To: Honorable Chair and Commissioners
From: Steve Potter, Executive Director
Prepared By: Stephanie Gaul, Housing Manager
TITLE:
Title
Rental Assistance Continuity Program
LABEL
RECOMMENDED ACTION:
Recommendationle
Adopt a resolution authorizing the rental assistance continuity program and associated budget as documented in Budget Adjustment 559.
Body
DISCUSSION:
The Housing Authority of the City of Napa (“the Housing Authority”) operates rental assistance programs funded from Federal and State programs. In addition, several other social support services in the greater Napa community provide rental assistance from Federal and State sources. Programs include but are not limited to the Section 8 voucher program, Emergency Housing Vouchers, Shelter Plus Care subsidies, permanent supportive housing subsidies, and rapid rehousing subsidies.
In March 2025, the Housing Authority was informed that Emergency Housing Vouchers would see an earlier end date than originally anticipated. When Emergency Housing Vouchers were authorized under the American Rescue Plan in 2020, the statutory sunset date was September 30, 2035 and it was anticipated that funding would remain intact until 2030. However, with rising housing costs across the nation, the US Department of Housing and Urban Development (HUD) has obligated a final allocation for Emergency Housing Vouchers which is expected to maintain rental assistance in most agencies only through 2026. The Housing Authority currently has 49 households who are receiving subsidies through an Emergency Housing Voucher.
In addition to federal rental assistance funding constraints, federal policy direction of housing programs is currently focused on program efficiency and encouraging self-sufficiency. Recent HUD press releases indicate that federal rental assistance programs may face programmatic changes such as voucher time limits, work requirements, and more stringent eligibility requirements.
The Housing Authority participates in the Napa City and County Continuum of Care which has established a goal of creating prevention programs to help reduce the number of households that experience homelessness. Because of the expiration of federal subsidy programs, and the possible changes to rental assistance policy, the Housing Authority desires to create a local rental assistance continuity program (“the Program”) for all households that lose a federal subsidy due to the ending of a program or due to federal policy changes. At current, the Housing Authority has identified three households who are at imminent risk of homelessness due to an ending federal subsidy and an additional 49 households that will be at risk when Emergency Housing Vouchers end in late 2026. It is estimated that there are additional households who could face loss of federal subsidy who are currently assisted under programs administered by other social service agencies.
The Program will provide continuity of rental subsidy for households that are currently on a federal program and will lose the subsidy at no fault of the household. The Program is not intended to replace a subsidy for any household who can remain on their current subsidy program, nor is the program intended to support households who are a circumstance of natural program attrition such as the inability to locate housing during their voucher term. The Program is intended to provide subsidy to any household who is losing a federal subsidy based on the ending of a program, such as the Emergency Housing Vouchers, or federal policy change, such as households with ineligible immigration status.
Households served by the Program must be referred by a Homeless Management Information System (HMIS) participating agency, which includes the City of Napa, Housing Authority of the City of Napa, County of Napa, and several social service providers. Households eligible for the Program must have remained eligible for the federal subsidy program they were on, if not for the ending program or change in federal policy. The subsidy provided under the Program will remain under the same program terms as the program the household exits. The goal of the Program is to provide continuity of rental assistance to the household; all maximum rent thresholds, income qualifications, and tenant responsibilities would remain the same as the program the household was previously enrolled in.
A local rental assistance continuity program is expected to serve up to 15 households annually at an estimated annual cost of $250,000. Funding for the Program has been identified from 20% Low/Mod Funds. These funds are former Redevelopment Housing funds which have an allowable use of supporting homeless prevention and rapid rehousing services. A budget adjustment is necessary to allocate $250,000 in Fiscal Year 2025/26. Budget for Fiscal Year 2026/27 will be included in the mid-cycle budget process.
FINANCIAL IMPACTS:
Funding for the Program has been identified in the fund balance of the 20% Low/Mod fund. An associated budget adjustment for $250,000 in Fiscal Year 2025/26 is included in this action.
CEQA:
The Executive Director has determined that the Recommended Action described in this Agenda Report is not subject to California Environmental Quality Act (CEQA), pursuant to CEQA Guidelines Section 15060(c).
DOCUMENTS ATTACHED:
ATCH 1 - Resolution
EX A - Budget Adjustment 559
ATCH 2 - Rental Assistance Continuity Program Outline
NOTIFICATION:
None.