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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 H 1- I . 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 Hl-~ 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. HI-j 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. H (-4- 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. . H 1- 5"