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Proposed Housing Choice Voucher/Section 8 Administrative Plan Copyright 2014 City of Dubuque Consent Items # 19. ITEM TITLE: Proposed Housing Choice Voucher/Section 8 Administrative Plan Changes SUMMARY: City Manager approval of two changes to the Housing Choice Voucher/Section 8 Administrative Plan related to increasing the voucher unit size and adjusting the standards on fair market rents. SUGGESTED DISPOSITION: Suggested Disposition: Receive and File; Approve ATTACHMENTS: Description Type ❑ Housing Choice Voucher Administrative Plan Changes-MVM Memo City Manager Memo ❑ Staff Memo Staff Memo THE CITY OF Dubuque UBE I erica .i Masterpiece on the Mississippi 2007-2012-2013 TO: The Honorable Mayor and City Council Members FROM: Michael C. Van Milligen, City Manager SUBJECT: Proposed Administrative Plan Changes for Housing Choice Voucher/Section 8 for City Council Approval DATE: November 10, 2015 Housing and Community Development Department Director Alvin Nash recommends City Council approval of two changes to the Housing Choice Voucher/Section 8 Administrative Plan. The two changes have to do with increasing the voucher unit size and adjusting the standards on fair market rents. Staff has determined that these changes will give tenants better options and better quality units. I concur with the recommendation and respectfully request Mayor and City Council approval. Mic ael C. Van Milligen MCVM:jh Attachment cc: Barry Lindahl, City Attorney Cindy Steinhauser, Assistant City Manager Teri Goodmann, Assistant City Manager Alvin Nash, Housing and Community Development Department Director THE CITY OF Dubuque fi3iii DE '1111► uB EMasterpiece on the Mississippi 2007.2012•2013 abetter way of living DATE: November 10, 2015 TO: Mike Van Milligen FROM: Alvin Nash, Housing and Community Development Directors RE: Proposed Administrative Plan Changes for Housing Choice Voucher/Section 8 for City Council Approval INTRODUCTION/BACKGROUND In order to make changes to the Administrative Plan, it is a requirement that the changes be approved by the Resident Advisory Board, the Housing Commission and final approval by City Council. The Housing Voucher staff has determined that two changes need to be made in order to better serve individuals and families and manage the program within budget. The two changes have to do with increasing the voucher unit size and adjusting the standards on fair market rents. Staff has determined that these changes will give tenants better options and better quality units. DISCUSSION In addition to getting approval from the Resident Advisory Board and the Housing Commission, staff has consulted with HUD and they concur that the changes are reasonable and will benefit our program participants. RECOMMENDATION/CONCLUSION Voucher Unit Size The Administrative Plan currently reads: The first change on page 5-12 of the first attachment, takes the language from this: The PHA will assign one bedroom for each two persons within the household, except in the following circumstances: Parent(s) residing with an adult or minor child shall be allocated separate bedrooms resulting in a two bedroom Voucher. Parents who are residing with more than one adult or minor children shall be allocated Voucher size allowing for two persons per bedroom. Dubuque@Home is an initiative of the City of Dubuque Housing&Community Development Department 350 W.6t"St.,Dubuque,Iowa 52001 1 Phone:563.589.4239 1 www.cityofdubuque.org/dubuqueathome Adding additional persons to the household shall not increase the voucher issuance until the annual recertification or unit change, if needed, as long as adding the person does not overcrowd the current unit. The dwelling unit must have at least one bedroom or living/sleeping room for each two persons. To read as follows: Head of Household residing with an adult or minor child shall be allocated separate bedrooms resulting in a two bedroom Voucher. Head of Household who is residing with more than one adult or minor child under the age of 10 years old shall be allocated Voucher size allowing for two persons per bedroom and a separate bedroom for head of household that includes spouse/cohabitant. In determining Voucher size for parent(s) including cohabitant, a separate bedroom shall be allocated for the head of household/spouse/cohabitant and a separate bedroom for more than one adult or minor children of opposite sex over the age of 10 years old. Same sex adult or minor children shall be allocated one bedroom for each two persons. Voucher Payment Standards The Administrative Plan currently reads: The second change on page 16-2, affects Voucher Payment Standards, and is in the second attachment. It takes the language from this: HUD allows Housing Agencies the authority to set the Voucher Payment Standards for units at levels between 90 percent and 110 per cent of the published Fair Market Rents for the appropriate unit sizes. Each year HUD publishes Fair Market Rents for the Dubuque Metropolitan Area. Each year the PHA will review the Fair Market Rent data to ensure the Voucher Payment Standard is within the range allowed by HUD. Unless the Voucher Payment Standards fall below 90% or over 110% of the Fair Market Rents, the payment standards will be changed effective January 1 of the following year in an attempt to keep the standards at 90% to 110% of the Fair Market Rents. Changes to payment standard amounts will be effective on January 1 st of every year unless, based on the proposed FMRs, it appears that one or more of the PHA's current payment standard amounts falls below 90% of the FMR published. In that case, the PHAs payment standards will be effective October 1 st instead of January 1 st. If the PHA has already processed reexaminations that will be effective on or after October 1 st, and the effective date of the payment standards is October 1 st, the PHA will make retroactive adjustments to any such reexaminations if the new payment standard amount is higher than the one used by the PHA at the time the reexamination was originally processed. To read as follows: HUD allows Housing Agencies the authority to set the Voucher Payment Standards for units at levels between 90 percent and 110 per cent of the published Fair Market Rents for the appropriate unit sizes. Each year HUD publishes Fair Market Rents for the Dubuque Metropolitan Area. Each year the PHA will review the Fair Market Rent data Dubuque@Home is an initiative of the City of Dubuque Housing&Community Development Department 350 W.6`h St.,Dubuque,Iowa 52001 1 Phone: 563.559.4239 1 www.cityofdubuque.org/dubuqueathome to ensure the Voucher Payment Standard is within the range allowed by HUD. Unless the Voucher Payment Standards fall below 90% or over 110% of the Fair Market Rents, the payment standards will be changed effective January 1 of the following year in an attempt to keep the standards at 90% to 110% of the Fair Market Rents. The standards will be determined using the most recent leasing data and success rates of participants issued Vouchers indicating a reasonable length of time (within 60 days) to locate a suitable unit while taking into account the Housing Assistance Payments Budget Authority allocated to the PHA. The PHA will monitor rent burdens of families assisted in the PHA's voucher program. If 40 percent or more of such families occupying units of any particular unit size are paying more than 30 percent of adjusted income as the family's share, the PHA will review the payment standard amount for that unit size and may modify the payment standard amounts. If one or more of the PHA's current payment standard amounts falls below 90% or over 110% of the FMR published, the PHAs payment standards will be changed as of the published FMR effective date instead of January 1 st. If the PHA has already processed reexaminations, the PHA will make retroactive adjustments to any such reexaminations. BUDGETIMPACT These changes require no additional funds, and has no impact on the approved budget. ACTION STEP Request City Council approval of the recommended changes to the Administrative Plan. Dubuque@Home is an initiative of the City of Dubuque Housing&Community Development Department 350 W.6`h St.,Dubuque,Iowa 52001 1 Phone: 563.559.4239 1 www.cityofdubuque.org/dubuqueathome