PROCUREMENT THROUGH COMPETITIVE PROPOSAL REQUEST …€¦ · Sample Contract List of Authority LIPH Developments and other Parcels Current HACH Physical Needs Assessment Authority

HOUSING AUTHORITY OF THE CITY OF HARTFORD, 180 John D Wardlaw Way, HARTFORD CT 06106 REQUEST FOR PROPOSAL # 1843-18 RENTAL ASSISTANCE DEMONSTRATION (RAD)/LIPH PORTFOLIO CONVERSION CONSULTANT

PROCUREMENT THROUGH COMPETITIVE PROPOSAL REQUEST FOR PROPOSAL (RFP) 1843-18

RENTAL ASSISTANCE DEMONSTRATION (RAD)/LIPH PORTFOLIO CONVERSION CONSULTANT

Released April 16, 2018

CONTENTS

Section 1: Introduction, Submission, Evaluation and Award Section 2: Scope of Services Section 3: Qualification Statement (signature required) Section 4: Price Proposal Form (signature required) Section 5: General Terms and Conditions ATTACHMENTS: Acknowledgement of Addenda (list all issued addenda, signature required) HUD Form 5369b: Instructions to Offerors (Pre-award Terms) HUD Form 5369c: Representations, Certifications and other Statement (signature required) HUD Form 50071: Certification of Payments to Influence Federal Transactions (signature required) Sample Contract List of Authority LIPH Developments and other Parcels Current HACH Physical Needs Assessment Authority 2016 Audited Financial Statements SCHEDULE OF EVENTS: Solicitation Issuance Monday April 16, 2018 Proposal Due Date Thursday, May 17, 2018 @ 2:00 pm Evaluation Period (tentative) Week of May 21, 2018 Award/Contract Effective On or around week of June 4, 2018


SECTION 1 INSTRUCTIONS TO RESPONDENTS

1.1. INTRODUCTION

The Housing Authority of the City of Hartford (the “Authority”) is seeking to contract through the competitive proposal process with a vendor (the “Contractor”) to provide Rental Assistance Demonstration (“RAD”)/Low Income Public Housing (“LIPH”) Portfolio Conversion services in support of the Authority’s exploration of alternatives to its traditional LIPH portfolio. The Authority anticipates the award of a single contract as a result of this solicitation. Contractors may bid to provide all the services themselves or as consortia with a primary vendor subcontracting out various tasks. The Authority reserves the right to make partial or full award of the services described below. Any obligations of Respondents in this RFP continue to be obligations of Contractor(s) when awarded.

Term Contract. The term of the contract resulting from this solicitation (the “Contract”) will be for three (3) years

commencing on the date of award. Upon satisfactory completion of the initial term of the Contract, the Authority

may extend the term of this Contract for two additional one year terms at its sole option at the prices initially offered

by the Contractor. The Authority shall provide Contractor with written notice of its intent to extend the Contract at

least ninety (90) days prior to the expiration of the then current Contract term.

Quantities. The Contract is an indefinite delivery, indefinite quantity contract. Services are required as and when

needed. At least a non-de minimis quantity of Services will be ordered by the Authority and the level of Services

ordered may not exceed the not to exceed amount described in this RFP without further approvals. The Authority

reserves the right to make partial or full award of the services described below.

Non-Exclusive. The Contract is not an exclusive contract and there is no guarantee as to the amount of work to be

assigned for any particular period of time. The Authority reserves the right to go out to separate solicitation for major

projects or for assignments not covered by the Scope of Services described in this RFP.

Funding. The Contract is contingent upon continued funding availability from one or more sources including federal

funds. In the event that funds are not available at any time during the Contract term, the Authority reserves the right

to cancel the Contract. In such event, each Contractor will be paid for satisfactory services provided to date of

cancellation.

The Contract is subject to an aggregate not to exceed expenditure limit of three hundred seventy thousand dollars and

no cents ($370,000.00) (the “Aggregate Limit”). Expenditures may not exceed the Aggregate Limit without

confirmation of funds availability and the prior approval of the Board of Commissioners.

1.2. PRE-PROPOSAL CONFERENCE

A pre-proposal conference has not been scheduled for this RFP.

1.3 QUESTIONS AND COMMUNICATION

All questions must be put in writing to the RFP Contact named below no later than 5 calendar days before the due

date for the submission of responses. The intent of this requirement is to assure that all Respondents are in receipt of

the same information and to allow the Authority sufficient time to post questions and answers in an Addendum to

this RFP. The Authority reserves the right to use its discretion in issuing Addenda for questions and answers; only

those questions and answers which might materially affect a vendor’s response will result in an Addendum. It is the


responsibility of each Respondent to check the Authority’s website: www.hartfordhousing.org for a copy of all

Addenda issued for this RFP.

NOTE: Any solicitation or lobbying directed to any Authority staff or the Board of Commissioners is

prohibited and is grounds for disqualification of Respondent’s proposal.

SOLE RFP CONTACT

Ben Bare General Counsel and Chief Procurement Officer

180 John D Wardlaw Way Hartford, CT 06106

email: [email protected]

www.hartfordhousing.org

1.4. PROPOSAL DEADLINE AND DELIVERY

Respondents must deliver in a sealed package one (1) original, and two (2) copies of their response as well as an

electronic version on CD or small portable drive (i.e. a “thumb drive”) to the following location no later than 2:00

PM on Thursday, May 17, 2018.

Deliver to:

Housing Authority of the City of Hartford

Attention: Bid Department

180 John D Wardlaw Way

Hartford, CT 06106

To assure proper receipt and handling of responses, the outside of the package must be clearly marked with

Respondent’s Name and Address, and the words: RFP 1843-18 for RENTAL ASSISTANCE

DEMONSTRATION (RAD)/LIPH PORTFOLIO CONVERSION CONSULTANT

You must acknowledge any and all addenda issued and related to this solicitation with your submission by executing

the attached Acknowledgement of Addenda.

1.5. PROPOSAL FORMAT

The following documents must be completed and returned by all Respondents: Executive Summary. Submit a letter on your company letterhead, signed by an authorized agent for the company. The letter should summarize your proposal response and incorporate, by attachment:

Client References. Include three (3) references for which you have provided a similar scope of work. Include contact name, address, and phone number. Provide a description and value of the work performed.

Organizational Chart. Provide an organizational chart, highlighting credentials, and qualifications, and roles of key staff and subcontractors who will be involved in the work.

http://www.hartfordhousing.org/

http://www.hartfordhousing.org/


Technical Proposal. Submit a detailed response to RFP Section 2, Scope of Services. Address the scope items

in the same sequence as they are presented in the RFP. Include a description of your organizational capability

to perform in a manner that demonstrates evidence of your relevant knowledge and experience. Staff or

subcontractor substitution after award will not be permitted without prior written approval of the Authority.

Reply "NO RESPONSE" in any area that is of no interest.

Fee Proposal. Submit a complete Fee Proposal indicating any and all costs associated with the services

proposed. Cost plus a percentage of cost is prohibited. Respondents are required to submit hourly billing

rates for key staff as well as identify any and all items that are billable expenses. Any and all costs not

specifically provided for in the proposal response will be borne by each Contractor. Travel costs and other

incidental expenses are not allowed under this Contract.

Qualifications Statement. Complete the Qualifications Statement and provide all information requested therein. Resumes shall include each person’s professional licenses and certifications. Provide attachments wherever more space is needed to respond to the question.

HUD Form 5369c. Complete and attach the Certifications and Representations of Offerors Non-Construction Contract. HUD Form 50071. Complete and attach the Certification of Payments to Influence Federal Transactions.

1.6. RIGHT TO VERIFY INFORMATION

The Authority reserves the right to verify any and all information provided in the Proposal. If there is

evidence of misleading or false information, the Authority may, in its discretion, reject the Respondent’s

submittal.

1.7. EVALUATION OF PROPOSALS

The Authority will assign an agent to review each proposal to determine if the proposal substantially complies

with the requirements and procedures contained in this RFP. Respondents that are not in substantial

compliance will not be considered further.

A selection committee will be convened to review responsive proposals.

1.8. EVALUATION CRITERIA POINTS

General Background and Experience ........................................................................................................................50 Verifiable experience for the services proposed; capacity to perform; references; integrity; knowledge of public policy; past performance; financial and technical resources. Technical Response .....................................................................................................................................................35 Narrative Response to the Scope of Services, demonstrated knowledge of staff. Competitiveness of Proposed Fees .............................................................................................................................15


1.9. INTERVIEWS

A selection panel may interview the highest scoring Respondents (typically the highest 3 unless it is in the

Authority’s best interest to interview more). Initial scores may be adjusted based upon the outcome of

interviews. The Authority reserves the right to make award based solely upon written proposals, therefore,

Respondents are urged to provide a complete response with their best and final offer.

1.10. AWARD

Award will be made to the Respondent whose proposal is deemed most advantageous to the Authority.

Further, the Authority reserves the right to administer the Contract in whatever way is most advantageous

taking into consideration cost effectiveness, efficiency, and practicality. The Authority further reserves the

right to make a “no award” on all or any part of this Request for Proposal and to negotiate the extent of

services provided (upward or downward) as applicable.

1.11. SOCIO ECONOMIC CONSIDERATION: The Authority encourages responses from individuals

and companies located in or owned by persons residing in a public housing development (commonly referred

as Section 3).

1.12. CONDITIONS OF CONTRACT

This Request for Proposal, including all attachments, together with the Contractor’s proposal response will

form the entire agreement between the Contractor and the Authority. Any and all exceptions to the Sample

Contract attached to this RFP should be noted in the Respondent’s response to this RFP.

In the event additional services are required that have not been awarded, but are within the scope of the

services described in this RFP, the Authority will have the sole and exclusive right to allocate the service to a

firm under contract or seek the services on the open market, whichever is deemed to be in its best interest.

The person signing the proposal on behalf of the Respondent shall be authorized to commit the Respondent

in contractual matters and to conduct negotiations or on behalf of the Respondent.

SECTION 2 SCOPE OF SERVICES

GENERAL

HACH is inviting independent contractors and/or professional firms to submit proposals for consulting services to assist it in the conversion of its current Department of Housing and Urban Development (“HUD”) regulated low income public housing portfolio (the “Portfolio”) through a combination of the Rental Housing Demonstration Program more commonly referred to as “RAD”, the HUD demolition/disposition process (“demo/dispo”) and any other permissible process. In addition to the LIPH developments, the Authority also has three vacant non-LIPH properties, a warehouse located near downtown Hartford and also an administrative building on approximately 24 acres of cleared land in the western portion of Hartford. Some of these parcels are encumbered by a HUD deed of trust and some are entirely non-federal. All of those parcels should be included in analysis and included in any development plan


and are considered a part of the Portfolio for purposes of this RFP. A full description of the Portfolio is attached to this RFP along with copies of the most recent audited financial statements of the Authority and the most recent physical needs assessment conducted for the Portfolio. The consulting services described in this Scope of Services are intended to serve as a general guideline for the types of consulting service which may be required by the Authority. The Contractor will be required to provide high level consultation and assistance on a wide range of HUD affordable housing topics related to the conversion of HACH properties to other ownership and/or operational structures. It is expected that Respondents will have knowledge of regulations pertaining to HUD, the State of Connecticut and the City of Hartford. The following Scope of Services is a fair representation of the services that may be required by the Authority, however, it is not meant to limit the scope of work requested by the Authority. This Scope of Services will form the basis of Respondent's Technical Proposal. Address each item in the Scope by providing a supporting narrative on your background and capacity to provide the service.

The conversion of the Portfolio through a combination of the options listed above is intended to stabilize and renovate HACH’s existing properties, explore the potential purchase of other properties and explore the development of HACH vacant properties all to promote the long term sustainability of HACH.

HACH is fully open to the exploration of alternative ownership structures, creative financing options

and other suggested avenues to meet these goals. This RFP seeks proposals to provide the services described below as well as any related services

which may arise during the course of the Contract:

1. Review the Portfolio (financials, physical condition and operational performance).

2. Offer technical expertise and general recommendations to inform HACH in its efforts to determine the feasibility and the structuring of each property using the conversion option with the “best fit” based on each property’s unique circumstances.

3. Deliver individual property- and Portfolio-level reports and recommendations.

4. Assess the adequacy of existing physical needs analysis (“PNAs”) to identify needed improvements, to satisfy RAD’s GPCA 1 or other relevant criteria; and assist in the development of a scope of work to secure a contractor to conduct a PNA that will satisfy such criteria if necessary.

5. Identify the best grouping of properties into one of several RAD applications, demo/dispo bundles or other conversion measure.

6. Prepare and deliver a detailed analysis of the feasibility of RAD, demo/dispo or other conversion of HACH’s entire Portfolio. The analysis will include projected post-conversion revenues, development of financial strategies and options to carry out conversion, and a comparative analysis showing the revenue potential for its Portfolio as compared to current revenues.

7. Review development budgets incorporating all applicable sources and uses.

8. Create operational pro formas to ensure conformance with HUD program guidelines and lender requirements.


9. Prepare and submit of all relevant applications for the properties.

10. Monitor, oversee, and submit the required items (i.e., RPCA, environmental report, pro forma, HUD form documents, etc.) to meet the HUD-required CHAP milestones, including the Financing Plan which will be used in the HUD RAD approval process.

11. Monitor, oversee, and submit required items to meet HUD-required demo/dispo or other applicable milestones.

12. Participate in communications with HACH and HUD RAD staff to help converting properties move through the RAD Financing Plan and RCC issuance processes.

13. Participate in communications with HACH, HUD, lender or other parties to help converting properties move through the demo/dispo or other applicable processes; and facilitate the RAD, demo/dispo or other closing process, serving as a liaison between the parties, their attorneys and other consultants.

14. Assist HACH to resolve any outstanding issues for the conversion and collaboratively work with all parties to guide HACH through the review and execution of the RAD Conversion Commitment (RCC), the HAP Contract, and the RAD Use Agreement, other RAD-related documents required by HUD or other applicable documentation.

15. Assist HACH in developing a potential sequencing order (i.e. reserves only, multi-phase) for the Portfolio conversion. The Consultant shall also assist HACH in its “entrance conferences” with HUD during the initial stage of the RAD conversion process if applicable.

16. Assist HACH staff in identifying funding sources and submitting funding applications necessary to carry out the conversion. Such funding sources may include, but not be limited to, Low Income Housing Tax Credits (LIHTC), Community Development Block Grant Funds (CDBG), Capital Fund Financing Program (CFFP), Affordable Housing Program (AHP), New Market Tax Credits, Renewal Energy Tax Credits, Historic Tax Credits, etc. Note that HACH does have one outstanding CFFP bond issue outstanding at this time with a principal amount of approximately $5,000,000.00.

17. Assist HACH in preparation of submittal of Mixed-Finance Proposal for revitalization if applicable. Communicate with HACH, HUD and other necessary agencies and representatives with sufficient knowledge and details to meet all applicable deadline(s).

18. Assist HACH in the development of solicitations and conduct of evaluations for potential development or financing partners related to the conversion of the Portfolio.

19. Assist HACH in the utilization of its non-profit development affiliate in the conversion of the Portfolio.

Minimum Qualifications:

A minimum of 5 years professional experience working on complex financing and portfolio structure issues for mid to large scale Public Housing Authorities.

Significant coursework and/or certifications by HUD recognized national or regional institutions in

the areas of housing administration, Section 8 and housing management.


Significant background and knowledge of HUD rental and occupancy regulations.

SECTION 3 QUALIFICATION STATEMENT

(Either complete form or provide your own form in the same format) 1. Company/Individual Name and complete Mailing Address: 2. Structure: ____Sole Proprietor ____Partnership ____Corporation ____Other ( ) 3. Email Address and Phone Number ____________________________________________________ 4. How many years have you been in business? _____________________________________________ 5. Specify your relevant registrations, certifications and licenses __________________________________________________________________________________ 6. Are there other expected engagements or vacations which would impede your ability to perform the services required for the duration of the Contract? ___________________________________________________________________________________ 7. Describe your back up plan in the event you (if an individual) or the individual assigned by your firm is not available for any length of time. How will the services continue uninterrupted? ___________________________________________________________________________________ 8. Have you ever been debarred, suspended, disbarred or otherwise disciplined by any local, state or federal governmental unit, body? ______________ 9. Have you ever been terminated by a client for any reason? If so, please provide an explanation DATE: _______________ BY: ______________________________________________________________________________ Signature of person signing proposal Print Name ________________________________________________________________________


SECTION 4

PRICE PROPOSAL FORM

Respondents are required to provide a complete estimated fee schedule inclusive of all costs associated with delivering each of the tasks described below utilizing this Section 4 as the price form. Any and all costs not specifically provided for in the proposal response will be borne by the Contractor. No time or expenses for travel to and from the Authority or to other locations at the request of the Authority may be included within any fee structure.

1. Review the Portfolio (financials, physical condition and operational performance). Time Estimated to Complete in Hours by Job Title: ____________________ Hourly Rate for Each Job Title: ____________________________________ Total Estimated Cost to Complete: _________________________________ Alternative = Fixed Cost to Complete: ______________________________

2. Offer technical expertise and general recommendations to inform HACH in its efforts to determine the feasibility and the structuring of each property using the conversion option with the “best fit” based on each property’s unique circumstances.

Time Estimated to Complete in Hours by Job Title: ____________________ Hourly Rate for Each Job Title: ____________________________________ Total Estimated Cost to Complete: _________________________________ Alternative = Fixed Cost to Complete: ______________________________

3. Deliver individual property- and Portfolio-level reports and recommendations.

Time Estimated to Complete in Hours by Job Title: ____________________

Hourly Rate for Each Job Title: ____________________________________

Total Estimated Cost to Complete: _________________________________

Alternative = Fixed Cost to Complete: ______________________________

4. Assess the adequacy of existing physical needs analysis (“PNAs”) to identify needed improvements, to satisfy RAD’s GPCA 1 or other relevant criteria; and assist in the development of a scope of work to secure a contractor to conduct a PNA that will satisfy such criteria if necessary.





5. Prepare and deliver a detailed analysis of the feasibility of RAD, demo/dispo or other conversion of

HACH’s entire Portfolio. The analysis will include projected post-conversion revenues, development

of financial strategies and options to carry out conversion, and a comparative analysis showing the

revenue potential for its Portfolio as compared to current revenues.






6. Identify the best grouping of properties into one of several RAD applications, demo/dispo bundles or other conversion measure. Time Estimated to Complete in Hours by Job Title: ____________________




7. Review development budgets incorporating all applicable sources and uses.





8. Create operational pro formas to ensure conformance with HUD program guidelines and lender requirements. Time Estimated to Complete in Hours by Job Title: ____________________




9. Prepare and submit of all relevant applications for the properties.





10. Monitor, oversee, and submit the required items (i.e., RPCA, environmental report, pro forma, HUD form documents, etc.) to meet the HUD-required CHAP milestones, including the Financing Plan which will be used in the HUD RAD approval process. Time Estimated to Complete in Hours by Job Title: ____________________ Hourly Rate for Each Job Title: ____________________________________ Total Estimated Cost to Complete: _________________________________ Alternative = Fixed Cost to Complete: ______________________________

11. Monitor, oversee, and submit of the required items to meet the HUD-required demo/dispo or other applicable milestones. Time Estimated to Complete in Hours by Job Title: ____________________





12. Participate in communications with HACH and HUD RAD staff to help converting properties move through the RAD Financing Plan and RCC issuance processes. Time Estimated to Complete in Hours by Job Title: ____________________ Hourly Rate for Each Job Title: ____________________________________ Total Estimated Cost to Complete: _________________________________ Alternative = Fixed Cost to Complete: ______________________________

13. Participate in communications with HACH and HUD staff to help converting properties move through the demo/dispo or other applicable processes; and facilitate the RAD, demo/dispo or other closing process, serving as a liaison between HUD, HACH, and HACH’s attorneys and other consultants. Time Estimated to Complete in Hours by Job Title: ____________________ Hourly Rate for Each Job Title: ____________________________________ Total Estimated Cost to Complete: _________________________________ Alternative = Fixed Cost to Complete: ______________________________

14. Assist HACH to resolve any outstanding issues for the conversion and collaboratively work with all parties to guide HACH through the review and execution of the RAD Conversion Commitment (RCC), the HAP Contract, and the RAD Use Agreement, other RAD-related documents required by HUD or other applicable documentation. Time Estimated to Complete in Hours by Job Title: ____________________ Hourly Rate for Each Job Title: ____________________________________ Total Estimated Cost to Complete: _________________________________ Alternative = Fixed Cost to Complete: ______________________________

15. Assist HACH in developing a potential sequencing order (i.e. reserves only, multi-phase) for the Portfolio conversion. The Consultant shall also assist HACH in its “entrance conferences” with HUD during the initial stage of the RAD conversion process if applicable. Time Estimated to Complete in Hours by Job Title: ____________________ Hourly Rate for Each Job Title: ____________________________________ Total Estimated Cost to Complete: _________________________________ Alternative = Fixed Cost to Complete: ______________________________

16. Assist HACH staff in identifying funding sources and submitting funding applications necessary to carry out the conversion. Such funding sources may include, but not be limited to, Low Income Housing Tax Credits (LIHTC), Community Development Block Grant Funds (CDBG), Capital Fund Financing Program (CFFP), Affordable Housing Program (AHP), New Market Tax Credits, Renewal Energy Tax Credits, Historic Tax Credits, etc. Note that HACH does have one outstanding CFFP bond issue outstanding at this time with a principal amount of approximately $5,000,000.00.






17. Assist HACH in preparation of submittal of Mixed-Finance Proposal for revitalization if applicable. Communicate with HACH, HUD and other necessary agencies and representatives with sufficient knowledge and details to meet all applicable deadline(s). Time Estimated to Complete in Hours by Job Title: ____________________ Hourly Rate for Each Job Title: ____________________________________ Total Estimated Cost to Complete: _________________________________ Alternative = Fixed Cost to Complete: ______________________________

18. Assist HACH in the development of solicitations and conduct of evaluations for potential development or financing partners related to the conversion of the Portfolio. Time Estimated to Complete in Hours by Job Title: ____________________ Hourly Rate for Each Job Title: ____________________________________ Total Estimated Cost to Complete: _________________________________ Alternative = Fixed Cost to Complete: ______________________________

19. Assist HACH in the utilization of its non-profit development affiliate in the conversion of the Portfolio. Time Estimated to Complete in Hours by Job Title: ____________________ Hourly Rate for Each Job Title: ____________________________________ Total Estimated Cost to Complete: _________________________________ Alternative = Fixed Cost to Complete: ______________________________

TOTAL ESTIMATED COST TO PROVIDE ALL SERVICES: ___________________ 4.1. FIXED FEES WHERE POSSIBLE. Wherever possible, the Respondent should provide fixed fee for service. 4.2. HOURLY RATES/KEY STAFF. Hourly rates should be structured by service provided and key staff if there are separate rates and fees for particular services provided or key staff. The fees should be associated with titles and job descriptions of key staff to be assigned. 4.3. COST PLUS PROHIBITED. Respondents are cautioned that cost plus a percentage of cost is not allowed, therefore, mark-ups for project expenses will not be an acceptable submission. 4.4. FEES TO REMAIN FIRM. Fees must remain firm for the duration of the Contract. As assignments arise, the Authority may request project estimates. Contractors shall base the project estimates on the hourly rates and expenses fees provided in their proposal. Any and all costs not specifically stipulated will be borne by the Contractor. The Undersigned agrees to hold its offer open for 90 days from the date of RFP opening. Signed by: _________________________________ Print Name ________________________________ Name of Company or Title _____________________________________________________________


Address _____________________________________________________________________________ Telephone ______________________________________


SECTION 5 GENERAL TERMS AND CONDITIONS

1. CONTRACT AGREEMENT: This Request for Proposal, the Contractor’s response to it and the

Contract will constitute the entire agreement between the Contractor and the Authority unless

mutually amended in writing. The Sample Contractual Agreement attached hereto will be used as the

basis for negotiation between the Contractor and the Authority, therefore, any and all exceptions to

the contract should be noted by each Respondent as part of his/her proposal response.

2. SIGNED PROPOSAL CONSIDERED AN OFFER: Receipt of a signed proposal is considered a

binding offer by the Respondent which shall remain firm for a period of 90 days from the due date

for proposal delivery. In the event of withdrawal after proposal delivery, the Authority may take

such action as it deems appropriate including legal action for damages or specific performance.

3. PAYMENT TERMS: Payment terms are NET 45 days following receipt of correct invoice. The

Authority is responsible for all payments to Contractor under the Contract.

4. CHANGES: the Authority shall have the right, at any time, to increase or decrease the scope of work

contained in this RFP to meet increased or decreased needs.

5. AVAILABILITY OF FUNDS: Any and all payments to the Contractor shall be deemed binding

only to the extent of appropriated funds for the purpose set forth in this proposal.

6. NON-DISCRIMINATION: The Contractor shall not discriminate against any individuals and will

take proactive measures to assure compliance with all Federal and State and Authority requirements

concerning fair employment, employment of people with disabilities, and concerning the treatment

of all employees without regard to discrimination based upon age, race, color, religion, sex, national

origin or disability.

7. GOVERNING LAWS: The contract is made under and shall be governed and construed in

accordance with the laws of the State of Connecticut.

8. ADVERTISING: In submitting a proposal to the Authority, the Respondent agrees not to use the

results of their proposal as a part of any commercial advertising without prior approval of the

Authority.

9. CONFIDENTIALITY OF PROPOSALS: In submitting a proposal the Respondent agrees not to

discuss or otherwise reveal the contents of the proposal to any source outside of the Authority until

after the award of the Contract. Respondents not in compliance with the provision may, at the

option of the Authority, be disqualified from contract award. Only discussions authorized by the

issuing agency are exempt from this provision.

10. ELABORATE PROPOSALS: Elaborate proposals in the form of brochures or other presentations

beyond that necessary to present a complete and effective proposal are not desired.


11. COST FOR PROPOSAL PREPARATION: Any costs incurred by Respondents in preparing or

submitting proposals are the Respondents’ sole responsibility. The Authority will not reimburse any

Respondent for any costs incurred prior to award of the Contract.

12. RIGHT TO SUBMITTED MATERIAL: All responses, inquiries, or correspondence relating to or

in reference to this Request for Proposals, and all other reports, charts, displays, schedules, exhibits,

and other documentation submitted by the Respondents shall become the property of the Authority

when received.

13. NO COLLUSION: The Respondent’s signature on the price proposal is a guarantee that the prices

quoted have been arrived at without collusion with other eligible Respondents and without effort to

preclude the Authority from obtaining the lowest possible competitive price.

14. GENERAL INDEMNITY: The Respondent shall save and hold harmless, pay on behalf of,

protect, defend, and indemnify the Authority for the entire responsibility and liability for losses,

expenses, demands, actions and claims in connection with or arising out of any injury, or alleged

injury (including death) to any person, or damage, or alleged damage, to property of the Authority or

others sustained or alleged to have been sustained in connection with or to have arisen out of or

resulting from the performance or the intended performance of any work/service, outlined or

resulting from this RFP, by the Respondent or their employees, including losses, expenses or

damages sustained by the Authority officials from any and all such losses, expenses, damages,

demands and claims. The Respondent further agrees to defend any suit or action brought against the

Authority, (as outlined above) based on any such alleged injury or damage and to pay all damages,

cost and expenses in connection therewith or resulting there from. The obligations of the

Respondent pursuant to this paragraph shall not be limited in any way by any limitation in the

amount or type of proceeds, damages, compensation, or benefits payable under any policy of

insurance or self-insurance maintained by or for the use and benefit of the Respondent.

15. CONFLICT OF INTEREST: All Respondents must disclose in writing with their proposal the

name of any owner, officer, director, or agent who is also an employee of the Authority. All

Respondents must also disclose in writing with their proposal the name of any employee of the

Authority who owns, directly or indirectly, an interest of five percent (5%) or more in the

Respondent’s firm or any of its branches or subsidiaries. By submitting a proposal, the Respondent

certifies that there is no relationship between the Respondent and any person or entity which is or

gives the appearance of a conflict of interest related to this RFP.

16. ERRORS AND OMISSIONS: The Respondent shall not take advantage of any errors or omissions

in this RFP. The Respondent shall promptly notify the Authority of any omissions or errors found

in this document.

17. INDEPENDENT INVESTIGATIONS: The Authority reserves the right to make independent

investigations as to the qualifications of the Respondent. Such investigations may include contacting

existing customers. The Authority reserves the unqualified right to accept or reject any and all


proposals, and to waive any irregularities or deficiencies as may be permitted by law when it is

deemed that such action will be in the best interest of the Authority.

18. REFERENCE TO OTHER DATA: Only information which is received in response to this

Request for Proposals will be evaluated. Reference to information previously submitted shall not be

evaluated.

19. NOTIFICATION OF AWARD: After all prerequisites and specifications have been met by the

Respondent and the award has been made, the successful Respondent will be notified within ten (10)

working days of this award. The Authority will notify the successful Respondent in writing, either by

a Letter of Award or a Purchase Order or both. VERBAL NOTIFICAITON OF THE AWARD

OF THE CONTRACT IS NOT CONSIDERED A RELIABLE MODE OF NOTIFICATION

AND, THEREFORE, WILL NOT BE RECOGNIZED AS AN OFFICIAL NOTIFICATION.

20. TERMINATION FOR CAUSE: The Authority reserves the right to terminate the Contract at any

time for cause. The violation of any provision or condition contained in the Contract, or the refusal,

failure, or inability to carry out any provisions of the Contract shall constitute sufficient grounds to

terminate the Contract for cause. Should the Authority elect to terminate the Contract for cause, the

Authority will notify the Contractor 30 days prior to the termination date and shall specify the cause

for termination as well as the date the termination shall be effective. This termination notice will be

issued via a written letter sent by certified U.S. mail. Immediate dismissals may be executed if

deemed necessary by the Authority.

21. TERMINATION WITHOUT CAUSE: The Authority may terminate the Contract without cause.

Written notice of termination must be sent via certified U.S. mail no later than thirty (30) days prior

to the termination date.

22. DRUG POLICY: The Respondent certifies that it maintains a drug-free work place environment to

ensure worker safety and workplace integrity. The Respondent further agrees their employees shall

comply with the City of Hartford’s Drug-Free Workplace Policy.

23. NO SMOKING: The Authority will be 100% smoke free on or before December 31, 2017. Smoking

is absolutely forbidden on all Authority grounds and in all Authority facilities during the entire term

of this Contract. This policy includes smoking in vehicles parked on Authority grounds.

24. AUTHORIZIED PERSONNEL: While engaged in the performance of the services described

herein, only authorized employees of the Contractor are allowed at the Authority locations where the

work is being performed. During the performance of these services, the Contractor employees are

not to be accompanied in the work area by acquaintances, family members, associates or any other

person(s) who are not a current, authorized employee(s) of the Contractor.

25. EMPLOYEE GUIDELINES: The Contractor shall use only qualified personnel to provide the

required services. The Contractor shall be responsible for insuring that employees abide by all rules

and regulations set forth for the buildings and grounds.


26. INSURANCE COVERAGE: During the term of the Contract, the Contractor and the Contractor’s

subcontractors at their sole cost and expense shall provide commercial insurance of such type and

with such terms and limits as may be reasonably associated with the Contract. The Authority will

require proof of such insurance prior to Contract execution and during the term of the Contract.

27. CONTINUANCE OF WORK: In the event Contract term expires and Contractor has not

completed assignments that are underway, the Authority may, at its discretion, allow Contractor to

complete those assignments if the following conditions are met:

a. Contractor requests to complete the assignments that are underway.

b. The prices in Contract remain in effect until all work is completed.

c. All other contractual obligations and conditions remain the same, including insurance

requirements.

This provision does not apply to any continuance of work which would extend the Contract term

(inclusive of any extensions by the Authority) beyond five years from the date of Contract award.

28. PROFESSIONAL LIABILITY INSURANCE: The Contractor shall furnish the following

insurance coverage issued by an insurance company licensed to conduct business in the State of

Connecticut. Insurance coverage shall remain in full force for the duration of this Contract including

any and all extensions or renewals thereof. All renewal certificates shall be furnished at least thirty

(30) days prior to policy expiration.

Professional Liability Insurance. A policy of Errors and Omissions Liability Insurance appropriate to

the Respondent’s profession. Coverage should be for a professional error, act, or omission arising

out of the scope of services described herein, with the following minimum coverage:

• $1,000,000 per Claim/Aggregate

If the Professional Liability Insurance policy is written on a claims made form, the Contractor

warrants continuation of coverage, either through policy renewals or the purchase of an extended

reporting period (“tail”) for a minimum of three years from the date of completion of the work

authorized by the Contract. In the event that the Contractor is authorized to engage subcontractors,

each subcontractor shall provide evidence of separate professional liability coverage equal to the

levels specified above, unless such requirement is waived in writing by the Authority.]


HOUSING AUTHORITY OF THE CITY OF HARTFORD

ACKNOWLEDGEMENT OF ADDENDA FORM Proposer has received the following Addenda, the receipt of which is hereby acknowledged: Addendum Number __________ Date Received: __________________ Addendum Number __________ Date Received: __________________ Addendum Number __________ Date Received: __________________ Addendum Number __________ Date Received: __________________ Addendum Number __________ Date Received: __________________

(Company Name)

(Signature)

Previous edition is obsolete form HUD 50071 (01/14) ref. Handbooks 7417.1, 7475.13, 7485.1, & 7485.3

OMB Approval No. 2577-0157 (Exp. 01/31/2017)

Certification of Payments to Influence Federal Transactions

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

Applicant Name

Program/Activity Receiving Federal Grant Funding

The undersigned certifies, to the best of his or her knowledge and belief, that:

(1) No Federal appropriated funds have been paid or will be

paid, by or on behalf of the undersigned, to any person for

influencing or attempting to influence an officer or employee of

an agency, a Member of Congress, an officer or employee of

Congress, or an employee of a Member of Congress in connec-

tion with the awarding of any Federal contract, the making of any

Federal grant, the making of any Federal loan, the entering into

of 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 have

been paid or will be paid to any person for influencing or

attempting to influence an officer or employee of an agency, a

Member of Congress, an officer or employee of Congress, or an

employee of a Member of Congress in connection with this

Federal contract, grant, loan, or cooperative agreement, the

undersigned shall complete and submit Standard Form-LLL,

Disclosure Form to Report Lobbying, in accordance with its

instructions.

(3) The undersigned shall require that the language of this

certification be included in the award documents for all subawards

at all tiers (including subcontracts, subgrants, and contracts

under grants, loans, and cooperative agreements) and that all

sub 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 statements. Conviction 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

Signature Date (mm/dd/yyyy)


Standard Form for Non-Construction Contracts [Greater than $150,000, without maintenance]

Housing Authority of the Standard Form for Non-Construction Contracts City of Hartford Page 1 of 1 [use with 5370-C-I] (10/2017)

STANDARD FORM FOR NON-CONSTRUCTION CONTRACT [Greater than $150,000, without maintenance]

HOUSING AUTHORITY OF THE CITY OF HARTFORD FOR PROJECT NO: {CONTRACT-NUMBER}

{NAME-OF-SERVICE}

This contract is dated {DATE}, and is between {CONTRACTOR-IN-ALL-CAPS}, a {STATE} {ENTITY-TYPE}, ("Contractor") and HOUSING AUTHORITY OF THE CITY OF HARTFORD, a public body corporate and politic organized and existing pursuant to Conn. Gen. Stat. §8‐40, et seq. ("HA").

The parties agree as follows:

1. CONTRACT DOCUMENTS. In addition to this document, the following documents constitute part of this contract:

(i) HUD Form HUD-5370-C, Section I, General Conditions for Non-Construction Contracts (“HUD-5370-C”); (ii) HA’s Special Conditions for Non-Construction Contracts;(iii) HA’s Request for Proposals for this service, with amendments, #{RFP-NUMBER} (“RFP”); and (iv) Contractor’s Proposal Response for this service, dated {RFP-RESPONSE-DATE} (“Response”).

2. SCOPE OF SERVICES. Contractor shall perform all work {specified in the RFP’s Scope of Services OR in accordance with Exhibit A, Scope of Services and all other requirements stated in the RFP’s Scope of Services}.

3. TERM. The term of this contract is {TERM} years (“Term”). HA may extend this contract {EXTENSIONS} times, for one year each.

4. COMPENSATION. HA shall pay Contractor in accordance with the rates set forth in {Contractor’s Response OR Exhibit B, Pricing & Compensation Plan}.

5. AUTHORITY. The person signing this contract is authorized by the Contractor to enter into this contract on behalf of the Contractor.

The parties are signing this contract as of the date stated in the introductory clause.

{CONTRACTOR}

By {Name}{Title}


By Annette Sanderson Executive Director


Special Conditions for Non-Construction Contracts [Greater than $150,000, without maintenance]

Housing Authority of the Special Conditions for Non-Construction Contracts City of Hartford Page 1 of 4 [use with 5370-C-I] (4/2018)


Special Conditions for Non-Construction Contracts [Greater than $150,000, without maintenance]

TABLE OF CONTENTS

General 11. Contract 12. Definitions 1

Term and Termination 13. Contract Term 1

Compensation 14. Performance Standard 15. Payments 1

Recordkeeping & Reports 16. Establishment and Maintenance of Records 17. Status Reports 1

Insurance 18. Liability Coverage 19. Worker’s Compensation Insurance 210. Insurance Conditions 2

General Indemnity 211. HA Indemnification 2

Default and Remedies 312. Additional Defaults 313. Remedies 3

Hiring Error! Bookmark not defined.14. Youth and Resident Contact 315. Hiring Indemnity 3

Conflicts of Interest 316. Family Conflicts 3

Miscellaneous 317. Communications 318. Licenses 419. Sales Tax 420. Entire Agreement 421. Choice of Law 422. Forum & Venue 4

General

1. Contract (a) The Housing Authority of the City of Hartford (“HA”)

uses these special conditions in contracts for professional services that are fully or partially funded by the U.S. Department of Housing and Urban Development (HUD).

(b) HUD Form HUD-5370-C, Section I, General Conditions for Non-Construction Contracts (“HUD-5370-C”) constitutes part of this contract.

(c) If there is a conflict between any two provisions in the documents that constitute this contract, the provision that first appears in the documents listed below, governs: (i) the main contract document incorporating

these special conditions; (ii) HUD-5370-C; (iii) these special conditions; (iv) any HA solicitation, with amendments

(“Solicitation”); then (v) Contractor’s proposal or bid response to the

Solicitation.

2. Definitions (a) Terms not defined in these special conditions are

found in the HUD-5370-C or the main contract document incorporating these special conditions.

(b) “Contractor” includes contractor’s officers, employees, agents, and subcontractors.

Term and Termination

3. Contract Term (a) Contractor shall begin performance on the date of this

contract. (b) HA may extend the term of this contract at its sole

discretion if Contractor’s service is essential to a project’s completion.

Compensation

4. Performance Standard Contractor shall make its best effort to provide its service using the highest professional skill and competence.

5. Payments HA shall pay Contractor for invoices submitted to HA, for service done to HA’s satisfaction, within 60 days.

Recordkeeping & Reports

6. Establishment and Maintenance of Records Contractor shall establish and maintain fiscal control and accounting procedures that assure proper accounting for all funds paid by HA to Contractor.

7. Status Reports Contractor shall furnish HA with such information and reports concerning the progress and management of this contract as HA may require from time to time.

Insurance

8. Liability Coverage Contractor shall have the follow insurance: (i) Comprehensive General Liability Insurance,

(including contractual liability insurance). Limits not less than $1,000,000 for all damages for any


bodily injury sustained as the result of any occurrence, and $1,000,000 for all damages of property sustained by each person as the result of any one occurrence, and $1,000,000 for all property damage sustained as a result of any one occurrence, or a limit of not less than $3,000,000 Combined Single Limit (CSL).

(ii) Professional Liability Insurance. Limits of not less than $1,000,000 per occurrence, covering acts, errors and omissions arising out of the rendering of, or failure to render, professional services related to this contract if applicable to the services provided under contract.

(iii) Fidelity/Crime Insurance. Limits of not less than $1,000,000 per occurrence, which covers claims incurred as a result of Contractor’s employees’ dishonesty, burglary, theft, fraud, or destruction of property if applicable to the services provided under contract.

(iv) Automobile Liability Insurance. Limits not less than $1,000,000 for all damages for any bodily injury sustained by each person as a result of any occurrence, and $1,000,000 for damage because of bodily injury sustained by two or more persons as the result of any occurrence, and $100,000 for property damage sustained as the result of any one occurrence, or a limit of not less than $1,250,000 Combined Single Limit (CSL).

9. Worker’s Compensation Insurance Contractor shall maintain Worker’s Compensation Insurance for its employees in accordance with Connecticut’s General Statutes or in accordance with the statutes of Contractor’s home state. In addition to any other requirements related to worker’s compensation insurance, if Contractor is a sole proprietor, a single member limited liability company or otherwise has no employees, Contractor shall maintain Worker’s Compensation Insurance as if it were an “employer” as such term is defined in and in accordance with Connecticut’s General Statutes or as if it were an employer in accordance with the statutes of Contractor’s home state.

10. Insurance Conditions (a) Contractor shall purchase insurance coverage from an

insurance company licensed to conduct business in Connecticut or a company approved by HA.

(b) Contractor shall ensure all required insurance policies provide occurrence-based coverage.

(c) HA may review the insurance requirements and coverages from time to time. Contractor agrees to

comply with HA’s reasonable new or modified insurance requirements.

(d) Contractor shall pay all insurance deductibles, if any, or indemnify HA from paying Contractor’s insurance deductibles, or both.

(e) Contractor agrees that the amount of insurance required does not, in any way, limit the liability of Contractor by virtue of its obligation to indemnify HA, so that all claims resulting in a settlement or judgment or other claim-related payment in excess of the coverage amounts required, if any, are the sole responsibility of Contractor to pay, to indemnify HA from paying, or both.

(f) Contractor shall ensure that following phrase is placed by its insurer in the ACORD Certificate of Insurance form’s comments section: “The Housing Authority of the City of Hartford is named as an Additional Insured.”

(g) Contractor shall furnish HA all insurance renewal certificates at least thirty (30) days prior to policy expiration.

(h) Contractor shall maintain insurance coverage in full force for the duration of this contract, including extensions or renewals. Contractor’s cancellation or termination of insurance policies required by this contract without immediate replacement is a default. HA may cure such a default by procuring insurance on behalf of Contractor, at Contractor’s expense.

(i) Contractor shall ensure that Contractor’s insurer will provide HA 30-days’ notice before cancellation or decrease in coverage, of any insurance policy required.

General Indemnity

11. HA Indemnification (a) In this section, the following definitions apply:

“Litigation Expense” means any reasonable out-of-pocket expense incurred in defending a Proceeding or in any related investigation or negotiation, including court filing fees, court costs, arbitration fees, witness fees, and attorneys’ and other professionals’ fees and disbursements. “Losses” means any amount awarded in, or paid in settlement of, any Proceeding, including any interest and any Litigation Expenses. “Proceeding” means any judicial, administrative, or arbitration action, suit, claim, investigation, or proceeding.

(b) Contractor shall indemnify HA against all Losses arising out of a Proceeding against HA related to this Contract and initiated by a non-party to this contract (“Claim”), except to the extent that HA negligently or intentionally caused those Losses.

(c) HA must promptly notify Contractor of that Claim and deliver to Contractor a copy of all legal pleadings with respect to the Claim.


(d) To assume the defense of a Claim, Contractor must notify HA that it is doing so. Promptly thereafter, Contractor shall retain to represent it in the Claim, independent legal counsel that is reasonably acceptable to HA.

(e) HA is entitled to participate in the defense of a Claim. HA may defend a Claim with counsel of its own choosing and without Contractor participating if (1) Contractor notifies HA that it does not wish to defend the Claim, (2) by midnight at the end of the tenth business day after HA notifies Contractor of the Claim Contractor fails to notify HA that it wishes to defend the Claim, or (3) representation of Contractor and HA by the same counsel would, in the opinion of that counsel, constitute a conflict of interest.

(f) Contractor shall pay any Litigation Expenses that HA incurs in connection with defense of the Claim before Contractor assumes the defense of that Claim, except with respect to any period during which HA fails to timely notify Contractor of that Claim. Contractor will not be liable for any Litigation Expenses that HA incurs in connection with defense of a Claim after Contractor assumes the defense of that Claim, other than Litigation Expenses that HA incurs in employing counsel in accordance with subsection (d), which Litigation Expenses Contractor shall pay promptly as they are incurred.

(g) After Contractor assumes the defense of a Claim, Contractor may contest, pay, settle, or compromise the Claim at its discretion, except that it may not compromise or settle the Claim without the consent of HA unless that compromise or settlement (1) does not entail any admission on the part of HA that it violated any law or infringed the rights of any Person, (2) has no effect on any other claim that may be brought against HA, (3) provides as the claimant’s sole relief monetary damages that are paid in full by Contractor, and (4) requires that the claimant release HA from all liability in respect of the Claim.

Default and Remedies

12. Additional Defaults (a) Default includes, in addition to those stated elsewhere

in this contract: (i) a competent authority, such as a government

official or a Certified Public Accountant, determines that Contractor’s management of, or any accounting for, its funding, as relates to this contract, is improper, inadequate, or illegal; and

(ii) a court having jurisdiction enters a decree or order adjudging Contractor bankrupt or insolvent, or approving as properly filed Contractor’s petition seeking reorganization, readjustment, arrangement, composition, or similar relief for Contractor under federal

bankruptcy laws, or any other similar applicable law.

(b) HA may waive any default. HA’s waiver as to a particular default does not constitute a waiver of any other default, whether of the same or different type, and whether preceding or succeeding the waived default. HA’s waiver of a default is not effective unless written and signed by HA’s Executive Director.

13. Remedies (a) HA may elect to pursue any one or more of the

following remedies, in any combination or sequence, for any default not waived by HA: (i) any action as HA deems necessary, including the

temporary withholding or reduction of payment;

(ii) suspend program operation; (iii) require Contractor to cure such default to HA’s

satisfaction; and (iv) terminate this contract.

(b) HA’s selected remedy does not prohibit HA from pursuing any other remedy and does not constitute a waiver by HA of any other right or remedy.

14. Youth and Resident Contact (a) Contractor represents that it has appropriate hiring

policies and screening procedures for employees who will be working with youths and public housing residents.

(b) Contractor shall permit HA to review Contractor’s hiring policies and screening procedures for employees who will be working with youths and public housing residents.

(c) HA may terminate this agreement if (i) Contractor’s performance includes working with youths and public housing residents; (ii) HA determines that Contractor’s hiring policy is not appropriate; and (iii) Contractor fails to promptly modify its hiring policy.

15. Hiring Indemnity Contractor shall indemnify HA for any failure of Contractor’s hiring policies and screening procedures.

Conflicts of Interest

16. Family Conflicts (a) Contractor represents that it has disclosed to HA any

immediate family member (parent, parent-in-law, spouse, child, brother, sister, brother-in law, sister-in-law, or stepparent) of any of its employees, agents, or subcontractors, who is employed by HA.

Miscellaneous

17. Communications (a) Both parties agree to write all notices, including

demands, requests, instructions, approvals, proposals, and claims.


(b) HA will deliver all notices to Contractor by delivering them to Contractor’s registered business address or by mailing them in sealed, postage-paid envelopes, addressed to Contractor’s registered mailing address.

(c) Contractor may specify a different address for notices by delivering an address change notice to HA.

(d) Contractor will deliver all notices to HA by delivering them to Contracting Officer at HA’s main office or by mailing them in sealed, postage-paid envelopes, addressed to Contracting Officer at HA’s main office.

(e) HA may specify a different address for notices by delivering an address change notice to Contractor.

18. Licenses Contractor and all subcontractors shall hold, at all times, all licenses required by the State of Connecticut and the City of Hartford, if any.

19. Sales Tax HA shall provide Contractor the necessary tax-exempt information when required.

20. Entire Agreement (a) This contract constitutes the final agreement between

the parties. It is the complete and exclusive expression of the parties’ agreement on the matters contained in this contract. All prior and contemporaneous negotiations and agreements between the parties on matters contain in this contract are expressly merged into and superseded by this contract. The provisions of this contract may not be explained, supplemented, or qualified through evidence of trade usage or a prior course of dealings.

(b) In entering into this contract, neither party has relied upon any statement, representation, or agreement of the other party, except for those expressly contained in this contract.

21. Choice of Law (a) The laws of the State of Connecticut, without giving

effect to its conflicts of law principles, govern all maters arising out of or relating to the contract, including its validity, interpretation, construction, performance, and enforcement.

22. Forum & Venue (a) Any party bringing a legal action or proceeding against

any other party arising out of or relating to this contract may bring the legal action or proceeding in the United States District Court for the District of Connecticut or in any court of the State of Connecticut sitting in Hartford.

(b) Each party waives, to the fullest extent permitted by law: (i) any objection which it may now or later have to

the laying of venue of any legal action or proceeding arising out of or relating to this contract brought in the United States District Court for the District of Connecticut or in any court of the State of Connecticut sitting in Hartford; and

(ii) any claim that any action or proceeding brought in any such court has been brought in an inconvenient forum.

(c) For the purposes of all legal actions and proceedings arising out of or relating to this contract, each party to this contract submits to the nonexclusive jurisdiction of any court of: (i) the United States District Court for the District

of Connecticut and its appellate courts; and (ii) the State of Connecticut sitting in Hartford and

its appellate courts. 23. HACH Policies - Fraud, Ethics and Conflicts of Interest

The HACH Fraud Policy and the HACH Ethics and Conflicts of Interest Policy are hereby incorporated into this Contract. Contractor shall comply with their provisions as applicable. Copies of the policies are available upon request.

General Conditions for Non-Construction Contracts Section I – (With or without Maintenance Work)

U.S. Department of Housing and Urban Development Office of Public and Indian Housing Office of Labor Relations OMB Approval No. 2577-0157 (exp. 1/01/2014)

Public Reporting Burden for this collection of information is estimated to average 0.08 hours per response, including the time for reviewing instructions, searching existing data sources, gathering and maintaining the data needed, and completing and reviewing the collection of information. Send comments regarding this burden estimate or any other aspect of this collection of information, including suggestions for reducing this burden, to the Reports Management Officer, Office of Information Policies and Systems, U.S. Department of Housing and Urban Development, Washington, D.C. 20410-3600; and to the Office of Management and Budget, Paperwork Reduction Project (2577-0157), Washington, D.C. 20503. Do not send this completed form to either of these addressees.

Applicability. This form HUD-5370-C has 2 Sections. These Sections must be inserted into non-construction contracts as described below:

1) Non-construction contracts (without maintenance) greater than $100,000 - use Section I;

2) Maintenance contracts (including nonroutine maintenance as defined at 24 CFR 968.105) greater than $2,000 but not more than $100,000 - use Section II; and

3) Maintenance contracts (including nonroutine maintenance), greater than $100,000 – use Sections I and II.

==================================================== Section I - Clauses for All Non-Construction Contracts greater than $100,000 ==================================================== 1. Definitions The following definitions are applicable to this contract:

(a) "Authority or Housing Authority (HA)" means the Housing Authority.

(b) "Contract" means the contract entered into between the Authority and the Contractor. It includes the contract form, the Certifications and Representations, these contract clauses, and the scope of work. It includes all formal changes to any of those documents by addendum, Change Order, or other modification.

(c) "Contractor" means the person or other entity entering into the contract with the Authority to perform all of the work required under the contract.

(d) "Day" means calendar days, unless otherwise stated. (e) "HUD" means the Secretary of Housing and Urban

development, his delegates, successors, and assigns, and the officers and employees of the United States Department of Housing and Urban Development acting for and on behalf of the Secretary.

2. Changes

(a) The HA may at any time, by written order, and without notice to the sureties, if any, make changes within the general scope of this contract in the services to be performed or supplies to be delivered.

(b) If any such change causes an increase or decrease in the hourly rate, the not-to-exceed amount of the contract, or the time required for performance of any part of the work under this contract, whether or not changed by the order, or otherwise affects the conditions of this contract, the HA shall make an equitable adjustment in the not-to-exceed amount, the hourly rate, the delivery schedule, or other affected terms, and shall modify the contract accordingly.

(c) The Contractor must assert its right to an equitable adjustment under this clause within 30 days from the date of receipt of the written order. However, if the HA decides that the facts justify it, the HA may receive and act upon a

proposal submitted before final payment of the contract. (d) Failure to agree to any adjustment shall be a dispute under

clause Disputes, herein. However, nothing in this clause shall excuse the Contractor from proceeding with the contract as changed.

(e) No services for which an additional cost or fee will be charged by the Contractor shall be furnished without the prior written consent of the HA.

3. Termination for Convenience and Default

(a) The HA may terminate this contract in whole, or from time to time in part, for the HA's convenience or the failure of the Contractor to fulfill the contract obligations (default). The HA shall terminate by delivering to the Contractor a written Notice of Termination specifying the nature, extent, and effective date of the termination. Upon receipt of the notice, the Contractor shall: (i) immediately discontinue all services affected (unless the notice directs otherwise); and (ii) deliver to the HA all information, reports, papers, and other materials accumulated or generated in performing this contract, whether completed or in process.

(b) If the termination is for the convenience of the HA, the HA shall be liable only for payment for services rendered before the effective date of the termination.

(c) If the termination is due to the failure of the Contractor to fulfill its obligations under the contract (default), the HA may (i) require the Contractor to deliver to it, in the manner and to the extent directed by the HA, any work as described in subparagraph (a)(ii) above, and compensation be determined in accordance with the Changes clause, paragraph 2, above; (ii) take over the work and prosecute the same to completion by contract or otherwise, and the Contractor shall be liable for any additional cost incurred by the HA; (iii) withhold any payments to the Contractor, for the purpose of off-set or partial payment, as the case may be, of amounts owed to the HA by the Contractor.

(d) If, after termination for failure to fulfill contract obligations (default), it is determined that the Contractor had not failed, the termination shall be deemed to have been effected for the convenience of the HA, and the Contractor shall been titled to payment as described in paragraph (b) above.

(e) Any disputes with regard to this clause are expressly made subject to the terms of clause titled Disputes herein.

4. Examination and Retention of Contractor's Records

(a) The HA, HUD, or Comptroller General of the United States, or any of their duly authorized representatives shall, until 3 years after final payment under this contract, have access to and the right to examine any of the Contractor's directly pertinent books, documents, papers, or other records involving transactions related to this contract for the purpose of making audit, examination, excerpts, and transcriptions.

Section I - Page 1 of 6

form HUD-5370-C (10/2006)

(b) The Contractor agrees to include in first-tier subcontracts under this contract a clause substantially the same as paragraph (a) above. "Subcontract," as used in this clause, excludes purchase orders not exceeding $10,000.

(c) The periods of access and examination in paragraphs (a) and (b) above for records relating to: (i) appeals under the clause titled Disputes; (ii) litigation or settlement of claims arising from the performance of this contract; or, (iii) costs and expenses of this contract to which the HA, HUD, or Comptroller General or any of their duly authorized representatives has taken exception shall continue until disposition of such appeals, litigation, claims, or exceptions.

5. Rights in Data (Ownership and Proprietary Interest)

The HA shall have exclusive ownership of, all proprietary interest in, and the right to full and exclusive possession of all information, materials and documents discovered or produced by Contractor pursuant to the terms of this Contract, including but not limited to reports, memoranda or letters concerning the research and reporting tasks of this Contract.

6. Energy Efficiency

The contractor shall comply with all mandatory standards and policies relating to energy efficiency which are contained in the energy conservation plan issued in compliance with the Energy Policy and Conservation Act (Pub.L. 94-163) for the State in which the work under this contract is performed.

7. Disputes

(a) All disputes arising under or relating to this contract, except for disputes arising under clauses contained in Section III, Labor Standards Provisions, including any claims for damages for the alleged breach there of which are not disposed of by agreement, shall be resolved under this clause.

(b) All claims by the Contractor shall be made in writing and submitted to the HA. A claim by the HA against the Contractor shall be subject to a written decision by the HA.

(c) The HA shall, with reasonable promptness, but in no event in no more than 60 days, render a decision concerning any claim hereunder. Unless the Contractor, within 30 days after receipt of the HA's decision, shall notify the HA in writing that it takes exception to such decision, the decision shall be final and conclusive.

(d) Provided the Contractor has (i) given the notice within the time stated in paragraph (c) above, and (ii) excepted its claim relating to such decision from the final release, and (iii) brought suit against the HA not later than one year after receipt of final payment, or if final payment has not been made, not later than one year after the Contractor has had a reasonable time to respond to a written request by the HA that it submit a final voucher and release, whichever is earlier, then the HA's decision shall not be final or conclusive, but the dispute shall be determined on the merits by a court of competent jurisdiction.

(e) The Contractor shall proceed diligently with performance of this contract, pending final resolution of any request for relief, claim, appeal, or action arising under the contract, and comply with any decision of the HA.

8. Contract Termination; Debarment

A breach of these Contract clauses may be grounds for termination of the Contract and for debarment or denial of participation in HUD programs as a Contractor and a subcontractor as provided in 24 CFR Part 24.

9. Assignment of Contract

The Contractor shall not assign or transfer any interest in this contract; except that claims for monies due or to become due from the HA under the contract may be assigned to a bank, trust company, or other financial institution. If the Contractor is a partnership, this contract shall inure to the benefit of the surviving or remaining member(s) of such partnership approved by the HA.

10. Certificate and Release

Prior to final payment under this contract, or prior to settlement upon termination of this contract, and as a condition precedent thereto, the Contractor shall execute and deliver to the HA a certificate and release, in a form acceptable to the HA, of all claims against the HA by the Contractor under and by virtue of this contract, other than such claims, if any, as may be specifically excepted by the Contractor in stated amounts set forth therein.

11. Organizational Conflicts of Interest

(a) The Contractor warrants that to the best of its knowledge and belief and except as otherwise disclosed, it does not have any organizational conflict of interest which is defined as a situation in which the nature of work under this contract and a contractor's organizational, financial, contractual or other interests are such that: (i) Award of the contract may result in an unfair

competitive advantage; or (ii) The Contractor's objectivity in performing the contract

work may be impaired. (b) The Contractor agrees that if after award it discovers an

organizational conflict of interest with respect to this contract or any task/delivery order under the contract, he or she shall make an immediate and full disclosure in writing to the Contracting Officer which shall include a description of the action which the Contractor has taken or intends to take to eliminate or neutralize the conflict. The HA may, however, terminate the contract or task/delivery order for the convenience of the HA if it would be in the best interest of the HA.

(c) In the event the Contractor was aware of an organizational conflict of interest before the award of this contract and intentionally did not disclose the conflict to the Contracting Officer, the HA may terminate the contract for default.

(d) The terms of this clause shall be included in all subcontracts and consulting agreements wherein the work to be performed is similar to the service provided by the prime Contractor. The Contractor shall include in such subcontracts and consulting agreements any necessary provisions to eliminate or neutralize conflicts of interest.

12. Inspection and Acceptance

(a) The HA has the right to review, require correction, if necessary, and accept the work products produced by the Contractor. Such review(s) shall be carried out within 30 days so as to not impede the work of the Contractor. Any


Form HUD-5370-C (10/2006)

product of work shall be deemed accepted as submitted if the HA does not issue written comments and/or required corrections within 30 days from the date of receipt of such product from the Contractor.

(b) The Contractor shall make any required corrections promptly at no additional charge and return a revised copy of the product to the HA within 7 days of notification or a later date if extended by the HA.

(c) Failure by the Contractor to proceed with reasonable promptness to make necessary corrections shall be a default. If the Contractor's submission of corrected work remains unacceptable, the HA may terminate this contract (or the task order involved) or reduce the contract price or cost to reflect the reduced value of services received.

13. Interest of Members of Congress

No member of or delegate to the Congress of the United States of America or Resident Commissioner shall be admitted to any share or part of this contract or to any benefit to arise there from, but this provision shall not be construed to extend to this contract if made with a corporation for its general benefit.

14. Interest of Members, Officers, or Employees and Former Members, Officers, or Employees

No member, officer, or employee of the HA, no member of the governing body of the locality in which the project is situated, no member of the governing body in which the HA was activated, and no other pubic official of such locality or localities who exercises any functions or responsibilities with respect to the project, shall, during his or her tenure, or for one year thereafter, have any interest, direct or indirect, in this contract or the proceeds thereof.

15. Limitation on Payments to Influence Certain Federal Transactions

(a) Definitions. As used in this clause:

"Agency", as defined in 5 U.S.C. 552(f), includes Federal executive departments and agencies as well as independent regulatory commissions and Government corporations, as defined in 31 U.S.C. 9101(1).

"Covered Federal Action" means any of the following Federal actions:

(i) The awarding of any Federal contract; (ii) The making of any Federal grant; (iii) The making of any Federal loan; (iv) The entering into of any cooperative agreement; and, (v) The extension, continuation, renewal, amendment, or

modification of any Federal contract, grant, loan, or cooperative agreement.

Covered Federal action does not include receiving from an agency a commitment providing for the United States to insure or guarantee a loan.

"Indian tribe" and "tribal organization" have the meaning provided in section 4 of the Indian Self-Determination and Education Assistance Act (25 U.S.C. 450B). Alaskan Natives are included under the definitions of Indian tribes in that Act.

"Influencing or attempting to influence" means making, with the intent to influence, any communication to or appearance before an officer or employee of any agency, a Member of Congress, an officer or employee of Congress, or an employee of a Member of Congress in connection with any covered Federal action.

"Local government" means a unit of government in a State and, if chartered, established, or otherwise recognized by a State for the performance of a governmental duty, including a local public authority, a special district, an intrastate district, a council of governments, a sponsor group representative organization, and any other instrumentality of a local government.

"Officer or employee of an agency" includes the following individuals who are employed by an agency:

(i) An individual who is appointed to a position in the Government under title 5, U.S.C., including a position under a temporary appointment;

(ii) A member of the uniformed services as defined in section 202, title 18, U.S.C.;

(iii) A special Government employee as defined in section 202, title 18, U.S.C.; and,

(iv) An individual who is a member of a Federal advisory committee, as defined by the Federal Advisory Committee Act, title 5, appendix 2.

“Person" means an individual, corporation, company, association, authority, firm, partnership, society, State, and local government, regardless of whether such entity is operated for profit or not for profit. This term excludes an Indian tribe, tribal organization, or other Indian organization with respect to expenditures specifically permitted by other Federal law.

"Recipient" includes all contractors, subcontractors at any tier, and subgrantees at any tier of the recipient of funds received in connection with a Federal contract, grant, loan, or cooperative agreement. The term excludes an Indian tribe, tribal organization, or any other Indian organization with respect to expenditures specifically permitted by other Federal law.

"Regularly employed means, with respect to an officer or employee of a person requesting or receiving a Federal contract, grant, loan, or cooperative agreement, an officer or employee who is employed by such person for at least 130 working days within one year immediately preceding the date of the submission that initiates agency consideration of such person for receipt of such contract, grant, loan, or cooperative agreement. An officer or employee who is employed by such person for less than 130 working days within one year immediately preceding the date of submission that initiates agency consideration of such person shall be considered to be regularly employed as soon as he or she is employed by such person for 130 working days.

"State" means a State of the United States, the District of Columbia, the Commonwealth of Puerto Rico, a territory or possession of the United States, an agency or instrumentality of a State, and a multi-State, regional, or interstate entity having governmental duties and powers. (b) Prohibitio n.

(i) Section 1352 of title 31, U.S.C. provides in part that no appropriated funds may be expended by the recipient of a Federal contract, grant, loan, or cooperative agreement to pay any person for influencing or attempting to influence an officer or employee of any agency, a Member of Congress, an officer or employee of Congress, or an employee of a Member of Congress in connection with any of the following covered Federal actions: the awarding of any Federal contract, the making of any Federal grant, the making of any Federal loan, the entering into of any cooperative agreement, and the extension, continuation, renewal, amendment, or modification of any Federal contract, grant, loan, or cooperative agreement.

(ii) The prohibition does not apply as follows:


Form HUD-5370-C (10/2006)

(1) Agency and legislative liaison by Own Employees. (a) The prohibition on the use of appropriated funds, in paragraph (i) of this section, does not apply in the case of a payment of reasonable compensation made to an officer or employee of a person requesting or receiving a Federal contract, grant, loan, or cooperative agreement, if the payment is for agency and legislative activities not directly related to a covered Federal action. (b) For purposes of paragraph (b)(i)(1)(a) of this clause, providing any information specifically requested by an agency or Congress is permitted at any time. (c) The following agency and legislative liaison activities are permitted at any time only where they are not related to a specific solicitation for any covered Federal action: (1) Discussing with an agency (including individual demonstrations) the qualities and characteristics of the person's products or services, conditions or terms of sale, and service capabilities; and,

(2) Technical discussions and other activities regarding the application or adaptation of the person's products or services for an agency's use.

(d) The following agency and legislative liaison activities are permitted where they are prior to formal solicitation of any covered Federal action:

(1) Providing any information not specifically requested but necessary for an agency to make an informed decision about initiation of a covered Federal action;

(2) Technical discussions regarding the preparation of an unsolicited proposal prior to its official submission; and

(3) Capability presentations by persons seeking awards from an agency pursuant to the provisions of the Small Business Act, as amended by Public Law 95-507 and other subsequent amendments.

(e) Only those activities expressly authorized by subdivision (b)(ii)(1)(a) of this clause are permitted under this clause.

(2) Professional and technical services. (a) The prohibition on the use of appropriated

funds, in subparagraph (b)(i) of this clause, does not apply in the case of- (i) A payment of reasonable compensation

made to an officer or employee of a person requesting or receiving a covered Federal action or an extension, continuation, renewal, amendment, or modification of a covered Federal action, if payment is for professional or technical services rendered directly in the preparation, submission, or negotiation of any bid, proposal, or application for that Federal action or for meeting requirements imposed by or pursuant to law as a condition for receiving that Federal action.

(ii) Any reasonable payment to a person, other than an officer or employee of a

person requesting or receiving a covered Federal action or an extension, continuation, renewal, amendment, or modification of a covered Federal action if the payment is for professional or technical services rendered directly in the preparation, submission, or negotiation of any bid, proposal, or application for that Federal action or for meeting requirements imposed by or pursuant to law as a condition for receiving that Federal action. Persons other than officers or employees of a person requesting or receiving a covered Federal action include consultants and trade associations.

(b) For purposes of subdivision (b)(ii)(2)(a) of clause, "professional and technical services" shall be limited to advice and analysis directly applying any professional or technical discipline.

(c) Requirements imposed by or pursuant to law as a condition for receiving a covered Federal award include those required by law or regulation, or reasonably expected to be required by law or regulation, and any other requirements in the actual award documents.

(d) Only those services expressly authorized by subdivisions (b)(ii)(2)(a)(i) and (ii) of this section are permitted under this clause.

(iii) Selling activities by independent sales representatives.

(c) The prohibition on the use of appropriated funds, in subparagraph (b)(i) of this clause, does not apply to the following selling activities before an agency by independent sales representatives, provided such activities are prior to formal solicitation by an agency and are specifically limited to the merits of the matter: (i) Discussing with an agency (including individual

demonstration) the qualities and characteristics of the person's products or services, conditions or terms of sale, and service capabilities; and

(ii) Technical discussions and other activities regarding the application or adaptation of the person's products or services for an agency's use.

(d) Agreement. In accepting any contract, grant, cooperative agreement, or loan resulting from this solicitation, the person submitting the offer agrees not to make any payment prohibited by this clause.

(e) Penalties. Any person who makes an expenditure prohibited under paragraph (b) of this clause shall be subject to civil penalties as provided for by 31 U.S.C. 1352. An imposition of a civil penalty does not prevent the Government from seeking any other remedy that may be applicable.

(f) Cost Allowability. Nothing in this clause is to be interpreted to make allowable or reasonable any costs which would be unallowable or unreasonable in accordance with Part 31 of the Federal Acquisition Regulation (FAR), or OMB Circulars dealing with cost allowability for recipients of assistance agreements. Conversely, costs made specifically unallowable by the requirements in this clause will not be made allowable under any of the provisions of FAR Part 31 or the relevant OMB Circulars.


Form HUD-5370-C (10/2006)

16. Equal Employment Opportunity

During the performance of this contract, the Contractor agrees as follows: (a) The Contractor shall not discriminate against any employee

or applicant for employment because of race, color, religion, sex, or national origin.

(b) The Contractor shall take affirmative action to ensure that applicants are employed, and that employees are treated during employment without regard to their race, color, religion, sex, or national origin. Such action shall include, but not be limited to (1) employment; (2) upgrading; (3) demotion; (4) transfer; (5) recruitment or recruitment advertising; (6) layoff or termination; (7) rates of pay or other forms of compensation; and (8) selection for training, including apprenticeship.

(c) The Contractor shall post in conspicuous places available to employees and applicants for employment the notices to be provided by the Contracting Officer that explain this clause.

(d) The Contractor shall, in all solicitations or advertisements for employees placed by or on behalf of the Contractor, state that all qualified applicants will receive consideration for employment without regard to race, color, religion, sex, or national origin.

(e) The Contractor shall send, to each labor union or representative of workers with which it has a collective bargaining agreement or other contract or understanding, the notice to be provided by the Contracting Officer advising the labor union or workers' representative of the Contractor's commitments under this clause, and post copies of the notice in conspicuous places available to employees and applicants for employment.

(f) The Contractor shall comply with Executive Order 11246, as amended, and the rules, regulations, and orders of the Secretary of Labor.

(g) The Contractor shall furnish all information and reports required by Executive Order 11246, as amended and by rules, regulations, and orders of the Secretary of Labor, or pursuant thereto. The Contractor shall permit access to its books, records, and accounts by the Secretary of Labor for purposes of investigation to ascertain compliance with such rules, regulations, and orders.

(h) In the event of a determination that the Contractor is not in compliance with this clause or any rule, regulation, or order of the Secretary of Labor, this contract may be canceled, terminated, or suspended in whole or in part, and the Contractor may be declared ineligible for further Government contracts, or federally assisted construction contracts under the procedures authorized in Executive Order 11246, as amended. In addition, sanctions may be imposed and remedies invoked against the Contractor as provided in Executive Order 11246, as amended, the rules, regulations, and orders of the Secretary of Labor, or as otherwise provided by law.

(i) The Contractor shall include the terms and conditions of this clause in every subcontract or purchase order unless exempted by the rules, regulations, or orders of the Secretary of Labor issued under Executive Order 11246, as amended, so that these terms and conditions will be binding upon each subcontractor or vendor. The Contractor shall take such action with respect to any subcontractor or purchase order as the Secretary of Housing and Urban Development or the Secretary of Labor may direct as a means of enforcing such provisions, including sanctions for noncompliance; provided that if the

Contractor becomes involved in, or is threatened with, litigation with a subcontractor or vendor as a result of such direction, the Contractor may request the United States to enter into the litigation to protect the interests of the United States.

17. Dissemination or Disclosure of Information

No information or material shall be disseminated or disclosed to the general public, the news media, or any person or organization without prior express written approval by the HA.

18. Contractor's Status

It is understood that the Contractor is an independent contractor and is not to be considered an employee of the HA, or assume any right, privilege or duties of an employee, and shall save harmless the HA and its employees from claims suits, actions and costs of every description resulting from the Contractor's activities on behalf of the HA in connection with this Agreement.

19. Other Contractors

HA may undertake or award other contracts for additional work at or near the site(s) of the work under this contract. The contractor shall fully cooperate with the other contractors and with HA and HUD employees and shall carefully adapt scheduling and performing the work under this contract to accommodate the additional work, heeding any direction that may be provided by the Contracting Officer. The contractor shall not commit or permit any act that will interfere with the performance of work by any other contractor or HA employee.

20. Liens

The Contractor is prohibited from placing a lien on HA's property. This prohibition shall apply to all subcontractors.

21. Training and Employment Opportunities for Residents in

the Project Area (Section 3, HUD Act of 1968; 24 CFR 135) (a) The work to be performed under this contract is subject to the

requirements of section 3 of the Housing and Urban Development Act of 1968, as amended, 12 U.S.C. 1701u (section 3). The purpose of section 3 is to ensure that employment and other economic opportunities generated by HUD assistance or HUD-assisted projects covered by section 3, shall, to the greatest extent feasible, be directed to low- and very low-income persons, particularly persons who are recipients of HUD assistance for housing.

(b) The parties to this contract agree to comply with HUD's regulations in 24 CFR Part 135, which implement section 3. As evidenced by their execution of this contract, the parties to this contract certify that they are under no contractual or other impediment that would prevent them from complying with the Part 135 regulations.

(c) The contractor agrees to send to each labor organization or representative of workers with which the contractor has a collective bargaining agreement or other understanding, if any, a notice advising the labor organization or workers' representative of the contractor's commitments under this section 3 clause, and will post copies of the notice in conspicuous places at the work site where both employees and applicants for training and employment positions can see the notice. The notice shall describe the section 3 preference, shall set forth minimum number and job titles subject to hire, availability of


Form HUD-5370-C (10/2006)

apprenticeship and training positions, the qualifications for each; and the name and location of the person(s) taking applications for each of the positions; and the anticipated date the work shall begin.

(d) The contractor agrees to include this section 3 clause in every subcontract subject to compliance with regulations in 24 CFR Part 135, and agrees to take appropriate action, as provided in an applicable provision of the subcontract or in this section 3 clause, upon a finding that the subcontractor is in violation of the regulations in 24 CFR Part 135. The contractor will not subcontract with any subcontractor where the contractor has notice or knowledge that the subcontractor has been found in violation of the regulations in 24 CFR Part 135.

(e) The contractor will certify that any vacant employment positions, including training positions, that are filled (1) after the contractor is selected but before the contract is executed, and (2) with persons other than those to whom the regulations of 24 CFR Part 135 require employment opportunities to be directed, were not filled to circumvent the contractor's obligations under 24 CFR Part 135.

(f) Noncompliance with HUD's regulations in 24 CFR Part 135 may result in sanctions, termination of this contract for default, and debarment or suspension from future HUD assisted contracts.

22. Procurement of Recovered Materials (a) In accordance with Section 6002 of the Solid Waste Disposal Act,

as amended by the Resource Conservation and Recovery Act, the Contractor shall procure items designated in guidelines of the Environmental Protection Agency (EPA) at 40 CFR Part 247 that contain the highest percentage of recovered materials practicable, consistent with maintaining a satisfactory level of competition. The Contractor shall procure items designated in the EPA guidelines that contain the highest percentage of recovered materials practicable unless the Contractor determines that such items: (1) are not reasonably available in a reasonable period of time; (2) fail to meet reasonable performance standards, which shall be determined on the basis of the guidelines of the National Institute of Standards and Technology, if applicable to the item; or (3) are only available at an unreasonable price.

(b) Paragraph (a) of this clause shall apply to items purchased under this contract where: (1) the Contractor purchases in excess of $10,000 of the item under this contract; or (2) during the preceding Federal fiscal year, the Contractor: (i) purchased any amount of the items for use under a contract that was funded with Federal appropriations and was with a Federal agency or a State agency or agency of a political subdivision of a State; and (ii) purchased a total of in excess of $10,000 of the item both under and outside that contract.


Form HUD-5370-C (10/2006)

General Conditions for Non-Construction Contracts

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

Section II – (With Maintenance Work) Office of Labor Relations OMB Approval No. 2577-0157 (exp. 1/01/2014)

Public Reporting Burden for this collection of information is estimated to average 0.08 hours per response, including the time for reviewing instructions, searching existing data sources, gathering and maintaining the data needed, and completing and reviewing the collection of information. Send comments regarding this burden estimate or any other aspect of this collection of information, including suggestions for reducing this burden, to the Reports Management Officer, Office of Information Policies and Systems, U.S. Department of Housing and Urban Development, Washington, D.C. 20410-3600; and to the Office of Management and Budget, Paperwork Reduction Project (2577-0157), Washington, D.C. 20503. Do not send this completed form to either of these addressees. Applicability. This form HUD-5370C has 2 Sections. These Sections must be inserted into non-construction contracts as described below:

1) Non-construction contracts (without maintenance) greater than $100,000 - use Section I;

2) Maintenance contracts (including nonroutine maintenance as defined at 24 CFR 968.105) greater than $2,000 but not more than $100,000 - use Section II; and

3) Maintenance contracts (including nonroutine maintenance), greater than $100,000 – use Sections I and II.

==================================================== Section II – Labor Standard Provisions for all Maintenance Contracts greater than $2,000 ==================================================== 1. Minimum Wages

(a) All maintenance laborers and mechanics employed under this Contract in the operation of the project(s) shall be paid unconditionally and not less often than semi-monthly, and without subsequent deduction (except as otherwise provided by law or regulations), the full amount of wages due at time of payment computed at rates not less than those contained in the wage determination of the Secretary of Housing and Urban Development which is attached hereto and made a part hereof. Such laborers and mechanics shall be paid the appropriate wage rate on the wage determination for the classification of work actually performed, without regard to skill. Laborers or mechanics performing work in more than one classification may be compensated at the rate specified for each classification for the time actually worked therein; provided, that the employer’s payroll records accurately set forth the time spent in each classification in which work is performed. The wage determination, including any additional classifications and wage rates approved by HUD under subparagraph 1(b), shall be posted at all times by the Contractor and its subcontractors at the site of the work in a prominent and accessible place where it can be easily seen by the workers.

(b) (i) Any class of laborers or mechanics which is not listed in the wage determination and which is to be employed under the Contract shall be classified in conformance with the wage determination. HUD shall approve an additional classification and wage rate only when the following criteria have been met:

(1) The work to be performed by the classification required is not performed by a classification in the wage determination;

(2) The classification is utilized in the area by the industry; and

(3) The proposed wage rate bears a reasonable relationship to the wage rates contained in the wage determination.

(ii) The wage rate determined pursuant to this paragraph shall be paid to all workers performing work

in the classification under this Contract from the first day on which work is performed in the classification.

2. Withholding of funds

The Contracting Officer, upon his/her own action or upon request of HUD, shall withhold or cause to be withheld from the Contractor under this Contract or any other contract subject to HUD-determined wage rates, with the same prime Contractor, so much of the accrued payments or advances as may be considered necessary to pay laborers and mechanics employed by the Contractor or any subcontractor the full amount of wages required by this clause. In the event of failure to pay any laborer or mechanic employed under this Contract all or part of the wages required under this Contract, the Contracting Officer or HUD may, after written notice to the Contractor, take such action as may be necessary to cause the suspension of any further payment or advance until such violations have ceased. The Public Housing Agency or HUD may, after written notice to the Contractor, disburse such amounts withheld for and on account of the Contractor or subcontractor to the respective employees to whom they are due.

3. Records

(a) The Contractor and each subcontractor shall make and maintain for three (3) years from the completion of the work records containing the following for each laborer and mechanic: (i) Name, address and Social Security Number; (ii) Correct work classification or classifications; (iii) Hourly rate or rates of monetary wages paid; (iv) Rate or rates of any fringe benefits provided; (v) Number of daily and weekly hours worked; (vi) Gross wages earned; (vii) Any deductions made; and (viii) Actual wages paid.

(b) The Contractor and each subcontractor shall make the records required under paragraph 3(a) available for inspection, copying, or transcription by authorized representatives of HUD or the HA and shall permit such representatives to interview employees during working hours on the job. If the Contractor or any subcontractor fails to make the required records available, HUD or its designee may, after written notice to the Contractor, take such action as may be necessary to cause the suspension of any further payment, advance or guarantee of funds.

4. Apprentices and Trainees

(a) Apprentices and trainees will be permitted to work at less than the predetermined rate for the work they perform when they are employed pursuant to and individually registered in: (i) A bona fide apprenticeship program registered

with the U.S. Department of Labor, Employment and Training Administration (ETA), Office of

Section II - Page 1 of 3

form HUD-5370-C (10/2006)

Apprenticeship Training, Employer and Labor Services (OATELS), or with a state apprenticeship agency recognized by OATELS, or if a person is employed in his/her first 90 days of probationary employment as an apprentice in such an apprenticeship program, who is not individually registered in the program, but who has been certified by OATELS or a state apprenticeship agency (where appropriate) to be eligible for probationary employment as an apprentice;

(ii) A trainee program which has received prior approval, evidenced by formal certification by the U.S. Department of Labor, ETA; or

(iii) A training/trainee program that has received prior approval by HUD.

(b) Each apprentice or trainee must be paid at not less than the rate specified in the registered or approved program for the apprentice’s/trainee’s level of progress, expressed as a percentage of the journeyman hourly rate specified in the applicable wage determination. Apprentices and trainees shall be paid fringe benefits in accordance with the provisions of the registered or approved program. If the program does not specify fringe benefits, apprentices/trainees must be paid the full amount of fringe benefits listed on the wage determination for the applicable classification.

(c) The allowable ratio of apprentices or trainees to journeyman on the job site in any craft classification shall not be greater than the ratio permitted to the employer as to the entire work force under the approved program.

(d) Any worker employed at an apprentice or trainee wage rate who is not registered in an approved program, and any apprentice or trainee performing work on the job site in excess of the ratio permitted under the approved program, shall be paid not less than the applicable wage rate on the wage determination for the classification of work actually performed.

(e) In the event OATELS, a state apprenticeship agency recognized by OATELS or ETA, or HUD, withdraws approval of an apprenticeship or trainee program, the employer will no longer be permitted to utilize apprentices/trainees at less than the applicable predetermined rate for the work performed until an acceptable program is approved.

5. Disputes concerning labor standards

(a) Disputes arising out of the labor standards provisions contained in Section II of this form HUD-5370-C, other than those in Paragraph 6, shall be subject to the following procedures. Disputes within the meaning of this paragraph include disputes between the Contractor (or any of its subcontractors) and the HA, or HUD, or the employees or their representatives, concerning payment of prevailing wage rates or proper classification. The procedures in this section may be initiated upon HUD’s own motion, upon referral of the HA, or upon request of the Contractor or subcontractor(s). (i) A Contractor and/or subcontractor or other

interested party desiring reconsideration of findings of violation by the HA or HUD relating to the payment of straight-time prevailing wages or classification of work shall request such reconsideration by letter postmarked within 30 calendar days of the date of notice of findings issued by the HA or HUD. The request shall set

forth those findings that are in dispute and the reasons, including any affirmative defenses, with respect to the violations. The request shall be directed to the appropriate HA or HUD official in accordance with instructions contained in the notice of findings or, if the notice does not specify to whom a request should be made, to the Regional Labor Relations Officer (HUD).

(ii) The HA or HUD official shall, within 60 days (unless otherwise indicated in the notice of findings) after receipt of a timely request for reconsideration, issue a written decision on the findings of violation. The written decision on reconsideration shall contain instructions that any appeal of the decision shall be addressed to the Regional Labor Relations Officer by letter postmarked within 30 calendar days after the date of the decision. In the event that the Regional Labor Relations Officer was the deciding official on reconsideration, the appeal shall be directed to the Director, Office of Labor Relations (HUD). Any appeal must set forth the aspects of the decision that are in dispute and the reasons, including any affirmative defenses, with respect to the violations.

(iii) The Regional Labor Relations Officer shall, within 60 days (unless otherwise indicated in the decision on reconsideration) after receipt of a timely appeal, issue a written decision on the findings. A decision of the Regional Labor Relations Officer may be appealed to the Director, Office of Labor Relations, by letter postmarked within 30 days of the Regional Labor Relations Officer’s decision. Any appeal to the Director must set forth the aspects of the prior decision(s) that are in dispute and the reasons. The decision of the Director, Office of Labor Relations, shall be final.

(b) Disputes arising out of the labor standards provisions of paragraph 6 shall not be subject to paragraph 5(a) of this form HUD-5370C. Such disputes shall be resolved in accordance with the procedures of the U.S. Department of Labor set forth in 29 CFR Parts 5, 6 and 7. Disputes within the meaning of this paragraph 5(b) include disputes between the Contractor (or any of its subcontractors) and the HA, HUD, the U.S. Department of Labor, or the employees or their representatives.

6. Contract Work Hours and Safety Standards Act

The provisions of this paragraph 6 are applicable only where the amount of the prime contract exceeds $100,000. As used in this paragraph, the terms “laborers” and “mechanics” includes watchmen and guards. (a) Overtime requirements. No Contractor or subcontractor

contracting for any part of the Contract work which may require or involve the employment of laborers or mechanics shall require or permit any such laborer or mechanic in any workweek in which he or she is employed on such work to work in excess of 40 hours in such workweek unless such laborer or mechanic receives compensation at a rate not less than one and one-half times the basic rate of pay for all hours worked in excess of 40 hours in such workweek.

(b) Violation; liability for unpaid wages; liquidated damages. In the event of any violation of the provisions set forth in paragraph 6(a), the Contractor and any


form HUD-5370-C (10/2006)

subcontractor responsible therefor shall be liable for the unpaid wages. In addition, such Contractor and subcontractor shall be liable to the United States (in the case of work done under contract for the District of Columbia or a territory, to the District or to such territory), for liquidated damages. Such liquidated damages shall be computed with respect to each individual laborer or mechanic, including watchmen and guards, employed in violation of the provisions set forth in paragraph (a) of this clause, in the sum of $10 for each calendar day on which such individual was required or permitted to work in excess of the standard workweek of 40 hours without payment of the overtime wages required by provisions set forth in paragraph (a) of this clause.

(c) Withholding for unpaid wages and liquidated damages. HUD or its designee shall upon its own action or upon written request of an authorized representative of the U.S. Department of Labor withhold or cause to be withheld, from any moneys payable on account of work performed by the Contractor or subcontractor under any such Contract or any federal contract with the same prime Contractor, or any other federally-assisted contract subject to the Contract Work Hours and Safety Standards Act, which is held by the same prime Contractor such sums as may be determined to be necessary to satisfy any liabilities of such Contractor or subcontractor for unpaid wages and liquidated damages as provided in the provisions set forth in paragraph (b) of this clause.

7. Subcontracts

The Contractor or subcontractor shall insert in any subcontracts all the provisions contained in this Section II and also a clause requiring the subcontractors to include these provisions in any lower tier subcontracts. The prime Contractor shall be responsible for the compliance by any subcontractor or lower tier subcontractor with all the provisions contained in these clauses.

8. Non-Federal Prevailing Wage Rates

Any prevailing wage rate (including basic hourly rate and any fringe benefits), determined under state law to be prevailing, with respect to any employee in any trade or position employed under the Contract, is inapplicable to the contract and shall not be enforced against the Contractor or any subcontractor, with respect to employees engaged under the contract whenever such non-Federal prevailing wage rate, exclusive of any fringe benefits, exceeds the applicable wage rate determined by the Secretary of HUD to be prevailing in the locality with respect to such trade or position.


form HUD-5370-C (10/2006)

EXHIBIT A LISTING OF PROPERTIES

Development Name Address AMP #

#Buildings / #Units

Mary Shepard Place 15 Pavilion StreetHartford, CT

024 10/127 – Including Office Building

New Communities 15 Pavilion StreetHartford, CT

024 8/8

Scattered Sites II & III 22 Wadsworth Street Hartford, CT

015 56/196

Nelton Court/Scattered Sites I 26 Nelton CourtHartford, CT

001 8/68

Smith Tower/Betty Knox Apt/Kent Apt/Mary Mahoney Village

80 Charter Oak Avenue Hartford, CT

006 9/482

Stowe Village 15 Pavilion StreetHartford, CT

024 59/107

New Nelton Court 45 Alan Green WayHartford, CT

035 22/80

Nelson St. 45 Alan Green WayHartford, CT

036 2/8

HUD Project Number AMP Number Unit.DevelopmentID [via Project] Unit.DevelopmentName [via Project] Primary Street Address Unit.UnitCity [via Project] Unit.UnitZip [via Project]

CT003000026P COCC CT003024 Administrative Office/Vacant Land 180 Overlook Terrace Hartford 06106

CT003000026P COCC CT003026 Warehouse Contents 791 Windsor Street Hartford 06120

CT003000024P AMP-024 CT003003 Mary Shepard Place Office 15 Pavillion Street Hartford 06120

CT003000006P AMP-006 CT003006 Mary Mahoney Community Room 73 Vine Street Hartford 06112

Dutch Point - 3 vacant parcels 137 Wyllys Street Hartford 06106


FINANCIAL STATEMENTS AND SUPPLEMENTAL INFORMATION WITH INDEPENDENT AUDITORS’ REPORT

___________

Year Ended December 31, 2016

TABLE OF CONTENTS

Description Pages INDEPENDENT AUDITORS’ REPORT 1-3 MANAGEMENT’S DISCUSSION AND ANALYSIS

4-9

FINANCIAL STATEMENTS

10-14

Statement of Net Position

Statement of Revenues, Expenses, and Changes in Net Position Statement of Cash Flows Notes to the Financial Statements

15-44

REQUIRED SUPPLEMENTAL INFORMATION

45-46

Schedule of Funding Progress for Retiree Health Plan

Schedules of Changes in Proportional Share of Net Pension Liability and Contributions – Last Ten Fiscal Years

SUPPLEMENTAL INFORMATION State Project Financial Statements – Statutory Basis, MR-17 and 30

Balance Sheet Operating Statement Analysis of Retained Earnings Additional Notes to Financial Statements – Statutory Basis Financial Data Schedule Statement and Certification of ROSS Program Costs

47-51

52-63

64

TABLE OF CONTENTS (continued)

REPORT ON SINGLE AUDIT

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

Independent Auditors’ Report on Compliance For Each Major Program and on Internal Control Over Compliance Required by the Uniform Guidance

Independent Auditors’ Report on Compliance for Each Major State Program; Report on Internal Controls Over Compliance; and Report on the Schedule of Expenditures of State Financial Assistance Required by the State Single Audit Act

Schedule of Expenditures of Federal Awards

Notes to Schedule of Expenditures of Federal Awards

Schedule of Expenditures of State Financial Assistance

Notes to Schedule of Expenditures of State Financial Assistance

Schedule of Findings and Questioned Costs

Schedule of Prior Year Findings and Questioned Costs

Pages

65-66

67-68

69-70

71

72

73

74

75-78

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INDEPENDENT AUDITORS’ REPORT

To the Board of Commissioners Housing Authority of the City of Hartford Hartford, Connecticut

Report on the Financial Statements

We have audited the accompanying financial statements of the business-type activities of the Housing Authority of the City of Hartford (the Authority) as of and for the year ended December 31, 2016, and the related notes to the financial statements, which collectively comprise the Authority’s basic financial statements, as listed in the table of contents.

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 audit. We conducted our audit 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.

MAIN 301.564.3636 FAX 301.564.29946903 Rockledge Drive, Suite 1200 Bethesda, Maryland 20817-1818

r u b in o . c o m

Member, American Institute of Certified Public Accountants

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We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion. Basis for Qualified Opinion We did not obtain sufficient audit evidence for the balances of the net pension liability, deferred outflows of resources, deferred inflows of resources, and pension expense relating to the defined benefit pension plan because these balances were derived from a separately issued pension plan that was not audited. We were unable to obtain sufficient appropriate audit evidence for the balances of the net pension liability, deferred outflows of resources, deferred inflows of resources, and pension expense relating to the defined benefit pension plan by other auditing procedures. Qualified Opinion In our opinion, expect for the possible effects of the matter described in the Basis for Qualified Opinion paragraph, the financial statements referred to above present fairly, in all material respects, the financial position of the business-type activities of the Authority as of December 31, 2016, and the respective changes in financial position and cash flows thereof for the year then ended in accordance with accounting principles generally accepted in the United States of America. Other Matters Required Supplementary Information Accounting principles generally accepted in the United States of America require that the management’s discussion and analysis, the schedule of funding progress, and schedule of changes in proportional share of net pension liability and contributions as listed in the table of contents, 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 the required supplementary information in accordance with auditing standards generally accepted in the United States of America, which consisted of inquiries of management about the methods of preparing the information and comparing the information for 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 on the information because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance.

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Other Information Our audit was performed for the purpose of forming an opinion on the financial statements that collectively comprise the Authority's basic financial statements. The State Project Financial Statement, Financial Data Schedule, Statements and Certifications of ROSS Program Costs, and Schedule of Expenditures of State Financial Assistance, are presented for purposes of additional analysis and are not a required part of the basic financial statements. The Schedule of Expenditures of Federal Awards is presented for purposes of additional analysis as required by Title 2 U.S. Code of Federal Regulations (CFR) Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards and is not a required part of the basic financial statements. The supplemental information listed above is the responsibility of management and were derived from and relate directly to the underlying accounting ·data and other records used to prepare the basic financial statements. Such information has been subjected to the auditing procedures applied in the audit of the basic financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the basic financial statements or to the basic financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America by us and the other auditors. In our opinion, based on our audit and the procedures described above, the State Project Financial Statement, the Financial Data Schedule, Statements and Certifications of ROSS Program Costs, the Schedule of Expenditures of Federal Awards, and the Schedule of Expenditures of State Financial Assistance are fairly stated, in all material respects, in relation to the basic financial statements as a whole. Other Reporting Required by Government Auditing Standards In accordance with Government Auditing Standards, we have also issued our report dated September 22, 2017 on our consideration of the Authority's internal control over financial reporting and 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 the 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. Bethesda, Maryland September 22, 2017

HOUSING AUTHORITY OF THE CITY OF HARTFORDMANAGEMENT’S DISCUSSION AND ANALYSIS

Year Ended December 31, 2016__________________________

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As management of the Housing Authority of the City of Hartford (the “Authority”), we offer the readers of the Authority’s financial statements this narrative overview and analysis of the financial activities of the Authority for the year ended December 31, 2016. We encourage readers to consider the information presented here in conjunction with the Authority’s financial statements.

Questions concerning any of the information provided in this report or requests for additional information should be addressed to the Executive Director, Annette Sanderson, HartfordHousing Authority, 180 John D Wardlaw Way, Hartford, CT 06106.

Financial Points

The assets of the Authority exceeded the liabilities as of December 31, 2016 by $96,055,655 (net position).

The Authority’s cash balances as of December 31, 2016 were $13,685,269, representing anincrease of $2,734,649.

The Authority earned direct revenue from the U.S. Department of Housing and Urban Development (“HUD”) of $25,658,752.

Overview of Financial Statements

The financial statements included in this annual report are those of a special-purpose government engaged in a single business-type activity prepared on an accrual basis. Over time, significant changes in the Authority’s net position serve as a useful indicator of whether its financial health is improving or deteriorating. To fully assess the financial health of any authority, the reader must also consider other non-financial factors such as changes in client household composition, fluctuations in the local economy, HUD mandated program administrative changes and the physical condition of capital assets. The following statements are included:

Statement of Net Position - this statement reports the Authority’s assets and deferred outflows of resources less its liabilities and deferred inflows of resources at the end of the fiscal year. You can think of the Authority’s net position as the difference between the Authority’s rights (assets and deferred outflows of resources) and the Authority’s obligations (liabilities and deferred inflows of resources).

Statement of Revenue, Expenses, and Changes in Net Position - this statement presents information showing how the Authority’s net position increased or decreased during the current fiscal year. All changes in net position are reported as soon as the underlying event giving rise to the change occurs, regardless of when cash is received or paid. Thus, revenues and expenses are reported in this statement for some items that will result in cash inflows and cash outflows in the future periods.



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Overview of Financial Statements (continued)

Statement of Cash Flows - this statement presents information showing the total cash receipts and cash disbursements of the Authority during the current fiscal year. The statement reflects the net changes in cash resulting from operations plus any other cash requirements during the current year (i.e. capital additions, debt service, prior period obligations, etc.). The statement reflects the receipt or disbursement of cash that was obligated to or paid by the Authority in prior periods and subsequently received or paid during the current fiscal year (i.e. receivables and payables).

Notes to the Basic Financial Statements - the notes to the basic financial statements provide additional information that is essential to a full understanding of the data provided. These notes give greater understanding on the overall activity of the Authority and how values are assigned to certain assets and liabilities and the longevity of these values. In addition, notes reflect the impact (if any) of any uncertainties the Authority may face.

In addition to the basic financial statements listed above, our report includes supplemental information. This information is to provide more detail on the Authority’s various programs and the required information mandated by regulatory bodies that fund the Authority’s various programs.

Financial Analysis

2016 2015 Net Change

Current assets 14,868,846$ 12,758,145$ 2,110,701$

Capital assets, net 101,728,747 104,258,315 (2,529,568)

Other noncurrent assets 5,139,971 5,040,000 99,971

Total Assets 121,737,564 122,056,460 (318,896)

Deferred Outflows 670,355 670,355 -

Current Liabilities 5,233,411 3,473,454 1,759,957

Long-term debt 13,698,535 13,406,083 292,452

Other noncurrent liabilities 7,420,318 6,637,298 783,020

Total Liabilities 26,352,264 23,516,835 2,835,429

Investment in Capital Assets 87,830,212 90,672,232 (2,842,020)

Restricted net position 6,303,528 3,801,158 2,502,370

Unrestricted net position 1,921,915 4,736,590 (2,814,675)

Total Net Position 96,055,655 99,209,980 (3,154,325)

Total Liabilities & Net Position 122,407,919$ 122,726,815$ (318,896)$



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Financial Analysis (continued)

Net Current Assets increased by $2,110,701 primarily due to cash receipts of HCV funds in December 2016 in the amount of $1,490,000. Additionally, cash related to the LIPH program increased approximately $500,000 due to tenant revenue increase. Lastly, the HCV administrative cash account increased approximately $425,000 due to operations efforts.

Net Capital Assets decreased by $2,529,568 mostly due to depreciation charges of approximately $4,909,000 offset by construction in progress additions of $2,542,000.

Other Noncurrent Assets, net increased by $99,971 mainly due to accumulated RAD charges related to Mary Shepard.

Total Liabilities increased by $2,835,429 primarily as a result of an increase of approximately $1,694,000 in unearned revenue pertaining to the receipt of HCV funds and fraud recovery contracts. Additionally, $653,000 is related to post retirement benefits and OPEB liability accruals.

Net Position - The difference between an organization’s assets and deferred outflows of resources and its liabilities and deferred inflows of resources is its net position. Net position iscategorized into three components.

1. Net investment in capital assets - capital assets, net of accumulated depreciation and related debt is due to the capital asset and long-term debt activity;

2. Restricted - the component of the Authority’s net position which is subject to constraints imposed by law or agreement consisting primarily of HAP equity and debt service reserves;

3. Unrestricted - the component of the Authority’s net position that is neither invested in capital assets nor restricted which increase principally due to operations. These resources are available to meet the Authority’s ongoing obligations to its residents and creditors.



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2016 2015 Total Change

Operating Revenue

HUD revenue 23,012,733$ 22,472,588$ 540,145$

Tenant revenue, net 5,254,093 4,746,066 508,027

Other revenue 2,485,713 2,425,796 59,917

Total operating revenue 30,752,539 29,644,450 1,108,089

Operating expenses

Administration 4,062,939 3,865,688 197,251

Tenant services 362,482 372,817 (10,335)

Utilities 3,642,506 3,244,335 398,171

Maintenance 4,575,150 4,035,029 540,121

Protective services 202,925 159,151 43,774

General 1,495,967 1,815,291 (319,324)

Housing assistance payments 16,501,980 16,188,350 313,630

Depreciation 4,387,728 5,011,969 (624,241)

Total operating expenses 35,231,677 34,692,630 539,047

Operating income (loss) (4,479,138) (5,048,180) 569,042

Non operating revenues (expenses)

Interest expense (486,152) (494,073) 7,921

Extraordinary maintenance (178,109) - (178,109.00)

Gain on sale of capital assets - 173,586 (173,586)

Mortgage interest income 135,639 129,185 6,454

Gain on assets held for sale 59,671 80,377 (20,706)

Interest income 332 288 44

Total non operating

revenues (expenses) (468,619) (110,637) (357,982)

HUD capital grant 2,646,019 3,740,130 (1,094,111)

Increase (decrease) in net position (2,301,738) (1,418,687) (883,051)

Beginning Net Position 99,209,980 101,854,404 (469,928)

Prior period adjustments (852,587) (1,225,737) 373,150

Ending Net Position 96,055,655$ 99,209,980$ (793,139)$



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Total Operating Revenue increased $1,108,089 in 2016 due primarily to Operating Subsidy and Tenant Revenue increases of approximately $540,145 and $508,027, respectively, over last year.

Total Operating Expenses are categorized by the Authority as administrative, tenant services, utilities, maintenance, protective services, general, depreciation and housing assistancepayments. Operating expenses increased $451,142 in 2016. The primary cause was due to the completion and full occupancy of units at New Nelton Court (AMP 35) and Nelson Street (AMP 36) in 2016. The combined operating costs of those AMPS were approximately $840,000. The difference can be attributed to lower depreciation charges of 2016.

Capital Asset and Debt Activity

Net capital assets decreased by $2,529,568 mostly due to depreciation charges of approximately $4,909,000 offset by construction in progress additions of $2,542,000.

At the end of the fiscal year 2016, the Authority had long-term debt of $13,898,535, of which $200,000 is presented as current resulting from the pledge of future grants from the Department of Housing and Urban Development.

Factors Affecting Next Year’s Budget

The Authority is dependent upon HUD for the funding of its Low Rent Public Housing, Housing Choice Voucher and Capital Fund programs; therefore, the Authority is affected by the federal budget. Other portions of the Authority’s portfolio, for instance, affordable housing sites and/or third party contract work are affected more by national and local economic conditions.

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 rates;

Local inflationary, recessionary and employment trends, which can affect resident incomes and therefore the amount of rental income;

Inflationary pressure on utility rates, housing costs, supplies and other costs;

Trends in the current housing market.



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Future Events Affecting the Authority

On March 27, 2017, ground was broken on the redevelopment of Bowles Park. The state-funded property is being demolished and redeveloped using Low Income Tax Credits (LITC) to bring back affordable housing to the site.

Conclusion

The Authority, along with its Board of Commissioners, will continue to use the resources available to provide the best possible assistance to the residents and clients it serves. As funding and other factors including economic and budgetary changes, the Authority will do what is necessary to carry out its mission.

Current AssetsCash and cash equivalents, unrestricted 10,742,916$

Cash and cash equivalents, restricted 2,942,353

Receivables, net 396,571

Due from other governments 241,750

Prepaid expenses 321,184

Inventory, net 224,072

Total current assets 14,868,846

Noncurrent AssetsNotes receivable - unrestricted 799,750

Notes receivable - restricted 3,702,981

Capital assets, net 101,728,747

Other assets 637,240

Total noncurrent assets 106,868,718

Total assets 121,737,564

Defined benefit pension plan 670,355

TOTAL ASSETS

AND DEFERRED OUTFLOW OF RESOURCES 122,407,919$


STATEMENT OF NET POSITION

December 31, 2016

_______________

DEFERRED OUTFLOW OF RESOURCES

ASSETS

The accompanying notes are an integral part of these financial statements.

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Current LiabilitiesAccounts payable 360,535$

Accrued liabilities 1,189,449

Accrued compensated absences 212,161

Unearned revenue 2,929,460

Tenant security deposits 341,806

Current portion of mortgage payable 200,000

Total current liabilities 5,233,411

Noncurrent LiabilitiesLong-term debt 13,698,535


Accrued OPEB liability 5,270,635

Net pension liability 1,843,043

Total Noncurrent Liabilities 21,118,853

Total Liabilities 26,352,264

Defined benefit pension plan -

Net investment in capital assets 87,830,212

Restricted net position 6,303,528

Unrestricted net position 1,921,915

Total Net Position 96,055,655

TOTAL LIABILITIES, DEFERRED INFLOW OF RESOURCES,

AND NET POSITION 122,407,919$

LIABILITIES


DEFERRED INFLOW OF RESOURCES

NET POSITION

_______________

December 31, 2016

STATEMENT OF NET POSITION


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OPERATING REVENUESHUD operating revenue 23,012,733$

Tenant revenue, net 5,254,093

Other operating revenue 1,772,450

Other grant revenue 713,263

Total operating revenue 30,752,539

OPERATING EXPENSESAdministration 4,062,939

Tenant services 362,482

Utilities 3,642,506

Maintenance 4,575,150

Protective services 202,925

General 1,495,967

Housing assistance payments 16,501,980

Depreciation 4,387,728

Total operating expenses 35,231,677

Operating income (loss) (4,479,138)

NONOPERATING REVENUES (EXPENSES)Gain (loss) on assets held for sale 59,671

Interest income 332

Mortgage interest income 135,639

Extraordinary maintenance (178,109)

Interest expense (486,152)

Total nonoperating revenues (expenses) (468,619)

Income (loss) before other revenues, expenses, gains, losses, and transfers (4,947,757)

HUD capital grants 2,646,019

Increase (decrease) in net position (2,301,738)

Net position, beginning of year 99,209,980

Prior period adjustments (852,587)

Net position, end of year 96,055,655$


STATEMENT OF REVENUES, EXPENSES, AND

CHANGES IN NET POSITION

Year Ended December 31, 2016_____________


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CASH FLOWS FROM OPERATING ACTIVITES

Receipts from tenants 5,371,573$

Receipts from operating grants and subsidies 26,213,750

Other receipts 1,325,905

Payments for salaries and benefits (5,575,582)

Payments for vendors and landlords (7,924,495)

Housing assistance payments (16,501,980)

Net cash flows provided by operating activities 2,909,171

CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES

Expenditures for capital assets (2,582,176)

Proceeds from assets held for sale 140,521

Interest paid on capital debt (301,658)

Issuance of debt 280,550

Principal payments on capital debt (180,000)

Extraordinary maintenance (178,109)

Capital grant contributions 2,646,019

Net cash flows used by capital and related financing activities (174,853)

CASH FLOWS FROM INVESTING ACTIVITES

Interest received 332

Net cash flows provided by investing activities 332

NET INCREASE IN CASH 2,734,650

CASH AND CASH EQUIVALENTS, beginning of year, as restated 10,950,619

CASH AND CASH EQUIVALENTS, end of year 13,685,269$

_____________


STATEMENT OF CASH FLOWS



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RECONCILIATION OF OPERATING INCOME TO NET CASH PROVIDED BY OPERATING ACTIVITIES

Operating income (loss) (4,479,138)$

Adjustements to reconcile operating income to net cash provided by (used in) operating activities:

Depreciation 4,387,728

Bad debts 246,109

(Increase) decrease in assets:

Receivables 96,589

Due from HUD 654,161

Due from other governments (24,089)

Prepaid expenses (28,383)

Inventory, net 5,830

Other assets (472,613)

Deferred outflow of resources -

Increase (decrease) in liabilities:

Accounts payable (280,153)

Accrued liabilities 207,059


Unearned revenue 1,857,682

Tenant security deposits 46,959

Accrued pension/OPEB liability 676,213

Net cash provided by operating activities 2,909,171$

_____________


STATEMENT OF CASH FLOWS



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HOUSING AUTHORITY OF THE CITY OF HARTFORD NOTES TO THE FINANCIAL STATEMENTS

December 31, 2016 ___________________________

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1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES The financial statements of the Housing Authority of the City of Hartford, Connecticut have been prepared in conformity with generally accepted accounting principles (GAAP) as applied to government units. The Governmental Accounting Standards Board (GASB) is the accepted standard-setting body for establishing governmental accounting and financial reporting principles. The more significant of the Authority's accounting policies are described below. A. Reporting entity The Housing Authority of the City of Hartford, Connecticut (the “Authority”), is a governmental entity created under federal and state housing laws for the purpose of engaging in the development, acquisition, and administrative activities of the low-income housing programs and other programs with similar objectives for low and moderate income families residing in the City of Hartford, Connecticut (the “City”). The Authority is responsible for operating certain safe, decent, sanitary, and affordable low-rent housing programs in the County under programs administered by the U.S. Department of Housing and Urban Development (“HUD”). These programs provide housing for eligible families under the United States Housing Act of 1937, as amended. The Authority's governing board consists of a five member Board of Commissioners (the “Board”), which is appointed by the Mayor of the City. The Board serves four year terms. The governing board is essentially autonomous but responsible to HUD. An Executive Director is appointed by the Authority’s Board to manage day-to-day operations of the Authority. The Authority is not a component unit of the City, as defined in Governmental Accounting Standards Board (“GASB”) Statement No. 61, The Financial Reporting Entity: Omnibus, as the Board independently oversees the Authority’s operations. The definition of the reporting entity as described by GASB No. 61 is based primarily on the notion of financial accountability. A primary government is financially accountable for the organizations that make up its legal entity. It is also financially accountable for legally separate organizations if its officials appoint a voting majority of an organization’s governing body and either it is able to impose its will on that organization or there is a potential for the organization to provide specific financial benefits to, or impose specific financial burdens on, the primary government. a. Blended component unit

Some component units, despite being legally separate from the primary government, are so integrated with the primary government that they are in substance part of the primary government. The Authority’s operations include one blended component unit, HHA Development, Inc., which is included in the basic financial statements and consist of a legally separate entity for which the Authority is financially accountable and that has the same governing board as the Authority.


December 31, 2016 ___________________________

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1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued) A. Reporting entity (continued)

HHA Development, Inc. is a State of Connecticut nonprofit organization that was formed to support Dutch Point Homeownership in fulfillment of its project development plan.

b. Related parties

The Authority has relationships with several related parties listed below which were formed to revitalize and preserve affordable housing properties. The Authority has no direct ownership interest in these entities, but holds notes receivable as detailed in Note B-3 and provides program support on behalf of these entities.

Dutch Point I, LP

Dutch Point II, LP

Dutch Point Homeownership, LLC

B. Government-wide and fund financial statements The government-wide financial statements report information about the reporting government as a whole excluding fiduciary activities. The statements distinguish between governmental and business-type activities. Governmental activities generally are financed through taxes, intergovernmental revenues and other non-exchange revenues. Business type activities rely to a significant extent on user fees and charges for support. Governments use fund accounting, whereby funds are organized into three major categories: governmental, proprietary and fiduciary. Each fund is accounted for by providing a separate set of self-balancing accounts that constitute its assets, deferred outflows of resources, liabilities, deferred inflows of resources, net position, revenues and expenditures/expenses. For financial reporting purposes, the Authority reports all of its operations as a single business activity in a single enterprise fund. Therefore, the government-wide and the fund financial statements are the same. Enterprise funds are proprietary funds. Proprietary funds distinguish operating revenues and expenses from nonoperating items. Operating activities generally arise from providing services in connection with a proprietary fund’s principal activity. The operating revenues of the Authority consist primarily of rental charges to tenants and operating grants from HUD and the State of Connecticut and include, to a lesser extent, certain operating amounts of capital grants that offset operating expenses.


December 31, 2016 ___________________________

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1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued) B. Government-wide and fund financial statements (continued) Operating expenses for the Authority include administrative, tenant services, utilities, maintenance, protective services, general, depreciation and housing assistance payments. All revenues and expenses not meeting this definition are reported as nonoperating revenues and expenses, except for capital contributions, which are presented separately. When restricted resources meet the criteria to be available for use and unrestricted resources are also available for use, it is the Authority’s policy to use restricted resources first, and then unrestricted resources, as needed. C. Measurement focus and basis of accounting Measurement focus is a term used to describe which transactions are recorded within the various financial statements. The proprietary fund utilizes an economic resources measurement focus. The accounting objectives of this measurement focus are the determination of operating income, changes in net position (or cost recovery), financial position and cash flows. All assets and liabilities (whether current or noncurrent) associated with their activities are reported. Proprietary fund equity is classified as net position. Basis of accounting refers to when transactions are recorded regardless of the measurement focus applied. The basis of accounting used is similar to businesses in the private sector, thus, this fund is maintained on the accrual basis of accounting. Revenues are recognized when earned and expenses are recorded when the liability is incurred or economic asset used. For financial reporting purposes, the Authority considers its HUD and state grants associated with operations as operating revenue because these funds more closely represent revenues generated from operating activities rather than nonoperating activities. Grants from HUD and the State that are associated with capital acquisitions and improvements are considered capital contributions and are presented after nonoperating activity on the accompanying statement of revenues, expenses and changes in net position. As provided by GASB No. 34 and related guidance, tenant revenue is reported net of $141,683 in accounts written off. D. Budgets Budgets are prepared on an annual basis for each major HUD program, approved by the Board, and are used as a management tool throughout the accounting cycle. Budgets are not legally adopted nor required for financial statement presentation.


December 31, 2016 ___________________________

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1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued) E. Summary of programs The accompanying basic financial statements include the activities of several housing programs of the Authority, most of which are subsidized by HUD. A summary of each significant program is provided below. a. Low Rent Public Housing Programs

The Low Rent Public Housing Programs include asset management projects (“AMPs”), which collect both operating and capital fund subsidies and various other related HUD grants. The purpose of these programs is to provide decent and affordable housing to low income families at reduced rents. The properties are owned, maintained and managed by the Authority. The properties are acquired, developed and modernized under HUD’s Development and Capital Fund programs. Funding of operations and development is provided by federal annual contributions, operating subsidies and tenant rentals (determined as a percentage of family income, adjusted for family composition and other allowances).

b. Section 8 Housing Choice Voucher (“HCV”) Program

HUD provides grants to the Authority to subsidize rents paid by low-income families and individuals who rent dwelling units from private landlords. Under this program, qualified applicants are issued vouchers which may be used by the applicants to obtain housing in the private rental market. The Authority will subsidize the landlord for the difference between the rent requested and the tenant’s share of the rent not to exceed a predetermined payment standard.

c. Central Office Cost Center (“COCC”)

This program tracks common overhead expenses incurred by the Authority. To offset these common expenses, the COCC receives a monthly property, management, bookkeeping and asset management fee from the AMPs. Additionally, the COCC receives from the HCV Program a monthly property management and bookkeeping fee. The state housing programs of the Authority are excluded from this fee for service approach; therefore, overhead expenses are allocated directly to these programs.


December 31, 2016 ___________________________

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1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)

E. Summary of programs (continued) d. State and Local Program - The Authority operates the following state and local programs:

State Moderate Rent Program - The Authority operates state-owned moderate rent developments independent of ongoing financial assistance from the Connecticut Department of Economic and Community Development (“DECD”), which financed the construction of the developments. Affordable Housing Program - This program accounts for the development costs and selling activities of the Authority, which has an inventory of one and two family dwellings held for sale to moderate income tenants. Investment in Financing of Affordable Housing - This program accounts for the outstanding loans made by the Authority to third parties via funding provided by the Revitalization of Severely Distress Public Housing Program (“HOPE VI”).

F. Assets, liabilities and net position a. Cash and cash equivalents

For purposes of the statement of cash flows, the Authority considers all unrestricted highly liquid investments with original maturities of three months or less to be cash equivalents.

b. Receivables

Receivables consist of revenues earned and not yet collected. Receivables consist of tenant receivables, fraud recovery receivables for the housing assistance payments programs and reimbursement receivables from various parties in the normal course of business. Due from other housing authorities represents portability amounts receivable from voucher holders using the portability protocol. An allowance for uncollectible amounts is estimated by management based on account composition and prior experience.

c. Due from HUD and other governments

Amounts presented as due from HUD and other governments principally result from grant revenue being accrued for allowable program expenses not yet funded.


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1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued) F. Assets, liabilities and net position (continued) d. Inventory

Inventory consists principally of materials held for use or consumption and is recorded at average cost basis. If inventory falls below cost due to damage, deterioration or obsolescence, the Authority establishes an allowance for obsolete inventory. Based on management’s experience with the types of items in inventory and related usage plans, an allowance for obsolescence of $8,445 is recorded as of December 31, 2016.

e. Assets held for sale

As of December 31, 2016, there were no assets held for sale. During the year, two homes were sold for $140,521 with associated costs of $80,850 resulting in a gain on the sale of homes of $59,671.

f. Capital assets

The Authority’s policy is to capitalize assets with a value in excess of $5,000 and a useful life of more than one year. The Authority capitalizes the costs of site acquisition and improvement, structures, infrastructure, equipment and direct development costs meeting the capitalization policy. Assets are valued at historical cost, or estimated historical cost if actual historical cost is not available, and contributed assets are valued at fair value on the date contributed. Depreciation has been provided using the straight-line method over the estimated useful lives, which range as follows:

Buildings 20-40 years Building improvements 15-40 years Furniture, equipment and machinery 3-10 years

g. Impairment of long-lived assets

The Authority evaluates events or changes in circumstances affecting long-lived assets, including capital assets, to determine whether an impairment of its assets has occurred. If the Authority determines that a long-lived asset is impaired, and that the impairment is significant and other-than temporary, then an impairment loss will be recorded in the Authority’s financial statements. In the current year, the Authority did not recognize any loss on impairment related to its long-lived assets.


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1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued) F. Assets, liabilities and net position (continued) h. Notes receivable

The notes receivable represent loans the Authority subordinated to related parties (see Note 4) in conjunction with financing arrangements related to the development of mixed-income, multifamily rental communities on land owned by the Authority. Such loans were subsidized by HUD primarily through the HOPE VI Program and are generally interest-bearing. Notes receivable that were loaned using HUD grant funds are restricted upon repayment by HUD guidelines.

i. Other assets

Other assets consist of insurance deposits totaled $356,690 and a predevelopment loan issued to Overlook Village Associates II, LLC totaled $280,550, and are presented as noncurrent on statement of net position as of December 31, 2016.

j. Tenant security deposits

Tenant security deposits are deposits held by the Authority that are required of tenants before they are allowed to move into an Authority owned site. The Authority records this cash as restricted, with an offsetting liability, as these funds may be reimbursable to the tenant when they move out.

k. Accrued compensated absences

The Authority’s policy allows employees to accrue 13 sick days per year. Employees may accrue up to 180 days of unused sick time. If an employee retires at normal retirement age they are paid half of their accumulated sick leave. Employees who separate from service prior to normal retirement age forfeit accumulated unused sick leave. Vacation leave accrues from 13 days to 23 days per year based on years of service. Employees may accrue up to 60 days of unused vacation time. Certain employees are covered by collective bargaining agreements, which set the leave policy for union employees. The amount of compensated absences earned in the current period is expensed with the cumulative amount owed per the policy reflected as a liability in the basic financial statements.


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1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued) F. Assets, liabilities and net position (continued) l. Deferred outflows of resources

In addition to assets, the statement of net position reports a separate section for deferred outflows of resources. This separate financial statement element, deferred outflows of resources, represents a consumption of net position that applies to future periods and thus, will not be recognized as an outflow of resources until then. The Authority’s balance of deferred outflows of resources relates to funding of the net pension liability (see Note 11).

m. Unearned revenue

Unearned revenues include amounts collected before revenue recognition criteria are met. The unearned items consist of grants not yet expended totaling $677,611 and $449,009 for the Public Housing and State and Local programs, respectively, a ground lease of $812,000 for Dutch Point, and unearned HAP and admin fees for the Housing Choice Voucher program totaling $1,490,840.

n. Deferred inflows of resources

In addition to liabilities, the statement of net position may report a separate section for deferred inflows of resources. This separate financial statement element, deferred inflows of resources, represents an acquisition of net position that applies to future periods and thus, will not be recognized as an inflow of resources until then. The Authority’s balance of deferred inflows of resources relates to funding of the net pension liability.

o. Pensions

For purposes of measuring the net pension liability or asset, deferred outflows of resources and deferred inflows of resources related to pensions, and pension expense, information about the fiduciary net position of the Authority’s participation in the Connecticut Municipal Employees’ Retirement System (“MERS”), and additions to and deductions from the Authority’s fiduciary net position have been determined on the same basis as they are reported by MERS. For this purpose, benefits (including refunds of employee contributions) are recognized when due and payable in accordance with the benefit terms of MERS. Investments are reported at fair value.


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1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued) F. Assets, liabilities and net position (continued)

p. Eliminations

For financial reporting purposes, certain amounts are internal and are therefore eliminated. The following have been eliminated from the financial statements:

Interprogram - In the normal course of operations, certain programs may pay for common costs or advance funds for operations that create interprogram receivables or payables. These interprogram receivables and payables net to zero and are eliminated for the presentation of the Authority as a whole. As of December 31, 2016, a total of $3,010,037 was eliminated. Fee for service - The Authority’s Central Office Cost Center internally charges fees to the AMPs of the Authority. These charges include management fees, bookkeeping fees, asset management fees, and other fees. For financial reporting purposes, $2,319,427 of fee for service charges have been eliminated for the year ended December 31, 2016. Internal HAP - The Authority’s Housing Choice Voucher program includes HAP expense paid to a blended component unit. For financial reporting purposes, $27,108 of HAP expense and tenant revenue have been eliminated for the year ended December 31, 2016.

q. Net position

In accordance with GASB No. 34, as amended, total equity as of December 31, 2016, is classified into three components of net position:

Net investment in capital assets - This category consists of capital assets (including restricted capital assets), net of accumulated depreciation and reduced by any outstanding balances of bonds, mortgages, notes or other borrowings that are attributable to the acquisition, construction and improvements of those assets. Restricted component of net position - This category consists of restricted assets and deferred outflows of resources offset by related liabilities and deferred inflows of resources restricted in their use by (1) external groups such as grantors, creditors or laws and regulations of other governments; or (2) law through constitutional provisions or enabling legislation. Unrestricted component of net position - This category includes all of the remaining net position that does not meet the definition of the other two categories.


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1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued) G. Income taxes The Authority is a governmental entity and is exempt from federal and state income taxes. Accordingly, no provision for federal or state income taxes has been made in the financial statements. The Authority’s blended component unit, as described in Note A-1, accounts for income taxes in accordance with Financial Accounting Standards Board Accounting Standards Codification (“FASB ASC”) 740, Income Taxes, which clarifies the accounting and disclosure requirements for uncertainty in tax positions. It requires a two-step approach to evaluate tax positions and determine if they should be recognized in the financial statements. The two-step approach involves recognizing any tax positions that are “more likely than not” to occur and then measuring those positions to determine if they are recognizable in the financial statements. Management regularly reviews and analyzes all tax positions and has determined no aggressive tax positions have been taken. For the fiscal year ended December 31, 2016, no provision or liability for federal income taxes has been included in the financial statements for the Authority’s blended component unit. The open audit periods for these entities are 2011 through 2016. H. Leasing activities a. The Authority is the lessor of dwelling units to low-income residents. The rents under the

leases are determined generally by the resident’s income as adjusted for eligible deductions regulated by HUD, although the resident may opt for a flat rent. Leases may be cancelled by the lessee at any time or renewed every year. The Authority may cancel the leases only for cause. Revenues associated with these leases are recorded in the accompanying financial statements and related schedules within tenant revenue. Primarily all of the capital assets of the Authority are for these leasing activities except for certain administrative offices and equipment.

b. In August 2004, the Authority leased ground for development for the Dutch Point Colony.

The ground lease payment of $600,000 received in 2004 is classified as unearned revenue and is being recognized over the life of the ground lease of 25 years.

I. Use of estimates The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates.


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1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued) J. Impact of recently issued accounting principles a. In February 2015, the GASB issued Statement No. 72, Fair Value Measurement and

Application, to enhance the transparency and comparability of fair value measurements and disclosures in state and local governments’ financial statements. This statement is effective for the Authority’s December 31, 2016 fiscal year end. Management is currently evaluating the impact of the adoption of this statement on the Authority’s financial statements.

b. In June 2015, the GASB issued Statement No. 73, Accounting and Financial Reporting for Pensions and Related Assets that are not within the Scope of GASB Statement 68 and Amendments to Certain Provisions of GASB Statements 67 and 68, which clarifies certain provisions of GASB No. 68, Accounting and Financial Reporting for Pensions and it establishes requirements for defined contribution pensions that was not within the scope of GASB Statement No. 68. This statement is effective for the Authority’s December 31, 2017 fiscal year end. Management is currently evaluating the impact of the adoption of this statement on the Authority’s financial statements.

c. In June 2015, the GASB issued Statement No. 75, Accounting and Financial Reporting for

Postemployment Benefits Other Than Pensions, which replaces the requirements of GASB Statement No. 45, Accounting and Financial Reporting by Employers for Postemployment Benefits Other than Pensions, and requires governments to report a liability on the face of the financial statements for the OPEB that they provide. This statement is effective for the Authority’s December 31, 2018 fiscal year end. Management is currently evaluating the impact of the adoption of this statement on the Authority’s financial statements.

d. In January 2016, the GASB issued Statement No. 80, Blending Requirements for Certain

Component Units - An Amendment of GASB Statement No. 14, which amends GASB Statement No. 14, The Financial Reporting Entity, as amended, by addressing the blending of a component unit incorporated as a not-for-profit corporation in which the primary government is the sole corporate member. This statement is effective for the Authority’s December 31, 2017 fiscal year end. Management is currently evaluating the impact of the adoption of this statement on the Authority’s financial statements.


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2. CASH As of December 31, 2016, the Authority’s cash consist of deposits of $13,685,269. In accordance with GASB No. 40, the Authority’s exposure to deposit and investment risk is disclosed as follows: a. Interest Rate Risk

Interest Rate Risk is the risk that changes in interest rates will adversely affect the fair value of an investment. The Authority’s policy to limit its exposure to declines in fair values of its investment portfolio is to only invest in HUD allowed investments and to monitor investments. As of December 31, 2016, the Authority had no investments, and therefore was not exposed to interest rate risk.

b. Credit Risk

Credit Risk is the risk that an issuer or other counterparty will fail to meet its obligations in accordance with agreed terms. It is the Authority’s policy to follow the HUD regulations by only having direct investments and investments through mutual funds to direct obligations, guaranteed obligations, or obligations of the agencies of the United States of America. As of December 31, 2016, the Authority had no investments, and therefore was not exposed to credit risk.

c. Custodial Credit Risk

Custodial Credit Risk is the risk that in the event of a bank failure, the Authority’s deposits may not be returned. The Authority does not have a formal policy for custodial credit risk, except ensuring that it follows the HUD regulations for federal deposits in the prior paragraph. As of December 31, 2016, none of the Authority’s total bank balance of $13,647,130 was exposed to custodial credit risk, as all accounts were either fully insured or collateralized.

d. Restricted cash

As of December 31, 2016, restricted cash consist of $341,806 of tenant security deposits, $1,490,840 of unearned HAP and admin fees for the Housing Choice Voucher Program, and $1,109,707 of other restricted cash.


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3. RECEIVABLES, NET As of December 31, 2016, receivables, net consist of:

Tenant receivables 350,338$ Due from other housing authorities 280,631Insurance proceeds 75,221Miscellaneous 42,207Fraud recovery 9,885

Total receivables 758,282 Allowance for doubtful accounts (361,711)

396,571$

4. NOTES RECEIVABLE The Authority has entered into various loan agreements with related parties. As of December 31, 2016, $3,702,981of the notes receivable is classified as restricted. The following is a summary of the notes receivable and accrued interest for the year ended December 31, 2016:

BorrowerBalance

January 1, 2016Interest Income

PaymentsReceived

BalanceDecember 31, 2016

Dutch Point I $ 1,374,901 $ 67,371 $ - 1,442,272$ Dutch Point II 1,341,226 $ 68,268 - 1,409,494 Homeownership

Loan 851,215 - - 851,215 Line of Credit 799,750 - - 799,750

Total 4,367,092$ 135,639$ -$ 4,502,731$ a. Dutch Point I, LP

As part of the redevelopment of Dutch Point I, the Authority provided a loan to assist in the construction of a 73-unit, low income apartment complex. A loan for $852,151 was provided to Dutch Point I, which bears interest at 4.9% compounding annually. The outstanding principal balance and accrued interest are due on the maturity date of September 28, 2045. No payments were received on this note during 2016. As of December 31, 2016, the outstanding loan balance is $852,151 and accrued interest is $590,120, totaling $1,442,272. As of December 31, 2016, interest income of $67,371 was accrued.


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4. NOTES RECEIVABLE (continued) b. Dutch Point II, LP

As part of the redevelopment of Dutch Point II, the Authority provided a loan to assist in the construction of a 54-unit apartment complex in which 47 of those units are public housing units. A loan for $901,594 was provided to Dutch Point II, which bears interest at 5.09% compounding annually. The outstanding principal balance and accrued interest are due on the maturity date of September 26, 2047. No payments were received on this note during 2016. As of December 31, 2016, the outstanding loan balance is $901,594 and the accrued interest income of $507,901, totaling $1,409,494. As of December 31, 2016, interest income of $68,268 was accrued.

c. Dutch Point Homeownership, LLC

For the construction and financing of 27 homeownership units (“The Townhomes at Dutch Point”) at the former Dutch Point public housing project, the Authority provided a loan for $891,884 on September 2, 2008 to Dutch Point Homeownership, LLC. The loan bears no interest and the entire principal amount is due and payable September 2, 2048. As of December 31, 2016, the outstanding note balance was $851,215. The Authority has also extended a revolving line of credit promissory note of $800,000 to assist in the financing for the construction of 58 homeownership units at the former Dutch Point Colony site. The note bears no interest. As of December 31, 2016, the outstanding balance was $799,750.

5. CAPITAL ASSETS The following is a summary of changes in capital assets:

January 1,2016 Balance

(restated)Transfers in/Additions

Transfers out/Deletions

December 31,2016 Balance

Land and land improvements 23,397,275$ -$ -$ 23,397,275$ Construction in Progress 35,732,570 2,565,642 - 38,298,212

Total nondeprciable assets 59,129,845 2,565,642 - 61,695,487

Buildings 124,492,925 - - 124,492,925 Furniture and Equipment 2,823,267 16,535 - 2,839,802

Total Capital Assets 186,446,037 2,582,177 - 189,028,214

Less Accumulated Depreciation: (82,911,739) (4,387,728) - (87,299,467)

Net Book Value 103,534,298$ (1,805,551)$ -$ 101,728,747$


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6. NONCURRENT LIABILITIES The following is a summary of changes in long-term liabilities:

BalanceJanuary 1, 2016 Additions Reductions

BalanceDecember 31, 2016

CurrentPortion

2012 Revenue Bonds $ 5,425,000 $ - $(180,000) 5,245,000$ 200,000$ Predevelopment Loan - 280,550 - 280,550 - Debt under moratorium 8,161,083 211,902 - 8,372,985 -

- Total long-term debt 13,586,083 492,452 (180,000) 13,898,535 200,000

- Compensated absences 503,584 15,217 - 518,801 212,161 Net pension liability 1,843,043 - - 1,843,043 OPEB liability 4,594,422 1,089,096 (412,883) 5,270,635 -

Total noncurrent liabilities 20,527,132$ 1,596,765$ (592,883)$ 21,531,014$ 412,161$

a. 2012 Revenue Bonds

In July 2012, the Authority closed on $5,900,000 of Capital Funds Housing Revenue Bonds, Series 2012 for the purpose of providing funds to assist the Authority in the financing of a portion of the costs for the redevelopment of a public housing development formerly known as Nelton Court. The bonds and associated debt service are pledged by future grants from HUD through the Capital Funds Program. The bonds have a 20-year duration with maturity in 2032 and accrue interest at the rate of 5.00% per annum. The bonds require semi-annual interest payments on March 1st and September 1st and annual principal payments on September 1st.


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6. NONCURRENT LIABILITIES (continued)

a. 2012 Revenue Bonds (continued)

For the year ended December 31, 2016, the Authority incurred interest expense of $274,250. As of December 31, 2016 the future principal maturities for 2012 revenue bonds is as follows:

Principal Interest2017 200,000$ 262,250$ 2018 210,000 252,250 2019 220,000 241,750 2020 235,000 230,750 2021 245,000 219,000 2022-2032 4,135,000 1,457,500

5,245,000$ 2,663,500$ b. Predevelopment Loan

In October 2015, the State of Connecticut’s Department of Housing approved an interest-free loan for predevelopment costs in the amount of $300,000 to the Authority. In February 2016, the Authority provided Overlook Village Associates II, LLC with $280,550 in connection with the predevelopment costs for Bowles Park Redevelopment in an agreement whereby Overlook Village will pay back the funds to the Authority. This is reflected in other assets on the statement of net position.

c. Debt Under Moratorium

The Authority’s State funded moderate rental projects were originally constructed with debt financing issued by the State of Connecticut. In June of 2010, the State of Connecticut rescinded a moratorium on this debt and restructured the obligation with the Authority, providing for additional financing of $1,730,156 for capital improvements to the Authority’s moderate rental projects. Included in the restructured principal balance of $8,372,985, is $1,046,298 of interest accrued over the period of the moratorium. Subsequent to year end in June 2017, the Authority entered into a new loan agreement for the debt under moratorium with a maturity date of October 2052.


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7. RISK MANAGEMENT The Authority is exposed to various risks of loss related to torts; theft of, damages to, and destruction of assets; errors and omissions; injuries to employees; and natural disasters. As part of the Authority’s risk management program, the Authority participates in a risk retention group to cover designated exposures and potential loss situations. The group is not retrospectively rated and the Authority is not directly liable for any other participants’ claims if the group becomes insolvent. There were no significant reductions of insurance coverage from prior years and settlements did not exceed insurance coverage for each of the past three years. 8. COMMITMENTS AND CONTINGENCIES a. Legal

Generally, the Authority is party to various pending or threatened legal actions arising from the normal course of operations. Although the outcome of these actions is not presently determinable as of the date of the report, it is the Authority’s opinion that any resulting liability is not expected to have a material effect on the Authority’s financial position.

b. Grants and contracts

The Authority participates in various state and federally-assisted grant programs that are subject to review and audit by the grantor agencies. Entitlement to these resources is generally conditional upon compliance with the terms and conditions of grant agreements and applicable state and federal regulations, including the expenditure of resources for allowable purposes. Any disallowance resulting from a state or federal audit may become a liability of the Authority. As of the date of this report, management is not aware of any such examinations. The Authority may receive cumulative funding in excess of housing assistance payments (“HAP”) through the HCV Program in accordance with current regulations. As of December 31, 2016, the Authority had $1,372,378 unspent cumulative excess HAP funding.

c. Funds awarded

The Authority receives funding from HUD through grants and programs to help subsidize the cost of project repairs, improvements, certain operating costs and loans to tax credit projects. Unspent awarded amounts as of December 31, 2016 amounted to $936,336 for the Capital Fund Program and $1,445,833 for the Replacement Housing Program.


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8. COMMITMENTS AND CONTINGENCIES (continued) d. Ground leases

The Authority has ground a lease on which the housing development, Dutch Point was constructed. The ground lease is for a period of 25 years. The Authority received initial aggregate rental payments of $600,000 in 2004 and will continue to receive aggregate rental payments of $2 per year. The Authority had also leased a portion of their former Charter Oak project land to a separate third party in 2004. The lease period is for 99 years and the lease payment is equivalent to a minimum of $17,500 per month or 10% of all subleases entered into by the developer related to this land.

9. CONCENTRATIONS

For the year ended December 31, 2016, approximately 71% of revenues reflected in the basic financial statements are from HUD. In addition, 44% of receivables reflected in the basic financial statements are from the State. The Authority operates in a heavily regulated environment. The operations of the Authority are subject to the administrative directives, rules and regulations of federal, state and local regulatory agencies, including, but not limited to HUD. Such administrative directives, rules and regulations are subject to change by an act of Congress or an administrative change mandated by HUD. Such changes may occur with little notice or inadequate funding to pay for the related costs and the additional administrative burden to comply with the changes. In addition, any excess reserves may reduce future funding levels and possibly be subject to recapture.

10. FINANCIAL DATA SCHEDULE

As required by HUD, the Authority prepares its financial data schedule in accordance with HUD requirements in a prescribed format which differs from the presentation of the basic financial statements. The schedule’s format presents certain operating items as nonoperating such as depreciation expense, housing assistance payments and extraordinary maintenance expense. In addition, the schedule’s format includes nonoperating items as operating such as investment revenue, HUD capital grants revenue, gains and losses on the disposal of fixed assets, and interest expense. Furthermore, the schedule reflects tenant revenue and bad debt expense separately.


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11. DEFINED BENEFIT PLAN a. Plan description.

Full-time employees who were hired before April 1, 2011 and union members of Local 1161, American Federation of State, County and Municipal Employees hired thereafter, participate in the Municipal Employee’s Retirement System (MERS), a multiple-employer public retirement system (PERS) established by the State of Connecticut and administered by the State Retirement Commission to provide retirement and disability benefits, annual cost of living adjustments, and death benefits to the employees and beneficiaries of participating municipalities. Chapter 113 Part II of the General Statutes of Connecticut, which can be amended by legislative action, establishes PERS benefits, member contribution rates, and other plan provisions. MERS is considered to be a part of the State of Connecticut financial reporting entity and is included in the State’s financial reports as a pension trust fund. Those reports may be obtained by writing to the State of Connecticut, Office of the State Comptroller, 55 Elm Street, Hartford, CT 06106 or by calling 860-702-3480.

b. Benefits provided.

Connecticut Chapter 66 Sec. 5-155a establishes the benefit terms and can be amended only by the Connecticut State Employees Retirement Commission. The chief legislative body may adopt the benefit terms permitted by statute. Members are eligible to retire with an unreduced benefit at age 55 with 5 years of continuous service, or 15 years of active aggregate service, or 25 years of aggregate service. Benefits are determined by a formula using the member’s three highest paid years average compensation and the member’s years of service. Reduced benefits for early retirement are available at age 55 and vested. Members are vested with five years of service. Service related disability benefits are provided regardless of length of service. Ten years of service is required for non-service related disability eligibility. The service related and nonservice related disability benefits are determined in the same manner as a service retirement benefit but are reduced 10 percent and include projected service credits. A variety of death benefits are available under various eligibility criteria. For members and beneficiaries, the benefits of disabled retirees, service retirees who have reached age 65, and beneficiaries of deceased retirees who would have reached age 65 are adjusted each July 1. The difference between the actual annual yield of the actuarial value of assets on a calendar year basis to a 6% yield is calculated. This difference is the adjustment applied the following July 1. The minimum adjustment is 3% and the maximum is 5%. The benefits for all others on the roll are adjusted on January 1, 2002 and on each subsequent July 1. The amount of each adjustment is 2.5%. For those retiring on or after January 1, 2002, benefits are adjusted each July 1. The adjustment is 60% of the annual increase in the CPI up to 6%. The minimum annual COLA is 2.5%; the maximum is 6%.


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11. DEFINED BENEFIT PLAN (continued) c. Employees covered by benefit terms

At the measurement date of June 30, 2015, the following plan members were covered by the benefit terms:

Active employees 8,477

Inactive employees 7,769 16,246

d. Contributions.

Plan members are required by State statute to contribute 2.25% of earnings upon which Social Security tax is paid plus 5.00% of earnings on which no Social Security tax is paid. Each participating employer is required to contribute at an actuarially determined rate. The contribution requirements of the Authority are established and may be amended by the State Retirement Commission. For the year ended December 31, 2016, employer contributions for the Authority were $341,367 based on a rate of 11.56 percent of covered payroll. The employer’s actuarially determined contribution (ADC) and member contributions are expected to finance the costs of benefits earned by members during the year, the cost of administration, as well as an amortized portion of any unfunded liability.

e. Net Pension Liability

The Authority’s net pension liability was measured as of June 30, 2015, and the total pension liability used to calculate net pension liability was determined by an actuarial valuation as of that date. As of the date of this report, that actuarial valuation was unaudited.

f. Actuarial Assumptions

The total pension liability as of June 30, 2015 actuarial valuation was determined using the following actuarial assumptions, applied to all periods included in the measurement:

Actuarial cost method: Entry age Amortization method: Level dollar, closed Single equivalent amortization period: 26 years Asset valuation method: 5-year smoothed market (20% write up) Inflation: 3.25 percent Salary increase: 4.25-11.00 percent, including inflation Investment rate of return: 8.00 percent, net of investment related

expense

Mortality rates were based on actual experience from the June 30, 2012 actuarial experience study adjusted for some of the expected future improvement in life expectancy.


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11. DEFINED BENEFIT PLAN (continued) f. Actuarial Assumptions (continued)

The actuarial assumptions used in the June 30, 2015 actuarial valuation were based on the results of an actuarial experience study performed for the period July 1, 2005 through June 30, 2010. The demographic assumptions were adjusted to more closely reflect actual and expected future experience.

The long-term expected rate of return on pension plan investments was determined using a log-normal distribution analysis 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 weighting the expected future real rates of return by the target asset allocation percentage and by adding expected inflation. The target asset allocation and most recent best estimates of arithmetic real rates of return for each major asset class are to be provided by the fiduciary of the plan. The long-term expected rate of return on pension plan investments was established by the MERS as 8.0 percent based on the factors described above.

g. Discount rate

The discount rate used to measure the total pension liability was 8.0 percent. The projection of cash flows used to determine the discount rate assumed that employee contributions will be made at the current rate and that contributions from the Authority will be made at the actuarially determined contribution rate pursuant to an actuarial valuation in accordance with the funding policy of the MERS and as required to be paid by State statute. Based on those assumptions, the pension plan’s fiduciary net position was projected to be available to make projected future benefit payments of current active 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.

h. Changes in the Net Pension Liability

The information required to present the schedule of changes in net pension liability was not available in the June 30, 2015 MERS report. As of the date of this report the MERS report was unaudited. This information and schedule will be presented in the footnotes to the financial statements for the Authority’s December 31, 2016 fiscal year end.


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11. DEFINED BENEFIT PLAN (continued) i. Sensitivity of the net pension liability (asset) to changes in the discount rate

The following presents the net pension liability (asset) of the Authority calculated using the discount rate of 8.0 percent, as well as what the net pension liability (asset) would be if it were calculated using a discount rate that is 1-percentage-point lower (7.0 percent) or 1- percentage-point higher (9.0 percent) than the current rate:

1% Decrease

(7.0%) Current Discount

Rate (8.0%) 1% Increase

(9.0%) The Authority’s net pension liability $3,384,002 $1,843,043 $691,687

j. Pension expense and deferred ouflows of resources and deferred inflows of resources related

to pensions For the year ended December 31, 2016, the Authority recognized pension expense of $341,367.

k. Deferred outflows of resources and deferred inflows of resources

For the year ended December 31, 2016, the Authority reported deferred outflows of resources and deferred inflows of resources related to pensions from the following sources:

Deferred Outflows

of Resources Deferred Inflows

of Resources Changes of actuarial assumptions $ 367,647 $ - Net difference between projected and actual earnings on pension plan investments 137,683 - Contributions subsequent to the measurement date of June 30, 2015 165,025 - $ 670,355 $ -

The deferred outflows of resources related to the Pension Plan, totaling $165,025 resulting from the Authority’s contributions to the Plan subsequent to the measurement date, will be recognized as a reduction of the net pension liability in the fiscal year ended December 31, 2016. Other amounts reported as deferred outflows of resources and deferred inflows of resources related to the Pension Plan will be recognized in pension expense as follows:


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11. DEFINED BENEFIT PLAN (continued) k. Deferred outflows of resources and deferred inflows of resources (continued)

Year Ended December 31:

2016 $7,237 2017 7,237 2018 7,237 2019 115,972 2020 -

Thereafter - $137,683

In the table shown above, positive amounts will increase pension expense while negative amounts will decrease pension expense.

l. Payable to the Pension Plan

The Authority had no outstanding amount of contributions to the pension plan required at the year ended, December 31, 2016.

12. DEFINED COMPENSATION PLANS The Authority provides to employees a separate deferred compensation plan in accordance with IRC §401(a). The plan is open to employees hired after April 1, 2011 and that are union members of Local 818, American Federation of State, County and Municipal Employees or are non-bargaining employees. Under the plan, the Authority matches employee contributions up to a maximum of 6.00% of compensation. Employee contributions for the year ended December 31, 2016 were $27,056. The Authority also provides to employees a separate deferred compensation plan in accordance with IRC §457. The plan is open to all employees. Employee contributions for the year ended December 31, 2016 were $131,580. There were no employer contributions.


December 31, 2016 ___________________________

38

13. POST-EMPLOYMENT BENEFITS OTHER THAN PENSIONS a. Plan Description

The Authority administers a single-employer defined benefit healthcare plan (the “Plan”) that provides postretirement medical benefits to retirees. Benefits provided include the payment of medical, prescription drug, Medicare Part B reimbursement, and life insurance to its employees who meet certain eligibility requirements.

b. Eligibility

Employees are eligible for postretirement benefits if he/she has met the following requirements specific to their bargaining unit:

Medical Hired before May 15, 2004 age 55 with 15 years of service. Age plus service must be greater than or equal to 70.

Life Insurance Age 55 with 15 years of service.

All active employees who retire from the Authority and meet the eligibility criteria will receive these benefits. The duration of these benefits is either lifetime, 10, 15 or 20 years based on the date of retirement and age, plus service at retirement. The face value of each life insurance policy is $10,000. Currently, 59 active employees and 91 retirees are enrolled in the Plan.

c. Funding Policy

The Authority is not required by law or contractual agreement to provide funding for the Plan other than the pay-as-you-go amount necessary to provide current benefits to retirees and eligible beneficiaries/dependents. For the year ended December 31, 2016, the Authority paid $412,883 on behalf of the Plan. Based on current practice, the Authority pays the full cost of basic coverage for non-Medicare eligible/ Medicare-eligible retiree participants. The costs of these benchmark plans are reflected in the actuarial valuations by using age-adjusted premium amounts. The Authority also reimburses covered employees 100% of the Medicare Part B premium rate applicable to a given year.


December 31, 2016 ___________________________

39

13. POST-EMPLOYMENT BENEFITS OTHER THAN PENSIONS (continued) d. Funding Status and Funding Progress

The Authority’s annual other postemployment benefit (“OPEB”) cost, or expense, is calculated based on the annual required contribution (“ARC”) of the employer, an amount that was actuarially determined by using the Projected Unit Credit Cost Method (one of the actuarial cost methods in accordance with the parameters of GASB Statement No. 45). Under this method, the benefits (projected or un-projected) of each individual included in an actuarial valuation are allocated by a consistent formula to valuation years. The actuarial present value of benefits allocated to a valuation year is called the Normal Cost. The actuarial present value of benefits allocated to all periods prior to a valuation year is called the actuarial accrued liability (“AAL”). Under this method, the actuarial gains or losses, as they occur reduce or increase, respectively, the unfunded AAL (“UAAL”). Under this method, benefits are projected to all future points in time under the terms of the Plan and actuarial assumptions. Retirees are considered to be fully attributed in their benefits. For actives, attribution is to expected retirement age; thus benefits at each future point in time are allocated to past service based on a prorate of service-to-date over projected service. As of January 1, 2014, the most recent actuarial valuation date, the Plan was 0.0% funded. The actuarial accrued liability for benefits was $11,358,368 and the actuarial value of assets was $0, resulting in a UAAL of $11,358,368. The covered payroll for the annual payroll of active employees covered by the Plan was $3,490,689 and the ratio of the UAAL to the covered payroll was 325.4%. The amortization cost for the initial UAAL is an increasing amount for a period of 20 years and using the percentage-of-payroll method. Actuarial valuations of an ongoing plan involve estimates of the value of reported amounts and assumptions about the probability of occurrence of events far into the future. The assumptions among others are reflected below. The use of estimating techniques and the reliance of available data were required to meet legally imposed deadlines for the implementation of GASB Statement No. 45 that in the future, equivalent results are expected to reflect funded status of the Plan and the annual required contributions of the Authority are subject to continual revision as actual results are compared with past expectations and new estimates are made about the future. The schedule of funding progress, shown as required supplementary information, presents the results of OPEB valuations as of January 1, 2014 and looking forward. The schedule provides multiyear trend information about whether the actuarial values of plan assets are increasing or decreasing over time relative to the actuarial accrued liabilities for benefits.


December 31, 2016 ___________________________

40

13. POST-EMPLOYMENT BENEFITS OTHER THAN PENSIONS (continued) e. Annual OPEB Cost and Net OPEB Obligation

The Authority’s ARC and annual OPEB cost for 2014 were based on an actuarial valuation as of January 1, 2014, the latest valuation report available.

The Authority’s annual OPEB cost and the net OPEB obligation as of December 31, 2016, were as follows:

Annual Required Contribution (ARC) 1,031,815$ Interest on Net OPEB obligation 57,281

Annual OPEB expense 1,089,096 Contributions made (412,883)

Increase in net OPEB obligation 676,213 Net OPEB obligation - beginning of year 4,594,422

Net OPEB obligation - end of year 5,270,635$

The percentage of annual OPEB cost contributed was 75.8%. f. Actuarial Methods and Assumption

The Authority has assumed that 100% of current and future contingent eligible participants will elect healthcare benefits at their full eligibility age, or current age if later. The OPEB-specific actuarial assumptions used in the January 1, 2014 OPEB actuarial valuations of the Plan are as follows:

Valuation Date: January 1, 2014 Discount Rate: 4.5% per annum Mortality Rates: RP-2000 Combined Healthy Mortality Table


December 31, 2016 ___________________________

41

13. POST-EMPLOYMENT BENEFITS OTHER THAN PENSIONS (continued) f. Actuarial Methods and Assumption (continued)

Withdrawal Rates: The following table shows sample annual rates of withdrawal for participants:

Age Rate 20 0.1 25 0.07 30 0.05 35 0.04 40 0

g. Retirement Rates

The following table shows sample annual rates of retirement at selected ages. Retirement rates vary by years of service. Rates apply after first eligibility with 100% retirement assumed at age 65.

Service Years Rate

0-14 0.00 15-20 0.10 21-22 0.05

23 0.10 24-25 0.15 26-27 0.10 28-29 0.15

30 1.00 h. Healthcare Claims

Claims costs were based on the current medical rate and Medicare Part B premium. A blended premium is computed for all employees and retirees not yet eligible for Medicare benefits. Under GASB Statement 45, the non-blended (or age adjusted) premium is used for computing plan costs. Below are the representative premium costs:


December 31, 2016 ___________________________

42

13. POST-EMPLOYMENT BENEFITS OTHER THAN PENSIONS (continued)

h. Healthcare Claims (continued)

Age Claim Cost 50 $ 7,675.00 55 $ 9,252.00 60 $ 11,249.00 65 $ 5,470.00 70 $ 6,266.00 75 $ 6,882.00 80 $ 7,331.00 85 $ 7,777.00 90 $ 7,994.00

i. Morbidity/Aging

GASB requires that the costs for retiree benefits be separately identified. Currently, the Authority provides benefits for actives and retirees not eligible for Medicare under one rating structure. As listed in the morbidity table below, retirees utilize benefits at a greater rate than the active population, due to their age. The active employees are “implicitly” subsidizing the retiree cost of the plan of benefits in the Authority’s rate basis. GASB requires that the Authority utilize actual experience or actuarial adjustments in order to calculate the true cost of retiree benefits in order to calculate the present value of the retiree benefits. The actuarial assessment of the best estimate of retiree cost of benefits is premised on utilizing the morbidity/aging table below in developing the claims costs by age shown in the table above.

Age Annual Increase % 50 - 54 4.30% 55 - 59 4.40% 60 - 64 3.80% 65 - 69 3.10% 70 - 74 2.10% 75 - 79 1.40% 80 - 84 1.30% 85 - 89 0.60%

90 + 0.00%


December 31, 2016 ___________________________

43

13. POST-EMPLOYMENT BENEFITS OTHER THAN PENSIONS (continued) j. Healthcare Cost Trend Rate

Covered medical expenses are assumed to increase by the following percentages:

Year Pre-

Medicare Post-

Medicare 2014 8.00% 7.50% 2015 7.75% 7.25% 2016 7.50% 7.00% 2017 7.25% 6.75% 2018 7.00% 6.50% 2019 6.75% 6.25% 2020 6.50% 6.00% 2021 6.25% 5.75% 2022 6.00% 5.50% 2023 5.50% 5.25%

2024+ 5.00% 5.00% 14. PRIOR PERIOD ADJUSTMENTS For the fiscal year ended December 31, 2016, the statement of revenues, expenses, and changes in net position reflects prior period adjustments decreasing net position by $852,587 and is comprised of the following:

• An adjustment to increase accumulated depreciation by $521,315 due to errors in prior years of depreciation.

• An adjustment to increase $245,852 of note receivable balance of loans made to related parties through the HOPE VI program. The balance was determined not to have been recorded properly in prior years.

• An adjustment to decrease net position by $85,420 to restate other items that were not

recorded properly in prior fiscal years.


December 31, 2016 ___________________________

44

15. SUBSEQUENT EVENTS In preparing these financial statements, the Authority has evaluated events and transactions for potential recognition or disclosure through September 22, 2017, the date the financial statements were available to be issued, and noted no additional significant items to be disclosed.

Actuarial

Valuation Date

Actuarial Value

of Assets

(a)

Actuarial Accrued

Liability (AAL) -

Projected Unit Credit

(b)

Unfunded AAL

(UAAL)

(b) - (a)

Funded ratio

(a) / (b)

Covered Payroll

(c)

UAAL as a

Percentage of

Covered Payroll

[(b) - (a)] / (c)

12/31/2008 -$ 10,299,501$ 10,299,501$ 0% 3,899,774$ 264.1%

12/31/2011 -$ 10,697,686$ 10,697,686$ 0% 3,576,656$ 299.1%

12/31/2014 -$ 11,358,368$ 11,358,368$ 0% 3,490,689$ 325.4%


SCHEDULE OF FUNDING PROGRESS FOR RETIREE HEALTH PLAN


_______________

45

2015

Proportional share percentage 1.320543000%

Net pension liability 1,843,043$

Covered employee payroll 15,943,279

Net pension liability as a percentage of covered employee payroll 11.56%

Plan fiduciary net position as a percentage of the total pension liability 87.47%

Contracturally required contribution 362,911

Contributions in relation to the contracturally required contribution (362,911)

Contribution deficiency (excess) -$

Covered employee payroll 1,843,043

Contributions as a percentage of covered employee payroll 19.69%

Note 1:

All information is on a measurement year basis

GASB No. 68 required information for 10 years. However, until a full 10-year trend is compiled,

the Authority is presenting information for only those years for which information is available.


SCHEDULES OF CHANGES IN PROPORTIONAL SHARE OF

NET PENSION LIABILITY AND CONTRIBUTIONS - LAST TEN FISCAL YEARS

Year Ended December 31, 2016_____________

See Independent Auditors' Report

46

Account MR-17 & 30

1111 Cash - checking $ 23,638 1114 Restricted cash - security deposits 51,466 1115 Restricted cash - special purposes 446,969

Total cash 522,073

1122 Tenant accounts receivable 48,234

1123 Vacated tenants' accounts receivable 17,423

1123.1 Allowance for collection loss (37,294)

1124.1 Unissued state subsidy - congregate 241,750

1129 Sundry accounts receivable 3,401

1155 Advances to resolving fund (2,216,029)

Total accounts receivable (1,942,515)

1211 Unexpired insurance 36,931

1269 General stores 280,550

Total deferred charges and prepayments 317,481

1405 Development cost 8,538,565

1430 Furniture and equipment 274,042

1440 Capital improvements - state rehab grant 14,836,978

Total fixed assets 23,649,585

1503.1 Rehabilitation program expenditures 323,836

1503.2 Rehabilitation program expenditures 260,271

Total clearance 584,107

Total assets 23,130,731$

ASSETS


BALANCE SHEET - STATE PROJECT

December 31, 2016

_______________

See Additional Note to Financial Statements - Statutory Basis.

47

Account MR-17 & 30

2110 Administration fund creditors 51,280$

2116 Tenants' security deposits 51,466

2119 Sundry accounts payable 170,426

Total accounts payable 273,172

2131 Accrued interest and principal - mortgage 1,046,298

2135 Accrued salaries and wages 190,607

2135.1 Accrued compensated absences 32,861

Total accrued expense 1,269,766

2313 Indebtedness to the State of Connecticut 7,287,001

2314 Indebtedness to the State of Connecticut - rehabilitation loan 280,550

Total long term liabilities 7,567,551

Total liabilities 9,110,489

2810 Capital grant by the State of Connecticut 13,921,608

2814 Contributions by the municipality 446,969

2830 Un-appropriated retained earning (219,688)

2830.1 Income and expense clearance (174,952)

2830.4Retained earnings appropriated for repairs, maintenance and

replacements 46,305

Total retained earnings (348,335)

Total equity 14,020,242

Total liabilities and equity 23,130,731$

LIABILITIES AND EQUITY


December 31, 2016

_______________

BALANCE SHEET - STATE PROJECT

See Additional Note to Financial Statements - Statutory Basis.

48

Account

Budget Actual

No. of Dwelling Units: 770

No. of Unit Months: 9,240

3100 Rental income-base 3,574,056$ 3,574,056$

3100.1 Rental income-excess of base 142,920 191,565

Total rental income 3,716,976 3,765,621

3210 Dwelling vacancy loss (3,141,600) (2,874,607)

- Net rental income 575,376 891,014

3410

Sales and service to tenants (including cable TV

fees)5,571 5,707

3610 Interest income - 2

3620 Other income 856,945 710,973

Gross Income 1,437,892 1,607,696

4120 Salaries - office 140,232 108,359

4130 Legal and other services 6,686 21,135

4131 Accounting fees 55,489 63,034

4132 Management fees 175,188 214,225

4151 Office supplies 96 -

4153 Travel - 96

4159 Other office expense 24,600 25,587

4160 Pension and other funds 100,245 113,789

4161 Payroll taxes 16,484 23,826

Total management expense 519,020 570,051

4310 Water 57,927 73,428

4320 Electricity 98,757 179,058

4330 Gas 104,693 91,681

Total utility expense 261,377 344,167

4410 Maintenance wages 182,835 186,457

4420 Materials and supplies 33,516 24,119

4430 Contractual services 254,236 233,441

4440 Maintenance and shop equipment expense 11,940 5,748

Total maintenance expense 482,527 449,765

4710 Refuse removal 62,896 61,648

4711 Insurance 99,125 149,757

4717 Interest expense - 211,902

Total other expense 162,021 423,307

4820 Provision for collection loss 12,947 20,221

Total provisions 12,947 20,221

6100 Extraordinary income - (24,863)

Total expenses 1,437,892 1,782,648

Net gain/(loss) -$ (174,952)$


OPERATION STATEMENT (BUDGET TO ACTUAL) - STATE PROJECT


_____________MR-17 & 30

See Additional Note to Financial Statements - Statutory Basis

49

MR-17 & 30

Analysis of Un-appropriated Retained Earnings (2830,1,.2)

Balance at January 1, 2016 (219,688)$

Deduct:Operating loss (2830.1) (174,952)

Balance at December 31, 2016 (394,640)

Analysis of retained earnings appropriated for repairs,

maintenance and replacements (2830.04)

Balance at January 1, 2016 46,305

Balance at December 31, 2016 46,305

Total retained earnings (348,335)$


ANALYSIS OF RETAINED EARNINGS - STATE PROJECT

December 31, 2016

_____________

See Additional Note to Financial Statements - Statutory Basis

50

HOUSING AUTHORITY OF THE CITY OF HARTFORDADDITIONAL NOTES TO THE FINANCIAL STATEMENTS – STATUTORY BASIS

DECEMBER 31, 2016_____________________________

51

The following notes are presented as additional notes to the supplemental financial statements

presented in the financial statements starting on page 47 and ending on page 50. These notes are

provided to disclose some of the differences in accounting between accounting principles

generally accepted in the United States of America (“GAAP”) and financial statements

accounted for in accordance with DECD guidelines described in the Consolidated Audit Guide

for Audits of DECD Programs, issued in July 2001.

A. BASIS OF ACCOUNTING AND FINANCIAL REPORTING:

As described in Note 1-A on pages 15-16, the Authority has presented its financial statements on

pages 10-14 in accordance with accounting principles generally accepted in the United States of

America, while the financial statements presented on pages 47-50 are presented in accordance

with DECD guidelines described in the Consolidated Audit Guide for Audits of DECD

Programs, issued in July 2001. The following information discloses some of the variances

between these two accounting methods.

Capital Assets

Under GAAP, the Authority has developed a capitalization policy and appropriate depreciation

lives for specific assets based on industry standards. Under State accounting, DECD has

established what can be capitalized and the appropriate lives. Under State accounting, major

repairs funded out of program operations are charged against the program’s fund equity. Some of

these expenses would be capitalized in accordance with GAAP.

Other Post Employment Benefit Liabilities and Pension Reporting under GASB No. 68-

Under GAAP, the Authority accrues the cost of future health and life insurance benefits and

MERS pension benefits paid to retirees. Under State accounting, these costs are reported in the

period paid rather than in the period earned.


FINANCIAL DATA SCHEDULE

BALANCE SHEET SUMMARY

December 31, 2016

Low-Rent

Public Housing

14.850

2 State/Local14.871 Housing Choice

Vouchers

ASSETS:

CURRENT ASSETS:

Cash:

Cash - Unrestricted 4,194,254 5,406,540 917,113

Cash - Other Restricted 508,280 412,092 1,680,175

Cash - Tenant Security Deposits 290,340 51,466 -

Cash - Restricted for Payment of Current Liabilities - - -

Total Cash 4,992,874 5,870,098 2,597,288

Accounts and notes receivables:

Accounts Receivable - PHA Projects - - 280,631

Accounts Receivable - HUD Other Projects - - -

Accounts Receivable - Other Government - 241,750 -

Accounts Receivable - Miscellaneous 29,205 13,002 -

Accounts Receivable - Tenants 284,822 65,516 -

Allowance for Doubtful Accounts -Tenants (219,991) (37,294) -

Allowance for Doubtful Accounts - Other (29,205) - -

Fraud Recovery - - 9,885

Total Receivables, Net 64,831 282,974 290,516

Other Current Assets:

Prepaid Expenses and Other Assets 107,248 40,473 39,682

Inventories - - -

Allowance for Obsolete Inventories - - -

Inter Program Due From 1,490,840 1,144,245 369,400

Assets Held for Sale - - -

TOTAL CURRENT ASSETS 6,655,793 7,337,790 3,296,886

NONCURRENT ASSETS:

Capital Assets:

Land 20,116,090 3,281,185 -

Buildings 102,398,167 22,094,758 -

Furniture, Equipment & Machinery - Dwellings 2,517,730 274,042 16,690

Furniture, Equipment & Machinery - Administration - - -

Leasehold Improvements - - -

Accumulated Depreciation (65,509,419) (21,753,796) (13,360)

Construction in Progress 32,681,537 5,616,676 -

Total Capital Assets, Net 92,204,105 9,512,865 3,330

Notes, Loans and Mortgages Receivable - Non-Current - 3,702,981 -

Other Assets 356,690 280,550 -

TOTAL NONCURRENT ASSETS 92,560,795 13,496,396 3,330

Deferred Outflow of Resources 282,355 63,080 57,382

TOTAL ASSETS 99,498,943$ 20,897,266$ 3,357,598$

52




December 31, 2016

ASSETS:

CURRENT ASSETS:

Cash:

Cash - Unrestricted

Cash - Other Restricted

Cash - Tenant Security Deposits

Cash - Restricted for Payment of Current Liabilities

Total Cash


Accounts Receivable - PHA Projects

Accounts Receivable - HUD Other Projects

Accounts Receivable - Other Government

Accounts Receivable - Miscellaneous

Accounts Receivable - Tenants

Allowance for Doubtful Accounts -Tenants

Allowance for Doubtful Accounts - Other

Fraud Recovery

Total Receivables, Net


Prepaid Expenses and Other Assets

Inventories

Allowance for Obsolete Inventories

Inter Program Due FromAssets Held for Sale

TOTAL CURRENT ASSETS

NONCURRENT ASSETS:

Capital Assets:

Land

Buildings

Furniture, Equipment & Machinery - Dwellings

Furniture, Equipment & Machinery - Administration

Leasehold Improvements

Accumulated Depreciation

Construction in Progress

Total Capital Assets, Net

Notes, Loans and Mortgages Receivable - Non-Current

Other Assets

TOTAL NONCURRENT ASSETS

Deferred Outflow of Resources

TOTAL ASSETS

COCCHHA Development,

Inc.

14.870 Resident

Opportunity and

Supportive Services

62,877 162,132 -

- - -

- - -

- - -

62,877 162,132 -

- - -

- - -

- - -

75,221 - -

- - -

- - -

(75,221) - -

- - -

- - -

133,781 - -

232,517 - -

(8,445) - -

- - 5,552

- - -

420,730 162,132 5,552

- - -

- - -

31,339 - -

- - -

- - -

(22,892) - -

- - -

8,447 - -

799,750 - -

- - -

808,197 - -

242,267 - 25,271

1,471,194$ 162,132$ 30,823$

53




December 31, 2016

ASSETS:

CURRENT ASSETS:

Cash:

Cash - Unrestricted

Cash - Other Restricted

Cash - Tenant Security Deposits

Cash - Restricted for Payment of Current Liabilities

Total Cash


Accounts Receivable - PHA Projects

Accounts Receivable - HUD Other Projects

Accounts Receivable - Other Government

Accounts Receivable - Miscellaneous

Accounts Receivable - Tenants

Allowance for Doubtful Accounts -Tenants

Allowance for Doubtful Accounts - Other

Fraud Recovery

Total Receivables, Net


Prepaid Expenses and Other Assets

Inventories

Allowance for Obsolete Inventories

Inter Program Due FromAssets Held for Sale

TOTAL CURRENT ASSETS

NONCURRENT ASSETS:

Capital Assets:

Land

Buildings

Furniture, Equipment & Machinery - Dwellings

Furniture, Equipment & Machinery - Administration

Leasehold Improvements

Accumulated Depreciation

Construction in Progress

Total Capital Assets, Net

Notes, Loans and Mortgages Receivable - Non-Current

Other Assets

TOTAL NONCURRENT ASSETS

Deferred Outflow of Resources

TOTAL ASSETS

Subtotal ELIM Total

10,742,916 - 10,742,916

2,600,547 - 2,600,547

341,806 - 341,806

- - -

13,685,269 - 13,685,269

-

280,631 - 280,631

- - -

241,750 - 241,750

117,428 - 117,428

350,338 - 350,338

(257,285) - (257,285)

(104,426) - (104,426)

9,885 - 9,885

638,321 - 638,321

-

321,184 - 321,184

232,517 - 232,517

(8,445) - (8,445)

3,010,037 (3,010,037) -

- - -

17,878,883 (3,010,037) 14,868,846

-

23,397,275 - 23,397,275

124,492,925 - 124,492,925

2,839,801 - 2,839,801

- - -

- - -

(87,299,467) - (87,299,467)

38,298,213 - 38,298,213

101,728,747 - 101,728,747

4,502,731 - 4,502,731

637,240 - 637,240

106,868,718 - 106,868,718

670,355 - 670,355

125,417,956$ (3,010,037)$ 122,407,919$

54




December 31, 2016

Low-Rent

Public Housing

14.850


Vouchers

LIABILITIES AND NET POSITION

LIABILITIES:

CURRENT LIABILITIES:

Accounts Payable <= 90 Days 63,618 112,438 20,468

Accrued Wage/Payroll Taxes Payable 108,807 17,176 21,670

Accrued Compensated Absences - Current Portion 39,717 8,376 19,908

Accrued Interest Payable - - -

Accounts Payable - HUD PHA Programs - - 13,285

Tenant Security Deposits 290,340 51,466 -

Unearned Revenue 177,611 449,009 1,490,840

Current Portion of Long Term Debt - Capital Projects/Mortgage Revenue 200,000 - -

Other Current Liabilities - - -

Accrued Liabilities - Other 558,515 136,854 22,874

Inter Program - Due To - - 1,490,840

TOTAL CURRENT LIABILITIES 1,438,608 775,319 3,079,885

NONCURRENT LIABILITIES:

Long-term Debt, Net of Current - Capital Projects/Mortgage Revenue 5,045,000 8,372,985 -

Non-current Liabilities - Other - - -

Accrued Compensated Absences - Non Current 86,732 37,657 28,295

Loan Liability - Non Current 280,550 -

Accrued Pension and OPEB Liabilities 3,144,498 855,586 1,117,440

TOTAL NONCURRENT LIABILITIES 8,276,230 9,546,778 1,145,735

TOTAL LIABILITIES 9,714,838 10,322,097 4,225,620

Deferred Inflow of Resources - - -

NET POSITIONNet Investment in Capital Assets 86,959,105 859,330 3,330

Restricted Net Position 508,280 4,115,073 1,680,175

Unrestricted Net Position 2,316,720 5,600,766 (2,551,527)

TOTAL NET POSITION 89,784,105 10,575,169 (868,022)

TOTAL LIABILITIES AND NET POSITION 99,498,943$ 20,897,266$ 3,357,598$

55




December 31, 2016


LIABILITIES:


Accounts Payable <= 90 Days

Accrued Wage/Payroll Taxes Payable

Accrued Compensated Absences - Current Portion

Accrued Interest Payable

Accounts Payable - HUD PHA Programs

Tenant Security Deposits

Unearned Revenue

Current Portion of Long Term Debt - Capital Projects/Mortgage Revenue

Other Current Liabilities

Accrued Liabilities - Other

Inter Program - Due To

TOTAL CURRENT LIABILITIES


Long-term Debt, Net of Current - Capital Projects/Mortgage Revenue

Non-current Liabilities - Other

Accrued Compensated Absences - Non Current

Loan Liability - Non CurrentAccrued Pension and OPEB Liabilities

TOTAL NONCURRENT LIABILITIES

TOTAL LIABILITIES

Deferred Inflow of Resources

NET POSITIONNet Investment in Capital Assets

Restricted Net Position

Unrestricted Net Position

TOTAL NET POSITION

TOTAL LIABILITIES AND NET POSITION

COCCHHA Development,

Inc.

14.870 Resident

Opportunity and

Supportive Services

150,726 - -

67,572 - 3,340

144,160 - -

- - -

- - -

- - -

812,000 - -

- - -

- - -

252,641 - -

1,519,197 - -

2,946,296 - 3,340

- - -

- - -

153,956 - -

- - -

1,926,672 - 69,482

2,080,628 - 69,482

5,026,924 - 72,822

- - -

8,447 - -

- - -

(3,564,177) 162,132 (41,999)

(3,555,730) 162,132 (41,999)

1,471,194$ 162,132$ 30,823$

56




December 31, 2016


LIABILITIES:


Accounts Payable <= 90 Days

Accrued Wage/Payroll Taxes Payable

Accrued Compensated Absences - Current Portion

Accrued Interest Payable

Accounts Payable - HUD PHA Programs

Tenant Security Deposits

Unearned Revenue

Current Portion of Long Term Debt - Capital Projects/Mortgage Revenue

Other Current Liabilities

Accrued Liabilities - Other

Inter Program - Due To

TOTAL CURRENT LIABILITIES


Long-term Debt, Net of Current - Capital Projects/Mortgage Revenue

Non-current Liabilities - Other

Accrued Compensated Absences - Non Current

Loan Liability - Non CurrentAccrued Pension and OPEB Liabilities

TOTAL NONCURRENT LIABILITIES

TOTAL LIABILITIES

Deferred Inflow of Resources

NET POSITIONNet Investment in Capital Assets

Restricted Net Position

Unrestricted Net Position

TOTAL NET POSITION

TOTAL LIABILITIES AND NET POSITION

Subtotal ELIM Total

347,250 - 347,250

218,565 - 218,565

212,161 - 212,161

- - -

13,285 - 13,285

341,806 - 341,806

2,929,460 - 2,929,460

200,000 - 200,000

- - -

970,884 - 970,884

3,010,037 (3,010,037) -

8,243,448 (3,010,037) 5,233,411

13,417,985 - 13,417,985

- - -

306,640 - 306,640

280,550 - 280,550

7,113,678 - 7,113,678

21,118,853 - 21,118,853

29,362,301 (3,010,037) 26,352,264

- - -

-

87,830,212 - 87,830,212

6,303,528 - 6,303,528

1,921,915 - 1,921,915

96,055,655 - 96,055,655

125,417,956$ (3,010,037)$ 122,407,919$

57

HOUSING AUTHORITY OF THE CITY OF HARTFORDFINANCIAL DATA SCHEDULE

REVENUE AND EXPENSE SUMMARYDecember 31, 2016

Low-Rent

Public Housing

14.850


Vouchers

REVENUES:

Net Tenant Rental Revenue 4,302,062 891,014 -$

Tenant Revenue - Other 82,418 5,707 -

Total Tenant Revenue 4,384,480 896,721 -

HUD PHA Operating Grants 5,463,286 - 17,371,028

Capital Grants 2,646,019 - -

Management Fee - - -

Asset Management Fee - - -

Book Keeping Fee - - -

Front Line Service Fee - - -

Other Fees - - -

Total Fee Revenue - - -

Other Government Grants - 713,263 -

Investment Income - Unrestricted 139 103 25

Mortgage Interest Income - 135,639 -

Proceeds from Disposition of Assets Held for Sale - 140,521 -

Cost of Sale of Assets - (80,850) -

Fraud Recovery - - 86,137

Other Revenue 409,167 30,574 820,344

Gain or Loss on Sale of Capital Assets - - -

Investment Income - Restricted - - -

TOTAL REVENUES 12,903,091$ 1,835,971$ 18,277,534$

EXPENSES:

Administrative

Administrative Salaries 510,024$ 118,979 371,736

Auditing Fees 27,450 6,750 8,100

Management Fee 1,142,212 160,386 261,732

Book-keeping Fee 90,757 14,604 163,582

Advertising and Marketing 1,429 36 1,249

Employee Benefit contributions - Administrative 360,525 47,680 334,862

Office Expenses 166,230 22,084 67,628

Legal Expense 72,105 21,135 281

Travel Expense - 96 0

Other operating - administrative - 3,564 92,300

Total Administrative Expense 2,370,732 395,314 1,301,470

Asset Management Fee 129,190 60,840 -

Tenant Services

Tenant Services - Salaries 175,469 - -

Employee Benefit Contributions - Tenant Services - - -

Tenant Services - Other 14,767 1,000 -

Total Tenant Services 190,236 1,000 -

Utilities

Water 957,457.00 73,428.00 -

Electricity 1,456,774.00 179,058.00 -

Gas 510,286.00 91,681.00 -

Sewer - - -

Other Utilities Expense 279,351.00 - -

Total Utilities 3,203,868 344,167 -

Ordinary Maintenance & Operations

Ordinary Maintenance and Operations - Labor 1,092,182 186,457 -

Ordinary Maintenance and Operations - Materials and Other 283,885 29,866 1,038

Ordinary Maintenance and Operations Contracts 1,128,544 217,534 114,468

Employee Benefit Contributions - Ordinary Maintenance 706,148 214,805 -

Total Maintenance 3,210,759 648,662 115,506

58



REVENUES:

Net Tenant Rental Revenue

Tenant Revenue - Other

Total Tenant Revenue

HUD PHA Operating Grants

Capital Grants

Management Fee

Asset Management Fee

Book Keeping Fee

Front Line Service Fee

Other Fees

Total Fee Revenue

Other Government Grants

Investment Income - Unrestricted

Mortgage Interest Income

Proceeds from Disposition of Assets Held for Sale

Cost of Sale of Assets

Fraud Recovery

Other Revenue

Gain or Loss on Sale of Capital Assets

Investment Income - Restricted

TOTAL REVENUES

EXPENSES:

Administrative

Administrative Salaries

Auditing Fees

Management Fee

Book-keeping Fee

Advertising and Marketing

Employee Benefit contributions - Administrative

Office Expenses

Legal Expense

Travel Expense

Other operating - administrative

Total Administrative Expense


Tenant Services

Tenant Services - Salaries

Employee Benefit Contributions - Tenant Services

Tenant Services - Other

Total Tenant Services

Utilities

Water

Electricity

Gas

Sewer

Other Utilities Expense

Total Utilities


Ordinary Maintenance and Operations - Labor

Ordinary Maintenance and Operations - Materials and Other

Ordinary Maintenance and Operations Contracts

Employee Benefit Contributions - Ordinary Maintenance

Total Maintenance

COCC HHA Development, Inc.

14.870 Resident

Opportunity and

Supportive Services

-$ -$ -$

- - -

- - -

- - 178,419

- - -

1,564,330 - -

190,030 - -

268,943 - -

296,124 - -

- - -

2,319,427 - -

- - -

35 30 -

- - -

- - -

- - -

- - -

426,228 - -

- - -

- - - 2,745,690$ 30$ 178,419$

993,780 -$ -$

2,700 - -

- - -

- - -

4,438 - -

483,034 - -

146,741 - -

197,003 - -

1,000 - -

- - -

1,828,696 - -

- - -

- - 144,546

- - 26,700

- - -

- - 171,246

18,627 - -

62,527 - -

13,317 - -

- - -

- - -

94,471 - -

248,918 7,675 -

149,598 - -

271,230 - -

218,926 - -

888,672 7,675 -

59



REVENUES:

Net Tenant Rental Revenue

Tenant Revenue - Other

Total Tenant Revenue

HUD PHA Operating Grants

Capital Grants

Management Fee


Book Keeping Fee

Front Line Service Fee

Other Fees

Total Fee Revenue

Other Government Grants

Investment Income - Unrestricted

Mortgage Interest Income

Proceeds from Disposition of Assets Held for Sale

Cost of Sale of Assets

Fraud Recovery

Other Revenue

Gain or Loss on Sale of Capital Assets

Investment Income - Restricted

TOTAL REVENUES

EXPENSES:

Administrative

Administrative Salaries

Auditing Fees

Management Fee

Book-keeping Fee

Advertising and Marketing

Employee Benefit contributions - Administrative

Office Expenses

Legal Expense

Travel Expense

Other operating - administrative

Total Administrative Expense


Tenant Services

Tenant Services - Salaries

Employee Benefit Contributions - Tenant Services

Tenant Services - Other

Total Tenant Services

Utilities

Water

Electricity

Gas

Sewer

Other Utilities Expense

Total Utilities


Ordinary Maintenance and Operations - Labor

Ordinary Maintenance and Operations - Materials and Other

Ordinary Maintenance and Operations Contracts

Employee Benefit Contributions - Ordinary Maintenance

Total Maintenance

Subtotal ELIM Total

5,193,076$ (27,108)$ 5,165,968$

88,125 - 88,125

5,281,201 (27,108) 5,254,093

23,012,733 - 23,012,733

2,646,019 - 2,646,019

1,564,330 (1,564,330) -

190,030 (190,030) -

268,943 (268,943) -

296,124 (296,124) -

- - -

2,319,427 (2,319,427) -

713,263 - 713,263

332 - 332

135,639 - 135,639

140,521 - 140,521

(80,850) - (80,850)

86,137 - 86,137

1,686,313 - 1,686,313

- - -

- - - 35,940,735$ (2,346,535)$ 33,594,200$

-

1,994,519$ -$ 1,994,519$

45,000 - 45,000

1,564,330 (1,564,330) -

268,943 (268,943) -

7,152 - 7,152

1,226,101 - 1,226,101

402,683 - 402,683

290,524 - 290,524

1,096 - 1,096

95,864 - 95,864

5,896,212 (1,833,273) 4,062,939

190,030 (190,030) -

320,015 - 320,015

26,700 - 26,700

15,767 - 15,767

362,482 - 362,482

1,049,512 - 1,049,512

1,698,359 - 1,698,359

615,284 - 615,284

- - -

279,351 - 279,351

3,642,506 - 3,642,506

1,535,232 - 1,535,232

464,387 - 464,387

1,731,776 (296,124) 1,435,652

1,139,879 - 1,139,879

4,871,274 (296,124) 4,575,150

60



Low-Rent

Public Housing

14.850


Vouchers

EXPENSES (continued):

Protective Services

Protective Services - Other Contract Costs - - -

Protective Services - Other 83,690 119,235 -

Total Protective Services 83,690 119,235 -

Insurance Premiums

Property Insurance - - -

Liability Insurance - - -

Workmen's Compensation 198,435 24,297 2,213

All Other Insurance 434,956 122,600 28,582

Total insurance Premiums 633,391 146,897 30,795

General Expenses

Other General Expenses 223,367 22,500 26,016

Compensated Absences (872) 7,917 1,881

Payments in Lieu of Taxes 0 - -

Bad debt - Tenant Rents 121,462 20,221 -

Bad debt - Other 29,205 - -

Total Other General Expenses 373,162 50,638 27,897

Financial Expenses

Interest of Mortgage (or Bonds) Payable 274,250 211,902 0

Total Financial Expenses 274,250 211,902 -

TOTAL OPERATING EXPENSES 10,469,278 1,978,655 1,475,668

EXCESS OPERATING REVENUE 2,433,813 (142,684) 16,801,866

Extraordinary Maintenance 145,140 - -

Casualty Losses - Non-Capitalized 0 - 0

Housing Assistance Payments - 0 15,765,417

HAP Portability - In - 0 763,671

Depreciation Expense 4,326,703 61,025 0

Total Other Expenses 4,471,843 61,025 16,529,088

TOTAL EXPENSES 14,941,121$ 2,039,680$ 18,004,756$

EXCESS OF REVENUE OVER EXPENSES (2,038,030)$ (203,709)$ 272,778$

Other Financing Sources

Operating Transfer In 413,017 - -

Operating Transfer Out (413,017) - -

Inter Project Excess Cash Transfer In 410,000 - -

Inter Project Excess Cash Transfer Out (410,000) - -

Prior Period Adjustments, Equity Transfers, and Correction of Errors (811,290) 249,738 (78,858)

Beginning Net Position 92,633,425 10,529,140 (1,061,942)

Ending Net Position 89,784,105$ 10,575,169$ (868,022)$

61



REVENUES:


Protective Services

Protective Services - Other Contract CostsProtective Services - Other

Total Protective Services

Insurance Premiums

Property Insurance

Liability Insurance

Workmen's Compensation

All Other Insurance

Total insurance Premiums

General Expenses

Other General Expenses

Compensated Absences

Payments in Lieu of Taxes

Bad debt - Tenant Rents

Bad debt - Other

Total Other General Expenses

Financial Expenses

Interest of Mortgage (or Bonds) Payable

Total Financial Expenses

TOTAL OPERATING EXPENSES

EXCESS OPERATING REVENUE

Extraordinary Maintenance

Casualty Losses - Non-Capitalized

Housing Assistance Payments

HAP Portability - In

Depreciation Expense

Total Other Expenses

TOTAL EXPENSES

EXCESS OF REVENUE OVER EXPENSES


Operating Transfer In

Operating Transfer Out

Inter Project Excess Cash Transfer InInter Project Excess Cash Transfer Out

Prior Period Adjustments, Equity Transfers, and Correction of Errors

Beginning Net Position

Ending Net Position

COCC HHA Development, Inc.

14.870 Resident

Opportunity and

Supportive Services

- - -

- - -

- - -

- - -

- - -

62,411 - -

71,359 - -

133,770 - -

17,904 - 0

7,830 - (1,538)

- - -

- - -

75,221 - -

100,955 - (1,538)

- -

- - -

3,046,564 7,675 169,708

(300,874) (7,645) 8,711

32,969 - -

- - -

- - -

- - -

- - 0

32,969 - -

3,079,533$ 7,675$ 169,708$

(333,843)$ (7,645)$ 8,711$

- - -

- - -

- - -

- - -

(212,177) - -

(3,009,710) 169,777 (50,710)

(3,555,730)$ 162,132$ (41,999)$

62



REVENUES:


Protective Services

Protective Services - Other Contract CostsProtective Services - Other

Total Protective Services

Insurance Premiums

Property Insurance

Liability Insurance

Workmen's Compensation

All Other Insurance

Total insurance Premiums

General Expenses

Other General Expenses

Compensated Absences

Payments in Lieu of Taxes

Bad debt - Tenant Rents

Bad debt - Other

Total Other General Expenses

Financial Expenses

Interest of Mortgage (or Bonds) Payable

Total Financial Expenses

TOTAL OPERATING EXPENSES

EXCESS OPERATING REVENUE

Extraordinary Maintenance

Casualty Losses - Non-Capitalized

Housing Assistance Payments

HAP Portability - In

Depreciation Expense

Total Other Expenses

TOTAL EXPENSES

EXCESS OF REVENUE OVER EXPENSES


Operating Transfer In

Operating Transfer Out

Inter Project Excess Cash Transfer InInter Project Excess Cash Transfer Out

Prior Period Adjustments, Equity Transfers, and Correction of Errors

Beginning Net Position

Ending Net Position

Subtotal ELIM Total

- - -

202,925 - 202,925

202,925 - 202,925

- - -

- - -

287,356 - 287,356

657,497 - 657,497

944,853 - 944,853

289,787 - 289,787

15,218 - 15,218

- - -

141,683 - 141,683

104,426 - 104,426

551,114 - 551,114

486,152 - 486,152

486,152 - 486,152

-

17,147,548 (2,319,427) 14,828,121

-

18,793,187 (27,108) 18,766,079

178,109 - 178,109

- - -

15,765,417 (27,108) 15,738,309

763,671 - 763,671

4,387,728 - 4,387,728

21,094,925 (27,108) 21,067,817

38,242,473$ (2,346,535)$ 35,895,938$

(2,301,738)$ -$ (2,301,738)$

413,017 - 413,017

(413,017) - (413,017)

410,000 - 410,000

(410,000) - (410,000)

(852,587) - (852,587)

99,209,980 - 99,209,980

96,055,655$ -$ 96,055,655$

63

1 The actual program costs of Phase CT003RPS061A012 are as follows:

Funds Approved 480,000$

Funds Expended 480,000

Excess/(Deficiency) of Funds -$

Funds Advanced 480,000$

Funds Expended 480,000

Excess/(Deficiency) of Funds Advanced -$

2 Audit period additions totaled $116,004.

3 All ROSS Program costs have been paid and all related liabilities have been

discharged through payment.


Hartford, Connecticut

Year ended December 31, 2016

Statement and Certification of Actual ROSS Program Costs

Grant Number CT003RPS061A012

64

INDEPENDENT AUDITOR’S 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

To the Board of Commissioners of the Housing Authority of the City of HartfordHartford, Connecticut

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 Standards issued by the Comptroller General of the United States, the financial statements of the Authority, as of and for the year ended December 31, 2016, and the related notes to the financial statements, which collectively comprise the Authority's basic financialstatements, and have issued our report thereon dated September 22, 2017.

Internal Control over Financial Reporting

In 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.

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. 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.

Our consideration for internal control was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control that might be material weaknesses or significant deficiencies and therefor, material weaknesses or significant deficiencies may exist that were not identified. We did identify a certain deficiency in internal control, described in the accompanying schedule of findings and questioned costs as Finding No. 2016-001 that we consider to be a material weakness.


r u b in o . c o m


66

Compliance and Other Matters

As 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 adirect 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.

The Authority’s Response to Findings

The Authority’s response to the findings identified in our audit is described in the accompanying corrective action plan. The Authority’s response was not subjected to the auditing procedures applied in the audit of the financial statements and, accordingly, we express no opinion on it.

Purpose of this Report

The 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.

Bethesda, Maryland September 22, 2017

INDEPENDENT AUDITOR’S REPORT ON COMPLIANCE FOR EACH MAJOR PROGRAM AND ON INTERNAL CONTROL OVER COMPLIANCE REQUIRED

BY UNIFORM GUIDANCE

To the Board of Commissioners of the Housing Authority of the City of HartfordHartford, Connecticut

Report on Compliance for Each Major Federal Program

We have audited the Housing Authority of the City of Hartford’s (the Authority’s)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 December 31, 2016. The Authority’s major federal programs are identified in the summary of auditor’s results section of the accompanying schedule of findings and questioned costs.

Management’s Responsibility

Management is responsible for compliance with federal statutes, regulations, and the terms and conditions of its federal awards applicable to its federal programs.

Auditor’s 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 the audit requirements of Title 2 U.S. Code of Federal RegulationsPart 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Those standards and the Uniform Guidance require 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’s compliance.


r u b in o . c o m


68

Opinion on Each Major Federal Program

In our opinion, 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 December 31, 2016.

Report on Internal Control over Compliance

Management 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 the Uniform Guidance, 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 material weakness 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 did not identify any deficiencies in internal control over compliance that we consider to be material weaknesses. However, material weaknesses may exist that have not been identified.

The 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 the Uniform Guidance. Accordingly, this report is not suitable for any other purpose.

Bethesda, MarylandSeptember 22, 2017

INDEPENDENT AUITOR’S REPORT ON COMPLIANCE FOR EACH MAJOR STATE PROGRAM; REPORT ON INTERNAL CONTROLS OVER COMPLIANCE;

AND REPORT ON THE SCHEDULE OF EXPENDITURES OF STATE FINANCIAL ASSISTANCE REQUIRED BY THE STATE SINGLE AUDIT ACT

To the Board of CommissionersHousing Authority of the City of HartfordHartford, Connecticut

Report on Compliance for Each Major State Program

We have audited the Housing Authority of the City of Hartford’s (the “Authority”) compliance with the types of compliance requirements described in the Office of Policy and Management’s Compliance Supplement that could have a direct and material effect on each of the Authority’s major state programs for the year ended December 31, 2016. The Authority’s major state programs are identified in the summary of auditor’s 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 state programs.

Auditor’s Responsibility

Our responsibility is to express an opinion on compliance for each of the Authority’s major state 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 the State Single Audit Act (C.G.S. Sections 4-239 to 4-236). Those standards and the State Single Audit Act require 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 state 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 state project. However, our audit does not provide a legal determination of the Authority’s compliance.


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70

Opinion on Each Major State Program

In our opinion, 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 state programs for the year ended December 31, 2016.

Report on Internal Control over Compliance

Management 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 state program to determine the auditing procedures that are appropriate in the circumstances for the purpose of expressing an opinion on compliance for each major state project and to test and report on internal control over compliance in accordance with the State Single Audit Act, 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 state 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 state 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 state program that is less severe than a material weakness 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 did not identify any deficiencies in internal control over compliance that we consider to be material weaknesses. However, material weaknesses may exist that have not been identified.

The 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 the State Single Audit Act. Accordingly, this report is not suitable for any other purpose.

Bethesda, MarylandSeptember 22, 2017

Federal and State

Grantor/Program Title

Federal CFDA

Number

Grant

Expeditures

U.S. Department of Housing and Urban Development:

Direct Awards:

Housing Choice Vouchers 14.871 17,371,028$

Low Rent Public Housing 14.850 5,463,286

Capital Fund Program 14.872 2,646,019 Resident Opportunity and Supportive Services 14.870 178,419

Total HUD Expenditures 25,658,752

TOTAL FEDERAL EXPENDITURES 25,658,752$


SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS

For the year ended December 31, 2016

_____________

See Notes to the Schedule

71

HOUSING AUTHORITY OF THE CITY OF HARTFORDNOTES TO THE SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS

December 31, 2016____________________________

72

1. BASIS OF PRESENTATION

The schedule of expenditures of federal awards is presented using the accrual basis of accounting. The information in this schedule is presented in accordance with the requirements of Uniform Guidance, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards. Therefore, some amounts presented in the schedules may differ from amounts presented in, or used in the preparation of, the basic financial statements.

2. SIGNIFICANT ACCOUNTING POLICY

The Authority recognizes grant revenue when earned on an accrual basis; that is, activities prerequisite to obtaining benefit have been completed, such as, complying with the terms and conditions of the grant agreement.

3. SUBRECIPIENTS

The Authority provided no federal awards to subrecipients during the year ended December 31, 2016.

4. INDIRECT COST RATE

The Authority has not elected to use the 10% de minimis cost rate.

State Grantor/Pass-Through Grantor/

Program or Cluster Title

State Grant

Program

Core-CT

Grant

Expeditures

Department of Housing

Direct Awards:

Flex Program 12309-ECD46000 713,263$

TOTAL STATE EXPENDITURES 713,263$


SCHEDULE OF EXPENDITURES OF STATE FINANCIAL ASSISTANCE

For the year ended December 31, 2016

_____________

See Notes to the Schedule

73

HOUSING AUTHORITY OF THE CITY OF HARTFORDNOTES TO THE SCHEDULE OF EXPENDITURES OF

STATE FINANCIAL ASSISTANCEDecember 31, 2016

____________________________

74

1. BASIS OF PRESENTATION

The above schedule of expenditures of state financial assistance includes the state grant activity of the Housing Authority of the City of Hartford (the “Authority”) under programs of the State of Connecticut for the fiscal year ended December 31, 2016. The financial assistance funds the Authority’s state housing developments.

HOUSING AUTHORITY OF THE CITY OF HARTFORDSCHEDULE OF FINDINGS AND QUESTIONED COSTS

December 31, 2016____________________________

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SECTION I – SUMMARY OF AUDITOR’S RESULTS

Financial Statements

1. Type of auditor’s report issued: Qualified

2. Internal control over financial reporting:a. Material Weakness(es) identified? Yesb. Significant deficiency(ies) identified that are not

considered to be material weakness(es)? No3. Noncompliance material to financial statements

noted?No

Federal Awards

4. Internal control over major programs:a. Material weakness(es) identified? Nob. Significant deficiency(ies) identified that are not

considered to be material weakness(es)? No

5. Type of auditor’s report issued on compliance for major programs: Unmodified

6. Any audit findings disclosed that are required to be reported in accordance with section 510(a) of Uniform Guidance?

No

7. Identification of Major Programs:

Federal Grantor/Program Title CFDA No.U.S. Department of Housing and Urban Development (HUD):

Housing Choice Voucher Program 14.871 $ 17,371,028

8. Dollar threshold used to distinguish between Type A and Type B programs: $ 750,000

9. Auditee qualified as low-risk auditee under Uniform Guidance, section 530? No


December 31, 2016____________________________

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SECTION I – SUMMARY OF AUDITOR’S RESULTS (continued)

State Financial Assistance

10. Internal control over major program:

a. Material weakness identified? Nob. Significant deficiencies identified? None reported

11. Type of auditor’s report issued on compliance for major program: Unmodified

There were no audit findings disclosed that are required to be reported in accordance with Section 4-236-24 of the Regulations of the State Single Audit Act.

Identification of Major Programs:

State Grantor/Program Title CT NumberDepartment of Housing: Flex Program 12039-

ECD46000$ 713,263

The threshold for distinguishing types A and B program was $300,000.

HOUSING AUTHORITY OF THE CITY OF HARTFORDSCHEDULE OF PRIOR YEAR FINDINGS AND QUESTIONED COSTS

December 31, 2016____________________________

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SECTION I – FINANCIAL STATEMENT FINDINGS

2016-001 Financial Reporting

Material Weakness in Internal Controls

Repeated from prior year 2015 (see Prior Year Finding No. 2015-001)

Condition: The Authority did not have adequate controls over the year-end financial reporting process to detect material misstatements. Numerous adjustments were needed during the audit process to properly reflect the financial data schedule in accordance with generally accepted accounting principles.

Criteria: In accordance with AU 265 Communicating Internal Control Related Matters, when a deficiency or a combination of deficiencies in internal control is identified, which indicates that there is a reasonable possibility that a material misstatement of the financial statements will not be presented or detected and corrected on a timely basis; a material weakness should be reported.

Cause: Due to the lack of permanent staffing, the Authority did not have the resources available for the complexity of the year end close process in accordance with generally accepted accounting principles which resulted in numerous audit adjustments. The HUD required 60 day unaudited submission adds to the difficulty in reconciling and properly accounting for the Authority’s activity given the current staffing level to provide financial information in a timely and accurate manner.

Effect: The unaudited data submitted to REAC required material audit adjustments and the overall timing of the audit was delayed considerably.

Auditor’s Recommendations: Management should determine proper staffing needs given the size and complexity of the Authority, to ensure proper financial reporting in the financial data schedule in accordance with generally accepted accounting principles, which is due 60 days after year end. We further recommend that the Authority utilize a year end checklist that would assist in the year end close in a timely manner and prepare for an efficient audit in an organized method, whereby year end binders are utilized for gathering the support of all material general ledger items.

View of Responsible Officials: The Authority has evaluated Finance Department staffing and has made several new hires to bring the department to an appropriate level both in staffing and experience. The Authority is moving forward to ensure the department has the appropriate tools and training. The Finance Department is reviewing its current methodologies and practices in order to prepare for year end, and fully intends to develop and implement best practices to better schedule and organize the process.


December 31, 2016____________________________

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SECTION II – FEDERAL AWARD FINDINGS AND QUESTIONED COSTS

None.


December 31, 2016____________________________

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SECTION I – PRIOR YEAR FINANCIAL STATEMENT FINDINGS

2015-001 Financial Reporting

Material Weakness in Internal Controls

Condition: The Authority did not have adequate controls over the year-end financial reporting process to detect material misstatements. Numerous adjustments were needed during the audit process to properly reflect the financial data schedule in accordance with generally accepted accounting principles.

Auditor’s Recommendations: Management should determine proper staffing needs given the size and complexity of the Authority, to ensure proper financial reporting in the financial data schedule in accordance with generally accepted accounting principles, which is due 60 days after year end. We further recommend that the Authority utilize a year end checklist that would assist in the year end close in a timely manner and prepare for an efficient audit in an organized method, whereby year end binders are utilized for gathering the support of all material general ledger items.

Current Status: Repeated in current year, see Finding No. 2016-001

SECTION II – PRIOR YEAR FEDERAL AWARD FINDINGS AND QUESTIONED COSTS

2015-002 Eligibility

Housing Voucher Cluster

Material Weakness in Internal ControlMaterial Noncompliance

Condition: In the prior year audit, tenant files had numerous exceptions including, 3 with missing documentation to support a full time student deduction, 2 with the incorrect voucher size for the family unit size, 2 with incorrect utility allowances, 1 with incorrectly calculated income and 1 that did not correctly abate HAP after a failed follow-up inspection.

Status: HACH has implemented a new process to perform quality control review procedures. One file per caseworker (5) per month, chosen randomly will ensure proper monitoring of compliance with program requirements as they pertain to tenant eligibility. Staff will undergo an onsite “refresher course” on eligibility and rent calculation through a training provided by a professional housing consultant organization. This finding is cleared.

PROCUREMENT THROUGH COMPETITIVE PROPOSAL REQUEST …€¦ · Sample Contract List of Authority LIPH Developments and other Parcels Current HACH Physical Needs Assessment Authority

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