THA GOVERNING BOARD QUARTERLY UPDATE MEMO 01-26-23.DOCX
City of Tempe — Tempe Housing Authority Quarterly Meeting (2023-01-26)
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MEMORANDUM TO: Tempe Housing Authority Governing Board FROM: Irma Hollamby, Deputy Community Health & Human Services Director DATE: January 26, 2023 SUBJECT: Housing Authority Governing Board Quarterly Update Background The following memorandum provides updates on the Tempe Housing Authority’s (THA) current events, financials, program performance, and other Housing Services Division related activities. THA administers approximately $13,078,554 in housing subsidies from HUD. These housing subsidies include: Housing Choice Voucher program - 1,109 vouchers o 15 of these are committed to Valor on Eighth as Project Based Vouchers for veterans HUD-Veterans Affairs Supportive Housing program – 20 vouchers Mainstream program – 64 vouchers Family Unification Program – 30 vouchers Emergency Housing Vouchers – 50 vouchers Family Self Sufficiency Program Financial Update THA operates with funding allocated through the Congressional budget process to HUD and is then committed to the Agency based on the established funding formula. Tempe’s FY 2022 total budget authority, the dollar amount contracted by HUD with the City of Tempe to administer in the form of paying housing assistance payments, was $9.4 million, and total reserves as of 12/31/21 was $1.5 million (15.94% of budget authority). THA’s budget utilization for FY 2022 was $10,155,637. Tempe’s FY 2023 estimated total budget authority is $13,078,554. To date, THA budget utilization is 100.21%. HCV Leasing and Per Unit Costs leasing percentage was 77.10% with 819 out of THA’s 1092 vouchers leased up in the private market. THA’s current average Per Unit Cost is $1,021.75. Housing Program Update Voucher Programs HUD-VASH – The HUD-VASH program is a collaboration between HUD and the Department of Veterans Affairs. This program provides housing assistance for VA eligible Veterans who meet the McKinney Act definition of homelessness. Eligible participants participate in case management, supportive services, and treatment recommendations needed to successfully maintain recovery and sustain housing in the community. This program currently has 10 families housed. THA increased its capacity to 20 in this voucher type effective February 2023. MAINSTREAM – Mainstream is a HUD program designed specifically to assist non-elderly persons with disabilities who are at serious risk of institutionalization, homeless, or at risk of becoming homeless. This program currently has 47 families housed and 15 households actively seeking units. FAMILY UNIFICATION PROGRAM – The Family Unification Program (FUP) is a HUD program specifically designed to assist two distinct populations: o Families for whom the lack of adequate housing is a primary factor in: The imminent placement of the family’s child or children in out-of-home care, or The delay in the discharge of the child or children to the family from out-of-home care. o Foster youth at least 18 years old and not more than 24 years old and who have aged out of the system or will leave foster care within 90 days. The duration of housing assistance is not to exceed 36 months. This program is currently processing additional referrals received from the Department of Children’s Services. This program currently has 19 families housed and 6 households actively seeking units. EMERGENCY HOUSING VOUCHERS – Tempe received an allocation of 50 vouchers These are limited, one time use vouchers specifically for individuals/households impacted by COVID-19. They are available for a period of up to 10 years in order to ensure continued stability. The program is operated in conjunction with the Regional Continuum of Care and Coordinated Entry. All participants will be connected with Family Self Sufficiency and Workforce Development programming. To date, THA received 153 active referrals, 11 are actively seeking units, and the remaining 7 are finalizing their eligibility processing, and 35 have found units. STABILITY HOUSING VOUCHERS – HUD is moving closer to awarding more than $43 million under this new type of housing voucher. The agency has detailed its noncompetitive allocation strategy and program requirements for 4,000 the new Stability vouchers that seek to get some of the most vulnerable people into housing. The formula will be based on estimates of persons experiencing or at risk of homelessness by geography. The program requires housing authorities to, like the Emergency Housing Vouchers, partner with health agencies and the Regional Continuum of Care to coordinate efforts to reduce homelessness and help people move off the streets into permanent housing. THA has obtained a Letter of Support from the Maricopa Continuum of Care and has applied to HUD for the vouchers. “FAIR SHARE ALLOTMENT” HOUSING CHOICE VOUCHERS – On September 23, 2022, HUD announced the award of more than 19,000 new housing choice vouchers to nearly 2,000 public housing agencies. These vouchers are part of the nearly 100,000 new vouchers the Administration has been appropriated under the American Rescue Plan and the FY 2022 budget. Tempe received 17 new vouchers. Other Housing Related Activities & Information PAYMENT STANDARD INCREASES EFFECTIVE JANUARY 1, 2023 – Each Housing Authority determines Payment Standards -- the amount that is needed to support the reasonable cost of a rental unit, based on bedroom size, within the local market. These Payment standards are used to calculate the housing assistance payments (HAP) the Housing Authority pays to the owner of the home or the rental unit on behalf of the family leasing the unit. Due to economic conditions and escalating rents in the Tempe market area, the THA increased payment standards for its jurisdiction to 110% of the published Fair Market Rents for all bedroom sizes. CONTINUED WAIVERS – HUD pandemic-era waivers to support rental housing affordability will continue through December 31, 2023. HUD will allow housing authorities to 1) increase the payment standard for a voucher holder at any time after the effective are of the increase rather than waiting for the next regular reexamination and 2) increase the payment standards up to 120% of the FY 2023 Fair Market Rents. HOUSING NAVIGATION – The Housing Navigator is tasked with assisting Housing Services program participants and general community referrals in their search for decent, safe and sanitary housing within the jurisdictional boundaries of Tempe. During the period 6/1/2022 – 12/31/22, 465 clients have been assisted in their housing search by the THA Navigator. FAMILY SELF SUFFICENCY PROGRAM – THA’s application to renew its Family Self Sufficiency (FSS) Coordinator Grant was approved effective 12/30/2022 in the amount of $91,185. THA has 45 active FSS participants, 36 earning escrow accounts totaling $103,094.94. THA disbursed $4,636.98 in escrow to one graduate in September. Fiscal Year disbursement totals $52,652.03 to 6 graduates. TEMPORARY TRANSITIONAL HOUSING “RODEWAY” – The acquisition of the Rodeway was completed on September 17, 2021, and improvement work continues. The shelter began occupancy on December 30, 2021. These 30-day stay units provide the occupants with relief from the elements and the streets and enable participants to access Homeless Solutions services. Services provided are designed to lead to more permanent housing, employment, reconnecting with health providers, etc. To date, 197 individuals have been served at the Rodeway. ENVISION CENTER – EnVision Centers are central hubs that provide people with resources and support needed to excel in achieving the four pillars of self-sufficiency: Economic Empowerment, Educational Advancement, Health and Wellness, and Character and Leadership. The Tempe EnVision Center also includes a fifth pillar: Resilience – a refuge during climate emergencies like extreme heat. The Envision Center construction is scheduled for completion February 2023. HOME AMERICAN RESCUE PLAN – Maricopa County was informed by HUD that the total Fiscal Year (FY) 2021 HOME Investment Partnerships Program – American Rescue Plan (HOME-ARP) allocation is $16,756,617. The funding is required to be spent by September 2030. Tempe is expected to be the recipient of $2,085,890, and the timing of the disbursement is unknown. The City proposed to use the HOME-ARP funds for Supportive Services to assist qualifying populations assisted through the Tenant Based Rental Program, Housing Voucher Programs, non-congregate shelter units, homeless prevention, and rapid rehousing programs by obtaining housing stability and preventing homelessness. Tempe Coalition for Affordable Housing THA created an affiliate non-profit, The Tempe Coalition for Affordable Housing, Inc. (TCAH), which is not limited to Federal funding sources. This affiliate non-profit is an extension of the Tempe Housing Authority which provides the flexibility for Housing Services to pursue objectives outside of traditional HUD limitations. There are currently 55 rental units owned by the Affiliate: 44 are occupied, 5 are offline for rehabilitation, and 6 units are used by partner agencies for a 94% gross occupancy rate. Units are designated affordable housing (0%-80% AMI). The net income generated from these units is used to support affordable and workforce housing. TCAH and the City of Tempe formed a formal partnership to deliver on the Hometown for All Initiative. Hometown for All provides a City-dedicated funding stream for the development, preservation and/or acquisition of affordable/workforce housing units. The Initiative allocates 50% of certain Building Permit Fees revenue for the previous listed purposes. To date, the City has invested nearly $4.5 million in TCAH’s Hometown For All efforts. TCAH has also received nearly $3.3 million in donations from external sources. These dollars have facilitated the purchase of homes for improvement then immediate rental, land for future redevelopment, as well as funded predevelopment tasks of many City- owned lots including: Acquisitions Improved Properties Unimproved Properties Improvements to Properties Total for Properties 1119 S. Holbrook Lane - Vacant Lot 146,410.50 146,410.50 1029 W. 5th Street, Unit 101 206,918.04 24,118.00 231,036.04 2301 E Laird 351,099.45 13,600.00 364,699.45 Watson's Flowers 1,750,000.00 1,750,000.00 2,308,017.49 146,410.50 37,718.00 2,492,145.99 Watson’s Flowers (2425 E. Apache) On December 14, 2022, TCAH entered a Purchase and Sale Agreement with TCAA for this property for the purposes of creating permanent and dedicated space to house its human service programs. 1014 E. Curry Road The City transferred a vacant parcel located at 1014 E. Curry Road to TCAH. The property is on a busier street and surrounded by houses and duplexes. The strategy is to build, operate, and maintain a permanently affordable duplex or triplex on the property. Future Activities 1. U.S. Department of Housing and Urban Development (HUD) Lead The Way training is required onboarding training for THA’s two new board members, but recommended for all Board members. The training can be accessed here: https://www.hudexchange.info/trainings/courses/lead-the-way- pha-governance-and-financial-management/. Please advise Irma Hollamby Cain when training has been completed. 2. THA will accept pre-applications for the Housing Choice Voucher (HCV) Program Waitlist. Pre- applications will be accepted online only from February 28, 2023 @ 8:00 a.m. through March 13, 2023 @ 11:59 p.m. (MST). THA will randomly select 3,000 pre-applications from all those received. Selected applicants will then be placed onto the Waitlist. Applicants not selected will have to reapply for assistance at another time. Paper applications will not be accepted; however, if one requires special assistance with the application process or does not have internet access, they may contact a telephone hotline that will be set up. 3. Housing Services submitted HUD Community Planning & Development Consolidated Annual Performance and Evaluation Report (CAPER) which summarizes the actions, activities, and the specific federal and non-federal resources that will be used each year to address the priority needs and specific goals identified in Tempe’s Consolidated Plan. 4. THA is currently interviewing Housing Specialist I candidates who will be responsible for scheduling and conducting all inspections, communicating the results to landlords and tenants, and following up on any failed inspections. THA will soon kick off recruitment of a Housing Specialist II position who will be assigned to our Specialty Programs focused on serving those who are homeless or at risk of homelessness. Due to the special needs of these program participants, THA will seek candidates with experience in person-centered case planning services and who have worked with homeless or near-homeless populations. This population also requires that the Specialist has a strong network of support resources in order to maintain housing stability and increase access to mainstream resources for this diverse caseload. 5. THA has submitted a reclassification request to create a Management Assistant II position who will support both THA and TCAH. 6. THA will participate in a January 28, 2023 Breakfast with Berdetta to discuss housing vouchers and Tempe’s housing efforts. 7. A joint Work Study Session of the TCAH Board and Tempe City Council is planned for March 2023.