Title
Amendment to Contract for Management and Operation of City’s Section 8 Housing Choice Voucher Program (Ordinance S-46887)
Description
Request to authorize the City Manager, or his designee, to amend Contract 147189 with Quadel Consulting and Training (Quadel) by adding additional funds in an amount of up to $10.5 million to provide financial assistance for Section 8 tenants impacted by COVID-19 and provide landlord incentives. These extra payments are to be used on behalf of Section 8 participants, to prevent evictions and homelessness. Further request authorization for the City Treasurer to accept and the City Controller to disburse all funds related to this item. The aggregate value of the contract will not exceed $595.5 million. There is no impact to the General Fund.
Report
Summary
To help mitigate financial impacts to Section 8 program participants from COVID-19 activities, such as job losses, income reductions or the ability to find housing, the U.S. Department of Housing and Urban Development (HUD) will provide an additional $10 million in Housing Assistance Payment (HAP) funds, based on need, that will be used to assist in payment of the tenant's portion of the rent as needed. In addition, a set aside of $500,000 from the administrative fees (used for operating expenses) will be used for incentives to landlords for new HAP contracts. This incentive will be $500 for every new HAP contract executed between Sept. 1, 2020 to June 30, 2021 or until the money runs out.
Financial Impact
With the $10.5 million in additional funds, the revised contract value is now $595.5 million. This contract is funded with HUD funds. There is no impact to the General Fund.
Concurrence/Previous Council Action
This contract was the result of Request for Proposal FY18-086-1 and was awarded by City Council on March 21, 2018 via Ordinance S-44361.
Department
Responsible Department
This item is submitted by Deputy City Manager Inger Erickson and the Housing Department.