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Conduct a noticed public hearing to approve the Solano County Housing Authority revised Public Housing Agency 5-Year Plan, Annual Plan, Moving-to-Work Supplemental Plan, and including approval of two versions of the Administrative Plan addressing revisions to Chapters 6, 8, and 11 pending US Department of Housing and Urban Development (HUD) approval of new provisions for implementation of The Housing Opportunity Through Modernization Act of 2016 (HOTMA)
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Published Notice Required? Yes _X__ No _ _
Public Hearing Required? Yes _X__ No _ _
DEPARTMENTAL RECOMMENDATION:
The Department of Resource Management recommends that the Board of Supervisors:
1. Conduct a noticed public hearing;
2. Approve the Solano County Housing Authority revised Public Housing Agency 5-Year Plan, Annual Plan, Moving-to-Work Supplemental Plan, and including approval of two versions of the Administrative Plan addressing revisions to Chapters 6, 8, and 11 pending US Department of Housing and Urban Development (HUD) approval of new provisions for implementation of The Housing Opportunity Through Modernization Act of 2016 (HOTMA).
SUMMARY:
The 1998 Quality Housing and Work Responsibility Act requires the SCHA develop a Public Housing Agency Plan. The Plan consists of two elements: a Five-Year Plan, which describes the mission of the agency for serving the needs of low income and very low-income families and its goals and objectives, and an Annual Plan that addresses policies and procedures of the agency and provides strategies for addressing the needs identified within the Five-Year Plan. The Annual Plan also provides details about the SCHA programs for the upcoming fiscal year in relation to the Five-Year Plan.
Two additional required plans are an Administrative Plan, which is designed to establish policies for carrying out Section 8 tenant-based assistance programs in a manner consistent with Department of Housing and Urban Development (HUD) regulations and local goals and objectives, as well as an MTW Supplemental Plan to address specific policies related to the MTW program. At this time, HUD has not yet completed the necessary steps to enable housing authorities to implement HOTMA changes, yet the County is required to submit at this time. To address this issue and as recommended by HUD, staff is recommending two versions (Versions A and B) of Chapters 6, 8, and 11 be prepared and approved by the Board with Version A going into effect upon Board approval and Version B going into effect upon HUD approval of HOTMA implementation procedures.
The four plans are further described in the Discussion section below. The SCHA is being asked to hold a required public hearing and, following the public hearing, consider approval of two versions of the Administrative Plan, the 5-Year Plan, the Annual Plan and the MTW Supplemental Plan. If approved, the Plans will be submitted to HUD.
FINANCIAL IMPACT:
Costs associated with the administration of the program are paid by HUD and are passed through the County to the City of Vacaville, who administers the SCHA’s housing programs. The costs associated with preparing the agenda item are nominal and absorbed by the Department’s FY2024/25 Working Budget.
DISCUSSION:
The U.S. Housing and Urban Development (HUD) Housing Choice Voucher (HCV) Program provides rent subsidies on behalf of very low-income Solano County households (annual income below $62,900 for a household of four) so they can live in decent, safe and affordable housing. The SCHA program contributes an annual investment of approximately $3,267,000 into the local economy (Cities of Dixon, Rio Vista, and Unincorporated Areas of Solano County). HUD now allocates funding to assist up to 368 voucher holders each month. The number of each type of voucher provided to the SCHA by HUD is provided in Attachment A.
HUD issues program regulations that housing authorities must follow, but also allows authorities to establish local policies through the Administrative Plan. The SCHA periodically updates the Administrative Plan as regulations and other circumstances change, when new programs are added, or when clarification of existing policy is needed.
Administrative Plan
The Housing Opportunity Through Modernization Act of 2016 (HOTMA) (Public Law 114-201, 130 Stat. 782) was signed into law on July 29, 2016. Title I of HOTMA contains 14 sections that affect the public housing and HCV Program rental assistance programs (the SCHA does not operate public housing units). The implementing final rule was published in the Federal Register (Notice 88 FR 9600) on February 14, 2023. The final rule revised HUD regulations to include HOTMA Sections 102 and 104 for the HCV Program into effect. These sections made sweeping changes to the United States Housing Act of 1937, particularly those affecting income calculations and reviews. Administrative Plan changes to address HOTMA were required to be submitted to HUD by April 17, 2024. The Housing Authority Board approved the implementation of HOTMA revisions to the Administrative Plan on March 26, 2024 and the changes to the Administrative Plan were submitted to HUD in a timely manner.
However, at this time, HUD has not yet completed the necessary steps to enable housing authorities to implement HOTMA changes. To address this issue and as recommended by HUD, staff recommends that two versions of Chapters 6, 8, and 11 be prepared and approved: Versions A and B. While the Board approved the Chapters last year, Version A of the Chapters removes any HOTMA policies that cannot be implemented at this time due to HOTMA not yet being in effect, along with the changes summarized in the Executive Summary (Attachment B). Upon Board approval, the Housing Authority will adopt Version A, which reflect current policies, until HUD provides a formal implementation date for HOTMA. Once HUD finalizes its requirements and formally implements HOTMA, the Housing Authority will transition to Version B to comply with the HOTMA provisions. Attachment B summarizes the revisions to each chapter, including the two versions presented for Chapters 6, 8, and 11.
Other administrative policies and updates included in the revised Administrative Plan consist of items such as: deleting and/or changing language and format in conformance with 2024 industry standard Model Plan; updating code, references and recitals; adding, deleting, or updating exhibits; correcting or clarifying language, acronyms, and typographical errors; and updating SCHA Policy in accordance with SCHA practices.
While Attachment B provides the Executive Summary, the full redlined version of the Administrative Plan, which includes Version A and B of Chapters 6, 8, and 11 is attached as a link in Attachment F.
Five Year, Annual and MTW Supplemental Plans
HUD requires that Public Housing Authorities submit a Five-Year Plan, with an Annual Plan submitted each fiscal year under the Five-Year Plan period, for continued receipt of HCV funding. The current 5-Year Plan will expire on June 30, 2025 and the proposed 5-Year Plan will be effective from July 1, 2025 through June 30, 2030. This new 5-Year Plan will set goals to meet housing needs of applicants and participants of the HCV Program (Attachment C). Since the SCHA is a qualified Public Housing Authority (PHA), it is typically exempt from having to prepare and submit an Annual Plan per the Housing and Economic Recovery Act (HERA), Title VII, Small Public Housing Authorities Paperwork Reduction Act. However, the SCHA is still required to hold a public hearing and invite comment if there are any changes to its goals, objectives, and policies. The SCHA must also consult with and consider the recommendations of the Resident Advisory Board at the public hearing, which is a board that consists of individuals receiving voucher assistance for the purpose of providing input on development of the Annual Plan. It has been the experience of the SCHA that selected recipients do not attend these meetings.
In addition, as an MTW agency, the SCHA is required to submit an MTW Supplemental Plan. The SCHA was awarded the MTW designation by HUD in 2021 due to its success in operating a small PHA. The MTW designation by HUD allows the SCHA greater flexibility in its administration of the program. This allows for potential opportunities to customize the program to meet the needs of its clients and to reduce administrative costs. This year, the SCHA prepared an Annual Plan to coincide with the submission of the MTW Supplemental Plan (Attachments D and E). As part of the Annual and MTW Supplemental Plan process, the SCHA conducted a virtual Resident Advisory Board/community outreach meeting for participant and community engagement (Attachment G). Both plans must be submitted using HUD mandated templates/databases and includes the following:
• Housing Authority information
• Locations where the public can obtain a copy of the 5-Year, Annual and MTW Plan
• Mission for serving the needs of low, very low, and extremely low-income families in the SCHA’s jurisdiction for the next five years
• Housing Agency Plan elements that have been revised since the last Annual Plan
• Goals and objectives for the next 5 years
• Progress made in meeting the goals and objectives described in the active 5-Year Plan
• Progress made in meeting the goals and objectives described in the previous 5-Year Plan
• Goals and objectives for the upcoming year
• New Activities planned in the upcoming year
• Violence Against Women Act (VAWA) specific goals, activities, objectives, policies, and/or programs
• Findings (if any) of the SCHA’s most recent financial audit
• Criteria used for determining a significant amendment or modification to the 5-Year Plan
• Capital Improvements (not applicable, the SCHA does not own Public Housing)
• SCHA MTW Demonstration Narrative
• Proposed MTW Waivers and Associated MTW Activities
• Safe Harbor Waivers (if applicable)
• Agency-Specific Waivers (if applicable)
• Challenged Elements, if any
• Certification of Compliance with Housing Agency Plans and Related Regulations and Resident Advisory Board recommendations
The 5-Year, Annual and MTW Supplemental Plans were made available for a 45-day public review period.
ALTERNATIVES:
The Board could choose not to approve the revised Administrative, 5-year, Annual and MTW Supplemental Plans. This alternative is not recommended as these Plans are all required to be approved for the SCHA to continue with its Housing Choice Voucher program and operate as an MTW agency, per requirements of HUD.
OTHER AGENCY INVOLVEMENT:
Funding for the SCHA Housing Choice Voucher program comes from HUD. Through a mutually approved Agreement, the City of Vacaville administers the program on the County’s behalf.
CAO RECOMMENDATION:
APPROVE DEPARTMENTAL RECOMMENDATION