COUNTY OF SAN MATEO

Inter-Departmental Correspondence

Department of Housing

DATE:

October 8, 2009

BOARD MEETING DATE:

October 20, 2009

SPECIAL NOTICE/HEARING:

Public Hearing

VOTE REQUIRED:

Majority

TO:

Honorable Board of Supervisors (Sitting as the Board of Commissioners of the Housing Authority)

FROM:

Duane Bay, Director

SUBJECT:

Amendments to the Housing Authority’s Moving to Work (MTW) Annual Plan for FY 2009-2010

RECOMMENDATION:

Acting as the governing board of the Housing Authority of the County of San Mateo and after conducting the public hearing, adopt Resolution 2009-11:

1. Amending the “Moving To Work” Annual Plan to include specific rule changes for project-basing vouchers after the Public Housing disposition process and specific revisions to the use of the Housing Authority’s Public Housing Capital Funds and the American Recovery and Reinvestment Act (ARRA) funds; and

2. Authorizing the Director of the Department of Housing or the Director’s designee to execute any documents required by the U.S. Department of Housing and Urban Development (HUD) to certify the Plan amendments.

BACKGROUND:

Moving to Work (MTW) is a demonstration program that offers participating housing authorities the opportunity to design and test innovative, locally designed housing and self-sufficiency strategies for low-income families by allowing exemptions from certain housing regulations. The Housing Authority of the County of San Mateo (HACSM) is one of 31 housing agencies nationwide that participates in this program.

On March 31, 2009, the Board adopted the Housing Authority’s Moving to Work Annual Plan, which covers the period of July 1, 2009 through June 30, 2010. The adopted FY 2009-2010 MTW Annual Plan, which was subsequently approved by HUD, permits the revision of HUD project-based voucher rules so that HACSM may project-base vouchers at 100% of its 180 Public Housing units that will undergo disposition from Public Housing status. Additional detailed rule changes are necessary for this voucher conversion.

Also on March 31, 2009, the Board adopted a resolution authorizing the acceptance of American Recovery and Reinvestment (ARRA) Capital Grant Funds in the amount of $366,511 to HACSM. The use of these funds requires that the Plan be updated.

In accordance with the Department of Housing and Urban Development (HUD) guidelines, housing authorities may initiate an amendment process to ensure their Annual Plan reflects changes that occur during the plan year.

DISCUSSION:

The Plan amendment process was completed in accordance with HUD regulations and requirements, including that all documents be made available to the public for review for a prescribed period of time prior to adoption by the governing board. A public meeting was advertised in local newspapers and held on October 1, 2009. No comments were made about the plan amendment, but staff were able to respond to other questions attendees had about affordable housing in San Mateo County.

The additional voucher program rule changes necessary to successfully complete the Public Housing disposition process are:

1. To eliminate the competitive process for allocation of Project-Based Vouchers (PBV) to former Public Housing units;

2. To waive the 12-month minimum stay requirement in PBV rules for residents in Public Housing units at the time of issuance of replacement vouchers;

3. To accept lower Housing Assistance Payments by modifying PBV rules for in-place residents at former Public Housing developments who are in the process of being transferred from larger units than their current family size requires;

4. To establish flat rent or market rate policy by modifying PBV rules for in-place residents at former Public Housing developments.

Additionally, the ARRA grant and accompanying Five-Year Capital Funds Plan require reallocation to complete the following projects at HACSM’s Public Housing properties: community center, replacement of sidewalks, tree trimming and landscaping.

County Counsel has reviewed and approved the Resolution as to form.

Approval of this Resolution contributes to the Shared Vision 2025 outcome of a Livable Community by enabling the rapid expenditure of stimulus funds for capital projects benefiting Public Housing residents and by enabling Public Housing residents the opportunity to obtain Project-Based/Housing Choice Vouchers.

FISCAL IMPACT:

There is no Net County Cost associated with the action. All funds required to operate the program are provided by the U.S. Department of Housing and Urban Development.