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Health and Human Services Agency recommending the Board:
1) Acting as the Governing Board of the El Dorado County Public Housing Authority, approve and authorize the Chair to execute the non-financial Project-Based Voucher Program Housing Assistance Payment Contract - Existing Housing 3906 with Tahoe Senior Housing II, a California Limited Partnership, for the continued designation of six (6) housing Choice Voucher Program project-based units in South Lake Tahoe, for a term of 10 years from June 18, 2019 through June 17, 2029; and
2) Authorize the Director of Health and Human Services, or designee, to execute further documents relating to PBV HAP Agreement #3906, including amendments which do not increase the maximum dollar amount or term of the Agreement, and contingent upon approval by County Counsel and Risk Management.
FUNDING: Federal funding for Project-Based Vouchers is provided by the Federal Department of Housing and Urban Development via separate Annual Contribution Contract CA151.
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DISCUSSION / BACKGROUND:
The El Dorado County Public Housing Authority (PHA) provides eligible participants with rental assistance vouchers to offset rental housing costs through the Housing Choice Voucher (HCV) Program (also known as Section 8 housing). This Federal Department of Housing and Urban Development (HUD) funded program provides eligible individuals and families with safe and sanitary housing in the private housing market. Program eligibility is determined by the PHA and is based on the family’s total annual gross income and family size. In general, the family’s income may not exceed 50% of the median income for the County or metropolitan area in which the family chooses to live. To encourage development of affordable housing for households earning at or below 50% of the median income, the PHA can elect to reserve “project-based” vouchers (PBV) for a specific development selected through a Request for Proposal process.# 07-918-080 (File ID 07-290). The total amount of “project-based” vouchers may not exceed 20% of the PHA’s annual authorized budget allocation from HUD. Project-based vouchers are considered “attached to the structure” and provide designated affordable housing for participants in the HCV program.
American Baptist Homes of the West (name changed to HumanGood Affordable Housing 2/13/2019) of Pleasanton, CA, general partner to Tahoe Senior Housing II, was awarded the Request for Proposal # 07-918-080 (File ID 07-290, On June 18, 2009).
On June 18, 2009, (File ID 08-0499, DHS, 04-29-08, PBV AHAP Contract) the Public Housing Authority entered into Housing Assistance Payment Contract #V00077-AHAP-02 with Tahoe Senior Housing II, L.P., to provide up to six (6) Section 8 Housing Choice Vouchers for Tahoe Senior Plaza II for up to ten years upon completion of construction of this affordable senior housing development. PBV HAP Contract #V00077-AHAP-02 expires June 17, 2019.
Tahoe Senior Plaza II, located at 1447 Herbert Avenue in the City of South Lake Tahoe provides 33 units of affordable senior housing. The PBVs currently provide rental assistance for six of the Tahoe Senior Plaza II units. The HAP contract, a County non-standard language contract, has been reviewed and approved by County Counsel and Risk Management.
Pursuant to 24 CFR § 983.205 - "Term of HAP contract", A PHA may agree to enter into an extension at the time of the initial HAP contract term or any time before expiration of the contract, for an additional term of up to 15 years if the PHA determines an extension is appropriate to continue providing affordable housing for low income families. This renewal, an extension of the Housing Assistance Payment (HAP) Contract #V00077-AHAP-02, reflects a format change from the original “New Construction” agreement to an “Existing Housing” format. The Agreement must be executed by June 17, 2019.
ALTERNATIVES:
Failure to approve HAP Contract 3906 would result in the loss of designated housing for the HCV program. Currently the rent at Tahoe Senior Housing II is below the Fair Market Rate set by HUD for the area and costs to the PHA could potentially increase if the HCV participants choose to move to housing with higher rent once their voucher is no longer attached to the unit. Additionally, if the contract expires, the PHA would have to conduct a new competitive selection process and receive HUD approval to reserve HCV vouchers as project-based again.
PRIOR BOARD ACTION:
1) 03/20/2007, File ID 07-290, Award Bid #07-918-080 for Project-Based Voucher Program
2) 04/29/2008, File ID 08-0499, DHS, 04-29-08, PBV AHAP
OTHER DEPARTMENT / AGENCY INVOLVEMENT:
Approved by County Counsel, and Risk Management.
CAO RECOMMENDATION:
It is recommended that the Board approve this item.
FINANCIAL IMPACT:
Federal funding for Project-Based Vouchers is provided by the Federal Department of Housing and Urban Development for payments to landlords on behalf of program participants and is included in the annual Department budget for the Housing Choice Voucher Program.
There is no Net County Cost associated with this Agenda item. This Agreement is a renewal of a prior agreement and continues to be funded by HUD. Sufficient appropriations were included in the fiscal year 2018-19 budget, and will be included in future budgets for the term of the Agreement.
CLERK OF THE BOARD FOLLOW UP ACTIONS
1.) Clerk of the Board to obtain signature of the Chair on two (2) Housing Assistance Payment Contract #3906.
2.) Clerk of the Board to forward one (1) fully executed Agreement to HHSA at 3057 Briw Road.
STRATEGIC PLAN COMPONENT:
N/A
CONTACT
Donald Semon., Director