Agenda

Return

PR.1

To:	Contra Costa County Housing Authority Board of Commissioners
From:	Joseph Villarreal, Housing Authority
Date:	September 24, 2019

Contra

Costa

County

Subject:

PRESENTATION BY CVR COVERING THE VOLUNTARY TRANSFER OF THE RICHMOND HOUSING AUTHORITY'S HOUSING CHOICE VOUCHER AND PROJECT-BASED VOUCHER PROGRAMS TO T

Action of Board On: 09/24/2019

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

ABSENT:

Jannel George-Oden, 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: September 24, 2019
,

BY:	, Deputy

RECOMMENDATIONS

PRESENTATION by consultant CVR covering the voluntary transfer of the Richmond Housing Authority's housing choice voucher and project-based voucher programs to the Housing Authority of the County of Contra Costa.

BACKGROUND

The transfer of approximately 1,670 active RHA voucher files occurred on July 1, 2019. HACCC has been working on bringing RHA's files into compliance with HUD regulations / standards. As expected, most files needed significant work. Additionally, over 350 owners had to be paid outside of normal processing timelines due to delayed rent payments. Some had not been paid for months by RHA, others were dropped in the data transfer from RHA to HACCC. Payments to four PBV properties had to be manually adjusted retroactive several months. Once all payments and credits were accounted for, these four PBV properties were collectively owed over $200,000 in back rent. At this point, staff anticipates that it will take over two years to clean all of RHA's cases.

BACKGROUND (CONT'D)

In addition to file cleanup, the most significant areas of concern for HACCC currently are:

An anticipated voucher funding shortfall of $6-$8 million.
RHA PBV compliance issues due to incomplete documentation for every project.
PBV funding timeline for RHA public housing conversions given shortfall status.
PBV competitive selection process for RHA public housing conversions. HUD has not yet committed to a process.
Hiring and training of new permanent staff. 8 new hires are in process and we are at various stages of hiring 10 more.
Need for a direct services Technical Assistance contract from HUD or the ability to hire consultants and be reimbursed by HUD to expedite cleanup of RHA files.
Confirmation of the HUD billing process for additional expenditures tied to the RHA transfer.

Fradique Rocha, Co-Chief Executive Officer, and Michael Tonovitz, Sr. Vice President, with CVR will review the attached presentation with the Board.

FISCAL IMPACT

The transfer of the Richmond Housing Authority's (RHA) Voucher programs has increased the Housing Authority of the County of Contra Costa's (HACCC) current contract with HUD from 7,097 vouchers to 9,101 vouchers. The transfer is anticipated to increase HACCC's voucher subsidies for FYE 2020 from $117 million to over $140 million.

CONSEQUENCE OF NEGATIVE ACTION