Drought Housing Relocation Assistance Program (DHRA) “ Getting Started ” Webinar Thursday, October 15, 2015

Today’s Webinar Presenters Tom Bettencourt, Branch Chief, Planning and Evaluation Connie Mallavia, Representative, Planning and Evaluation

Webinar Participation This Webinar is being recorded and will be posted to the HCD Website. This is an interactive Webinar. To ask a question, use the ‘raise hand’ icon at the bottom of your screen.

SUMMARY OF DHRA This drought relief program was developed to allow those tenants and homeowners that meet program guideline eligibly requirements the ability to relocate and receive temporary rental assistance for 12 months.

For households with no potable water, and no other alternatives, provide moving expenses and one year of rental assistance Active involvement of County OES offices Resiliency Plan Key Program Goals

Key Program Terms Sponsor Responsibilities Provider Responsibilities Eligible Household Moving Allowance Expense

Rental Subsidy Net Housing Costs - (renters and homeowners) & Utility Allowance Payment Standards (FMR) Key Program Terms

Sponsor Responsibilities County Government – usually County OES Office Advisory committee composed of local emergency service, social service and housing representatives. Establishes priority order for eligible households Evaluates water issues

Outreach Locate suitable housing and work with landlords to mitigate barriers to housing Priority Factors established by Sponsor Completes Client Application and gathers required documentation Provider Responsibilities

Calculates Moving Cost Allowance Inspects Replacement Rental Unit Calculates: Net Rent, Payment Standard - (FMR), Rental Subsidies, Utility Allowance Executes legal documents between Provider and owner of Replacement Unit Provider Responsibilities

Makes regular timely payments of Rental Subsidies directly to the owner of the Replacement Rental Unit Maintain accurate financial and demographic records Submit monthly reimbursement requests to HCD Provider Responsibilities

Eligible Household 1.) Household with an income less than 120% Area Median Income (AMI), adjusted for household size 3.) Lack of water caused by drought conditions - verified by County OES, Public Health or other appropriate County office or qualified 3 rd Party 2.) Provider verifies household is served by private well or water utility with less than 15 connections that is running out of an adequate supply of Potable Water……….. 4.) Provider must verify ‘feasibility’ of alternatives in a reasonable period of time

Eligible Household Alternatives: ▪ Connecting to nearby water system or functioning well ▪ Obtaining temporary water tank - connected to unit’s plumbing system ▪ Access to affordable Potable Water deliveries ▪ Repairing or replacing existing well 5.) Acceptable documentation: Widespread failure of wells or water systems in a neighborhood, media reports, government agency reports, similar material 6.) Provider must verify Current Residence by obtaining a utility bill or driver’s license or similar documentation showing household lives at Current Residence

Fixed Residential Moving Cost Schedule Link provided in Program Guidelines Based on number of “rooms of furniture” Excludes bathroom(s), hallway(s), and closets So, a typical 3 bedroom home has 5 rooms (3 bedrooms, kitchen, living room) Per the Schedule, the check would be for $1,665 No documentation required Moving Allowance Cost

Rental Subsidies & Net Rent (for renters) 12 months multiplied by the difference in Net Rent at existing and new location Net Rent is Gross Rent minus the Utility Allowance Utility Allowance is established by the Housing Authority and depends on: –Type of utilities used for heating, cooking, and water heating, and –Whether Tenant or Owner pays for which utilities –Number of Bedrooms

Rental Subsidies for Homeowners 12 months multiplied by the difference between 35% of Income and the total of Net Housing Cost and the Net Rent at the new location Net Housing Cost is the total of mortgage payment, property insurance and property taxes at the current residence Net Rent at the new location is the same as for previous slide Income is based on 2014 Form 1040 form (Total Income, Line 22).

110% multiplied by the Fair Market Rent (FMR) FMR varies by County and number of bedrooms Replacement Rental Unit cannot rent for more than 110% FMR minus the Utility Allowance Provider may request HCD to approve 120% of the rent if needed Payment Standard- FMR

Example (for Renters) 2 Bedroom FMR is $ % FMR is $848 Utility Allowance is $93 Maximum rent to owner is $848 – $93 or $755 Must find unit renting for $755 or less

Example (for Renters) Current Rent is $600 Current Utility Allowance is $75 –Net Rent is $525 (600 – 75) Replacement Rent is $750 Replacement Utility Allowance is $100 –Net Rent is $650 (750 – 100) Difference in Net Rent is $650 – $525= $125 –Pay $125 per month for 12 months

Example (for Homeowners) 2 Bedroom FMR is $ % FMR is $848 Utility Allowance is $93 Maximum rent to owner is $848 – $93 or $755 Must find unit renting for $755 or less

Example (for Homeownership) Net Housing Costs are $1,000 ($800 mortgage, $100 taxes, $100 insurance) Replacement Unit Net Rent is $650 (750 – 100) Add Housing Cost and Net Rent, which is $1,650 (1,000 plus 650) 35% of Income, e.g. $3,000 X 35% or $1,050 –Rental Subsidy is difference between $1,650 and $1,050, or $600 –Pay $600 per month for 12 months

Reporting Requirements Monthly Reimbursement Requests Status Report of each assisted Household – 6 months Maintain accurate financial and demographic records - Non- Discrimination - Outreach - Due Process and appeal rights to applicants

Questions Please submit to: Tom Bettencourt Or Connie Mallavia