Item 2 - Proposed Guidelines for the New Orange County Local Rent Supplement Program (OC-LRSP)

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2 PART II: PROPOSED PROGRAM GUIDELINES Orange County Local Rent Supplement Program (OC-LRSP) ELIGIBLE SUBSIDY COSTS • The total proposed cost of the Local Housing program is $203,6201 and the break-out of units with associated costs are as follows: o 5 one bedroom units @ $902 per month for 12 months =$54,120 o 5 two bedroom units @$1,055 per month for 12 months = $63,300 o 5 three bedroom units @ $1,435 per month for 12 months = $86,100 • HOME Tenant-Based Rental Assistance (TBRA) allocation of $114,6132 will support the needed difference of $103,620 for rental subsidies. • Of the $114,613 identified above, $10,993 will be used to cover security and utility deposit payments; and • If additional funds are needed to cover security and utility deposit payments, OCHA will make a request for Risk Mitigation/Housing Displacement Funds, as well as for applicable assistance from other jurisdictions. However, these funds are often available on a one-time basis and may not be used for ongoing utility assistance as is provided under the federally-funded HCV Program, which provides monthly utility assistance to applicable low and very low income households. RENTAL ASSISTANCE The amount of the monthly assistance that OCHA will pay on behalf of a family, may not exceed the difference between the rent payment standard for the unit size and thirty (30) percent of the family’s monthly adjusted income. SECURITY DEPOSITS A limited number of security deposit grants will be provided to eligible applicants, subject to the availability of funds and at the sole discretion of the OCHA. Participants must document, in writing, their efforts to secure security deposit funding from other sources and demonstrate insufficient personal funds. The maximum amount of funds that may be provided for the security deposit is the equivalent of two months’ contracted rent for the unit. Only the tenant (not the landlord) may apply for security deposit assistance. THE TERM OF THE RENTAL ASSISTANCE The term of the rental assistance contract may not exceed twelve (12) months, but may be renewed, subject to the availability of annual appropriations from Orange County or the program, and at the discretion of the OCHA. FUNDING POLICIES AND PROCEDURES The OCHA will make annual funding requests to Orange County for the program. In turn, the County will request HOME TBRA funds, as well as provide Risk Mitigation/Housing Displacement funds based on the availability of applicable program funds. The Orange County Board of County Commissioners will review and approve all policies, procedures and guidelines, as well as amendments. The Orange County Housing Authority Board of Commissioners, serves as the Board of Directors for the Housing Authority, adopts policies and 1The proposed total program cost increased due to the increase in HUD’s Fair Market Rents (FMRs) for 2019. The FMRs usually increase each year based on market conditions. 2 The proposed FY2018-2019 HOME allocation was approved by the BOCC on June 19, 2018 and by HUD on October 3, 2018. 4