Mobile Home Tenant Based Rental Assistance Program & Substantial Amendments to the 2020-2024 Consolidated Plan and 2022-2023 Annual Action Plan City Council
November 1, 2022
Background
On September 6, City Council directed staff to form a Mobile Home Tenant Based Rental Assistance Program (MHTBRA) for very low-income senior mobile home owners The MHTBRA will be funded using HOME and CDBG funding.
The City currently operates a TBRA program for individuals and families that are homeless or at-risk of homelessness City staff researched mobile home TBRA programs for best practices (4 programs found nationwide) On July 25, the Mobile Home Advisory Board provided input and recommended the proposed Mobile Home TBRA program
Background – Program Eligibility and Preferences
Eligibility:
Age 62 years and older
HB mobile home owner with space rent
Minimum one-year residency in the mobile home
Household income 50% of Area Median Income or less
Household cannot be receiving any other governmental rental assistance Preferences:
Veteran
Extremely Low-Income (30% of Area Median Income)
Paying 50% of income or more for space rent
Background – HOME MHTBRA
HOME funds can be used to provide temporary rental assistance (up to 24 months) to households at risk of losing their housing HUD Requirements:
Income Eligibility
Rent Reasonableness
Households pay 30% of their gross income toward Fair Market Rent Households must also pay any rent in excess of Fair Market Rent Housing Quality Standards Inspection (corrections prior to payment) Contract for Assistance
HOME funds cannot be used to pay back rent, mortgage, utilities
Background – Continuing Program Eligibility
Requirements for continuing participation in the MHTBRA program include:
The household must remain income eligible
The household must complete the eligibility recertification process The household must continue to reside in the mobile home on a full-time basis The household must pay their space rent, City will reimburse their subsidy amount
MHTBRA Guidelines
In order to implement MHTBRA Program, Guidelines were prepared that address the following:
Eligibility requirements
Local preferences
Selection of applicants, including lottery
Maximum income/rent standards
Length of assistance
Recertification process
Program procedures
Staff recommends eligible OVE residents to be assisted through rent reductions and not MHTBRA subsidy.
Amendment to City’s Homeowner Rehabilitation Loans and Grants Program Amend the Policies and Procedures to allow for MHTBRA grants to address corrections related to the HQS inspections:
$1,200 for MHTBRA grants for minor repairs.
Up to $15,000 in Emergency Grants for extensive repairs, if necessary.
Example of typical anticipated repairs include: installation of smoke and carbon monoxide detectors, GFCI protectors, and earthquake strapping to secure water heaters
Amendment No. Three to 2020-2024 Consolidated Plan
Amendment No. Three consists of the following:
Add senior mobile homeowners as a priority need population in need of assistance.
Adjust the five-year performance goals as it relates to programs that are no longer funded or have been reduced/increased in funding.
Amendment No. One to 2022-2023 Annual Action Plan
Amendment No. One consists of the following:
Set up and fund the MHTBRA Program for seniors with $391,654 in FY 2021-2022 HOME carryover funds.
Decrease the CDBG Unallocated Funds by $143,000 for a new total of $238,117.
Reallocate $65,000 of the CDBG Unallocated Funds to the Loans and Grants Program for a total of $287,000 to assist in HQS inspections/repairs.
Reallocate $78,000 of the CDBG Unallocated Funds to the Housing Services for TBRA for a total of $183,000 for administering the MHTBRA Program.
Next Steps
Should the City Council approve the proposed actions this evening related to the MHTBRA program, the next steps are:
HUD must approve substantial amendments (45 days)
City will issue a Request for Proposals for a program operator Applications will then be accepted for 4 weeks
Initial eligibility list will be established by lottery
Recommendations
Hold a public hearing and approve:
Substantial Amendment to the 2022-2023 Action Plan
Substantial Amendment to the 2020-2024 Consolidated Plan Approve the MHTBRA Program Guidelines
Approve the amendment to the City’s Homeowner Rehabilitation Loans and Grants Program Policies and Procedures Appropriate funding for MHTBRA Program
Authorize temporary rent reductions for eligible seniors at Ocean View Estates
Questions?