December 7, 2020 Regular Meeting Minutes
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PUBLIC HOUSING AUTHORITY COMMISSION Regular Meeting Minutes Monday, December 7, 2020 MINUTES OF THE PUBLIC HOUSING AUTHORITY COMMISSION (PHAC) OF THE CITY OF CHANDLER, ARIZONA, held in the Council Chambers, 88 E. Chicago St., on Monday, December 7, 2020. CHAIRMAN HARTKE CALLED THE MEETING TO ORDER at 6:00 p.m. The following members answered roll call: Kevin Hartke Chairman René Lopez Vice Chairman Vanessa Dearmon Commissioner Jeremy McClymonds Commissioner Terry Roe Commissioner Sam Huang Commissioner Matt Orlando Commissioner Mark Stewart Commissioner Also in attendance: Marsha Reed City Manager Kelly Schwab City Attorney Dana DeLong Recording Secretary UNSCHEDULED PUBLIC APPEARANCES None. CONSENT AGENDA – MOTION AND VOTE COMMISSIONER ORLANDO MOVED TO APPROVE THE CONSENT AGENDA OF THE DECEMBER 7, 2020, PUBLIC HOUSING AUTHORITY COMMISSION MEETING; SECONDED BY COMMISSIONER MCCLYMONDS. MOTION CARRIED UNANIMOUSLY (8-0). CONSENT AGENDA ITEMS 1. August 2020 Public Housing Authority Commission Meeting Minutes Move to approve the Public Housing Authority Commission Meeting minutes of the Regular Meeting of August 24, 2020. Minutes of the Public Housing Authority Commission Meeting of December 7, 2020 Page 2 2. Resolution No. HO159 approval of Increased Payment Standards for the Housing Choice Voucher Program (Section 8 Program). Move the Public Housing Authority Commission pass and adopt Resolution No. HO159 revising and increasing the Payment Standards for the Housing Choice Voucher Program (Section 8 Program). BACKGROUND FROM COUNCIL MEMO The U.S. Department of Housing and Urban Development (HUD) allows Public Housing Authorities (PHAs) to set the Payment Standards for the Housing Choice Voucher Program. Payment Standards are used to calculate the housing assistance payment that the PHA pays to the landlord on behalf of the family leasing the unit. Family contribution to rent is set at 30 to 40 percent of the family’s adjusted income. Each PHA has latitude in establishing its schedule of Payment Standard amounts by bedroom size. The range of possible Payment Standard amounts is based on HUD’s published Fair Market Rent (FMR) schedule for the area in which the PHA has jurisdiction. A PHA may set its Payment Standard amounts from 90 percent to 110 percent of the published FMRs. The 2021 FMR increased; therefore, staff wishes to conservatively increase the current Payment Standards. The Housing Choice Voucher Program’s Payment Standards are currently set between a range of 95 and 108 percent of the FMR and staff requests to increase the current Payment Standards by an average of 4 percent to help offset the continued increases in market rents which results in a 96 percent to 105 percent range of the current published FMRs. Since 1998, Chandler’s Payment Standards have varied within the Program but generally have hovered around an average of 99 percent of the published FMR. The current Payment Standard for Chandler was changed December 1, 2019, in response to the rising costs in the rental market. Rental rates have increased significantly in the last few years in the Chandler rental market and are hampering the City’s voucher participants’ ability to find reasonably priced rental units within the existing Payment Standards. These factors limit choices for prospective renters in the Housing Choice Voucher Program, increase the time in searching for rental units, and, in some cases, eliminate the option to renew a lease where a tenant is currently leasing. Currently, there are 104 voucher holders searching. The increase in Payment Standards will increase the housing assistance payments, which is the amount the PHA pays monthly to landlords on behalf of the tenants. The current rental conditions has resulted in a more competitive market therefore, we have increased our voucher issuance to keep up with leasing goal of 486 total vouchers. There is adequate funding within the remaining Housing Choice Voucher Program budget year to accommodate the increased costs and rate of voucher issuance. Alternatively, if the Payment Standards are not increased, prospective tenants may not be able to find dwelling units to rent and Housing Choice Vouchers will go underutilized. Any underutilized Housing Choice Voucher Program funding at the end of the year is returned to HUD and future Housing Choice Voucher Program budgets are adjusted downward based on past performance. All costs associated with the Housing Choice Voucher Program are funded by HUD. 3. Agreement No. HO0-914-4143, Amendment No. 1, with Jovos, Inc., for Plumbing Services Move that Public Housing Authority Commission (PHAC) approve Agreement No. HO0-914-4143, Amendment No. 1, with Jovos, Inc., for plumbing services as required, increasing the existing spending limit by $70,000 for a revised amount not to exceed $100,000. Minutes of the Public Housing Authority Commission Meeting of December 7, 2020 Page 3 BACKGROUND FROM COUNCIL MEMO The City of Chandler Housing Division maintains 303 public homes. This plumbing maintenance contract services these homes for emergency and non-emergency plumbing issues and has spent an average of $35,000 per year for this service. However, COVID-19 has prevented our maintenance staff from entering these homes to perform basic plumbing issues. This contract now services all plumbing needs for these homes thus the needed increase in this contract. The requested increase will continue to provide this needed service to our residents. COVID-19 funding is currently being provided by HUD to assist with additional maintenance costs, once these funds are expended then PHA operating funds and affordable housing fund will be used. On March 3, 2020, the City Manager approved an agreement with Jovos, Inc., for plumbing services as required, for a one-year period, with the option of up to four one-year extensions. The using department has identified additional work to be performed exceeding the award threshold, which now requires PHAC approval. The current term is still in effect, however, staff is requesting an increase to the spending limit. 4. Agreement No. HO0-914-4195, Amendment No. 1, with PM Plumbing & Mechanical, Inc., for HVAC Services Move that Public Housing Authority Commission (PHAC) approve Agreement No. HO0-914- 4195, Amendment No. 1, with PM Plumbing & Mechanical, Inc., for HVAC services as required, increasing the existing spending limit by $70,000 for a revised amount not to exceed $100,000. BACKGROUND FROM COUNCIL MEMO The City of Chandler Housing Division maintains 303 public homes. This HVAC maintenance contract services these homes for emergency and non-emergency HVAC issues. Due to COVID-19 it has prevented our maintenance staff from entering these homes to perform maintenance issues, including HVAC related items. This contract services all HVAC needs for these homes thus the needed increase in this contract. The requested increase will continue to provide this needed service to our residents. COVID-19 PHA Cares Act funding will be used until funding is expended then, PHA operating funds will be used. On July 28, 2020, the City Manager approved an agreement with PM Plumbing & Mechanical, Inc., for HVAC services as required, for a one-year period, with the option of up to four one-year extensions. The using department has identified additional work to be performed exceeding the award threshold, which now requires PHAC approval. The current term is still in effect, however, staff is requesting an increase to the spending limit. ADJOURNMENT The meeting was adjourned at 6:03 p.m. ATTEST: Minutes of the Public Housing Authority Commission Meeting of December 7, 2020 Page 4 ______________________________________ __________________________________ Dana DeLong, Recording Secretary Kevin Hartke, Chairman Approved: ___________________, 2021