Item 10 - New Vouchers and Administrative Fee Funding for the Housing Choice Voucher Program

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New Vouchers and Administrative Fee Funding for the Housing Choice Voucher Program December 6, 2022 Page 2 3 0 9 5 appropriated $200 million for new incremental vouchers pursuant to a method, as determined by the U.S. Department of Housing and Urban Development (“HUD”), which included such factors as a severe cost burden, overcrowding, substandard housing for very low income renters, homelessness, and administrative capacity. Following this formula allocation, the Housing Authority was awarded 38 new vouchers (Exhibit 1). The funding for these vouchers is equal to $623,708 for the first year plus an additional $28,500 in Special Administrative Fees. After the first year, monthly HAP funds and ongoing administrative fee disbursements will be based on actual HAP expenses and leasing reported in the Voucher Management System, respectively. Funding for 25 New FYI Vouchers For the appropriation adjustment recognizing additional HAP funds for 25 new Foster Youth to Independence (“FYI”) vouchers, on September 28, 2022, the Housing Authority received an allocation of $376,512 in additional Foster Youth to Independence HAP funds (Exhibit 2) to assist up to 25 additional voucher holders. Through the 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. All of the 25 youth have already been identified and certified by the Orange County Social Services Agency. Additional Administrative Fees for Mainstream Program Vouchers For the appropriation adjustment recognizing additional Mainstream Program Voucher administrative funding, on April 6, 2022, HUD issued PIH Notice 2022-07 announcing the availability of extraordinary administrative fees to help PHAs (“Public Housing Authorities”) lease their Mainstream Program vouchers given the challenges presented by the COVID-19 pandemic. The Housing Authority administers 231 Mainstream Program vouchers for non-elderly people experiencing homelessness with a disability. Mainstream vouchers serve households that include a non-elderly person(s) with disabilities. In recent years, HUD awarded new Mainstream vouchers through the Fiscal Year (FY) 2017 and FY 2019 Mainstream Notices of Funding Availability, and later awarded an additional $75 million of Mainstream vouchers to these PHAs through PIH Notice 2020-09: CARES Act Mainstream Funding for PHAs Awarded Funding Allocations in the 2017 and 2019 Competitions as authorized by the CARES Act. HUD