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Work Session_Update on Housing Choice Voucher ProgramCity of Dubuque City Council Meeting Copyrighted November 7, 2022 Work Session - Top # 01. ITEM TITLE: 5:30 PM - Update on Housing Choice Voucher Program SUMMARY: Housing and Community Development Director Alexis Steger will be presenting on the Housing Choice Voucher Program, updates on acceptance rates, decrease in utilization, and other programs offered under the Rental Assistance Division of the Housing and Community Development Department. SUGGESTED DISPOSITION: ATTACHMENTS: Description Update on Housing Choice Voucher Program-MVM Memo Staff Memo Presentation Income Limits and Voucher Payment Standards Myth Busting - HUD Housing Choice Voucher Handout Type City Manager Memo Staff Memo Supporting Documentation Supporting Documentation Supporting Documentation Supporting Documentation THE C DUjIBQTE Masterpiece on the Mississippi TO: The Honorable Mayor and City Council Members FROM: Michael C. Van Milligen, City Manager SUBJECT: Work Session — Update on Housing Choice Voucher Program DATE: November 3, 2022 Dubuque WAWca 914 ii 2007-2012.2013 2017*2019 Housing and Community Development Director Alexis Steger will be presenting on the Housing Choice Voucher Program, updates on acceptance rates, decrease in utilization, and other programs offered under the Rental Assistance Division of the Housing and Community Development Department at 5:30 p.m. on November 7, 2022. Mic ael C. Van Milligen MCVM:sv Attachment cc: Crenna Brumwell, City Attorney Cori Burbach, Assistant City Manager Alexis Steger, Housing& Community Development Director THE CITY OF Dubuque " DUB E—E 111•1meriea C ft ti�av_.F Masterpiece on the Mississippi � pp zoo�•o 13 zoi7*20*zoi9 TO: Michael C. Van Milligen, City Manager FROM: Alexis M. Steger, Housing and Community Development Director SUBJECT: Work Session — Update on Housing Choice Voucher Program DATE: November 3, 2022 At the November 7t", 2022 work session at 5:30pm, Housing and Community Development Director Alexis Steger will be presenting on the Housing Choice Voucher Program, updates on acceptance rates, decrease in utilization, and other programs offered under the Rental Assistance Division of the Housing and Community Development Department. JIrr ■ "Nii� i', II ` ' (�f►• ouch pda s> �,1�k�� e is St'ger,,HousingI8 Community R6� �. w: '�y L��<�nne"oi,,.,.,,ol,r niro�tnr x7)" r )WIT •ot IoL hWo A-`A;64- 22 Z�— &-L- - 4 .Ao Assisted Housing Programs � � _ _ Front Exterior • Housing Choice Vouchers • Homeownership • Project Based Vouchers • Family Self -Sufficiency R 1 Ii• rL. - L ■ 1 J L � _ L 1 ti• � - - • ys� � - MIA r 1 L F m 1 PROJECT BASED VOUCHERS City of Dubuque PHA contracts with Rose of Dubuque, L.P. to provide rental assistance for 17 units in the 70 unit assisted living facility. it 2. 3. 2022 HOUSING CHOICE VOUCHER PROGRAM IMPACT Provide access to affordable housing for thy,,., HUD considers low (below 30% AM I) and extr 50% AMI) income Increase housing stability: assistance for about 9141W households ely low (below ny given month, we provide rental • - Tel NO Economic Impact: 1• million in rent payments, p pY of which is paid by voucher participants million • Recommend local policies • Monitor program plans/set priorities • Ill . t.r • Comply w/federal, state, local laws & HUD Regulations • Administer Funding • Provide decent, affordable housing Pctien 1� • Income, Family info • Selects rental unit • Pays portion of rent/mortgage debt and utilities • Complies with lease/family obligations Ten ri�tj INLLandlord • Selects/screen tenants • Receives assistance and tenant payment • Maintains Property • Enforces Lease HOUSING CHOICE VOUCHERS - GENERAL HUD REGULATIONS 1 . Lease timelines must match typical market lease —Currently 1 year 2. Tenant pays 30% of their income I Terminations —Can be Based on Eviction Behavior /Fraud A. Rent Reasonableness Check is required Jr. Income Limits —Annual re -exams 6. Inspections Required before move in 7. City Contract with Landlord (not the lease) HOUSING CHOICE VOUCHERS - FAMILY OBLIGATIONS � . Only Housing Unit, and 5. Utilities must be on and cannot be absent for more than 14 days 2. Uphold all lease terms 3. No unauthorized individuals living in the unit 4. Criminal Activity may open an Investigation current 6. Income Limits — Annual re -exams / Documents 7. Pay Deposit 8. Cannot Move in the first 12 months 9. No illegal drug use that interferes with peaceful use of neighboring units HOUSING CHOICE VOUCHERS - LANDLORD OBLIGATIONS 1 . Provide City with Utility 6. Provide proper notices and Unit Information 2. Follow all Iowa Laws I Enter into Agreement with the City 4. Maintain the unit 5. Uphold lease obligations to tenants /City 7. Report unpaid tenant portion of rent to the City $. Report any suspected fraud or unauthorized members of the household rot u 00 .aff develops local strategies to help voucher families obtain employment that leads to self-sufficiency. 0 The FSS program also provides access to child care, transportation, education, job development, and 0 household skills training, affirmatively furthering fair housing, financial and homeownership options. 61II4m:I a'a:lel►yil melylyl 0 In ho,4601: I I NOJ'lelel NU Till, Agm Your Homeownership Nvg' Fenn�e Dubuque Bakes � laanwtimN� Resident Advisory Board SOURCE OF INCOME ORDINANCE I • December 2014, City Council approved formation of Source of Income Committee • Members consisted of: City Boards & Commissions, Dubuque Area Landlords Association, Dubuque Chapter of NAACP and City Staff • 2-year study commenced • Final Report Submitted February 2017 RECOMMENDATIONS (6) • (1) Maintain the status quo • (2) Add a Source of Income definition to the current discrimination ordinance • (3) Create a Source of Income Housing Ordinance separate from discrimination ordinance • (4) Adopt and implement a mix of education / outreach programs to increase participation in the Housing Choice Voucher program • (5) Adopt and implement a mix of financial incentives to increase participation in the Housing Choice Voucher program • (6) Adopt and implement a mix of financial incentives / policies for creation of Housing Choice Voucher units throughout the community RECOMMENDATIONS • Option #4 Adopt and implement a mix of educational / outreach programs to increase participation in Housing Choice Voucher program. • Option #6. Adopt and implement a mix of financial incentives / policies for creation of Housing Choice Voucher units throughout community. ACTIONS - ONLY 34% OF UNITS ARE ACCEPTING • Housing Provider Education Program on Benefits of Voucher Participation • Video • Handouts • Landlord Incentive Programs • Vacant Unit, New Landlord Bonus, Damage Fund For additional details on Dubuque's Housing Choice Voucher Program, visit www.cityofdubuque.orglHCV or contact the City of Dubuque Housing and Community Development Department at 563.589.4230 or housing@cityofdubuque.org. We would be happy to answer any questions you might have. ACTIONS • Active webpage of Housing Choice Voucher Participating sites and available rental units • Collective self -monitoring by City, Housing providers, public and commissions • Foster Partnerships with private and non-profit housing developers to provide affordable housing units • Housing TIF incentives to build affordable housing • Support for Low Income, Workforce and Senior Housing Tax Credit Projects LOCATION OF ASSISTED UNITS VS ALL RENTAL LICENSED PROPERTY LOCATION OF ASSISTED HOUSING IN SCHOOL DISTRICTS • Dispersed well over High School and Middle School. • Expect to see increase arounc Carver Elementary with new units STILL MISSING RELEVANT DATA • Real Time Vacant Unit Information • Including those that accept Housing Choice Vouchers • Rent Rates for all Units — What is available that is affordable Jobs I Homes I Apartments I Cars I RVsf Boats I Merchandise I Services I Pets I Notices I Farm I Auctions I Garage Sales I Place an MA INCOME LIMITS FOR ASSISTED HOUSING PROGRAMS (Effective 04/18/2022) Extremelv Low Income (30% of median) Very Low Income (50% of median) Low Income (80% of median) 49,000 56,000 63,000 70,000 75,600 81,200 86,800 92,400 (Effective 12/01/2022) Zip Code 52003 ONLY OBR 1BR 2BR 3BR 4BR 5BR Voucher Payment 705 805 1055 1405 1815 2085 Standard (Effective 12/01/2022) Zip Code 52002 ONLY Voucher Payment SRO OBR 1 BR 2BR 3BR 4BR 5BR Standard 570 760 860 1130 1515 1945 2235 (Effective 12/01/2022) Zip Code 52001 ONLY Voucher Payment SRO OBR 1 BR 2BR 3BR 4BR 5BR Standard 490 655 740 980 1305 1680 1930 FMR SRO OBR 487 650 m 1t SRO 525 OBR 700 FMR SRO OBR 450 600 (Effective 10/01/2022) Zip Code 52003 ONLY 1BR 2BR 3BR 740 970 1290 (Effective 10/01/2022) Zip Code 52002 ONLY 1BR 2BR 3BR 790 1040 1390 (Effective 10/01/2022) Zip Code 52001 ONLY 1BR 2BR 3BR 680 900 1200 4BR 1650 4BR 1770 4BR 1530 5BR 1897 5BR 2035 5BR 1759 NT OF a4e II II y° z �� Illiilll ��_ e %'qA/ DEVEVO MYTH -BUSTING FOR HCV LANDLORDS GG Landlords can't charge HCV participants the same rent as their non-HCV tenants. 99 FALSE- Landlords can charge the full rent no matter who the tenant is. The housing authority must determine that the proposed rent is reasonable and is not higher than units in that area with similar amenities.' GG HCV Voucher tenants are problem tenants. » FALSE- Actually, HCV tenants are typically long-term tenants, living in a unit for 7-8 years on average. There are no documented statistics showing that HCV participants are any more likely to damage units or not pay rent than are non-HCV tenants. Landlords use their own screening criteria and should screen HCV tenants as they would screen any other tenant to avoid problem tenants.' GG It is almost impossible to evict a HCV tenant when they violate the lease.» FALSE- HCV tenants are bound by the terms of their rental agreements and are subject to eviction as is any non-HCV tenant.3 GG If you accept one HCV Program tenant, then all of your units must be rented to HCV Program tenants. 99 FALSE- Renting units) to HCV tenants does not in itself further obligate you to rent to other HCV tenants. For each vacancy, you should follow your established policies for screening prospective tenants. BENEFITS OF HOUSING CHOICE VOUCHER PROGRAM FOR LANDLORDS • You will get timely and dependable payments from the public housing authority (PHA). Participating, compliant landlords will receive timely and dependable housing assistance payments (HAP) each month once the HAP contract and lease are signed.4 • You will get your full rental payment. When a HCV tenant's income permanently changes, the portion of rent paid by the PHA and the tenant is adjusted to reflect this change. This provides financial protection to landlords in that if a HCV tenant's income decreases, there is a process for the PHA to pay a larger portion of the rent to the landlord so the landlord continues to receive a full rental payment.' • You will receive regular inspections. Some landlords appreciate the routine inspections because they provide an opportunity to check on the condition of the unit. This can result in identifying maintenance needs that may have otherwise gone unnoticed for some time. Landlords that own or manage properties across wide geographies in particular tend to appreciate the value in having a routine, objective inspection of their rental units. • You may request annual reasonable rent increases. Compliant landlords may request a rent increase at the annual anniversary of the HAP contract by written notice to the PHA.b • You have the opportunity to help low-income elderly, disabled, and veteran households, as well as families with children by providing affordable housing. More than 50 percent of vouchers serve elderly or non -elderly disabled families. About 45 percent of vouchers assist single -parent families. THE CITY OF 41 DUB E Masterpiece on the Mississippi The City of Dubuque seeks to increase the number of housing providers (landlords) that participate in Dubuque's Housing Choice Voucher (HCV) Program. Being an HCV housing provider offers significant benefits DID YOUKNOW7 and can also give you the satisfaction of making it possible for low- • Housing Choice Voucher rent income individuals and families to enjoy decent, safe, and sanitary payments are deposited directly into housing. More than half of all Dubuque HCV residents are elderly and/ the landlord's account. or disabled. • You screen and select your own tenants. The City may be able to Making sure everyone has a decent place to live is an important priority provide you with helpful tenant for the City of Dubuque. Dubuque's rental assistance programs are background information. designed so most participating households pay about 30% of their . You use your own lease and tenant monthly adjusted income towards their rent, keeping housing affordable. rules. Why is affordable housing important? When people have a safe, affordable place to live, they are able to reach their full potential. • You set your own rent! The Housing Choice Voucher can even pay a little WHAT IS THE HOUSING CHOICE VOUCHER PROGRAM? more for rent in certain areas of the city. The Housing Choice Voucher (HCV) Program is the federal government's . You may rent to as many or as few major program to assist families and individuals in finding decent, safe, and Housing Choice Voucher residents as affordable housing in the private sector. Since housing assistance is provided you choose. on behalf of the family or individual, participants are able to find their own housing, including single-family homes, townhouses, and apartments. The HCV • You manage the property according Program promotes fair, equitable housing by allowing voucher recipients more to Iowa Landlord/Tenant Law. None choices for qualify, safe, affordable housing. of your rights as a landlord change because of Housing Choice Voucher Dubuque's Housing Choice Voucher Program is a federally funded program occupancy. administered by the City of Dubuque Housing and Community Development Department and is designed to assist lower -income households with their The City of Dubuque offers free monthly rental payments. Voucher recipients choose their own units on the advertising of vacant HCV units. open market and they normally pay 30-40% of their income towards rent and . There is no inspection fee for units utilities. The remainder of the rent is paid directly to the landlord by the City of inspected for HCV participation Dubuque Housing and Community Development Department. and the HCV inspections meet the Many low-income households in our community rely on housing providers who requirements for the rental licensing inspection. are willing to participate in the program. The subsidy paid on behalf of the resident helps households to rent in many different neighborhoods in Dubuque. /;lA'lll M1%lll�� !11 If you have a vacant unit to rent, consider advertising 'ZZ "Housing Vouchers Welcome" or "will accept Housing •• _Aft"M Vouchers." You can list your vacant units with the �1 i City for free! You still have all rights to select or deny r--'� the applicant for your housing unit based on your own criteria. As you probably know, housing providers are required to conduct a background check on prospective tenants before renting to them, through this program or otherwise. Upon request, the City can provide you with that background check for HCV clients. Once you have selected your tenant, the HCV participant will have a "Request for Tenancy Approval" 1' packet for you to complete the necessary forms. When those forms are returned to our office, along with the r..., lease (leaving only the dates blank), City staff will y, contact you to schedule an initial inspection to ensure that it meets the Property Maintenance Code of the City P Y Y of Dubuque. Once the unit passes inspection, and the lease and contract are completed, the housing provider will start to receive payments on behalf of the resident on the date agreed upon by all parties. The lease is an agreement between the resident and the housing provider for a one-year period. The contract is an agreement between the housing provider and the City of Dubuque Housing and Community Development Department. The resident is responsible for the payment of the security deposit directly to the housing provider. j' The amount of the security deposit should be the same 3 'L as what you charge other non -assisted tenants. r� P.. J S \� 9 confident in this missionof maintaining & enhancing a successful HCV - contactPlease 1 we will provide c1 • • for yourpeers -.epting vouchers;providing real life exam• • the best EQUAL HOUSING OPPORTUNITY 11r, BRI � MAW III►NIIIIA1111