Title
Affordable Housing and Housing Phoenix Plan Follow-Up
Description
This report provides the Economic Development and Equity Subcommittee additional information on Housing Phoenix Plan efforts and the Housing Choice Voucher Program.
THIS ITEM IS FOR DISCUSSION AND POSSIBLE ACTION.
Report
Summary
This item is a follow-up to the March 22, 2023, Subcommittee meeting in which the Housing and Planning and Development departments provided updates on affordable housing efforts and Housing Phoenix Plan implementation. Staff will provide additional information regarding the Housing Phoenix Plan’s gap analysis, planned zoning ordinance text amendments, affordable housing development coordination, and potential cost saving practices. Further, staff will provide additional detail regarding the Housing Choice Voucher and the Landlord Incentive programs.
Housing Phoenix Plan Gap Analysis
The Housing Phoenix Plan (HPP) included a housing gap analysis, based on data available in 2020 when the Plan was compiled, that indicated a need for an additional 163,067 housing units. This housing gap was determined by comparing the number of non-homeowner households with the number of rental units available in the market. Through the end of 2022, over 26,000 housing units have been created or preserved toward the HPP's goal of 50,000 units by 2030. Additionally, since 2020 over 39,000 housing units have been approved to be built through City Council’s approval of rezoning requests and may be in various stages of the entitlement or development process. During 2023, the Housing Department will complete an updated housing gap analysis to determine the current and projected need for housing in the City, taking both the completed and planned housing unit information into account.
Zoning Ordinance Text Amendments
The Planning and Development Department is working on a series of seven text amendments designed to facilitate more housing options, consistent with Initiative 2 of the HPP. Two text amendments addressing standards for mobile home parks are scheduled to begin the public hearing process this spring and will be presented to City Council in early summer. Text amendments regarding an incentive framework for mobile homes, accessory dwelling units (ADUs) and parking reductions for multifamily developments will follow and are scheduled to be heard by City Council in September. Schedules for two additional text amendments addressing strategic density and incentives for affordable housing will be solidified over the summer, after additional research and stakeholder outreach.
Affordable Housing Development Coordination
Initiative 5 of the HPP includes policies designed to promote building innovations and cost savings practices for affordable housing developments. The Housing and Planning and Development departments regularly meet to coordinate on active affordable housing development projects. Further, the Housing Department has designated Affordable Housing Division staff to serve as affordable housing advocates to help developers navigate the development process while the Planning and Development Department has identified designated plan review teams to ensure understanding of the complex requirements associated with affordable housing developments. Additional resources for affordable housing projects in addition to a framework for reduced plan review and permitting fees are being evaluated.
Housing Choice Voucher and Landlord Incentive Programs
The Housing Department created the Landlord Incentive Program to help increase housing opportunities for Phoenix Section 8 Housing Choice Voucher (HCV) holders, in response to Initiative 7 of the Plan. The one-time incentive payment is separate from the ongoing rental assistance payments paid monthly on behalf of a voucher holder to the landlord and can be used at the landlord’s discretion. Of the approximately 2,000 landlords participating in the overall HCV program, approximately 660 have received an incentive. Funding for the Landlord Incentive Program is currently limited to the City’s allocation of American Rescue Plan Act funds, and funds are projected to be expended by the summer of 2024.
The HCV program is the U.S. Department of Housing and Urban Development's (HUD) major program for assisting very low-income families to afford decent, safe and sanitary housing in the private market. The Housing Department has an overall HCV allocation of 7,355 vouchers, of which, 6,248 vouchers are currently leased. HUD includes Veterans Affairs Supportive Housing (VASH) and Family Unification Program (FUP) vouchers in that allocation. VASH and FUP vouchers are referral-based programs that rely on referrals from the Veterans Affairs Hospital and the Arizona Department of Child Safety, respectively.
HUD allocates and funds some special purpose vouchers, such as the Emergency Housing Voucher (EHV) program, separately from the overall HCV allocation. Although allocated and funded separately, EHVs function as regular vouchers but rely on referrals from the Continuum of Care Coordinated Entry System. The Housing Department has an EHV allocation of 390 vouchers, of which, 353 vouchers are currently leased.
Once issued a voucher, the Housing Department provides voucher holders 180 days to search for housing. HUD requires a minimum of 60 days. Phoenix currently provides the longest general time frame to search for a unit in comparison to other cities in Arizona. The City of Mesa provides 60 days. Maricopa County provides 90 days. The City of Glendale provides up to 120 days. The City of Chandler provide up to 120 days for non-disabled, non-elderly families and up to 180 days for disabled and/or elderly families. The cities of Scottsdale and Tucson provide up to 150 days.
Department
Responsible Department
This item is submitted by Deputy City Managers Gina Montes and Alan Stephenson and the Housing and Planning and Development departments.