Housing Authority
Report
City Council Meeting: April 11, 2023
Agenda Item: 12.A
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To: Housing Authority
From: Danielle Noble, Acting Director, Community Services Department, Housing and Human Services
Subject: Adoption of Santa Monica Housing Authority Draft Fiscal Year 2023-24 Annual and Administrative Plans
Recommended Action
Staff recommends that following the close of the public hearing the Housing Authority Board:
1. Adopt the FY 2023-24 Santa Monica Housing Authority Annual Plan, provided as Attachment A;
2. Adopt the FY 2023-24 Santa Monica Housing Authority Administrative Plan, provided as Attachment B;
3. Adopt the New Family Self-Sufficiency Action Plan (Formerly Chapter 18 of the Administrative Plan) as Attachment C; and
4. Authorize the Submission of the FY 2023-24 Annual and Administrative Plans to the United States Department of Housing and Urban Development.
5. Adopt a finding of no possibility of significant effect pursuant to Section 15061(b)(3) (Common Sense Exemption) of the California Environmental Quality Act (CEQA) Guidelines.
Summary
The Santa Monica Housing Authority (SMHA) administers approximately 1,675 rental assistance vouchers to extremely low-, very low-, and low-income Santa Monica households amongst five federal housing programs:
• Housing Choice Voucher (HCV);
• Continuum of Care (CoC);
• HOME Investment Partnerships Program (HOME);
• Veterans Affairs Supportive Housing (VASH); and
• Emergency Housing Voucher (EHV).
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Each year, SMHA is required to submit an Annual Plan and progress report to the U.S.
Department of Housing and Urban Development (HUD) to inform the agency, voucher participants, and members of the public of updates to the Authority’s mission, goals, and objectives. The SMHA’s mission mirrors that of HUD’s, which is to promote adequate and affordable housing, economic opportunity, and a suitable living environment free from discrimination. The SMHA operates in accordance with the rules and regulations detailed in its Administrative Plan, which is a combination of federally established regulations and local policies and procedures.
This year, the SMHA is proposing two discretionary policy changes to the Administrative Plan (Attachments B and F) in response to input from Resident Advisory Board members, voucher participants, and the Legal Aid Foundation of Los Angeles. The proposed changes would enhance opportunities for utilizing vouchers in shared housing and clarify responsibilities and notification requirements regarding annual rent increases. In accordance with federal regulations and HUD guidance, the SMHA has prepared an updated Family Self-Sufficiency (FSS) Action Plan (Attachment C). The proposed FSS Action Plan is a stand-alone policy document based on HUD’s template FSS Action Plan (Attachment D). Therefore, the corresponding FSS content from the former Chapter 18 of the Administrative Plan has been transferred to the proposed FSS Action Plan, which incorporates updated policies to comply with the new federal regulations.
Background
Council, along with two tenant representatives, act as the Housing Authority Board for the SMHA. On October 13, 2020, the Housing Authority Board approved the SMHA’s current 5-Year Plan (Attachment E). On April 12, 2022, the Housing Authority Board approved the SMHA’s current Administrative Plan, which details the rules and regulations that govern SMHA’s operations. HUD issues mandatory updates to the Administrative Plan annually, and Housing Authorities like the SMHA can propose discretionary changes to the Administrative Plan.
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Each year, the SMHA is required to submit an Annual Plan, updated progress on the 5- Year Plan, and any updates to the Administrative Plan to HUD. Each SMHA HUDfunded voucher program has its own set of requirements for performance reporting, and the Annual Plan represents progress updates regarding the HCV program. Specifically, the SMHA prepares and submits a Streamlined Annual Plan due to its “voucher only” designation. The designation is reserved for Housing Authorities that administer more than 550 HCVs, do not own or manage public housing, and was not designated as troubled in its most recent Section Eight Management Assessment Program (SEMAP) performance assessment. The deadline to submit the Fiscal Year (FY) 2023-24 Annual Plan is April 17, 2023.
Discussion
Recent changes brought on by the passage of the Economic Growth, Regulatory Relief, and Consumer Protection Act, which was codified via the federal ruling process, amended HUD's regulations to the FSS Program and required significant changes to Chapter 18 of the Administrative Plan. The FSS Program was designed to work in tandem with the SMHA’s rental assistance programs (such as HCV) to enable participating low-income families to increase earned income, achieve economic stability, and reduce or eliminate their need for welfare assistance and rental subsidies.
To accommodate these changes, HUD encouraged the use of and provided Housing Authorities with a template for an FSS Action Plan to exist as a stand-alone policy document regarding program administration and tenant rights. For this reason, the SMHA is proposing the transfer of Chapter 18 of the Administrative Plan for FY 2023-24 into HUD’s template FSS Action Plan. The proposed FSS Action Plan encompasses all the federally required changes of FSS program administration, tenant’s rights under the program, and outlines the program in a user-friendly way.
The proposed FY 2023-24 Annual Plan remains unchanged from the existing FY 2022- 23 Annual Plan and includes the following progress updates:
• Three more City-funded affordable housing developments totaling 179 apartments (1834 14th St., 1413 Michigan Ave., and 1819 Pico Blvd.) are 4 of 9
anticipated for completion during 2023 which will also provide new opportunities for voucher holders.
• 67 affordable apartments within otherwise market-rate buildings created pursuant to zoning policies (known as inclusionary housing) were completed during 2021 and 2022, and an additional 20 affordable inclusionary apartments are scheduled for completion in 2023.
• During 2022, City staff was able to increase the HOME voucher program to assist 19 new households and achieved a high point of 52 households assisted; the HOME voucher program prioritizes residents who are at risk of losing their housing due to rent burden and other factors.
• Beginning in October 2022 and continuing through 2023, approximately 191 voucher households are/will be receiving City-funded rental assistance, through the Rent Control Adjustment Relief program, to reduce the severe rent burden resulting from annual rent increases.
• The SMHA achieved a historic voucher utilization highpoint during 2022 of 1,366 Housing Choice Vouchers (also known as Section 8).
• Santa Monica’s eviction prevention efforts include an ordinance that requires landlords to report all eviction attempts and a Right to Counsel program that helps fund a local legal services office’s effort that every low-income family has an attorney in their eviction case. The City has also passed tenant protection laws and funded enforcement programs that protect key classes of persons such as tenants living with disabilities.
Two proposed discretionary changes to the Administrative Plan, in response to input from Resident Advisory Board members and other stakeholders, are discussed below.
Community Input
The proposed streamlined and formulaic Annual Plan requires a 45-day public comment period and subsequent approval by the Housing Authority Board, even if there are no substantive changes since the previously approved Annual Plan. The SMHA welcomed input regarding the Annual Plan, Administrative Plan, and FSS Action Plan during the 5 of 9
public review period. All documents were available for review and public comment through March 20, 2023 and are provided as attachments to this report.
On February 3, 2023, staff posted the start of the public review period on the Housing Office website. Notices were published in the Santa Monica Daily Press on February 4, and February 25, 2023. On February 6, 2023, staff directly notified, via direct mail and email correspondence, members of the Resident Advisory Board (RAB; all participants in the HCV program are RAB members) and all other voucher participants, of the opportunity to provide input on the SMHA Plans. Staff also invited all voucher participants to the Housing Commission meeting held on March 2, 2023, at 6:00 PM, to provide comments and input on the SMHA Plans. Input was received from 12 voucher participants and the Legal Aid Foundation of Los Angeles responding to the SMHA’s written outreach.
Additionally, staff invited all voucher program participants to a workshop on March 13, 2023, during the afternoon, which served as another opportunity and an alternative to the evening Housing Commission meeting, to provide input during the public review period. The workshop offered information to voucher participants about the discretionary policies and the federally-mandated regulations contained in the Administrative Plan. A total of 26 people attended the workshop, among which five provided input.
Housing Commission Input
The Housing Commission considered the draft Annual/Administrative Plans at its March 2, 2023 meeting. Commissioners were not able to reach a consensus regarding advisory input to the Housing Authority Board. Two motions were made - one to recommend approval of the Plans, and another to recommend that the Housing Authority Board not approve the Plans until the RAB/CAB has an opportunity to meet, but neither motion passed. Only two members of the public attended the meeting, neither provided input, although two voucher participants submitted comments.
RAB/Voucher Participant/General Public Input
Overall, participation in the public comment period resulted in staff receiving feedback via email, mail, in-person, over the phone, through the Housing Commission meeting, 6 of 9
and at the Administrative Plan Workshop. Staff received several comments regarding the RAB’s implementation, representation, and structure. Although comments regarding the RAB do not relate to changes to the Administrative Plan, the comments are directly related to the Annual Plan process. Staff has developed recommendations regarding the RAB at the direction of the Housing Authority Board that address these comments which will be presented at the April 11, 2023, Council meeting under a separate agenda item.
Staff is proposing two discretionary policy changes to the Administrative Plan based on input from RAB members and the Legal Aid Foundation of Los Angeles that would enhance opportunities for utilizing vouchers in shared housing and clarify responsibilities and notification requirements regarding annual rent increases. The changes can be found in the draft Administrative Plan and an excerpt of the proposed changes can be found in Attachment F.
The first change is proposed in response to a comment from a RAB member about expanding voucher opportunities to shared housing. Shared housing would allow voucher holders to cohabitate and rent individual rooms in a household with nonvoucher participants. Staff understands the difficulties of securing housing in the private market and agrees that shared housing offers greater choice to voucher holders. To accommodate the shared housing element, the draft Administrative Plan would be amended to allow for that option. The draft policy can be found in Chapter 15, Page 15- 1, of the draft Administrative Plan.
The second change is proposed in response to comments from RAB members, voucher participants, and the Legal Aid Foundation of Los Angeles. The comments addressed the Santa Monica Housing Authority’s current rent increase policy, practices, and procedures. Staff agrees that the current annual rent increase policy should be revised to require landlords to affirmatively request rent increases at least 60-days in advance and notify tenants regarding rent increases, in addition to the SMHA’s existing practice of notification to tenants of rent increases. The draft policy can be found in Chapter 8,
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Staff also received input regarding creating two new programs and restarting a completed program, additional staffing, payment standards, customer service and delivery. Staff has summarized and responded to all comments in Attachment G.
Staff received input about creating a homeownership program, applying for the Move to Work (MTW) program, and restarting the FSS program. MTW is a program for Housing Authorities (not voucher participants) that provides opportunities to design and test innovative, locally designed strategies to help residents find employment and become self-sufficient. The FSS program’s goal is for voucher participants to increase earned income, achieve economic stability, and reduce or eliminate their need for welfare assistance and rental subsidies. Housing Authorities must achieve a mandated number of graduates in the FSS program. The SMHA administered the FSS program for more than a decade, met and exceeded the federal mandate, and closed the program to new participants a few years ago due to insufficient resources from HUD and limited staff capacity within the SMHA and supportive service agencies to effectively administer the program.
The SMHA does not currently have resources to create and administer a homeownership program, MTW program, or FSS program and is focused on completing its core responsibilities for Santa Monica residents according to HUD’s requirements.
However, staff can explore the viability of pursuing these programs as the capacity of the Santa Monica Housing Authority and Housing Division expand.
Staff received feedback about the need for new specialized staff positions of Landlord Liaison/Housing Navigator and Veteran Liaison, as well as the payment standard. The SMHA currently does not have the financial resources to hire the requested staff and such resources in whole or in part are provided through City-funded social service agencies and the Veterans Administration. The potential of increasing the payment standard amount is currently under review per previous direction from Council and will be determined following the completion of a financial feasibility analysis. 8 of 9
Staff also received a variety of input regarding customer service and delivery. Staff acknowledges the feedback involving improvements in transparency, accessibility, and communication strategies and will work to enhance customer service and delivery in those areas.
A full list of comments received from RAB members, other voucher program participants, and the public about the draft SMHA Plans are along with staff responses.
The actual written comments are attached verbatim in Attachment H.
Environmental Review
The draft SMHA Plans are categorically exempt from CEQA pursuant to Section 15061(b)(3) of the CEQA Guidelines. The plans is covered by the common sense exemption which states that CEQA does not apply, “where it can be seen with certainty that there is no possibility that the activity in question may have a significant effect on the environment.” The proposed strategies allocate vouchers for housing and do not cause the construction of any new projects that could have a significant environmental effect. Therefore, it can be seen with certainty that the SMHA plans would not result in adverse physical impacts on the environment, and as such, is categorically exempt from CEQA.
Financial Impacts and Budget Actions
There is no immediate financial impact or budget action necessary as a result of the recommended action.
Prepared By: Patrick Komesu, Sr. Administrative Analyst Approved Forwarded to Council
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Attachments:
A. Draft Annual Plan FY 2023-24
B. Draft Administrative Plan FY2023-24
C. Draft FSS Action Plan
D. HUD's Template FSS Action Plan
E. 5-YearPlan FY 2020
F. Propose Changes to Administrative Plan
G. Summary of Comments and Responses
H. Actual Written Comments
I. Written Comments