TITLE
Recommendation to adopt resolution approving a Voucher Payment Standard Schedule for the Section 8 Housing Choice Voucher Program, effective January 1, 2020, for all zip code areas in Long Beach. (Citywide)
DISCUSSION
The Housing Authority of the City of Long Beach (Housing Authority) requests your consideration and approval to publish 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 that are reviewed at the local level. Based on rent burden analysis, a change to the current Payment Standards is not required.
The Housing Authority is requesting approval to publish the Payment Standard to reflect amounts between 90 and 110 percent of the 40th Percentile Rents for Long Beach zip codes 90802, 90803, 90807, 90808, 90909, 90810, 90814, and 90815; and, continue to apply the success rate of 50th Percentile Rents previously authorized by HUD for the second year of a three-year approval period in zip codes 90804, 90805, 90806, and 90813, between 90 and 110 percent (Exhibit A to Resolution).
New HUD Small Area Fair Market Rents (SAFMRs) were published October 1, 2019 for Fiscal Year 2020. By regulation, the Housing Authority can set payment standards between 90 and 110 percent of the HUD published fair market rents based on market analysis and need. Rent requests above 110 percent may be approved by the HUD Public and Indian Housing Field Office Director up to 120 percent. In Fair Market Rent (FMR) areas, where higher payment standards are necessary to increase housing choice opportunities, FMR’s are based on the 50th percentile rents and are made available by approval from the HUD Field Office Director. On October 25, 2017, the Los Angeles Field Office approved the City of Long Beach’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.
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 SAFMRs by zip codes and not geographic-wide metropolitan areas. By using the SAFMR, the rents are more reflective of the actual area.
This matter was reviewed by Deputy City Attorney Richard F. Anthony on October 28, 2019 and by Revenue Management Officer Geraldine Alejo on October 25, 2019.
TIMING CONSIDERATIONS
Housing Authority Commission action is requested on November 12, 2019.
FISCAL IMPACT
There are no changes to the Voucher Payment Standard Schedule. As a result, there will be no changes to associated expenditures. Funding to support the Housing Choice Voucher program are appropriated in the Housing Authority Fund Group in the Health and Human Services Department, fully offset by disbursements from HUD for Housing Assistance Payments. This recommendation has no staffing impact beyond the normal budgeted scope of duties and is consistent with existing City Council priorities. There is no local job impact associated with this recommendation.
SUGGESTED ACTION
Approve recommendation.
BODY
A 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
Respectfully Submitted,
KELLY COLOPY
ASSISTANT EXECUTIVE DIRECTOR
APPROVED:
THOMAS B. MODICA
ACTING EXECUTIVE DIRECTOR