receivable-Non-Current - - - - -

290 TOTAL ASSETS 5,882,756$ 19,588$ 190,329$ 180,997 431,002$ 6,704,672$

LIABILITIES AND NET ASSETSLIABILITIESCurrent Liabilities:

312 Accounts Payable 16,868$ -$ 6,806$ - 227$ 23,901$ 321 Accrued Wages and Payroll Taxes 21,646 2,736 10,307 - 29 34,718 322 Accrued Compensated Absences - Current 2,325 - 857 - - 3,182 341 Tenant Security Deposits 27,355 - - - 800 28,155 342 Unearned Revenue - - - - - 345 FSS Escrow Liability - - 16,465 - - 16,465 347 Inter-Program Due To - 9,725 - - - 9,725 *310 Total Current Liabilities 68,194 12,461 34,435 - 1,056 116,146

Noncurrent Liabilities:351 Notes Payable - - - - 486,851 486,851 357 Net Pension Liability 756,604 - 339,924 - - 1,096,528 400 Deferred Inflow of Resources - Pensions 97,330 - 43,728 - 141,058 354 Accrued Compensated Absences - Non Current 53,472 - 19,710 - - 73,182 350 Total Noncurrent Liabilities 907,406 - 403,362 - 486,851 1,797,619 300 TOTAL LIABILITIES 975,600 12,461 437,797 - 487,907 1,913,765

NET ASSETS:508.4 Invested in Capital Assets, Net of Related Debt 5,274,990 7,127 - - (224,593) 5,057,524 511.4 Restricted Net Assets 115,035 - 22,483 180,997 256 318,771 512.4 Unrestricted Net Assets (482,869) - (269,951) - 167,432 (585,388) 513 TOTAL NET ASSETS 4,907,156 7,127 (247,468) 180,997 (56,905) 4,790,907 600 TOTAL LIABILITIES AND NET ASSETS 5,882,756$ 19,588$ 190,329 180,997 431,002$ 6,704,672$

* Not included on the Statement of Net Assets

PINAL COUNTY HOUSING ANDCOMMUNITY DEVELOPMENT DEPARTMENT

Financial Data Schedule Combining Statement of Net AssetsAs of June 30, 2019

28

FDS Section 8Line ROSS Rental CDBGItem Grant Vouchers NSP III Business Combined

Acct # Account Description 14.850 14.872 14.870 14.871 14.218 Activities BalanceREVENUETenant Revenue:

70300 Net Tenant Rental Revenue 174,147 -$ -$ -$ - 12,583 186,730$ 70400 Tenant Revenue - Other 21,063 - - - - 647 21,710 70500 Total Tenant Revenue 195,210 - - - 13,230 208,440 70600 HUD PHA Operating Grants 659,960 204,088 80,542 3,470,600 - - 4,415,190 70610 Capital Grants - - - - - - - 70700 Total Fee Revenue 659,960 204,088 80,542 3,470,600 - - 4,415,190 71100 Investment Income - Unrestricted 22 - - - - - 22 71400 Fraud Recovery - - - 3,060 - - 3,060 71500 Other Revenue 25,563 - - 19,163 180,997 - 225,723 71600 Gain or Loss on Sale of Capital Assets - - - 80,740 80,740 72000 Investment Income - Restricted - - - - - - - 70000 TOTAL REVENUE 880,755 204,088 80,542 3,492,823 180,997 93,970 4,933,175

EXPENSESAdministrative:

91100 Administrative Salaries 193,409 - 41,977 174,360 - 1,556 411,302 91200 Auditing Fees 10,596 - - 6,404 - - 17,000 91310 Book-keeping Fee - - - - - - - 91500 Employee Benefit Contributions - Admin 70,255 - 11,711 63,141 - - 145,107 91600 Office Expenses 6,381 - 2,186 7,306 - 1,293 17,166 91800 Travel 137 - 3,397 131 - - 3,665 91810 Allocated Overhead - - - - - - 91900 Other 8,324 - 10,123 15,910 - - 34,357 91000 Total Administrative Expenses 289,102 - 69,394 267,252 - 2,849 628,597

Tenant Services:92400 Tenant Services - Other - - 2,160 - - 100 2,260 92500 Total Tenant Services - - 2,160 - 100 2,260

Utilities:93100 Water 22,318 - - - - 2,534 24,852 93200 Electricity 7,254 - - - - 25 7,279 93300 Gas - - - - - - - 93000 Total Utilities 29,572 - - - - 2,559 32,131

Ordinary Maintenance & Operation94100 Labor 157,228 - - - - 1,803 159,031 94200 Materials and Other 31,866 - - - - 713 32,579 94300 Contracts 167,847 - - - - 2,119 169,966 94500 Employee Benefit Contributions - Maint 40,927 - - - - - 40,927 94000 Total Maintenance & Operation 397,868 - - - - 4,635 402,503

General Expenses:96110 Property Insurance 83,300 - - - - - 83,300 96130 Workmen's Compensation 5,651 - 71 583 - - 6,305 96100 Total Insurance Premium 88,951 - 71 583 - - 89,605 96200 Other General Expenses 96,878 - - 2,743 - - 99,621 96210 Compensated Absences 69,646 - 881 21,386 - - 91,913 96400 Bad Debts - Tenant Rents 10,079 - - - - - 10,079 96600 Bad Debts - Other - - - - - 1,752 1,752 96000 Total Other General Expenses 176,603 - 881 24,129 - 1,752 203,365

96700 Interest Expense and Amortization Cos - - - - - 96900 TOTAL OPERATING EXPENSES 982,096 - 72,506 291,964 - 11,895 1,358,461

Other Expenses:97100 Extraordinary Maintenance - - - - - - -

97300-010 Housing Assistance Payments - - - 3,010,853 - - 3,010,853 97300-041 Portability-Out - - - 29,702 - - 29,702 97300-050 All Other - - - 135,168 - - 135,168

97350 HAP Portability-In - - - 20,652 - - 20,652 97400 Depreciation Expense 360,797 - 909 - - 14,144 375,850 90000 TOTAL EXPENSES 1,342,893 - 73,415 3,488,339 - 26,039 4,930,686

Other Financing Sources (Uses)10010 Operating Transfer In 204,088 - - - - - 204,088 10020 Operating Transfer Out - (204,088) - - - - (204,088) 10100 Total Other Financing Sources (Uses) 204,088 (204,088) - - - - -

10000 Excess (Deficiency) of Total Revenue Over (Under) Expenses (258,050) - 7,127 4,484 180,997 67,931 2,489

11030 Net Assets at Beginning of Year 5,165,206 - - (251,952) - (124,836) 4,788,418 11040 Transfers and Adjustments - - - - - -

Net Assets at End of Year 4,907,156$ 7,127$ (247,468)$ 180,997 (56,905)$ 4,790,907$

Public Housing

PINAL COUNTY HOUSING AND COMMUNITYDEVELOPMENT DEPARTMENT

Financial Data Schedule Combining Statement of ActivitiesFor the Year Ended June 30, 2019

Low Rent

29

Federal Grantor:

CFDA Number Program TitlePass Through

EntityFederal

Expenditures

U.S. Department of Housing and Urban Development14.870 Resident Opportunity and Supportive Services NA 80,542$ 14.850 Low Rent Public Housing NA 659,960 14.872 Capital Fund Program NA 204,088

Housing Choice Voucher Cluster14.871 Housing Choice Voucher Program NA 3,470,600 14.871 Housing Choice Voucher - Pass thru Other PHA's 20,652

Total Housing Choice Voucher Cluster 3,491,252

Total U.S. Department of HUD 4,435,842

Total Federal Awards Expenditures 4,435,842$

Notes to the Schedule of Expenditures of Federal Awards

A – Basis of Accounting: This schedule is prepared on the accrual basis of accounting.

B – Basis of Presentation: The accompanying Schedule of Federal Awards (the Schedule) includes the federal grant activity of the Authority under programs of the federal government for the year ended June 30, 2018. 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”. Because the Schedule presents only a selected portion of the operations of the Authority, it is not intended to and does not present the financial position, changes in net position or cash flows of the Authority.

C – Reconciliation of Total Federal Awards Expenditures to Financial Data Schedule:

FDS Line 70600 HUD PHA Grants 4,211,102$ FDS Line 70610 Capital Grants 204,088 FDS Line 97350 HCVP other income 20,652

4,435,842$

D – Public Housing Capital Fund Detail by Grant Year

Grant NumberCFDA

Number Total GrantPrior year

ExpendituresCurrent Year Expenditures

Remaining Grant

AZ20P010501-17 14.872 215,640$ 146,096$ 69,544$ -$ AZ20P010501-18 14.872 335,059$ 50,038$ 134,544$ 150,477$ TOTAL 550,699$ 196,134$ 204,088$ 150,477$

30


SUPPLEMENTAL INFORMATION JUNE 30, 2019

Schedule of Proportionate Share of Net Pension Liability

Arizona State Retirement System

2019 2018 2017 2016 2015 Through(2018) (2017) (2016) (2015) 2009

Authority's proportion of the net pension liability 0.01% 0.01% 0.01% 0.01% InformationAuthority's proportionate share of the net pension liability 1,096,528$ 1,155,298$ 1,222,935$ 1,344,097$ not availableAuthority's covered-employee payroll 663,432$ 690,915$ 664,952$ 794,982$ Authority's proportionate share of the net pension liability as a percentage of its covered-employee payroll 165.28% 167.21% 183.91% 169.07%Plan fiduciary net position as a percentage of the total pension liability 73.40% 69.92% 67.06% 68.35%

Reporting Fiscal Year(Measurement Date)

Schedule of Authority Pension Contributions

Arizona State Retirement System2014 Through

2019 2018 2017 2016 2015 2009

Statutorily required contribution 78,285$ 83,582$ 79,317$ 76,270$ 92,218$ InformationAuthority's contribution in relation to the not available statutorily required contribution 78,285 83,582 79,317 76,270 92,218 Authority's contribution deficiency (excess) - - -$ -$ -$ Authority's covered-employee payroll 663,432$ 726,800$ 690,915$ 664,952$ 794,982$ Authority's contributions as a percentage of covered employee payroll 11.80% 11.50% 11.48% 11.47% 11.60%

Reporting Fiscal Year

31

SINGLE AUDIT INFORMATION

32


www.B2aCPA.com

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


We have audited, in accordance with the auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standardsissued by the Comptroller General of the United States, the financial statements of Pinal County Housing Dept (the Authority), which comprise the Statements of Net Position as June 30, 2019, and the related Statements of Revenues, Expenses and Changes in Net Position, and Cash Flows for the years then ended, and the related notes to the financial statements, and have issued our report thereon dated September 26, 2019.

Internal Control Over Financial ReportingIn planning and performing our audit of the financial statements, we considered the Authority’s internal control over financial reporting (internal control) to determine the audit procedures that are appropriate in the circumstances for the purpose of expressing our opinion on the financial statements, but not for the purpose of expressing an opinion on the effectiveness of the Authority’s internal control. Accordingly, we do not express an opinion on the effectiveness of the Authority’s internal control.

Our consideration of internal control was for the limited purpose described in the preceding paragraph and was not designed to identify all deficiencies in internal control that might be material weaknesses or significant deficiencies and therefore, material weaknesses or significant deficiencies may exist that were not identified. However, as described in the accompanying schedule of findings, questioned costs, and recommendations, we identified certain deficiencies in internal control that we consider to be material weaknesses and significant deficiencies.

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 and correct, misstatements on a timely basis. A material weakness is a deficiency, or a combination of deficiencies, in internal control such that there is a reasonable possibility that a material misstatement of the entity’s financial statements will not be prevented, or detected and corrected on a timely basis. We consider the deficiencies described in the accompanying schedule of findings and responses to be material weaknesses.

A significant deficiency is a deficiency, or a combination of deficiencies, in internal control that is less severe than a material weakness, yet important enough to merit attention by those charged with governance. We consider the deficiencies described in the accompany schedule of findings, questioned costs, and recommendations to be significant deficiencies.

33


www.B2aCPA.com

Compliance and Other MattersAs part of obtaining reasonable assurance about whether the Authority’s financial statements are free from material misstatement, we 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 statement amounts. However, providing an opinion on compliance with those provisions was not an objective of our audit, and accordingly, we do not express such an opinion. The results of our tests disclosed no instances of noncompliance or other matters that are required to be reported under Government Auditing Standards.

Purpose of this ReportThe purpose of this report is solely to describe the scope of our testing of internal control and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the entity’s internal control or on compliance. This report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the entity’s internal control and compliance. Accordingly, this communication is not suitable for any other purpose.

BB2a, CPAs B2a, CPAsBountiful, UtahSeptember 26, 2019

34


www.B2aCPA.com

INDEPENDENT AUDITORS’ REPORT ON COMPLIANCE FOR EACH MAJOR PROGRAM AND ON INTERNAL CONTROL OVER COMPLIANCE REQUIRED BY THE UNIFORM

GUIDANCE


Report on Compliance for Each Major Federal ProgramWe have audited the Pinal County Housing Dept’s (the Authority) compliance with the types of compliance requirements described in the OMB Compliance Supplement that could have a direct and material effect on each of the Authority’s major federal programs for the year ended June 30, 2019. the Authority’s major federal programs are identified in the summary of auditors’ results section of the accompanying schedule of findings and questioned costs.

Management’s Responsibility

Management is responsible for compliance with the requirements of laws, regulations, contracts, and grants applicable to its federal programs.

Auditors’ Responsibility

Our responsibility is to express an opinion on compliance for each of the Authority’s major federal programs based on our audit of the types of compliance requirements referred to above. We conducted our 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 Compliance Supplement, Audits of States, Local Governments, and Non-Profit Organizations. Those standards and OMB Compliance Supplementrequire that we plan and perform the audit 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 the Authority’s compliance with those requirements and performing such other procedures as we considered necessary in the circumstances.

We believe that our audit provides a reasonable basis for our opinion on compliance for each major federal program. However, our audit does not provide a legal determination of the Authority’scompliance.

Opinion on Each Major Federal Program

In our opinion, except for the finding noted in 2018-01, the Authority complied, in all material respects, with the types of compliance requirements referred to above that could have a direct and material effect on each of its major federal programs for the year ended June 30, 2019.

35

Other Matters

The results of our auditing procedures disclosed no instances of noncompliance, which are required to be reported in accordance with OMB Compliance Supplement.

Report on Internal Control Over ComplianceManagement of the Authority is responsible for establishing and maintaining effective internal control over compliance with the types of compliance requirements referred to above. In planning and performing our audit of compliance, we considered the Authority’s internal control over compliance with the types of requirements that could have a direct and material effect on each major federal program to determine the auditing procedures that are appropriate in the circumstances for the purpose of expressing an opinion on compliance for each major federal program and to test and report on internal control over compliance in accordance with OMB Compliance Supplement, but not for the purpose of expressing an opinion on the effectiveness of internal control over compliance. Accordingly, we do not express an opinion on the effectiveness of the Authority’s internal control over compliance.

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 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. A significant deficiency in internal control over compliance is a deficiency, or a combination of deficiencies, in internal control over compliance with a type of compliance requirement of a federal program that is less severe than a materialweakness in internal control over compliance, yet important enough to merit attention by those charged with governance.

Our 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 material weaknesses or significant deficiencies. We identified one finding that we consider to be a significant deficiency reported as finding 2018-01. However, material weaknesses may exist that have not been identified.

Purpose of this ReportThe purpose of this report on internal control over compliance is solely to describe the scope of our testing of internal control over compliance and the results of that testing based on the requirements of OMB Compliance Supplement. Accordingly, this report is not suitable for any other purpose.

B2a, CPAsBountiful, UtahSeptember 26, 2019

36

PINAL COUNTY HOUISNG DEPARTENTCasa Grande, Arizona

Schedule of Findings and Questioned CostsFor the year ended June 30, 2019

Financial Statements

Type of auditor’s report issued: Unmodified

Internal control over financial reporting:Material weakness(es) identified? Yes No XSignificant Deficiencies(ies) identified that are considered to be material weaknesses? Yes None Reported

Non compliance material to financial statements noted? Yes No X

Federal Awards

Internal Control over major programs:Material weakness(es) identified? Yes No XSignificant Deficiencies(ies) identified that are considered to be material weaknesses? Yes No X

Type of Auditor’s report issued on compliance for major programs: Modified

Any audit findings disclosed that are required to be reported in accordance with Compliance Standards? Yes No X

Identification of major programs:CFDA Number(s) Name of Federal Program or Cluster

14.871 Section 8 Housing Choice Vouchers

Dollar threshold used to distinguish between type A and type B programs: $750,000

Auditee qualified as low-risk auditee? Yes X No

37


Schedule of Findings and Questioned CostsFor the year ended June 30, 2019

Internal Control Over Financial Reporting

There were no findings to report for the year ended June 30, 2019.

Compliance

Finding 2018-01 – Section-8 Tenant Files


38


Summary Schedule of Prior Audit FindingsFor the year ended June 30, 2018

Internal Control Over Financial Reporting


Compliance

Finding 2018-01 – Section-8 Tenant Files

Condition: We reviewed 30 tenant files and found the following issues:o One tenant annual certification had not been complete or documented for the current

year, yet the information had been entered into the PIC system using the prior yearinformation.

o One tenant file had no evidence that an EIV system was used to verify tenant income.o Two tenant files did not have the Rent reasonableness in the current file to show it was

considered in the current year re-certification.

Criteria: Each tenant must have an annual certification documented to support the submission in the HUD PIC system. HYUD 24 CFR 908. Each certification is required to include an income verification in accordance with HUD 25 CFR 5.609 and a rent reasonableness determination in accordance with HUD 241 CFR 985 507.

Cause: There was significant turnover in the case workers during the year.

Effect: The Department was not in compliance with HUD requirements for annual tenant certifications.

Recommendation: The department should review it’s policies and procedures regarding management’s review of certifications specifically when there is new staff or staff turnover.

Status: Corrected

39

Civil Rights Certification

(Qualified PHAs)


0MB Approval No. 2577-0226 Expires 02/29/2016

Civil Rights Certification

Annual Certification and Board Resolution

Acting on behalf of the Board of Commissioners of the Public Housing Agency (PHA) listed below, as its Chairman or other authorized PHA official, I approve the submission of the 5-Year PHA Plan for the PHA of which this document is a part, and make the following certification and agreements with the Department of Housing and Urban Development (HUD) in connection with the submission of the public housing program of the agency and implementation thereof

The PHA certifies that it will carry out the public housing program of the agency in conformity with title VI of the Civil Rights Act of 1964, the Fair Housing Act, section 504 of the Rehabilitation Act of 1973, and title II of the Americans with Disabilities Act of 1990, and will affirmatively further fair housing by examining their

programs or proposed programs, identifying any impediments to fair housing choice within those program, addressing those impediments in a reasonable fashion in view of the resources available and working with local jurisdictions to implement any of the jurisdiction's initiatives to affirmatively further fair housing that require the PHA' s involvement and by maintaining records reflecting these analyses and actions.

PINAL COUNTY HOUSING AUTHORITY AZ010

PHAName PHA Number/HA Code

I hereby certify that all the information stated herein, as well as any information provided in the accompaniment herewith, is true and accurate. Warning: HUD will prosecute false claims and statements. Conviction may result in criminal and/or civil penalties. (18 U.S.C. 1001. 1010, 1012; 3J U.S.C. 3729. 3802)

Name of Authorized Official

Anthony Smith

Signature

Previous version is obsolete

Title

Chairman, Board of Supervisor

Date

Page I of I form HUD-50077-CR (2/2013)

Certification by State or Local

Official of PHA Plans Consistency with the Consolidated Plan or State Consolidated Plan

(AIIPHAs)

U. S Department of Housing and Urban Development


0MB No. 2577-0226

Expires 2/29/2016

Certification by State or Local Official of PHA Plans

Consistency with the Consolidated Plan or State Consolidated Plan

I, Andrew Rael

Official's Name

the Assistant Deputy Director of Programs Official's Title

certify that the 5-Year PHA Plan and/or Annual PHA Plan of the

Pinal County Housing Authority PHAName

is consistent with the Consolidated Plan or State Consolidated Plan and the Analysis of

Impediments (AI) to Fair Housing Choice of the

State of Arizona

Local Jurisdiction Name

pursuant to 24 CFR Part 91.

Provide a description of how the PHA Plan is consistent with the Consolidated Plan or State Consolidated Plan and the AI.

Pinal County Housing Authority's plan of restoring and increasing the supply of affordable housing; fostering a safe and decent living environment; promoting self-sufficiency; ensuring equal

appartµnjty and affirmatjyely tuctberjng taic bausjng· and staff development are cansjstent wjtb the Consolidated Plan the Al.

I hereby certify that all the information stated herein, as well as any information provided in the accompaniment herewith, is true and accurate. Warning: HUD will prosecute false claims and statements. Conviction may result in criminal and/or civil penalties, (18 U.S.C. 1001, JOJO, 1012; 31 U,S.C, 3729, 3802)


Andrew Rael

Signature

Page 1 of 1

Title

Assistant Deputy Director of Programs

Date

form HUD-50077-SL (12/2014)

Certification of Compliance with PHA Plans and Related Regulations

(Small PHAs)


0MB No. 2577-0226 Expires 02/29/2016

PHA Certifications of Compliance with the PHA Plans and Related Regulations

including Civil Rights and PHA Plan Elements that Have Changed

Acting on behalf of the Board of Commissioners of the Public Housing Agency (PHA) listed below, as its Chairman or other authorized PHA official if there is no Board of Commissioners, I approve the submission of the!:_ 5-Year and/or �Annual PHA Plan for the P HA fiscal year beginning 2020 , hereinafter referred to as" the Plan", of which this document is a part and make the following certifications and agreements with the Department of Housing and Urban Development (HUD) in connection with the submission of the Plan and implementation thereof

1. The Plan is consistent with the applicable comprehensive housing affordability strategy (or any plan incorporating suchstrategy) for the jurisdiction in which the PHA is located.

2. The Plan contains a certification by the appropriate State or local officials that the Plan is consistent with the applicableConsolidated Plan, which includes a certification that requires the preparation of an Analysis of Impediments to Fair HousingChoice, for the PHA's jurisdiction and a description of the manner in which the PHA Plan is consistent with the applicableConsolidated Plan.

3. The PHA has established a Resident Advisory Board or Boards, the membership of which represents the residents assisted bythe PHA, consulted with this Board or Boards in developing the Plan, and considered the recommendations of the Board orBoards (24 CFR 903.13). The PHA has included in the Plan submission a copy of the recommendations made by theResident Advisory Board or Boards and a description of the manner in which the Plan addresses these recommendations.

4. The PHA certifies that the following policies, programs, and plan components have been revised since submission of its lastAnnual PHA Plan (check all policies, programs, and components that have been changed):903.7a Housing Needs903.7b Deconcentration and Other Policies Governing Eligibility, Selection, Occupancy, and Admissions Policies903.7c Financial Resources903.7d Rent Determination Policies903.7h Demolition and Disposition903. 7k Homeownership Programs903. 7r Additional Information

A. Progress in meeting 5-year mission and goalsB. Criteria for substantial deviation and significant amendmentsC. Other information requested by HUD

1. Resident Advisory Board consultation process_2. Membership of Resident Advisory Board

3. Resident membership on PHA governing boardThe PHA provides assurance as part of this certification that:

(i) The Resident Advisory Board had an opportunity to review and comment on the changes to the policies and programsbefore implementation by the PHA;

(ii) The changes were duly approved by the PHA Board of Directors (or similar governing body); and(iii) The revised policies and programs are available for review and inspection, at the principal office of the PHA during

normal business hours.

5. The PHA made the proposed Plan and all information relevant to the public hearing available for public inspection at least 45days before the hearing, published a notice that a hearing would be held and conducted a hearing to discuss the Plan andinvited public comment.

6. The PHA certifies that it will carry out the Plan in conformity with Title VI of the Civil Rights Act of 1964, the Fair HousingAct, section 504 of the Rehabilitation Act of 1973, and title II of the Americans with Disabilities Act of 1990.

7. The PHA will affirmatively further fair housing by examining their programs or proposed programs, identifying anyimpediments to fair housing choice within those programs, addressing those impediments in a reasonable fashion in view ofthe resources available and work with local jurisdictions to implement any of the jurisdiction's initiatives to affirmativelyfurther fair housing that require the PHA's involvement and by maintaining records reflecting these analyses and actions.

8. For a PHA Plan that includes a policy for site based waiting lists:• The PHA regularly submits required data to HUD's 50058 PIC/IMS Module in an accurate, complete and timely manner

(as specified in PIH Notice 2010-25);

Page I of2 form HUD-50077-CRT-SM (12/2014)

• The system of site-based waiting lists provides for full disclosure to each applicant in the selection of the development inwhich to reside, including basic information about available sites; and an estimate of the period of time the applicantwould likely have to wait to be admitted to units of different sizes and types at each site;

• Adoption of site-based waiting lists would not violate any court order or settlement agreement or be inconsistent with apending complaint brought by HUD;

• The PHA shall take reasonable measures to assure that such waiting list is consistent with affirmatively furthering fairhousing;

• The PHA provides for review of its site-based waiting list policy to determine if it is consistent with civil rights laws andcertifications, as specified in 24 CFR part 903. 7( c )( l ).

9. The PHA will comply with the prohibitions against discrimination on the basis of age pursuant to the Age Discrimination Actof 1975.

l 0. The PHA will comply with the Architectural Barriers Act of 1968 and 24 CFR Part 41, Policies and Procedures for theEnforcement of Standards and Requirements for Accessibility by the Physically Handicapped.

11. The PHA will comply with the requirements of section 3 of the Housing and Urban Development Act of 1968, EmploymentOpportunities for Low-or Very-Low Income Persons, and with its implementing regulation at 24 CFR Part 135.

12. The PHA will comply with acquisition and relocation requirements of the Uniform Relocation Assistance and Real PropertyAcquisition Policies Act of 1970 and implementing regulations at 49 CFR Part 24 as applicable.

13. The PHA will take appropriate affirmative action to award contracts to minority and women's business enterprises under 24CFR 5.105(a).

14. The PHA will provide the responsible entity or HUD any documentation that the responsible entity or HUD needs to carryout its review under the National Environmental Policy Act and other related authorities in accordance with 24 CFR Part 58or Part 50, respectively.

15. With respect to public housing the PHA will comply with Davis-Bacon or HUD determined wage rate requirements underSection 12 of the United States Housing Act of 1937 and the Contract Work Hours and Safety Standards Act.

16. The PHA will keep records in accordance with 24 CFR 85.20 and facilitate an effective audit to determine compliance withprogram requirements.

17. The PHA will comply with the Lead-Based Paint Poisoning Prevention Act, the Residential Lead-Based Paint HazardReduction Act of 1992, and 24 CFR Part 35.

18. The PHA will comply with the policies, guidelines, and requirements of 0MB Circular No. A-87 (Cost Principles for State,Local and Indian Tribal Governments), 2 CFR Part 225, and 24 CFR Part 85 (Administrative Requirements for Grants andCooperative Agreements to State, Local and Federally Recognized Indian Tribal Governments).

19. The PHA will undertake only activities and programs covered by the Plan in a manner consistent with its Plan and will utilizecovered grant funds only for activities that are approvable under the regulations and included in its Plan.

20. All attachments to the Plan have been and will continue to be available at all times and all locations that the PHA Plan isavailable for public inspection. All required supporting documents have been made available for public inspection along withthe Plan and additional requirements at the primary business office of the PHA and at all other times and locations identifiedby the PHA in its PHA Plan and will continue to be made available at least at the primary business office of the PHA.

21. The PHA certifies that it is in compliance with applicable Federal statutory and regulatory requirements, including theDeclaration ofTrust(s).

PINAL COUNTY HOUSING AUTHORITY AZ010

PHAName

X 5-Year PHA Plan for Fiscal Years 20 20 - 20 25

PHA Number/HA Code

Annual PHA Plan for Fiscal Year 20 20

I hereby certify that all the infonnation stated herein, as well as any infonnation provided in the accompaniment herewith, is true and accurate. Warning: HUD will prosecute false claims and statements. Conviction mav result in criminal and/or ci ii penalties. ( I 8 U .S.C. I 00 I. IO I 0. IO I 2; 3 I U.S.C. 3 729. 3802)


Anthony Smith

Signature

Title

Date

Page 2 of2

Chairman, Board of Supervisor

fonn HUD-50077-CRT-SM (12/2014)

Certification of Payments to Influence Federal Transactions

u . .>. Ut#J.li:lrlfllt#lll ur nuu::;mgand Urban DevelopmentOffice of Public and Indian Housing

Pinal County Housing Authority

Program/Activity Receiving Federal Grant Funding

Annual PHA Plan for Fiscal Year 2020-2021 and 5 Year Plan

The undersigned certifies, to the best of his or her knowledge and belief, that:

(1) No Federal appropriated funds have been paid or will bepaid, by or on behalf of the undersigned, to any person forinfluencing or attempting to influence an officer or employee ofan agency, a Member of Congress, an officer or employee ofCongress, or an employee of a Member of Congress in connection with the awarding of any Federal contract, the making of anyFederal grant, the making of any Federal loan, the entering intoof any cooperative agreement, and the extension, continuation,renewal, amendment, or modification of any Federal contract,grant, loan, or cooperative agreement.

(2) If any funds other than Federal appropriated funds havebeen paid or will be paid to any person for influencing orattempting to influence an officer or employee of an agency, aMember of Congress, an officer or employee of Congress, or anemployee of a Member of Congress in connection with thisFederal contract, grant, loan, or cooperative agreement, theundersigned shall complete and submit Standard Form-LLL,Disclosure Form to Report Lobbying, in accordance with itsinstructions.

(3) The undersigned shall require that the language of thiscertification be included in the award documents for all subawardsat all tiers (including subcontracts, subgrants, and contractsunder grants, loans, and cooperative agreements) and that allsub recipients shall certify and disclose accordingly.

This certification is a material representation of fact upon which reliance was placed when this transaction was made or entered into. Submission of this certification is a prerequisite for making or entering into this transaction imposed by Section 1352, Title 31, U.S. Code. Any person who fails to file the required certification shall be subject to a civil penalty of not less than $10,000 and not more than $100,000 for each such failure.

I hereby certify that all the information stated herein, as well as any information provided in the accompaniment herewith, is true and accurate. Warning: HUD will prosecute false claims and sta tements. Convict ion may result in criminal and/or civil penalties. (18 U.S.C. 1001, 1010, 1012; 31 U.S.C. 3729, 3802)

Name of Authorized Official Title

Adeline M. Allen Housing Director

Signawre Date (mmldd/yyyy)

Previous edition is obsolete form HUD 50071 (01/14) ref. Handbooks 7417.1, 7475.13, 7485.1, & 7485.3

Certification for a Drug-Free Workplace


Applicant Name

Pinal County Housing Authority

Program/Activity Receiving Federal Grant Funding

Annual PHA Plan for Fiscal Year 2020-2021 and 5 Year Plan

Acting on behalf of the above named Applicant as its Authorized Official, I make the following certifications and agreements to

the Department of Housing and Urban Development (HUD) regarding the sites listed below:

I certify that the above named Applicant will or will continue

to provide a drug-free workplace by:

a. Publishing a statement notifying employees that the un

lawful manufacture, distribution, dispensing, possession, or use

of a controlled substance is prohibited in the Applicant's work

place and specifying the actions that will be taken against employees for violation of such prohibition.

b. Establishing an on-going drug-free awareness program to

inform employees ---

(1) The dangers of drug abuse in the workplace;

(2) The Applicant's policy of maintaining a drug-freeworkplace;

(3) Any available drug counseling, rehabilitation, andemployee assistance programs; and

(4) The penalties that may be imposed upon employeesfor drug abuse violations occurring in the workplace.

c. Making it a requirement that each employee to be engaged

in the performance of the grant be given a copy of the statement required by paragraph a.;

d. Notifying the employee in the statement required by para

graph a. that, as a condition of employment under the grant, the

employee will ---

(1) Abide by the terms of the statement; and

(2) Notify the employer in writing of his or her convic

tion for a violation of a criminal drug statute occurring in the

workplace no later than five calendar days after such conviction;

e. Notifying the agency in writing, within ten calendar days

after receiving notice under subparagraph d.(2) from an em

ployee or otherwise receiving actual notice of such conviction. Employers of convicted employees must provide notice, includ

ing position title, to every grant officer or other designee on

whose grant activity the convicted employee was working,

unless the Federalagency has designated a central point for the

receipt of such notices. Notice shall include the identification

number(s) of each affected grant;

f. Taking one of the following actions, within 30 calendar

days of receiving notice under subparagraph d.(2), with respect

to any employee who is so convicted ---

(1) Taking appropriate personnel action against such an

employee, up to and including termination, consistent with the

requirements of the Rehabilitation Act of 1973, as amended; or

(2) Requiring such employee to participate satisfactorily in a drug abuse assistance or rehabilitation program ap

proved for such purposes by a Federal, State, or local health, law enforcement, or other appropriate agency;

g. Making a good faith effort to continue to maintain a drug

free workplace through implementation of paragraphs a. thru f.

2. Sites for Work Performance. The Applicant shall list ( on separate pages) the site(s) for the performance of work done in connection with theHUD funding of the program/activity shown above: Place of Performance shall include the street address, city, county, State, and zip code.Identify each sheet with the Applicant name and address and the program/activity receiving grant funding.)

Check here D if there are workplaces on file that are not identified on the attached sheets.

I hereby certify that all the information stated herein, as well as any information provided in the accompaniment herewith, is true and accurate.

Warning: HUD will prosecute false claims and statements. Conviction may result in criminal and/or civil penalties. (18 U.S.C. 1001, 1010, 1012; 31 U.S.C. 3729, 3802)


Adeline M. Allen

Signature

X

Title

Housing Director Date

form HUD-50070 (3/98) ref. Handbooks 7417.1, 7475.13, 7485.1 & .3

Pinal County Housing Authority 2020-2025 Five Year and ... · 5-Year PHA Plan U.S. Department of...

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