Title
Resolution to Increase One FTE in the FY20 Housing Commission Budget to Administer Additional Housing Vouchers (8 Votes Required)
Memorandum
The Ann Arbor Housing Commission is requesting approval of One additional FTE in the FY20 budget due to a new HUD award of 90 Non-Elderly Disabled (NED) Vouchers and 11 Homeless Veteran Supportive Housing (VASH). This position will be paid for primarily with new HUD administrative funds and the AAHC will pay the balance of the staffing and administrative costs. The AAHC is not requesting additional general funds. These funds are not grant funds. These funds are a payment for services to complete a contract with HUD.
The Ann Arbor Housing Commission (AAHC) was awarded $882,015 to provide rent subsidies for 90 new NED tenants in November 2019. This award automatically renews annually. In addition, HUD will pay the AAHC an administrative fee of approximately $66,000/year, which is also automatically renewed each year by HUD.
The AAHC was also awarded $76,718 to provide rent subsidies for 11 new Homeless Veterans with Supportive Housing (VASH) in December 2019. This award increases our VASH vouchers from 226 to 237. This award automatically renews annually. In addition, HUD will pay the AAHC an administrative fee of approximately $7,200/year, which is also automatically renewed each year by HUD.
The AAHC is requesting the addition of 1 FTE to pull names from our waitlist, process applications, conduct briefings with applicants, calculate and verify income eligibility, coordinate apartment inspections, coordinate with our community partners and work with landlords to comply with the program. Under the voucher program, tenants are required to report all income changes and landlords are required to report all lease changes. Therefore, this position has ongoing requirements to administer the program. Once the initial tenants are leased-up, this position will be responsible for conducting interim and annual income calculations and verifications. This position will also take on responsibility for leasing-up new homeless veterans. Staff currently have caseloads ranging from 210-250 tenants. Current staff cannot absorb 101 additional tenants into their caseloads without incurring significant overtime hours.
One FTE costs $76,000/year, including benefits. The AAHC will cover the balance of the staffing costs and administrative costs such as software licensing fees and inspection fees. If approved, this position will likely not start prior to February 1, 2020, therefore, the FY20 budget will be for 5 months instead of 12 months, which is $31,700 for salary and benefits.
Although the HUD NED funding does not include additional funding for supportive services, the AAHC is partnering with with Avalon Housing, Salvation Army, Michigan Ability Partners, Interfaith Hospitality Network, Safe House, SOS Community Services, Washtenaw Housing Alliance, Shelter Association of Washtenaw County, Center for Independent Living, Catholic Social Services and Washtenaw County’s Community Mental Health, Office of Community and Economic Development, and Sheriff’s Department. Our partner agencies will work directly with these households using existing community resources to help them find and maintain their housing.
Local Veteran’s Affairs staff will be providing on-going case management support through a separate VA award for the VASH households.
All of these HUD funds will be provided directly to the Ann Arbor Housing Commission and do not require any additional general funds. The AAHC is requesting approval of 1 FTE to be hired as soon as possible. The AAHC must lease up these vouchers within 1 year of the award.
Staff
Prepared by: Jennifer Hall, Executive Director, Ann Arbor Housing Commission
Reviewed by: Derek Delacourt, Community Services Area Administrator
Approved by: Howard S. Lazarus, City Administrator
Body
Whereas, The City of Ann Arbor and the Ann Arbor Housing Commission have a goal to increase affordable housing for low-income households; and
Whereas, The Ann Arbor Housing Commission has been awarded $882,015 in additional HUD rental subsidies for 90 Non-Elderly Households with a family member with a disability effective December 1, 2019; and
Whereas, The Ann Arbor Housing Commission has been awarded $76,718 in additional HUD rental subsidies for 11 Homeless Veterans effective January 1, 2020; and
Whereas, These funds are automatically renewed annually by HUD and are a contractual agreement with the AAHC to administer this program; the funds are not grant funds; and
Whereas, The Ann Arbor Housing Commission needs to hire an additional FTE to administer these vouchers, which will be paid for primarily by HUD Administrative Fees and supplemented with AAHC funding; and
Whereas, If the position is approved it will likely start no earlier than Feb 1, 2020, which is five-months salary and benefits in the amount of $31,700.00.
RESOLVED, That City Council authorize the addition of 1 FTE for the Housing Commission in the FY20 budget;
RESOLVED, That City Council approve the use of $31,700.00 in HUD and AAHC funding for one (1.0) FTE ($76,000 x 5 months is $31,700.00);
RESOLVED, That City Council approve an appropriation of the $31,700.00 in HUD and AAHC funding to the Housing Commission budget in FY20 for 1.0 FTE for 5 months; and
RESOLVED, That City Council approve an increase to the General Fund Community Development expenditure budget in the amount of $31,700.00 with the funding for this increase to be reimbursed by the Ann Arbor Housing Commission.