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, several homes that are being rented to low-moderate income households, and several affordable housing agreements.  Revenues from these rentals and housing agreements will be used for the maintenance of those units.

The Authority’s annual budget is estimated at $31,899,735 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 2,300 at the current funding level.  Additionally, the Housing Authority is receiving approximately 80% 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.   

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.

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 2016-17

By:    Danny Huynh, Housing Manager