NHA CAFR 2017 final 12 27-2018

PREPARED BY: THE OFFICE OF THE CHIEF FINANCIAL OFFICER
SAMUEL MOOLAYIL, CFO

NEWARK HOUSING AUTHORITY
NEWARK, NJ 07102
COMPREHENSIVE ANNUAL FINANCIAL REPORT
FISCAL YEAR ENDED DECEMBER 31, 2017

NHA CAFR-FY 2017 Page 1

Newark, New Jersey
Comprehensive Annual Financial Report
For the Fiscal Year Ended December 31, 2017
TABLE OF CONTENTS
Page No.
INTRODUCTORY SECTION
Letter of Transmittal………………………………………………………………… 8
Organization Chart………………………………………………………………….. 16
List of Principal Officials………………………………………………………........ 17
FINANCIAL SECTION
Report of Independent Auditors…………………………………………………. 24
Management’s Discussion and Analysis…………………………………………. 28
Basic Financial Statements:
Statement of Net Position…………………………………………………………… 37
Statement of Revenues, Expenses and Changes in Net Position……………………. 39
Statement of Cash Flows……………………………………………………………. 40
Notes to Financial Statements…………………………………………..................... 42
Required Supplementary Information
Required Pension Information…………………………………………..................... 74
Supplementary Information
Schedule of Expenditures of Federal Awards………………………………………. 76
Notes to Schedule of Expenditures of Federal Awards……………………………... 77
Schedule of Findings & Questioned Costs………………………………………….. 80
Financial Data Schedule…………………………………………………………….. 83

TABLE OF CONTENTS (Continued)
STATISTICAL SECTION (Unaudited) Page No.
Financial Trends
Revenues, Expenses and Changes in Net Position………………………… 96
Net Position by Category……………………………………………….…. 97
Capital Assets by Category………………………………………………. 98
Revenue Capacity
Revenue on a Gross Basis…………………………………………………. 100
Debt Capacity
Long Term Bond Payable…………………………………………………. 102
Demographics and Economical Information
Resident Demographics – Low Rent Public Housing Program……………. 104
Resident Demographics – Housing Choice Voucher Program…………….. 107
NHA Demographics and Economic Statics – Ten Year Trend…………… 110
City of Newark Demographics and Economic Statics – Ten Year Trend 111
Employment Status of the City of Newark – Ten Year Trend…………. 112
Wage and Salary Employment, City of Newark, New Jersey -
Total Employment by Industry 2007-2016 Ten Year Trend………….. 113
Operating Information
Section 8 Management Assessment Program (SEMAP) Indicators……….. 115
Public Housing Assessment System (PHAS) Indicators…………………... 116
Summary of Public Housing Developments – NHA Run Properties……... 117
Summary of Public Housing Developments – Privately Run Properties….. 119
NHA Real Estate Portfolio………………………………………………... 121
Employee Head Count…………………………………………………….. 142
COMPLIANCE SECTION
Independent Auditor's Report on Internal Control over Financial
Reporting and on Compliance and other Matters in Accordance with
Government Auditing Standards 38-39…………………………………… 144
Independent Auditor's Report on Compliance with Requirements
Applicable to Each Major Program and Internal Control Over
Compliance Required by the Uniform Guidance and State of
New Jersey OMB Circular 15-08………………………………………….. 146
Detailed Listing of Comments and Suggestions for Improvement
from GFOA and response by NHA ……………………………………… 149

The Newark community came together on Monday Jan 23, 2017 to celebrate the reopening of a long-shuttered
downtown landmark. The Hahne and Company building officially re-opened with a ribbon cutting ceremony led
by some of Newark’s most prominent players, both public and private.

INTRODUCTORY SECTION

AERIAL VIEW OF CITY OF NEWARK
The most populous city in New JerseyNHA CAFR-FY 2017 Page 7

500 Broad Street · Newark, NJ 07102
Tel. (973) 273-6410 · Fax (973) 273-6549
www.newarkha.org
December 28, 2018
The Board of Commissioners
Newark Housing Authority
Newark, New Jersey 07102
The Newark Housing Authority (the “Authority” or “NHA”) is pleased to submit its
Comprehensive Annual Financial Report (“CAFR”) for the fiscal year ended December 31,
2017. The Authority’s Office of the Chief Financial Officer (“CFO”) prepared this report
with contributions by finance staff and other departments within the Authority following
guidelines recommended by the Government Finance Officers Association (“GFOA”) of the
United States and Canada. Each contributor has our sincere appreciation for his or her work
in the preparation of this document. The organization, form and contents of this report were
prepared in accordance with the standards prescribed by the Governmental Accounting
Standards Board (“GASB”), the GFOA of the United States and Canada, the American
Institute of Certified Public Accountants (“AICPA”), and the U.S. Department of Housing
and Urban Development (“HUD”).
This report consists of four sections:
(1) Introductory Section. This section includes a transmittal letter, a chart of the
Authority’s functional organization, and a list of the Authority’s principal officials.
(2) Financial Section. This section includes the Independent Auditor’s Report,
Management’s Discussion and Analysis (“MD&A”) of the financial statements, audited
financial statements and notes to the basic financial statements for the fiscal year ended
December 31, 2017. This section also includes certain supplemental information, findings
and recommendations and HUD required schedules.
(3) Statistical Section. This section includes various statements of unaudited financial,
demographic and other miscellaneous data on the Authority and City of Newark for the
past ten years.
(4) Compliance Section. This section includes the auditor’s reports on internal control and
compliance with applicable laws, regulations, contracts and grants. Also included NHA
responses to GFOA’s comments and suggestions for improvement.

The Authority’s financial statements, as required by HUD and Office of Management and
Budget’s (OMB) “Super Circular” 2 CFR Part 200 and State of New Jersey Department of
the Treasury issued Circular Letter 15-08-OMB. The HUD’s Real Estate Assessment Center
(“REAC”) requires Public Housing Agencies (“PHAs”) to annually publish a complete set
of financial statements presented in conformity with generally accepted accounting
principles (“GAAP”) and audited in accordance with generally accepted auditing standards
by a firm of licensed Certified Public Accountants (CPAs). Pursuant to that requirement, we
hereby issue the CAFR of the Newark Housing Authority for the year ended December 31,
2017 audited by Novogradac & Company LLP, a firm of licensed CPAs. The independent
auditors issued an unmodified opinion on the Authority’s financial statements for the fiscal
year ended December 31, 2017, indicating that they were fairly presented, in all material
respects, and in conformity with GAAP. The Independent auditor’s report is presented as
the first component of the financial section of this CAFR.
The data presented in this report is the responsibility of the management of the
Authority. To the best of our knowledge and belief, the data as presented is accurate in all
material aspects, is presented in a manner designed to fairly state the financial position and
results of operations of the Authority, and all disclosures necessary have been included to
enable the reader to gain an understanding of the Authority’s affairs. As required by
accounting principles generally accepted in the United States of America, management has
provided a narrative introduction, overview, and analysis to accompany these financial
statements entitled Management’s Discussion and Analysis. The Authority’s MD&A can be
found immediately following the Independent Auditor’s Report. This letter of transmittal
is designed to complement the MD&A and should be read in conjunction with it.
Profile of the Authority
The Authority was created by a City of Newark ordinance in accordance with the State
of New Jersey Local Housing Authorities Law in 1938 (N.J.S.A. 40A:12A). Pursuant to
the procedures of the “Local Authorities Fiscal Control Law,”P.L.1983, C.313
(C.40A:5A-1 et seq.), the governing body of the Authority is consist of seven
members, five members shall be appointed by the governing body of the municipality,
one by the mayor of the municipality, and one by the Commissioner Department of
Community Affairs (DCA) of the State of New Jersey.
The Authority is the largest PHA in the State of New Jersey provides safe, decent and
affordable housing to approximately 10,600 low and moderate income Newark
residents. Through the Section 8 Housing Choice Voucher (“HCV”) Program, the
Authority assists approximately 12,600 residents in locating and renting housing in
privately owned buildings.
As of December 31, 2017 the Authority owns and operates 6,311 low-rent Public
Housing rental Annual Contribution Contract (“ACC”) units located in 24 Asset

Management Properties (AMPs), 200 Section 8 rental assistance units for low income
elderly tenants at development called Branch Brook Park Housing Manor. In addition
there are 360 ACC units in 9 Mixed-Finance developments.
HUD has also contracted with the Authority for the support of 6,987 Housing Choice
Vouchers. Under the HCV Program, the Authority administers contracts with private
landlords owning rental property. The Authority subsidizes the family’s rent through
housing assistance payment made to the landlord. The program is administered under
an ACC with HUD.
The Authority’s mission is ‘to invest in our families by building and maintaining
affordable housing to encourage economic independence and healthy communities’.
The Authority's basic financial statements consist of a single enterprise fund,
which includes the following programs:
 Low Rent Public Housing (“LRPH”) Program
 Public Housing Capital Fund (“CFP”) Program
 Resident Opportunity and Self-sufficiency (“ROSS”) Program
 Section 8 Housing Choice Voucher (“HCV”) Program
 Business Activities-Urban Renewal (“UR”) Program
 Component Units-Branch Brook Park Manor (“BBPM”)
 Up-frontGrant(“UFG”)Program
 State and Local Programs
Please refer to Note 1 to the financial statements for a description of Authority
programs. For further analysis, we have also included supplemental financial
schedules for the programs individually, which can be found following the notes to the
basic financial statements.
Factors Affecting Financial Condition
To assess the Authority’s overall financial condition, the following information
contained within the Authority’s financial statements should be considered in
connection with an understanding of the following major factors affecting its
financial condition:
Congressional Budget and HUD Policy. As a PHA, the Authority's primary source
of funding is HUD. The amount of funding received from HUD is affected by
Congressional housing legislation and the federal budget. The Authority continually
monitors changes and trends in the Congressional Budget and HUD policy to adjust
its strategy and financial planning accordingly.
Operating Subsidy. Since Calendar Year (“CY”) 2012 HUD funded Operating
Subsidies to PHAs an average of 89.05% of its full eligibility. HUD’s final

proration for CY 2017 was 93.10% and CY 2018 funding proration is at 94.74%.
During Fiscal Year (“FY”) 2017, the Authority received $47.3 million in operating
subsidies, $16.5 million in Public Housing Capital Fund Program. Also during FY
2018, the Authority received $ 61.3 million in Housing Assistance Payments and
Administrative fees combined from HUD for the Section 8 Housing Choice
Voucher Programs.
Financial Results and Outlook
The Authority's operating loss as of December 31, 2017 is $29.7 million as
compared to $18.6 million for the previous year. Operating Loss increased by $11.1
million primarily due to a decrease of $16.2 million in operating revenues offset
by a decrease of $5.1 million in operating expenses.
Increased Revenue. Rent provides a significant portion of the Authority’s income.
The Authority began phasing in a series of rent increases targeted to residents
who were paying less than 30 percent of their income towards rent. Due to a new
HUD requirement and change in federal law, NHA shall review the Flat Rent
structure and Fair Market Rents annually and adjust the rents as needed. Annual
flat rent increases will be limited to 35 percent of the existing flat rent amount.
Where applicable, increases to bring the NHA’s existing flat rent up to 80% of the
FMR, will be phased in.
Improve Central Office and Administrative Efficiency. Through the years, the
Authority has taken aggressive measures to contain spending through various
workforce reduction programs. During 2017, the NHA has continued assessing its
central office and costs centers operations and identifying opportunities to increase
efficiency streamline activities and reduce redundancy in the central office. The 2017
Operating Budget reflects initiatives through which central office and administrative
office activities were streamlined and resources redirected to the frontline. Although
the Authority has been taking measures to control costs, savings have been offset by
increases in certain other costs such as employee entitlements including pension, and
health insurance. The Authority's OPEB costs continue to be significant, with $ 9.8
million of expense in 2017, the Authority's OPEB liability at December 31, 2017 is
approximately $33.2 million, and NHA continues to use a "pay-as-you-go" approach to
OPEB costs. Due to NHA's funding challenges, as with many other governmental
entities, this liability remains unfunded, and there is no clear source of future funding.
Also, as a result of the implementation of Governmental Accounting Standards Board
(“GASB”) Statement No. 68 as amended by (“GASB”) No. 71, the Authority Pension
Liability is $64.5 million at December 31, 2017.
Energy Conservation. On September 30, 2011 the Authority issued Certificates of
Participation (COPs), Series 2011 in the amount of $49,560,203 to fund the Authority
Energy Performance Contract (EPC Phase 1A) capital equipment lease program. The
COPs were refinanced over a 15 year term on May 31, 2013 with ‘Public Finance Energy

Improvement Nonrecourse Promissory Note, Series 2013’ in the amount of
$54,481,179.30. The note is nonrecourse and bears an interest rate of 3.48% with semi-
annual principal and interest payments through the maturity date of April 1, 2028. As
a result of the refinancing, the Authority expanded its Energy Performance Contract
(EPC).
On September 30, 2013 the Authority issued ‘Equipment Lease Purchase Agreement’
in the amount of $3,579,272 to fund the Authority Energy Performance Contract (EPC
Phase 1B) capital equipment lease program. The certificates mature at various times
through April, 2028 bearing interest at 3.50% and are payable by the Authority solely
from add-on subsidy incentives from HUD due to energy savings from the properties
owned by the Authority. The loan is nonrecourse.
On December 11, 2015, the Authority entered into an Equipment Lease- Purchase
Agreement (EPC Phase 2) in the amount of $84,000,000 to provide for Energy Efficient
improvements to Authority buildings. Interest accrues at 3.92% with semi-annual
payments due in accordance with the Lease Payment Schedule. The lease matures on
October 1, 2031 and is nonrecourse.
Public Housing Assessment System (“PHAS”). During 2011, HUD issued PHAS Interim
Rule, which revised the previous PHAS guidelines. Under the PHAS Interim Rule, the
performance of Public Housing Agencies (“PHAs”) is measured for a maximum total
score of 100 in the following categories:
Physical Assessment; 40 points,
Financial Condition; 25 points,
Management Operations; 25 points and,
Capital Fund Program; 10 points.
Under the interim Rule, HUD will use indicators that cover both the Financial
Condition and Management Operations components to assess the financial
performance of PHAs. The Authority’s overall score for Fiscal Year Ended December
31, 2016, under the Interim Rule was 44, which designates the Authority as a troubled
PHA. The final PHAS score for Fiscal Year Ended December 31, 2017 will not be released
by HUD until after the review and approval of the audited Financial Data Schedules
(“FDS”) by the REAC team.
Section Eight Management Assessment Program (SEMAP). The SEMAP measures the
performance of the PHAs that administer the Housing Choice Voucher program in 14
key areas. The 14 key indicators of PHA performance are:
(i) Proper selection of applicants from the housing choice voucher waiting list,
(ii) Sound determination of reasonable rent for each unit leased,
(iii) Establishment of payment standards within the required range of the HUD
fair market rent,

(iv) Accurate verification of family income,
(v) Timely annual reexaminations of family income,
(vi) Correct calculation of the tenant share of the rent and the housing assistance
payment,
(vii) Maintenance of a current schedule of allowances for tenant utility costs,
(viii) Ensure units comply with the housing quality standards before families enter
into leases and PHAs enter into housing assistance contracts,
(ix) Timely annual housing quality inspections,
(x) Performing of quality control inspections to ensure housing quality,
(xi) Ensure that landlords and tenants promptly correct housing quality
deficiencies,
(xii) Ensure that all available housing choice vouchers are used,
(xiii) Expand housing choice outside areas of poverty or minority concentration,
and
(xiv) Enroll families in the family self-sufficiency (FSS) program as required and
help FSS families achieve increases in employment income.
SEMAP helps HUD target monitoring and assistance to PHA programs that need the
most improvement. The NHA’s HCV program has historically been designated a High
Performer, and recently had a successful SEMAP Confirmatory Review conducted by
the Newark Field Office. The NHA’s SEMAP score for the 12/31/2017 Fiscal Year End
was 93% (High Performer), and 97% (High Performer) for the 12/31/2016 Fiscal Year
End.
Awards and Acknowledgements
The GFOA of the United States and Canada awarded the fourth consecutive
Certificate of Achievement for Excellence in Financial Reporting to the Authority for
its CAFR for the year ended December 31, 2016. The FY 2016 Certificate is displayed
right after the cover page of this document. This is the fifth consecutive year that the
Authority is competing for this prestigious award. The Certificate of Achievement is
the highest form of recognition for excellence in state and local government financial
reporting. In order to be awarded a Certificate of Achievement, a government unit
must publish an easily readable and efficiently organized CAFR that demonstrates a
constructive “spirit of full disclosure.” This report must satisfy both generally
accepted accounting principles and applicable legal requirements.
The GFOA's Certificate of Achievement for Excellence in Financial Reporting submission
deadline is six months after the fiscal year end. Due to restructuring and transition of
the Authority the submission has been delayed. The Authority has issued its audited
financial statements for the year ended December 31, 2017, accompanying Single Audit
Report on Dec 27, 2018. The Authority has requested an extension until December 31,
2018 from GFOA and has granted the extension. This has afforded the Authority the
opportunity to compete for the GFOA’s Certificate of Achievement for Excellence in
Financial Reporting. A Certificate of Achievement is valid for a period of one year

only. We believe that our current CAFR continues to meet the Certificate of
Achievement Program’s requirements and we are submitting to the GFOA to
determine its eligibility for another certificate.
Respectfully Submitted,
Samuel G Moolayil
Chief Financial Officer

Map of City of Newark (above), Newark Prudential Center and the skyline (below)

Yetla Martinez
Executive
Assistant
BOARD OF
COMMISSIONERS
Sam Manigault
Chief of Staff
FINANCE
DEPARTMENT
Emanuel
Foster
Acting Chief of
Operations
VACANT
Director of
Procurement/
Contracts
H C V P
Arthur Martin Jr.
Director of Workplace
Compliance/Risk Manager
Sonia Knight
Administrative
Secretary
Florette
Newman
Legal
Department
Assistant
Pauline James
Sr. Accountant
Kerry-Ann Mullings
Accounts Payable
Coordinator
Marcus Smith
Asset Coord.
Account & Finance
Dashon
Parker
Contract
Specialist
Vacant
Contract Specialist
Raymond Avila
Production Operator
Tabindra Kamal
Program Coordinator
Access
Inez Smith
Director of
Occupancy
CENTRAL
MAINTENANCE
BOILER
OPERATIONSASSET
MANAGEMENT
Tanesha
Brown
Acting Asset
Manager
Rasheedah
Brooks
Assist. Asset
Manager
Joseph Plaza
Maint.
Supervisor
George Burch
BMR
Terrell McMiller
BMW
Kali Warren
Acting Maintenance
Mechanic
Yadullah
Westry
BMR
Ann Jones
Janitor C
Maurice Thompson
BMR
Per Diem
PENNINGTON COURT
AMP 2002 227 Units
Seasonal Boiler
Operator
Tachelle Winkey
Acting Asset
Manager
Vacant
Assistant Asset
Manager
Tyrone
Ramsay
BMW
Marvin
LaGrier
Janitor C
Peter
Santos
BMR
Rafael Falcon
Maint. Mechanic
Per Diem
Kim Loyal
BMW
Juan
Bracetty
Temporary Maint.
Supervisor
STEPHEN CRANE
AMP 2006 354 Units
Kuan
Muhammad
Maint. Mechanic
Per Diem
Anita Williams
Asset
Manager
Lonnel Evans
Temp. Maint.
Super.
Olusayo Burke
Asst. Asset
Manager
Morgan
Dixon
BMW
Tyrone
Henderson
BMW
Derick
Osborne
BMW
Lonnel Evans
BMR
Norberto
Morales
Maint.
Mech.
HYATT COURT
AMP 2007 267 Units
Sharon
Muhammad
Asset
Manager
Cynthia Murray
Customer Care
Specialist
Ruben
Martinez
Temp Maint.
Supervisor
Ronald
Hines
BMW
Marlon
Lindsey
BMW
Jeffrey Ellis
Janitor C
TERRELL HOMES
AMP 2009 274 Units
Michelle Jenkins
Asset Manager
Valerie White
Customer Care
Specialist
Henry Fandel
Maint.
Supervisor
Ronald Pena
BMW
Ibin Brown
Janitor C
Manchester
Jacobs
Janitor C
Stanford Starks
BMR
Iris
Allison
BMR
Anthony Brown
BMW
Michael Allen
BMW
BRADLEY COURT
AMP 2014 301 Units
Errol
Macbean
BMR
Jazmin
Montalvo
Temp. Acting
Asset Manager
Yolanda Fuller-
Muhammad
Assist. Asset
Manager
Shawki
Mitchell
Temp. Acting
Maint Super.
Johnny
Hampton
BMW
George
Jefferson
BMR
Angelo Murray
Per Diem
Janitor C
Kevin Strokes
Per Diem
Janitor C
Mark Inman
BMR
Per Diem
Seasonal Boiler
Operator
STEPHEN CRANE ELDERLY
AMP 2016 356 Units
Shyronne Collins
Crawford
Asset Manager
Kenneth
Pierce
Maint. Supervisor
Keith
Johnson
BMW
Robert
Clark Jr.
BMW
Frank Barrino
Janitor C
Mark
PIttman
BMR
Curtis
Wright
Janitor C
Cedric Davis
Maintenance
Mechanic
Jaman Brown
Janitor C
KRETCHMER ELDERLY 21A
AMP 2017 349 Units
Ifeoma Okolo
Customer Care
Specialst
Gary Smalls
Acting
Maintenance
Mechanic
Seasonal Boiler
Operator
Rita Baskerville
Asset
Manager
Danny
Wilkins
Maint. Supervisor
Zakee
Donaldson
Janitor C
Andre J.
Mcnair
Janitor C
Terrell
Wimberly
BMW
Dwight
Jackson
BMR
Thomas
Bullock
Janitor C
Seasonal
Boiler
Operator
SETH BOYDEN ELDERLY 2-21E
AMP 2017 286 Units
Phillip Melvin
BMW
VACANT
Asset Manager
.
Venus White
Acting Asset
Manager
Hassan Ali
BMW
Marvin
Bowman
BMR
Edward De La
Cruz
Maint.
Supervisor
Troy Kearney
BMW
JAMES C WHITE MANOR
AMP 2025 206 Units
NaeSean Lee
Janitor C
Crystal
Rodgers
Temp. Acting
Asset Manager
Erskine
Byrd
BMR
Cyriacus
Agu
Janitor C
Gregory
Bailey
Janitor C
Mark Strothers
Temporary
Maint.
Supervisor
Ibn Kirkland
Janitor C
Per Diem
Rafi Pashall-
Skipper
Maint. Mechanic
Per Diem
BAXTER ELDERLY
AMP 2221 235 Units
Seasonal Boiler
Operator
Michelle Hall-
Stapleton
Asset Manager
Ronald Simmons
Project
Coordinator
Construction
Kareem
Jones
BMR
Jerrell
Smith
BMR
Stephanie
Battle-Gordon
BMW
Rochelle
Johnson
BMW
Dennis Freeman
Maint.
Mechanic
Per Diem
WYNONA LIPMAN
AMP3010 300 Units
Meshonda
Nance
Asset
Manager
Mahasin Woods
Customer Care
Specialist
Booker
Washington Jr.
Maintenance
Supervisor
Walter Anderson
Maint. Mechanic
Rodney Graham
BMW
Fucquion
McCray
BMW
RIVERSIDE VILLA
AMP 3011 198 Units
Iris
Sanchez
Asset
Manager
Wayne Harris
Maint.
Supervisor
Trevor Farrar
BMW
Arturo M
Folston
BMR
Garry Pruitt
BMR
Michael Robinson
Maintenance
Mechanic
Per Diem
REDEVELOPMENT
AMP 3012 256 Units
William
Reynolds
Building
Technician
Harry
Williams
BMW
Jeffrey Lewis
Plumber
Mark
Mercado
Plumber
Giovanni
Orlando
Plumber
Michael
Terry
Plumber
Seasonal
Boiler
Operator
II
Seasonal
Boiler
Operator
III
Seasonal
Boiler
Operator
IV
Charlene Moore
Administrative
Assistant
Latoddo Moss
Boiler Operator
Naeem C
Alexander
Oil Burner Service
Mechanic
Rosemary Bethea
Occupancy Administ.
Assistant
Penny
Grice
Ivan Ibarra
Occupancy
Manager
Taji Lewis
Applicant Review
Specialist
Antoinette
Jackson
Applicant Review
Specialist
Linda
Thomas
Lead Applicant
Review Specialist
Pearl Upchurch
Applicant Review
Specialist
Eduardo
Guerrero
Sr.Electronic
Technician
Antonio
Barrocas
Sr. Electronic
Technician
Cora
James
Robert
Lemay
Advisor
Cleave
Reid
Electrician
Tammy Bly-
Garrett
Special Project
Coordinator
Dashay
Carter
Human
Resources
Director
Odalys
Rodriguez
HR Generalist
Brianna
McCalister
HR Admin Asst.
Silvia Singh
HCVP Financial Analyst
Michelle Lewis
CFO Assistant
Maria Guerreiro
Payroll Manager
Imani Jackson
Assistant Account
Payable Coordinator
Lisa Scott
Customer Relations
Officer
Sekina Rodgers
Administrative
Secretary
Andrea D Hayes
Administrative
Assistant
Gaila Lawson
Legal Admin Assistant
Cynthia Watson
Relocation
Counselor
Toya Tucker
Program Coordinator
Section 3
AFFIRMATIVE
ACTION
Arthur Tucker
Resident Employment
Manager
Jeff Gorley
Security & Safety
Director
RESIDENT
SERVICES
Tonia
Johnson
Asst Asset
Manager
Shannon Garner
Customer Care
Specialist
Tony
Phillips
BMR
Irwin
Bennett
BMW
Kendrell
Gordon
Janitor C
Julius
Blanding
BMW
Jesse Scott
Maintenance
Supervisor
Christopher
Slater
BMW
Joe T Bennett
Maint.
Mechanic
Per Diem
WOODLAWN VILLAGE
AMP 3003 306 Units
Kareen G
Genus
Acting Asset
Manager
Brenda Ellis
Assistant Asset
Manager
Donald
Johnson
Maintenance
Supervisor
Owen
Cummings
BMR
Napoleon
Mazara
BWR
Bernard Scott
BMW
BETTY SHABAZZ
AMP 3004 254 Units
Lateesha
Easterling
Temp. Acting
Asset Manager
Renard
McCray
Maintenance
Supervisor
Deborah Jones
Janitor C
Kyle Owens
BMW
Justin Hannibal
Maintenance
Mechanic
Samad Smith
BMR Per Diem
Olivette Willis
BMR
TOWNHOUSE NORTH POINT
AMP 3001 269 Units
Na’im Harris
Maintenance
Mechanic
Basy’ir Rouse
BMW
Shantae
Coleman
Temp Acting
Asset Manager
Judeline
Dacoma
Temp Customer
Care
KEMSCO
AMP 3002 196 Units
Nazeema
Massiah
Asset
Manager
Ralph Swepson
Maint.
Supervisor
Nakirah Sykes
Assistant Asset
Manager
Melvin
Peterson
BMR
Melvin
Peterson
BMR
Alterick
Turner
BMW
Abdul B Bell
BMR
Per Diem
Phedell W
Brown
BMW
STEPHEN CRANE ELDERLY 2-22C
AMP 2016 375 Units
James
Mason
Maintenance
Mechanic
Rene Selph Ali
Per Diem Acting
Asset Manager
Kesha Jones
Customer Care
Peter Figueroa
Maint.
Supervisor
Karlen
Byron
BMW
Shvonne
Jones
BMW
Durhon
Fuller
Per Diem
Janitor C
Jose
Zuluaga
Per Diem BMR
Octavious
Williams
BMR
KRETCHMER ELDERLY 2-17
AMP 2017 198 Units
Alita
Thompson
Asset Manager
Dawn D
Robinson
Assistant Asset
Manager
Barnabas B
Edwards
BMR
Yusuf
Goines
BMR
Bernard
Johnson
BMW
Kalvin Flagg
BMW
CHADWICK/MT. PROSPECT
AMP3006 310 Units
Charles Russell
Maint. Mechanic
Per-Diem
Frank
Simmons
BMW
William
Gosa
Temp.Maint.
Supervisor
Rene Selph Ali
Per Diem
Acting Asset
Mgr.
Ijaaz Jamaal
Per Diem
Janitor C
Shireida Posey
Temp.
Maintenance
Supervisor
Kamisha
Fairley
BMW
Jessie Holmes
BMW
Rashon Myers
Maintenance
Mechanic
KRETCHMER HOMES
AMP 3009 143 Units
Jeffrey Dodson
Acting Asset
Manager
Jacqueline Toledo
Assistant Asset
Manager
Ralph Swepson
Maint.
Supervisor
Kim Jones
BMW
La Shawn Greene
BMR
Vitalis
Meremikwu
BMR
Jason Hannibal
BMW
Per Diem
PARK PLACE
AMP3007 240 Units
Kelly Freeman
Acting Asset
Manager
Shariff Dixon
BMW
Kenneth Wolfe
Maint. Supervisor
Mutah Rogers
Temp.
Maint.
Super.
Wali
Kettles
Janitor C
Ronald Hayden
BMR
Per Diem
STEPHEN CRANE ELDERLY 2-16
AMP 2016 188 Units
David Brandt
Quality Control
Manager
Claudeth Anglin
Secretarial Asst. Typing
Hiram Torres
Maintenance
Supervisor
Price Hollis
Maintenance
Mechanic Per
Diem
Gordon Taylor
BMR
DISTRICT I DISTRICT II DISTRICT III
Bernard Rollins
Project Manager
James
Chaviuos
Manager of
Maintenance
Alphonse Willis
Project Associate
Anthony Tucker
Maint. Mechanic
Per-Diem
Christopher
Harper
Maintenance
Mechanic
Per Diem
Victor Cirilo
Executive
Director
Gerard Cleffi
Economic
Development
Coordinator
Latonya Easterling
Resident Service
Supervisor
Arlene Olivo
Zaida Colon
Project Assistant
Carter Mangan
Resident Service
Coordinator
Catherine Wilson
Omnibus Operator
Per-Diem
Barry Gordon
Omnibus Operator
Per-Diem
Carla Dayes
Omnibus
Operator
LEGEND
Green : Acting/Temporary Position
Red: Per Diem/Seasonal Position
Blue: Vacant Position
Orange: Workers Comp/Medical Leave
Harris Freeman
Sr. Manager Finance
KaRin Hayes
Jr. Project
Assistant
NEWARK HOUSING AUTHORITY ORGANIZATIONAL CHART
Maria Pisorchik
Senior Manager,
Construction and
Compliance
Joan Falcon
Bilingual Cust. Relations
Rep.
Heriberto Acevedo
Security Officer II
Venancio Diaz
Director of
Information
Technology
Victor Avegno
Sr. Network
Administrator
Robert Zhang
IT Programmer /
Developer
Nohard Palmer
Sr. Network
Technician
Winston Francis
Telephone System
Technician
Odis Clemons
Sr. Network
Technician
Monique Williams
Contract Specialist
Toni Logan
Office Manager
Renee Daniels
Acting
Asset
Manager
Kenyatta Ruff
BMR
Nitin
Patel
Principal
Engineer
Ahmad
Lateef
Boiler Operations
Supervisor
Troy
Johnson
Lead Building
Technician
Darren
Nolen
Project
Coordinator
OCCUPANCY
500 BROAD
BUILDING
MAINTEN ANCE
PEST
MANAGEMENT
HUMAN
RESOURCES
LEGAL
DEPARTMENT
Board of
Commissioners
Victor Cirilo
Executive Director
Morris Warner
Chief of Development
Janice Sanders-Moye
Administrative
Secretary
VACANT
Vice President
Danny Gonzalez-Bosques
Director
REDEVELOPMENT AUTHORITY
Samuel
Molayil
Chief Financial Officer
INFORMATION
TECHNOLOGY
SECURITY &
SAFETY
Vincent Rouse
Affirmative Action &
Special Projects
CUSTOMER
RELATIONS
Duane Knight
HCVP Chief
PUBLIC HOUSING OPERATIONSEXECUTIVE STAFF
Mariselis Bonilla
Project
Coordinator
CLUBHOUSE WATERFRONT TREC
Kisha Baldwin
Coordinator Operations
Budget
Vacant
Assist Asset
Mang.
Tonia Harris
Customer
Care
Per Diem
Bryan Goolsby
BMW
Lynwood
Talmadge
BMR
Seasonal Boiler
Operator
I
Tamika
Johnson
Customer
Care Temp
Jarrod
Shuford
BMW
Seasonal
Boiler
Operator
VI
Seasonal
Boiler
Operator
V
Seasonal
Boiler
Operator
I
Seasonal Boiler
Operator
II
Seasonal Boiler
Operator
I
Seasonal Boiler
Operator
II
VACANT
Labor & Employee
Relations
Jennifer
Mercedes
Bi-Lingual Applicant
Review Specialist
Total NHA Units:
6277
Thomas Reddick
Contract Compliance
Coordinator
VACANT
Resident Services
Director
VACANT
Administrative Assistant
Aimee Brouse
Dir. Of Finance &
Accounts
Victor Cirilo
Executive Director
Crystal Carter
Cust. Relations Rep.
Waters-Grant,
Kathy
Asset Manager .
Thomas
Gregory
Maint.
Supervisor
Dale Fisher
Janitor C
Tyrice Flowers
Janitor C
Seasonal Boiler
Operator
SETH BOYDEN ELDERLY 2-21F
AMP 2017 189 Units
Williams
Salters
BMR
Antoinette Howard
Temp Customer
Care
Sierra T
Willingham
BMW
Calvin Perry
Janitor C
Tinesha
Benjermine
Temp. Acting
Asst. Manager
Aliyah Gatlin
Facilities Manager
Edward Robertson
Facilities Technician
Evette Jackson
Program Coordinator
Wanda Jimenez
Facilities Manager
Alonzo Williams
Maintenance
Michelle White
Facilities Manager
Debra Morgan
Scholarship Coordinator
Jere Wiggins
Administrative
Coordinator
Juan Pagan
Project Coordinator –
PHIC
Elio Mena
Senior
Associate
Counsel
Deborah
Murray
Manager of
Benefits
Towanda
Johnson
BMW
Dushonte Marable
HVAC Service
Technican
Evandrea
Johnson
BMW
Anthony Brown
Construction
Worker
Abdull Bell
Maint. Mech.
Per Diem
Robin Brown
BMW
Lamont
McNair
BWR
Birrell Smith
Maint.
Mech. Per
Diem
Ahmed
Muhammad
Maint.
Mech Per
Diem
Karen Terry
Cust. Care
Specialist
Corey Hopkins
Per Diem Maint.
Mechanic
Roscoe
Willams
Janitor C
Cody
Olive
Per Diem
Janitor C
Tracie Mitchell
Customer Care
Specialist
David Shelton
Per Diem
Maintenance
Mechanic
Phedell Brown
Janitor C
Justin Shefton
Per Diem
Customer Clerk
Specialist
Khadirah Jinks
Temp.
Customer
Clerk
Specialist
Cidalia Pereira
Customer
Care
Specialist
Lewis Scott
Maintenance
Mechanic
Per Diem
Vacant
Sr. Accountant
Vacant
Sr. Accountant
Patricia Cabello
Senior Social Worker
There are changes to tittles and names since this chart is created, NHA is still making some organizational changes which is not reflected here.

LIST OF PRINCIPAL OFFICIALS
Name Title
BOARD OF COMMISSIONERS
Edward Osborne……….………………………………….……. Chairman
Delores B. Lewis………..……………………………………… Treasurer
Fausto Baez ……………………………………………………. Member
Martinique W. Costa…………………………………………… Member
Norma Gonzalez……………………………………………….. Member
Babatunde P. Odubekun ………………………………………. Member
John Patino…………………………………………………….. Member
EXECUTIVE STAFF
Victor Cirilo ………………………….………….. Executive Director
Samuel M. Manigault………………………………..………. Chief of Staff
Samuel G. Moolayil………………………………. Chief Financial Officer
Dashay Carter……………………….……….. Director of Human Resources
Emanuel Foster……………………………… Acting Chief Operation Officer
Jeffrey C. Gorley……………………………………… Director of Security
Duane Knight………………... Director of Rental Assistance/HCV Programs
Arthur N. Martin Jr…………………… Director of Workplace Compliance
Vincent Rouse……………........................... Affirmative Action Officer
Venancio Diaz…………………………. Director of Information Technology
Inez Smith…………………………………….......... Director of Occupancy
Morris Warner………………………………… Chief of Asset Development

Edward Osborne-Chairman

Delores Lewis
Treasurer
John Patino
Member
Babatunde Odubekun
Member
Norma Gonzalez
Member
Martinique Costa
Member
Fausto Baez
Member

EXECUTIVE STAFF
Victor Cirilo-Executive Director

Samuel Moolayil -Chief
Financial Officer
Samuel Manigault
Chief of Staff
Dashay Carter- Director
of Human Resources
Emanuel Foster-Acting
Chief Operation Officer
Jeffrey Gorley
Director of Security
Duane Knight -
Director of HCV
Programs
Venancio Diaz-Director of
Information Technology
Vincent Rouse
Affirmative Action
Officer
Arthur Martin
Director of Compliance
Morris Warner-Chief of
Asset Development
Inez Smith-Director of
Occupancy

FINANCIAL SECTION

Report of Independent Auditors

REPORT OF INDEPENDENT AUDITORS
To the Board of Commissioners of the
Housing Authority of the City of Newark:
Report on the Financial Statements
We have audited the accompanying financial statements of the Housing Authority of the City of Newark (the
"Authority") as of and for the year ended December 31, 2017, and the related notes to the 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 and audit requirements as prescribed by the Division of Local Government Services, Department of
Community Affairs, State of New Jersey. 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 auditors' 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 auditors consider internal control relevant to the Authority’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 Authority’s internal control. Accordingly, we express no such
opinion. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of
significant accounting estimates made by management, as well as evaluating the overall presentation of the financial
statements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit
opinion.

Opinion
In our opinion, the financial statements referred to above present fairly, in all material respects, the net position of
the Authority as of December 31, 2017, and the changes in its net position and its cash flows for the year then ended
in accordance with accounting principles generally accepted in the United States of America.
Correction of Error
As discussed in Note 19 to the financial statements, certain errors that resulted in overstatements of amounts
previously reported for notes receivable, accrued interest, capital assets and net position as of December 31, 2016,
were discovered by management of the Authority during the current year. Accordingly, net position as of December
31, 2016 has been restated to correct these errors. Our opinion is not modified with respect to this matter.
Other Matters
Required Supplementary Information
Accounting principles generally accepted in the United States of America require that the management’s discussion
and analysis and required pension information 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.
Other Information
Our audit was conducted for the purpose of forming an opinion on the financial statements that collectively comprise
the Authority's basic financial statements. The schedule of expenditures of federal awards is presented for the
purpose of additional analysis as required by Title 2 U.S. Code of Federal Regulations 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 accompanying financial data schedule is also not a required part of the basic
financial statements and is presented for the purposes of additional analysis as required by the U.S. Department of
Housing and Urban Development.
The schedule of expenditures of federal awards and financial data schedule are the responsibility of management and
were derived from and relate directly to the underlying accounting 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. In our opinion, the schedule of expenditures of federal awards and financial data
schedule 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 December 27, 2018 on our
consideration of the Authority's internal control over financial reporting and on our tests of its compliance with certain
provisions of laws, regulations, contracts, and grant agreements and other matters. The purpose of that report is to
describe the scope of our testing of internal control over financial reporting and compliance and the results of that
testing, and not to provide an opinion on internal control over financial reporting or on compliance. That report is an
integral part of an audit performed in accordance with Government Auditing Standards in considering the Authority's
internal control over financial reporting and compliance.
December 27, 2018
Toms River, New Jersey

Management’s Discussion and
Analysis (MD&A)

Management’s Discussion and Analysis
Year Ended December 31, 2017
The following is a narrative overview and analysis of the Authority’s financial activities that the Newark Housing
Authority offers readers as of and for the year ended December 31, 2017. Please read it in conjunction with the
audit report at the beginning of this document, the financial statements following this section and notes to the
financial statements.
Any questions concerning the information provided in this discussion or requests for additional information should
be addressed to the Authority’s Executive Director and/or Chief Financial Officer.
Overview of the Financial Reports
 Statement of Net Position - Includes all of the Authority’s assets, deferred outflow of resources,
liabilities and deferred inflow of resources at the end of the year. Net position is the difference
between assets plus deferred outflow of resources less liabilities plus deferred inflow of resources.
Over time, increases or decreases in net position will serve as a useful indicator of whether the
Authority’s financial health is improving ordeteriorating.
 Statement of Revenues, Expenses, and Changes in Net Position - Reports the Authority’s
operating results and how its Net Position changed during the year. All revenues, Expenses, and
Changes in Net Position are reported on an accrual basis of accounting, which reports transactions
as they occur, rather than when cash changes hands (cash basis ofaccounting).
 Statement of Cash Flows – Reports the Authority’s cash receipts and cash payments during the
year, and provides information about the Authority’s operating, investing, and financing activities.
The Authority uses the direct method of presenting cash flows, which includes a reconciliation of
operating income or loss to cash flow related to operatingactivities.
 Notes to the Financial Statements – Provides additional information that is essential to a full
understanding of the data provided in the Basic Financial Statements. The Notes to Financial
Statements can be found in this report after the Basic FinancialStatements.
 Supplementary Information – Reports the schedule of expenditures of Federal awards, financial
data schedule and required pension information, which are presented for purposes of additional
analysis as required by the Uniform Guidance, Government Accounting Standards Board (GASB)
and the United States Department of Housing and Urban Development, respectively.

Financial Highlights
Summary of Net Position
31-Dec-16
31-Dec-17 (as restated)
Current Assets $ 26,120,688 $ 30,207,391
Capital Assets, Net 454,765,253 431,083,018
Other Non-current Assets 140,911,084 164,459,360
Total Assets 621,797,025 625,749,769
Deferred Outflows of Resources 15,512,807 23,160,730
Total assets and deferred outflows of resources $ 637,309,832 $ 648,910,499
Current Liabilities 32,307,617 26,732,716
Noncurrent Liabilities 266,714,402 270,127,791
Total Liabilities 299,022,019 296,860,507
Deferred Inflows of Resources 17,181,615 11,734,120
Net investment in capital assets 297,885,165 311,612,337
Restricted 128,037,477 99,332,676
Unrestricted (104,816,444) (70,629,141)
Total Net Position 321,106,198 340,315,872
Total liabilities, deferred inflows and net position $ 637,309,832 $ 648,910,499

Financial Highlights (continued)
December 31, 2017 vs. December 31, 2016
 The Authority’s net position decreased by $19.2 million from the prior year, which was comprised of a $29.7
million loss from operations, $2.7 million from non-operating expenses and capital contribution income of
$13.2 million.
 The $23.6 million increase in net capital assets is comprised of current additions of $48.1 million less
depreciation expense of $24million and a disposition of net capital assets totaling $.5 million.
 The $23.5 million decrease in other non-current assets is due primarily to a decrease of $37.6 million in
restricted cash related to the energy performance contract and capital fund financing activities, and an increase
of $14.1 million in notes receivable and related accrued interest. These notes were issued by the Authority to
assist in the construction of numerous public housing developments under the mixed financeprogram.
 The $7.6 million decrease in deferred outflows of resources is comprised of pension related deferred outflows
as a result of the implementation of GASB Statement 68 as amended by GASB Statement71.
 The $5.6 million increase in current liabilities is primarily due to increases of current portion of bonds and notes
payable, $1.1 million; other current liabilities, $4.4 million; and accrued interest payable; $3.1 million. These
increases are offset by decreases in accounts payable, $2.6 million; and prepaid rent, $0.4million.
 The $3.4 million decrease in non-current liabilities is due to the increases of $5.9 million in bonds, loans and
notes payable, related to the energy performance contracts and $4.1 million in non-current liabilities other
mainly due to an increase in utility accruals. This increase is offset by a decrease of $14.2 million in accrued
OPEB and accrued pension liability as a result of the implementation of GASB Statement 68as
amended by GASB Statement 71.

Summary of Revenues, Expenses and Change in Net Position
31-Dec-17 31-Dec-16
Operating Revenues:
Tenant Revenue $ 21,140,962 $ 20,465,986
HUD and Other Government Operating Grant 115,384,090 122,095,426
Other Revenues 8,231,855 18,396,933
Total Operating Revenues 144,756,907 160,958,345
Operating Expenses:
Administrative 36,752,038 41,094,470
Tenant Services 2,128,486 2,265,360
Utilities 14,320,809 11,776,181
Maintenance 22,785,552 30,770,956
Protective Services 6,221,652 4,470,763
General Expense 11,263,126 14,829,116
Housing Assistance Payments 57,027,664 56,744,825
Depreciation 24,000,019 17,631,339
Total Operating Expenses 174,499,346 179,583,010
Net Loss From Operations (29,742,439) (18,624,665)
Non-Operating Revenues (Expenses):
Investment Income 2,559,813 2,039,536
Interest Expense (6,114,319) (5,707,160)
Casualty losses, non-capitalized (12,944) (34,487)
Gain on Disposition of Property and Equipment 825,392 -
Extraordinary maintenance - (41,150)
Net Non-Operating Expense (4,074,997) (3,743,261)
Loss Before Capital Contributions (32,484,497) (22,367,926)
Capital Contributions 13,274,823 14,689,896
Change in Net Assets (19,209,674) (7,678,030)
Net position, beginning of the year 361,824,280 369,502,310
Prior period adjustment (21,508,408) -
Net position, beginning of the year (as restated) 340,315,872 369,502,310
Net position end of the year $ 321,106,198 $ 361,824,280

December 31, 2017 vs. December 31, 2016
 The operating loss increase of $11.1 million, from $18.6 million in 2016 to $29.7 million in 2017 is primarily
due to a decrease of $16.2 million in operating revenues offset by a decrease of $5.1 in operatingexpenses.
 The $16.2 million decrease in operating revenue consists of a decrease of $6.7 million in HUD and other
government operating grants, $10.2 million in other revenues, which were offset by an increase in tenant
revenue of $0.7 million.
 The $5.0 million decrease in operating expenses consists of decreases in administrative, $4.3 million; ordinary
repairs and maintenance, $7.9 million; and general expense, $3.5 million; offset by increases in protective
services, $1.7 million; utilities, $2.5 million; and depreciation, $6.3million.
 Non-operating expenses, net amounted to $4.0 million for 2017, which increased by $0.3 million from $3.7
million from the prior year primarily due to increases in investment income, $0.5 million; and interest expense,
$0.4 million.
 Capital contributions decreased $1.4 million from the prior year primarily due to a decrease in capital activity
in the Public Housing Capital Fundprogram.

Revenues and Expenses by Category
31-Dec-17 31-Dec-16
Program Revenues:
Subsidies and grants $ 115,971,094 $ 122,409,003
Operating revenues 28,785,813 38,549,342
Investment Income 2,559,813 2,039,536
Gain on Disposition of Property and Equipment 825,392 -
Total Program Revenues 148,142,112 162,997,881
Program Expenses:
Operating expenses 174,499,346 179,583,010
Interest Expense 6,114,319 5,707,160
Casualty losses, non-capitalized 12,944 34,487
Extraordinary maintenance - 41,150
Total Program Expenses: 180,626,609 185,365,807
Loss Before Capital Contributions (32,484,497) (22,367,926)
Capital Contributions 13,274,823 14,689,896
Change in Net Assets (19,209,674) (7,678,030)
Net position, beginning of the year (as restated) 340,315,872 369,502,310
Net position end of the year $ 321,106,198 $ 361,824,280

Capital Assets and Long-term Debt Activity
Capital Assets
31-Dec-17 31-Dec-16
Land $ 107,623,038 $ 108,426,764
Work in Progress 102,389,035 82,251,521
Buildings 591,762,647 584,045,444
Furniture and Equipment 31,691,934 32,603,919
833,466,654 807,327,648
Accumulated Depreciation (378,701,401) (376,244,630)
Total Capital Assets $ 454,765,253 $ 431,083,018
 The increase in capital assets is primarily due to capital improvements funded by the Public Housing Capital
Fund Program and the Energy Performance Contract(EPC).
Long Term Debt Activity
 On April 1, 2004, the Authority issued Special Obligation Pension Refunding Bonds, Series 2004 in the amount
of $6,840,000 to provide funds to (i) fund the Authority’s PERS liability incurred as a result of its 2003 early
retirement program, (ii) repay a loan from the New Jersey Division of Pensions related to its 1991 early
retirement program, (iii) fund the Bond Reserve Fund and (iv) pay costs associated with the issuance of the
Bonds. The bonds mature at various times through March, 2021 bearing interest at rates from 4.95% to 6.09%
and are payable by the Authority solely from pledged revenues which consist of rental income derived from
certain properties owned by theAuthority.
 On September 30, 2011, the Authority issued Certificates of Participation (COPs), Series 2011 in the amount
of $49,560,203 to fund the Authority Energy Performance Contract (EPC) capital equipment lease program.
The COPs were refinanced over a 15 year term on May 31, 2013 with ‘Public Finance Energy Improvement
Nonrecourse Promissory Note, Series 2013’ in the amount of $54,481,179.30. The note bears an interest rate of
3.84% with semi-annual principal and interest payments through the maturity date of April 1, 2028. As a result
of the refinancing, the Authority expanded its Energy Performance Contract (EPC).

Long Term Debt Activity (continued)
 On September 30, 2013 the Authority issued ‘Equipment Lease Purchase Agreement’ in the amount of
$3,579,272 to fund the Authority Energy Performance Contract (EPC) capital equipment lease program. The
certificates mature at various times through April 2028 bearing interest at 3.50% and are payable by the
Authority solely from add-on subsidy incentives from HUD due to energy savings from the properties owned
by the Authority.
 On January 15, 2014, the Authority issued Capital Fund Program Revenue Bonds, Series 2014A in the amount
of $17,890,000 to fund the Authority for the Capital Improvement needs. The certificates mature at various
times through December, 2033 bearing an interest rate of 4.11% and are payable from payments of future
Capital Fund Program moneys (“Capital Fund Allocations”) received by the Authority from HUD and pledged
and assigned by the Authority to the Trustee for the benefit of the holders of Series of 2014A Bonds. HUD and
the Authority have agreed, pursuant to a Capital Fund Financing Agreement entered into between the Authority
and HUD, that HUD will make payments of Capital Fund Allocations that the Authority would have received
under its Annual Contributions Contract (“ACC”) directly to the Trustee, rather than to the Authority, in
amounts sufficient to pay debt service on the Series 2014A Bonds. Interest on the Series 2014A Bonds is payable
semiannually on each June 1 and December 1, commencing June 1, 2014.
 On December 11, 2015, the Authority entered into an Equipment Lease Purchase Agreement (EPC Phase 2) in
the amount of $84,000,000 to provide for Energy Efficient improvements to Authority buildings. Interest
accrues at 3.92% with semi-annual payments due in accordance with the Lease Payment Schedule. The lease
matures on October 1, 2031 and is nonrecourse.
 During 2017, the Authority, through the Capital Fund Financing Program, financed the cost of the CFFP Project
with the proceeds of its $12,801,313 Capital Fund Program Revenue Bonds, Series 2017 dated April 27, 2017.
Interest accrues at 5.65% and is payable semi-annually on June 1st and December 1st. The bonds mature in
various amounts on December 1st each year through December 2034. The loan is nonrecourse and repayment
of the funds shall be paid solely from Capital Fund allocations received byHUD.
See footnote No. 11 in the Notes to the Financial Statements for more information on long-term debt.
Requests for Additional Information
This financial report is designed to provide a general overview of the Authority’s finances. Questions concerning
any of the information provided in this report or request for additional financial information should be addressed
to:
Mr. Samuel Moolayil, Chief Financial Officer
Housing Authority of the City of Newark
500 Broad Street, 5th
Floor
Newark, New Jersey 07102
(973) 273-6410

Basic Financial Statements

HOUSING AUTHORITY OF THE CITY OF NEWARK
See accompanying notes to financial statements.
STATEMENT OF NET POSITION
AS OF DECEMBER 31, 2017
ASSETS
Current assets:
Cash and cash equivalents $ 22,247,154
Investments 690,298
Tenant security deposits 811,516
Accounts receivable, net 1,659,568
Notes receivable, current 694,409
Prepaid expenses 17,743
Total current assets 26,120,688
Non-current assets:
Restricted cash 11,867,920
Notes receivable, non-current 105,137,240
Accrued interest on notes receivable 23,905,912
Capital assets, net 454,765,253
Other assets 12
Total non-current assets 595,676,337
Total assets 621,797,025
DEFERRED OUTFLOWS OF RESOURCES
State of New Jersey P.E.R.S. 15,512,807
Total assets and deferred outflows of resources $ 637,309,832

STATEMENT OF NET POSITION (continued)
AS OF DECEMBER 31, 2017
LIABILITIES
Current liabilities:
Accounts payable $ 7,559,240
Accrued expenses 732,359
Accrued compensated absences, current 1,096,428
Accrued interest payable 3,359,339
Prepaid rent 489,830
Bonds and notes payable, current 6,566,496
Other current liabilities 11,692,409
Total current liabilities 32,307,617
Non-current liabilities:
Accrued compensated absences, net of current portion 274,107
Bonds and notes payable, net of current portion 153,273,592
Accrued Pension and OPEB liabilities 97,733,871
Other non-current liabilities 15,432,832
Total non-current liabilities 266,714,402
Total liabilities 299,022,019
DEFERRED INFLOWS OF RESOURCES
State of New Jersey P.E.R.S. 17,181,615
Total deferred inflows of resources 17,181,615
NET POSITION
Net position:
Net investment in capital assets 297,885,165
Restricted 128,037,477
Unrestricted (deficit) (104,816,444)
Total net position 321,106,198
Total liabilities, deferred inflows and net position $ 637,309,832

STATEMENT OF REVENUES, EXPENSES,
AND CHANGES IN NET POSITION
FOR THE YEAR ENDED DECEMBER 31, 2017
Operating revenues:
Tenant revenue $ 21,140,962
HUD operating grants 115,384,090
Other government grants 587,004
Fraud recovery revenue 11,710
Other revenues 7,633,141
Total operating revenues 144,756,907
Operating expenses:
Administrative 36,752,038
Tenant services 2,128,486
Utilities 14,320,809
Ordinary repairs and maintenance 22,785,552
Protective services 6,221,652
Insurance 1,989,385
General expenses 9,273,741
Housing assistance payments 57,027,664
Depreciation 24,000,019
Total operating expenses 174,499,346
Operating loss (29,742,439)
Non-operating revenues (expenses):
Investment income 194,737
Mortgage interest income 2,365,076
Interest expense (6,114,319)
Casualty losses, non-capitalized (12,944)
Gain on disposition of property and equipment 825,392
Net non-operating revenues (expenses) (2,742,058)
Loss before capital grants (32,484,497)
Capital grants 13,274,823
Change in net position (19,209,674)
Total net position, beginning of year 361,824,280
Prior period adjustment (21,508,408)
Total net position, beginning of year (as restated) 340,315,872
Total net position, end of year $ 321,106,198

STATEMENT OF CASH FLOWS
YEAR ENDED DECEMBER 31, 2017
Cash Flows from Operating Activities:
Cash received from tenants and other $ 28,297,633
Cash received from grantors 109,709,470
Cash paid to suppliers and vendors (114,657,713)
Cash paid to employees (22,776,345)
Net cash provided by operating activities 573,045
Cash Flows from Non Capital Related Financing Activities:
Casualty losses (12,944)
Net cash flows used in capital and related financing activities (12,944)
Cash Flows from Capital and Related Financing Activities:
Proceeds from capital grants 13,274,823
Purchase of capital assets (48,189,801)
Proceeds from the sale of capital assets 1,332,939
Proceeds from issuance of long term debt 12,801,312
Principal payments on long term debt (5,607,997)
Interest paid on long term debt (2,943,462)
Net cash used in capital and related
financing activities (29,332,186)
Cash Flows from Investing Activities:
Investment income 194,737
Proceeds from redemption of investments 4,418,850
Collection of notes receivable 563,840
Advances on notes receivable (13,271,218)
Interest earned on notes receivable 470,324
Net cash used in investing activities (7,623,467)
Net decrease in cash and cash equivalents (36,395,552)
Cash and cash equivalents, beginning of year 71,322,142
Cash and cash equivalents, end of year $ 34,926,590
Reconciliation of cash and cash equivalents to the
Statement of Net Position is as follows:
Cash and cash equivalents $ 22,247,154
Restricted cash 11,867,920
Cash and cash equivalents, end of year $ 34,926,590

STATEMENT OF CASH FLOWS (continued)
YEAR ENDED DECEMBER 31, 2017
Reconciliation of operating loss to net cash provided
by operating activities:
Operating loss $ (29,742,439)
Adjustments to reconcile operating loss to net cash provided
by operating activities:
Depreciation 24,000,019
Bad debts 417,144
Changes in assets, liabilities, deferred outflows of resources, and
deferred inflows of resources:
Accounts receivable - miscellaneous (99,228)
Accounts receivable - HUD and other government 1,534,394
Accounts receivable - tenants (413,338)
Deferred outflows of resources 7,647,923
Prepaid expenses (16,265)
Accrued net pension liability (19,673,697)
Accrued OPEB liability 5,432,989
Deferred inflows of resources 13,243,513
Accounts payable (2,792,585)
Accrued compensated absences (6,303)
Accrued expenses 253,933
Prepaid rent (419,976)
Tenant security deposits liability 27,218
Grants received in advance (7,796,018)
Other current liabilities 4,046,385
Other non-current liabilities 4,929,376
Net cash provided by operating activities $ 573,045

NOTES TO FINANCIAL STATEMENTS
DECEMBER 31, 2017
NOTE 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
A. Organization
The Housing Authority of the City of Newark (the "Authority") is a public body corporate and
politic of the State of New Jersey (the "State”) created by the City of Newark (the "City”) under
Local Redevelopment and Housing Law (N.J.S.A. 40A:12A-1,et seq) of the State. The Authority
is responsible for operating certain low-rent housing programs in the City 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. As of December 31, 2017, the Authority maintained approximately 6,555 federally
funded conventional public housing units. In addition to this, there are 360 mixed finance ACC
units, which are managed by private developers. The Authority also maintains a leased housing
program, which is authorized to provide housing assistance payments to approximately 5,114
families.
A board of seven members who serve five-year terms governs the Authority. The governing board
is essentially autonomous but is responsible to HUD and the State of New Jersey Department of
Community Affairs. An executive director is appointed by the Authority’s Board to manage the
day-to-day operations of theAuthority.
B. Basis of Accounting / Preparation of Financial Statements
The Authority's financial statements are prepared in accordance with accounting principles
generally accepted in the United States of America (GAAP). The Governmental Accounting
Standards Board is responsible for establishing GAAP for state and local governments through its
pronouncements (Statements and Interpretations).
The programs of the Authority are organized as separate accounting entities. Each program is
accounted for by a separate set of self-balancing accounts that comprise its assets, deferred outflows
of resources, liabilities, deferred inflows of resources, net position (program equity), revenues, and
expenses. The individual programs account for the governmental resources allocated to them for
the purpose of carrying on specific programs in accordance with laws, regulations, or other
restrictions, including those imposed by HUD. The programs of the Authority are combined and
considered an enterprise fund. An enterprise fund is used to account for activities that are operated
in a manner similar to those found in the private sector.
The Authority's enterprise fund is accounted for using the economic resources measurement focus
and the accrual basis of accounting. Revenues, expenses, gains, and losses from assets and liabilities
resulting from exchange and exchange-like transactions are recognized when the exchange takes
place.
The Authority's financial statements are prepared in accordance with GASB 34, Basic Financial
Statements and Management's Discussion and Analysis for State and Local Governments, as
amended ("GASB 34"). GASB 34 requires the basic financial statements to be prepared using the
economic resources measurement focus and the accrual basis of accounting and requires the
presentation of a Statement of Net Position, a Statement of Revenues, Expenses and Changes in
Net Position and Statement of Cash Flows. GASB 34 also requires the Authority to include
Management's Discussion and Analysis as part of the Required Supplementary Information.

DECEMBER 31, 2017
NOTE 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES(continued)
B. Basis of Accounting / Preparation of Financial Statements (continued)
The Authority's primary source of non-exchange revenue relates to grants and subsidies. In
accordance with GASB 33, Accounting and Financial Reporting for Non-exchange Transactions
("GASB 33"), grant and subsidy revenue are recognized at the time eligible program expenditures
occur and/or the Authority has complied with the grant and subsidy requirements.
On January 30, 2008, HUD issued PIH Notice 2008-9 which requires that unused housing
assistance payments ("HAP") under proprietary fund reporting should be reported as restricted net
position, with the associated cash and investments also being reported as restricted. Any unused
administrative fees should be reported as unrestricted net position, with the associated assets being
reported on the financial data schedule as unrestricted.
Both administrative fee and HAP revenue continue to be recognized under the guidelines set forth
in GASB 33. Accordingly, both the time and purpose restrictions as defined by GASB 33 are met
when these funds are available and measurable, not when these funds are expended. The Section 8
Housing Choice Vouchers program is no longer a cost reimbursement grant; therefore, the
Authority recognizes unspent administrative fee and HAP revenue in the reporting period as
revenue for financial statement reporting.
In accordance with 2 CFR 200.305(b) (9), any investment income earned up to $500 on these funds
may be retained by the Authority. Amounts in excess of $500 must be remitted annually to the
Department of Health and Human Services, Payment Management System.
The Authority adopted GASB 68, Accounting and Financial Reporting for Pensions ("GASB 68").
GASB 68 established standards for measuring and recognizing liabilities, deferred outflows of
resources, deferred inflows of resources, and expenditures associated with pension plans of State
and Local Governments. For defined benefit pensions, GASB 68 identifies the methods and
assumptions that should be used to project benefit payments, discount projected benefit payments
to their actual present value, and attribute that present value to periods of employee service. In
addition, GASB 68 details the recognition and disclosure requirements for employers with
liabilities to a defined benefit pension plan and for employers whose employees are provided with
defined contribution pensions.
Measurement Focus and Basis of Accounting
Proprietary funds are accounted for on the flow of economic resources measurement focus and the
accrual basis of accounting. Under this method, revenues are recorded when earned and expenses
are recorded at the time the liabilities are incurred. With this measurement focus, all assets and all
liabilities associated with the operation of these funds are included on the Statement of Net
Position. Proprietary funds distinguish operating revenues and expenses from non-operating items.
Operating revenues and expenses generally result from providing services and producing and
delivering goods in connection with proprietary funds’ principal on going operations.

DECEMBER 31, 2017
B. Basis of Accounting / Preparation of Financial Statements (continued)
The principal operating revenues of the Authority’s funds are rent and maintenance charges to
residents, operating grants and subsidies from HUD, and administration fees earned. Operating
expenses for proprietary funds include the administrative costs of providing services to residents
and the housing assistance payments to residents. All revenues and expenses not meeting this
definition are reported as non-operating revenues and expenses.
C. Reporting Entity
In accordance with GASB 61, The Financial Reporting Entity Omnibus - An Amendment of GASB
Statement No. 14 and No. 34, the Authority’s basic financial statements include those of the
Authority and any component units. Component units are legally separate organizations whose
majority of officials are appointed by the primary government or the organization is fiscally
dependent on the primary government and there is a potential for those organizations either to
provide specific financial benefits to, or impose specific financial burdens on, the primary
government. An organization has a financial benefit or burden relationship with the primary
government if any one of the following conditions exist:
1. The primary government (Authority) is legally entitled to or can otherwise access the
organization's resources.
2. The primary government is legally obligated or has otherwise assumed the obligation to
finance the deficits of, or provide financial support to, the organization.
3. The primary government is obligated in some manner for the debt of the organization.
Component units are reported as part of the reporting entity under either the blended or discrete
method of presentation. Blending involves merging the component unit data with the primary
government. The discrete method presents the financial statements of the component unit outside
the financial statement totals of the primary government. The blending method is utilized when the
board of the component unit is substantially the same as that of the primary government or when
the component unit serves the primary government exclusively or almost exclusively.
Based upon the application of these criteria, this report includes the following blended component
units:
Branch Brook Park Housing Association, Inc. (“BBPHA”) – BBPHA was organized under the laws
of the State of New Jersey to provide Section 8 housing and rental assistance for low income
elderly tenants. The corporation is governed by a Board of Trustees whose members must be either
an officer of the Authority or a member of the Board of Commissioners of the Authority. The Board
of Commissioners of the Authority must approve all actions, including issuance of bonded debt,
operational and capital budgets, through resolution. An outside management firm administers this
project.

DECEMBER 31, 2017
C. Reporting Entity (continued)
Housing Finance Corporation (“HFC”) – HFC was established by the Board of Commissioners of
the Authority to sponsor the issuance of tax-exempt bonds to finance the construction of Section 8
housing. The HFC received a fee for this service that was derived from bond proceeds and currently
has no assets or liabilities.
Newark HP I, LLC, Newark HP II, LLC, Newark HP III, LLC, Newark HP IV, LLC and Newark
HP V, LLC. – The Authority created these entities to facilitate mixed-finance transactions in
conjunction with their HOPE VI and Development grants. These entities are a partner (member) in
various limited liability corporations formed for the purpose of acquiring, owning and operating
low-income housing projects in accordance with Section 42 of the Internal Revenue Code. These
entities have no assets or liabilities.
Additionally, based on the application of the above criteria, the Authority’s financial statements are
not included in any other reporting entity’s financial statements.
D. Description of Programs
A summary of the significant programs operated by the Authority is as follows:
Public and Indian Housing Program
The Public and Indian Housing Program is designed to provide low-cost housing. Under this
program, HUD provides funding via an annual contributions contract. These funds, combined with
the rental income received from tenants, are available solely to meet the operating expenses of the
program.
Public Housing Capital Fund Program
The purpose of the Public Housing Capital Fund Program is to provide another source of funding
to cover the cost of physical and management improvements and rehabilitation on existing low-
income housing and improving the central office facilities. Funding for this program is provided
by grants from HUD.
Section 8 Housing Choice Vouchers
The Authority administers a program of rental assistance payments to private owners on behalf of
eligible low-income families under Section 8 of the Housing and Urban Development Act of 1974.
The program provides payments covering the difference between the maximum rent on a dwelling
unit, as approved by HUD, and the amount of rent contribution by a participating family.
State and Local Programs
Periodically, the Authority administers various grants from the State and/or the City. The activities
of state and local grants are reported in this fund.

DECEMBER 31, 2017
D. Description of Programs (continued)
Business Activities
The Authority operates urban renewal programs and other non-federally funded business-type
activities. Revenues are derived from commercial rent and the proceeds from disposition of
property.
Resident Opportunity and Self Sufficiency Program
The purpose of the Resident Opportunities and Self Sufficiency ("ROSS") grant program is to
provide funds for job training and supportive services to help residents of public housing transition
from welfare to work. ROSS also provides funding to link elderly/disabled residents to critical
services which can help them continue to live independently.
Central Office Cost Center
The Central Office Cost Center ("COCC") is mandated by HUD to account for "centralized"
services and functions necessary to the Authority's operations. Funding for the COCC is in the form
of fees charged to other Authority programs and activities as well as to affiliate entities. The fees
charged include those specified by HUD as management fees, bookkeeping fees, asset management
fees and other fees for service. HUD regulates which and how fees may be charged to HUD
programs.
E. Use of Management Estimates
The preparation of financial statements in accordance with accounting principles generally
accepted in the United States of America requires management to make estimates and assumptions
that affect certain reported amounts of assets, deferred outflows of resources, liabilities and deferred
inflows of resources, 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.
Significant estimates include the allowance for doubtful accounts, accrued expenses and other
liabilities, depreciable lives of properties and equipment and contingencies. Actual results could
differ significantly from these estimates.
F. Cash and Cash Equivalents
New Jersey Authorities are required by N.J.S.A. 40A:5-14 to deposit public funds in a bank or trust
company having its place of business in the State of New Jersey and organized under the laws of
the United States, or the State of New Jersey, or the New Jersey Cash Management Fund.
N.J.S.A. 40A:5-15.1 provides a list of securities which may be purchased by New Jersey
Authorities.
The Authority is required to deposit funds in public depositories protected from loss under the
provisions of the Governmental Unit Deposit Protection Act ("GUDPA"). GUDPA was enacted in
1970 to protect governmental units from a loss of funds on deposit with a failed banking institution
in New Jersey.

DECEMBER 31, 2017
F. Cash and Cash Equivalents (continued)
N.J.S.A. 17:9-42 requires governmental units to deposit public funds only in public depositories
located in New Jersey, when the funds are secured in accordance with the act.
HUD requires housing authorities to invest excess funds in obligations of the United States,
Certificates of Deposit, or any other federally insured investment. HUD also requires that deposits
be fully collateralized at all times. Acceptable collateralization includes FDIC insurance and the
market value of securities purchased and pledged to the political subdivision. Pursuant to HUD
restrictions, obligations of the United States are allowed as security for deposits. Obligations
furnished as security must be held by the Authority or with an unaffiliated bank or trust company
for the account of the Authority.
It is the Authority's policy to maintain collateralization in accordance with state and HUD
requirements.
For the Statement of Cash Flows, cash and cash equivalents include all cash balances and highly
liquid investments with a maturity of three months or less at time of purchase.
G. Accounts Receivable, Net
Rents are due from tenants on the first day of each month. As a result, accounts receivable balances
primarily consist of rents past due and vacated units. An allowance for doubtful accounts is
established to provide for all accounts, which may not be collected in the future for any reason.
Collection losses on accounts receivable are charged against the allowance for doubtful accounts.
Also included in accounts receivable are those amounts that tenants owe the Authority as payment
for committing fraud or misrepresentation.
The Authority recognizes a receivable from HUD and other governmental agencies for amounts
billed but not received and for amounts unbilled, but earned as of year-end.
H. Allowance for Doubtful Accounts
The Authority periodically reviews all accounts receivable to determine the amount, if any, that
may be uncollectable. If it is determined that an account or accounts may be uncollectable, the
Authority prepares an analysis of such accounts and records an appropriate allowance against such
amounts.
I. Investments
Investments consist of treasury bonds and are valued at their cost which approximates their market
value in accordance with GASB 40, Deposit and Investment Risk Disclosures - An Amendment of
GASB No. 3.

DECEMBER 31, 2017
J. Prepaid Expenses
Prepaid expenses represent amounts paid as of year-end that will benefit future operations.
K. Capital Assets
Capital assets are stated at cost. Expenditures for repairs and maintenance are charged directly to
expense as they are incurred. Expenditures determined to represent additions or betterments are
capitalized. Upon the sale or retirement of fixed assets, the cost and related accumulated
depreciation is eliminated from the accounts and any related gain or loss is reflected in the
Statement of Revenues, Expenses and Changes in Net Position. Depreciation is calculated using
the straight-line method based on the estimated useful lives of the following asset groups:
 Buildings 40 Years
 Site and building improvements 15 Years
 Equipment, vehicles, and furniture 3-7 Years
The Authority has established a capitalization threshold of $5,000.
L. Impairment of Long Lived Assets
The Authority evaluates events or changes in circumstances affecting long-lived assets to determine
whether an impairment of its assets has occurred. If the Authority determines that a capital 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. During the year ended December 31, 2017
there were no impairments losses incurred.
M. Notes Receivable
The Authority has utilized development funds in accordance with HUD guidelines to assist in the
construction and redevelopment of numerous public housing developments through the issuance of
mortgage notes. When preparing financial statements in accordance with generally accepted
accounting principles, management is required to make estimates as to the collectability of such
mortgage notes. When estimating collectability, management analyzes the value of the underlying
mortgaged property; the property’s ability to generate positive cash flow, and current economic
trends and conditions. Management utilizes these estimates and judgments in connection with
establishing an allowance for uncollectable amounts during an accounting period.
N. Prepaid Rent
The Authority's unearned revenue primarily consist of the prepayment of rent by residents
applicable to future periods.

DECEMBER 31, 2017
O. Compensated Absences
Compensated absences are those absences for which employees will be paid, such as vacation and
sick leave. A liability for compensated absences that is attributable to services already rendered and
that is not contingent on a specific event is accrued as employees earn the rights to the benefits.
Employees may only accumulate and carry over to the following year the prior year’s unused
vacation. The Authority’s sick leave policy is in accordance with New Jersey State law and the
various union contracts. Employees are allowed to carry over unused sick leave without penalty.
Upon retirement, employees are paid one half of their unused sick time up to a maximum of $15,000
to $20,000 depending on their various bargaining unitagreements.
P. Inter-Program Receivables and Payables
Inter-program receivables and payables are all classified as either current assets or current
liabilities, and are the result of the use of a concentrated account depository as the common
paymaster for most of the programs of the Authority. Cash settlements are made monthly. All inter-
program balances are reconciled, and inter-program receivables and payables balances net to zero.
In accordance with GASB 34, interprogram receivables and payables are eliminated for financial
statement purposes. Detail balances by program are found in the Financial Data Schedule of this
report.
Q. Equity Classifications
Equity is classified as net position and displayed in three components:
Net investment in capital assets - Consists of capital assets including restricted capital assets, net
of accumulated depreciation and reduced by the outstanding balances of any bonds, mortgages,
notes, or other borrowings that are attributable to the acquisition, construction or improvement of
those assets.
Restricted net position - Consists of resources with constraints placed on the use either by (1)
external groups such as creditors, grantors, contributors, laws or regulations of other governments;
or (2) law through constitutional provisions or enabling legislation.
Unrestricted net position - All other net position that does not meet the definition of "restricted" or
"net investment in capital assets."
R. Deferred Outflows / Inflows of Resources
In addition to assets, the statement of net position will sometimes report a separate section for
deferred outflows of resources. This separate financial statement element represents a consumption
of net position that applies to a future period and so will not be recognized as an outflow of
resources until that time.

DECEMBER 31, 2017
R. Deferred Outflows / Inflows of Resources (continued)
In addition to liabilities, the statement of net position will sometimes report a separate section for
deferred inflows of resources. This separate financial statement element represents an acquisition
of net position that applies to a future period and so will not be recognized as an inflow of resources
until that time.
S. Investment in Leased Property
As part of its development activities, the Authority routinely enters into ground lease agreements.
Under terms of the agreements, the Authority leases land it owns to a third party and that party
owns the improvements built on the land. Typically, the lease terms range from fifty (50) to ninety-
nine (99) years.
These lease agreements (land only) are recorded as operating leases and are accounted for as
follows:
The leased property is included near property, plant and equipment but separately identified on the
Authority’s Statement of Net Position (if material balance exists) as “Investment in Leased
Property”. Since land has an indefinite useful life, no depreciation is charged on the property.
Rent is reported as income over the lease term as it becomes receivable according to the provisions
of the lease. However, if the rentals vary from the straight-line basis, the Authority recognizes the
income on a straight-line basis unless another systematic and rational basis is more representative
of the time pattern in which use benefit from the leased property is diminished, in which case that
basis will be used.
Upon substantial completion of the development agreement, if the fair value of the property is less
than its cost or carrying amount, then a loss equal to that difference will be recognized at the
inception of the lease.
T. Taxes
The Authority is a unit of local government under New Jersey law and is exempt from real estate,
sales and income taxes by both the federal and state governments. However, the Authority will pay
a payment in lieu of taxes to cover municipal services provided by the local government for certain
properties owned throughout the City.
U. Budgets and Budgetary Accounting
The Authority is required by contractual agreements to adopt annual, appropriated operating
budgets for all its programs receiving federal expenditure awards. All budgets are prepared on a
HUD basis, which is materially consistent with accounting principles generally accepted in the
United States of America. All appropriations lapse at HUD's program year end or at the end of
grant periods.

DECEMBER 31, 2017
U. Budgets and Budgetary Accounting (continued)
Pursuant to N.J.S.A 40A:5A-10 and N.J.A.C. 5:31, the Authority is also required to submit an
authority wide budget for each fiscal year to the Director of the Division of Local Government
Services sixty (60) days prior to the end of the fiscal year.
V. Economic Dependency
The Section 8 Housing Choice Voucher and Public and Indian Housing programs of the Authority
are economically dependent on operating grants and subsidies from HUD. The programs operate
at a loss prior to receiving the grants.
NOTE 2. CASH AND CASH EQUIVALENTS
As of December 31, 2017, the Authority had funds on deposit in checking, savings and money
market accounts. The carrying amount of the Authority's cash and cash equivalents (including
restricted cash) was $34,926,590 and the bank balances approximated $35,980,400.
Cash Category Amount
Unrestricted $ 22,247,154
Restricted 11,867,920
Total cash and cash equivalents $ 34,926,590
Of the bank balances, $1,038,362 was covered by federal depository insurance and the remaining
$34,942,038 was collateralized by GUDPA as of December 31, 2017.
Custodial credit risk is the risk that, in the event of a bank failure, the government's deposits may
not be returned to it. The Authority does not have a formal policy for custodial credit risk. As of
December 31, 2017, the Authority's bank balances were not exposed to custodial credit risk.
NOTE 3. ACCOUNTS RECEIVABLE, NET
Accounts receivable, net consists of the following as of December 31, 2017:
Description Amount
Accounts receivable - HUD $ 868,666
Accounts receivable - tenants 425,132
Accounts receivable - miscellaneous 365,770
Total accounts receivable, net $ 1,659,568

DECEMBER 31, 2017
NOTE 3. ACCOUNTS RECEIVABLE, NET (continued)
Accounts Receivable - HUD
As of December 31, 2017, Accounts receivable - HUD represents amounts due to the Authority for
amounts expended under the Public Housing Capital Fund program that have not yet been
reimbursed. Management estimates the amounts to be fully collectible and therefore no allowance
for doubtful accounts has been established.
Accounts Receivable - Tenants, Net
Tenant accounts receivable represents amounts owed to the Authority by tenants for outstanding
rent. The balance is shown net of an allowance for doubtful accounts of $215,200.
Accounts Receivable - Miscellaneous
Accounts receivable - miscellaneous consists of amounts owed from managed properties and other
miscellaneous sources from normal ongoing operations. The Authority expects to collect all
miscellaneous receivables and as such does not have an allowance on these funds.
NOTE 4. INVESTMENTS
As of December 31, 2017, the Authority's investments are stated at cost which approximates their
fair value, and consisted of the following:
Maturities
Investment Type Fair Value
Less than
One Year
One to
Five Years
Credit
Risk
Federal Agency Bonds / Notes $ 690,298 $ - $ 690,298 AA+
Interest Rate Risk – The Authority does not have a formal investment policy that limits investment
maturities as a means of managing its exposure to fair value losses arising from increasing interest
rates.
The Authority’s investment policy requires the Chief Financial Officer to periodically review its
investments. For U.S. government securities, maximum maturity permitted by the policy is 10 years
from the date of purchase. For most other securities, the maximum maturity is five years or less
from the date of purchase.
The investments are held in the Authority’s name at a third party custodian. The Authority’s
custodian issues monthly statements which the Finance Department reviews for contractual and
investment policy compliance.
Credit Risk - All investments are in financial instruments in accordance with HUD regulations.
Treasury Bills and agency notes held by banks in the name of the Authority are fully guaranteed
by the federal government. Certificates of Deposit held in the name of the Authority are covered
by FDIC up to $250,000 and Governmental Unit Deposit Protection Act (GUDPA) of the State of
New Jersey. The Authority does not have an investment policy that would further limit its
investment choices and it places no limit on the amount that can be invested with any one issuer.

DECEMBER 31, 2017
NOTE 4. INVESTMENTS (continued)
The Authority’s investment policy is to apply the prudent-person rule. Investments are made as a
prudent person would be expected to act, with discretion and intelligence, to seek reasonable
income, preserve capital and, in general, avoid speculative investments.
Pursuant to the requirements of the accounting standard relating to fair value measurements, the
Authority has provided fair value disclosure information for relevant assets and liabilities in these
financial statements. There are three levels for fair value hierarchy. These levels are:
 Level 1 - Valuation is based upon quoted prices for identical instruments traded in active
markets.
 Level 2 - Valuation is based upon quoted prices for similar instruments in active markets,
quoted prices for identical or similar instruments in markets that are not active, and input
other than quoted prices that are observable instruments in the market.
 Level 3 - Valuation is generated from mode-based techniques that use significant
assumptions not observable in the market.
The following table summarizes assets which have been accounted for at fair value on a recurring
basis as of December 31, 2017:
Basis for Valuation
Investment Type Total
Quoted Prices
in Active
Markets
Level 1
Observable
Measurement
Criteria
Level 2
Unobservable
Measurement
Criteria
Level 3
Federal Agency Bonds / Notes $ 690,298 $ - $ 690,298 $ -
NOTE 5. RESTRICTED DEPOSITS
As of December 31, 2017, restricted deposits consisted of the following:
Cash Category Amount
Capital Fund Financing Program Loan Proceeds ("CFFP") $ 2,249,441
Proceeds from Equipment Lease Purchase Agreement 8,888,739
Energy Performance Contract Escrows 67,354
Family Self Sufficiency deposits 462,675
Section 8 housing assistance payments reserves 199,711
Total restricted deposits $ 12,679,436

DECEMBER 31, 2017
NOTE 5. RESTRICTED DEPOSITS (continued)
Capital Fund Financing Program ("CFFP") loan proceeds represent the unspent proceeds from the
Authority's borrowings related to the CFFP. The funds are restricted to be spent in the Public and
Indian Housing program in accordance with the Authority's annual plan.
Proceeds from the Equipment Lease Purchase Agreement represent the unspent proceeds from the
Authority's energy performance loan. The funds are restricted to be spent on energy conservation
fixtures in accordance with the Authority's energy performance contract.
Energy Performance Contract Escrows represents amount held in escrow as per the Authority's
Energy Performance Contract. Such amounts will be released upon the Authority reaching certain
milestones.
Family Self Sufficiency ("FSS") program escrows are restricted for use in the Section 8 Housing
Choice Voucher and Public and Indian Housing programs by FSS program participants.
Tenant security deposits represent amounts held by the Authority on behalf of tenants participating
in the Public and Indian Housing Program. Upon termination from the program, the tenant is due
amounts deposited plus interest earned less any amounts charged for damage to the unit.
Section 8 housing assistance payment ("HAP") reserves are restricted for use in the Section 8
Housing Choice Vouchers program for future housing assistance payments.
NOTE 6. CAPITAL ASSETS, NET
The following is a summary of changes in capital assets for the year ended December 31, 2017:
Description
December 31,
2016
(as restated) Additions Dispositions Transfers
December 31,
2017
Non-depreciable:
Land $ 108,426,764 $ 251,493 $ (1,055,219) $ - $ 107,623,038
Construction in progress 82,251,521 11,836,751 (209,409) 8,510,172 102,389,035
Total 190,678,285 12,088,244 (1,264,628) 8,510,172 210,012,073
Depreciable:
Buildings 584,045,444 36,089,859 (19,872,145) (8,500,511) 591,762,647
Furniture and equipment 32,603,919 11,698 (914,022) (9,661) 31,691,934
Total 616,649,363 36,101,557 (20,786,167) (8,510,172) 623,454,581
Less: accumulated depreciation (376,244,630) (24,000,019) 21,543,248 - (378,701,401)
Net capital assets $ 431,083,018 $ 24,189,782 $ (507,547) $ - $ 454,765,253
Depreciation expense for the year ended December 31, 2017 amounted to $24,000,019.

NHA CAFR 2017 final 12 27-2018

NHA CAFR 2017 final 12 27-2018

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NHA CAFR 2017 final 12 27-2018