1. The Housing Authority of the County of San Mateo
Rent Reform: The Tiered Subsidy table
Moving To Work (MTW) Summit
February 4-5, 2014
Washington DC

2. Question: What if you could . . .
More accurately predict your maximum HAP expenditures each year?

3. Question: What if you could . . .
Adjust your per unit voucher costs (during budget cuts), without holding back vouchers?

4. Question: What if you could . . .
Significantly control your HAP budget during an exploding rental market?

5. Question: What if you could . . .
Reach underserved populations in your community due to HAP savings
Control per unit costs to the point that you would be able to over lease and potentially earn additional administrative fees

6. Question: What if you could . . . Better utilize staff time
Increase program integrity
Control program costs

7. With The Tiered Subsidy Table (TST) you CAN potentially . . .
Answer:
With The Tiered Subsidy Table (TST) you CAN potentially . . .
Predict your agency’s maximum HAP expenditures each year
Adjust your per unit costs without holding back vouchers
Control your HAP costs during an exploding rental market
Reach underserved populations due to HAP savings
Earn additional administrative fees through over leasing

8. With The Tiered Subsidy Table (TST) you CAN potentially . . .
Answer:
With The Tiered Subsidy Table (TST) you CAN potentially . . .
Better utilize staff time
Increase program integrity
Control program costs
AND:
Provide participants with the information they need to make informed and smart housing choices

9. The HACSM TST Rent Reform Program
In this presentation we’ll discuss the following:
Key Objectives and Critical Success Factors
Development of the TST
Using the TST as a communication and education tool
Lessons Learned
HACSM Outcomes

10. Key Objectives Administrative Efficiency Increased Housing Choice
MTW Program Goals
San Mateo County (SMC) Priorities
Administrative Efficiency
Increased Housing Choice
Increase Self-Sufficiency of Program Participants
Increase Timeliness
Decrease Complexity
Increase Housing Opportunities
Increase Self-Sufficiency of Participants
Seek additional avenues for providing housing assistance in SMC

11. Critical Success Factors
Community engagement through an extensive stakeholder process
Partner organizations
Legal advocates
Current residents and participants
Current property owners
HACSM staff
Community respect and resulting trust
Open Communication
Creation of a system that is intuitive and easy for the end user

12. The Agency’s HAP Budget and the TST
Development and monitoring of
the HAP budget and TST
Original TST design based on the FMR and then current participant’s rent
Cost neutral implementation
Participant rent burden vs Affordability of the Housing Authority
Underlying motivation included developing a system where the system itself built in a participant’s desire to increase financial self-sufficiency without penalty

13. Contract rents on the open market
Development of the TST
“The Challenges”
Contract rents on the open market
Status quo and resistance to change
Program simplification and demystification

14. The participant’s status
Development of the TST
Analysis
Agency budget
The participant’s status
Voucher size vs. unit size rented
% of AAI paid for tenant rent portion
Implementation impact analysis
Market trends

15. Analysis of Potential Negative Impacts
Development of the TST
Analysis of Potential Negative Impacts
Increased tenant rent burden
Increased cost to HACSM
Technology challenges
Implementation and transition challenges

16. The TST is based on three factors: The family’s annual adjusted income
Development of the TST
The TST is based on three factors:
The family’s annual adjusted income
The family’s voucher size
The agency’s HAP budget

17. The TST
How does it work?

18. Determining the Tenant Rent Portion
Essential Components
Voucher Size
Unit Size
Tenant’s annual adjusted income
Maximum Subsidy (based on TST)
Contract Rent (rent reasonable)

19. The Tiered Subsidy Table (TST)

20. Calculation Process: AAI and Tenant Rent
The Traditional Process

21. Calculation Process: AAI and Tenant Rent
The TST Rent Calculation Process

22. Determining the Tenant Rent Portion
 Please read entire document before completing form. Fill in all blanks below. Type or print clearly.
Voucher Number SAMPLE ----
 1. Insert unit size in number of bedrooms. (This is the number of bedrooms for which the Family qualifies, and is used in determining the amount of assistance to be paid on behalf of the Family to the owner.)
1. Unit Size 2
2. Subsidy Amount:
Maximum subsidy based on voucher size listed in box 1.
b) Maximum subsidy if unit rented is a bedroom size smaller than the voucher size in box 1.
2a b
  $1, $825

23. Tenant Rent Portion Determination
 Please read entire document before completing form. Fill in all blanks below. Type or print clearly.
Voucher Number SAMPLE ----
 1. Insert unit size in number of bedrooms. (This is the number of bedrooms for which the Family qualifies, and is used in determining the amount of assistance to be paid on behalf of the Family to the owner.)
1. Unit Size 2
2. Subsidy Amount:
Maximum subsidy based on voucher size listed in box 1.
b) Maximum subsidy if unit rented is a bedroom size smaller than the voucher size in box 1.
2a b
  $1, $825

24. Using the TST as a tool Communication Tool
Ability to have a fact-based discussion
Removal of the appearance of “red tape” and/or unequal treatment
Education Tool
Providing participants with the information they need to make informed choices
Personal decision-making
Personal empowerment
Increased self-sufficiency

25. Lessons Learned Keys ingredients for successful outcomes:
Agency reputation in the community
The political will of the agency
Community trust in agency’s integrity
Detailed work plans, including software conversion requirements
Internal staff understanding and buy-in
Education of community partners and HUD Field office

26. Outcomes Simplification of: Program Integrity Cost Saving TST
Elimination of 40% Lease Up
Eliminate Payment Standards
Include Utilities in Subsidy
Streamline AAI Calculation
Simplification of:
The program for the end user
The rent calculation process
The lease up process
Program Integrity
Reduction in errors
Cost Saving
Day-to-day expenditures
Staff Time

27. Outcomes Increased self-sufficiency Change in Paradigms
Staff – participant relationship
Community perception of “Section 8”
Beginning of a change in view of “Section 8” participants
Increased collaboration with community
For example: Landlords who do not increase rent, or who choose to lower the rent, once they learn that the tenant would be responsible for the increase not “the government”

28. Outcomes Decreased time from homelessness to stable housing
Increase Self-Sufficiency
HAP savings used to implement other programs (CORA, Service League, HIP)

29. Outcomes As of December 2013:
Over 90% of households pay less than 50% of AAI
Over 60% pay less than 40%
Over 30% pay less than 20%
Over 95% of participants are renting units that match their voucher size
Data from FY13 MTW Report

30. Contact Information
For additional information, contact:
Jennifer Rainwater, Planning and Program Innovation Manager