TITLE
Recommendation to adopt resolution of the Housing Authority of the City of Long Beach, California, approving a revised voucher Payment Standard Schedule for the Section 8 Housing Choice Voucher Program, effective April 8, 2015. (Citywide)
DISCUSSION
The Housing Authority requests your consideration and approval to raise the Payment Standards for housing units located in zip codes 90802, 90803, 90807, 90813 and 90815 for all bedroom sizes. For zip codes 90802, 90807 and 90813, this action is needed to relieve the rent burden to tenants due to rising rental costs and low vacancy rates. In zip codes 90803 and 90815 the payment standards are not high enough for owners to give consideration to voucher holding families.
Currently our Payment Standards are 100% of the HUD Small Area Fair Market Rent for the City of Long Beach (Exhibit A to the Resolution). Approval of this increase will put the Housing Authority Payment Standard at 110% (Exhibit B), which will reduce the rent burden to our most vulnerable families. The Payment Standards in these areas must be adjusted so that existing families can remain housed, new families may lease up and owners are compensated at current market rate.
Fair Market Rents (FMR) are issued by HUD for each metropolitan standard statistical area and change annually. The FMR is the maximum monthly subsidy for an assisted family. The FMR for the Los Angeles area is based on the average rent per-bedroom size across the entire county. Our Housing Authority, is in the 4th year of a demonstration project that uses Small Area FMRs that are determined by zip codes specifically for the Long Beach area. HUD’s purpose in determining the rate at the zip code level is to subsidize at a higher or lower amount given the market demands in that area, instead of region wide or countywide.
The rental vacancy rate in Long Beach is at a ten-year low, which is helping to drive up the costs of available units. Currently there are over 400 vo...
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