LETTER OF BUDGET

Fiscal Year 2023

To: Division of Local Government

Attn: Mia Gonzales

Local Government Services

Email: dola_dlg_filing@state.co.us

December 30, 2023

The Middle-Income Housing Authority (“MIHA” or “Authority”) operates on a fiscal year rather than a calendar year. The Authority was created by SB22-232, amended by SB23-035, and is an independent special-purpose authority established to promote affordable rental housing projects for middle-income workforce. The Authority was formed in September 2022 and held the initial board meeting on October 21, 2022. Fiscal Year 2023 (July 1, 2022 - June 30, 2023) was the first operational year for MIHA.

The Office of Economic Development and International Trade (OEDIT) has an annual contract with MIHA to provide administrative services. In FY23, OEDIT worked with the Authority to organize the Board, build the organizational structure and comply with all statutory requirements. A preliminary budget was considered at the March 2023 board meeting, where the board indicated support with the recognition that there may be changes due to the many unknowns of the initial year operations. There was not a quorum to officially approve the Budget at that time and the FY23 budget/budget resolution was never officially approved by the board. The Budget was amended by the Executive Director multiple times after the board voted to approve contracts, but there was no official approval of the amendments.

In November 2023, OEDIT discovered that MIHA, a political subdivision of the state, was not exempt from the State Local Government Budget Laws and therefore required to submit annual budget reports to DOLA. OEDIT immediately contacted DOLA staff and initiated the steps to come into compliance with the State Budget Law. The MIHA Board directed OEDIT to submit this FY23 budget which was used as the working budget of the organization.

A budget, budget resolution and appropriation resolution was approved for fiscal year 2024 and that report was submitted separately.

The FY23 Board Chair is no longer available to sign/submit the FY23 Report and the Board directed OEDIT to submit this report. Future reports will be signed by the board chair and treasurer.

If there are any questions, please contact Hilary Cooper, OEDIT at 720-215-1339 or hilary.cooper@state.co.us.

Sincerely,

(Signature on PDF document)

Hilary Cooper

Director of Innovative Funding for Housing

Office of Economic Development and International Trade

Colorado Middle Income Housing Authority

Program Budget Fiscal Year 24

Table 1: Fiscal Year 21 and 22 Actuals and Fiscal Year 23 Beginning Balances in Dollars

Account Type	Fiscal Year 21 Actuals	Fiscal Year 22 Actuals	Fiscal Year 23 Budget
Treasury Account Balance	N/A	N/A	0.00
Operating Account Balance	N/A	N/A	0.00
Total Account Starting Balances	N/A	0.00	0.00

Table 2: Fiscal Year 21 and 22 Revenue Sources Actuals and FY23 Budget in Dollars

Revenue Source	Fiscal Year 21 Actual	Fiscal Year 22 Actual	Fiscal Year 23 Budget
SB22-232	N/A	N/A	1,000,000.00
Interest	N/A	N/A	N/A
Project Fees	N/A	N/A	N/A
Project Revenue	N/A	N/A	N/A
Total Revenue	N/A	N/A	1,000,000.00

Table 3: Fiscal Year 21 and 22 Actual Operating Expenses and FY 24 Operating Expenses Budget in Dollars

Operating Expenses	Fiscal Year 21 Actual	Fiscal Year 22 Actual	Fiscal Year 23 Budget
Bank Fees	N/A	N/A	61.00
Accounting	N/A	N/A	19,000.00
Consultants	N/A	N/A	180,000.00
Insurance	N/A	N/A	21,000.00
Miscellaneous Expenses	N/A	N/A	0.00
OEDIT Admin	N/A	N/A	81,408.00
Legal Fees	N/A	N/A	48,000.00
Supplies	N/A	N/A	20.00
Total Expenses	N/A	N/A	349,489.00

Table 4: Fiscal Year 21 and FY 22 Actual Year End Balances and FY 24 Budget in Dollars

Total Expenses and Balances	Fiscal Year 21 Actuals	Fiscal Year 22 Actuals	Fiscal Year 23 Budget
Total Account Balances	N/A	N/A	0.00
Total Revenue	N/A	N/A	1,000,000.00
Total Operating Expenses	N/A	N/A	349,489.00
Total Year End Balance	N/A	N/A	650,511.00

Budget Notes:

● MIHA was formed in September 2022/FY23.

● MIHA was allocated $1 million in SB22-232 and will rely on project revenue for operations.

● MIHA established a State Treasury account to accumulate interest.

● MIHA opened a single operating account in September 2022.

● MIHA is required to complete an annual Audit.

● MIHA retained a consulting group to implement the operations structure of the initial application process.

● MIHA initiated a General Liability & Public Officials Liability Insurance Policy in FY23.

● OEDIT provides administrative staffing and services.

● MIHA retained a law firm for legal services in FY23.