HomeMy WebLinkAboutMINUTES - 09092014 - HA C.5RECOMMENDATIONS
APPROVE the proposed Housing Choice Voucher payment standards for the Housing Authority of the County of
Contra Costa, effective October 1, 2014.
BACKGROUND
Payment standards are used to calculate the HAP, or subsidy, that housing authorities (HAs) pay on behalf of families
leasing units under the program. Each HA must establish a schedule of payment standard amounts by bedroom size.
The range of possible payment standard amounts is based on HUD’s published fair market rent (FMR) schedule for
the FMR area within which the HA has jurisdiction. HACCC’s payment standards are based on the FMRs for the
Oakland-Fremont, CA HUD Metro FMR area which includes all of Alameda and Contra Costa Counties. FMRs are
based on the 40th percentile of rents charged for standard housing in the FMR area. This is the dollar amount below
which 40 percent of the standard-quality rental housing units are rented. PHAs may set their payment standards
amounts from 90% to 110% of the published FMRs without HUD approval. Payment standards can be set higher or
lower than this range in response to market conditions with HUD approval.
The level at which the payment standard amount is set directly affects the amount of subsidy a family will receive,
and the amount of rent paid by program participants. If the payment standard amount is too low:
Action of Board On: 09/09/2014 APPROVED AS RECOMMENDED OTHER
Clerks Notes:
VOTE OF COMMISSIONERS
AYE:John Gioia, Commissioner
Candace Andersen,
Commissioner
Karen Mitchoff,
Commissioner
Federal D. Glover,
Commissioner
Fay Nathaniel,
Commissioner
Aqueela Bowie,
Commissioner
ABSENT:Mary N. Piepho,
Commissioner
Contact: 925-957-8028
I hereby certify that this is a true and correct copy of an action taken and entered on the minutes of the Board
of Supervisors on the date shown.
ATTESTED: September 9, 2014
Joseph Villarreal, Executive Director
By: June McHuen, Deputy
cc:
C.5
To:Contra Costa County Housing Authority Board of Commissioners
From:Joseph Villarreal, Housing Authority
Date:September 9, 2014
Contra
Costa
County
Subject:Housing Choice Voucher Payment Standards for 2014
BACKGROUND (CONT'D)
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Families may need to pay more for rent than they can afford; or
Families may have a hard time finding acceptable units or units in more desirable areas; or
Housing choices will be narrowed and the HA’s efforts to affirmatively further fair housing will be undermined.
If the payment standard amount is too high, owners may be encouraged to ask for higher than reasonable rents.
Staff propose to raise the payment standards from their current level of 90% of FMR to 95% of FMR because HAP
funding from HUD has improved since last year and also because clients are having a harder time finding units they
can afford as rents rise throughout the County.
HUD publishes fair market rents annually. The proposed federal fiscal year 2015 FMRs (effective October 1, 2014)
for HACCC’s jurisdiction are as follows:
Bedrooms 0 1 2 3 4 5 6 7
FMR/Month $1039 $1,260 $1,585 $2,213 $2,716 $3,123 $3,531 $3938
The proposed payment standards are as follows:
Bedrooms 0 1 2 3 4 5 6 7
PMT STD $987 $1,197 $1,506 $2,102 $2,580 $2,967 $3,354 $3,741
HUD annually publishes proposed FMRs in advance of their October 1st effective date. Generally, the final FMRs do
not change from the proposed levels. If the final FMRs do change, the payment standards proposed above will be
used unless the FMR change causes them to drop outside of HUD's required range of 90% to 110% of the FMRs or if
staff believes the new FMRs will negatively affect client's ability to lease units under the program.
FISCAL IMPACT
The proposed payment standards will increase housing assistance payments (HAP) made on behalf of clients by
approximately $6.6 million annually. Funding for this increase is provided by the U.S. Department of Housing and
Urban Development’s (HUD).
CONSEQUENCE OF NEGATIVE ACTION
Should the Board of Commissioners not approve the proposed payment standards, or a set of standards that falls
between 90% and 110% of the new FMRs, HACCC would not be in compliance with HUD regulations and may be
subject to sanctions from HUD.
CLERK'S ADDENDUM