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To:	Contra Costa County Housing Authority Board of Commissioners
From:	Joseph Villarreal, Housing Authority
Date:	February 14, 2017

Contra

Costa

County

Subject:

REPORT ON PROJECTED BUDGET CUTS TO THE PUBLIC HOUSING PROGRAM FOR FEDERAL FISCAL YEAR 2017

Action of Board On: 02/14/2017

APPROVED AS RECOMMENDED

OTHER

Clerks Notes:

VOTE OF SUPERVISORS

AYE:

John Gioia, Commissioner
Candace Andersen, Commissioner
Diane Burgis, Commissioner
Karen Mitchoff, Commissioner
Federal D. Glover, Commissioner
Jannel George-Oden, Commissioner

ABSENT:

Fay Nathaniel, Commissioner

Contact:

925-957-8028

I hereby certify that this is a true and correct copy of an action taken and entered on the minutes of the Board of Supervisors on the date shown.
ATTESTED: February 14, 2017
,

BY:	, Deputy

RECOMMENDATIONS

CONSIDER accepting a report on the projected budget cuts to the public housing program for federal fiscal year 2017.

BACKGROUND

The federal government is currently being funded through April 28, 2017 by a continuing resolution (CR), passed in December 2016 with spending levels based on the Senate's fiscal year (FY) 2017 budget resolution passed on January 12, 2017.

BACKGROUND (CONT'D)

The Senate's budget was passed with the intention of repealing the Affordable Care Act. At heart, the Senate's budget is a technical procedure that could allow the Senate to develop a special kind of legislation called a reconciliation bill. Such a bill can be used to repeal significant parts of the health law and, critically, is immune from being filibustered. What is important for this Board Order, is that the spending levels in the Senate's budget are not intended to have an impact on FY 2017 spending and it is hard to predict where final federal spending levels will be set.

Based on the CR and the Senate's budget, the U.S. Department of Housing and Urban Development (HUD) is providing the Housing Authority (HACCC) with an advance of 85% of its public housing operating subsidy for calendar year 2017. Should HUD's projected funding level hold, the public housing program would sustain a loss of $957,974 for HACCC's FY 2018.

Staff will provide an oral update on the impact this will have on the budget that will be presented at next month's meeting.

FISCAL IMPACT

The extent of the cuts is unknown at present. Based on the current HUD advance and intact spending levels, the public housing program would sustain an 8.7% loss of $957,974 for the Housing Authority's fiscal year 2018.

CONSEQUENCE OF NEGATIVE ACTION

None. Information item only.