To: Honorable Chair and Commissioners
From: Vincent Smith, Community Development Director
Prepared By: Sabrina Flores, Rental Assistance Program Supervisor
TITLE:
Title
Section 8 Housing Choice Voucher Program Payment Standards
LABEL
RECOMMENDED ACTION:
Recommendationle
Adopt a resolution approving updated Section 8 Housing Choice Voucher Program Payment Standards
Body
DISCUSSION:
The Section 8 Housing Choice Voucher Program (the "Voucher Program") uses payment standards which are the maximum subsidies that the Housing Authority can pay on behalf of a family ("Payment Standards") based on the annual fair market rents ("FMRs") established by the U.S. Department of Housing and Urban Development ("HUD"). Fiscal Year 2020 FMRs are calculated using the 2017 American Community Survey ("ACS") one-year data, the 2013-2017 five-year data and information from local survey data. The latest FMR rates were published in the Federal Register and were effective October 1, 2019. The FMRs for Fiscal Year 2020 increased by 4% to 12% depending on bedroom size.
The Housing Authority is required by HUD to set the Payment Standard between 90% and 110% of the FMR for each bedroom size. The level at which the Payment Standard is set directly affects the amount of subsidy a family will receive, and the amount of rent paid by program participants. It also directly impacts the number of units that participants can rent within the Payment Standard. If the Payment Standard is too low, families may need to pay more than they can afford, or families may have a hard time finding housing. Based on an analysis of rents, cost burdens, and the Section 8 program's budget, staff recommends setting the Payment Standards at 100% of FMR for studios and one-bedroom units and 103% of FMR for two, three, four, five, and six-bedroom units.
In developing Payment Standard recommendations, staff considered the current rental market. The vacancy rate for rental units in Napa County remains low, an...
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