The Housing Authority of Billings has applied for $15,000 in HOME funding through the Community Development Division to provide deposit assistance to low income households through their Section 8 rental assistance program. The Housing Authority of Billings received $10,000 in HOME assistance in FY 2008-2009 through the HOME application and allocation process and this fund has been depleted. The Authority assisted 39 households with deposit assistance to secure housing through this Tenant-Based Rental Assistance Program.

Available HOME funding includes $150,000 in the Affordable Housing Development fund. If this item is approved, the City would still have $135,000 in HOME affordable housing funds to assist developers in creating affordable housing between now and June 30, 2010. The Housing Authority of Billings estimates it will be able to utilize all of this funding prior to June 30, 2010, and anticipates requesting funding through the routine allocation process which will be brought before City Council in April 2010.

Deposit assistance is a significant barrier to low income families in securing safe, sanitary housing.  This deposit assistance program will provide assistance up to 75% of the deposit, based on the household's unmet needs.  The families will be accountable for a portion of the deposit and for the assistance they receive.  The program will serve low income families at or below 50% of area median income.

The Community Development Board approved the staff recommendation to provide $15,000 for this Tenant Based Rental Assistance program on December 1, 2009.

The CIty Council must hold a public hearing and then may:

1) Deny the funding request;

2) Approve the funding request allocating $15,000 in HOME funds from Affordable Housing Development to support the tenant-based rental assistance program; or

3) Approve a funding request reallocating an amount less than $15,000.

The recommendation would result in the utilization of existing funds already allocated to the Affordable Housing Development Fund for a Tenant Based Rental Assistance program, to be utilized for deposits only.  If the request to move funding into a TBRA program is approved, the City would still have $135,000 in affordable housing funds to assist developers in creating affordable housing opportunities between now and June 30, 2010, when new funding becomes available.

Staff and the Community Development Board recommend the City Council hold a public hearing and support the recommendation to reallocate $15,000 in HOME Affordable Housing Development fund to the Housing Authority of Billings' Tenant Based Rental Assistance program for deposits.