Item Coversheet

Agenda Item - 3.a.


City of Garden Grove


INTER-DEPARTMENT MEMORANDUM

To:Scott C. Stiles

From:Patricia Song
Dept.:Director 

Dept.: Finance 
Subject:

Adoption of Resolution Amending the Fiscal Year 2020-21 Housing Authority Budget.  (Joint Action Item with the City Council)

Date:6/23/2020

OBJECTIVE

For the Housing Authority and City Council to adopt a Resolution amending the Housing Authority's budget for Fiscal Year 2020-21.  

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 Redevelopment Agency (Agency) in February 2012, the Housing Authority has taken on the Housing components of the former Agency.  These assets include land purchased with housing set aside funds.

 

On June 25, 2019, the City Council approved a biennial budget for FY 2019-20 and FY 2020-21.  As new revenue data and expenditure needs have changed, it is necessary to perform a mid-cycle review and amend the second year, FY 2020-21 budget for various funds and programs.

DISCUSSION

The Housing Authority’s amended budget for FY 2020-21 totals $36.2 million.  This is an increase of $0.2 million from the adopted biennial budget.  The increase is attributable to increased funding for housing successor agency related projects.  Funds for housing assistance payments and the family self-sufficiency program remain unchanged.

FINANCIAL IMPACT

The Housing Authority receives 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 Garden Grove Housing Authority and City Council:

 

  • Adopt the attached Resolution amending the Housing Authority’s budget for Fiscal Year 2020-21.



ATTACHMENTS:
DescriptionUpload DateTypeFile Name
HA Resolution Amending FY 20-21 Budget6/12/2020Resolution6-23-20_Resolution_HA_Amend_FY_20.21.pdf
HA FY 2020-21 Amended Budget6/11/2020Backup MaterialFY_2020-21_Housing_Budget.pdf