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D.5

To:	Contra Costa County Housing Authority Board of Commissioners
From:	Joseph Villarreal, Housing Authority
Date:	May 12, 2015

Contra

Costa

County

Subject:

Report on the Status of the Housing Authority's Rental Assistance Demonstration Application to HUD for Vacant Units as Las Deltas

Action of Board On: 05/12/2015

APPROVED AS RECOMMENDED

OTHER

Clerks Notes:

VOTE OF SUPERVISORS

AYE:

John Gioia, Commissioner
Candace Andersen, Commissioner
Mary N. Piepho, Commissioner
Karen Mitchoff, Commissioner
Fay Nathaniel, Commissioner
Jannel George-Oden, Commissioner

ABSENT:

Federal D. Glover, 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: May 12, 2015
,

BY:	, Deputy

RECOMMENDATIONS

CONSIDER ACCEPTING a report on the status of the Housing Authority's Rental Assistance Demonstration (RAD) application to the U. S. Department of Housing and Urban Development for vacant units at Las Deltas in North Richmond.

BACKGROUND

HUD’s FY2015 budget was finalized as part of an omnibus appropriations bill signed by the President on December 16, 2014. In addition to HUD's budget, the bill expanded the RAD program from 60,000 units to 185,000. According to HUD, the new cap is sufficient to process all applications on its waiting list (including HACCC's) as well as 8,000 new units. The deadline for applying was also extended three years to September 30, 2018. The omnibus bill permanently extends the second component of RAD to preserve projects with older forms of rental assistance (Rent Supplement, Rental Assistance Payment, and Section 8 Moderate Rehabilitation, all usually owned by private or nonprofit entities), and allows those conversions to use either project-based rental assistance (PBRA) or project-based voucher (PBV) and newly allows RAD to be used to preserve McKinney Vento Mod Rehab SRO units.

BACKGROUND (CONT'D)

As a result of the omnibus bill, HACCC recently received preliminary approval from HUD for its two RAD applications to convert 90 vacant public housing units at Las Deltas in North Richmond to PBV assistance. The Board approved, and staff submitted, these RAD applications in December 2013. Staff will provide the Board with an oral update on these applications.

Attached are the two approval letters received from HUD as well as a map showing the units at Las Deltas that will be affected if the applications are ultimately approved.

FISCAL IMPACT

If final approval is received from the United States Department of Housing and Urban Development (HUD), the Housing Authority’s (HACCC) RAD application would convert between 50 and 107 vacant public housing units for which HACCC receives no operating subsidy or rent into PBV units. The PBV subsidy for these units is expected to be worth approximately $42 million in funding over the next 30 years.

CONSEQUENCE OF NEGATIVE ACTION