| | | | | | | | Agenda Item - 3.a.
City of Garden Grove
INTER-DEPARTMENT MEMORANDUM
| To: | Scott C. Stiles
| From: | Maria Stipe
| | Dept.: | Director
| Dept.: | City Manager
| | Subject: | Adoption of a Resolution approving the Garden Grove Housing Authority Annual budget for Fiscal Year 2017/18 and Fiscal Year 2018/19. (Action Item) | Date: | 6/27/2017 |
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| | | | | | | | OBJECTIVE
To request that the Housing Authority hold a Public Hearing on the Authority’s proposed annual budget for Fiscal Year 2017/18 and Fiscal Year 2018/19; and adopt a Resolution approving the budget. |
| | | | | | | | BACKGROUND
The Section 8 Rental Assistance Program is a federally funded program through the Department of Housing and Urban Development (HUD) that assists very-low income families, seniors and disabled persons in the payment of the rent on privately owned rental units. Under this program, qualified participants pay a percentage of their adjusted income toward the rent and the Housing Authority pays the balance to the owner utilizing federal funds received from HUD. The rental units subsidized under the program are inspected annually to ensure that they are decent, safe, and sanitary and have no building code violations. The Authority ensures that the total monthly rent is comparable to rents being paid on similar non-subsidized units, and owners are encouraged to improve their properties to make them eligible for an annual rent increase.
In addition, as part of the dissolution of the Garden Grove Agency in February 2012, the Housing Authority has taken on the “housing assets” of the former Agency. These assets include land purchased with housing set aside funds. |
| | | | | | | | DISCUSSION
The Authority’s annual budget for Fiscal Year 2017/18 is estimated at $31,971,029 and Fiscal Year 2018/19 is estimated at $32,046,402 which reflects assistance to 2,337 Section 8 families, plus an additional 300 families through Portability, and the operational costs of administering the program. While the Housing Authority is allocated 2,337 vouchers, it is only able to fulfill approximately 2,220 at the current funding level. Additionally, the Housing Authority is receiving approximately 77% of its administrative allocation at this time. Staff continues to administer the program with reduced funding but may be required to make additional program adjustments if funding is not restored or is further reduced. |
| | | | | | | | FINANCIAL IMPACT
The Housing Authority receives all funding for the Section 8 Rental Assistance Program from the Department of Housing and Urban Development (HUD). The level of funding is based on annual appropriations approved by Congress. Revenues generated from rentals and housing agreements will be used to administer affordable housing assets. |
| | | | | | | | RECOMMENDATION
It is recommended that the Housing Authority:
- Conduct a Public Hearing on the proposed budget; and
- Adopt the attached Resolution approving the Authority’s budget for Fiscal Year 2017/18 and Fiscal Year 2018/19.
By: Danny Huynh, Housing Manager
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| ATTACHMENTS: | | Description | Upload Date | Type | File Name | | Resolution | 6/19/2017 | Resolution | 6-27-17_RES-HA_6.pdf | | Proposed Budget | 6/19/2017 | Backup Material | 6-27-17_Housing_Budget_Attachments_FY_2017-18_2018-19.pdf |
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