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COUNTY OF SAN MATEO
Inter-Departmental Correspondence
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Department of Housing
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DATE:
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Nov. 30, 2007
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BOARD MEETING DATE:
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Dec. 18, 2007
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SPECIAL NOTICE/HEARING:
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None
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VOTE REQUIRED:
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Majority
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TO:
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Honorable Board of Supervisors, (Sitting as the Board of Commissioners of the Housing Authority)
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FROM:
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Duane Bay, Director, Department of Housing
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SUBJECT:
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Flat Rent Schedule for the Housing Authority’s Public Housing Program
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RECOMMENDATION:
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Adopt a Resolution approving a revised Flat Rent schedule for the Housing Authority’s Public Housing Program.
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VISION ALIGNMENT:
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Commitment: Offering a full range of housing choices.
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Goal(s): #9. Housing exists for people of all income levels and for all generations of families.
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BACKGROUND:
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According to HUD regulations, Housing Authorities must ensure that flat rents continue to mirror market rent values. In the Housing Authority’s Public Housing Program, flat rents occur when a public housing resident’s household income exceeds the maximum amount which would entitle that family to a rent subsidy. The flat rent approximates the amount that would be the market rent for the unit. Flat rents are designed to encourage self-sufficiency and to avoid creating disincentives for continued residency by families who are attempting to become economically self-sufficient.
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DISCUSSION:
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In April 2007, the Housing Authority received a Consolidated Review audit from HUD. The auditors stated the Housing Authority’s current Flat Rent schedule is not accurately reflecting current market rents for comparable units. The Housing Authority must update its Flat Rent schedule for its Public Housing Program and obtain Board approval for it.
The Housing Authority conducted a market rent survey and found that its flat rent schedule is significantly below market rates. While rate adjustments of 15% - 20% are justifiable, the Housing Authority is recommending an 8% increase at this time in order to protect low income families from a single, very large increase. Hereinafter, the rents will be reviewed annually and a further adjustment may be implemented each year. This action of the Board will enable the Housing Authority to implement a new Flat Rent schedule and close the audit finding.
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County Counsel has reviewed and approved the Resolution as to form.
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FISCAL IMPACT:
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There is no Net County Cost associated with this action.
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