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D.4

To:	Contra Costa County Housing Authority Board of Commissioners
From:	Joseph Villarreal, Housing Authority
Date:	February 12, 2019

Contra

Costa

County

Subject:

EFFECTS OF A POSSIBLE FEDERAL GOVERNMENT SHUTDOWN ON HACCC'S PROGRAMS

Action of Board On: 02/12/2019

APPROVED AS RECOMMENDED

OTHER

Clerks Notes:

VOTE OF SUPERVISORS

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 12, 2019
,

BY:	, Deputy

RECOMMENDATIONS

RECEIVE an oral report on the effects of a possible federal shutdown on the Housing Authority of the County of Contra Costa's (HACCC) programs.

BACKGROUND

Staff will provide the Board with an oral update on this matter.

FISCAL IMPACT

The effect of a possible shutdown on HACCC's financial status will vary depending on the length of the shutdown. A short shutdown should have little, or no impact. A longer shutdown could cause some programs to cease operation.

CONSEQUENCE OF NEGATIVE ACTION

None. Information item only.

CLERK'S ADDENDUM

Mr. Villarreal noted the funding mechanisms are different for public housing and for housing vouchers. He expects to receive the normal amount of funding through June 1, 2019 for public housing. For Section 8 vouchers and some smaller programs, he expects funding to cover March and April, but it remains to be seen if the funds arrives in those accounts by Friday (before a possible shutdown).

An extended government shutdown would place public housing in a position of not having the funds to maintain the properties sufficiently. Homeowners contracting with the County for Section 8 vouchers would be exposed to possible lack of funds from the HUD portion of the rent after March/April, placing those owners in financial risk in regard to paying the mortgage on the home. No evictions are allowed if HUD does not pay it’s portion, but the tenant keeps their obligation.

An extended shutdown would not directly result in any loss of housing in the short term, but would place many vouchers and programs at risk of closure through individuals exiting the program, defaulting on mortgages, and the inability to keep legal and safety obligations to tenants.