Consideration and Approval of Funding Request:  Consideration and approval of an adjustment of the Section 8 Housing Choice Voucher Program payment standard to exceed 110% of the Section 8 Fair Market Rents for zero and one bedroom units. 

The U.S. Dept. of Housing and Urban Development (HUD) published the annual Section 8 Fair Market Rents (FMRs), including utilities, effective October 1, 2012. The zero and one bedroom FMRs are not representative of the actual rents in Flagstaff. Implementation of the payment standards equal to the FMRs will have an adverse affect on the number of families that can be assisted, and for those already being assisted, because their portion of the rent will increase and cause an undue financial hardship. Federal regulations allow housing authorities to establish a rental payment standard up to 120 of the FMRs with HUD approval. This allows housing assistance payments to be made that are more comparable to the actual rents in the community. To be representative of the FMRs, the zero bedroom needs to be increased by 115% and the one bedroom by 120% shown as follows:

Zero bedroom FMR $733 X 115% = $843 Payment Standard (including utilities).
One bedroom FMR  $852 X 120% = $1,022 Payment Standard (including utilities). 

Subsidiary Decisions Points: There are no subsidiary decisions that must be made prior to considering this matter.

None

Livability through good neighborhoods, affordable housing and varied recreational activities.

Yes, December 20, 2011

A)  Approve the payment standard adjustment and authorize the submission to HUD for final approval.
B)  Not approve the adjustment, which would limit the number of families that the CFHA will be able to assist.

HUD provides Section 8 Housing Assistance Payments (HAP) funding to the CFHA to house 333 low income families in rental housing throughout Flagstaff. Section 8 Fair Market Rents (rent including utilities) are published annually by HUD and are used to determine the HAP to landlords. The FMRs are supposed to be somewhat comparable to the local market rents. Federal regulations allow housing authorities to exceed the FMRs up to 120% with HUD approval if it is determined that an increase is necessary for a family to find decent housing.

Ordinance 2010-19 requires the City of Flagstaff Housing Authority Board of Commissioners to recommend to the City Council action to approve Section 8 Housing Choice Voucher payment standards if such payment standards are between 110% and 120% of the Fair Market Rent. The CFHA Board of Commissioners voted at a regular meeting on October 15, 2012 to request the City Council to approve payment standards equal to 115% of the zero bedroom FMR and 120% of the one bedroom FMR and authorize submission of the request to the Phoenix HUD office for final approval.

There are no legal implications. There are no opportunities for larger benefits as a result of this action.

By adjusting the payment standard to 115% of the zero and 120% of the one bedroom FMRs more families will be able to be housed in decent, safe and sanitary affordable rental units along with the fact that there will be less of a financial hardship on these same families.

The need for the payment standard adjustment has been discussed with staff from the Phoenix HUD office and at the regular meeting on October 15, 2012, of the CFHA Board. Commissioners voted to request an adjustment of the payment standard to 115% of the zero bedroom and 120% of the one bedroom Section 8 FMR.

A. Approve the payment standard adjustments and authorize the submission to HUD for final approval.
B. Not approve the payment standard adjustments which would limit the number of families that the CFHA will be able to assist.

Approved 12/4/2012  EAB