Title
Request to Amend Contract to Allow for Pass-Through American Rescue Plan Act Funds and Increase the Landlord Incentive Program Payment Amount (Ordinance S-48358)
Description
Request to authorize the City Manager, or his designee, to amend Contract 147189 with Quadel Consulting and Training (Quadel) to add contract authority of $1 million in pass-through funding from the City of Phoenix-allocated American Rescue Plan Act (ARPA) funds for the Housing Department's Landlord Incentive Program, and authorize increasing the Landlord Incentive Program payment amount from $500 to $2,000 per incentive, not to exceed the previously allocated $1 million ARPA funding. Further request to authorize the City Controller to disburse all funds related to this item. There is no impact to the General Fund.
Report
Summary
Due to the COVID-19 pandemic, on Aug. 26, 2020, City Council authorized utilizing federal CARES Act funding to initially launch the Landlord Incentive Program to help combat the shrinking number of units and fewer affordable housing opportunities for Phoenix Section 8 Housing Choice Voucher (HCV) holders. The program incentivizes Phoenix landlords to make their properties available to HCV holders by offering landlords a one-time $500 payment for executing a Section 8 Housing Assistance Payment (HAP) contract. Due to the program's success, on Sept. 7, 2021, the City Council approved $1 million of the first tranche of the City's allocation of ARPA funding to replenish the funds for the Landlord Incentive Program at $500 per incentive payment.
On Jan. 26, 2022, at the request of the Economic Development and Equity (EDE) Subcommittee, the Housing Department presented disbursement rates for three varying payment amounts should the incentive payment be increased to $1,000, $1,500, and $2,000, to fully expend the $1 million at a higher rate (Attachment A). The EDE Subcommittee discussed the options and the fact that increasing the payment amount would further incentivize landlords to join the program or make additional units available to voucher holders to help sustain/increase the affordable housing stock options in the community.
Quadel is the current administrator of the City's Section 8 Housing Choice Voucher program and manages the Landlord Incentive Program. Authorization to amend the Contract allows for the City-allocated ARPA funding as a pass through to landlords for the incentive program.
Financial Impact
Funding is available through the City’s allocation of ARPA funding, $1 million of the first tranche approved for the Housing Department's Landlord Incentive Program. There is no impact to the General Fund.
Concurrence/Previous Council Action
- On March 21, 2018, City Council approved awarding Quadel Contract 147189-0, per Ordinance S-44361.
- On Aug. 26, 2020, City Council approved $500,000 of federal CARES Act funding to launch the Landlord Incentive Program, per Ordinance S-46887.
- On Sept. 7, 2021, City Council approved $1 million of City-allocated ARPA funding to continue the Landlord Incentive Program, at the City Council Policy Session.
- On Jan. 26, 2022, the Economic Development and Equity Subcommittee discussed and gave direction to increase the Landlord Incentive Program payment amount from $500 to $2,000. The item was posted for information and discussion only. No formal action was taken.
Department
Responsible Department
This item is submitted by Deputy City Manager Gina Montes and the Housing Department.