1 FY PRESTON PARK BUDGET REQUESTED BOARD ACTION Approve FY 2013/2014 Preston Park Housing Operating Budget with 2.4% Rent Increase and the Capital Expenditure Budget with Life Safety Expenditures

FORA staff recommends proposed FY Preston Park budget for the following reasons: 1. Budget meets all FORA Board policies with respect to sustaining Preston Park as a quality residential area and rent levels. 2. Capital Expenditures are necessary to address safety and health issues. 2 FY PRESTON PARK BUDGET

3 FY PRESTON PARK BUDGET RENT CALCULATION The primary source of revenue is rents, Section 8 voucher payments from the Housing Authority of the County of Monterey and associated charges to residents such as late fees. The proposed FY 2013/14 Budget – Option 1 assumes a 2.4% increase for in-place residents using the approved formula of three percent (3%) or the Department of Labors Consumer Price Index for San Francisco-Oakland-San Jose, All Items, for All Urban Consumers (referred to as CPI-U) documented as 2.4%.

Preston Park Market Rent Variance Two Bedroom (Traditional Finish) Current In Place Rent Range: $1,146 – $1,645 Average In Place Rent: $1,380 Average Rent for New Move-Ins: $1,691 Difference between In Place New Move-Ins: $311/18.39% Proposed Increase for In Place Residents: $27 - $39 4

Preston Park Market Rent Variance Three Bedroom (Traditional Finish) Current In Place Rent Range: $1,499 – $1,950 Average In Place Rent: $1,572 Average Rent for New Move-Ins: $1,997 Difference between In Place New Move-Ins: $425/21.28% Proposed Increase for In Place Residents: $36 - $47 5

FY PRESTON PARK BUDGET Budget Summary Expenses in Attachment E include Operating Expense projections, delineating FY 2012/13 budget changes Overall, total FY2013/14 operating expenses proposed are 7.0% higher than estimated actual for FY 2012/13 expenses ($96,927). Expenses categorized as Capital expenses directly impact the long term value of the community. 6

FY PRESTON PARK BUDGET 7