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Award of CY2023 HAP Set-Aside Funding from HUDCity of Dubuque City Council Meeting ITEM TITLE SUMMARY: SUGGESTED DISPOSITION: ATTACHMENTS: Description MVM Memo Copyrighted December 4, 2023 Consent Items # 018. Award of CY2023 HAP Set -Aside Funding from HUD City Manager recommending City Council approval to accept the CY2023 HAP Set -Aside Funding in the amount of $122,748. RESOLUTION Authorizing the Director of Housing and Community Development to execute the acceptance of the Notice of Award of the CY2023 HAP Set -Aside Funds Suggested Disposition: Receive and File; Adopt Resolution(s) Memo Resolution Set -Aside Funding Application Award Notification Funding Calculation Type City Manager Memo Staff Memo Resolutions 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: Award of CY2023 HAP Set -Aside Funding from HUD DATE: November 29, 2023 Dubuque WAWca 914 ii 2007-2012.2013 2017*2019 Housing and Community Development Director Alexis Steger is recommending City Council approval to accept the CY2023 HAP Set -Aside Funding in the amount of $122,748. The City of Dubuque Housing & Community Development Department was awarded CY2023 HAP Set -Aside funds from HUD due to significant increases in renewal costs due to portability for tenant -based rental assistance under the Housing Choice Voucher (HCV) Program. I concur with the recommendation and respectfully request Mayor and City Council approval. k�4 Mic ael C. Van Milligen MCVM:sv Attachment CC' Crenna Brumwell, City Attorney Cori Burbach, Assistant City Manager Alexis Steger, Housing and Community Development Director THE CITY OF DUB.: UE Masterpiece on the Mississippi TO: Michael C. Van Milligen, City Manager FROM: Alexis Steger, Housing and Community Development Director DATE: November 27, 2023 RE: Award of CY2023 HAP Set -Aside Funding from HUD Dubuque MI-Amedu CITY VIICMiaLQW.:It.A':Lt 2007-2012-2013 2017*2019 INTRODUCTION The City of Dubuque Housing & Community Development Department was awarded CY2023 HAP Set -Aside funds from HUD due to significant increases in renewal costs due to portability for tenant -based rental assistance under the Housing Choice Voucher (HCV) Program. BACKGROUND In June 2023 the Financial Management Division at HUD sent out an opportunity for public housing agencies (PHAs) to apply for 2023 HAP Set -aside funding. The applications were available for 5 separate categories: 2b. Portability • 3a. Project Based Voucher (PBV) • 3b. MTW New Cohort • 5. Lower -than -average Leasing 7. NLT Inspection Withheld Housing Assistance Payments (HAP) The City of Dubuque submitted an application for funding under category 2b. Portability. In order to be eligible for the funding under that category, the PHA must have experienced a significant increase in renewal costs due to portability for tenant -based rental assistance under Section 8 ( r ) of the Act. HUD used a specific formula & re-benchmarking period to determine eligibility and calculate funding under this category. It was determined that since the Portability average HAP for the City of Dubuque PHA exceeded 110% of the HCV Program - wide average HAP per unit cost (PUC) for the re-benchmarking period, the PHA was deemed eligible for Set -Aside funding. Based on the above determination, HUD awarded the City of Dubuque CY2023 HAP Set - Aside funding in the amount of $122,748 under the Portability category based on demonstrated need. HUD used the level of program reserves calculated by the December 31, 2022, and June 30, 2023 HAP cash reconciliations to determine final amount awarded. RECOMMENDATION I respectfully request approval to accept the CY2023 HAP Set -Aside Funding in the amount of $122, 748. service People Integrity Responsibility Innovation Teamwork Prepared by Gina Hodgson, Assisted Housing Spvsr, 350 W 6th Street, #312, Dubuque, IA 52001, (563) 690-6096 Return to Adrienne N. Sreitfelder, City C4erk, 50 W. 13'h St., Dubuque, IA 52001, (563) 589-4100 RESOLUTION NO. 400-23 RESOLUTION AUTHORIZING THE DIRECTOR OF HOUSING AND COMMUNITY DEVELOPMENT TO EXECUTE THE ACCEPTANCE OF THE NOTICE OF AWARD OF THE CY2023 HAP SET -ASIDE FUNDS Whereas, the U.S. Department of Housing and Urban Development has published a PIH Notice 2023-07, outlining the funding opportunity for 2023 HAP Set - aside; and Whereas, the City of Dubuque submitted an application for the 2023 HAP Set - aside under category 2.b. Portability; and Whereas, it was determined by HUD that the City of Dubuque was eligible for such funding under category: Portability; and Whereas, HUD has calculated the final award amount for the City of Dubuque in the amount of $122,748. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF DUBUQUE, IOWA THAT: Section 1: That the Director of Housing and Community Development is hereby authorized and directed to execute the Notice of Award for the HUD 2023 HAP Set - aside. Passed, approved, and adopted this 4th day of December 2023. Y� Katy A. Wethal, Mayor Pro Tem Attest: Adrienne N. Breitfelder, City Clerk DocuSign Envelope ID: 6458AEC6-B402-4A82-A16D-E6F419A41444 Appendix H CY 2023 Housing Choice Voucher Program Application for $200 Million HAP Set -Aside for Categories 2b — Portability; 3a — Project -Based Vouchers; 3b — MTW New Cohorts; 4 - HUD-VASH; 5 — Lower -than -average Leasing; and/or 7 — NLT Inspection Withheld Housing Assistance Payments. Name of PHA: City of Dubuque PHA Number: IA087 Executive Director: Alexis Steger CHECK ALL BOXES THAT APPLY X Category 2b: Portability Category 3a: Project -Based Vouchers. (Must submit Appendix I) Category 3b: MTW New Cohorts. (Must submit Appendix I and/or J) Category 4: HUD-VASH (Please also check a. and/or b. below, as applicable): a. Per Unit Cost Increase: PHAs whose program -wide funded CY 2023 HAP PUC is less than their current HUD-VASH HAP PUC based on their latest HUD-VASH HAP expenses in CY 2022, and/or b. Leasing Increase: PHAs whose total HUD-VASH leasing for CY 2023 will exceed the leasing level included in their renewal funding plus the leasing that will be supported by the RNP and HUD -Held Program Reserves. Category 5: Lower -than -average Leasing. Category 7: NLT Inspection Withheld Housing Assistance Payments. (see note*) PHA confirms VMS NLT Withheld HAP Entries have been completed as described Category 7 portion of Section 12. Documentation requirements and deadlines for each of the above categories are contained in Section 12 of the 2023 HCV Implementation Notice. *Note —Category 7, NLT Inspection Withheld Housing Assistance Payments is the only category that requires the submission of an attachment with this appendix. Attachments required for Categories 3a and 3b, PBV and MTW New Cohorts, respectively, must be submitted with Appendices I and/or J, per Notice instructions. This certification must be signed by the appropriate PHA official and returned. Certification: I hereby certify that all the information stated herein, as well as any information provided in the accompaniment herewith, is true and accurate. Warning: Anyone who knowingly submits a false claim or makes a false statement is subject to criminal and/or civil penalties, including confinement for up to 5 years, fines, and civil and administrative penalties (18 U.S.C. §§ 287, 1001, 1010, 1012; 31 U.S.C. §3729, 3802). Gina Hodgson PHA Point of Contact Signature of Executive Director Alexis Steger Executive Director Name ghodgson@cityofdubuque.org PHA Point of Contact Email 6/ 14/2023 Date 563-690-6072 Contact Phone Number QP9, SMENT,,11 U.S. DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT aG IIIIIIII �� WASHINGTON, DC 20410-5000 9B4N DEVEV�Q OFFICE OF PUBLIC AND INDIAN HOUSING November 16, 2023 Dear Executive Director Subject: Housing Choice Voucher Programs Calendar Year (CY) 2023 HAP Set -Aside Request The Department has reviewed your request(s) for adjustment funding under the CY 2023 HAP Set -Aside (as outlined in PIH Notice 2023-07) for the following categories: • Unforeseen Circumstances, • Portability, • Project -Based Vouchers, • MTW New Cohorts, • HUD-VASH, • Lower than Average Leasing, and • NLT Inspection Withheld. Provided with this letter is the "Summary — CY 2023 HAP Set -Aside" enclosure, that includes your PHA's eligibility results for each category, except for the Disaster category, which will be transmitted separately. Also, HUD will issue individual enclosures to your PHA separately for each category of adjustments your PHA applied for. Eligibilities under the CY 2023 HAP Set -Aside categories were based on need, for which we use the level of program reserves calculated by the December 31, 2022, and June 30, 2023 HAP cash reconciliations. If your PHA was denied funding for any of the categories applied, the individual category enclosure(s) provided in a separate email will reflect the reason for the denial. Applications denied funding under any category of the CY 2023 HAP Set -Aside were denied as a result of one of the following reasons: (1) your PHA's application failed to meet the criteria outlined in the Notice for a particular category, or (2) your PHA was determined eligible for a particular category, but the HUD calculated amount resulted in $0 funding being provided. Please note, in keeping with cash management principles, the funding awarded to your PHA under the HAP Set -Aside will be fully obligated and available for meeting your PHA's funding needs, but like your regular budget authority, it will not immediately be disbursed in a lump sum. HAP Set -Aside funds will be disbursed based on need in order to meet Treasury's cash management requirements (see PIH Notice 2017-06 for details). For example, if the PHA's HAP disbursement conveyed in the Financial Management Center's (FMC) Intent to Disburse letter is insufficient to cover immediate HAP costs, the PHA must contact their Financial Analyst at the FMC to request additional HAP funds from the HAP Set -Aside and/or undisbursed budget authority. Please remember that any request for an additional disbursement must include www.hud.gov espanol.hud.gov expense information not yet reported in the Voucher Management System (VMS) as well as updated RNP information. The information submitted with the request must demonstrate the need for an additional disbursement. If you have any questions concerning the CY 2023 HAP Set -Aside, please contact the Financial Management Division (FMD) at pihfinancialmanagementdivisionghud.gov. Thank you for your continued participation in the Housing Choice Voucher Programs (HCVP) to serve the needs of your community. Sincerely, h 6w�.aRm"m Miguel A. Fontana °�H..V ; �° ..,,, q = Ho�mi�y V€�.3►Financial M-59-0rj;�qn. 4U =0:gNw Ream: Iammvrm4 gOhdmwit Miguel A. Fontanez Director Housing Voucher Financial Management Division Enclosure SUMMARY - CY 2023 SET -ASIDE CATEGORIES 2A THROUGH 7 Line 1 PHA NUMBER 2 PHA NAME SUMMARY OF FUNDING ELIGIBILITY CATEGORIES: IA087 DUBUQUE DEPT OF HUMAN RIGHTS 3 2a. UNFORESEEN CIRCUMSTANCES 4 2b. PORTABILITY 5 3a PROJECT -BASED VOUCHERS 6 3b PBV MTW New Cohort 7 4 HUD-VASH 8 5 LOWER THAN AVERAGE LEASING 9 6 DISASTER 10 7 NLT Inspection Withheld 11 TOTAL ELIGIBILITY 12 EXCESS PROGRAM RESERVES AFTER CY 2023 RENEWAL OFFSET 13 NET FUNDING ELIGIBILITY (Categories 2a, 2b, 3a, 3b, 4, 5 and 7) 14 SHORTFALL FUNDING (Category 1) 15 NET AWARD AFTER SHORTFALL FUNDING 16 ELIGIBILITY $ 122,748 $ 122,748 $ 122,748 $ 122,748 COMMENT: This enclosure reflects Net Funding Eligibility after Program Reserves, including all categories except Disaster, which applications are due on December 29, 2023. Awards have been reduced in part or in total if Shortfall funds were received.