Report - Virginia Housing Trust Fund and Housing Partnership Revolving Fund (December 2021)
Summary
A December 2021 report by the Department of Housing and Community Development (DHCD) on the Virginia Housing Trust Fund and the Financial Status of the Virginia Housing Partnership Revolving Fund, addressed to the Governor, the Secretary of Commerce and Trade, the House Appropriations Committee and the Senate Finance and Appropriations Committee. It says § 36-150 of the Code of Virginia requires the annual report and that the document has two sections. Part I covers operation of the Trust Fund and Part II updates the financial status of the Revolving Fund. The Biennium Budget for 2020-2022 allocated $70,700,000 in the first year and $55,000,000 in the second year.
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Report to the Governor, the Secretary of
Commerce and Trade, the House
Appropriations Committee, and the Senate
Finance and Appropriations Committee
The Virginia Housing Trust Fund
and the
Financial Status of the Virginia Housing Partnership Revolving
Fund
____________________________________________________
Submitted by:
The Department of Housing and Community Development
December 2021
1
The Virginia Housing Trust Fund and the Financial Status of the Virginia Housing Partnership
Revolving Fund
Introduction
During its 2013 regular session, the General Assembly amended provisions of Chapter 9 of Title
36 of the Code of Virginia to provide statutory direction for the administration of the Virginia
Housing Trust Fund (VHTF). Item 108 G of the 2012 Appropriations Act established the Trust
Fund and provided an initial allocation of $8 million to become available in FY 2014. The 2013
statutory changes modified certain reporting requirements that originally applied to the former
Virginia Housing Partnership Revolving Fund. Effective July 1, 2013, § 36-150 of the Code of
Virginia required the Department of Housing and Community Development (DHCD) to report
annually on the Trust Fund and such other matters the Department may deem appropriate,
including the status of the former Housing Partnership Revolving Fund. Designated recipients of
the report include the Governor, Secretary of Commerce and Trade and the Chairs of the House
Appropriations and the Senate Finance and Appropriations Committees.
In accordance with the requirement of § 36-150 of the Code of Virginia, DHCD presents the
following document, which includes two sections.1 Part I reviews recent activities associated
with the operation of the Housing Trust Fund during the period since the close of FY 2020 as
well as the impacts of funds allocated in 2020-2021. Part II updates information concerning the
financial status of the Virginia Housing Partnership Revolving Fund, presently administered by
Virginia Housing. The latter section continues the format used during previous years in
accordance with the former statute and incorporates materials provided by Virginia Housing’s
independent auditor, KPMG, LLP.
Part I: The Virginia Housing Trust Fund
Purpose and Background
The Biennium Budget for 2020-2022 (Special Session 1, 2021) allocated $70,700,000 in the first
year and $55,000,000 in the second year to fund activities through the Virginia Housing Trust
Fund. This is an increase from the 2018-2020 Biennium Budget, which allocated $11,000,000 in
the first year and $14,000,000 in the second year to support the activities of the VHTF.
At least 80 percent of the Fund is to be used for short, medium and long-term loans to reduce
the cost of homeownership and rental housing. Up to 20 percent of the Fund may be used to
provide grants for targeted efforts to reduce homelessness.
Pursuant to provisions included in the Biennium Budget related to the COVID 19 pandemic,
certain prescribed budget allocation requirements were allowed to be temporarily adjusted to
meet the needs of the pandemic. As such, the historic requirement that 80 percent of funds be
1
https://law.lis.virginia.gov/vacode/title36/chapter9/section36-150/
2
used for short, medium, and long-term loans to reduce the cost of homeownership and rental
housing was adjusted to 60 percent by the Board of Housing and Community Development. The
remaining 40 percent of the VHTF was permitted to be used to provide grants for targeted
efforts to reduce homelessness. This was an increase from 20 percent to address the needs of
the most vulnerable during the pandemic.
The entities charged with administering the VHTF—the Department of Housing and Community
Development (DHCD) and Virginia Housing (previously named Virginia Housing Development
Authority)—have extensive experience in implementing the activities needed to carry out the
provisions of the VHTF. Virginia Housing originates and services loans on a regular basis through
its bond and revenue programs. It also services loans made with HOME funds administered by
DHCD. Both agencies, which are overseen by boards subject to gubernatorial appointment,
have more than two decades of experience in developing housing policy and structuring and
implementing programmatic tools to operationalize those policies. DHCD and Virginia Housing
worked collaboratively to implement the provisions of the Virginia Housing Partnership
Revolving Fund, which was the predecessor to the VHTF. Both DHCD and Virginia Housing are
skilled at packaging affordable housing projects that include a range of funding sources in order
to leverage their resources. The budget language creating the VHTF identified leveraging as an
important component of its operation.
Input Into the Structure of the Housing Trust Fund
Significant stakeholder input was gathered leading up to the development of the initial Virginia
Housing Trust Fund (VHTF) framework. Building on this foundation input sessions were held in
March 2021 to gather feedback. Invitations were broadly extended to DHCD grantees,
partners, and the public, as well as posted on the department’s website. DHCD held virtual
input sessions due to Covid-19 restrictions. Sessions were organized by region, but open to all.
Input Sessions
Where When
Southwest/West Central March 8 , 2021
Central/Southside March 9, 2021
Northern/Valley March 10, 2021
Eastern/Hampton Roads March 11, 2021
In addition, Virginia Homeless Services input sessions were held in October 2021 where
attendees were asked for feedback specific to the Virginia Homeless Reduction Grants (funded
with Virginia Housing Trust Fund dollars).
3
Virginia Homeless Services: Input Sessions
Where When
Eastern/Hampton Roads October 13, 2021
Northern/Valley October 14, 2021
Central/Southside October 19, 2021
Southwest/West Central October 20, 2021
Parameters of the Housing Trust Fund
The 2012 Budget Bill (Special Session I) included language establishing the basic parameters for
the VHTF. These included guidance on the allocation of funds for grants and loans, a statement
describing the types of activities eligible for grants or loans, and a list of the types of
organizations eligible to receive program funds. The budget direction also stressed the
importance of considering opportunities for leveraging and providing flexibility in loan
products.
To implement the provisions of the Appropriations Act, DHCD proposed to continue to allocate
funds through the broad categories shown on the following table.
2021-22 Virginia Housing Trust Fund Allocation
Loans
Competitive Loan Pool $39,000,000
Vibrant Community Initiative $5,000,000
Grants
Homelessness Reduction Competitive
Grant Pool (including Petersburg Pilot $8,300,000
- Student Housing Stabilization)
Permanent Supportive Housing –
$500,000
Predevelopment Grants
Administration $2,200,000
Total $55,000,000
At the time of this report (December 2021), applications for the 2020-2021 VHTF competitive
loan pool and homeless reduction grants are being evaluated.
Affordable Housing Loan Program
At least 80 percent of the funds allocated to the VHTF must be used to provide loans that
reduce the costs of affordable rental housing and homeownership. Building on previous
4
experience with the VHTF and the Virginia Housing Partnership Fund, the housing agencies
have determined Virginia Housing will assist in providing the underwriting services needed to
implement the key provisions of loans made through this program. DHCD, with the
participation of Virginia Housing, will structure the design of the loan component with sufficient
flexibility to maximize the long-term affordability and sustainability of the housing projects
receiving assistance. They will also include provisions that encourage opportunities to include
project participation from other public and private funding sources.
The loan program will have two distinct components. A majority of the loans will be offered
through a competitive loan pool open to a variety of eligible projects accomplishing the VHTF’s
purposes.
Competitive Loan Pool
While the competitive loan pool will accommodate a wide array of possible projects, it will
acknowledge the direction of a number of gubernatorial and General Assembly initiatives as
well as the limited availability of funds by giving priority to demonstration projects that address
articulated state housing policies. Such policies include permanent supportive housing options
for persons with disabilities (including housing for people with serious mental illness and
funding that could aid the state response to the U.S. Department of Justice settlement) and
expanding permanent housing opportunities for persons experiencing homelessness. DHCD
uses a consolidated application process, which allows applicants to apply for four sources of
funding with one application. The Affordable and Special Needs Housing Consolidated
Application combines VHTF monies with Federal HOME and Federal Housing Trust Fund monies
as well as Housing Innovations in Energy Efficiency investments. DHCD conducted How-to-Apply
workshops for the Consolidated Application in the fall of 2020 and set proposal due dates for
October 31, 2021 and March 31, 2022.
Most of the funds in the Competitive Loan Pool will be used to provide low-interest loans that
are structured to meet the financing needs of specific projects. DHCD and Virginia Housing
anticipate that a majority of the loan pool will provide financial assistance for specific projects
that address the affordable rental housing needs of very low-income (household income at or
below 50 percent area median income or AMI) citizens, while giving priority to projects that
address critical housing needs mentioned in the previous paragraph as well as other areas of
need such as returning veterans. To assure the long-term viability of affordable rental projects,
the agencies will give priority consideration to projects that have an identified strategy for
financial sustainability, such as providing rental assistance to income-qualified tenants. In
keeping with the direction that the loans provide flexible financing, the agencies will set
repayment rates and terms for each individual loan from the VHTF. In addition, provisions of
the loan program will encourage applicants to pursue leveraged funds from other sources such
as the Low Income Housing Tax Credit (LIHTC) program and other federal and local housing
programs such as HOME and the Community Development Block Grant (CDBG) program.
5
DHCD will use a competitive process to select projects for funding. The maximum VHTF amount
available to a single project is capped at $700,000 for affordable housing projects and $900,000
for projects providing permanent supportive housing units. The criteria used to evaluate
projects for funding will include the following: (1) direct impact on one or more high priority
state housing policies; (2) leveraging; (3) affordability; (4) financial sustainability; (5) impact on
local housing needs; (6) feasibility, (7) readiness, (8) coordination of services and (9) the
applicant’s administrative capacity. DHCD will rank competitive project applications using a
standardized review with a 100-point scale. No project will be funded that scores below sixty
percent. DHCD will make funding offers to the highest scoring projects in descending order until
available funds are exhausted or all projects scoring above sixty percent have been funded.
Applicants may be asked to provide additional information to finalize funding offers. Property
funded through a VHTF loan will be subject to a lien intended to ensure its continued use as
targeted, affordable housing during a specified period. The outstanding balance on the loan will
be due in the event the affordability period is not met.
Homeless Reduction Grant Program
Up to 20 percent of the funds allocated to the VHTF are permitted for the reduction of
homelessness. The Homeless Reduction Grant funds may be used for temporary rental
assistance, not to exceed one year, housing stabilization services in permanent supportive
housing for the chronically homeless, and predevelopment assistance for permanent
supportive housing for the chronically homeless. In accordance with budget language, priority
consideration will be given to efforts to reduce the number of homeless youth and families.
DHCD will select projects based on need, approach, local coordination, and capacity. As with
the loan program, projects will be selected for funding through a competitive application
process. Applicants may apply for the amount needed to administer the project, DHCD does not
anticipate entering into grant agreements for less than $50,000. The application period occurs
annually in the Fall and this year in December. As with the loan program, DHCD will rank
competitive project applications using a standardized review. DHCD will make funding offers to
the highest scoring projects in descending order until available funds are exhausted or all
projects scoring above sixty percent have been funded. Applicants may be asked to provide
additional information to finalize funding offers.
Approximately $100,000 will be used to continue the Petersburg pilot project. The Petersburg
Pilot Project works with high school students who are designated as homeless and chronically
absent to provide housing assistance and stability services. The goal is to improve overall
attendance and, as a result, educational outcomes.
Organizations Eligible for Virginia Housing Trust Fund Allocations
Several types of organizations are specified in the Code and guidelines as being eligible to
receive funding through the VHTF; local governments, local housing and redevelopment
authorities, regional or statewide organizations providing affordable housing and homeless
6
assistance/services to Virginia residents, and holding companies expressly created for owning
and operating affordable housing are deemed eligible to apply for VHTF monies. This would not
preclude eligible organizations from contracting with a variety of other parties to assist in
providing the housing and other resources required to satisfy the conditions of the grant or
loan product.
Virginia Housing Trust Fund Administration and Management
Funding for the VHTF is included in DHCD’s budget. DHCD is to work in collaboration with
Virginia Housing to carry out the provisions of the VHTF. DHCD and Virginia Housing have a
proven record of accomplishment in jointly administering statewide housing initiatives. In the
late 1980s, the General Assembly passed legislation creating the Virginia Housing Partnership
Fund. It was created to improve the quality and affordability of housing throughout the
Commonwealth and was jointly administered by DHCD and Virginia Housing. DHCD set policy,
provided technical assistance to its housing development partners in responding to funding
opportunities, and selected projects for funding through a competitive application process.
Virginia Housing provided underwriting services and originated and serviced loans.
Based on the model of the Partnership Fund, DHCD and Virginia Housing jointly determine the
policy parameters of the Housing Trust Fund. Specific aspects of the VHTF implementation are
handled by the individual agencies in accordance with their designated areas of expertise and
responsibility.
With respect to the loan offerings, DHCD provides technical assistance during project
development. Virginia Housing, drawing on its forty-year experience in mortgage lending as the
state’s housing finance agency, provides project underwriting for the Affordable Housing Loan
Program and performs loan origination, servicing and monitoring for all program loans. DHCD,
which has more than thirty years’ experience in managing federal and state grant and loan
programs for housing and community development, as well as extensive involvement in
homeless programs, administers the process to solicit applications for both the Competitive
Loan Program and the Homeless Reduction Grant Program. Overall responsibility for the
ongoing administration and monitoring of grants made through the Homeless Reduction Grant
Program falls to DHCD.
Summary of Changes
The 2021-2022 Program Design has some features, which have evolved since the initial
framework. Notably, the Competitive Loan Pool, beginning with the 2016–17 program year, is
now a part of the previously described Affordable and Special Needs Housing Consolidated
Application Process. This has streamlined the overall application process making four funding
sources available through a single application. Additionally, as previously noted, overall
allocation amounts between grants and loans were been temporarily adjusted to address the
most urgent housing needs associated with the COVID 19 pandemic.
7
Summary of 2020-21 Utilization
2020-2021 Virginia Housing Trust Fund Allocation
Loans
Competitive Loan Pool $23,803,200
Grants
Homeless Reduction Grant Pool $15,368,800
Rent and Mortgage Relief Program $28,200,000
Permanent Supportive Housing – $500,000
Predevelopment Grants
Administration $2,828,000
Total $70,700,000
2020-2021 Demand Summary
- For the 2020-2021 program year Homeless Reduction Grants were temporarily increased
from 20 to 40 percent of the VHTF in order to respond to emergency pandemic needs
- Approximately $42.23 million requested for the $24.6 million in the Competitive Loan Pool
funds (this included some unused homeless reduction grant funds)
o 66 applications
o 40 awarded
- Homeless Reduction Assistance
o $10.8 million for 38 Homeless Reduction Grant Awards which funded all requests
o Balance of grant funding went for non-congregate sheltering responsive to
emergency pandemic needs and remainder awarded through the Competitive Loan
Pool
Summary Points for FY 2020-21
- More than $24.6 million in VHTF resources invested in creating or preserving affordable
housing (this included some unused homeless reduction grant funds)
o Many projects serving very low and extremely low income populations that are very
hard to serve, such as chronically homeless and persons with intellectual and
developmental disabilities
- Creation and Preservation of Affordable Housing units (Competitive Loan pool)
o $24.6 million invested to leverage $648.9 million in other resources
o 2,835 affordable units will be created or preserved
o 25 projects with permanent supportive housing (PSH) units
o 383 PSH units
- $28.2 million made available as bridge to continue rent relief until federal funds arrived
- 859 households were assisted through the homeless reduction and permanent supportive
housing (PSH) assistance
o Rapid Rehousing – 477 households
o Permanent Supportive Housing – 382 households
8
Housing Trust Fund Snapshot 2021-2022 Allocation
Trust Fund Grants Loan Totals
Components
& Homelessness Vibrant Competitive
Features Reduction Community Loan Pool
Initiative
Purpose Provide competitive Competitive Through a competitive
grants to local/ process to process, provide local/
regional partners combine multiple regional partners with
providing funding sources in low-interest loans that
temporary (<1 year) order to fund will assist in financing
rental assistance; comprehensive housing projects that
housing community meet critical state
stabilization projects. housing policies.
services in Trust Fund Project underwriting will
permanent resources will be tailor repayment rates
supportive housing; directed to and terms to specific
and pre- activities project needs. The
development for supporting the highest priority will go to
long-term housing creation or those demonstrating
opportunities for preservation of financial sustain-ability
the homeless. affordable housing and leveraging.
Require opportunities. Prioritize projects serving
coordination with Will consolidate special needs
CoC. project populations—ID/DD,
management and Severe mental illness,
program Permanent Supportive
compliance Housing
requirements
where possible.
Funding $8,800,000 $5,000,000 $39,000,0000,000 $55,000,000
Available ($2,200,000
(Includes PSH Pre- Administration)
development
Grants)
Project Caps None – based on NA $700,000 per affordable
need housing project/
$900,000 for projects
Predevelopment providing PSH
Grants $100,000
9
Part II: Financial Status of the Virginia Housing Partnership Revolving Fund
The 1988 General Assembly established the Virginia Housing Partnership Revolving Fund to
expand the availability of affordable housing opportunities within the commonwealth. The
Virginia Housing Development Authority (VHDA) administered and managed the partnership
fund, subject to policies, procedures and programs established by the Department of Housing
and Community Development (DHCD). In accordance with a Memorandum of Understanding
between the two agencies, the Authority made underwriting recommendations and provided
legal and loan servicing assistance for loan and grant applications identified by the department.
Following 1989, the partnership fund provided grants and loans to a variety of housing
providers and to persons and families of low and moderate-income. While in active operation,
the partnership fund allocated over $163 million to housing proposals financing 17,626 units.
In 2003, as part of a series of actions taken to close a serious budget gap, Item 111 G of the
Appropriations Act directed the sale of the portfolio of outstanding loans and other assets of
the Partnership Fund to VHDA.2 A portion of the proceeds of the sale were paid to the General
Fund, while another portion was directed to the Commonwealth Priority Housing Fund (CPHF),
which in the near term provided a resource for addressing certain high priority housing needs.
Ultimately, following the enactment of additional legislation during 2005, the remaining
balance of the CPHF was transferred to a community development bank inaugurated by the
commonwealth where it continued to provide a source of mortgage loan funding. A remnant of
the Virginia Housing Partnership Revolving Fund remained on the books of VHDA where it was
subject to annual financial reporting.
With the passage of legislation establishing the Virginia Housing Trust Fund (VHTF) during the
2013 Session of the Virginia General Assembly, VHDA assumed the role of administrator for
VHTF, subject to program guidelines established by DHCD.3 For the purposes of the program
and VHDA’s financial reporting, the VHTF received the investments previously held in the
partnership fund. This effectively eliminated the partnership fund as a separate entry onto the
books of the Authority, where the VHTF replaced it.
Thus, this portion of the report, in accordance with the provisions of § 36-150 of the Code of
Virginia, addresses the financial status of the Virginia Housing Trust Fund and the former
Virginia Housing Partnership Revolving Fund. The unaudited status of the Virginia Housing Trust
Fund and the former Virginia Housing Partnership Revolving Fund is reflected as of June 30,
2021 (pages 12-14 attached below). This report addresses the net position, changes in net
position, revenues and expenses associated with the Virginia Housing Trust Fund. Virginia
Housing, as administrator of a portion of the VHTF, provided the material included in this
2
https://leg1.state.va.us/cgi-bin/legp504.exe?031+bud+21-111
3
Chapter 754, 2013 Acts of Assembly: https://lis.virginia.gov/cgi-bin/legp604.exe?131+ful+CHAP0754+pdf
10
report. The financial status report on the VHTF was included in the Virginia Housing financial
statements for the year ended June 30, 2021. The public accounting firm KPMG audited these
statements (pages 15-19 attached below). The Department of Housing and Community
Development has received and reviewed a copy of these financial statements and concluded
that they accurately reflect the status of the VHTF.
11
VIRGINIA HOUSING TRUST FUND
Statement of Net Position
As of June 30, 2021
Unaudited
Assets:
Cash $ 79.04
Investments - Net 2,000,100.00
Mortgage Loans Receivable 18,693,285.25
Interest Receivalbe - Investments 53.68
Interest Receivalbe - Mortgages 44,302.84
Total Assets $ 20,737,820.81
Liabilities and Net Position:
VHTF P&I Liabilities $ 86,423.79
Due to DHCD 1,865,302.00
Yearly Management Fee Due to VHDA 86,619.00
Total Liabilities 2,038,344.79
Net Position (previously held by VPRF) 11,230.00
Net Position (held by VHFT) 18,688,246.02
Total Net Position 18,699,476.02
Total Liabilities and Net Position $ 20,737,820.81
12
VIRGINIA HOUSING TRUST FUND
Statement of Revenues, Expenses, and Changes in Net Position
For the Month Ended June 30, 2021 and Fiscal Year to Date
Unaudited
Revenues: Month Year To Date
MF Home Interest $ - $ -
Interest Income - Investments 50.39 2,159.66
Management Fee Contribution from VHDA - 58,398.00
Total Revenues 50.39 60,557.66
Expenses
Fund Management Fee 86,619.00 86,619.00
Total Expenses 86,619.00 86,619.00
Excess of Revenues over Expenses $ (86,568.61) $ (26,061.34)
Beginning Net Position (previously held by VPRF) - 11,230.00
Beginning Net Position - 14,010,900.50
VHT Fund Decrease 1 (4,666.56) (55,743.14)
Fund Contribution (Distribution) 700,000.00 4,759,150.00
Ending Net Position $ 18,699,476.02
1
Note: The decrease in fund is due to Principal collected
on loans for June '21.
13
VIRGINIA HOUSING TRUST FUND
Change in Net Position
For the Month Ended June 30, 2021 and Fiscal Year to Date
Unaudited
Change in Net Position Month Year To Date
Beginning Balance $ - $ 11,230.00
Beginning Balance VHFT 14,010,900.50
Total Beginning Balance 14,022,130.50
Fund Increases:
Interest Income - Investments 50.39 2,159.66
Fund Contributions from VHDA - Management Fee - 58,398.00
Fund Contributions 700,000.00 4,759,150.00
Total Increase 700,050.39 4,819,707.66
Fund Decreases:
VHT Fund Decrease 4,666.56 55,743.14
Fund Distributions - -
Fund Management Fee 86,619.00 86,619.00
Total Decreases: 91,285.56 142,362.14
Net Change $ 608,764.83 4,677,345.52
Ending Net Position $ 18,699,476.02
14
VIRGINIA HOUSING DEVELOPMENT AUTHORITY
(A Component Unit of the Commonwealth of Virginia)
Notes to Basic Financial Statements
June 30, 2021 and 2020
U.S. Department of Housing and Urban Development – Housing Counseling Assistance
Program
The Authority serves as an administrator for HUD-approved Housing Counseling Agencies in the
Commonwealth. The Housing Counseling Assistance Program provides counseling to consumers on
seeking, financing, maintaining, renting, or owning a home. The Authority did receive pass-through
grants of $1,124,309 and $811,220 during the years ended June 30, 2021 and 2020, respectively.
U.S. Department of the Treasury – Rent Relief Program
The Authority serves as a sub-recipient of U.S. Department of the Treasury funds from Virginia
Department of Housing and Community Development (DHCD) to support the Rental Relief Program.
The program provided financial assistance for up to 15 months of rental payments to property owners
for the benefit of their tenants. The program was funded by three funding sources, two federal and one
state: Coronavirus Relief Fund, Emergency Rental Assistance Program and the Housing Trust Fund.
During the year ended June 30, 2021, the Authority received and disbursed pass-through grants totaling
$19,850,022 and $101,582,053 for the Coronavirus Relief Fund and Emergency Rental Assistance
Program, respectively. The Authority also received and disbursed state pass-through grants from
Housing Trust Fund for $12,716,041. For its support of the program, the Authority earned $3,135,000
in administrative fees.
(t) Commonwealth Priority Housing Fund, Housing Trust Fund, & National Housing Trust Fund
The Commonwealth Priority Housing Fund (Fund), established by the 1988 Session of the Virginia
General Assembly, uses funds provided by the Commonwealth in that Session to make loans and grants
for a wide variety of housing initiatives. The Virginia Department of Housing and Community
Development (DHCD) develops the program guidelines and the Authority acts as administrator for the
Fund.
The Housing Trust Fund (Trust Fund), established by the 2013 Session of the Virginia General
Assembly, uses funds provided by the Commonwealth in that Session to make loans and grants for a
wide variety of housing initiatives. DHCD develops the program guidelines and the Authority acts as
administrator for the Trust Fund.
The National Housing Trust Fund (National Trust) is a federal fund established through the Housing
and Economic Recovery Act of 2008, it exclusively targets to help build, preserve, rehabilitate, and
operate housing that is affordable to people with the lowest incomes. DHCD administers the program
through the Affordable and Special Needs Housing application process.
In accordance with GASB Statement No. 84, Fiduciary Activities, the Commonwealth Priority Housing
Fund, Housing Trust Fund and National Housing Trust Fund are now accounted for as fiduciary
activities and disclosed on the Authority’s Statements of Fiduciary Net Position and Statements of
Changes in Fiduciary Net Position.
(u) Cash Equivalents
Cash equivalents consist of highly liquid short-term instruments with original maturities of three months
or less from the date of purchase and are recorded at amortized cost. Cash equivalents include
commercial paper, repurchase agreements, money-market securities, and other short-term instruments.
(Continued)
15
Schedule 5
VIRGINIA HOUSING DEVELOPMENT AUTHORITY
(A Component Unit of the Commonwealth of Virginia)
Combining Schedule of Fiduciary Net Position
Fiduciary Funds – Custodial Funds
June 30, 2021
Escrow Funds Commonwealth
(GNMA, FNMA, Priority Housing Virginia Housing National Housing Total Custodial
FHLMC, Habitat) Fund Trust Fund Trust Fund Funds
ASSETS
Current assets:
Cash and cash equivalents $ 140,613,543 6,111,059 2,000,179 721,496 149,446,277
Interest receivable - investments - 124 54 16 194
Interest receivable - mortgage and other loans - 1,046 44,303 6,375 51,724
Other assets - 65,267 - - 65,267
Total current assets 140,613,543 6,177,496 2,044,536 727,887 149,563,462
Noncurrent assets:
Mortgage and other loans receivable - 2,254,370 18,693,285 5,200,847 26,148,502
Total noncurrent assets - 2,254,370 18,693,285 5,200,847 26,148,502
Total assets 140,613,543 8,431,866 20,737,821 5,928,734 175,711,964
LIABILITIES
Other liabilities - 3,002,518 2,038,345 751,984 5,792,847
Total liabilities - 3,002,518 2,038,345 751,984 5,792,847
NET POSITION
Restricted for:
Funds held in escrow 140,613,543 - - - 140,613,543
Other governmental agency - 5,429,348 18,699,476 5,176,750 29,305,574
Total Net Position $ 140,613,543 5,429,348 18,699,476 5,176,750 169,919,117
See accompanying independent auditors' report.
16
Schedule 6
VIRGINIA HOUSING DEVELOPMENT AUTHORITY
(A Component Unit of the Commonwealth of Virginia)
Combining Schedule of Changes in Fiduciary Net Position
Fiduciary Funds – Custodial Funds
For the Year Ended June 30, 2021
Escrow Funds Commonwealth
(GNMA, FNMA, Priority Housing Virgina Housing National Housing Total Custodial
FHLMC, Habitat) Fund Trust Fund Trust Fund Funds
ADDITIONS
Contribution:
Borrower payments $ 3,634,520,105 - - - 3,634,520,105
Employers - 22,320 58,398 18,320 99,038
Other governmental agency - - 4,759,150 2,775,000 7,534,150
Total Contributions 3,634,520,105 22,320 4,817,548 2,793,320 3,642,153,293
Investment earnings:
Interest, dividends, and other - 16,702 2,160 381 19,243
Total investment earnings - 16,702 2,160 381 19,243
Total additions 3,634,520,105 39,022 4,819,708 2,793,701 3,642,172,536
DEDUCTIONS
Other governmental agency - 1,262,488 55,743 - 1,318,231
Disbursement of escrow funds 3,635,579,901 - - - 3,635,579,901
Administrative expense - 22,091 86,619 32,859 141,569
Total deductions 3,635,579,901 1,284,579 142,362 32,859 3,637,039,701
Net increase in fiduciary net position (1,059,796) (1,245,557) 4,677,346 2,760,842 5,132,835
Net position - beginning 141,673,339 6,674,905 14,022,130 2,415,908 164,786,282
Net position - ending $ 140,613,543 5,429,348 18,699,476 5,176,750 169,919,117
See accompanying independent auditors' report.
17
Schedule 9
VIRGINIA HOUSING DEVELOPMENT AUTHORITY
(A Component Unit of the Commonwealth of Virginia)
Combining Schedule of Fiduciary Net Position
Fiduciary Funds – Custodial Funds
June 30, 2020
Escrow Funds Commonwealth National
(GNMA, FNMA, Priority Housing Virginia Housing Housing Trust Total Custodial
FHLMC, Habitat) Fund Trust Fund Fund Funds
ASSETS
Current assets:
Cash and cash equivalents $ 141,673,339 5,798,364 2,129,466 1,184,669 150,785,838
Interest receivable - investments - 274 100 45 419
Interest receivable - mortgage and other loans - 1,046 25,958 1,334 28,338
Other assets - 68,137 - - 68,137
Total current assets 141,673,339 5,867,821 2,155,524 1,186,048 150,882,732
Noncurrent assets:
Mortgage and other loans receivable - 3,366,858 13,989,878 2,425,847 19,782,583
Total noncurrent assets - 3,366,858 13,989,878 2,425,847 19,782,583
Total assets 141,673,339 9,234,679 16,145,402 3,611,895 170,665,315
LIABILITIES
Other liabilities - 2,559,774 2,123,272 1,195,987 5,879,033
Total liabilities - 2,559,774 2,123,272 1,195,987 5,879,033
NET POSITION
Restricted for:
Funds held in escrow 141,673,339 - - - 141,673,339
Other governmental agency - 6,674,905 14,022,130 2,415,908 23,112,943
Total Net Position $ 141,673,339 6,674,905 14,022,130 2,415,908 164,786,282
See accompanying independent auditors' report.
18
Schedule 10
VIRGINIA HOUSING DEVELOPMENT AUTHORITY
(A Component Unit of the Commonwealth of Virginia)
Combining Schedule of Changes in Fiduciary Net Position
Fiduciary Funds – Custodial Funds
For the Year Ended June 30, 2020
Escrow Funds Commonwealth
(GNMA, FNMA, Priority Housing Virgina Housing National Housing Total Custodial
FHLMC, Habitat) Fund Trust Fund Trust Fund Funds
ADDITIONS
Contribution:
Borrower payments $ 1,867,261,825 - - - 1,867,261,825
Employers - 23,320 60,837 31,198 115,355
Other governmental agency - - 3,729,903 1,300,000 5,029,903
Total Contributions 1,867,261,825 23,320 3,790,740 1,331,198 1,872,407,083
Investment earnings:
Interest, dividends, and other - 97,699 31,823 3,525 133,047
Total investment earnings - 97,699 31,823 3,525 133,047
Total additions 1,867,261,825 121,019 3,822,563 1,334,723 1,872,540,130
DEDUCTIONS
Other governmental agency - 30,000 55,189 - 85,189
Disbursement of escrow funds 1,787,292,494 - - - 1,787,292,494
Administrative expense - 22,320 58,398 18,320 99,038
Total deductions 1,787,292,494 52,320 113,587 18,320 1,787,476,721
Net increase in fiduciary net position 79,969,331 68,699 3,708,976 1,316,403 85,063,409
Net position - beginning 61,704,008 6,606,206 10,313,154 1,099,505 79,722,873
Net position - ending $ 141,673,339 6,674,905 14,022,130 2,415,908 164,786,282
See accompanying independent auditors' report.
19
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