1. 1 Presented by: Janine Burrier, Housing Authority of the County of Santa Clara Karen Kreutzberg, Boulder Housing Partners Shannon Oury, Lawrence Douglas County Housing Authority Jennifer Rainwater, Housing Authority of the County of San Mateo

2. April 21, 2016 MOVING TO WORK RENT SIMPLIFICATION ACTIVITY (MTW ACTIVITY 2014-4) 2

3. Background  In March of 2013, sequestration-related cuts reduced HACSC’s Section 8 funding by over $16 million.  More than 90% of HACSC’s funding comes from the Section 8 program– unable to fallback on other income sources.  HACSC’s Board of Commissioners was faced with a serious decision--retrench Agency costs or terminate about 1,000 participants from the program. 3

4. MTW Activity 2014-4 (Rent Simplification Activity)  Eliminates allowances:  Mandatory allowances (dependent/elderly/disabled);  Medical/disability and childcare expense deductions;  Utility allowances.  Tenant rent percentage is flexible- can be set between 30% and 35% of monthly gross income or $50 minimum rent, whichever is higher.  Payment Standard continues to cap the maximum assistance HACSC will provide. 4

5. Rent Simplification Activity  HACSC’s Board can approve adjustments of the tenant rent portion (up or down) between 30% and 35%.  Factors that may necessitate a change in the rent portion, include:  Funding availability; or  To allow an increase the number of families assisted. 5

6. Activity Impact  HACSC initially set percentage at 35% of monthly gross income.  Average increase in monthly tenant rent portion was $78. Elimination of utility allowances was biggest contributor to increased tenant portion.  HACSC’s Board has since reduced the percentage to 32% of gross monthly income. 6

7. Results/Outcomes 7  Activity generated approximately $23 Million in savings in a one year period.  The sky didn’t fall- predictions of high eviction rates did not occur.  Activity reduced labor and rent calculation error rates.

8. Further Information  For more information, please contact:  Janine Burrier, Housing Policy Manager janine.burrier@hacsc.orgjanine.burrier@hacsc.org / (408) 993-3067  Leif Christiansen, Senior Housing Programs Analyst leif.christiansen@hacsc.orgleif.christiansen@hacsc.org / (408) 993-3085 8

9. Boulder Housing Partners Rent Reform

10. Guiding Principles Flat tiered rent based on bedroom size Incentivizes workYes Simulates the marketYes Simple and predictable for residentsYes Serves the same populationYes Simple to administerYes (CHFA tables) Rent has a relationship to incomeYes No major increases to rent burden Hardship policy: increases capped at 10% No major cost increases to BHP New one added 2015: MobilityYes

11. Flat tiered rent chart Two step system Family size + gross income = income tier Income tier + bedroom size = total tenant payment TTP – utility allowance + mixed eligible family member fee + amount of gross rent over payment standard = tenant rent Recertify every two years No interim recerts (except in extenuating circumstances)

12. Income chart Income Tier Family Size 12345678910 1 $ - - - - - - - - - - 2 4,000 4,200 4,400 4,600 4,800 5,000 5,400 6,000 6,400 6,800 3 5,500 5,700 6,700 7,300 7,900 8,400 8,900 9,500 10,100 4 7,200 8,300 9,300 10,400 11,300 12,200 13,000 13,900 14,800 15,700 5 10,900 12,400 14,000 15,500 16,800 18,000 19,200 20,500 21,800 23,200 6 14,100 16,100 18,100 20,100 21,700 23,300 24,900 26,500 28,100 29,800 7 17,300 19,700 22,200 24,700 26,700 28,600 30,600 32,600 34,600 36,700 8 20,500 23,400 26,300 29,200 31,600 33,900 36,300 38,600 41,000 43,500 9 23,700 27,100 30,500 33,800 36,600 39,200 41,900 44,700 47,400 50,300 10 26,900 30,700 34,600 38,400 41,500 44,600 47,600 50,700 53,800 57,100 11 30,285 34,605 38,925 43,245 46,710 50,175 53,640 57,105 60,531 64,163 12 33,650 38,450 43,250 48,050 51,900 55,750 59,600 63,450 67,257 71,292 13 40,380 46,140 51,900 57,660 62,280 66,900 71,520 76,140 80,708 85,551 14 47,110 53,830 60,550 67,270 72,660 78,050 83,440 88,830 94,160 99,809 15 53,840 61,520 69,200 76,880 83,040 89,200 95,360 101,520 107,611 114,068

13. Rent Chart 2016HCV Flat Tier Rent Chart Income Tier Bedrooms 0123456 1 $ 120 120 125 130 140 160 180 2 125 135 150 170 210 235 270 3 165 185 205 225 270 305 345 4 240 275 305 340 400 450 510 5 330 380 420 475 535 605 685 6 410 475 525 590 670 760 860 7 500 565 630 710 815 920 1,040 8 580 660 735 840 945 1,065 1,200 9 660 765 865 960 1,105 1,245 1,405 10 820 880 1,125 1,175 1,260 1,425 1,605 11 840 960 1,190 1,260 1,445 1,575 1,785 12 970 1,115 1,250 1,495 1,630 1,825 2,070 13 1,150 1,315 1,475 1,825 1,995 2,195 2,310 14 1,325 1,510 1,705 1,895 2,165 2,490 2,625 15 1,500 1,715 1,930 2,140 2,490 2,830 2,865

14. Results 20142016 Number of work abled families278266* Average income $17,588$27,187* Average HAP $750 $567* As of 4/18/16, only 191 have been processed

15. For Additional Information Karen Kreutzberg MTW and Federal Policy Manager Phone: 720.564.4631 | Fax: 303.302.1658 kreutzbergk@boulderhousing.org

16. MTW Rent Reform Lawrence-Douglas County Housing Authority

17. The Principles Behind the Original MTW Proposals 17  That public housing and Section 8 units have real economic value and that tenant rent should reflect that value.  Work is valuable and people accept and rise to reasonable levels demanded of them.  Provide necessary tools for participants to increase self- sufficiency through Resident Services Office programs.

18. The LDCHA MTW Program Requirements In June 1999 the LDCHA began operating under new MTW rules instead of standard federal regulations. These rules are:  All non-elderly, non-disabled individuals must participate in the MTW program.  All adults in an MTW-participating households must work no less that 15 hours per week. Enrollment in a post-secondary education program meets the work requirement.  MTW participants must pay rent under the MTW rent formula that is based on a sliding scale with minimum and maximum rents per bedroom size. 18

19. Key MTW Rent Structure Elements To establish an affordable rent structure while it: 19 PrinciplesProgram Element Values the unitRent structure based on bedroom size & minimum rent Eliminates disincentives to workAnnual rent Motivates households to workDeductions increase with income Reflects the marketplaceEstablishes meaningful minimum and maximum rent Increases housing authority income Reduces federal subsidy / increases local housing assistance, and fund Resident Services directed at improving tenant self- sufficiency

20. The original & current MTW rent structure: Bedroom Size MTW Minimum Rent MTW Maximum Rent MTW Payment Standard 110% FMR 1$185$435$692 2$215$500$897 3$255$575$1,312 4$275$665$1,442 5$315$690$1,658 Bedroom Size MTW Minimum Rent MTW Maximum Rent MTW Payment Standard 110% FMR 1$150$350$407 2$180$400$523 3$230$450$728 4$280$480$838 20 19992016 Originally set at 30-40% of FMR and revised over time.

21. Results 20002015 Public HousingHCVPublic HousingHCV Employed119172162287 Education15602140 Job TrainingN/A03628 Unemployed49631125 Evictions for non-payment: Avg. 10.5/yr817 Homes purchased: 80 total since 20000046 21 New units made available through MTW: 72

22. 22 For Additional Information: Shannon C. Oury Executive Director soury@ldcha.org 785-830-2250 (Direct)

23. Housing Authority of the County of San Mateo MTW Annual Conference – April 21, 2016 Rent Reform & Occupancy Policy PanelRent Reform & Occupancy Policy Panel

24. Rent Reform Key Policy Decisions ▪Increasing the self-sufficiency of program participants –Provide the information needed for participants to make informed choices –Encourage increase in income without negative impact –Encourage savings and asset building ▪Net neutral impact @ initial implementation ▪HAP budget stabilization and forecast

25. The Tiered Subsidy Table (TST) ▪Designed for use in the HCV Program –Open market where PHA cannot control the asking rents by private landlords –Empower participants to make informed housing choices ▪Provides maximum contribution, independent from the contract rent, from PHA towards the participant’s total housing costs (rent + utilities) ▪Subsidy is based on four factors: adjusted –Household annual adjusted income –Voucher size (lesser of voucher size or unit size rented) –Fair Market Rents –HAP budget

26. The TST

27. Tenant Rent Determination Process ▪Step 1: Determine the Annual Adjusted Income ▪Step 2: Determine Voucher Size ▪Step 3: Based on Steps 1 & 2, determine the maximum subsidy amount (HAP) ▪Step 4: Subtract the HAP from the negotiated contract rent ▪Step 5: Inform the participant of their rent portion. Note: All households are required to pay at least $50 each month for rent. AAI & Voucher Determination Contract Rent Tenant Rent

28. TST – Cornerstone for other MTW Activities TST Eliminate Payment Standards Include Utilities in Subsidy Streamline AAI Calculation Elimination of 40% Cap @ Lease Up

29. Key Outcomes Tenant Rent Burden (CY2015)

30. For additional information, please contact: Jennifer Rainwater, Planning and Program Innovation Manager 650-802-5045 jrainwater@smchousing.org Cindy Chan, Rental Programs Manager 650-802-3322 cchan@smchouing.org