Consideration and Adoption of Resolution No. 2019-16:  A resolution amending Section 5.2 of the Section 8 Administrative Plan to adopt a local preference for selection from the waiting list.

Resolution 2019-16, if approved, would create a local preference for Section 8 Vouchers. The City of Flagstaff Housing Authority (CFHA) administers 333 vouchers under Housing Choice Voucher Program, also known as Section 8, and maintains an annual lease-up rate of over 98%. Annually, the participant turnover rate is approximately 15%, which means about 50 new households can be admitted yearly from the Section 8 waiting list. Approximately 56% of applicants on the current Section 8 waiting list have addresses outside of the CFHA jurisdiction. Federal regulations governing the program allow the establishment of local preferences.

There are no cost savings or changes in expenditures associated with this item.

This item impacts the Section 8 Housing Choice Voucher Administrative Plan by changing the method of selection from the waiting list to provide preference to households living or working in the CFHA service area.

A Local Preference is a preference for admission of households who reside, are employed or have been hired in a specified geographic area. The Administrative Plan defines the City of Flagstaff Housing Authority’s (CFHA) jurisdiction as the corporate boundaries of the City of Flagstaff, and surrounding areas included in the following zip codes 86001, 86002, 86003, 86004 & 86005.

Support Development and Increase the Inventory of Public and Private Affordable Housing for Renters and Homeowners Throughout the Community

• While this policy by itself doesn't increase the inventory of housing, if approved, it will prioritize housing vouchers for households living or working in the CFHA service area.

No, there has not been a previous Council decision on this item. However, it was considered by the Housing Authority Board and was approved unanimously.

• Approve Resolution 2019-16 resulting in a local preference for households living or working in CFHA's service area.
• Do not approve Resolution 2019-16 resulting in current policy staying in place.

Federal regulation allows the establishment of waiting list selection preferences based on local housing needs and priorities. The selection preference must be described in the Section 8 Housing Choice Voucher Administrative Plan and included in the statement of policies that govern eligibility, selection, and admission to the program.  Such policies must specify that use of residency preference will not have the purpose or effect of delaying or otherwise denying admission to the program based on the race, color, ethnic origin, gender, religion, disability, or the age of any member of an applicant family.

CFHA is authorized to administer 333 Housing Choice Vouchers and maintains an annual lease-up rate of over 98%. Annually, the participant turnover rate is approximately 15%, equating to about 50 new households being admitted yearly from the Section 8 waiting list. In recent years the program has experienced an increase of applicants and newly admitted Section 8 participants from outside of CFHA’s jurisdiction. Many of these newly admitted households choose to exercise portability, taking the voucher to another jurisdiction after the Federally-required initial one-year local lease term. This results in decreasing the number of households assisted within our jurisdiction.

Approximately 56% of applicants on the current Section 8 waiting list have addresses outside of the CFHA jurisdiction. It is anticipated that the upcoming transition to an online application system will likely result in more applications from outside the jurisdiction, including out-of-state. Without a jurisdictional preference, the increase in applicants from outside the jurisdiction could limit local households’ opportunity to participate in CFHA’s Section 8 program. The local preference ensures local households are served first.

The Section 8 waiting list has been closed (meaning applications are not being accepted) since October 2017.  It is anticipated the waiting list will be open again in the coming months. Additionally, CFHA is preparing to implement a web-based application system for both Public Housing and Section 8, making it easier to apply for programs.

The establishment of a local preference would move applicants currently on the waiting list and living or working within CFHA's service area above those who live elsewhere and all new applications will be placed on the waiting list based on this criteria.

The preference will have no impact on the VASH program, as the participants come through a referral from the Veteran’s Administration, not a waiting list.

An applicant will need to meet one of the following criteria to be eligible for the local preference:

• Primary residential address in CHFA's service area
• Employment in CHFA's service area
• Relocating for employment in CHFA's service area (must have with written employment offer)
• Self-employment in CHFA's service area (must have income earned in Flagstaff, after allowable expenses, equal to at least 20 hours per week at the minimum wage)

There are no cost savings or changes in expenditures associated with this item.

Staff anticipates that the number of non-local applicants will vastly increase when the web-based application system is launched later this year and the Section 8 waiting list is reopened. Without a local preference, the anticipated increase in applicants from outside the local area could limit the opportunity of local households participate in the Section 8 program. The local preference ensures that applicants living or working in the area are served first.
 
Additionally, after the Federally-required initial one-year local lease term, many non-local Section 8 participants choose to exercise their right to take their voucher to another jurisdiction, this is called "portability". CFHA does not get a new voucher to replace this portability voucher unless the receiving agency "absorbs" the voucher, an entirely voluntary action, and one CFHA has no control over. This results in a decrease in the number of households assisted within Flagstaff. The local preference could help to reduce the local impact of portability.

The Housing Authority Board considered and approved the suggested changes during the course of a regular meeting.  Additionally, this proposed change was included in a public notice published in the Arizona Daily Sun and offering the opportunity for public comment.  No comments were received.