CITY OF COMMERCEAGENDA REPORTCITY OF COMMERCEAGENDA REPORT
CITY OF COMMERCE
AGENDA REPORT
CITY OF COMMERCE
AGENDA REPORT
Item No. Item No.
Item No.
Item No.
TO: Honorable City Council
FROM: City Manager
SUBJECT: Consideration of a Resolution Establishing New Guidelines and Authorizing an Increase in Funding for the Monthly Senior Rent Subsidy Program and Related Assistance Programs Meeting Date: October 25, 2022
RECOMMENDATION:
That the City Council consider establishing new guidelines for the Senior Rent Subsidy Program and related assistance programs and direct City Council staff to update program policies and procedures, while also authorizing the funding increase that the new program would require.
BACKGROUND:
Established in the mid-1980s, the Senior Rent Subsidy Program was funded using Redevelopment Housing Set-Aside funds, which provided for up to 75 participants annually that were processed on a first-come, first-served basis. However, according to past staff reports, up until then, there was never a need to establish a waiting list for this program.
On June 5, 2012, the Successor Agency confirmed that, under AB 26, the State would not allow continued funding for the Senior Rent Subsidy Program. Following an audit of the 38 participants at the time, City staff confirmed that an abrupt termination of the Program would result in financial hardship for them. Concerned about their financial hardship, the City Council approved a transition program called the City of Commerce Temporary Senior Citizen Rent Subsidy Program (City Temporary Program) that would be funded with General Fund monies until June 5, 2013. The City Temporary Program included only those participants that had been part of the Senior Rent Subsidy Program at the time that redevelopment was dissolved.
On April 3, 2018, Council directed staff to re-initiate a Senior Rent Subsidy Program funded through the Commercial Cannabis Program community benefits funds and allowed for an increase in the subsidy amount from $200 to $250. City Council also later authorized the allocation of $5,000 for additional funding for emergency cases on a one-time basis.
On June 19, 2018, Council approved increasing the Senior Rent Subsidy Program to $300 per month for each participant due to an increased spike in the cost of living. During the pandemic in 2021, Council moved to increase the participation level to 35 to accommodate seniors on the waitlist that had now materialized. During this time, Council approved three temporary assistance programs to provide monetary assistance to individuals and families who had been financially impacted by the pandemic. Council authorized an Emergency Rental Assistance Grant Program, an Emergency Utility and a Prescription Medication Assistance Grant Program, and an Emergency Food Assistance Program for Commerce residents who meet income eligibility guidelines.
To date, the City continues to annually fund the Senior Rent Subsidy Program for thirty-five (35), participants, using community benefits monies, and the general oversight of the Program is handled by the City’s Social Services Division. Currently, there are four (4) seniors on the waitlist. Staff continues to actively analyze other potential support for seniors including social service programs to subsidize the rising costs due to inflation.
ANALYSIS:
According to the Census Bureau, in the City of Commerce, the average retired worker benefit is about $1,353 per month or $16,242 per year. The average SSI benefit is about $769 per month or $9,229 per year. Currently, there are 17.5% of residents 65 years of age or older are living below the poverty level in Commerce. In 2022, Social Security and SSI benefit increased by 5.9% percent to adjust for cost-of-living due to inflation.
It is recommended that the City Council increase the enrollment to 40 participants to accommodate seniors who are pending Staff approval and increase the monthly subsidy according to their annual income and monthly rent. There is currently a waiting list for the Senior Rent Subsidy Program and staff will utilize this list to fill the additional spots if approved. The Senior Rent Subsidy adjustment will increase by 33.3% for Seniors who meet the highest level of eligibility based on the current HCD limits (see Chart B).
The Senior Rent Subsidy guidelines and eligibility requirements would be set as follows:
Chart A.
Eligibility:
Maintain a minimum of a three (3) year residency within the City of Commerce.
Must be at least sixty (60) years of age starting on the day the individual applies.
According to the annual Housing and Development income limits report, household income for an individual cannot exceed 50% of AMI income limits.
Applicants must demonstrate proof of residency for at least three (3) years in the City of Commerce.
Households cannot receive assistance from Section 8 or any other State or Federal housing assistance programs.
Every member of your household must be sixty (60) years of age or older and have lived in the City of Commerce for at least three (3) years.
Applicants that are 75 years of age or older will be given priority.
Only one application per household, households with more than one senior may apply jointly. *Items that are bolded are new eligibility guidelines
Income Limits:
An annual update shall be made to coincide with the US Department of Housing and Development income limits (See Chart B).
Chart B.
Housing and Community Development 2021 Income Limits in Los Angeles County 1 Person
2 Person
3 Person
4 Person
Acutely Low
(10% AMI)
$8400
$9600
$10800
$12000
Extremely Low (30% AMI)
$24850
$28400
$31950
$35450
Very Low
(50% AMI)
$41500
$47300
$53200
$59100
* Adjustments are made based on changes to income limits the US Department of Housing and Development released on April 1, 2021. (HCD) Landlord Participation:
Landlords must sign a Waiver and Release of Liability Form every year, along with the applicant before subsidy program enrollment.
Agree to maintain rents at or below the Section 8 rental limits for Los Angeles County (See Chart B).
Agree to a yearly inspection of the unit to insure it is in a safe, sanitary, and livable condition.
Dwelling Unit Type:
Applicants must occupy rental units with all bedrooms occupied by qualified individuals over the age of sixty (60).
Ex. One senior living in a 3-bedroom apartment does not qualify under the program. Two seniors and a caregiver living in a 3-bedroom apartment do qualify under the program.
Monthly Subsidy:
The maximum subsidy for a qualified household will be based on their reported annual income (See Chart C). Each participant will be required to submit proof of annual income, whether it is their most recent filed tax return, SSI, and/or Retirement Benefits, and provide the Program Coordinator with annual income updates.
The program will be on a tiered basis and will serve Seniors over the age of sixty (60) living at or below Very low-income limits. Payments will be made directly to the landlord by the City. Applicants are expected to pay the remainder of their rent.
As it stands, only one Senior resident may apply for the Subsidy program, regardless of how many Seniors are living within the household. Staff recommends that the subsidy rate recognize households where two or more Seniors reside and increase the subsidy by 33%-66% based on their average annual income. Each senior applying must show proof of their annual income and show proof that their bedroom count matches the number of Seniors that are applying.
A waitlist will be maintained if more than 40 applicants should wish to apply. The Senior Citizen Emergency Financial Hardship Assistance Program will continue to remain with an annual allocated budget of $5,000 for emergency/one-time assistance.
Chart C.
City of Commerce Senior Rent Subsidy Program
1 Senior Person Household
2 Senior Person Household
3 Senior People Household
Acutely Low
(10% AMI)
$400
$500
$600
Extremely Low
(30% AMI)
$350
$450
$550
Very Low
(50% AMI)
$300
$400
$500
Monthly Subsidy for the Average Fair Market Rental Unit:
In Commerce, the average monthly rent for a senior citizen can range from $400 if living in affordable housing to $1538 if residing under senior housing according to the average fair market rent in Los Angeles (See Chart D).
It is recommended that City Council consider increasing the Senior Subsidy to $400 for seniors residing within housing complexes that fall under the Average Fair Market Rent and base the increase on seniors who report at or below 50% AMI. This adjustment would be a flat rate to ensure that seniors who receive maximum retirement and SSI benefits can reduce their rent-to-income ratio to 60%.
Chart D.
Average Fair Market Rent in Los Angeles County
1 Bedroom
2 Bedroom
3 Bedroom
4 Bedroom
$1538
$1854
$2274
$3578
*Fair Market Rent is determined each FY by the HUD in 2022 Senior Medical and Utility Emergency Assistance Program:
Similar to the Emergency Utility and Prescription Medication Assistance Program that launched on January 12, 2021, the program will provide a one-time grant for medical and utility assistance to seniors based on eligibility guidelines found in Chart A. The program will provide up to forty (40) eligible seniors with up to $200 to be utilized for their medical necessities or utility bills. The program will cover medical necessities, such as health care services, pharmacy services and products, medical supplies, or ADA home modifications. The program provides reimbursement for utilities such as water, gas, electricity, trash, and internet services.
Seniors will be asked to pay out of pocket for the approved utility bills and medical necessities and submit a request for reimbursement with proof of payment. Reimbursements will be recognized on the launch day of the Senior Medical and Utility Reimbursement Program.
Funding will be derived from the City’s Community Benefits fund generated by the Commercial Cannabis Program. To receive assistance, each eligible senior must present documentation ALTERNATIVES:
Approve the updated guidelines and eligibility requirements for the City of Commerce Senior Rent Subsidy Program for 40 participants and direct City staff to update all necessary program policies and procedures.
Provide staff with further direction
FISCAL IMPACT:
If the City Council decides to increase the participation level to 40, an additional $44,000 would need to be appropriated to augment the program for the remainder of this fiscal year. Staff is recommending that the aforementioned funding come from the Commercial Cannabis Program operating generated funds. The amount is premised on a $400 per month subsidy (maximum allowed under the program per 1 Person Household) for forty (40) eligible seniors.
In addition, if the City Council decides to authorize a Senior Medical and Utility Reimbursement program, the recommended action would require a one-time appropriation from Commercial Cannabis Program operating generated funds of $8,000 for the remainder of the 2022/2023 fiscal year. This amount is premised on issuing a reimbursement of up to $200 for forty (40) eligible seniors.
RELATIONSHIP TO STRATEGIC GOALS:
This matter applies to the following Strategic Focus Area and Guiding Principle: Community Quality of Life – Guiding Principle 4: Support and evaluate community services, programs, and events that promote health and quality lifestyles for our residents. Enhance public safety and social services through innovative programs that meet the needs of the residential and business communities.
Recommended by: Edgar P. Cisneros, City Manager
Prepared by: Gisselle S. Delgado, Management Analyst
Budget Impact reviewed by: Vilko Domic, Director of Finance Approved as to form: Noel Tapia, City Attorney
Respectfully submitted: Edgar P. Cisneros, City Manager