TITLE
Recommendation to authorize Executive Director, or designee, to release a Request for Proposals (RFP) advertising the availability of Project-Based Vouchers (PBV) and solicit participation in the program from interested property owners of affordable units; and
Authorize Executive Director, or designee, to negotiate and execute agreement(s) to enter into Housing Assistance Payment contract(s) for PBV assistance in accordance with Housing and Urban Development (HUD) guidelines for qualified proposals submitted in response to this RFP and also approved by HUD. (Citywide)
DISCUSSION
Chapter 21 of the Housing Authority of the City of Long Beach (HACLB) Administrative Plan regarding Project-Based Voucher Rental Assistance was established and approved by the Housing Authority Commission on October 12, 2002 and revised on June 9, 2009.
The 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 approved PBV development was Beacon Place, which provides 38 rental units for homeless veterans. Four additional project-based voucher developments, American Gold Star Manor, Long Beach and 21st Street, Cabrillo Gateway, and Anchor Place, were added to the Housing Authority inventory in 2015. These developments ensure that affordable housing opportunities exist for those who cannot afford market rate rent.
This new RFP is designed to help increase the number of affordable housing units. This monumental task takes the collaboration of many entities to provide appropriate affordable housing alternatives. Therefore, the HACLB is looking for property owners with affordable units, or control of a site to construct affordable units, to partner with the HACLB.
The appropriate development(s) will have up to 200 affordable units of permanent senior and/or family housing with supportive services. To begin construction and/or rehab of the development(s), the HACLB and the owner(s) must execute an Agreement to enter into a Housing Assistance Payment Contract (AHAP). The AHAP between the HACLB and the owner(s) establishes the initial rents for the units, and describes the responsibilities of the HACLB and the owner(s). Once work is completed, the HACLB and the owner(s) will execute a Contract (AHAP) 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 T. Vu on November 22, 2016 and by Budget Management Officer Rhutu Amin Gharib on November 28, 2016.
TIMING CONSIDERATIONS
Housing Authority Commission action is requested at the December 13, 2016 meeting, to allow staff to move forward with the release of an RFP.
FISCAL IMPACT
HUD approval of the selected PBV development(s) would provide for additional grant funding for 15 years for up to 200 rental units, including administrative funding to administer the contract. There are no appropriations for this program and HUD does not allocate special funding for PBV assistance. Instead, funding for PBV comes from funds already obligated by HUD to a Housing Authority under its annual contributions contract. The Housing Authority will inform the Commission and request appropriation from the City Council once the funding amounts become known.
SUGGESTED ACTION
Approve recommendation.
Respectfully Submitted,
KELLY COLOPY
ASSISTANT EXECUTIVE DIRECTOR
APPROVED:
PATRICK H. WEST
CITY MANAGER