Title
Resolution to Approve Amendments to the HCV Administrative Plan: Chapters 16 Related to Cost Saving Measures to Prevent Shortfalls
Memorandum
Due to insufficient funding from HUD to respond to the local market rent increases, the Ann Arbor Housing Commission (AAHC) has gone into funding shortfall multiple budget cycles, despite taking numerous measures to manage costs. The AAHC is amending its Housing Choice Voucher (HCV) Administrative Plan to incorporate program updates, policy amendments, clarify procedural requirements, and/or implement newly approved Moving to Work (MTW) activities. The following revisions apply to Chapter 16 of the Administrative Plan and address implementation of cost saving measures to prevent shortfalls and termination of HAP contracts.
This part discusses the methodology the PHA will use to determine whether or not the PHA has sufficient funding to issue vouchers, approve moves, and to continue subsidizing all families currently under a HAP contract. The PHA must identify in the administrative plan, in the event of insufficient funding, cost saving measures the PHA will implement. The following sections outline the Administrative Plan chapter and policy area being revised, including the previous language and the updated policy language adopted by the AAHC.
PART VIII: DETERMINATION OF INSUFFICIENT FUNDING
16-VIII.B. METHODOLOGY
Current PHA Policy
The PHA will determine whether there is adequate funding to issue vouchers, approve moves to higher cost units and areas, and continue subsidizing all current participants by comparing the PHA's annual budget authority to the annual total HAP needs on a monthly basis. The total HAP needs for the calendar year will be projected by establishing the actual HAP costs year to date. To that figure, the PHA will add anticipated HAP expenditures for the remainder of the calendar year. Projected HAP expenditures will be calculated by multiplying the projected number of units leased per remaining...
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