TITLE
Recommendation to authorize the Executive Director, or designee, to set aside 75 HUD sponsored Veterans Affairs Supportive Housing (VASH) Project-Based Vouchers (PBV) for homeless veterans to be housed at Anchor Place Development located within Century Villages at Cabrillo; and authorize the Executive Director, or designee, to negotiate and execute an agreement to enter into a Housing Assistance Payment contract for VASH PBV assistance in accordance with Housing and Urban Development (HUD) guidelines for qualified applicants. (Citywide)
DISCUSSION
The Project-Based Voucher (PBV) Program in Long Beach has been designed to meet special housing needs within the City as confirmed in the City's Consolidated Plan. The most recent PBV development was the Palace Hotel, which provides 13 rental units for youth aging out of the foster care system. This has been a very successful outreach to an underserved population. The PBV was initiated in a completely renovated historical structure on Anaheim Boulevard in central Long Beach. Project-based vouchers are also being set aside for two new construction developments, the Cabrillo Gateway Development, which will provide 80 units of affordable housing for homeless families on the Westside of our City, and the Long Beach 21st Senior Apartments, located in central Long Beach, which will provide 41 units of affordable senior housing, with 15 of those units utilized as permanent supportive housing units through the Project-Based Voucher (PBV) Program.
Last year, an RFP was solicited for a development to address the special Housing needs of Homeless Veterans. The development had to be able to work with the Long Beach Veterans Affairs Medical Center in Long Beach (VAMC), as they provided case management for the Veterans. Anchor Place at Century Villages at Cabrillo submitted a viable proposal with site control, preliminary plans and local support. The project was accepted by the HACLB for submittal to HUD for special VASH PBV funding and, in August 2014, the project was awarded funding for 75 project-based vouchers. However, to actually receive the voucher's from HUD, tax credits and a subsidy laying review had to be completed by our State Tax Credit Allocation Committee agency this month.
Although the other requirements were met, the spring round of tax credits does not begin until March 2015, which has made it impossible to meet HUD's requirement. Therefore, the new allocation of 75 VASH PBV will be rescinded. We can reapply for the vouchers when a new round of funding has not been established.
The HACLB has over 600 VASH vouchers, with over 200 vouchers not yet leased as an alternate plan. We can easily provide the 75 project based vouchers from our existing allocation when needed (approximately 18 months from now). Providing the VASH PBV with existing funding will also help us in maintaining affordable units in the City with support services we can easily access.
To set aside the VASH PBV vouchers, the HACLB and the owner must execute an Agreement to enter into a Housing Assistance Payment Contract (AHAP). The AHAP between the HACLB and the owner establishes the initial rents for the units, and describes the responsibilities of the HACLB and the owner. Once work is completed, the HACLB and the owner will execute a Contract (HAP) for a 15-year term. After the initial 15-year term, future contracts may be renewed subject to availability of continued HUD funding.
This matter was reviewed by Deputy City Attorney Linda Vu, and by Budget Management Officer Victoria Bell on February 9, 2015.
TIMING CONSIDERATIONS
Housing Authority Commission action is requested on February 17, 2015, in order to allow staff to move forward with the approval for the VASH PBV for Anchor Place, which will help to maintain the current development schedule and financial commitments for the development.
FISCAL IMPACT
Funding provided by HUD will be passed through the Housing Authority to Century Villages at Cabrillo for the Anchor Place development for 75 project-based units for veterans. Funding for the administration of the vouchers is provided by HUD and there is no cost impact to the Housing Authority Fund (SR 151).
SUGGESTED ACTION
Approve recommendation.
BODY
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Respectfully Submitted,
APPROVED:
PATRICK H. WEST
CITY MANAGER