HomeMy WebLinkAboutMINUTES - 08182015 - HA D.3RECOMMENDATIONS
CONSIDER approving Resolution No. 5191 authorizing submission of a Rental Assistance Demonstration
application to HUD that would increase HACCC's previously approved application for 90 vacant units to include all
214 units at Las Deltas in North Richmond.
BACKGROUND
In response to the ongoing lack of funding for public housing, HUD created RAD as a financing tool to preserve
existing units by converting the underlying public housing subsidy to a project-based contract with HUD that permits
private financing. This will allow public housing units across the country to be modernized or replaced by new
construction while providing more stable long-term funding. Although it is still a limited and newly developing
program, RAD is HUD’s primary tool to fund required rehabilitation or reconstruction of existing public housing.
On March 30, 2015, HUD approved HACCC's RAD application to convert 90 vacant public housing units at Las
Deltas in North Richmond to Project-Based Vouchers (PBV) that will be used to develop replacement housing
elsewhere. When staff submitted HACCC's RAD application in December 2013, the intention was to also submit a
Section
Action of Board On: 08/18/2015 APPROVED AS RECOMMENDED OTHER
Clerks Notes:
VOTE OF COMMISSIONERS
AYE:John Gioia, Commissioner
Candace Andersen,
Commissioner
Mary N. Piepho,
Commissioner
Karen Mitchoff,
Commissioner
ABSENT:Federal D. Glover,
Commissioner
Fay Nathaniel, Commissioner
Jannel George-Oden,
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: August 18, 2015
Joseph Villarreal, Executive Director
By: June McHuen, Deputy
cc:
D.3
To:Contra Costa County Housing Authority Board of Commissioners
From:Joseph Villarreal, Housing Authority
Date:August 18, 2015
Contra
Costa
County
Subject:Application to the U.S. HUD to Expand the HA's Previously Approved 90 Unit Rental Assistance Demonstration
Program
BACKGROUND (CONT'D)
18 Demolition/Disposition (Section 18) application to HUD for the remaining, occupied units at Las Deltas. The
primary advantage of a Section 18 application is that it provides a better long-term subsidy stream than the RAD
program does. The disadvantages are that HUD has made it very difficult to get a Section 18 application
approved, the funding for replacement vouchers under such an application continues to shrink (meaning you may
not get any) and HUD does not provide replacement funding for vacant units under a Section 18 application. In
discussions with HUD and others it has become clear that it will be difficult to get a Section 18 application
approved for Las Deltas. While staff will continue to explore the possibility of a Section 18 application over the
remainder of the calendar year, it is in HACCC’s best interest to also submit a RAD application for the remainder
of the property in order to maximize the chances that the entire property can be converted to project-based
assistance that can be used to develop replacement housing elsewhere.
FISCAL IMPACT
If approved by the U. S. Department of Housing and Urban Development (HUD), the Housing Authority’s
(HACCC) revised Rental Assistance Demonstration program (RAD) application would convert all 214 public
housing units at Las Deltas into project-based vouchers. The project-based voucher subsidy for these units will be
worth approximately $66 million in funding over the next 30 years.
CONSEQUENCE OF NEGATIVE ACTION
Should the Board of Commissioners elect not to approve Resolution No. 5191, authorizing submission of an
expanded RAD application to HUD, it is likely that 124 of the existing 214 public housing units at Las Deltas will
remain as public housing. Such a scenario is not viable financially for HACCC.
ATTACHMENTS
RAD Resolution 5191