Preserving Our Diversity Program Guidelines Draft for Housing Commission Meeting on 6/16/16

Transcription

1 Preserving Our Diversity Program Guidelines Draft for Housing Commission Meeting on 6/16/16 I. PURPOSE, BACKGROUND AND SCOPE A. Purpose The purpose of the Preserving Our Diversity (POD) program is to preserve housing affordability by providing rental assistance to long-term residents whose inability to pay rent may result in displacement from Santa Monica. A secondary benefit is that the program will collect data about the magnitude of rent-burden among low-income households. The information collected may also help the City to learn more about the needs of its extremely-low and low-income renter households. B. Background The POD program is the result of Council direction provided at its May 10, 2016 meeting and the affordable housing strategies recommended by the Housing Commission in December C. Scope Annually, it is proposed that the POD program would provide $200,000 in rental assistance to rent-burdened residents living in rent-controlled apartments. The number of assisted households will be determined once the City collects renter data and conducts eligibility screening. II. IMPLEMENTATION A. Outreach and Marketing Potential applicants will be informed about the program opportunity in the June 2016 Rent Control Board mailing to all Rent Control tenants, along with postings on various City websites, advertisement in local papers, and outreach to local social service agencies. Initial data collection will consist of a Renter Needs Survey that asks for basic household composition and income information. Respondents to the Renter Needs Survey will be placed on a list and assessed for baseline eligibility criteria and priority. Survey participants are not guaranteed rental subsidies. B. Fair Housing and Equal Opportunity Fair housing and equal opportunity policies and practices outlined in Chapter 2 of the Santa Monica Housing Authority Administrative Plan shall be the policies and practices of the POD program. C. Budget and Administration The POD program is included in the proposed Second Year of the Biennial Budget. If approved by City Council, the initial program budget will consist of $200,000 1

2 for rental assistance and $100,000 for administration. Program administration may include engaging a consultant firm to manage the collection, analysis, and sorting of application data to establish priority households, as well as conducting the eligibility screening. The Housing Division will oversee the program. The initial funding will come from affordable housing set-aside funds resulting from dissolution of the former Redevelopment Agency ( boomerang funds ). Although proposed as a (one-time) pilot program, Council is being asked to consider this program to be ongoing. Starting and then discontinuing rental assistance to extremely lowincome participants would undermine the housing stability aim of this program. D. Program Guidelines Program Guidelines will be drafted by staff, presented to Housing Commission for input and proposed to City Council for adoption. E. Annual Report The Housing Division shall provide the Housing Commission and City Council with an Annual Report on the POD program. The report will provide the number of households served, participant demographics, total budget expenditures, an assessment of the program s success and recommendations for program improvements. F. Rent Control All laws, rules, regulations and procedures associated with Rent Control shall remain in effect for program participants and their residences. III. ELIGIBILITY AND PRIORITY A. Baseline Eligibility Criteria In order to qualify for the program, Renter Survey Needs respondents must be: 1. Santa Monica residents living in Rent Control apartments as of July 1, 2016; and 2. Extremely low-income (earn less than 30 percent of area median income); and 3. Severely rent-burdened (pay more than 50 percent of gross household income toward rent). As funding permits, the program may be extended to serve very low-income and lowincome households who meet the baseline eligibility criteria and priority established below. B. Ineligible Households The POD program is intended to address an unmet need for housing affordability in Santa Monica. Therefore, households participating in existing affordable housing programs are ineligible for the POD program. Specifically: 1. Households living in deed-restricted affordable housing are ineligible, including those living in: 2

3 Properties purchased, rehabilitated and/or constructed with Housing Trust Funds; Apartments subject to the Affordable Housing Production Program; HUD-assisted properties; and Los Angeles County affordable housing properties. 2. Households currently participating in or who have been terminated from any Santa Monica Housing Authority rental subsidy program are ineligible. 3. Household members with convictions of a violent crime that have occurred within the last five years, or who are registered sex offenders are ineligible. C. Priority 1. Priority for the POD program, within the Baseline Eligibility Criteria indicated in Section III-A, will be established by: Tier 1: Percentage of rent burden over 50 percent; and Tier 2: Length of residency in current Santa Monica Rent Control apartment Tier 3: Medi-Cal-eligible head of household 2. When baseline eligible households are determined to have equal priority, a lottery will be conducted to determine which household will continue the application process. IV. INCOME AND ASSETS A. Gross Household Income Determination and Verification Gross household income shall be based on documentation provided for the past three months of income for all household members and the most recent calendar year income tax return. B. Assets Determination and Verification The Housing Division staff will review household assets to determine if the household faces housing instability due to rent burden. V. AMOUNT OF RENTAL SUBSIDY A. Rent Subsidy Amount The rental subsidy amount for the POD Program participants shall be the difference between the Rent Control Maximum Allowable Rent plus any pass-through fees, and 30 percent of the Gross Household Income. The total rent paid (tenant portion + rental 3

4 subsidy) shall not exceed the Rent Control Maximum Allowable Rent plus allowable pass-through fees. B. Adjustments to Rent Subsidy Amount No adjustments to rent subsidy amounts will made for the first year of the program. VI. PARTICIPATION IN GOOD FAITH A. Participation in Good Faith Policy All participant household members are required to review, agree to and sign a Participation in Good Faith Policy which outlines responsibilities that the participating household must fulfill as well as prohibited actions. B. Notification to the City Program participants are required to notify the City Housing Division within: Immediately if the landlord is terminating the participant s apartment rental agreement. Five (5) business days of notice to owner if participant is permanently vacating the apartment. Ten (10) business days prior to any temporary absence that will be 30 days or more. VII. TENANCY AND RENTAL SUBSIDY A. Payment of Rent and Rental Subsidy Rental subsidy is provided to participants who are paying rent. Participants not paying rent may be discontinued from the program. Only one subsidy will be issued per apartment. B. Non-Transferability The POD program is targeted to in-place residents of Santa Monica Rent Control apartments. The program promotes housing stability. As such, rental subsidies are nontransferable and rights to rental subsidies cease when tenancy of the apartment is terminated. Participation in the POD program does not establish rights to any other rental housing subsidy program operated by the City of Santa Monica or the Santa Monica Housing Authority. C. Rental Subsidy Payments Rental subsidy payments will be made directly to Owners. Participating owners will enter into written agreements with the Housing Division and will be asked to accept direct deposit payments. 4

5 VIII. APPEALS Appeals are permitted for income determination only. Appeals must be requested in writing within 10 working days of the decision, and must include any documentation or additional information to be considered. Appeals will be peer reviewed. Decision notification will be issued within 10 working days. 5