CITY COUNCIL Public Housing Authority Annual Plan FY19 Anne Lansing, Housing Assistance Officer April 08, 2019

PHA Plan Overview Annual plan required by HUD As high-performing HCV-only agency, Pasadena submits a “streamlined plan” Outlines financial resources, progress on mission & goals Annual plan required by HUD Administrative Plan is policy and procedure manual for rental assistance programs Two substantive changes proposed The Administrative Plan is a required attachment

Proposed Changes to Admin Plan Voucher size restored to 1 bedroom from 0 bedroom This opens up more potential units to rent Increased subsidy standard for single person household Households exiting Rapid Rehousing (10 vouchers) Households exiting PSH programs (5 vouchers) Over-housed families in City-funded affordable housing (15 vouchers) Three new limited preferences (voucher set-asides) During the Great Recession, as a result of funding cuts from HUD, the subsidy standard for a single person household was reduced from a one bedroom to a zero bedroom. This resulted in lower assistance payments being made by the City, but fewer households being able to use the voucher. The funding ratio from HUD has since increased, so we are restoring the subsidy standard to a one bedroom. This will result in more units being affordable to voucher holders, and potentially a higher utilization rate in a tight rental market. Three limited preferences, or voucher set-asides, were created. These set-asides are for a total of 30 vouchers out of 1409. Two of the set-aside categoties are for households exiting homeless housing programs in Pasadena, specifically Rapid Rehousing (10 vouchers) and Permanent Supportive Housing (5 vouchers). These preferences allow households who have experienced homelessness and have stabilized their living situation but remain very low-income to move to less structured but still affordable housing with the help of the voucher. This frees up the homeless housing slot for a household in need, while allowing the vouchered household to retain their stability. The third limited preference is for households living in family affordable housing that was developed with financial assistance from the City, who are now over-housed. Over-housed situations occurs when families move into affordable housing projects with children, who then grow up and move out of the unit, resulting in the parents living in a larger bedroom-size unit than needed. Fifteen (15) vouchers are being set-aside to allow these households the opportunity to move to appropriate-sized units, opening up an affordable unit for another family.

Rental Assistance Update 1258 HCV currently leased up 1197/1317 “Section 8” 241 are Project-based 46/60 Non-Elderly Disabled (NED) Vouchers 15/32 VASH Vouchers for homeless vets City of Pasadena Housing Department administers 1409 Housing Choice Vouchers 85 Shelter plus Care Homeless Vouchers 15 HOPWA vouchers for persons with HIV/AIDS Approximately 100 Special Needs non-Section 8 Vouchers

Rent & Income Snapshot 50% of participants earn between $10K-15K Average Tenant rent=$459 Average Payment to Landlord=$869 Average Contract Rent=$1328 50% of participants earn between $10K-15K Average annual income=$15,700 Percentage employed=22% 79% of participants are elderly/disabled Percentage with pension/disability/Social Security=77% Average payment to landlord has increased by $68 since last year Average annual income has increased by $364 since last year

Landlord reluctance to participate Current Challenges Payment standards are lower than market rent Paperwork, annual inspections Stereotypes and urban legends Between 2010 and today, participating landlords dropped from 532 to 405 Landlord reluctance to participate 22K persons on waiting list Preference is given to those who live or work in Pasadena Need outstrips demand HUD reimbursement rate does not keep pace with a high cost rental market Inadequate funding Number of landlords dropped by 16 from last year

Project-based Vouchers Current Initiatives Participation in Property Owner Events Outreach to Landlord Associations Landlord Outreach Increase from 20% to 30% Primarily special needs housing Project-based Vouchers