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Housing Choice Voucher CARES Act HAP Funds December 15, 2020 Page 2 assistance for families as a result of insufficient funding. The Housing Authority submitted an application to the Department of Housing and Urban Development ("HUD") after experiencing a significant increase in voucher PUC due to extraordinary circumstances. Due to job loss and reductions in income for assisted -families, the average cost to assist a family in the HCV Program recently increased by over $35.80 per family and this average cost continues to increase. HUD reviewed the Housing Authority's application and approved an allocation of $1,127,700 in additional HCV HAP funding to cover this increase in average costs per family. This funding may only be used for HAP costs for the HCV Program. On November 17, 2020, the Housing Authority received an allocation of $1,231,722 in additional Mainstream Voucher Program HAP funds (Exhibit 2) to assist up to 75 additional voucher holders through the CARES Act. The CARES Act allowed HUD to allocate additional vouchers to PHAs non -competitively to help them prevent, prepare for, and respond to coronavirus in their communities. The Housing Authority submitted an application requesting Mainstream vouchers using the criteria identified in PIH Notice 2020-22: Mainstream Vouchers — Non -Competitive Opportunity for Additional Vouchers Authorized by the CARES Act, Temporary Waivers and Alternative Requirements, and Modified 2020 Housing Assistance Payment (HAP) Renewal Calculation. This funding may only be used for HAP costs for the Mainstream Voucher Program. On November 24, 2020, the Housing Authority received an allocation of $344,259 in additional Foster Youth to Independence HAP funds (Exhibit 3) to assist up to 25 additional voucher holders. Through the Foster Youth to Independence ("FYI") initiative HUD will provide HCVs for youth eligible under the Family Unification Program. Through this targeted allocation, HUD is investing in local, cross -system collaborative efforts to prevent and end homelessness among youth with a current or prior history of child welfare involvement. The population eligible to be assisted with this FYI funding are youth certified by the Orange County Social Services Agency as meeting the following conditions: 1. Has attained at least 18 years and not more than 24 years of age; 2. Left foster care, or will leave foster care within 90 days, in accordance with a transition plan described in section 475(5)(H) of the Social Security Act; and 3. Is homeless or is at risk of becoming homeless at age 16 or older. On July 17, 2018, City Council adopted a Memorandum of Understanding with the Orange County Social Services Agency that established a partnership to administer these types of vouchers for youth with a current or prior history of child welfare involvement. FISCAL IMPACT Approval of the appropriation adjustment will recognize $1,127,700 in the Housing Authority HAP revenue account (No. 16018002-52008), $1,231,722 in Mainstream Voucher Program HAP revenue account (No. 17018002-52008), and $344,259 in the Foster Youth to Independence HAP revenue account (No. 13618002-52006) for expenditure as follows: 20B-2