Title
Significant Amendment to the Housing Department's Annual Agency Plan (Ordinance S-43958)
Description
This report requests City Council approval for the adoption of a Significant Amendment to the Housing Department's 2017-2018 Annual Agency Plan by adding the U.S. Department of Housing and Urban Development's Rental Assistance Demonstration (RAD) Award and implementing RAD program requirements.
Report
Summary
On Feb. 3, 2016, City Council authorized the Housing Department to apply for the U.S. Department of Housing and Urban Development's (HUD) RAD Program for 815 units across five multi-family rental properties in the City’s public housing portfolio, to execute all related agreements, and to fully implement the RAD Program, if approved by HUD.
The RAD Program converts public housing units from a public housing operating subsidy to a long-term, sustainable, project-based Section 8 rental assistance contract. This conversion allows Public Housing Authorities, such as the Phoenix Housing Department, to revitalize aging public housing properties, address the backlog of deferred maintenance and capital improvements, and provide for future financial sustainability and continued affordability.
In February 2017, HUD notified the Housing Department that it was selected to participate in the RAD Program for five multi-family properties totaling 815 units. On March 22, 2017, via Ordinance S-43326, City Council approved the adoption of the Housing Department’s 2017-2018 Annual Agency Plan (AAP), which provides a comprehensive guide to the policies, programs, operations, and strategies for meeting local housing needs and goals. Due to the timing of the RAD award, and other HUD requirements, including a 45-day notice period to provide comments and a public hearing, RAD could not be included in the AAP, as it would have delayed the Housing Department's submittal.
In order to fulfill RAD milestones associated with the conversion from public housing to project-based Section 8 rental assistance, HUD regulations and related RAD guidance require a Significant Amendment to the AAP. The Amendment includes information regarding the type of Section 8 rental assistance anticipated to be utilized at each property, and details revised resident rights and participation, waiting list establishment, and grievance procedure requirements. The Amendment also states the Housing Department will apply for the RAD program for some, or all, of its remaining public housing properties, including: Maryvale Parkway Terrace Apartments (108 units), Pine Tower Apartments (156 units), Washington Manor Apartments (112 units), Summit Apartments (50 units), McCarty on Monroe (34 units), and Aeroterra Senior Village (60 units), which City Council approved via Formal Action on May 31, 2017. Additional changes include updates to the following sections: Site Selection and Neighborhood Standards Review; Relocation Plans; and Significant Amendment Definition.
A copy of the Amendment is available at www.phoenix.gov/housing
Financial Impact
There is no impact to the General Fund. The Significant Amendment to the Annual Agency Plan is an administrative change only.
Concurrence/Previous Council Action
On Feb. 3, 2016, City Council authorized the Housing Department to apply for the RAD Program, through Ordinance S-42281. On March 22, 2017, City Council approved the adoption of the Housing Department's 2017-2018 Annual Agency Plan through Ordinance S-43326. This item was heard at the Sustainability, Housing, Efficiency and Neighborhoods Subcommittee on Sept. 19, 2017, and approval was recommended by a vote of 4-0.
Public Outreach
The 13-member Resident Advisory Board (representing the Conventional, Senior, Scattered Sites and Section 8 Housing Choice Voucher programs) met and approved the Significant Amendment on July 6, 2017. As required by federal regulation, the public was given a 45-day notice to provide comments. A public hearing was held on Sept. 6, 2017, to obtain input and comments. All comments and input are addressed in the resulting Significant Amendment.
Locations
1) Foothills Village (200 units): 920 W. Alta Vista Road
2) A.L. Krohn (202 units): 1940 ½ E. Villa St.
3) A.L. Krohn East (38 units): 14th and Monroe streets (multiple addresses)
4) Frank Luke Homes (230 units): 500 N. 20th St.
5) Sidney P Osborn (145 units): 1720 E. Adams St.
Council Districts: 7,8
Department
Responsible Department
This item is submitted by Deputy City Manager Deanna Jonovich and the Housing Department.