HomeMy WebLinkAboutMINUTES - 09152015 - HA C.01RECOMMENDATIONS
ACCEPT report on the September 2, 2015, letter to the U.S. Department of Housing and Urban Development from
twenty members of the California Congressional delegation concerning the administrative fee formula for the
housing choice voucher program.
BACKGROUND
On April 8, 2015, HUD released a “Final Draft Report” entitled, Housing Choice Voucher Program Administrative
Fee Study. On June 26, 2015, HUD published a notice in the Federal Register seeking public comment on the
variables identified by the study as impacting administrative fee costs, how HUD might use these study findings to
develop a new administrative fee formula and any other issues that may arise with the development and
implementation of a new administrative fee formula.
The study is the first analysis of voucher administrative costs since the late 1980’s. Not surprisingly, the study found
that public housing authorities (PHAs) “have been significantly underfunded to run the HCV program.” For the past
several years, administrative fee funding from Congress resulted in PHAs receiving less than the amount for which
PHAs are eligible under the fee formula. For example, in FY15, PHAs received
Action of Board On: 09/15/2015 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
Aqueela Bowie,
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 15, 2015
Joseph Villarreal, Executive Director
By: June McHuen, Deputy
cc:
C.1
To:Contra Costa County Housing Authority Board of Commissioners
From:Joseph Villarreal, Housing Authority
Date:September 15, 2015
Contra
Costa
County
Subject:CONGRESSIONAL LETTER TO HUD CONCERNING THE HOUSING CHOICE VOUCHER
ADMINISTRATIVE FEE FORMULA
BACKGROUND (CONT'D)
about 75% of the formula amount. The formula is based on the Fair Market Rent (FMR), “with no documented
connection to what it costs to administer the HCV program.”
The study predicts that 92% of PHAs would have had greater administrative fees if the study’s proposed new fee
formula had been in place and funded between July 2013 and June 2014. The proposed formula is based on seven
factors that the authors determined drive the variation in costs of administering the voucher program. Two of the
factors, program size and wages, explain 35% of the cost variation. The five other “cost drivers” explaining an
additional 30% of the cost variation are health insurance, percentage of households with earned income, new
admissions rate, number of voucher holders in high-rent neighborhoods, and percentage of voucher holders living
more than 60 miles from the PHA’s headquarters.
What is surprising about the study is that it describes only 63% of the costs associated with the operation of the
PHAs studied. The missing data appears to have a disproportionate and negative impact on PHAs in urban areas
with higher costs of living. In California alone, 39 PHAs would lose funding under the proposed formula. This
represents 28% of all declining PHAs in the United States. HACCC would lose 9% of its voucher administrative
funding if the proposed rule is implemented.
As part of the California Association of Housing Authorities, HACCC partnered with PHAs throughout the State
to ask members of the California Congressional delegation to oppose this new formula. Part of the result of our
efforts is the letter attached to this Board Order. Twenty Congressional members have signed on asking HUD to
revisit their study. Signer include Congressman Mark DeSaulnier and Congressman Mike Thompson. At this
point, HUD has not published or formally responded to the comments it has received. Staff will update the Board
on this matter after HUD responds to comments.
FISCAL IMPACT
The Housing Authority (HACCC) faces a 9% cut in voucher administrative fees if the U.S. Department of
Housing and Urban Development's (HUD) recently proposed administrative fee formula is implemented. The
proposed funding cut would be effective January 1, 2017.
CONSEQUENCE OF NEGATIVE ACTION
None. Informational item only.
CLERK'S ADDENDUM
ATTACHMENTS
Congressional Letter