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Health and Human Services Agency (HHSA), acting as the Governing Board of the El Dorado County Public Housing Authority, recommending the Board:
1) Approve and authorize the Chair to sign Amendment II to competitively procured Housing Assistance Payment (HAP) Contract 5904 (formerly V00052-PBV-001) with Mercy Housing California XXI (Mercy Housing), to extend the term of the Agreement for an additional 20 years and update regulatory language;
2) Authorize the Purchasing Agent to execute amendments relating to HAP Contract 5904, contingent upon approval by County Counsel and Risk Management, which do not increase the maximum dollar amount or term of the Agreement; and
3) Authorize the HHSA Director, or the Chief Assistant Director, to execute programmatic, administrative, and fiscal documents relating to HAP Contract 5904.
FUNDING: 100% Federal United States Department of Housing and Urban Development Housing Choice Voucher Program.
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DISCUSSION / BACKGROUND:
El Dorado County PHA provides eligible participants with rental assistance vouchers to offset rental housing costs through the HCV Program (formally known as Section 8). This federally funded program provides eligible individuals and families with safe and sanitary housing in the private housing market. To encourage development of affordable housing for households earning at or below 50% of the median income, the PHA elected to reserve Project-Based Vouchers (PBV) for specific developments selected through a competitive Request for Proposal (RFP) process.
HAP Contract 5904 with Mercy Housing was first executed effective March 21, 2005, for 42 PBVs at the White Rock Village Apartments in El Dorado Hills, with a ten-year term. Under this Agreement, the PHA pays Mercy Housing a portion of an eligible family’s rent, in accordance with HUD requirements. Additionally, all designated apartment units must comply with HUD housing quality standards, and the rent may not exceed reasonable rent charged for comparable units in the private (unassisted) market. On March 3, 2015, the Board approved Amendment I to HAP Contract 5904 to extend the term of the Agreement for an additional ten years, through March 20, 2025 (Legistar file 15-0140).
This Amendment II to HAP Contract 5904 extends the term for an additional 20 years through March 20, 2045, and updates HUD regulatory language. Pursuant to 24 Code of Federal Regulations (CFR) Section 983.205, the term extension included in this Amendment II is the final term extension allowed. HHSA is recommending the Board approve this Amendment II to allow HHSA to ensure continuation of the PBV HCV Program for eligible families for an additional 20 years.
ALTERNATIVES:
Should the Board decline to approve this item, there would be a loss of designated housing for the HCV Program. PHA costs could potentially increase if HCV participants at White Rock Village Apartments choose to move to housing with higher rent once their voucher is no longer attached to the unit. Additionally, if the Agreement expires, the PHA would have to conduct a new competitive solicitation process and receive HUD approval to reserve HCV vouchers as “project-based” again.
PRIOR BOARD ACTION:
03/03/15, 15-0140, HHSA Housing Assistance Payment Amd I
OTHER DEPARTMENT / AGENCY INVOLVEMENT:
Approved by County Counsel, Human Resources, and Risk Management.
CAO RECOMMENDATION:
Approve as recommended.
FINANCIAL IMPACT:
There is no General Fund Cost associated with this Agenda item. Federal funding for PBVs is provided by HUD for payments to landlords on behalf of program participants and is included in the annual HHSA budget for the HCV Program. The administrative funding HHSA receives from HUD is based in part on the utilization rate of housing vouchers. Should the County not use the housing vouchers available, the lack of utilization could adversely impact the administrative funding for this program.
CLERK OF THE BOARD FOLLOW UP ACTIONS
Clerk of the Board to obtain signature of Chair on one original Amendment II to HAP Contract 5904.
STRATEGIC PLAN COMPONENT:
Area of Focus: Safe and Healthy Communities
Priority: Develop a continuum of support and housing opportunities for unhoused individuals
Action Item: Continue Engagement with County departments, the homeless community, and countywide partners to develop effective strategies including for example, transitional housing.
CONTACT
Olivia Byron-Cooper, MPH, Director, Health and Human