Title
Landlord Incentive Program and Rental Rehabilitation Program
Description
This report provides the Economic Development and Equity Subcommittee with information about the Landlord Incentive Program and Rental Rehabilitation Program.
THIS ITEM IS FOR INFORMATION AND DISCUSSION.
Report
Summary
On June 16, 2020, the City Council approved the Housing Phoenix Plan consisting of nine policy initiatives to create or preserve 50,000 homes by 2030. Initiative 7 looks to Expand Efforts to Preserve Existing Housing Stock. This report will focus on the following components of that initiative: Implement Landlord Incentives and Resources, Expand the Rental Rehabilitation Program.
Implement Landlord Incentives and Resources
On Aug. 28, 2020, City Council authorized $500,000 of federal CARES Act funding to launch the Housing Department’s Landlord Incentive Program as an innovative strategy to help combat the shrinking number of units and fewer affordable housing opportunities for Phoenix Section 8 voucher holders. The Landlord Incentive Program incentivizes Phoenix landlords to make their properties available to Housing Choice Voucher (HCV) holders. The program offers a $500 signing bonus to landlords that execute a Section 8 Housing Assistance Payment (HAP) contract. This incentive is paid to landlords who manage regular HCV, Veterans Affairs Supportive Housing (VASH) vouchers and mainstream vouchers, including landlords housing the homeless population. From September 2020 through September 2021, the $500,000 was exhausted and incentives were paid to 405 landlords, of which 127 were first-time Section 8 landlords and 278 landlords were retained with the program.
Given the success of the program, on Sept. 7, 2021, the City Council approved $1 million of the federal American Rescue Plan Act (ARPA) funding to replenish the funds for the Landlord Incentive Program. Utilizing the new ARPA funding, from October 2021 to November 2021, incentives were paid to 79 landlords, of which eight were first-time Section 8 landlords, thus far helping to retain 71 landlords to the program.
Expand the Rental Rehabilitation Program
On March 17, 2021, the City Council approved expanding the Rental Rehabilitation Program primarily to facilitate the preservation of existing single- and multi-family rental properties. The program focuses on addressing structural, safety, and health related standards to ensure the property is habitable and maintains its affordability. In this manner, the Rental Rehabilitation Program supports the Housing Phoenix Plan's vision of utilizing innovative and solution-oriented policies to address housing challenges citywide.
Eligible properties include single- and multi-family rental properties of up to 24 units, occupied by, or set aside for low- and moderate-income tenants. Financial assistance of up to $40,000 per unit, with a maximum project award of $400,000, is available to property owners to complete renovation projects on their deteriorating property.
On Oct. 27, 2021, the City Council approved the first project award under the expanded program. Up to $120,000 was awarded to help improve a triplex located at 2912 E. Roeser Road.
Financial Impact
The Landlord Incentive Program was initially funded by federal CARES Act funding. Due to the success of the program, City Council approved $1 million of federal ARPA funding to replenish the funds.
The Rental Rehabilitation Program is funded by the Community Development Block Grant. There is no impact to the General Fund.
Concurrence/Previous Council Action
On Sept. 7, 2021, the City Council approved $1 million of federal ARPA funding to continue funding the Landlord Incentive Program. On March 17, 2021, the City Council approved expanding the Rental Rehabilitation Program. On Aug. 28, 2020, the City Council approved $500,000 of federal CARES Act funding to initially launch the Landlord Incentive Program.
Department
Responsible Department
This item is submitted by Deputy City Manager Gina Montes and the Housing and Neighborhood Services departments.