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 immediately, for all zip code areas in Long Beach, excluding 90809. (Citywide)
DISCUSSION
The Housing Authority of the City of Long Beach (Housing Authority) requests your consideration and approval to raise the Payment Standards for housing units located in all Long Beach zip codes for all bedroom sizes. Annually, the U.S. Department of Housing and Urban Development (HUD) issues new Fair Market Rents (FMR) that are reviewed at the local level. Based on rising rents and low inventory in the Long Beach market, action is needed to relieve rent burden to subsidized participants. FMRs are published by HUD for each metropolitan statistical area and change annually. The FMR is the maximum monthly subsidy provided for an assisted family. Since September 2012, the Housing Authority has applied Small Area Fair Market Rents (SAFMRs) by zip codes and not geographic-wide metropolitan areas. By using the SAFMR, the rents are more reflective of the actual area. New HUD SAFMRs published October 1, 2018 for Fiscal Year 2019 are below the Housing Authority's current payment standards and are insufficient to support local FMRs. By regulation, the Housing Authority can set payment standards between 90 and 110 percent of the HUD published FMRs based on market analysis and need. In FMR areas, where higher payments standards are necessary to increase housing choice opportunities, FMRs are based on the 501h percentile rents and are made available by approval from the HUD Field Office Director. On October 25, 2018, the Los Angeles Field Office approved the Housing Authority's request for success rate payment standards in four zip codes where the highest number of participants face rent burdens of 40 percent and higher. The Housing Authority is requesting to adjust ...
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