REPORT/RECOMMENDATION TO THE BOARD OF GOVERNORS
OF THE HOUSING AUTHORITY OF THE COUNTY OF SAN BERNARDINO
AND RECORD OF ACTION
November 5, 2019
FROM
MARIA RAZO, Housing Authority of the County of San Bernardino
SUBJECT
Title
Revision to the Attachment A of the Moving to Work Agreement
End
RECOMMENDATION(S)
Recommendation
Acting as the governing body of the Housing Authority of the County of San Bernardino:
1. Adopt a Resolution approving the Second Revised Attachment A, Calculation of Subsidies, of the Moving to Work Agreement between the United States Department of Housing and Urban Development and the Housing Authority of the County of San Bernardino.
2. Authorize the Executive Director of the Housing Authority of the County of San Bernardino, upon consultation with Legal Counsel, to execute the revised Attachment A to the Moving to Work Agreement, accept and sign the exhibits necessary or appropriate to carry out the commitment in the Agreement, and to satisfy program rules and regulations pursuant to federal requirements.
3. Direct the Executive Director of the Housing Authority of the County of San Bernardino to transmit all documents to the Secretary of the Board of Governors within 30 days of execution.
(Presenter: Maria Razo, Executive Director, 332-6305)
Body
COUNTY AND CHIEF EXECUTIVE OFFICER GOALS & OBJECTIVES
Operate in a Fiscally-Responsible and Business-Like Manner.
Provide for the Safety, Health and Social Service Needs of County Residents.
FINANCIAL IMPACT
Approval of the item will not result in the use Discretionary General Funding (Net County Cost). Approval of the proposed revision to the Housing Authority of the County of San Bernardino’s (HACSB) Attachment A of its Moving to Work (MTW) Agreement would update the agency’s existing funding formula for the Housing Choice Voucher (HCV) Program Administrative Fee. As a result of this amendment, the funding formula will be updated to align with current national Administrative Fee rate schedules which determine the current year funding for the Administrative Fee portion of the HCV Program. This differs from the current methodology of using the baseline administrative fee funding and incorporating annual inflation factors. HACSB anticipates that this revised funding methodology will increase annual administrative fee funding. At this time, this amendment has an undetermined financial impact since the Fiscal Year 2020 federal budget has not been approved by Congress and signed by the President. A revised agency budget will be submitted once a funding award letter for Calendar Year 2020 is received from HUD.
BACKGROUND INFORMATION
This item will approve a Second Revised Attachment A, Calculation of Subsidies, to the MTW Agreement between HACSB and the United States Department of Housing and Urban Development (HUD) and authorize the Executive Director to execute the Attachment A as required by HUD. In 2008, HACSB was designated an MTW agency by Congress and HUD. Under its existing MTW Agreement, HACSB is funded under a different methodology than other Housing Authorities. The funding methodology for HACSB is outlined under the Attachment A of its Moving to Work Agreement. For well over a decade, nationally the HCV program has not been funded adequately, and HACSB has relied on effective management practices, MTW activities that promote program efficiencies, and a well-trained staff to operate the program effectively under the ongoing funding shortfalls. However, this is becoming increasingly difficult as funding cuts accumulate and administrative costs rise. As a result, the level of customer service and program management HACSB provides is at risk in future years due to these funding shortfalls. As a result of this amendment, the funding formula will be updated to align with current national Administrate Fee rate schedules which determine the current year funding for the Administrative Fee portion of the HCV Program. This differs from the current methodology of using the baseline administrative fee funding and incorporating annual inflation factors. HACSB anticipates that this revised funding methodology will increase annual administrative fee funding. This amendment only provides additional administrative fee for staffing and operations of the HCV program, not additional voucher rental assistance.
PROCUREMENT
Not applicable.
REVIEW BY OTHERS
This item has been reviewed by Legal Counsel (Julie J. Surber, Principal Assistant County Counsel, 387-5455) on October 28, 2019; Finance (Kathleen Gonzalez, Administrative Analyst, 387-5412) on October 29, 2019 and Finance and Administration (Robert Saldana, Deputy Executive Officer, 387-4523) on October 29, 2019.