On March 27, 2020, Congress enacted the CARES Act to provide additional funding to prevent, prepare for, and respond to the coronavirus.  This includes funding to housing authorities to maintain normal operations and take other necessary actions during the period the Housing Choice Voucher Program is impacted by the coronavirus.

The first allocation of funding to housing authorities from the CARES Act was allocated at the beginning of May 2020.   The Garden Grove Housing Authority received $517,312 in administrative fee funding from the Department of Housing and Urban Development (HUD).  Under the CARES Act, this supplemental administrative fee funding may be used only for two purposes: (1) any currently eligible Housing Choice Voucher Program administrative costs during the period that the program is impacted by coronavirus; and (2) new coronavirus-related activities, including activities to support or maintain the health and safety of assisted individuals and families, and costs related to the retention and support of participating owners.

Some eligible coronavirus-related activities include: necessary upgrades to information technology equipment and computer systems integrations; overtime pay for public housing authority staff to carry-out Housing Choice Voucher Program responsibilities; cost of providing childcare for housing authority staff that would not have otherwise been incurred; purchase of cleaning supplies and personal protective equipment for staff; and other costs determined eligible on a case-by-case basis. 

Under the CARES Act, the period of availability for these funds is the duration of calendar year 2020.   The funds may not roll over into the next calendar year and if the funds are not expended they must be remitted to HUD.  Staff is currently preparing an expenditure plan that corresponds with the eligible spending categories to ensure funds are fully utilized and appropriately spent.

The Housing Authority receives all funding for the Section 8 Rental Assistance Program from HUD.  The level of funding is based on appropriations approved by Congress.  This allocation will provide an additional $517,312 to address new coronavirus-related administrative activities through December 31, 2020.

It is recommended that the Housing Authority and City Council:

• Recognize and appropriate the $517,312 in Housing Authority administrative fee funding from the CARES Act. 
    

 By:    Danny Huynh, Housing Manager