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HomeMy WebLinkAbout3A - ADJUSTSECt8VCHERPROGRMPYMSTND i c .. ~S~i.e,~~~€~~~~ f+? ~'Od~ROiMG S~G~i~'AFiY U5~ ONLY: APf~ROVEU As Recommended ~ As Amended CO€VTINUCD TO " ~ ~~ ~ ClaTI1J b[~G~C)~t ~~ ~'~ Approve an increase to the Section 8 Voucher Program Payment Standard to 100 percent of the established Fair Market Rents. REDEVELOPMENT AND HOUSING COMMYSSION RECOMMENDATION Recommend that the Housing Authority approve an increase to the Section 8 Voucher Program Payment Standard to x.00 percent of the established Fair Market Rents by a vote of 5:0 (Betancourt, Lewis and Simons absent}. DISCUSSION On May 14, 1999 the Department of Housing and Urban Development (HUD) published "Section 8 Tenant-Based Assistance; Statutory Merger of Section 8 Certificate and Voucher Programs". The new regulation merges the Certificate and Voucher Programs into the new Housing Choice Voucher Program. Under the new Housing Choice Voucher Program all rent subsidy amounts will be calculated based on a payment standard set by the Public Housing Agency (PHA) anywhere between 90 to 110 percent of the HUD-published Fair Market Rents (FMR}, Previously the PHA could set the payment standard anywhere between 80 to 110 percent of the ~'MR. The Housing Authority is currently requesting approval to adjust the payment standard to 100 percent of the current FMR and to adjust annually as the FMR changes. With the escalating rental market in Santa Ana, this will allow the tenants to continue to obtain affordable housing and avoid paying an amount greater than 30 percent of their gross a.ncome for rent. This will also help ensure compliance with HUD's directive regarding maximum allowable rent burden. Tf the Authority does not raise the current Section 8 Voucher Program Payment Standard August 2, 1999 Page 2 payment standard, we will be unable to assist a large portion of our tenant population in the current market as it becomes more difficult for them to find units that are affordable. FISCAL IMPACT Funds to increase the payment standard are available in the account for the Housing Voucher Program (account no. 14a-133-6992). APPROVED AS TO FUNDS AND ACCOUNTS: _V ,.~___. Cynt is ~. Nelson Executive Director -n.~:.. Rod R. Coloma Executive Director Finance & Management Services Agency/Y .. H:ACtions199halpaymentstd ~~` r?