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HomeMy WebLinkAboutMINUTES - 03062007 - HA.2 TO: BOARD OF COMMISSIONERS - , Housing FROM: Rudy Tamayo Authority of Executive Director Contra Costa arf rdablehousingsolutions County DATE: March 6, 2007 SUBJECT: Report to the Board; Utility Allowance Schedule SPECIFIC REQUEST(S)OR RECOMMENDATION(S)&BACKGROUND AND JUSTIFICATION RECOMMENDATION: ACCEPT report of the Section 8 Housing Choice Voucher Program and Public Housing Utility Allowance Schedule. FINANCIAL IMPACT: This report is for informational purposes only and action items stated within this report will be accomplished with current and projected financial resources. The approximate cost for the new utility allowance schedule for the Section 8 Housing Choice Voucher program is approximately $2.0 million of Housing Assistance Payments (HAP)from the U. S. Department of Housing and Urban Development for the period of April 1, 2006 through March 31, 2007. There will be no impact on the County General Fund. BACKGROUND This Utility Allowance report is provided for informational purposes. While there is no federal requirement for Board approval, Federal Regulations (Title 24, Code of Federal Regulations 982.517 (b) (1)) requires the Housing Authority to establish utility allowance schedules based on the typical costs of utilities in Contra Costa County. The utility allowance must include the necessary utilities and services in the County to provide housing that complies with the U. S. Department of Housing and Urban Development (HUD) housing quality standards. Utility allowances are based on current utility rates and normal consumption patterns for the County as a whole. The allowances are not based on a family's actual energy consumption. Utility Allowances are used to determine the Gross Rent for a unit and to compute the family's Tenant Rent. The tenant rent is 30% of their adjusted monthly income minus the computed utility allowance. For example, if 30% of the family's adjusted monthly income is $500 and computed utility allowances in $125 then the tenant family's portion of the rent is $375. If the rent is $1,200 per month, the Housing Authority's portion of the rent is then $825. In January, 2006 the Housing Authority contracted with the Nelrod Corporation to conduct the utility allowance study and prepare the utility allowance schedule for fiscal year 2006-2007. CONTINUED ON ATTACHMENT: X YES SIGNATURE: TAVC0, ECUTIV (RECTOR RECOMMENDATION OF COUNTY ADMINISTRATOR RECOMMENDATION OF OARD COMM( E APPROVE OTHER SIGNATURE(S): ACTION OF BOARD ON Q Qca O APPROVED AS RECOMMENDED _ OTHER VOTE OF COMMISSIONERS I HEREBY CERTIFY THAT THIS IS A TRUE AND CORREC' COPY OF AN ACTION TAKEN AND ENTERED ON MINUTES OI THE BOARD OF COMMISSIONERS ON THE DATE SHOWN. UNANIMOUS(ABSENT ) AYES: 'NOES: ABSENT: ABSTAIN: Contact: Judy Hayes,957-8028 Cc: County Administration ATTESTED ©3Z O Auditor-Controller JOHNNCULLET,CLERK OF THE BOARD OF COMMISSIONERS BY: DEPUTY Board of Commissioners March 6, 2007 Page 2 of 2 The increase was so dramatic that the Housing Authority requested that they recheck figures and database to ensure that it reflected the correct consumption rate figures for Contra Costa County during the previous year. Nelrod Corporation confirmed their results and also provided a Utility Allowance schedule for all the Housing Authority's public housing developments in June, 2006. Chart 1 attached is a comparison of previous year's allowance to the new utility allowance for the Section 8 HCV program by bedroom size and apartment versus house. Chart 2 attached is a comparison of the previous year's utility allowance to the new utility allowance by public housing development and bedroom size. The Housing Authority is planning a utility reimbursement to Section 8 households for fiscal year 2006-2007. This utility allowance reimbursement implementation to Section 8 participants was pending additional appropriations from Congress to HUD for the Section 8 Housing Choice Voucher Program (HCV) and Public Housing Operating Subsidy. The original federal budget for the Section 8 HCV called for an 88% pro-ration of HAP from the calendar year 2006. This translated to approximately 770 Section 8 participant families of the approximate 6,400 families currently being served, to be dropped from the program. The Housing Authority was planning to use HAP reserves and attrition rate to get down to 5,630 households the 88% pro-ration funding level would service. On February 2, 2007 the U. S. House of Representatives approved a $463 billion final FY 2007 appropriations bill (H.J. Res. 20). On February 15, 2007 the U.S. Senate approved the same appropriations bill and the President signed the bill that same evening. The appropriations bill (H.J. Res. 20) provides significant funding increases for the Section 8 Housing Choice Voucher program, the Section 8 Project-Based program, Public Housing Operating Subsidy and Homeless Assistance Grants. Based upon the new appropriations and funding guidelines provided by HUD, the Housing Authority will now be able to maintain the same level of service to the 6,400 families that it currently serves on the Section 8 Housing Choice Voucher program and provide utility reimbursement for the families on the program. The average utility reimbursement per household is approximately $315. The public housing program operating subsidy which is provided by HUD to maintain the operations of the public housing developments received an increase but not at the level realized by the Section 8 HCV program. The original federal budget called for a 76% pro-ration of public housing operating subsidy. In calendar year 2006 the Housing Authority received a 85.5% pro- ration of public housing operating subsidy. Based upon the new appropriations and new calculation funding formulas provided by HUD, the Housing Authority will receive an 82% pro- ration of public housing operating subsidy. The Housing Authority will implement the new utility allowance schedule for public housing on April 1, 2007. The Housing Authority has again contracted with the Nelrod Corporation to conduct a utility consumption cost study for the County and provide a utility allowance schedule for the Section HCV program and the Public Housing developments. C NART SNE Chart Page 1 Allowances for Tenant U.S.Department of Housing and Urban OMB Approval No.2577-0169 Development Office Furnished Utilities and other of Public and Indian Housing Services Locality: Housing Authority of Contra Unit Type: 1/22/2006 Costa County Apartment/Duplex/Condo Utility or Service Monthly Dollar Allowances 0 BR 1 BR 2 BR 3 BR 4 BR 5 BR Heating a. Natural Gas $28.00 $40.00 $52.00 $64.00 $80.00 $92.00 b. Bottle Gas $47.00 $64.00 $83.00 $100.00 $127.00 $145.00 c. Electric $28.00 $39.00 $51.00 $63.00 $82.00 $95.00 d. Oil/Other Cooking a. Natural Gas $7.00 $10.00 $12.00 $15.00 $18.00 $22.00 b. Bottle Gas $12.00 $15.00 $20.00 $25.00 $32.00 $34.00 c. Electric $6.00 $9.00 $11.00 $14.00 $18.00 $20.00 d. Coal/Other Other Electric $14.00 $20.00 $26.00 $31.00 $40.00 $46.00 Air Conditioning $1.00 $2.00 $3.00 $3.00 $4.00 $5.00 Water Heating a. Natural Gas $20.00 $28.00 $37.00 $43.00 $57.00 $64.00 b. Bottle Gas $32.00 $44.00 $56.00 $71.00 $88.00 $103.00 c. Electric $26.00 $36.00 $48.00 $70.00 $76.00 $88.00 d. Oil/Other Water $20.00 $25.00 $29.00 $33.00 $40.00 $44.00 Sewer $12.00 $13.00 $14.00 $14.00 $14.00 $14.00 Trash Collection $22.00 $22.00 $22.00 $22.00 $22.00 $22.00 Range/Microwave $7.00 $7.00 $7.00 $7.00 $7.00 $7.00 Refrigerator $9.00 $9.00 $9.00 $9.00 $9.00 $9.00 Other--specify: Actual Family Allowances Utility or Service per month cost To be used by the family to compute allowance. Complete below for the actual unit Heating $ rented. Cooking $ Name of Family Other Electric $ Air Conditioning $ Water Heating $ Address of Unit Water $ Sewer $ Trash Collection $ Range/Microwave $ Refrigerator $ Other $ Number of Bedrooms Total Is form HUD-52667(12/97) The Nelrod Company 1/2006 ref.Handbook 7420.8 Chart 1 Page 2 Allowances for Tenant U.S.Department of Housing and Urban OMB Approval No.2577-0169 Furnished Utilities and other Development office of Public and Indian Housing Services Locality: Housing Authority of Contra Unit Type: Detached House 1/22/2006 Costa County Utility or Service Monthly Dollar Allowances 0 BR 1 BR 2 BR 3 BR 4 BR 5 BR Heating a. Natural Gas $67.00 $95.00 $121.00 $153.001 $199.00 $229.00 b. Bottle Gas $108.00 $149.00 $194.00 $235.00 $301.00 $343.00 c. Electric $57.00 $82.00 $108.00 $133.00 $171.00 $196.00 d. Oil/Other Cooking a. Natural Gas $7.00 $10.00 $12.00 $15.00 $18.00 $22.00 b. Bottle Gas $12.00 $15.00 $20.00 $25.00 $32.00 $34.00 c. Electric $6.00 $9.00 $11.00 $14.00 $18.00 $20.00 d. Coal/Other Other Electric $14.00 $20.00 $26.00 $31.00 $40.00 $46.00 Air Conditioning $1.00 $2.00 $3.00 $3.00 $4.001 $5.00 Water Heating a. Natural Gas $20.00 $28.00 $37.00 $43.00 $57.00 $64.00 b. Bottle Gas $32.00 $44.00 $56.00 $71.00 $88.00 $103.00 c. Electric $26.00 $36.00 $48.00 $70.00 $76.00 $88.00 d. Oil/Other Water $25.00 $32.00 $38.00 $45.00 $54.00 $61.00 Sewer $12.00 $13.00 $14.00 $14.00 $14.00 $14.00 Trash Collection $22.00 $22.00 $22.00 $22.00 $22.00 $22.00 Range/Microwave $7.00 $7.00 $7.00 $7.00 $7.00 $7.00 Refrigerator $9.00 $9.00 $9.00 $9.00 $9.00 $9.00 Other--specify: Actual Family Allowances Utility or Service per month cost To be used by the family to compute allowance. Complete below for the actual unit Heating $ rented. Cooking $ Name of Family Other Electric $ Air Conditioning $ Water Heating $ Address of Unit Water $ Sewer $ Trash Collection - $ Range/Microwave $ Refrigerator $ Other $ Number of Bedrooms Total Is form HUD-52667(12/97) The Nelrod Company 1/2006 ref.Handbook 7420.8 CHART TWO Housing Authority of Contra Costa County COMPARISON OF OLD AND PROPOSED UTILITY ALLOWANCES Chart 2 Bedroom Old Proposed* Difference Developments Size Allowance Allowance Amount Percent Bridgemont CA011-003 1 $25.00 $75.00 $50.00 200% 2 $32.00 $93.00 $61.00 191%. 3 $39.00 $112.00 $73.00 187% Los Nogales CA011-004 1 $25.00 $75.00 $50.00 200% 2 $32.00 $93.00 $61.00 191% 3 $39.00 $112.00 $73.00 187% EI Pueblo CA011-005 1 $16.00 $52.00 $36.00 2250 2 $21.00 $62.00 $41.00 195% 3 $25.00 $76.00 $51.00 204% , 4 $27.00 . $85.00 $58.00 215% Las Deltas CA011-006 1 $27.00 $85.00 $58.00 215% 2 $33.00 $99.00 $66.00 200% 3 $39.00 $125.00 $86.00 221% 4 $46.00 $141.00 $95.00 207% Los Arboles CA011-008 2 $32.00 $94.00 $62.00 194% 3 $39.00 $116.00 $77.00 197% 4 $43.00 $135.00 $92.00 214% Las Deltas CA011-009A 1 $27.00 $83.00 $56.00 207% 2 $33.00 $101.00 $68.00 206% 3 $39.00 $125.00 $86.00 221% 4 $46.00 $145.00 $99.00 215% Las Deltas CA011-0096 3 $39.00 $121.00 $82.00 210% 4 $46.00 $141.00 .$95.00 207% Bayo Vista CA011-010 1 $16.00 $42.00 $26.00 163% 2 $19.00 $55.00 $36.00 189% 3 $23.00 $62.00 $39.00 170% 4 $27.00 $69.00 $42.00 156% Hacienda CA011-011 1 $11.00 $26.00 $15.00 136% Casa de Manana CA011-01 1 $26.00 $83.00 $57.00 219% 2 $32.00 $103.00 $71.00 222% Casa Serena CA011-013 1 $11.00 . $78.00 $67.00 609% Elder Winds CAO 11-015 1 $26.00 $55.00 $29.00 112% 2 $32.00 $67.00 $35.00 109% Vista del Camino CA0457001 1 $27.00 $83.00 $56.00 207% 2 $33.00 $99.00 $66.00 200% 3 $40.00 $123.00 $83.00 208% 4 $47.00 $141.00 $94.00 200% * Proposed allowances include the average for electric summer and winter months. Proposed allowances were rounded up to the nearest dollar.