TITLE
Recommendation to adopt resolution amending Chapter 6, Section E, of the Housing Authority Administrative Plan entitled "Factors Related to Total Payment Determination," relative to providing for a minimum monthly rent of $50.
DISCUSSION
Participating Housing Authority families generally pay between 30-40 percent of their monthly income towards their rent, and the Housing Authority pays the balance of the rent to the landlord. When a family's income is very low, their portion of the rent is correspondingly very low. Since 2001, in accordance with HUD regulations, Long Beach Housing Authority participating families have been required to pay a minimum rent of $25 per month. The Public Housing Reform Act of 1998 allowed Housing Authorities to formally adopt a minimum rent policy, setting the minimum rent figure between $0 and $50. In past years, HUD funding levels for the Housing Choice Voucher Program made this minimum rent possible. However, with sequestration cuts, this level of assistance is no longer sustainable in light of Housing Assistance Payments being reimbursed at only 94 percent of projected need; therefore, the change to a minimum tenant rent of $50 per month is requested.
Adoption of the attached Resolution will amend the Housing Authority's Administrative Plan and formally set the minimum tenant rent at $50 per month, thereby keeping the Housing Authority in line with the Public Housing Reform Act, as well as keeping expenditures in line with available funding. This adjustment in minimum rent has occurred throughout the State as Public Housing Authority's Federal funds have retracted.
This matter was reviewed by Deputy City Attorney Linda Vu on October 22, 2013 and by Budget Management Officer Victoria Bell on October 24, 2013.
TIMING CONSIDERATIONS
Housing Authority Commission action is requested on November 12, 2013 for the change in minimum tenant rent to be effective for new contracts starting December 1, 2013.
FISCAL IMPACT
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