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Conduct a noticed public hearing to consider approval of the Solano County Housing Authority revised Administrative Plan, Public Housing Agency Annual Plan, and Moving-to-Work Supplemental Plan
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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; and
2. Approve the Solano County Housing Authority (SCHA) revised Administrative Plan, Public Housing Agency Annual Plan, and Moving-to-Work (MTW) Supplemental Plan.
SUMMARY:
The 1998 Quality Housing and Work Responsibility Act requires the SCHA to 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 very low-income and low income families, and its goals and objectives; and an Annual Plan that covers policies and procedures of the agency and provides strategies for addressing the needs identified in the Five-Year Plan. The Annual Plan provides details about the SCHA programs for the upcoming fiscal year in relation to the Five-Year Plan. The request before the SCHA includes approving the Annual Plan for FY2024/25, which includes the Moving to Work (MTW) Supplemental Plan and proposed revisions to the Administrative Plan. The Administrative Plan is designed to establish policies for carrying out Section 8 tenant-based assistance programs in a manner consistent with the Department of Housing and Urban Development (HUD) regulations and local goals and objectives.
The SCHA is being asked to hold a required public hearing and, following the public hearing, consider approval of the proposed revisions to the Administrative Plan, Annual Plan, and 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 FY2023/24 Working Budget.
DISCUSSION:
The HUD Housing Choice Voucher (HCV) Program provides rent subsidies on behalf of very low-income Solano County households (annual income below $57,200 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 F.
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
HUD has implemented several policy changes that now require the SCHA to update its Administrative Plan. On July 29, 2016, HUD enacted the Housing Opportunity Through Modernization Act of 2016 (HOTMA) (Public Law 114-201). Title I of HOTMA contains 14 sections that affect the public housing and HCV rental assistance programs. The Final Rule was officially published in the Federal Register on February 14, 2023, and revises HUD regulations to put sections 102, 103, and 104 of HOTMA into effect. These sections make changes to the United States Housing Act of 1937, particularly those affecting income calculation, reviews, and program eligibility. Only Section 102 and 104 pertain to the HCV Program. Section 103 pertains to Public Housing and will not be implemented by the SCHA as the SCHA does not operate any Public Housing units.
HUD has implemented updates to inspection standards. The National Standards for the Inspection of Real Estate (NSPIRE) rule replaces Housing Quality Standards (HQS) and updates HUD’s inspections process by implementing inspections that better reflect the true physical condition of the property. The Final Rule, which accompany the final notice, were published in the Federal Registrar on June 22, 2023. PIH Notice 2023-28, published in September, includes additional guidance. Public housing agencies (PHAs) are required to adopt the new NSPIRE inspections methodology no later than October 1, 2024, for their HCV Programs.
In order to be in compliance with HUD regulations, staff is recommending that an update to the SCHA Administrative Plan be considered. The overall changes to the Plan include:
• Follows format of 2023 industry standard Model Administrative Plan:
o Updates made in compliance with HUD’s HOTMA regulations include:
§ Asset limitations
§ Admission policies
§ Reexamination policies
§ Income calculation policies
§ Clarifications on definitions related to income and deductions
o Updates HQS to NSPIRE Standards
o Adds, deletes and/or changes language and format in conformance with: Model Plan (for example: “HQS” has been changed to “NSPIRE” throughout plan), current program rules, regulations and HUD guidance, and current practices.
o Removes redundancies.
• Updates Code of Federal Regulation, Public Housing Information Notice, HUD Housing Choice Voucher Guidebook, and other references and recitals.
• Several Exhibits have been added, deleted, or updated.
Attachment A provides a summary of the proposed revisions to the Administrative Plan, by chapter. Attachment B is the draft revised Administrative Plan in its entirety in redlined text. Current text to be deleted is shown in strikethrough and new text is shown underlined and in red throughout the eighteen-chapter document.
If approved by the Housing Authority Board, the amended Administrative Plan will be submitted to HUD as required and will be used as the guide, rules, and policies for administering the SCHA Housing Choice Voucher Programs. Updates to the Administrative Plan related to NSPIRE will be implemented effective October 1, 2024 and updates related to HOTMA changes will be implemented effective January 1, 2025.
Annual and MTW Supplemental Plans
HUD requires that Public Housing Authorities submit a Five-Year Plan and an Annual Plan each fiscal year during the Five-Year Plan period for continued receipt of HCV funding. The current 5-Year Plan adopted on March 24, 2020, covers the period 2020-2025. 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. The Resident Advisory Board consists of individuals receiving voucher assistance for the purpose of providing input on development of the annual plan.
In addition, as an MTW agency, the SCHA is required to submit an MTW Supplemental Plan and is provided 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 C and D). 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 E).
Both plans must be submitted using HUD mandated templates/databases. The plans include the following:
• Locations where the public can obtain a copy of the Annual and MTW Plan
• Housing Agency Plan elements that have been revised since the last Annual Plan
• Progress made in meeting the goals and objectives described in the 5-year plan
• Goals and objectives for the upcoming year
• New Activities planned in the upcoming year
• Findings (if any) of the SCHA’s most recent financial audit
• SCHA MTW Demonstration Narrative
• Proposed MTW Waivers and Associated MTW Activities
• Safe Harbor Waivers (if applicable)
• Agency-Specific Waivers (if applicable)
• Certification of Compliance with Housing Agency Plans and Related Regulations and Resident Advisory Board recommendations.
The Annual and MTW Supplemental Plans were made available for a 45-day public review period.
ALTERNATIVES:
The Board could choose not to approve the Administrative, 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