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Landlord Incentives for Accepting Housing Assistance — Damage Protection Program EndingCity of Dubuque City Council Meeting Consent Items # 015. Copyrighted June 5, 2023 ITEM TITLE: Landlord Incentives for Accepting Housing Assistance — Damage Protection Program Ending SUMMARY: City Manager providing City Council with information to receive and file regarding the finalization of programs to incentivize landlords to accept housing assistance. SUGGESTED Suggested Disposition: Receive and File DISPOSITION: ATTACHMENTS: Description MVM Memo Staff Memo Type City Manager Memo Staff Memo THE C Dubuque DUjIBQTE WAWca 914 Masterpiece on the Mississippi YP pp aoo�•o 13 z0i7*20*�oi9 TO: The Honorable Mayor and City Council Members FROM: Michael C. Van Milligen, City Manager SUBJECT: Landlord Incentives for Accepting Housing Assistance — Damage Protection Program Ending DATE: June 1, 2023 Housing & Community Development Director Alexis Steger is providing City Council with information to receive and file regarding the finalization of programs to incentivize landlords to accept housing assistance. Mic ael C. Van Milligen MCVM:sv Attachment cc: Crenna Brumwell, City Attorney Cori Burbach, Assistant City Manager Alexis Steger, Housing & Community Development Director Dubuque THE CITY OF DUB E All•Meriea Citl Masterpiece on the Mississippi � pp z°°�•z°iZxz° 13 2017*2019 TO: Michael C. Van Milligen, City Manager FROM: Alexis M. Steger, Housing and Community Development Director DATE: June 1, 2023 RE: Landlord Incentives for Accepting Housing Assistance — Damage Protection Program Ending INTRODUCTION The purpose of this memo is to provide City Council with information regarding the finalization of programs to incentivize landlords to accept housing assistance. BACKGROUND Since 2014, the City of Dubuque has been working towards greater landlord acceptance of Housing Choice Vouchers to create equitable choice in housing for those receiving housing assistance. The Analysis of Impediments to Fair Housing Choice and the Equitable Poverty Reduction and Prevention Plan recommended landlord incentives to try to increase acceptance, or to pass a Source of Income ordinance to remove discrimination against those needing housing assistance. The Housing & Community Development Department was awarded two rounds of CARES Act funding to be used to help keep Section 8 programs running during the pandemic. The funds were used to go paperless to ensure the program can continue if employees were quarantined at home, and to support briefings and meetings virtually. One of the approved uses for this funding was to create landlord incentive programs to encourage the acceptance of Housing Choice Vouchers. The Housing and Community Development Department researched programs being used by other cities across the nation and which were experiencing the most effective results per the U.S. Department of Housing and Urban Development. After reviewing this information it was determined that the City of Dubuque may benefit from more than one landlord incentive program. 1 The first program is a new landlord signing bonus. This is available to landlords in census tracts with low HCV acceptance that have not leased to a HCV participant since January 1, 2012, and successful lease an HCV participant. The second program is a no -loss vacancy program. This is available to landlords in census tracts with low HCV acceptance that have not leased to a HCV participant since January 1, 2012, and successfully lease an HCV participant. To qualify a landlord must inform the Housing & Community Development Department of an upcoming vacancy to advertise as a unit accepting Housing Choice Vouchers. Any private advertising must state "accepting Housing Choice Vouchers" as well. Up to one month of rent will be reimbursed to a landlord that holds a unit so that an assisted client can lease up in that unit. Both programs are available citywide to any units that have 3+ bedrooms and meet the other requirements of the programs. DISCUSSION The first program was a new landlord signing bonus. This was available to landlords in census tracts with low HCV acceptance that have not leased to a HCV participant since January 1, 2012, and successful lease an HCV participant. The second program was a no -loss vacancy program. This is available to landlords in census tracts with low HCV acceptance that have not leased to a HCV participant since January 1, 2012, and successfully lease an HCV participant. To qualify a landlord must inform the Housing & Community Development Department of an upcoming vacancy to advertise as a unit accepting Housing Choice Vouchers. Any private advertising must state "accepting Housing Choice Vouchers" as well. Up to one month of rent was reimbursed to a landlord that held a unit so that an assisted client can lease up in that unit. Both programs were available citywide to any units that have 3+ bedrooms and meet the other requirements of the programs. These two landlord incentive programs ended December 31, 2021 with very little success. With only 6 new landlords participating in the HCV program. In addition to these programs, a damage reimbursement fund was created with funding from the Community Foundation of Greater Dubuque in the amount of $54,000. This fund provided up to $2,500 per unit for a landlord that accepts housing assistance and experiences damage to the unit in excess of the required deposit. This was available to landlords in the County of Dubuque as well as the City. The idea of this program was to incentivize landlords to accept housing assistance at the time of greatest need for rapid re -housing of residents. 2 The damage protection fund went unused by landlords since April 1, 2021, so over two years without a draw from the program. Two landlords applied for the funding, one did not respond when the inspection was scheduled to identify the damage and the second was denied due to the damage being the landlords' responsibility (long term water leak reported by the tenant to the landlord and never addressed). The damage protection fund is an inactive program with no effect on the HCV program in the past 2 years so it is ending and the funds are being returned to the Community Foundation of Greater Dubuque to meet other community needs. One such need is rental deposit assistance, for which the Community Foundation of Greater Dubuque has committed to providing $25,000 to the City of Dubuque to pilot a new program to address this need. These new funds from the Community Foundation will be used as matching funds for an application to the Iowa Finance Authority to start the pilot program that will provide deposit assistance to the homeless or those at risk of homelessness. RECOMMENDATION I respectfully request City Council receive and file this document. 3