2005-04-05 (Report)
CITY OF ENCINIT AS
HOUSING AUTHORITY
AGENDA REPORT
Meeting Date: April 5, 2005
TO:
Honorable Mayor and Ho i I ÎU~Ority. Board
Kerry L. Miller, City 1jI /J.,Á/l.,",
J)/A.triCk Murphy, PI ing & Building Director
~~Vid de Cordova, Principal Planner
David Harris, Housing Coordinator ~
SUBJECT: Approval of the draft 2005-2010 Agency Plan of the Encinitas Housing Authority
and 2005/2006 Annual Plan for submission to the U.S. Department of Housing and Urban
Development (RUD).
VIA:
FROM:
BACKGROUND: As a Public Housing Authority (PHA), the Encinitas Housing Authority is
required to prepare a five-year Agency Plan in compliance with the Quality Housing and Work
Responsibility Act of 1998. The Agency Plan identifies the housing needs of lower income
households on the waiting list for the Section 8 Housing Choice Voucher program. The plan
includes goals, objectives, and priorities to meet those needs over the next five years. The
2005/2006 Annual Plan outlines the goals, objectives, and priorties for the rental assistance and
related activities during the upcoming program year year.
The City expects to receive about $1.1 million annually to assist eligible households with rental
assistance through the Section 8 Housing Choice Voucher program. In addition, the City has a
balance of $150,000 of HOME funds to provide eight families with rental assistance for a
limited term of 24 months. The Agency Plans are available for public review and comment from
March 27 to May 11, 2005, at which time the final plans will presented to the City Council for
approval.
ANALYSIS: An Executive Summary of the draft 2005-2010 Agency Plan is attached (see
Attachment A). The complete Agency Plan and 2005/2006 Annual Plan documents, which will
be submitted to HUD, are on file in the Planning and Building Department.
The five year Agency Plan includes the following required components:
. Housing needs .
. Financial resources for affordable housing
. PHA policies governing eligibility, selection, and admissions
. Rent determination policies
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. Capital improvement policies
. Demolition and disposition
. Homeownership program
. Civil rights certifications
. Other information- progress in meeting goals, criteria for amendments, etc.
. Use of project based vouchers
The policies and procedures included in the draft Agency Plan have previously been approved
by the Housing Authority Board and are taken from the Administrative Plan of the Housing
Authority. The needs assessment is the same as that used in the Consolidated Plan document.
The only significant changes from the prior agency plan are those which were approved by the
Housing Authority last summer, in response to a significant cut in funding by RUD. The
changes have been incorporated into the Agency Plans, as follows:
. Payment standards are changed from 110% of Fair Market Rents (FMR) to a range of
90% to 110% of Fair Market Rents (FM'R). Currently, the actual payment standards are
between 95% and 100% ofFMR.
. Occupancy standards are changed from one bedroom for the head of household and one
bedroom for every two persons to two persons per bedroom. . This change is affecting
about 15 households which will have a choice to either pay more for the unit they are
currently living in or moving into to a smaller unit.
. The portability policy was changed to allow the HA to deny portability when it
determines that it does not have sufficent funding to cover the additional cost.
These changes were implemented to enable EHA to better manage its operating budget in a time
of decreased HUD funding. For the past two years, RUD, at the direction of Congress, has
capped the total amount of funding for housing assistance payments and administrative costs.
This has forced housing authorities to either cut the number of participants on its programs
and/or to decrease the amount of assistance provided to participants. EHA will be able to fund
all 136 authorized vouchers as long as it can stablize the average housing assistance payments at
the current level of $620 per month.
FISCAL AND STAFF IMPACT
The Housing Authority anticipates receiving about $1.1 million of RUD funding annually. This
is sufficient to fund 136 vouchers if operating costs are stablized with the cost control measures
discussed herein. The adminstrative funds of about $100,000 per year are insufficient to cover
the total administrative costs, so $30,000 of Community Development Block Grant funding has
been budgeted to supplement administration.
RECOMMENDATION: Approve the draft 2005-2010 Agency Plan and 2005/2006 Annual
Plan for submission to the U.S. Department of Housing and Urban Development.
ATTACHMENTS:
"A" - 2005-2010 Agency Plan- Executive Summary
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ATTACHMENT A
ENCINIT AS HOUSING AUTHORITY
2005-2010 AGENCY PLAN
EXECUTIVE SUMMARY
The City of Encinitas Housing Authority has prepared this Agency Plan in compliance with
Section 511 of the Quality Housing and Work Responsibility Act of 1998 and the resulting
HUD requirements. The Encinitas Housing Authority is required to submit a streamlined plan
because is only administers Section 8 Rental Assistance and does not own any public
housing. (Although the Pacific Pines units are owned by the Housing Authority, they are not
considered public housing by HUD.)
Mission Statement
To promote adequate and affordable housing, economic opportunity and a suitable living
environment for Encinitas residents of all income levels.
Goals and Objectives
Goal: Manage the Encinitas Housing Authority's existing Section 8 program in an efficient
and effective manner thereby qualifying as a high performer.
Objectives:
HUD shall recognize the Encinitas Housing Authority as a high performer by
December 31,2009.
The Encinitas Housing Authority shall promote a motivating work environment with a
capable and efficient team of employees to operate as a customer-friendly and fiscally
sound player in the affordable ho~sing industry.
Goal: Expand the utilization and quality of housing choices available to participants in the
Encinitas Housing Authority's tenant-based rental assistance program.
Objectives:
The Encinitas Housing Authority shall achieve and sustain a utilization rate of 97% by
December 31, 2009.
The Encinitas Housing Authority shall attract 20 new landlords who want to participate
in the program by December 31, 2009.
The Encinitas Housing Authority will apply for more vouchers if and when they become
available.
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A TT ACHMENT A
Goal: Ensure Equal Opportunity in Housing for all Americans.
Objectives:
Undertake affirmative measures to ensure access to assisted housing regardless of
race, color, religion national origin, sex, familial status and disability.
In summary, the Housing Authority is working to increase the, availability of affordable
housing in our community, thereby improving the quality of life for lower income households
in Encinitas.
STRATEGY TO ADDRESS NEEDS
As it is not possible to address all the housing needs, the Encinitas Housing Authority has
selected the following priority needs on which to focus its resources in the upcoming year.
Factors that influence selection of the strategies include: funding constraints, staffing
constraints, limited availability of sites appropriately zoned for multi-family housing, and the
housing market.
Shortage of affordable housing for all eligible populations
Strategy 1. The Encinitas Housing Authority will focus on the following activities to
maximize the number of affordable units available to the PHA within its current resources:
1) Maintain or increase Section 8 lease-up rates by marketing the program to owners,
particularly those outside areas of minority and poverty concentration
2) Maintain or increase Section 8 lease-up rates by establishing payment standards that will
enable families to rent throughout the jurisdiction.
Strategy 2: The Encinitas Housing Authority will focus on the following activities to increase
the number of affordable housing units:
1) Apply for additional general Section 8 units should they become available.
2) Consider modifications to existing Inclusionary Housing Policy to expand options beyond
very low-income accessory units, which will increase the number of affordable units
actually available in the rental market.
Extremely low Income (Families at or below 30% of median income)
Strategy 1. The Encinitas Housing Authority will focus on the following activities to target
available assistance to families at or below 30% of AMI:
1) Maintain or increase Section 8 lease-up rates in the Section 8 mainstream program for
persons with disabilities by increasing outside agency participation.
Very Low Income (Families at or below 50% of median income)
Strategy 1. The Encinitas Housing Authority will focus on the following activities to target
available assistance to families at or below 50% of AMI:
1) Adopt admissions preference for working families.
2) Adopt rent policies to encourage work.
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ATTACHMENT A
Elderly Households
Strategy 1. The Encinitas Housing Authority will focus on the following activities to target
available assistance to elderly households:
1) Apply for special-purpose vouchers targeted to the elderly, should they become available.
2) Work with developers on creating and maintaining affordable units for elderly households.
Disabled Households
Strategy 1: The Encinitas Housing Authority will focus on the following activities to target
available assistance to families with disabilities:
1) Maintain or increase Section 8 lease-up rates in the Section 8 mainstream program for
persons with disabilities by increasing outside agency participation.
2) Maintain or increase Section 8 lease-up rates in the Section 8 mainstream program for
persons with disabilities by adopting alternative housing choices.
Racial or Ethnic Populations with Disproportionate Housing Needs
Strategy 1: The Encinitas Housing Authority will focus on the following activities to
affirmatively further fair housing:
1) Market the program to owners, particularly those outside areas of minority and poverty
concentration.
2) Complete an Assessment of Impediments report to identify specific problems.
Homeless Households
Strategy 1: The Encinitas Housing Authority will focus on the following activities to target
assistance for homeless households:
1) Apply for special-purpose vouchers targeted to the homeless, should they become
available.
2) Work with the Regional Continuum of Care on policy issues and funding applications to
expand housing and service options for homeless households in North County.
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