Title
Request to Amend Contract to Allow for Additional Pass-Through American Rescue Plan Act Funds (Ordinance S-48801)
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 $4 million in additional pass-through funding from the City of Phoenix-allocated American Rescue Plan Act (ARPA) funds for the Housing Department's Landlord Incentive Program. 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, the Landlord Incentive Program was originally authorized on Aug. 26, 2020, as an innovative strategy 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 payment for executing a Section 8 Housing Assistance Payment (HAP) contract.
The initial funding allocation of $500,000 of federal CARES Act funds was fully expended in one year at $500 per HAP contract and paid a total of 1,000 incentives to 405 landlords, of which 127 were first-time HCV landlords. Due to the success of the program, on Sept. 7, 2021, the City Council allocated $1 million from the first tranche of the City-allocated ARPA funding to continue the incentive program, and on Feb. 16, 2022, City Council approved an increase to the incentive payment amount from $500 to $2,000 per HAP contract. Of the current $1 million ARPA funding, from October 2021 through April 2022, 445 incentives were paid to 218 landlords, of which 45 were first-time Section 8 landlords. The remaining funds of the $1 million ARPA funding are projected to be fully disbursed by August 2022. To ensure continuation of the Landlord Incentive Program past its current funding allocation, on June 7, 2022, City Council approved an additional $4 million from the second tranche of the City-allocated ARPA funding.
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 additional 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, $4 million of the second 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 Feb. 16, 2022, City Council approved additional contract authority and an increase in the Landlord Incentive Program payment amount, per Ordinance S-48358.
- On June 7, 2022, City Council approved $4 million of City-allocated ARPA funding to continue the Landlord Incentive Program, at the City Council Policy Session.
Department
Responsible Department
This item is submitted by Deputy City Manager Gina Montes and the Housing Department.