Long Beach, CA
File #: 17-0247    Version: 1 Name: CD 9 - "Lease Up LB" Housing Choice Voucher Program Landlord Incentive Package
Type: Agenda Item Status: Approved
File created: 3/27/2017 In control: City Council
On agenda: 4/4/2017 Final action: 4/4/2017
Title: Recommendation to respectfully request City Manager, Department of Health and Human Services and Development Services Department to develop an incentive package to encourage landlord acceptance of subsidized tenants through the Housing Choice Voucher Program, and return to the City Council in 30 days. The incentive package should incorporate the following options: • Align and streamline the current city-mandated inspections with the HUD-mandated Housing Choice Voucher inspections; • Waive various permits and inspection costs for apartment owners who accept Housing Choice Vouchers; • Create a Damage Mitigation Fund which provides financial assistance to landlords to mitigate damage caused by tenants during their occupancy under the Housing Choice Voucher Program; • Provide landlords vacancy payments to hold units while the landlord is going through the Housing Choice Voucher Program approval process.
Sponsors: VICE MAYOR REX RICHARDSON, NINTH DISTRICT, COUNCILMEMBER JEANNINE PEARCE, SECOND DISTRICT, COUNCILWOMAN STACY MUNGO, FIFTH DISTRICT, COUNCILMEMBER ROBERTO URANGA, SEVENTH DISTRICT
Attachments: 1. 040417-R-20sr.pdf, 2. 040417-R-20 Corresp.Fox.pdf
Related files: 17-0545

TITLE

Recommendation to respectfully request City Manager, Department of Health and Human Services and Development Services Department to develop an incentive package to encourage landlord acceptance of subsidized tenants through the Housing Choice Voucher Program, and return to the City Council in 30 days. The incentive package should incorporate the following options:

 

                     Align and streamline the current city-mandated inspections with

                     the HUD-mandated Housing Choice Voucher inspections;

 

                     Waive various permits and inspection costs for apartment

                     owners who accept Housing Choice Vouchers;

 

                     Create a Damage Mitigation Fund which provides financial

                     assistance to landlords to mitigate damage caused by tenants

                     during their occupancy under the Housing Choice Voucher

                     Program;

 

                     Provide landlords vacancy payments to hold units while the

                     landlord is going through the Housing Choice Voucher

                     Program approval process.

 

DISCUSSION

Fully funded by the U.S. Department of Housing and Urban Development (HUD), the Housing Authority of the City of Long Beach (HACLB) administers the City's Rental Housing Assistance Programs. These programs are designed to provide financial and technical assistance services to low-income, elderly, and disabled residents of Long Beach, so they can live with dignity in decent, safe, and sanitary housing conditions.

 

Currently HACLB, in partnership with more than 2,600 property owners, assists over 6,800 households that lease units in the City of Long Beach, through various programs including the Housing Choice Voucher Program (HCVP). The HCVP (commonly known as Section 8) is a tenant-based rental assistance program that offers very low-income tenants a housing assistance subsidy so the household can afford to rent a privately owned residence. HCVP currently receives $68 million in HUD funding, lending the Housing Authority the opportunity to provide 7,398 families and/or individuals with permanent, stable housing.

 

The Problem

 

For many years, an annual audit has designated HACLB a "high performing" agency due to attaining a Housing Choice Voucher utilization rate of 98%. However, with the conclusion of FY 2016, HACLB was only at 88% voucher allocation, resulting in a "standard" agency designation, rather than the "high performing" agency. Continuing to decline, as of March 1st, the Housing Choice Voucher Program was at an 85% lease up rate, equating to 6,305 vouchers being utilized, with over 1,000 voucher holders currently seeking housing in the City of Long Beach. Failure to fully utilize the currently funded vouchers places the Housing Authority in jeopardy of losing funding.

 

The Opportunity

 

To attain increased program utilization, the Office of Vice Mayor and Housing Authority Chair Rex Richardson engaged in a process in partnership with the Apartment Association of California Southern Cities and the Long Beach Housing Authority to engage apartment owners to identify causes for the recent decline in use of the Housing Choice Voucher Program. Through this process, we convened several focus groups and administered over 200 apartment owner surveys.

 

Based on our findings, a number of recommendations have emerged to help increase the voucher lease-up rate. The findings included the need for more outreach and education to landlords to address misconceptions about the program, and several internal changes to streamline the program. As such, the City of Long Beach should provide an incentive package to encourage landlords to accept subsidized tenants, thus increasing the utilization rate of the HCVP and housing more of our Long Beach families and individuals in safe, stable environments.

 

By increasing the lease up rate, we can prevent as many as 600 Long Beach families from slipping into homelessness.

 

FISCAL IMPACT

There is no major fiscal impact for creating the incentive program. There may be fiscal impact within the incentive program which will be assessed when the program returns to the City Council.

 

SUGGESTED ACTION

Approve recommendation.

 

Respectfully Submitted,

REX RICHARDSON

VICE MAYOR, NINTH DISTRICT

 

JEANNINE PEARCE

COUNCILMEMBER, SECOND DISTRICT

 

STACY MUNGO

COUNCILWOMAN, FIFTH DISTRICT

 

ROBERTO URANGO

COUNCILMEMBER, SEVENTH DISTRICT