HomeMy WebLinkAbout2026 Lansing Housing Commission Financial Statements and Independent Auditors Report for Fiscal Year ended June 30, 2025 • •
Lansing
COMMISSION
Financial Statements & Independent Auditors' Report
For the Year Ended June 30, 2025
D1
smithmarion
Lansing Housing Commission
Table of Contents
For the Year Ended June 30, 2025
Page
FINANCIAL INFORMATION
Independent Auditors' Report 1
Management's Discussion and Analysis i
Statement of Net Position 4
Statement of Revenues, Expenses, and Changes in Net Position 5
Statement of Cash Flows 6
Notes to Financial Statements 7
REQUIRED SUPPLEMENTARY INFORMATION
10 Year History of Changes in Net Pension (Asset) Liability and Related Ratios 27
10 Year History of Pension Contributions 29
10 Year History of Changes in Net OPEB(Asset) Liability and Related Ratios 30
10 Year History of OPEB Contributions 32
SUPPLEMENTARY INFORMATION
Business Activities:
Statement of Net Position 33
Statement of Revenues, Expenses, and Changes in Net Position 35
Statement of Cash Flows 36
Discretely Presented Component Units:
Statement of Net Position 38
Statement of Revenues, Expenses, and Changes in Net Position 40
Statement and Certification of Actual Costs 41
Schedule of Expenditures of Federal Awards 42
Notes to Schedule of Expenditures of Federal Awards 43
NON-FINANCIAL SECTION
Report on Internal Control over Financial Reporting and on Compliance and Other
Matters Based on an Audit of Financial Statements Performed in Accordance
with Government Auditing Standards 44
Report on Compliance for Each Major Federal Program and Report on Internal Control
over Compliance in Accordance with the Uniform Guidance 46
Schedule of Findings and Questioned Costs 49
Summary Schedule of Prior Year Findings and Questioned Costs 50
• t:(615)309-8959
(909)80 4 smithmarion
• 068 rurall plains circle#180
franklin,to 37064 b(Iconnected . focused . understandable
Board of Commissioners
Lansing Housing Commission
Lansing, MI
Independent Auditors' Report
Report on the Financial Statements
Opinions
We have audited the accompanying financial statements of business-type activities and the aggregated discretely
presented component units of Lansing Housing Commission as ofand for the year ended June 30,2025,and the related
notes to the financial statements,which collectively comprise Lansing Housing Commission's basic financial statements
as listed in the table of contents.
In our opinion,the financial statements referred to above presentfairly,in all material respects,the respective financial
position of the business-type activities,discretely presented component units and combining schedule of business-type
activities of the Lansing Housing Commission,as of June 30,2025,and the respective change in financial position and
cash flows thereof for the year then ended in accordance with the accounting principles generally accepted in the
United States of America.
We did not audit the financial statements of La Roy Froh Limited Dividend Housing Association,L.P.,Mount Vernon Park
Limited Dividend Housing Association, L.P., South Washington Limited Dividend Housing Association, L.P., and
Hildebrandt Park Limited Dividend Housing Association,L.P.,which represent 100 percent of the assets,net position,
and revenue of the aggregate discretely presented component units as of December 31, 2024, and the respective
changes in financial position for the year then ended. Those financial statements were audited by other auditors,
whose report has been furnished to us,and our opinion, insofar as it relates to the amounts included for LaRoy Froh
Limited Dividend Housing Association, L.P., Mount Vernon Park Limited Dividend Housing Association, L.P., South
Washington Limited Dividend Housing Association,L.P.,and Hildebrandt Park Limited Dividend Housing Association,
L.P., is based solely on the report of the other auditors.
Basis for Opinions
We conducted our audit in accordance with auditing standards generally accepted in the United States of America
(GAAS)and the standards applicable to financial audits contained in Government Auditing Standards, issued by the
Comptroller General of the United States. Our responsibilities under those standards are further described in the
Auditor's Responsibilities for the Audit of the Financial Statements section of our report.The financial statements of
the aggregate discretely presented component unit were not audited in accordance with Government Auditing
Standards.
We are required to be independent of the Lansing Housing Commission and to meet our other ethical responsibilities,
in accordance with the relevant ethical requirements relating to our audit.We believe that the audit evidence we have
obtained is sufficient and appropriate to provide a basis for our audit opinions.
1
(I
Responsibilities of Management for the Financial Statements
Management is responsible for the preparation and fair presentation of the financial statements in accordance with
accounting principles generally accepted in the United States of America, and for the design, implementation, and
maintenance of internal control relevant to the preparation and fair presentation of financial statements that arefree
from material misstatement,whether due to fraud or error.
In preparing the financial statements, management is required to evaluate whether there are conditions or events,
considered in the aggregate,that raise substantial doubt about Lansing Housing Commission's ability to continue as a
going concern for twelve months beyond the financial statement date,including any currently known information that
may raise substantial doubt shortly thereafter.
Auditor's Responsibilities for the Audit of the Financial Statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from
material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinions.
Reasonable assurance is a high level of assurance but is not absolute assurance and therefore is not a guarantee that
an audit conducted in accordance with GAAS and Government Auditing Standards will always detect a material
misstatement when it exists.The risk of not detecting a material misstatement resulting from fraud is higher than for
one resulting from error, as fraud may involve collusion,forgery, intentional omissions, misrepresentations, or the
override of internal control.Misstatements are considered material if there is a substantial likelihood that,individually
or in the aggregate,they would influence the judgment made by a reasonable user based on the financial statements.
In performing an audit in accordance with GAAS and Government Auditing Standards,we:
• Exercise professional judgment and maintain professional skepticism throughout the audit.
• Identify and assess the risks of material misstatement of the financial statements,whether due to fraud or error,
and design and perform audit procedures responsive to those risks.Such procedures include examining,on a test
basis,evidence regarding the amounts and disclosures in the financial statements.
• Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are
appropriate in the circumstances,but not forthe purpose of expressing an opinion on the effectiveness of Lansing
Housing Commission's internal control.Accordingly, no such opinion is expressed.
• Evaluate the appropriateness of accounting policies used and the reasonableness of significant accounting
estimates made by management,as well as evaluate the overall presentation of the financial statements.
• Conclude whether, in our judgment, there are conditions or events, considered in the aggregate, that raise
substantial doubt about Lansing Housing Commission's ability to continue as a going concern for a reasonable
period of time.
We are required to communicate with those charged with governance regarding,among other matters,the planned
scope and timing of the audit,significant audit findings,and certain internal control—related mattersthat we identified
during the audit.
2
Required Supplementary Information
Accounting principles generally accepted in the United States of America require that the Management's Discussion
and Analysis and other required supplementary information,as identified in the table of contents, be presented to
supplement the basic financial statements.Such information,although not a part of the basic financial statements,is
required by the Governmental Accounting Standards Board who considers it to be an essential part of financial
reportingfor 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 consistencywith 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.
Supplementary Information
Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise
Lansing Housing Commission's basic financial statements.The supplemental information,as described in the table of
contents, and the schedule of expenditures of federal awards, which is required by Title 2 U.S. Code of Federal
Regulations(CFR)Part 200, Uniform Administrative Requirement,Cost Principles,and Audit Requirements for Federal
Awards,are presented for purposes of additional analysis and are not a required part of the financial statements.
The supplementary information is 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 supplementary information is 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 8, 2025,on our
consideration of Lansing Housing Commission's internal control overfinancial reporting and ourtests of its compliance
with certain provisions of laws, regulations,contracts,and grant agreements and other matters.The purpose of that
report is solely to describe the scope of ourtesting of internal control overfinancial reporting and compliance and the
results of that testing, and not to provide an opinion on the effectiveness of Lansing Housing Commission's 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 Lansing Housing Commission's internal control over financial
reporting and compliance.
3,,, G
December 8,2025
3
LANSING HOUSING COMMISSION
MANAGEMENT DISCUSSION & ANALYSIS
FISCAL YEAR ENDED June 30, 2025
This section of the Commission's annual financial report presents management's analysis of the
Commission's financial performance during the Fiscal Year Ended June 30, 2025.
FINANCIAL HIGHLIGHTS AND CONCLUSIONS:
The Lansing Housing Commission has made the transition to the Governmental Accounting Standards
Board Statement No. 34 (GASB 34) in prior periods which require this executive narrative. The financial
statements for 2025 have been reviewed by key management staff to assess the financial health of the
Commission. The reader of this report should also understand that the interfund accounts, which
balance between all funds, have been eliminated from the consolidated report and from this analysis.
Financial highlights of this past year are as follows:
➢ During FY 2025, the Commission's grant funding increased by $3,948,443 or 16.86% from FY
2024.
➢ The assets of the Commission exceeded its' liabilities at the close of the most recent fiscal year
by $57,181,061 (net position) as opposed to $52,495,588 for the prior fiscal year, an increase of
$4,685,473 or 8.93%.
➢ The Commission's cash and investments balance decreased by $1,889,970. This decrease was
the result of new investments into affordable public housing projects.
➢ The Commission continues to invest in local affordable public housing as evidenced by the
increase in notes receivable by$9,840,000 or 43.67%compared to 2024 balances.
➢ Operating revenues increased by$2,428,366 or 9.02%, while total operating expenses increased
by$987,956 or 3.98%.
REQUIRED FINANCIAL STATEMENTS:
The Financial Statements of the Commission report information using accounting methods similar to
those used by private sector companies (Enterprise Fund).
The Statement of Net Position (Balance Sheet) includes all of the Commission's assets and liabilities and
provides information about the amounts and investments in assets and the obligations to Commission
creditors. It also provides a basis of assessing the liquidity and financial flexibility of the Commission.
Over time, increases or decreases in net position may serve as a useful indicator of whether the financial
health of the Commission is improving or deteriorating.
The current year's revenues, expenses, and changes in net position are accounted for in the Statement
of Revenues, Expenses, and Changes in Net Position. This statement measures the success of the
Commission's operations over the past fiscal year.
The Statement of Cash Flows is to provide information about the Commission's cash receipts and
disbursements during the reporting period. The statement reports net changes in cash resulting from
operations, investing, and financing activities.
FINANCIAL ANALYSIS OF THE COMMISSION:
One question frequently asked about a Commission's finances is "Did the Commission's operations and
financial position improve or deteriorate over the previous fiscal year?" The Statement of Net Position
and the Statement of Revenues, Expenses and Changes in Net Position report information about the
Commission's activities and are summarized in the following sections.
To begin our analysis, a summary of the Commission's Statement of Net Position is presented in Table I.
Change
2025 2024 Dollar Percentage
ASSETS
Current assets $ 25,455,714 $ 28,680,026 $ (3,224,312) -11.24%
Capital&non-current assets 37,368,377 26,975,086 10,393,291 38.53%
Total assets 62,824,091 55,655,112 7,168,979 12.88%
DEFERRED OUTFLOWS OF RESOURCES 482,823 603,224 (120,401) -19.96%
LIABILITIES
Current liabilities 3,546,256 954,739 2,591,517 271.44%
Non-current liabilities 2,544,594 2,764,706 (220,112) -7.96%
Total liabilties 6,090,850 3,719,445 2,371,405 63.76%
DEFERRED INFLOWS OF RESOURCES 35,003 43,303 (8,300) -19.17%
NET POSITION
Investment in capital assets 2,827,073 2,256,481 570,592 25.29%
Restricted net position 889,340 315,026 574,314 0.00%
Unrestricted net position 53,464,648 49,924,081 3,540,567 7.09%
Total net position $ 57,181,061 $ 52,495,588 $ 4,685,473 8.93%
Total assets increased by $7,168,979 or 12.88%, total liabilities increased by $2,371,405 or 63.76%,
and the overall net position increased by$4,685,473 or 8.93%.
Current Assets decreased by$3,224,312.The decrease relates to investments into notes receivable on
affordable public housing projects. These investments caused the capital and noncurrent assets to
increased by$10,393,291 or 38.53%.
Current Liabilities increased by $2,591,517. All of this increase is due to cash being held at year end
and that is committed to the investment projects in affordable public housing. Noncurrent liabilities
decreased by$220,112 or 7.96%.
While the Statement of Net Position shows the change in financial position, the Statement of
Revenues, Expenses, and Changes in Net Position breaks down our revenues and expenses further.
Table II, which follows, provides a comparative statement of these changes:
Change
2025 2024 Dollar Percentage
Dwelling rent $ 199,483 $ 294,444 $ (94,961) -32.25%
Government grants 27,448,288 24,332,353 3,115,935 12.81%
Other income 1,773,113 3,198,229 (1,425,116) -44.56%
Gain on disposal of assets 601,145 1,724,953 (1,123,808) -65.15%
Interest income 544,307 809,207 (264,900) -32.74%
TOTAL REVENUES 30,566,336 30,359,186 207,150 0.68%
Administration 3,355,050 3,177,707 177,343 5.58%
Tenant services 69,810 28,722 41,088 143.05%
Utilities 219,537 192,921 26,616 13.80%
Maintenance and operations 1,620,269 1,955,672 (335,403) -17.15%
Protective services 1,190 1,700 (510) 0.00%
Insurance 140,501 130,879 9,622 7.35%
Other expenses 22,239 33,331 (11,092) -33.28%
Housing Assistance Payments 20,164,827 19,106,641 1,058,186 5.54%
Depreciation 209,235 187,129 22,106 11.81%
Interest Expense 78,205 80,434 (2,229) -2.77%
TOTAL EXPENSES 25,880,863 24,895,136 985,727 3.96%
CHANGE IN NET POSITION 4,685,473 5,464,050 (778,577) -14.25%
BEGINNING NET POSITION 52,495,588 48,028,671
Prior Period Correction - (997,133)
ENDING NET POSITION $ 57,181,061 $ 52,495,588
iii
REVENUES:
In reviewing the Statement of Revenues, Expenses, and Changes in Net Position, you will find that
89.77% of the Commission's revenues are derived from grants from the Department of Housing and
Urban Development (HUD) and other government sources. The Commission received revenue from
tenants for dwelling rental charges and miscellaneous charges comprising less than 1% of total
revenue. Other Revenue including, developer fees, and third party servicing income comprise 7.60%.
The sale of capital assets as part of HUD's Section 18 Demolition and Disposition program represents
the final 2% of revenue. The proceeds from these sales will be reinvested into local affordable public
housing units.
2025 Revenues
■ Dwelling rent
1.78%
0.65% ■Grant Funding
7.77% Other Income
■ Interest Income
Tenant Revenue—Total tenant revenues, rents and other charges, less bad debt expense, decreased
by $94,961 or 32.25%. Much of this decrease is representative of the continued challenges our
residents face and the additional supportive funding needed to keep them in quality residential units.
Program Grants/Subsidies—The Commission had an increase of$3,948,443 or 16.86% in government
grants, primarily due to an increase in Housing Choice Voucher funding.
Interest Income — Interest income decreased $264,900 mainly due to the interest rate environment
currently supported by the Federal Reserve and the increased need for liquidity as the Commission
uses available funds to invest in local affordable public housing.
iv
EXPENSES:
2025 Expenses
0.099/0 0.30% 0.81% 0.27%
12.96% 0.85% ■Administration
6.26/0 E Tenant services
0.54% Utilities
77.91% ■Maintenance and operations
■I nsuran ce
Housing Assistance Payments
■Other expenses
■Interest expense
Depreciation
The Commission experienced an increase in housing assistance program payments of $1,058,186 for
the current year. All other expenses combined decreased by $70,230. The highlights of the expenses
for the current year were as follows:
Administrative — Administrative costs include all non-maintenance and non-resident service
personnel costs (including benefits and accrued leave), legal costs, auditing costs, travel and training
costs, and other administrative costs such as supplies, telephone expense, etc. Compared to 2024,
administrative costs increased by $177,343 or 5.58%. The increase is consistent with the
Commission's focus to invest more in our employees and to equip them with the tools necessary to
house as many people as possible.
Tenant Services—Tenant services costs include all costs incurred by the Commission to provide social
services to the residents. Tenant services costs increased by $41,088 or 143.05%. The Commission
has stated goals of increasing tenant services and this increase in expenses is consistent with the
Commission's plans to offer more than just a place to live.
Utilities—The total utilities expense for the Commission increased by$26,616 or 13.80%.
Maintenance — Maintenance costs are all costs incurred by the Commission to maintain the Public
Housing units available for occupancy, which are owned by the Commission, in a safe and sanitary
manner. Costs include personnel costs, materials used to maintain the units, contracts for waste
management, casualty losses, extraordinary maintenance, etc. Maintenance expenses decreased by
$335,403 or 17.1S%.
v
Insurance Expenses —Insurance expenses increased by $9,622 or 7.35%. This increase was below
market average for our geographic area.
Interest and Amortization Expenses — Financial expenses include interest expense on notes payable
and mortgages payable and bond amortization. During FY 2025, financial expenses decreased by
$2,229 or 2.77%. This decrease is consistent with the Commission's overall effort to reduce long-term
liabilities and total interest expense.
Housing Assistance Program Payments — HAP payments consist of rental payments to owners of
private property for which the housing Commission has a HAP agreement with the tenant and the
owner for the difference between the tenants rent and the applicable payment standard. During the
year,the HAP expense increased by$1,058,186 or 5.54%due to increased per unit costs.
Depreciation— Because the costs of all capitalized additions are spread over the estimated useful life
of an asset, the estimated current year costs of capitalized items are recorded as depreciation.
Depreciation expense for the current year increased by$22,106 or 11.81%.
CAPITAL ASSETS:
A statement of capital asset activity is shown below for 2025 and 2024.
Change
2025 2024 Dollar Percentage
Land $ 1,503,046 $ 968,800 $ 534,246 55.15%
Buildings and improvements 7,672,322 7,597,816 74,506 0.98%
Equipment 857,897 863,015 (5,118) -0.59%
Construction in progress 24,400 - 24,400 0.00%
10,057,665 9,429,631 628,034 6.66%
Accumulated depreciation (5,251,479) (5,153,052) (98,427) 1.91%
Net capital assets $ 4,806,186 $ 4,276,579 $ 529,607 12.38%
DEBT ADMINISTRATION:
As of June 30, 2025, the Commission had $1,979,113 of debt outstanding, a decrease of $64,991 or
3.18%.The following is a summary in the changes of total debt obligations for the year ended June 30,
2025:
Balance at the beginning of the period $ 2,044,104
Principal payments (64,991)
Balance at June 30, 2025 $ 1,979,113
vi
ECONOMIC FACTORS AND EVENTS AFFECTING OPERATIONS:
Housing costs continue to rise in the Lansing market.Absent further adjustments from HUD, continual
increases in rental rates may lead to reductions in the total volume of residents this Commission is
able to assist. The Commission is actively working with government grant representatives to ensure
our funding keeps pace with changing market conditions.
CONCLUSIONS:
The Commission continues to invest heavily in affordable public housing. In the coming fiscal year, Its'
development program has current construction projects that will add in excess of 100 units to our
market area and we support other developments that promise to make available units that meet the
needs of vulnerable low income individuals. The Commission's management is committed to staying
abreast of regulations and appropriations as well as maintaining an ongoing analysis of all budgets
and expenses to ensure that the Commission continues to operate at the highest standards
established by the Real Estate Assessment Center and the Department of Housing and Urban
Development.
This financial report is designed to provide our residents, the citizens of Lansing, MI, all federal and
state regulatory bodies, and any creditors with a general overview of the Commission's finances. If
you have any questions regarding these financial statements or supplemental information, you may
write to the Lansing Housing Commission, Douglas Fleming, Executive Director, 419 Cherry St, Lansing
MI 48933.
vii
Lansing Housing Commission
Statement of Net Position
June 30, 2025
Discretely
Presented
Primary Component
Government Units
ASSETS
Current Assets
Cash and cash equivalents
Unrestricted $ 21,892,634 $ 856,894
Restricted 814,390 7,129,801
Subtotal 22,707,024 7,986,695
Certificates of Deposit 2,284,185 -
Accounts receivable, net 440,518 271,681
Prepaid expenses 23,987 173,364
Total Current Assets 25,455,714 8,431,740
Non-Current Assets
Notes receivable 32,373,200 -
OPEB plan assets 188,991 -
Other assets - 439,823
Capital assets not being depreciated 1,527,446 2,505,000
Capital assets, net 3,278,740 79,058,826
Total Non-Current Assets 37,368,377 82,003,649
TOTAL ASSETS 62,824,091 90,435,389
DEFERRED OUTFLOWS OF RESOURCES 482,823 -
LIABILITIES
Current Liabilities
Accounts payable 182,606 162,113
Accrued liabilities 134,454 1,630,645
Deposits held in trust 14,940 99,577
Compensated absences current 11,603 -
Unearned revenue 32,947 111,688
Other liabilities current 3,125,260 196,263
Financial agreements payable current 44,446 24,630,439
Total Current Liabilities 3,546,256 26,830,725
Non-Current Liabilities
Compensated absences 65,751 -
Funds held in trust 69,670 303,314
Net pension liability 474,506 -
Financial agreements payable 1,934,667 32,165,262
Total Non-Current Liabilities 2,544,594 32,468,576
TOTAL LIABILITIES 6,090,850 59,299,301
DEFERRED INFLOWS OF RESOURCES 35,003 -
NET POSITION
Net investment in capital assets 2,827,073 42,264,085
Restricted 889,340 7,030,224
Unrestricted 53,464,648 (18,158,221)
TOTAL NET POSITION $ 57,181,061 $ 31,136,088
See notes to financial statements 4
Lansing Housing Commission
Statement of Revenues, Expenses, and Changes in Net Position
For the Year Ended June 30, 2025
Discretely
Presented
Primary Component
Government Units
Operating Revenues
Rental revenues, net $ 199,483 $ 1,360,090
Government grants 27,367,557 4,332,269
Other income 1,773,113 3,721
Total Operating Revenues 29,340,153 5,696,080
Operating Expenses
Administration 3,355,050 1,564,362
Tenant services 69,810 -
Utilities 219,537 1,019,537
Maintenance and operations 1,620,269 1,082,047
Protective services 1,190 216,484
Insurance expense 140,501 298,873
General expense 22,239 22,156
Housing Assistance Payments 20,164,827 -
Depreciation and amortization 209,235 3,183,854
Total Operating Expenses 25,802,658 7,387,313
NET OPERATING INCOME(LOSS) 3,537,495 (1,691,233)
Non-Operating Revenues(Expenses)
Interest income 544,307 262,717
Gain on disposal of assets 601,145 (16,854)
Interest expense (78,205) (3,298,319)
Total Non-Operating Revenues(Expenses) 1,067,247 (3,052,456)
INCOME(LOSS)BEFORE CAPITAL CONTRIBUTIONS AND TRANSFERS 4,604,742 (4,743,689)
Capital Contributions and Transfers
Capital contributions 80,731 1,664,409
Transfers - -
Total Capital Contributions and Transfers 80,731 1,664,409
CHANGE IN NET POSITION 4,685,473 (3,079,280)
BEGINNING NET POSITION 52,495,588 34,215,368
ENDING NET POSITION $ 57,181,061 $ 31,136,088
See notes to financial statements 5
Lansing Housing Commission
Statement of Cash Flows
For the Year Ended June 30, 2025
CASH FLOWS FROM OPERATING ACTIVITIES
Receipts from tenants and users $ 4,364,759
Receipts from operating grants 27,575,543
Payments for goods and services (4,546,173)
Payments for Housing Assistance Payments (20,164,827)
Payments to employees for services (2,599,648)
NET CASH FLOW PROVIDED(USED)BY OPERATING ACTIVITIES 4,629,654
CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES
Capital asset(purchases)/gain on sale (137,697)
Payments on leases and loans (119,190)
Capital contributions 80,731
NET CASH FLOW PROVIDED(USED)BY CAPITAL AND RELATED FINANCING ACTIVITIES (176,156)
CASH FLOWS FROM INVESTING ACTIVITIES
Proceeds from investment activities 544,306
(Purchase)or sale of notes receivable (6,887,774)
(Purchase)or redemption of CD 17,064,599
NET CASH FLOW PROVIDED(USED)BY INVESTING ACTIVITIES 10,721,131
NET INCREASE(DECREASE)IN CASH 15,174,629
BEGINNING CASH 7,532,395
ENDING CASH $ 22,707,024
RECONCILIATION OF OPERATING INCOME(LOSS)TO NET CASH PROVIDED(USED) BY OPERATING
ACTIVITIES
Operating income (loss) $ 3,537,495
Adjustments to Reconcile Operating Income(Loss)to Net Cash Provided(Used)
by Operating Activities
Depreciation 209,235
Pension/OPEB (96,428)
Change in Assets and Liabilities
(Increase)decrease in accounts receivable 1,169,158
(Increase)decrease in inventory and prepaid (4,816)
Increase (decrease) in accounts payable (255,839)
Increase(decrease) in accrued liabilities 71,200
Increase(decrease) in unearned revenue (1,411)
Increase(decrease) in deposits held in trust 1,060
Total Adjustments 1,092,159
Net Cash Provided(Used)by Operating Activities $ 4,629,654
Interest Paid $ -
See notes to financial statements 6
Lansing Housing Commission
Notes to Financial Statements
For the Year Ended June 30, 2025
NOTE 01 - SUMMARY OF ORGANIZATION AND SIGNIFICANT ACCOUNTING POLICIES
Introduction
The financial statements of Lansing Housing Commission (the Commission) have been prepared in accordance with
Generally Accepted Accounting Principles (GAAP). The Governmental Accounting Standards Board (GASB) is the
standard-setting body for establishing GAAP for state and local governments through its pronouncements(Statements
and Interpretations).The Commission has previously implemented GASB Statement 34,Basic Financial Statements—
and Management's Discussion and Analysis for State and Local Governments. Certain significant changes in the
statements are as follows: The financial statements will include a Management's Discussion and Analysis (MD&A)
section providing an analysis of the Commission's overall financial position and results of operations.
The Commission is a special-purpose government engaged only in business-type activities and,therefore,presents only
the financial statements required for enterprise funds,in accordance with GASB.Forthese governments,basic financial
statements and required supplemental information consist of:
• Management's Discussion and Analysis(MD&A)
• Enterprise fund financial statements consisting of:
o Statement of Net Position
o Statement of Revenues, Expenses,and Changes in Net Position
o Statement of Cash Flows
• Notes to Financial Statements
• Required supplemental information other than MD&A and supplemental information
Under the United States Housing Act of 1937,as amended,the U.S. Department of Housing and Urban Development
(HUD)has direct responsibility for administering low-income housing programs in the United States.Accordingly,HUD
has contracted with the Commission to administer certain HUD funds.
Reporting Entity
The Commission is a Michigan public body corporation operating as a public housing authority under the Michigan
Housing Facilities Act, MCL 125.65, to provide decent, safe, and adequate housing for low-income program
participants.The Commission owns and provides subsidy and operation support for housing units located throughout
the Lansing area.The Commission's assets,deferred outflows,liabilities,deferred inflows,net position,and changes in
net position are included in its primary government fund and include all AMPS,COCC,business activities,and programs
of the Commission.The Commission receives and administers funds from the U.S.Department of Housing and Urban
Development (HUD) and has signed an annual contributions contract(ACC) under the provisions of the ACC and all
applicable provisions of the United States Housing Act of 1937 (42 U.S.C. 1437 Section 1.1). The ACC allows the
Commission to obtain financial support from HUD and provide low-income housing throughout Lansing. All of the
operations of the Commission are included in the audited financial statements and there are no operations or activities
which have been excluded.The Commission is not subject to Federal or State income taxes and is not required to file
Federal or State income tax returns.
GASB Statement No.14 established criteria for determiningthe governmental reporting entity.Under provisions of this
statement,the Commission is considered a primary government,since it is a special-purpose government that has a
separate governing body,is legally separate,and is fiscally independent of other state and local governments.As used
in GASB 14, fiscally independent means that the Commission may, without the approval or consent of another
governmental entity,determine or modify its own budget,control collection and disbursements of funds, maintain
responsibility for funding deficits and operating deficiencies,and issue bonded debt.
7
Lansing Housing Commission
Notes to Financial Statements
For the Year Ended June 30, 2025
The Commission's primary operations comprise several housing and grant programs as follows:
• Low-Rent Public Housing
• Capital Fund Program
• Housing Choice Voucher Program
• Continuum of Care Program
• Non-HUD Program
• Shelter Plus Care and Permanent Supportive Housing
In determining how to define the reporting entity, management has considered all potential component units.The
decision to include a component unit in the reporting entity was made by applying the criteria set forth in Section 2100
and 2600 of GASB's Codification of Governmental Accounting and Financial Reporting Standards and Statement No.14
and No. 61 of the Government Accounting Standards Board, the Financial Reporting Entity.
• The organization is legally separate(can sue and be sued in their own name).
• The Commission holds the corporate powers of the organization.
• The Commission appoints a voting majority.
• The Commission is able to impose its will on the organization.
• The organization has the potential to impose a financial benefit/burden on the Commission.
• There is fiscal dependency by the organization on the Commission.
Based on the aforementioned criteria,and the control and relationship between the Commission and the component
units,the Commission has determined that the following entities are considered component units of the Commission
and are required to be blended within the Commission's financial statements:
Blended Component Units
Blended component units are separate legal entities that meetthe component unit criteria described above and whose
governing body is the same or substantially the same as the Commission's Board of Commissioners or the component
units provide services entirely to the Commission. These component units' funds are blended into those of the
Commission's by appropriate activity type to compose the primary government presentation.
Currently,the Commission has three component units that meet the criteria for blending.
Lansing Housing Commission Non-Profit Development Corporation (LHCNPDC), a nonprofit organization. The
Commission has financial accountability for the nonprofit and controls its board of directors and management.
LHCNPDC operates on the same fiscal year as the Commission,June 30,2025,there was no activity and no separate
report has been issued.
Oliver Gardens,L.L.C.(Oliver Gardens),a limited liability company underthe laws of the State of Michigan,wasformed
in June 2006,for the purpose of leasing and operating 30 units of multifamily rental housing.The Commission is the
sole member of the board of Oliver Gardens and is responsible for the operations of Oliver Gardens. As such, the
Commission has the abilityto impose its will on Oliver Gardens.Oliver Gardens operates on a different fiscal yearthan
the Commission.A separate audit report has been issued for the year ended December 31, 2024.
Capital City Property Management,L.L.C.(Capital City Property Management),a limited liability company under the
laws of the State of Michigan, was formed in January 2023, for the purpose of providing property management
services.The Commission is the sole member of the board of Capital City Project Management and is responsible for
the operations of Capital City Property Management. As such,the Commission has the ability to impose its will on
Capital City Property Management. Capital City Property Management operates on the same fiscal year as the
Commission,June 30,2025, no separate audit report has been issued.
8
Lansing Housing Commission
Notes to Financial Statements
For the Year Ended June 30, 2025
Discretely Presented Component Units
Discretely presented component units are separate legal entities that meet the component unit criteria described
above but do not meet the criteria for blending.
As of the year ended June 30, 2025, the Commission, along with its blended component unit, is the manager and
operator of four low-income residential real estate developments organized as real estate limited partnerships.Under
a Management Agreement and a Guarantee Agreement with each of the limited partnerships, the Commission is
financially accountable for the limited partnerships as the Commission is legally obligated to fund operating deficits in
accordance with the terms of the partnership,management,and guarantee agreements.The Commission also holds
the right to purchase the properties from the limited partnerships under a Purchase Option/Right of First Refusal atthe
end of the 15-year tax compliance period. Balances presented for discretely presented component units on the
accompanying statement of net position and statement of revenues,expenses and other changes in net position are as
of December 31,2024.These entities follow all applicable Financial Accounting Standards Board(FASB)standards,and
financial statements are prepared on the accrual basis of accounting in accordance with GAAP.Since they do not follow
GASB for presentation purposes,certain transactions may be reflected differently in these financial statements than in
the separately issued financial statements in order for them to conform to the primary government presentation.
The Commission has four discretely presented component units as follows:
Mount Vernon Park Limited Dividend Housing Association Limited Partnership (Mount Vernon Park) was formed
underthe laws of the State of Michigan to acquire,rehabilitate,own,and operate Waverly Place Apartments underthe
U.S.Department of Housing and Urban Development's rental assistance demonstration(RAD)program and consists of
140 rental units rented to low-income individuals in Lansing, Michigan.The major activities of Mount Vernon Park,
including rental rates,are governed bythe partnership agreement and Michigan State Housing Development Authority.
The property is developed and operated underthe low-income housing tax credit program,as provided for in Section
42 of the Internal Revenue Code.
South Washington Limited Dividend Housing Association Limited Partnership(South Washington Park)was formed
under the laws of the State of Michigan to acquire, rehabilitate,own,and operate Capital City Apartments under the
U.S. Department of Housing and Urban Development's RAID program and consists of 187 rental units rented to low-
income individuals in Lansing, Michigan. The major activities of South Washington Park, including rental rates, are
governed by the partnership agreement and Michigan State Housing Development Authority. The property is
developed and operated underthe low-income housing tax credit program,as provided for in Section 42 of the Internal
Revenue Code.
Hildebrandt Park Limited Dividend Housing Association Limited Partnership(Hildebrandt Park)was formed underthe
laws of the State of Michigan to acquire, rehabilitate,own,and operate Hildebrandt Park Apartments under the U.S.
Department of Housing and Urban Development's RAID program and consists of 100 rental units rented to low-income
individuals in Lansing, Michigan.The major activities of Hildebrandt Park, including rental rates,are governed by the
partnership agreement and Michigan State Housing Development Authority.The property is developed and operated
under the low-income housing tax credit program,as provided for in Section 42 of the Internal Revenue Code.
LaRoyFroh Limited Dividend Housing Association Limited Partnership(La Roy Froh)was formed underthe laws of the
State of Michigan to acquire, rehabilitate, own, and operate La Roy Froh Apartments under the U.S. Department of
Housing and Urban Development's RAID program and consists of 100 rental units rented to low-income individuals in
Lansing, Michigan. The major activities of La Roy Froh, including rental rates, are governed by the partnership
agreement and Michigan State Housing Development Authority.The property is developed and operated under the
low-income housing tax credit program,as provided for in Section 42 of the Internal Revenue Code.
Complete financial statements for each of the individual discretely presented components may be obtained at the
Commission's administrative office. Lansing Housing Commission,419 Cherry Street, Lansing, MI 48933.
9
Lansing Housing Commission
Notes to Financial Statements
For the Year Ended June 30, 2025
Budgetary Data
The Commission is required by its HUD annual contributions contracts to adopt annual budgetsforthe Low Rent Public
Housing Program and the Housing Choice Vouchers Program.Annual budgets are not required for the Capital Fund
Program,as those budgets are approved for the length of any given project.Annual,project,and grant-length budgets
require grantor approval.
Appropriations are authorized at the function level. Management may transfer budget authorization between
functions.All appropriations that are not used lapse at year end. Budgeted amounts are as originally adopted or as
amended by the board.
Basis of Presentation,Basis of Accounting and Measurement Focus
Basis of Accounting-The Commission uses the accrual basis of accounting in the proprietary funds.Underthis method,
revenues are recorded when earned,and expenses are recorded when liabilities are incurred,regardless of when the
related cash flow takes place.
Basis of Presentation -The financial statements of the Commission are presented from a fund perspective. Fund
accounting is designed to demonstrate legal compliance and to aid financial management by segregating transactions
related to certain Commission functions.The fund is a separate accounting entity with a self-balancing set of accounts.
The accounting and financial reporting method applied by a fund is determined by the fund's measurement focus.The
accounting objectives are determination of net income, financial position, and cash flows. All assets and liabilities
associated with the Proprietary Fund's activities are included on the statement of net position.In the statement of net
position, equity is classified as net position and displayed in three components:
Net Investment in Capital Assets - Consists of capital assets, net of accumulated depreciation and reduced by the
outstanding balance of any notes or other borrowings attributable to those capital assets.
Restricted Net Position - Consists of assets with constraints placed on the use either by external groups, such as
grantors or laws and regulations of other governments,or lawthrough constitutional provisions or enabling legislation.
Unrestricted Net Position-All other assets that do not meet the definition of"restricted"or"net investment in capital
assets".
Board of Commissioners
Name Term Expires Position
Emma Henry 6/30/2027 At-Large
As h I ee Ba rker 6/30/2029 At-La rge
Loria Hall 6/30/2030 At-Large
Heather Taylor 6/30/2026 At-Large
In addition to the above Commissioners, is Doug Fleming,who serves as the Executive Director.
Revenues and Expenses
Revenues and expenses are recognized in essentially the same manner as used in commercial accounting. Revenues
relating to the Commission are operating activities including rental related income,interest income and othersources
of revenues are recognized in the accounting period in which they are earned.Other major sources of revenues include
the operating subsidy from HUD and other HUD funding for operating expenses.
In accordance with GASB standards dwelling income has been netted with bad debt expense of$54,777.Collection
losses on accounts receivable are expended, in the appropriate Fund, on the specific write-off method.
10
Lansing Housing Commission
Notes to Financial Statements
For the Year Ended June 30, 2025
Operating Revenue
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 a proprietary
fund's principal ongoing operations.The principal operating revenues of the Commission are chargesto customers for
rents.Operating expenses include the cost of sales and services,administrative expenses,and depreciation on capital
assets.All revenues and expenses not meeting this definition are reported as non-operating revenues and expenses.
Subsidies received from HUD or other grantor agencies,for operating purposes,are recorded as operating revenue in
the operating statement while capital grant funds are added to the net position below the non-operating revenue and
expense.
Cash and Investments
Cash and cash equivalents consist of cash on hand and all highly liquid investments with an original maturity of three
months or less when purchased.
All Certificates of Deposit with original maturity of greater than three months are presented as investments. All
investments are Certificates of Deposit.
Accounts Receivable
Accounts receivable consists of all amounts earned at year end and not yet received. Allowances for uncollectible
accounts are based upon historical trends and periodic aging of accounts receivable.
Accounts for which no possibility of collection is anticipated are charged to bad debts expense which is netted against
dwelling rent revenues on the statement of revenues,expenses,and changes in net position.
Capital Assets and Depreciation
Capital assets are stated at historical cost.Donated capital assets are stated attheirfairvalue on the date donated.This
includes site acquisition and improvement,structures,and equipment.Depreciation of exhaustible capital assets used
by proprietary funds is charged as an expense against operations,and accumulated depreciation is reported on the
statement of net position. If the initial cost of a piece of equipment and/or other personal property is five thousand
dollars($5,000)or more and the anticipated life or useful value of said equipment or property is more than one(1)
year,the purchased property/equipment will be capitalized and recorded as non-expendable equipment and charged
as a capital expenditure.
The estimated useful lives for each major class of depreciable capital assets are as follows:
Buildings 40 years
Site improvements, modernization,and rehabilitation 7-40 years
Furniture, equipment, and vehicles 3-10 years
Unearned Revenues
Unearned revenues (included in other current liabilities) consist of$32,947 in rental payments made by tenants in
advance of their due date and emergency housing voucher administrative fees not yet earned.
Deferred Inflows/Outflows of Resources
In addition to assets,the statement of financial position will sometimes report a separate section for deferred outflows
of resources.This separate financial statement element,Deferred Outflows of Resources,represents a consumption of
net position that applies to a future period and so will not be recognized as an expense or expenditure until then.
11
Lansing Housing Commission
Notes to Financial Statements
For the Year Ended June 30, 2025
Also, 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, Deferred Inflows of Resources, represents an
acquisition of net position that applies to a future period and so will not be recognized as revenue until then.
Compensated Absences
The Commission allows employees to accumulate earned but unused paid time off.The Commission accrues a liability
for benefits attributable to services already rendered by the Commission's employees. Employees are entitled to a
specific amount of leave per month capped at 280 hours total. Upon separation from employment, employees are
entitled to receive pay for 100 percent of their accrued unused paid time off.
Pension
The Commission offers a defined benefit pension plan to its employees.The Commission records a net pension asset or
liability for the difference between the total pension asset or liability calculated by the actuary and the pension plan's
fiduciary net position. For the purpose of measuring the net pension asset or liability,deferred outflows of resources
and deferred inflows of resources related to pensions, and pension expense, information about the fiduciary net
position of the pension plan and additions to/deductions from the pension plan's fiduciary net position have been
determined on the same basis as they are reported by the pension plan.For this purpose,benefit payments(including
refunds of employee contributions) are recognized when due and payable in accordance with the benefit terms.
Investments are reported at fair value.
Other Postemployment Benefit Costs
The Commission provides retiree health care benefits to eligible employees and theirspouses.The Commission records
a net other postemployment benefit cost(OPEB)asset or liability for the difference between the total OPEB asset or
liability calculated by the actuary and the OPEB plan's fiduciary net position. For the purpose of measuring the net
OPEB asset or liability, deferred outflows of resources and deferred inflows of resources related to OPEB,and OPEB
expense, information about the fiduciary net position of the OPEB plan and additions to/deductions from the OPEB
plan's fiduciary net position have been determined on the same basis as they are reported by the OPEB plan.For this
purpose, benefit payments(including refunds of employee contributions) are recognized when due and payable in
accordance with the benefit terms. Investments are reported at fair value.
Use of Estimates
The preparation of financial statements in conformity with generally accepted accounting principles requires
management to make estimates and assumptions that affect the reported amounts of assets and liabilities and
disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of
revenue and expenses during the reporting period.Actual results could differ from those estimates.
12
Lansing Housing Commission
Notes to Financial Statements
For the Year Ended June 30, 2025
NOTE 02 - CASH AND CASH EQUIVALENTS
Cash and investments are stated at fair value and consist of the following:
Unrestricted
Checking&Money Market accounts $ 21,892,634
Subtotal 21,892,634
Restricted
Security deposits -tenants 14,940
Replacement reserves and escrows 269,707
Other restricted funds 529,743
Subtota 1 814,390
Total Cash&Equivalents $ 22,707,024
Unrestricted
Certificates of Deposit initial maturity over 90 days $ 2,284,185
Total Investments $ 2,284,185
Michigan Compiled Laws Section 129.91 (Public Act 20 of 1943,as amended)authorizes local governmental units to
make deposits and invest in the accounts of federally insured banks,credit unions, and savings and loan associations
that have offices in Michigan.The law also allows investments outside the state of Michigan when fully insured.The
local unit is allowed to invest in bonds,securities,and other direct obligations of the United States or any agency or
instrumentality of the United States,repurchase agreements,bankers'acceptances of United States banks,commercial
paper rated within the two highest classifications that matures no more than 270 days after the date of purchase,
obligations of the State of Michigan or its political subdivisions that are rated as investment grade,and mutual funds
composed of investment vehicles that are legal for direct investment by local units of government in Michigan.
The Commission has designated banks for the deposit of its funds. The investment policy adopted by the board in
accordance with Public Act 196 of 1997, has authorized investment in bonds and securities of the United States
government and bank accounts and CDs but not the remainder of state statutory authority, as listed above. The
Commission's deposits and investments are in accordance with statutory authority.
The Commission's cash and investments are subject to several types of risk,which are examined in more detail below:
Interest Rate Risk-Interest rate risk is the risk that the value of investments will decrease because of a rise in interest
rates.The Commission's investment policy does not restrict investment maturities otherthan commercial paper,which
can only be purchased with a 270-day maturity.
Custodial Credit Risk-The custodial risk is the risk that in the event of the failure of the counterparty,the Commission
will not be able to recover the value of its investments or collateral securities that are in the possession of an outside
party.The Commission has no policy on custodial credit risk.
Fair Value Measurements-The Commission categorizes its fair value measurements within the fair value hierarchy
established by generally accepted accounting principles. The hierarchy is based on the valuation inputs used to
measure the fair value of the asset.Level 1 inputs are quoted market prices in active markets for identical assets,Level
2 inputs are significant other observable inputs,and Level 3 inputs are significant unobservable inputs. Investments
that are measured at fair value using net asset value per share (or its equivalent) as a practical expedient are not
classified in the fair value hierarchy.
13
Lansing Housing Commission
Notes to Financial Statements
For the Year Ended June 30, 2025
In instances where inputs used to measure fairvalue fall into different levels in the above fairvalue hierarchy,fairvalue
measurements in their entirety are categorized based on the lowest level input that is significant to the valuation.The
Commission's assessment of the significance of particular inputs to these fair value measurements requires judgement
and considers factors specific to each asset or liability.
NOTE 03 -ACCOUNTS RECEIVABLE
Accounts receivable at the year ended June 30, 2025,consisted of the following:
Tenant receivables $ 12,028
Tenant fraud recovery receivables 224
Allowance for receivables (588)
Net receivable 11,664
Accrued interest income 216,258
Due from other governments 109,896
Miscellaneous receivables 102,700
Accounts Receivable,Net $ 440,518
NOTE 04- CAPITAL ASSETS
A summary of changes in capital assets were as follows:
Balance at Balance at
07/01/24 Additions Deletions 06/30/25
Capital assets not bei ng depreciated:
Land $ 968,800 $ 534,246 $ - $ 1,503,046
Construction in process - 105,131 (80,731) 24,400
Total capital assets not being depreciated 968,800 639,377 (80,731) 1,527,446
Capital assets being depreciated:
Buildings and improvements 7,597,816 180,196 (105,690) 7,672,322
Furniture and equipment 863,015 - (5,118) 857,897
Total capital assets being depreciated 8,460,831 180,196 (110,808) 8,530,219
Accumulated depreciation (5,153,052) (209,235) 110,808 (5,251,479)
Net capital assets being depreciated 3,307,779 (29,039) - 3,278,740
Capital Assets,Net $ 4,276,579 $ 610,338 $ (80,731) $ 4,806,186
For the year ended June 30,2025,the Commission reported depreciation expense of$209,235.During the fiscal year
ended June 30, 2025,the Commission experienced no losses or material impairments.
14
Lansing Housing Commission
Notes to Financial Statements
For the Year Ended June 30, 2025
NOTE 05 - NOTES RECEIVABLE
Notes receivable at June 30, 2025,consisted of the following:
Mount Vernon Park
The loan bears interest at 4.5%compounded annually.No principal or interest is due until
the loan matures on December 22, 2070. The note is secured by the land and substantially
all the real property owned by Mount Vernon Park.Thetotal amount of accrued interest has
been set up with an allowance for the same amount. $ 7,145,775
South Washington Park
The loan bears interest at 9.5%compounded annually.No principal or interest is due until
the loan matures on March 31, 2071. The note is secured by the land and substantially all
the real property owned by South Washington Park. The total amount of accrued interest
has been set up with an allowance for the same amount. 5,100,000
Hildebrandt Park
The loan bears interest at4.96%compounded annually.No principal or interest is due until
the loan matures on November 18, 2071.The note is secured by the land and substantially
all the real property owned by Hildebrandt Park.The total amount of accrued interest has
been set up with an allowance for the same amount. 5,037,425
LaRoy Froh
The loan bears interest at 4.59%compounded annually.No principal or interest is due until
the loan matures on March 17, 2072. The note is secured by the land and substantially all
the real property owned by La Roy Froh.The total amount of accrued interest has been set up
with an al Iowa nce for the same amount. 5,250,000
Grand Vista
The loan bears interest at 7% compounded annually. No principal or interest is due until
the loan matures on February 10, 2075. The note is secured by the land and substantially
all the real property owned by Grand Vista. The total amount of accrued interest has been
set up with an allowance for the same amount. 3,000,000
Riverview
The construction loan bears interest at 4.25% compounded annually. No principal or
interest is due until the loan matures on January 30, 2055.The note is secured by the land
and substantially all the real property owned by Riverview. The total amount of accrued
interest has been set up with an allowancefor the same amount. 6,840,000
Total Notes Receivable $ 32,373,200
NOTE 06 - NON-CURRENT LIABILITIES CHANGES
The following is a summary of the activity for non-current liabilities for the year ended June 30, 2025:
Balance at Balance at Due within
07/01/24 Additions Deletions 06/30/25 One Year
Compensated absences $ 88,800 $ 6,748 $ (18,194) $ 77,354 $ 11,603
Funds held in trust 52,060 - 17,610 69,670 -
Netpensionliability 659,351 (184,845) 474,506 -
Financial agreements payable 2,020,098 - (40,985) 1,979,113 44,446
Total $ 2,820,309 $ 6,748 $ (226,414) $ 2,600,643 $ 56,049
15
Lansing Housing Commission
Notes to Financial Statements
For the Year Ended June 30, 2025
NOTE 07 - LONG-TERM DEBT
The loan balances as of June 30,2025,are as follows:
Michigan State Housing Development Authority
Mortgage dated October 7, 2006, held by Michigan State Housing Development Authority
in the amount of$1,775,482. The mortgage bears interest at a rate of 5.5%. However, an
amount equal to 0.5 percent of interest is deferred until the mortgage principal balance is
paid in full. Monthly payments of principal and interest are required in the amount of
$8,961 through maturity on February 1, 2043. The note is secured by land and
substantially all property owned by Oliver Gardens, L.L.C. $ 1,281,821
HOME loan
HOME loan dated June 1, 2006, in the amount of$170,000.The loan is held by the City of
Lansing, Michigan, under the HOME Investments Partnership Program and bears interest
at a rate of 0.5 percent, compounded annually. Principal and interestare due on the loan
when it matures on December 31, 2041.The loan is secured by land and substantially all
property owned by Oliver Gardens, L.L.C. 170,000
Community Development Block Grant
Community Development Block Grant (CDBG) loan dated May 31, 2006, in the amount of
$550,000. The loan is held by the City of Lansing, Michigan under the CDBG program and
bears interest at a rate of 0.5 percent, compounded annually, on $150,000 of the loan.
Principal and interest are due on the loan when it matures on May 31, 2046. The loan is
secured by land and substantially all property owned by Oliver Gardens,L.L.C. 550,000
Unamortized loan costs related to Oliver Gardens,L.L.C. (22,708)
Total Financial Agreements Payable $ 1,979,113
As of the year ended June 30, 2025,the annual requirements for debt retirement are:
Year Ended June 30, Principal Interest Total
2026 $ 44,446 $ 62,828 $ 107,274
2027 46,720 60,555 107,275
2028 49,110 58,167 107,277
2029 51,623 55,817 107,440
2030 54,264 53,028 107,292
2031 2035 316,874 220,787 537,661
2036 2040 406,081 131,579 537,660
2041 2045 482,703 26,076 508,779
2046 2050 550,000 - 550,000
Amortization costs (22,708) - (22,708)
$ 1,979,113 $ 668,837 $ 2,647,950
The majority of the long-term debt on the discretely presented component units is related to the Notes Receivable.For
further details about discretely presented component units' debt,see those separately issued financial statements.
16
Lansing Housing Commission
Notes to Financial Statements
For the Year Ended June 30, 2025
NOTE 08 -AGENT DEFINED PENSION PLAN
Plan Description
Lansing Housing Commission participates in an agent multiple-employer defined benefit pension plan administered by
the Municipal Employees' Retirement System of Michigan (MERS)that covers some employees of the Commission.
MERS was established as a statewide public employee pension plan by the Michigan Legislature under PA 135 of 1945
and is administered by a nine-member retirement board. MERS issues a publicly available financial report, which
includes the financial statements and required supplementary information of this defined benefit plan.This report can
be obtained at http://www.mersofmichigan.com or in writing to MERS at 1134 Municipal Way, Lansing, MI 48917.
Benefits Provided
The plan provides certain retirement,disability,and death benefits to plan members and beneficiaries.PA 427 of 1984,
as amended,established and amends the benefit provisions of the participants in MERS.
The MERS plan covers employees in the general open division; employees hired after May 1, 2012; and exempt
employees hired before May 1,2012. Effective May 1,2021,the plan was closed to all new hires.
Retirement benefits for employees in the open general division are calculated as 2.25 percent of the employee's final 3-
year average salary times the employee's years of service. Normal retirement age is 60,with early retirement at 55
with 15 years of service.Early retirement age with reduced benefits is 50 with 25 years of service.The vesting period is
8 years. Employees are eligible for nonduty disability benefits after 8 years of service and for duty-related disability
benefits upon hire. Disability retirement benefits are determined in the same manner as retirement benefits but are
payable immediately without an actuarial reduction. Death benefits for a surviving spouse equal 85 percent of the
deceased member's accrued retirement allowance,computed in the same manner as a service retirement allowance,
based on service and final average compensation at the time of death.An employee who leaves service may withdraw
his or her contributions plus any accumulated interest.
Retirement benefits for employees hired after May 1, 2012,are calculated as 1.70 percent of the employee's final 3-
year average salary times the employee's years of service. Normal retirement age is 60. Early retirement age with
reduced benefits is at 50 with 25 years of service or 55 with 15 years of service. The vesting period is 8 years.
Employees are eligible for nonduty disability benefits after 8 years of service and for duty-related disability benefits
upon hire. Disability retirement benefits are determined in the same manner as retirement benefits but are payable
immediately without an actuarial reduction. Death benefits for a surviving spouse equal 85 percent of the deceased
member's accrued retirement allowance,computed in the same manner as a service retirement allowance,based on
service and final average compensation at the time of death.An employee who leaves service may withdraw his or her
contributions plus any accumulated interest.
Retirement benefits for exempt employees hired before May 1,2012,are calculated as 2.25 percent of the employee's
final 3-year average salary times the employee's years of service.Normal retirement age is 60,with early retirement at
55 with 15 years of service.Early retirement age with reduced benefits is 50 with 25 years of service.The vesting period
is 8 years.Employees are eligible for nonduty disability benefits after 8 years of service and for duty-related disability
benefits upon hire. Disability retirement benefits are determined in the same manner as retirement benefits but are
payable immediately without an actuarial reduction. Death benefits for a surviving spouse equal 85 percent of the
deceased member's accrued retirement allowance,computed in the same manner as a service retirement allowance,
based on service and final average compensation at the time of death.An employee who leaves service may withdraw
his or her contributions plus any accumulated interest.
Benefit terms provide for annual cost of living adjustmentsto each employee's retirement allowance subsequenttothe
employee's retirement date. The annual adjustments are 3 percent, non-compounding. Benefit terms, within the
parameters established by MERS,generally are established and amended by authority of the board of commissioners,
generally after negotiations of these terms with the affected unions. Benefit terms may be subject to binding
arbitration in certain circumstances.
17
Lansing Housing Commission
Notes to Financial Statements
For the Year Ended June 30, 2025
Employees Covered by Benefit Terms
At the December 31, 2024 measurement date,the following employees were covered by the benefit terms:
Inactive plan members or beneficiaries currently receiving benefits 47
Inactive employees entitled to but notyet receiving benefits (including refunds) 27
Active plan members 10
Total plan members 84
Contributions
Article 9, Section 24 of the State of Michigan constitution requires that financial benefits arising on account of
employee service rendered in each year be funded during that year.Accordingly,MERS retains an independent actuary
to determine the annual contribution.The employer is required to contribute amounts at least equal to the actuarially
determined rate, as established by the MERS retirement board. The actuarially determined rate is the estimated
amount necessary to finance the costs of benefits earned by plan members during the year,with an additional amount
to finance any unfunded accrued liability.The employer may establish contribution rates to be paid by its covered
employees.
For the plan year ended December 31,2024,the average employee contribution rate was 5.0 percent of annual pay for
all divisions, and the Commission's average contribution rate was 6 percent under the new hires division of annual
payroll.
Net Pension Liability
The Commission has chosen to use the December 31 measurement date as its measurement date for the net pension
liability.The June 30,2025,fiscal year end reported net pension liability was determined using a measure of the total
pension liability and the pension net position as of the December 31,2024 measurement date.The December 31,2024,
measurement date total pension liability was determined by an actuarial valuation performed as of that date.
Changes in the net pension (asset) liability during the measurement year were as follows:
Increase(Decrease)
Net Pension
Total Pension Plan Net (Asset)
Liability Position Liability
Beg. Balance December 31,2023 $ 10,508,003 $ 9,848,652 $ 659,351
Change for the year:
Service cost 65,057 - 65,057
Interest - - -
Changes to benefit terms 727,308 - 727,308
Experience differences 221,250 - 221,250
Changes in actuarial assumptions (21,054) - (21,054)
Contributions -employer - 436,766 (436,766)
Contributions -employee - 38,563 (38,563)
Net investment income(loss) - 723,423 (723,423)
Benefit payments,including refunds (821,797) (821,797) -
Administrative expense - (21,346) 21,346
Net changes 170,764 355,609 (184,845)
Ending Balance $ 10,678,767 $ 10,204,261 $ 474,506
The plan's fiduciary net position represents 95.5 percent of the total pension liability.
18
Lansing Housing Commission
Notes to Financial Statements
For the Year Ended June 30, 2025
Pension Expense and Deferred Outflows of Resources and Deferred Inflows of Resources Related to Pensions
For the year ended June 30, 2025,the Commission recognized pension expense of$383,079.At June 30, 2025,the
Commission reported deferred outflows of resources and deferred inflows of resources related to pensions from the
following sources:
Deferred Deferred
Outflows Inflows
of Resources of Resources
Net difference between projected and actual earnings on retirement
plan investments $ 420,340 $ -
Contributions subsequent to the measurement date 52,986 -
Totals $ 473,326 $ -
Amounts reported as deferred outflows of resources and deferred inflows of resources related to pensions will be
recognized in pension expense as follows.These amounts are exclusive of the employer contributions to the plan made
subsequent to the measurement date, which will impact the net pension liability in fiscal year 2026, rather than
pension expense.
Actuarial Assumptions
The total pension liability in the December 31,2024 actuarial valuation,was determined using an inflation assumption
of 2.5 percent, assumed salary increases of 3 percent(in the long term, plus a merit and longevity increase ranging
from 0 to 6.7 percent),and an investment rate of return (net of pension plan investment expenses)of 6.18 percent.
The valuation incorporates fully generational mortality.The base mortality tables used are constructed as described
below and are weighted based on sex-distinct rates:
Preretirement mortality:
• 100 percent of Pub-2010 Juvenile Mortality Tables for Ages 0-17
• 100 percent of PubG-2010 Employee Mortality Tables for Ages 18-80
• 100 percent of PubG-2010 Healthy Retiree Tables for Ages 81-120
Nondisabled retired plan members and beneficiaries:
• 106 percent of Pub-2010 Juvenile Mortality Tables for Ages 0-17
• 106 percent of PubG-2010 Employee Mortality Tables for Ages 18-49
• 106 percent of PubG-2010 Healthy Retiree Tables for Ages 50-120
Disabled retired plan members:
• 100 percent of Pub-2010 Juvenile Mortality Tables for Ages 0-17
• 100 percent of PubNS-2010 Disabled Retiree Tables for Ages 18-120
Future mortality improvements are assumed each year using scale MP-2019 applied fully generationallyfrom the Pub-
2010 base year of 2010.The actuarial assumptions used in the December 31,2024 valuation,were based on the results
of an actuarial experience study dated February 14, 2020.
Discount Rate
The discount rate used to measure the total pension liability was 7.18 percent.The projection of cash flows used to
determine the discount rate assumed that employee contributions will be made at the current contribution rate and
that employer contributions will be made at rates equal to the difference between actuarially determined contribution
rates and the employee rate.
19
Lansing Housing Commission
Notes to Financial Statements
For the Year Ended June 30, 2025
Investment Rate of Return
Based on those assumptions, the pension plan's fiduciary net position was projected to be available to make all
projected future benefit payments of current active and inactive employees.Therefore,the long-term expected rate of
return on pension plan investments was applied to all periods of projected benefit payments to determine the total
pension asset.
The long-term expected rate of return on pension plan investments of 7.18 percent was determined using a model in
which best-estimate ranges of expected future real rates of return(expected returns,net of pension plan investment
expense and inflation)are developed for each major asset class.These ranges are combined to produce the long-term
expected rate of return by weighing the expected future real rates of return by the target asset allocation percentage
and by adding expected inflation. The target allocation and best estimates of arithmetic real rates of return as of
December 31,2024,the measurement date,for each major asset class,are summarized in the following tables:
Long-Term
Target Asset Expected Real
Asset Class Allocation Rate of Return
Global equity 60.0% 4.50%
Global fixed income 20.0% 2.00%
Private investment 20.0% 7.00%
Total 100.0%
Sensitivity of the Net Pension Liability to Changes in the Discount Rate
The following presents the net pension liability of the Commission,calculated using the discount rate of 7.18 percent,
as well as what the Commission's net pension liability would be if it were calculated using a discount rate that is 1
percentage point lower(6.18 percent)or 1 percentage point higher(8.18 percent)than the current rate:
Current
1%Decrease Discount Rate 1%Increase
(6.18%) (7.18%) (8.18%)
Net pension (asset) liability $ 1,076,650 $ - $ (918,971)
Pension Plan Fiduciary Net Position
Detailed information about the plan's fiduciary net position is available in the separately issued financial report.Forthe
purpose of measuring the net pension asset or liability, deferred outflows of resources and deferred inflows of
resources related to pensions,and pension expense,information about the plan's fiduciary net position and additions
to/deductions from fiduciary net position have been determined on the same basis as they are reported by the plan.
The plan uses the economic resources measurement focus and the full accrual basis of accounting. Investments are
stated at fair value.Contribution revenue is recorded as contributions are due,pursuant to legal requirements.Benefit
payments and refunds of employee contributions are recognized as expense when due and payable in accordance with
the benefit terms.
20
Lansing Housing Commission
Notes to Financial Statements
For the Year Ended June 30, 2025
NOTE 09 - OTHER POSTEMPLOYMENT BENEFITS PLAN (OPEB)
Plan Description
The Commission provides retiree health care benefits to eligible employees and theirspouses.This is a single-employer
defined benefit plan administered by the Commission and is provided under a separate collective bargaining
agreement on health care.The plan does not issue a publicly available financial report.
Benefits Provided
The plan provides comprehensive medical and life insurance for retirees. For those retirees over the age of 65 as of
January 1,2019,both the retiree and spouse may be covered in retirement.Health,dental,and vision benefits will be
administered through a third-party insurer,with each retiree given$100 per month ($200 per month if the spouse is
eligible for coverage) to purchase an individual Medicare Supplement, Medicare Part D Prescription Drug, and
Medicare Advantage plan,along with dental and vision plans. For those retirees under the age of 65 as of January 1,
2019,each retiree will be given$750 per month($1,200 per month if the spouse is eligible for coverage)to purchase a
plan of their choosing along with dental and vision. For active employees hired prior to January 1, 2019, the
Commission will contribute$50 per month per employee,while a payroll deduction will be required of each employee
of$10 per month. Both amounts will be deposited into the MERS Health Care Savings Program. Employees will be
vested into the heath retirement account after eight years of service.Prior to vesting,employees leaving employment
will immediately be allowed to keep and use their personal contributions plus investment gains on their health
account.The Commission's portion will be returned for use in satisfying other OPEB liabilities.After vesting,the entire
health account is available for the employee's use for medical expenses upon retirement or termination of
employment. Employees hired after January 1,2019,will not be provided OPEB benefits.
Employees Covered by Benefit Terms
The following members were covered by the benefit terms:
Date of member count July 01,2024
Inactive plan members 15
Active plan members 9
Total plan members 24
Contributions
The authority to establish and amend the contribution requirements of the Commission and plan members is held by
the board of commissioners. The board of commissioners establishes contribution rates based on an actuarially
determined rate per a funding valuation.The actuarially determined contribution for the year ended June 30, 2025,
was$3,868. Retiree health care costs are paid by the Commission on a pay-as-you-go basis.
Net OPEB Asset
The Commission has chosen to use the June 30 measurement date as its measurement date for the net OPEB asset.
The June 30,2025 fiscal year end,reported net OPEB asset was determined using an actuarial valuation performed as
of July 01,2024,which used update procedures to roll forward the estimated assetto the June 30,2025,measurement
date.
21
Lansing Housing Commission
Notes to Financial Statements
For the Year Ended June 30, 2025
Changes in the net OPEB asset during the measurement year were as follows:
Increase(Decrease)
Total OPEB Plan Net Net OPEB
Liability Position (Asset)
Beg. Balance June 30,2024 $ 258,858 $ 424,166 $ (165,308)
Change for the year:
Service cost 3,869 - 3,869
Interest on total OPEB 15,841 - 15,841
Change in assumptions (1,822) - (1,822)
Difference between actual and expected experience - -
Contributions -employer - 38,303 (38,303)
Net investment income - 3,268 (3,268)
Benefit payments,including refunds (40,918) (40,918)Net changes (23,030) 653 (23,683)
Ending Balance $ 235,828 $ 424,819 $ (188,991)
The plan's fiduciary net position represents 180 percent of the total OPEB liability.
OPEB Expense and Deferred Outflows of Resources and Deferred Inflows of Resources Related to OPEB
For the year ended June 30, 2025, the Commission recognized OPEB recovery of $4,677. At June 30, 2025, the
Commission reported deferred outflows of resources and deferred inflows of resources related to OPEB from the
following sources:
Deferred Deferred
Outflows Inflows
of Resources of Resources
Difference between expected and actual experience $ - $ (25,025)
Net difference between projected and actual - (6,532)
Change of assumptions 9,497 (3,446)
Totals $ 9,497 $ (35,003)
Amounts reported as deferred outflows of resources and deferred inflows of resources related to OPEB will be
recognized in OPEB expense as follows:
Years Ending June 30, Amount
2026 $ (6,534)
2027 (8,224)
2028 (8,019)
2029 (2,729)
2030 -
Total $ (25,506)
22
Lansing Housing Commission
Notes to Financial Statements
For the Year Ended June 30, 2025
Actuarial Assumptions
The total OPEB liability was determined by an actuarial valuation as of July 01,2024.The valuation used the following
actuarial assumptions,applied to all periods included in the measurement, unless otherwise specified:
Inflation: 2.5 percent as of June 30,2025,and for future periods.
Cost ofIiving: Not Applicable
Salary increases: 3.00 percent annually as of June 30,2025,and for future periods.
Mortality: PubG-2010 Mortality Table for General Healthy Annuitants projected generationally
with scale MP-2020 for males and females.
The actuarial assumptions used to calculate the actuarial accrued asset,and the service cost primarily reflectthe latest
experience studies published by the Society of Actuaries.As such, mortality assumptions reflected observed current
mortality and expected mortality improvements.
Discount Rate
The discount rate used to measure the total OPEB liability was 6.68 percent. The projection of cash flows used to
determine the discount rate assumed that employee contributions will be made at the current contribution rate and
that commission contributions will be made at rates equal to the difference between actuarially determined
contribution rates and the employee rate.
Based on those assumptions,the OPEB plan's fiduciary net position was projected to be available to make all projected
future benefit payments of current active and inactive employees.Therefore,the long-term expected rate of return on
OPEB plan investments was applied to all periods of projected benefit payments to determine the total OPEB asset.
Investment Rate of Return
The investment rate of return was assumed to be 6.68 percent, net of OPEB plan investment expense, including
inflation. The long-term expected rate of return on OPEB plan investments was determined using a building-block
method in which best-estimate ranges of expected future real rates of return (expected returns, net of OPEB plan
investment expense and inflation)are developed for each major asset class.These ranges are combined to produce the
long-term expected rate of return by weighing the expected future real rates of return by the target asset allocation
percentage and adding expected inflation. Best estimates of arithmetic real rates of return as of the June 30, 2025
measurement date,for each major asset class included in the OPEB plan's target asset allocation are summarized in the
following table:
Long-Term
Target Asset Expected Real
Asset Class Allocation Rate of Return
Domestic equity-large cap 15.50% 4.52%
Domestic equity-small/mid cap 7.75% 5.06%
Domestic fixed income 22.00% 2.44%
International equity-developed market 15.50% 5.08%
International equity-emerging market 8.00% 5.80%
International fixed income 4.25% 2.13%
Alternatives 24.00% 6.09%
Real estate 0.00% 3.73%
Cash or cash equivalents 3.00% 0.00%
Total 100.00%
23
Lansing Housing Commission
Notes to Financial Statements
For the Year Ended June 30, 2025
Sensitivity of the Net OPEB Asset to Changes in the Discount Rate
The following presents the net OPEB asset of the Commission, calculated using the discount rate of 6.38 percent,
depending on the plan option.The following also reflects what the Commission's net OPEB asset would be if it were
calculated using a discount rate that is 1 percentage point lower(5.68 percent) or 1 percentage point higher (7.68
percent)than the current rate:
Current
1%Decrease Discount Rate 1%Increase
Net OPEB(asset) liability $ (201,883) $ (188,991) $ (174,451)
Sensitivity of the Net OPEB Asset to Changes in the Health Care Cost Trend Rate
The following presents the net OPEB asset of the Commission,calculated using the health care cost trend rate of 3.5
percent,as well as what the Commission's net OPEB asset would be if it were calculated using a health care cost trend
rate that is 1 percentage point lower or 1 percentage point higher than the current rate:
Current Health
1%Decrease Care Cost Trend 1%Increase
Net OPEB(asset) liability $ (175,302) $ (188,991) $ (200,997)
Assumption Changes
The discount rate has been changed from 6.53 percent in 2024,to 6.68 percent.
NOTE 10- CONCENTRATIONS, COMMITMENTS AND CONTINGENCIES
The Commission operates in a heavily regulated environment.The operations of the Commission are subject to the
administrative directives, rules, and regulations of federal, state, and local regulatory agencies, including, but not
limited to,HUD.Such administrative directives,rules,and regulations are subject to change by an Act of Congress,or
an administrative change mandated by HUD.Such changes may occur with little notice or inadequate funding to pay
forthe related costs and the additional administrative burden to comply with the changes.Forthe year ended June 30,
2025, approximately 90 percent of the operating revenue reflected in the primary government basic financial
statements is from HUD.
The Commission receives financial assistance from federal and state agencies in the form of grants.The disbursement
of funds received under these programs generally requires compliance with the terms and conditions specified in the
grant agreements and is subject to audit by the grantor agencies.Any disallowed claims resulting from such audits
could become a liability of the Commission. However,in the opinion of management,any such disallowed claims will
not have a material adverse effect on the overall financial position of the Commission at the June 30, 2025 year-end.
The collective bargaining three-year agreement between the Commission's employees and Chapter of Local 1390.11
and Michigan Council#25,AFSCME,AFL-CIO,covering approximately 31 percent of the Commission's laborforce,will
be in place from January 1,2022,through December 31, 2025.
NOTE 11 - RISK MANAGEMENT
The Commission is exposed to various risks of loss related to property loss,torts,errors and omissions,and employee
injuries(workers'compensation),as well as medical benefits provided to employees.The Commission has purchased
commercial insurance for all risk of loss,including workers'compensation,employee health,and accident insurance.
Settled claims relating to the commercial insurance have not exceeded the amount of insurance coverage in anyof the
past three fiscal years.
24
Lansing Housing Commission
Notes to Financial Statements
For the Year Ended June 30, 2025
NOTE 12 - CONDENSED FINANCIAL STATEMENTS
As required by GASB the condensed financial statements with elimination, for additional information see the detail
supplementary information schedules.
Total Blended Primary
Housing Component Government
Authority Units Eliminations Totals
Condensed Statement of Net Position
Current assets $ 25,577,596 $ 300,679 $ (422,561) $ 25,455,714
Capital assets 3,024,468 1,781,718 - 4,806,186
Other assets 33,273,942 - (711,751) 32,562,191
Total Assets 61,876,006 2,082,397 (1,134,312) 62,824,091
Deferred outflow of resources 482,823 - - 482,823
Current liabilities 3,349,740 1,030,695 (834,179) 3,546,256
Noncurrent liabilities 595,676 2,249,051 (300,133) 2,544,594
Total Liabilities 3,945,416 3,279,746 (1,134,312) 6,090,850
Deferred inflow of resources 35,003 - - 35,003
Net investment in capital assets 3,024,468 (197,395) - 2,827,073
Restricted net position 619,633 269,707 - 889,340
Unrestricted net position 54,734,309 (1,269,661) - 53,464,648
Net Position $ 58,378,410 $ (1,197,349) $ - $ 57,181,061
Condensed Statement of Revenues, Expenses and Changes in Net Position
Operating revenues $ 29,777,307 $ 994,188 $ (1,431,342) $ 29,340,153
Depreciation expense (144,269) (64,966) - (209,235)
Other operating expenses (26,250,246) (774,519) 1,431,342 (25,593,423)
Operating Income(Loss) 3,382,792 154,703 - 3,537,495
Non-operating revenues 1,135,411 10,041 - 1,145,452
Non-operating expenses - (78,205) - (78,205)
Non-Operating Revenue(Expense) 1,135,411 (68,164) - 1,067,247
Income(Loss) Before Transfers and Capital
Contributions 4,518,203 86,539 - 4,604,742
Transfers - - - -
Capital contributions 80,731 - - 80,731
Change in Net Position 4,598,934 86,539 - 4,685,473
Net position, beginning of year 53,779,476 (1,283,888) - 52,495,588
Net position,end of year $ 58,378,410 $ (1,197,349) $ - $ 57,181,061
Condensed Statement of Cash Flows
Net cash flows provided/(used) by operating activities $ 4,370,651 $ 259,003 $ - $ 4,629,654
Net cash flows provided/(used) by capital and related
financing activities 138,382 (314,538) - (176,156)
Net cash flows provided/(used) by investing activities 10,711,091 10,040 - 10,721,131
Net increase/(decrease) in cash and cash equivalents 15,220,124 (45,495) - 15,174,629
Cash, beginning of year 7,211,074 321,321 - 7,532,395
Cash,end of year $ 22,431,198 $ 275,826 $ - $ 22,707,024
25
Lansing Housing Commission
Notes to Financial Statements
For the Year Ended June 30, 2025
NOTE 13 - NET POSITION
The net position on the statement of net position has been calculated as follows:
Capital assets $ 4,806,186
Related debt (1,979,113)
Net Investment in Capital Assets $ 2,827,073
Restricted cash $ 814,390
OPEB assets 188,991
FSS escrow liability (69,670)
Unearned emergency housing voucher fees (29,431)
Security deposit liability (14,940)
Restricted Net Position $ 889,340
NOTE 14 - SUBSEQUENT EVENTS
Events that occur after the statement of net position date but before the financial statements were available to be
issued must be evaluated for recognition or disclosure.Management evaluated the activityof the Commission through
December 8,2025,(the date the financial statements were available to be issued)and concluded that nothing should
be disclosed to the reader of the financial statements.
Section Intentionally Left Blank
26
Lansing Housing Commission
RSI 10-Year History of Changes in Net Pension (Asset) Liability and Related Ratios
For the Year Ended June 30, 2025
Fiscal Year Ending 2024 2023 2022 2021 2020
Total Pension Liability
Service costs $ 65,057 $ 57,807 $ 66,697 $ 67,211 $ 88,143
Interest 727,308 725,958 721,263 724,852 692,942
Difference between expected and actual experience 221,250 71,949 92,195 86,049 143,224
Change in assumptions (21,054) 68,639 - 339,299 291,056
Benefit payments, including refunds (821,797) (801,290) (820,649) (791,808) (778,229)
Other - - - - -
Net Change in Total Pension Liability 170,764 123,063 59,506 425,603 437,136
Total Pension Liability-Beginning 10,508,003 10,384,940 10,325,434 9,899,831 9,462,695
Total Pension Liability-Ending(a) $ 10,678,767 $ 10,508,003 $ 10,384,940 $ 10,325,434 $ 9,899,831
Plan Fiduciary Net Position
Contribution-employer $ 436,766 $ 935,657 $ 207,840 $ 1,377,653 $ 122,635
Contribution-member 38,563 41,797 44,561 57,081 64,814
Net investment income(loss) 723,423 976,872 (1,146,251) 1,205,976 1,074,111
Administrative expenses (821,797) (801,290) (820,649) (14,305) (15,919)
Benefit payments, including refunds (21,346) (20,143) (18,712) (791,808) (778,229)
Other - - - - -
Net Change in Plan Fiduciary Position 355,609 1,132,893 (1,733,211) 1,834,597 467,412
Plan Fiduciary Net Position-Beginning 9,848,652 8,715,759 10,448,970 8,614,373 8,146,961
Plan Fiduciary Net Position-Ending(b) $ 10,204,261 $ 9,848,652 $ 8,715,759 $ 10,448,970 $ 8,614,373
Net Pension(Asset) Liability-Ending(a)-(b) $ 474,506 $ 659,351 $ 1,669,181 $ (123,536) $ 1,285,458
Plan Fiduciary Net Position as a Percentage of Total Pension
(Asset)Liability 95.56% 93.73% 83.93% 101.20% 87.02%
Covered-Employee Payroll $ 822,760 $ 726,372 $ 845,947 $ 929,286 $ 1,280,845
Net Pension(Asset) Liability as a%of Covered-Employee Payroll 57.67% 90.77% 197.32% -13.29% 100.36%
*This is a 10-year schedule;however,the information in this schedule is not required to be presented retroactively.Years will be added to this schedule in future fiscal years.
See auditors'report on required supplementary information 27
Lansing Housing Commission
RSI 10-Year History of Changes in Net Pension (Asset) Liability and Related Ratios
For the Year Ended June 30, 2025
Fiscal Year Ending 2019 2018 2017 2016 2015
Total Pension Liability
Service costs $ 74,380 $ 72,132 $ 91,117 $ 126,678 $ 114,272
Interest 708,880 700,146 687,782 714,076 698,614
Difference between expected and actual experience (67,609) 77,954 88,563 (140,946) (123,435)
Change in assumptions 315,446 - - (349,397) 405,966
Benefit payments, including refunds (784,425) (701,709) (661,395) (651,805) (635,102)
Other - (21,160) (4,268) (521) -
Net Change in Total Pension Liability 246,672 127,363 201,799 (301,915) 460,315
Total Pension Liability-Beginning 9,216,023 9,088,660 8,886,861 9,188,776 8,728,461
Total Pension Liability-Ending(a) $ 9,462,695 $ 9,216,023 $ 9,088,660 $ 8,886,861 $ 9,188,776
Plan Fiduciary Net Position
Contribution-employer $ 87,890 $ 145,613 $ 685,378 $ 693,689 $ 158,735
Contribution-member 58,282 62,196 70,951 67,424 55,586
Net investment income(loss) 1,025,515 (323,275) 1,035,066 743,039 (104,348)
Administrative expenses (17,645) (16,423) (16,381) (14,686) (15,480)
Benefit payments, including refunds (755,797) (701,709) (661,395) (651,805) (635,102)
Other (28,628) (22,040) (4,445) (521)Net Change in Plan Fiduciary Position 369,617 (855,638) 1,109,174 837,140 (540,609)
Plan Fiduciary Net Position-Beginning 7,777,344 8,632,982 7,523,808 6,686,668 7,227,277
Plan Fiduciary Net Position-Ending(b) $ 8,146,961 $ 7,777,344 $ 8,632,982 $ 7,523,808 $ 6,686,668
Net Pension(Asset) Liability-Ending(a)-(b) $ 1,315,734 $ 1,438,679 $ 455,678 $ 1,363,053 $ 2,502,108
Plan Fiduciary Net Position as a Percentage of Total Pension
(Asset)Liability 86.10% 84.39% 94.99% 84.66% 72.77%
Covered-Employee Payroll $ 1,104,246 $ 1,072,020 $ 1,304,971 $ 1,333,333 $ 1,235,367
Plan Fiduciary Net Position 119.15% 134.20% 34.92% 102.23% 202.54%
*This is a 10-year schedule;however,the information in this schedule is not required to be presented retroactively.Years will be added to this schedule in future fiscal years.
See auditors'report on required supplementary information 28
Lansing Housing Commission
RSI 10-Year History of Pension Contributions
For the Year Ended June 30, 2025
Fiscal Year Ending 2025 2024 2023 2022 2021
Actuarially determined contribution $ - $ 112,512 $ 188,184 $ 135,216 $ 222,240
Contributions in relation to the actuarially determined contribution - (867,965) (213,027) (198,853) (1,357,471)
Contribution (excess)deficiency $ - $ (755,453) $ (24,843) $ (63,637) $ (1,135,231)
Covered-Employee Payroll $ - $ 822,760 $ 726,372 $ 845,947 $ 929,286
Contribution as a Percentage of Covered Payroll 0.00% 105.49% 29.33% 23.51% 146.08%
Fiscal Year Ending 2020 2019 2018 2017 2016
Actuarially determined contribution $ 80,707 $ 97,665 $ 133,299 $ 122,057 $ 103,079
Contributions in relation to the actuarially determined contribution (80,707) (145,613) (685,378) (693,689) (158,735)
Contribution (excess)deficiency $ - $ (47,948) $ (552,079) $ (571,632) $ (55,656)
Covered-Employee Payroll $ 1,280,845 $ 1,104,246 $ 1,072,020 $ 1,304,971 $ 1,333,333
Contribution as a Percentage of Covered Payroll 6.30% 13.19% 63.93% 53.16% 11.91%
*This is a 10-year schedule;however,the information in this schedule is not required to be presented retroactively.Years will be added to this schedule in future fiscal years.
Notes to Schedules
None.
See auditors'report on required supplementary information 29
Lansing Housing Commission
RSI 10-Year History of Changes in Net OPEB(Asset) Liability and Related Ratios
For the Year Ended June 30, 2025
Fiscal Year Ending 2026 2025 2024 2023 2022
Total OPEB Liability
Service costs $ - $ 3,868 $ 4,702 $ 5,070 $ 8,268
Interest - 15,841 17,505 19,381 25,416
Changes of benefit terms - - - - (105,031)
Difference between expected and actual experience - (26,801) - (44,716)
Change in assumptions - (1,822) 14,383 2,158 (9,941)
Benefit payments, including refunds - (40,918) (40,577) (56,502) (59,885)
Net Change in Total OPEB Liability - (23,031) (30,788) (29,893) (185,889)
Total OPEB Liability-Beginning - 258,858 289,646 319,539 505,428
Total OPEB Liability-Ending(a) $ - $ 235,827 $ 258,858 $ 289,646 $ 319,539
Plan Fiduciary Net Position
Contribution-employer $ - $ 3,268 $ (39,823) $ 61,179 $ 71,301
Net investment income(loss) - 38,303 41,113 31,225 (39,197)
Benefit payments, including refunds - (40,918) (40,577) (56,502) (59,885)
Net Change in Plan Fiduciary Position - 653 (39,287) 35,902 (27,781)
Plan Fiduciary Net Position-Beginning - 424,166 463,453 427,551 455,332
Plan Fiduciary Net Position-Ending(b) $ - $ 424,819 $ 424,166 $ 463,453 $ 427,551
Net OPEB Liability-Ending(a)-(b) $ - $ (188,992) $ (165,308) $ (173,807) $ (108,012)
Plan Fiduciary Net Position as a Percentage of Total OPEB Liability 0.00% 180.14% 163.86% 160.01% 133.80%
Covered-Employee Payroll $ - $ 629,808 $ 610,808 $ 672,266 $ 652,685
Net OPEB Liability as a%of Covered-Employee Payroll 0.00% -30.01% -27.06% -25.85% -16.55%
*This is a 10-year schedule;however,the information in this schedule is not required to be presented retroactively.Years will be added to this schedule in future fiscal years.
See auditors'report on required supplementary information 30
Lansing Housing Commission
RSI 10-Year History of Changes in Net OPEB(Asset) Liability and Related Ratios
For the Year Ended June 30, 2025
Fiscal Year Ending 2021 2020 2019 2018 2017
Total OPEB Liability
Service costs $ 8,907 $ 9,427 $ 11,298 $ 53,470 $ 50,924
Interest 28,075 23,121 49,023 59,951 58,429
Changes of benefit terms - - (882,057) - -
Difference between expected and actual experience - (157,076) 141,256 -
Change in assumptions 8,667 (124,117) (118,162) -
Benefit payments, including refunds (82,435) (80,400) (201,577) (65,682) (64,552)
Net Change in Total OPEB Liability (36,786) (329,045) (1,000,219) 47,739 44,801
Total OPEB Liability-Beginning 542,214 871,259 1,871,478 1,823,739 1,778,938
Total OPEB Liability-Ending(a) $ 505,428 $ 542,214 $ 871,259 $ 1,871,478 $ 1,823,739
Plan Fiduciary Net Position
Contribution-employer $ 82,435 $ 470,742 $ - $ - $ -
Net investment income(loss) 63,752 1,238 - - -
Benefit payments, including refunds (82,435) (80,400) - - -
Net Change in Plan Fiduciary Position 63,752 391,580 - - -
Plan Fiduciary Net Position-Beginning 391,580 - - - -
Plan Fiduciary Net Position-Ending(b) $ 455,332 $ 391,580 $ - $ - $ -
Net OPEB Liability-Ending(a)-(b) $ 50,096 $ 150,634 $ 871,259 $ 1,871,478 $ 1,823,739
Plan Fiduciary Net Position as a Percentage of Total OPEB Liability 90.09% 72.22% 0.00% 0.00% 0.00%
Covered-Employee Payroll $ 918,208 $ 891,464 $ 2,452,554 $ 2,381,121 $ 2,311,768
Plan Fiduciary Net Position as a Percentage of Total OPEB Liability 5.46% 16.90% 35.52% 78.60% 78.89%
*This is a 10-year schedule;however,the information in this schedule is not required to be presented retroactively.Years will be added to this schedule in future fiscal years.
See auditors'report on required supplementary information 31
Lansing Housing Commission
RSI 10-Year History of OPEB Contributions
For the Year Ended June 30, 2025
Fiscal Year Ending 2026 2025 2024 2023 2022
Actuarially determined contribution $ - $ 3,868 $ 4,702 $ 5,070 $ 8,268
Contributions in relation to the actuarially determined contribution - (3,268) 39,823 (61,179) (71,301)
Contribution (excess)deficiency $ - $ 600 $ 44,525 $ (56,109) $ (63,033)
Covered-Employee Payroll $ - $ 629,808 $ 610,808 $ 672,266 $ 652,685
Contribution as a Percentage of Covered Payroll 0.00% 0.52% -6.52% 9.10% 10.92%
Fiscal Year Ending 2021 2020 2019 2018 2017
Actuarially determined contribution $ 11,151 $ 19,251 $ 53,173 $ 148,959 $ 143,977
Contributions in relation to the actuarially determined contribution (82,435) (470,742) (201,577) (65,682) (64,552)
Contribution (excess)deficiency $ (71,284) $ (451,491) $ (148,404) $ 83,277 $ 79,425
Covered-Employee Payroll $ 918,208 $ 891,464 $ 2,452,554 $ 2,381,121 $ 2,311,768
Contribution as a Percentage of Covered Payroll 8.98% 52.81% 8.22% 2.76% 2.79%
*This is a 10-year schedule;however,the information in this schedule is not required to be presented retroactively.Years will be added to this schedule in future fiscal years.
Notes to Schedules
None.
See auditors'report on required supplementary information 32
Lansing Housing Commission
Combining Statement of Net Position-Business Activities
June 30,2025
Blended Component Units
Capital City Primary
Housing Oliver Property Government
ASSETS Authority Gardens Management Eliminations Total
Current Assets
Cash and cash equivalents
Unrestricted $ 21,891,650 $ 984 $ $ $ 21,892,634
Restricted 539,548 274,842 814,390
Subtotal 22,431,198 275,826 - - 22,707,024
Certificates of Deposit 2,284,185 - 2,284,185
Accounts receivable, net 604,375 6,143 (170,000) 440,518
Prepaid expenses 18,356 4,995 636 23,987
Interfund due from 239,482 - 13,079 (252,561) -
Total Current Assets 25,577,596 286,964 13,715 (422,561) 25,455,714
Non-Current Assets
Notes receivable 33,084,951 - - (711,751) 32,373,200
OPEB plan assets 188,991 188,991
Other assets - - -
Capital assets not being depreciated 842,284 685,162 - 1,527,446
Capital assets, net 2,182,184 1,096,556 3,278,740
Total Non-Current Assets 36,298,410 1,781,718 - (711,751) 37,368,377
TOTAL ASSETS 61,876,006 2,068,682 13,715 (1,134,312) 62,824,091
DEFERRED OUTFLOWS OF RESOURCES 482,823 - - - 482,823
See notes to financial statements 33
Lansing Housing Commission
Combining Statement of Net Position-Business Activities
June 30,2025
Blended Component Units
Capital City Primary
Housing Oliver Property Government
LIABILITIES Authority Gardens Management Eliminations Total
Current Liabilities
Accounts payable 26,824 154,309 1,473 182,606
Accrued liabilities 30,040 96,441 7,973 134,454
Deposits held in trust 9,805 5,135 - 14,940
Compensated absences current 9,088 - 2,515 11,603
Unearned revenue 31,445 1,502 - 32,947
Other liabilities current 2,989,977 716,901 (581,618) 3,125,260
Financial agreements payable current - 44,446 44,446
Interfund due to 252,561 - - (252,561) -
Total Current Liabilities 3,349,740 1,018,734 11,961 (834,179) 3,546,256
Non-Current Liabilities
Compensated absences 51,500 - 14,251 65,751
Funds held in trust 69,670 - 69,670
Net pension liability 474,506 - 474,506
Financial agreements payable - 2,234,800 (300,133) 1,934,667
Total Non-Current Liabilities 595,676 2,234,800 14,251 (300,133) 2,544,594
TOTAL LIABILITIES 3,945,416 3,253,534 26,212 (1,134,312) 6,090,850
DEFERRED INFLOWS OF RESOURCES 35,003 - - - 35,003
NET POSITION
Net investment in capital assets 3,024,468 (197,395) 2,827,073
Restricted 619,633 269,707 889,340
Unrestricted 54,734,309 (1,257,164) (12,497) 53,464,648
TOTAL NET POSITION $ 58,378,410 $ (1,184,852) $ (12,497) $ - $ 57,181,061
See notes to financial statements 34
Lansing Housing Commission
Combining Statement of Revenues, Expenses,and Changes in Net Position-Business Activities
For the Year Ended June 30, 2025
Blended Component Units
Capital City Primary
Housing Oliver Property Government
Authority Gardens Management Eliminations Total
Operating Revenues
Rental revenues, net $ 116,115 $ 83,368 $ - $ - $ 199,483
Government grants 27,167,212 200,345 - - 27,367,557
Other income 2,493,980 1,656 708,819 (1,431,342) 1,773,113
Total Operating Revenues 29,777,307 285,369 708,819 (1,431,342) 29,340,153
Operating Expenses
Administration 4,436,779 58,401 291,212 (1,431,342) 3,355,050
Tenant services 69,810 - - - 69,810
Utilities 132,430 87,107 - - 219,537
Maintenance and operations 1,329,607 55,812 234,850 - 1,620,269
Protective services 1,190 - - - 1,190
Insurance expense 112,949 19,413 8,139 - 140,501
General expense 2,654 19,585 - - 22,239
Housing Assistance Payments 20,164,827 - - - 20,164,827
Depreciation and amortization 144,269 64,966 - - 209,235
Total Operating Expenses 26,394,515 305,284 534,201 (1,431,342) 25,802,658
OPERATING INCOME(LOSS) 3,382,792 (19,915) 174,618 - 3,537,495
Non-Operating Revenues(Expenses)
Interest income 534,266 10,041 - - 544,307
Gain on disposal of assets 601,145 - - - 601,145
Interest expense - (78,205) - - (78,205)
Total Non-Operating Revenues(Expenses) 1,135,411 (68,164) - - 1,067,247
INCOME(LOSS)BEFORE CAPITAL CONTRIBUTIONS AND TRANSFERS 4,518,203 (88,079) 174,618 - 4,604,742
Capital Contributions and Transfers
Capital contributions 80,731 - - - 80,731
Transfers - - - - -
Total Capital Contributions and Transfers 80,731 - - - 80,731
CHANGE IN NET POSITION 4,598,934 (88,079) 174,618 - 4,685,473
BEGINNING NET POSITION 53,779,476 (1,096,773) (187,115) - 52,495,588
ENDING NET POSITION $ 58,378,410 $ (1,184,852) $ (12,497) $ - $ 57,181,061
See notes to financial statements 35
Lansing Housing Commission
Combining Statement of Cash Flows-Business Activities
For the Year Ended June 30, 2025
Blended Component Units
Capital City Primary
Housing Oliver Property Government
Authority Gardens Management Eliminations Total
CASH FLOWS FROM OPERATING ACTIVITIES
Receipts from tenants and users $ 3,552,619 $ 81,443 $ 730,697 $ $ 4,364,759
Receipts from operating grants 27,375,198 200,345 - 27,575,543
Payments for goods and services (4,153,797) (271,370) (121,006) (4,546,173)
Payments for Housing Assistance Payments (20,164,827) - (20,164,827)
Payments to employees for services (2,238,542) 53,237 (414,343) (2,599,648)
NET CASH FLOW PROVIDED(USED) BY OPERATING ACTIVITIES 4,370,651 63,655 195,348 - 4,629,654
CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES
Capital asset(purchases)/gain on sale (137,697) - - (137,697)
Payments on leases and loans - (119,190) - (119,190)
Capital contributions 80,731 80,731
Interfund and transfers 195,348 (195,348) -
NET CASH FLOW PROVIDED(USED) BY CAPITAL AND RELATED
FINANCING ACTIVITIES 138,382 (119,190) (195,348) - (176,156)
CASH FLOWS FROM INVESTING ACTIVITIES
Proceeds from investment activities 534,266 10,040 544,306
Transfers - - - -
(Purchase)or sale of notes receivable (6,887,774) (6,887,774)
(Purchase)or redemption of CD 17,064,599 - - 17,064,599
NET CASH FLOW PROVIDED(USED)BY INVESTING ACTIVITIES 10,711,091 10,040 - - 10,721,131
NET INCREASE(DECREASE) IN CASH 15,220,124 (45,495) - - 15,174,629
BEGINNING CASH 7,211,074 321,321 - - 7,532,395
ENDING CASH $ 22,431,198 $ 275,826 $ - $ - $ 22,707,024
See notes to financial statements 36
Lansing Housing Commission
Combining Statement of Cash Flows-Business Activities
For the Year Ended June 30, 2025
Blended Component Units
Capital City Primary
Housing Oliver Property Government
Authority Gardens Management Eliminations Total
RECONCILIATION OF OPERATING INCOME(LOSS)TO NET CASH
PROVIDED(USED)BY OPERATING ACTIVITIES
Operating income(loss) $ 3,382,792 $ (19,915) $ 174,618 $ $ 3,537,495
Non-Cash Adjustments
Depreciation 144,269 64,966 - 209,235
Pension/OPEB (96,428) - - (96,428)
Change in Asset and Liabilities
(Increase)decrease in accounts receivable 1,149,270 (1,990) 21,878 1,169,158
(Increase)decrease in inventory and prepaid (3,972) (536) (308) (4,816)
Increase(decrease) in accounts payable (225,106) (27,053) (3,680) (255,839)
Increase(decrease) in accrued liabilities 18,586 49,774 2,840 71,200
increase(decrease) in unearned revenue 446 (1,857) - (1,411)
Increase(decrease) in deposits held in trust 794 266 1,060
Net interfunds - - - -
Total Adjustments 987,859 83,570 20,730 - 1,092,159
Net Cash Provided(Used)by Operating Activities $ 4,370,651 $ 63,655 $ 195,348 $ - $ 4,629,654
See notes to financial statements 37
Lansing Housing Commission
Combining Statement of Net Position-Discretely Presented Component Unit
June 30,2025
South
Mount Vernon Hildebrandt Washington LaRoy DPCU
ASSETS Park Park Park Froh Total
Current Assets
Cash and cash equivalents
Unrestricted $ 337,283 $ 181,704 $ 81,487 $ 256,420 $ 856,894
Restricted 2,083,819 1,466,752 1,749,428 1,829,802 7,129,801
Subtotal 2,421,102 1,648,456 1,830,915 2,086,222 7,986,695
Certificates of Deposit - - - - -
Accounts receivable, net 39,732 71,883 47,919 112,147 271,681
Prepaid expenses 43,127 86,951 24,281 19,005 173,364
Interfund due from - - - - -
Total Current Assets 2,503,961 1,807,290 1,903,115 2,217,374 8,431,740
Non-Current Assets
Notes receivable - - - - -
OPEB plan assets - - - - -
Other assets 103,055 93,247 150,591 92,930 439,823
Capital assets not being depreciated 520,000 510,000 900,000 575,000 2,505,000
Capital assets, net 22,912,789 18,402,919 18,744,612 18,998,506 79,058,826
Total Non-Current Assets 23,535,844 19,006,166 19,795,203 19,666,436 82,003,649
TOTAL ASSETS 26,039,805 20,813,456 21,698,318 21,883,810 90,435,389
DEFERRED OUTFLOWS OF RESOURCES - - - - -
See notes to financial statements 38
Lansing Housing Commission
Combining Statement of Net Position-Discretely Presented Component Unit
June 30,2025
South
Mount Vernon Hildebrandt Washington LaRoy DPCU
LIABILITIES Park Park Park Froh Total
Current Liabilities
Accounts payable 52,914 33,449 30,658 45,092 162,113
Accrued liabilities 35,913 846,956 19,307 728,469 1,630,645
Deposits held in trust 27,616 20,239 28,261 23,461 99,577
Compensated absences current - - - - -
Unearned revenue 37,192 12,258 37,271 24,967 111,688
Other liabilities current 28,252 91,307 16,347 60,357 196,263
Financial agreements payable current - 7,293,559 9,649,643 7,687,237 24,630,439
Interfund due to - - - - -
Total Current Liabilities 181,887 8,297,768 9,781,487 8,569,583 26,830,725
Non-Current Liabilities
Compensated absences - - - - -
Funds held in trust 207,969 95,345 303,314
Net pension liability - - - - -
Financial agreements payable 19,582,854 4,905,577 1,899,304 5,777,527 32,165,262
Total Non-Current Liabilities 19,790,823 4,905,577 1,994,649 5,777,527 32,468,576
TOTAL LIABILITIES 19,972,710 13,203,345 11,776,136 14,347,110 59,299,301
DEFERRED INFLOWS OF RESOURCES - - - - -
NET POSITION
Net investment in capital assets 11,696,252 6,713,783 17,745,308 6,108,742 42,264,085
Restricted 2,056,203 1,446,513 1,721,167 1,806,341 7,030,224
Unrestricted (7,685,360) (550,185) (9,544,293) (378,383) (18,158,221)
TOTAL NET POSITION $ 6,067,095 $ 7,610,111 $ 9,922,182 $ 7,536,700 $ 31,136,088
See notes to financial statements 39
Lansing Housing Commission
Combining Statement of Revenues, Expenses,and Changes in Net Position-Discretely Presented Component Unit
For the Year Ended June 30, 2025
South
Mount Vernon Hildebrandt Washington LaRoy DPCU
Park Park Park Froh Total
Operating Revenues
Rental revenues, net $ 361,945 $ 317,881 $ 356,653 $ 323,611 $ 1,360,090
Government grants 1,177,246 894,859 1,276,253 983,911 4,332,269
Other income 547 970 412 1,792 3,721
Total Operating Revenues 1,539,738 1,213,710 1,633,318 1,309,314 5,696,080
Operating Expenses
Administration 470,316 296,541 501,978 295,527 1,564,362
Tenant services - - - - -
Utilities 263,026 199,013 284,331 273,167 1,019,537
Maintenance and operations 268,467 274,628 322,380 216,572 1,082,047
Protective services 4,399 3,142 205,801 3,142 216,484
Insurance expense 23,147 96,237 105,772 73,717 298,873
General expense 11,220 9,483 1,380 73 22,156
Housing Assistance Payments - - - - -
Depreciation and amortization 822,639 604,222 861,493 895,500 3,183,854
Total Operating Expenses 1,863,214 1,483,266 2,283,135 1,757,698 7,387,313
OPERATING INCOME(LOSS) (323,476) (269,556) (649,817) (448,384) (1,691,233)
Non-Operating Revenues(Expenses)
Interest income 84,230 78,547 35,662 64,278 262,717
Gain on disposal of assets - - (16,854) - (16,854)
Interest expense (1,273,845) (614,255) (877,433) (532,786) (3,298,319)
Total Non-Operating Revenues(Expenses) (1,189,615) (535,708) (858,625) (468,508) (3,052,456)
INCOME(LOSS)BEFORE CAPITAL CONTRIBUTIONS AND TRANSFERS (1,513,091) (805,264) (1,508,442) (916,892) (4,743,689)
Capital Contributions and Transfers
Capital contributions 209,131 721,935 (416) 733,759 1,664,409
Transfers - - - - -
Total Capital Contributions and Transfers 209,131 721,935 (416) 733,759 1,664,409
CHANGE IN NET POSITION (1,303,960) (83,329) (1,508,858) (183,133) (3,079,280)
BEGINNING NET POSITION 7,371,055 7,693,440 11,431,040 7,719,833 34,215,368
ENDING NET POSITION $ 6,067,095 $ 7,610,111 $ 9,922,182 $ 7,536,700 $ 31,136,088
See notes to financial statements 40
Lansing Housing Commission
Statement and Certification of Actual Costs
June 30, 2025
1. The Actual Costs of the Commission was as follows:
Grant Funds Approved Funds Disbursed Funds Expended Balance Unspent
M128PO58501-19 $ 2,268,510 $ 2,268,510 $ 2,268,510 $ -
M128P058501-20 $ 2,428,948 $ 2,428,948 $ 2,428,948 $ -
M128P058501-21 $ 2,353,880 $ 2,353,880 $ 2,353,880 $ -
M128P058501-22 $ 1,774,356 $ 1,774,356 $ 1,774,356 $ -
M128P058501-23 $ 1,523,975 $ 1,523,975 $ 11523,975 $ -
M128P058501-24 $ 1,592,215 $ 915,215 $ 915,215 $ 677,000
2. The distribution of costs as shown on the Financial Statement of Costs accompanying the Actual Cost Certificate
submitted to HUD for approval, is in agreement with the Commission's records.
3. For the above completed grants, all costs have been paid and all related liabilities have been discharged through
payment.
See auditors'report on supplementary information 41
Lansing Housing Commission
Schedule of Expenditures of Federal Awards
For the Year Ended June 30, 2025
Assistance
Listing Award
Number(s) Type Expenditures
U.S.Department of HUD
Housing Choice Vouchers 14.871 Direct $ 20,893,429
Housing Choice Vouchers-Emergency Housing Vouchers 14.871 Direct 215,864
Total Housing Voucher Center Cluster 21,109,293
Low Rent Public Housing 14.850 Direct 1,244,131
Public Housing Capital Fund Program 14.872 Direct 3,581,674
Continuum of Care Program 14.267 Direct 1,241,248
PIH Family Self-Sufficiency Program 14.896 Direct 71,597
Total U.S. Department of HUD 27,247,943
Total Expenditures of Federal Awards $ 27,247,943
Award Type
Direct $ 27,247,943
Indirect $ -
See auditors'report on supplementary information 42
Lansing Housing Commission
Notes to Schedule of Expenditures of Federal Awards
For the Year Ended June 30, 2025
NOTE 01 - SCOPE OF PRESENTATION
The accompanying schedule presents the expenditures incurred (and related awards received) by Lansing Housing
Commission (the Commission)that are reimbursable under federal programs of federal agencies providing financial
assistance and state awards.Forthe purposes of this schedule,onlythe portion of program expenditures reimbursable
with such federal or state funds is reported in the accompanying schedule. Program expenditures in excess of the
maximum federal or state reimbursement authorized or the portion of the program expenditures that were funded
with local or other nonfederal funds are excluded from the accompanying schedule.
NOTE 02 - BASIS OF ACCOUNTING
The expenditures included in the accompanying schedule were reported on the accrual basis of accounting.
Expenditures are recognized in the accounting period in which the related liability is incurred. Expenditures reported
included any property or equipment acquisitions incurred underthe federal program.The information in this schedule
is presented in accordance with the requirements of Uniform Guidance,Audit of States,Local Governments,and Non-
Profit Organizations.Therefore,some amounts presented in this schedule may differ from amounts presented in or
used in the preparation of the basic financial statements.
NOTE 03 - INDIRECT COST RATE
The Commission elected not to use the 10%de minimis indirect cost rate as allowed in the Uniform Guidance,Section
414.
43
• t:(615)309-8959
(909)80 4 smithmarion
• 068 rurall plains circle#180
franklin,to 37064 b(Iconnected . focused . understandable
Board of Commissioners
Lansing Housing Commission
Lansing, MI
Report on Internal Control over Financial Reporting and on Compliance and Other Matters Based on
an Audit of Financial Statements Performed in Accordance with Government Auditing Standards
Independent Auditors' Report
We have audited,in accordance with the auditing standards generally accepted in the United States ofAmerica and the
standards applicable to financial audits contained in GovernmentAuditing Standards issued by the Comptroller General
of the United States, the financial statements of the business-type activities, the aggregated discretely presented
component units of Lansing Housing Commission as of and for the year ended June 30,2025,and the related notes to
the financial statements,which collectively comprise Lansing Housing Commission's basic financial statements, and
have issued our report thereon dated December 8, 2025. Our report includes a reference to other auditors who
audited the financial statements of LaRoy Froh Limited Dividend Housing Association,L.P.,Mount Vernon Park Limited
Dividend Housing Association,L.P.,South Washington Limited Dividend Housing Association,L.P.,and Hildebrandt Park
Limited Dividend Housing Association, L.P, as described in our report on Lansing Housing Commission's financial
statements.This report does not include the results of the other auditors' testing of internal control over financial
reporting or compliance and other matters that are reported on separately by those auditors.
Report on Internal Control over Financial Reporting
In planning and performing our audit, we considered Lansing Housing Commission's internal control over financial
reporting(internal control) a basis for designing audit procedures that are appropriate in the circumstances for the
purpose of expressing our opinion on the financial statements but not for the purpose of expressing an opinion on the
effectiveness of Lansing Housing Commission's internal control. Accordingly, we do not express an opinion on the
effectiveness of Lansing Housing Commission's internal control.
A deficiency in internal control exists when the design or operation of a control does not allow management or
employees, in the normal course of performing their assigned functions, to prevent, or detect and correct
misstatements on a timely basis.A material weakness is a deficiency,or combination of deficiencies,in internal control,
such that there is a reasonable possibility that a material misstatement of Lansing Housing Commission's financial
statements will not be prevented or detected and corrected on a timely basis.A significant deficiency is a deficiency,or
a combination of deficiencies,in internal control that is less severe than a material weakness,yet important enough to
merit attention by those charged with governance.
Our consideration of internal control was for the limited purpose described in the first paragraph of this section and
was not designed to identify all deficiencies in internal control that might be material weaknesses or significant
deficiencies.Given these limitations,during our audit we did not identify any deficiencies in internal control that we
considerto be material weaknesses.However,material weaknesses or significant deficiencies may existthatwere not
identified.
44
Report on Compliance and Other Matters
As part of obtaining reasonable assurance about whether Lansing Housing Commission's financial statements are free
of material misstatement,we performed tests of its compliance with certain provisions of laws,regulations,contracts,
and grant agreements,noncompliance with which could have a direct and material effect on the financial statements.
However,providing an opinion on compliance with those provisions was not an objective ofouraudit,and accordingly,
we do not express such an opinion.The results of our tests disclosed no instances of noncompliance or other matters
that are required to be reported under Government Auditing Standards.
Purpose of this Report
The purpose of this report is solely to describe the scope of our testing of internal control and compliance and the
results of that testing,and not to provide an opinion on the effectiveness of Lansing Housing Commission's control or
on compliance.This report is an integral part of an audit performed in accordance with Government Auditing Standards
in considering Lansing Housing Commission's internal control and compliance.Accordingly,this communication is not
suitable for any other purpose.
3 �&I �G
December 8, 2025
45
• t:(615)309-8959
(909)80 4 smithmarion
• 068 rurall plains circle#180
franklin,to 37064 D(lconnected . focused . understandable
Board of Commissioners
Lansing Housing Commission
Lansing, MI
Report on Compliance for Each Major Federal Program and Report on Internal Control over
Compliance in Accordance with the Uniform Guidance
Independent Auditors' Report
Report on Compliance for Each Major Federal Program
Opinion on Each Major Federal Program
We have audited Lansing Housing Commission's compliance with the types of compliance requirements described in
the OMB Compliance Supplement that could have a direct and material effect on each of Lansing Housing Commission's
major federal programs forthe year ended June 30,2025.Lansing Housing Commission's major federal programs are
identified in the summary of auditor's results section of the accompanying schedule of findings and questioned costs.
In our opinion, Lansing Housing Commission complied, in all material respects, with the types of compliance
requirements referred to above that could have a direct and material effect on each of its major federal programs for
the year ended June 30, 2025.
Management's Responsibility
Management is responsible for compliance with the requirements of laws,regulations,contracts,and grants applicable
to its federal programs.
Basis for Opinion on Each Major Federal Program
We conducted our audit of compliance in accordance with auditing standards generally accepted in the United States
of America(GAAS);the standards applicable to financial audits contained in Government Auditing Standards issued by
the Comptroller General of the United States(Government Auditing Standards);and the audit requirements of Title 2
U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit
Requirements for Federal Awards (Uniform Guidance). Our responsibilities under those standards and the Uniform
Guidance are further described in the Auditor's Responsibilities for the Audit of Compliance section of our report.
We are required to be independent of Lansing Housing Commission and to meet our other ethical responsibilities, in
accordance with relevant ethical requirements relating to our audit. We believe that the audit evidence we have
obtained is sufficient and appropriate to provide a basis for our opinion on compliancefor each majorfederal program.
Our audit does not provide a legal determination of Lansing Housing Commission's compliance with the compliance
requirements referred to above.
Responsibilities of Management for Compliance
Management is responsible for compliance with the requirements referred to above and for the design,
implementation, and maintenance of effective internal control over compliance with the requirements of laws,
statutes,regulations,rules and provisions of contracts orgrant agreements applicable to Lansing Housing Commission's
federal programs.
46
(I
Auditor's Responsibilities for the Audit of Compliance
Our objectives are to obtain reasonable assurance about whether material noncompliance with the compliance
requirements referred to above occurred,whether due to fraud or error,and express an opinion on Lansing Housing
Commission's compliance based on our audit. Reasonable assurance is a high level of assurance but is not absolute
assurance and therefore is not a guarantee that an audit conducted in accordance with GAAS, Government Auditing
Standards, and the Uniform Guidance will always detect material noncompliance when it exists. The risk of not
detecting material noncompliance resultingfrom fraud is higherthan forthat resultingfrom error,as fraud may involve
collusion,forgery,intentional omissions,misrepresentations,orthe override of internal control.Noncompliance with
the compliance requirements referred to above is considered material, if there is a substantial likelihood that,
individually or in the aggregate, it would influence the judgment made by a reasonable user of the report on
compliance about Lansing Housing Commission's compliance with the requirements of each majorfederal program as a
whole.
In performing an audit in accordance with GAAS, Government Auditing Standards,and the Uniform Guidance,we:
• Exercise professional judgment and maintain professional skepticism throughout the audit.
• Identify and assess the risks of material noncompliance,whether due to fraud or error,and design and perform
audit procedures responsive to those risks.Such procedures include examining,on a test basis,evidence regarding
Lansing Housing Commission's compliance with the compliance requirements referred to above and performing
such other procedures as we considered necessary in the circumstances.
• Obtain an understanding of Lansing Housing Commission's internal control over compliance relevant to the audit
in order to design audit procedures that are appropriate in the circumstances and to test and report on internal
control over compliance in accordance with the Uniform Guidance, but not for the purpose of expressing an
opinion on the effectiveness of Lansing Housing Commission's internal control over compliance.Accordingly,no
such opinion is expressed.
We are required to communicate with those charged with governance regarding,among other matters,the planned
scope and timing of the audit and any significant deficiencies and material weaknesses in internal control over
compliance that we identified during the audit.
Report on Internal Control over Compliance
Adeficiency in internal control over compliance exists when the design or operation of a control over compliance does
not allow management or employees, in the normal course of performing their assigned functions, to prevent, or
detect and correct, noncompliance with a type of compliance requirement of a federal program on a timely basis.A
material weakness in internal control over compliance is a deficiency,or combination of deficiencies,in internal control
over compliance,such that there is a reasonable possibility that material noncompliance with a type of compliance
requirement of a federal program will not be prevented,or detected and corrected, on a timely basis.A significant
deficiency in internal control over compliance is a deficiency,or a combination of deficiencies,in internal control over
compliance with a type of compliance requirement of a federal program that is less severe than a material weakness in
internal control over compliance,yet important enough to merit attention by those charged with governance.
47
(I
Our consideration of internal control over compliance was for the limited purpose described in the first paragraph of
this section and was not designed to identify all deficiencies in internal control over compliance that might be material
weaknesses or significant deficiencies.Wed id not identify any deficiencies in internal control over compliance that we
consider to be material weaknesses. However, material weaknesses may exist that have not been identified.
Our audit was not designed for the purpose of expressing an opinion on the effectiveness of internal control over
compliance.Accordingly, no such opinion is expressed.
The purpose of this report on internal control over compliance is solelyto describe the scope of our testing of internal
control over compliance and the results of that testing based on the requirements of Uniform Guidance.Accordingly,
this report is not suitable for any other purpose.
3' & G
December 8,2025
48
Lansing Housing Commission
Schedule of Findings and Questioned Costs
For the Year Ended June 30, 2025
Section I Summary of Auditors' Results
Financial Statements
Type of auditors' report issued JUnmodified
Internal controls over financial reporting:
Material weakness(es) identified INo
Significant deficiency(ies) identified INone Reported
Noncompliance material to financial statements noted INo
Federal Awards
Internal control over major federal programs
Material weakness(es) identified INo
Significant deficiency(ies) identified INone Reported
Type of auditors' report issued on compliance for major federal programs JUnmodified
Any audit findings disclosed that are required to be reported in accordance with 2 CFR 200.516(a) INo
Identification of major federal programs:
ALN(s) Name of Federal Program or Cluster
14.871 Housing Choice Vouchers
14.872 Public Housing Capital Fund Program
Dollar threshold used to distinguish between type A and type B programs: $ 817,438
Auditee qualified as a low-risk auditee INo
Section II Financial Statement Findings
No findings.
Section III Federal Awards Findings
No findings to reported under 2CFR200 Section 516(a) of the Uniform Guidance.
49
Lansing Housing Commission
Summary Schedule of Prior Year Findings and Questioned Costs
For the Year Ended June 30, 2025
Financial Statement Findings
Prior Year Findings Status/Current Year
Number Findings Title Findings Number
N/A There were no prior findings reported. N/A
Federal Award Findings and Questioned Costs
Prior Year Findings Status/Current Year
Number Findings Title Findings Number
N/A There were no prior findings reported. N/A
s0