Item 4. Issues and Challenges facing Berkeley Housing Authority s (BHA) Section 8 Voucher Program Berkeley Rent Board February 22, 2016 1
Berkeley Housing Authority Section 8 Voucher only Authority, funded by HUD Authorized to support 1,935 households (Annual Contributions Contract) Annual budget of $22 million (pass through) for rental subsidy Target population low- and extremely-low income households with annual income at or below 50% Area Median Income (AMI). $18,500 annually for typical household. Single Room Occupancy (SRO), Moderate Rehabilitation Program with 98 authorized units 2
Who is served by BHA? BHA, with 1,935 Vouchers, and 98 Single Room Occupancy Units, is the single largest provider of rental housing for extremely-low income households in Berkeley 1,660 households are currently residing in Berkeley, with rental assistance from BHA BHA rental subsidy programs make it economically possible for low- and extremelylow-income minorities to reside in Berkeley 69% African American 22% White 7% Hispanic 2% Asian/Pacific Islander or Native Alaskan 3
Who is served by BHA? (cont.) 75% of new admissions annually must have annual income of 30% of AMI or less; the remaining 25% of new admissions must have annual income of 50% or AMI or less. Income sources include Earned income (wages) Social Security/SSI Retirement/Pension Child Support Self Employment Financial Aid/Student Loans TANF/General Assistance Unemployment/$0 income $1,097 Average monthly rental subsidy payment to landlords $380 Average family rent portion. 4
Where do assisted families reside? Choice is the hallmark of the Section 8 Voucher Program allowing families to determine where, in the community, they wish to reside Approximately 1,400 of the assisted units are duplexes to single family homes provided by small mom and pop landlords [approximately 800 participating landlords] Approximately 300 of the assisted units are in large complexes provided by nonprofit affordable housing developers (i.e. Resources for Community Development and Satellite Affordable Housing Associates) Approximately 91 of the assisted families reside in units that are Below Market Rate apartments, in privately held properties 5
.current reality: drastic declining supply of affordable rental housing and racial and economic diversity Historically BHA was the welcomed alternative to Rent Control. That changed with Vacancy Decontrol and skyrocketing rents in the economic recovery of 2014-15. In Feb. 2016 the Payment Standards increased by over 35%, as a result of BHA petitioning HUD for more accurate Fair Market Rents. It is likely that landlords will look favorably upon the new Payment Standards once again and several of the issues raised below will improve. 1) Housing stock previously utilized in S8 program no longer within reach of voucher holders because of market rents 2) Past 12-18 months, unit listing report averaged 0 to 1 unit (oft times at a senior development) 3) BHA experiencing loss of average of 16 units each month 4) Affordable units being built by private developers include affordable units (at 60% Area Median Income; BHA serves families 30-50% AMI) 5) The success rate for tenant based voucher holders seeking a unit is 15% 6) Housed families face owners who are demanding to opt-out of the program or pursuing constructive evictions 7) Low income and minority households effectively priced out of Berkeley 6
Challenges Statutory, regulatory and discretionary requirements Understanding where BHA has discretion Lack of units that are affordable at 50% AMI in new developments Below Market Rent units Lack of development of affordable housing units Low Income Tax Credits, Housing Trust Fund, Project Based Vouchers Insufficient Payment Standards Fair Market Rents Accountability/Sanctions Standards for families and owners Misconceptions about the program 7
Opportunities Existing Housing Stock BMR Units Units currently off-line Owner Incentives Damage Claim Program Discounted business license fee Discounted Rent Board registration fee for landlords in the S8 Program Project Based Vouchers 8
BHA & Rent Board Collaboration: Desired Outcomes Expanded use of Rent Board mediation services Tracking units exempt from Rent Control because of S8 participation & owner-occupancy evictions Option to cure Rent Board violations by leasing same or different unit to family with S8 assistance Handling rents that are approved above Payment Standard Affirming Good Cause for Eviction and Relocation requirements High quality customer service/same page message to landlords, whether dealing with the Rent Board or BHA 9
BHA s Desired Outcomes..in partnering with the Rent Board? Further City goal of economic and racial diversity by supporting current and future low-income tenants. Encourage participation in the Section 8 Program Preserve existing assisted tenancies Ease of access to information for landlords/property managers Discourage constructive evictions Support City policies that require 50% of BMR units be leased to families at or below 50% AMI, preferably with a S8 voucher Working in collaboration with the City to address the housing needs of extremely low-income households in Berkeley Thinking creatively to address the issue of housing low and extremely low income families Thinking strategically to further family choice in where they reside by increasing the supply of affordable housing. 10
BMR/BHA Unit Analysis: 13 of 26 Developments with BMR Units Address Property Total BMR Units Total S8 % Below 30% AMI of HH s Contracts with S8 Voucher Average Annual Income # HH s at $0 Income 651 Addison Avalon 14 1 100% below 30% AMI $14,400 2002 Addison Art Tech 4 2 100% below 30% AMI $10,793 2116 Allston Gaia Bldg 18 11 100% below 30% AMI $11,101 1 2110 Haste Fine Arts Bldg 20 20 85% below 30% AMI $15,589 2020 Kittridge Library Gardens 35 9 100% below 30% AMI $17,083 1 1950 (1988) MLK New Californian 22 2 50% below 30% AMI $29,597 1910 Oxford Berkeleyan 11 9 78% below 30% AMI $14,016 1 1385 Shattuck 8 3 67% below 30% AMI $17,199 1797 Shattuck Hillside Village 21 4 100% below 30% AMI $3,218 2 1370 University Acton Courtyard 20 15 73% below 30% AMI $11,811 3 1627 University Renaissance Villas 6 3 100% below 30% AMI $10,415 2004 University Touiel 7 5 80% below 30% AMI $16,914 2119 University Bachenheimer 7 6 83% below 30% AMI $14,628 % Below 30% AMI: 86% Av. Annual HH Income: $ 14,366.53 11
Properties with BMR Units and Zero S8 Voucher Holders Address Property Total BMR Units Total S8 Contracts Heinz Durkee Building Wareham Development Group 17 0 800 University The Aquatic 4 0 2161 Allston Allston Place 12 0 2398 Bancroft Wesley House 1 0 2041 Center St Berkeley Central 23 0 2801 Cherry Cherry St 1 0 2310 Fulton Stadium Place 15 0 2500 Martin Luther King Jr. Way 2500 MLK 2 0 2700 San Pablo Avenue West 6 0 2616 20 Telegraph Telegraph Bay Apartments 4 0 3001 Telegraph Telegraph Apartments 6 0 700 University 4th & U Apartments 31 0 1116 1132 University Campanile Court 13 0 12