2004-07-01 Joint CC HABOC MinutesMINUTES OF THE SPECIAL JOINT CITY COUNCIL AND
HOUSING AUTHORITY BOARD OF COMMISSIONERS MEETING
THURSDAY - - - JULY 1, 2004 - - - 7:30 P.M.
Mayor /Chair Johnson convened the Special Joint Meeting at 7:43 p.m.
Vice Mayor /Commissioner Daysog led the Pledge of Allegiance.
Roll Call - Present: Councilmembers /Commissioners Daysog,
Gilmore, Kerr, Matarrese, Commissioner
Torrey and Mayor /Chair Johnson - 6.
Absent: None.
enda Item
(04 -320) Recommendation to allocate HOME Funds for Short -Term
Rental Assistance Program and authorize the City Manager /Executive
Director to negotiate and execute related agreements.
Mayor /Chair Johnson requested the Housing Authority Executive
Director to provide a brief explanation of the Section 8 Program;
stated the public is being misdirected; energy could be spent more
effectively; that she wants to provide an opportunity to educate
the public.
The Housing Authority Executive Director stated that the Section 8
Program is a Housing and Urban Development (HUD) funded federal
government program initiated in 1974; Program is for cities and
communities throughout the country; the Section 8 Program is
approximately 500 ($30 billion) of the HUD budget; Program provides
low income families with housing subsidies; families rent a unit on
the open market from a private landlord; a housing authority enters
into a contract with the landlord to pay the difference between the
landlord's established contract rent and 300 of the tenant's
income; in Alameda, the housing subsidy is approximately $1000 per
month, per family; there are approximately 1,625 families on the
Section 8 Program; in January 2004 HUD changed funding of the
Program; prior to January, funding was on a per -unit basis,
regardless of the cost; HUD and Congress are now trying to put a
cap on the cost; HUD established that costs would be frozen for the
average cost from May, June and July of 2003; an adjustment factor
was applied; the City was notified in early May that HUD's June
housing subsidy payments would be cut by more than 500; the Housing
Authority Board of Commissioners advised spending down reserves in
order to make the June 1 payment; the Housing Authority no longer
has any reserves; in May, the Housing Authority was advised of
available funding for July and subsequent months of the fiscal
year; there was an approximate $250,000 shortfall for July;
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recommendation was made to terminate some families from the Section
8 Program.
Mayor /Chair Johnson inquired why the Housing Authority was short
250 vouchers.
The Housing Authority Executive Director responded that HUD's
funding formula provided approximately $1.5 million in funding per
month; over $1.7 million per month is needed; staff calculated that
250 families would need to be terminated; 238 families were
actually terminated.
Mayor /Chair Johnson inquired whether monthly funding would provide
for approximately 1400 vouchers, to which the Housing Authority
Executive Director responded in the affirmative.
The Housing Authority Executive Director stated that termination
notices were issued on June 4; staff has been successful in
reducing approximately 100 rents through a reasonable rent test;
budgeting process provided extra money; approximately 50 families
have been absorbed into other housing authority programs; landlords
have voluntarily reduced rents; termination notices have been
recinded for 105 families; about 120 families may need to be
terminated from the Program.
Councilmember /Commissioner Matarrese inquired whether the original
238 families have been reduced to 120, to which the Housing
Authority Director responded in the affirmative.
Vice Mayor /Commissioner Daysog stated that the Housing Authority
and Council need time to review other strategies, such as rent
increases, to allow the 120 families to remain in Alameda.
Councilmember /Commissioner Kerr stated that Section 8 subsidies
come from the federal government; the federal government cut the
funding; the City did not cut anything; the Housing Authority is a
pass- through organization for the federal funding; encouraged
people to go to federal representatives who have the power to do
something about the situation; that she was disgusted that HUD
reinitiated cash flow to several cities other than Alameda.
Mayor /Chair Johnson stated that the City is still working on the
issue; concurred with Councilmember Kerr; stated representatives
are sympathetic to the cause; constituents should make phone calls
and send letters; Council has expressed concern to the
representatives.
Vice Mayor /Commissioner Daysog inquired whether the City has a
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calculation for rent increase, to which the Housing Authority
Executive Director responded in the negative; the payment standard
can be anywhere between 90% to 1100 of the fair market rent;
payment standard was just lowered to 900 of the fair market rent,
allowing payment of a smaller subsidy to the landlord; the tenant
is still required to pay only 300 of their income for rent; tenant
could voluntarily pay more out of pocket; rent increase would be
different for each tenant based upon income; City's hands are tied
because of federal law; an act of Congress is needed to change
formula.
Vice Mayor /Commissioner Daysog inquired whether the $250,000 per
month discrepancy results in a difference of $155 per month, per
unit, to which the Housing Authority Executive Director responded
the difference is approximately $132 per month, per unit; he spoke
to a HUD representative who indicated calculations may not be
available for a couple of weeks; the Housing Authority calculates
additional funding to be approximately $90,000; through landlord
rent reductions, the gap could be closed for the fiscal year.
Mayor /Chair Johnson inquired whether federal representatives'
telephone numbers and addresses are publicly available; to which
the Housing Authority Executive Director responded that information
is available at the Housing Authority office and on the web site.
Mayor /Chair Johnson opened the public portion of the meeting.
Speakers: Mai Lan Thi Do, Alameda; Hoa Duong, Alameda; B. Brooks,
Campaign for Renters Rights; Lucinda Rosmon, Campaign for Renters
Rights; Nguyet Ie, Alameda; Jeremy Prickett, Campaign for Renters
Rights; Annie Kane, Alameda; Hong; Richard Melyn, Campaign for
Renters Rights; Raquel Kuronen, Law Center for Families; Meka
Acrey, Alameda; Ruben Tilos, Alameda; John Reimann.
Mayor /Chair Johnson closed the public portion of the meeting.
Councilmember /Commissioner Kerr moved approval of the staff
recommendation.
Councilmember /Commissioner Matarrese seconded the motion.
Under discussion, Vice Mayor /Commissioner Daysog stated that focus
needs to be on buying time; that he is not convinced that one month
of HOME funds adequately exhausts all potential solutions; more
than one month is needed to help families find adequate housing;
$130,000 is not enough; that he will support recommendation but the
City needs to address a three -month timeframe; there might be other
solutions such as utility credits; there are some limited funds
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that might buy more time to find a good solution.
Councilmember /Commissioner Matarrese concurred with Vice
Mayor /Commission Daysog; stated there is a tremendous impact when
the Program moves from a voucher system to a block grant system;
planning for that eventuality may lead to a solution; block grant
systems reduce the amount of subsidies; City will continue to work
until there is a solution; inquired whether approval of the
recommendation bought time for the remaining 138 families, to which
the Housing Authority Executive Director responded that acceptance
would buy time for the remaining 120 families for the month of
July.
Mayor /Chair Johnson inquired whether rent reasonableness has been
applied on 100 units, to which the Housing Authority Executive
Director responded it has been applied to over 100 units; staff
needs to continue working for the remaining units.
Mayor /Chair Johnson stated it is important to go through the
procedure as soon as possible.
Vice Mayor /Commissioner Daysog stated that the City owes low income
Section 8 tenants more time; that the Housing Authority knew about
the over leasing problem months ago; the problem worsened in May
when the over leasing was compounded with the budget change; could
have prepared families earlier; exhausting all solutions takes
time.
The Housing Authority Executive Director stated that the over
leasing issue was brought to the Board of Commissioners in
February; the City will try to get funds back; a fee cannot be
charged to tenants; tenants paying extra is a good concept; the
Authority is working with the Red Cross to set up a fund for
displaced Section 8 tenants; landlords and tenants could make tax
deductible contributions to the fund through the Red Cross.
Commissioner Torrey thanked the landlords and the tenants who
relinquished rights to the Section 8 Program; concurred with Vice
Mayor /Commissioner Daysog regarding the need for more time.
Vice Mayor /Commissioner Daysog requested that the motion include
that options be provided by the third week of July.
Mayor /Chair Johnson stated options could be provided at the next
meeting.
The Housing Authority Executive Director stated that he would
attend the July 6 and July 20 Council meetings.
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On the call for the question, the motion carried by unanimous voice
vote - 6.
There being no further business, Mayor /Chair Johnson adjourned the
Special Joint Meeting at 9:00 p.m.
Respectfully submitted,
Lara Weisiger
City Clerk
The agenda for this meeting was posted in accordance with the Brown
Act.
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