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6:30 P.M.

INVOCATION:          

The Courts have concluded that sectarian prayer as part of City Council meetings is not permitted under the Constitution.

FLAG SALUTE:

ROLL CALL:

JOINT MEETING WITH THE CITY COUNCIL:

1.      PUBLIC HOUSING AGENCY FIVE-YEAR PLAN (FISCAL YEAR 2005-06 to FISCAL YEAR 2009-10) AND ANNUAL PLAN (FISCAL YEAR 2005-06):

The purpose of this report is to provide additional information necessary for the Housing Authority Board to consider: 1) the Five-Year Public Housing Agency Plan for (Fiscal Years (FY) 2005-06 � FY 2009-10); 2) the Public Housing Agency Plan FY 2005-06 (which includes an amendment to the Section 8 Program payment standard); and, 3) authorizing the Board Chairperson and the Executive Director to execute the certifications that are required by the United States Department of Housing and Urban Development (HUD).  The Five-Year Plan describes the mission of the Housing Authority and the goals for achieving its mission over the next five years.

The mission of the Burbank Housing Authority is to provide affordable housing that is decent, safe and sanitary to very-low income tenants in Burbank.  By implementing the Federally-funded Section 8 Program, the Housing Authority is able to take existing units in the private market and make them affordable.  The primary goal of the Housing Authority is to assist the greatest number of families or households within the HUD-allocated budget, utilizing all 1,014 housing assistance vouchers available to Burbank.

On February 15, 2005, the draft Public Housing Authority Five-Year Plan and the Annual Plan were presented to the Council/Housing Authority Board for consideration. In response to the information presented (specifically a proposal to adjust Burbank�s housing assistance payment standard) additional information was requested on the following:  1) update on Section 8 waiting list purge process; 2) Section 8 tenant income profile; 3) fair market rent standards; and,  4) Section 8 funding options.

The approved Section 8 Administrative Plan calls for a purge of the applicant waiting list every 24 months.  The primary goal in purging the waiting list is to obtain current information on interested applicants and to remove applicants that are inaccessible or no longer interested in participating in the program.  This process involves mailing letters to all applicants on the Applicant Waiting List informing them that any change in address must be sent in writing to the Burbank Housing Authority.  On February 15, 2005, the Authority Board inquired whether or not the waiting list purge process should occur more frequently.  The Housing Authority has an extremely low turn-over in tenants and rarely has significant numbers of openings on the program.  Also, as mentioned above, the Housing Authority updates its records on an ongoing, as-needed basis whenever applicants notify the Authority of changes in addresses, phone numbers or any changes that might affect preference status.  Based on these two factors (low tenant turn-over coupled with ongoing updates to keep contact and preference information current) staff opines that the frequency of the purge process (every 24 months) as currently defined in the Housing Authority Administrative Plan is adequate.

In terms of program participant incomes, the average annual household income ranges from $9,630 per year for a studio unit (no bedroom) to $19,337 annually for a three-bedroom unit.  This range results in an overall program average income of $14,088.

Since 1999, the Housing Authority established the policy of setting the Section 8 payment standards at 110 percent of the fair market rents.  However, in recent years the HUD allocation has not been enough to fund the program.  The Burbank Housing Authority has used this generous payment standard and has still been successful in achieving its primary goal.  This has been possible because the Housing Authority had a sufficient amount of reserve funding available from which to draw.

The per-household subsidy is based on the HUD-established fair market rent standards.  As that component increases, the gap between what the tenants pay (Section 8 subsidy) also increases.  With rental standards on the rise, the local standard of paying 110 percent above the HUD fair market rents has negatively impacted the Authority�s budget.  As mentioned, the Authority has been fortunate to have had reserve funds available to bridge the gap between HUD funding and the 110 percent payment standard.  However, these funds are finite and if conditions are left unchanged, the Housing Authority reserve funds will be exhausted in less than 12 months.

In an effort to avoid reducing rental vouchers or depleting all reserves, staff is recommending a program administration amendment to the payment standard from the fixed rate of 110 percent above the fair market rents to 90 percent of the fair market rents.  Based on program statistics as of February 2005, setting the payment standards at 90 percent of the fair market rent would ultimately result in an average per-household subsidy decrease of $104 per month for approximately 34 percent of the program participants (roughly 340 households).  While this amount represents the average monthly impact, the actual range is $70 to $157.  In accordance with HUD guidelines, a local Authority must provide a two-year notice period to the affected tenants.  In the meantime, households new to the program and tenants that move would be assisted at the new payment standard of 90 percent.

With this reduction the Housing Authority will be able to continue serving the maximum number of households (1,014) possible, thereby, providing the highest level of service and assistance to the greatest number of people while staying within the annual budget (without reliance on the General Fund for assistance).

Staff was asked to investigate the possibility of using other funding sources to augment the Section 8 HUD allocation.  While the Federal HOME Program guidelines allow for rental subsidies and California Redevelopment Law also allows the Agency to exercise any or all of its powers to provide affordable housing (including the provision of rental subsidies), in accordance with the HUD Section 8 guidelines, the �layering� of other funds with the Section 8 Federal allocation is prohibited.  However, as mentioned, both Federal HOME Program guidelines and California Community Redevelopment Law have provisions that allow rental subsidy programs.  Such a program would have to be structured and administered separately from the Section 8 program. 

Recommendation:

Adoption of proposed Housing Authority resolution entitled:

A RESOLUTION OF THE HOUSING AUTHORITY OF THE CITY OF BURBANK APPROVING THE FIVE YEAR PUBLIC HOUSING AGENCY PLAN AND THE PUBLIC HOUSING AGENCY ANNUAL PLAN FOR FISCAL YEAR 2005-06 AND AUTHORIZING THE CHAIRPERSON AND EXECUTIVE DIRECTOR TO EXECUTE THE CERTIFICATIONS REQUIRED BY THE UNITED STATES DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT.

RECESS to continue the City Council meeting.

ADJOURNMENT.