Item 6-a - Approval of the Proposed Guidelines for the New Orange County Local Rent Supplement Program (OC-LRSP) and Approval to Enter into an Agreement with Housing Authority

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2 program overview and the proposed guidelines of the new OC-LRSP. In addition, a draft implementation timeline and a copy of HUD's FY 2019 Fair Market Rents (FMRs) are also included as Attachments 2 and 3, respectively. The listed rents serve as the payment standards for the rental subsidies offered under the new program. It should be noted that there has been an increase in the FMRs in FY 2019 as opposed to those originally cited for FY 2018. OC- LRSP is able to handle the increase in rents due to the leveraging of the HOME funds. However, the increased amount of HOME funds for rent subsidies will decrease the availability of funds for security deposits and utility connections. Nevertheless, monies from the Risk Mitigation and Housing Displacement Fund could be allocated to also cover the increase, but these are usually one-time payments. Implementation of the new OC-LRSP is proposed to begin in mid-January 2019 with an announcement of the new program and a briefing for applicable service providers. The application period is anticipated to begin February 1, 2019. However, this date may be delayed for 10-15 days due to the integration of new software in order to handle the required new Waiting List. Approval is being sought to enter into an agreement with the Orange County Housing Authority. This is due in part to HUD's review of the overall agency and best practices in the public housing industry. HUD requires an agreement between the parties if Housing Authority staff will be used to conduct any part of the work. Most other communities (District of Columbia, Hawaii, Massachusetts, Toronto, etc.) in the US and Canada who have or considered having a local or state voucher program utilize a Housing Authority to administer the program. FINANCIAL IMPACT: A financial impact is anticipated based on the need for increased amounts of rental subsidy due to the increase in Fair Market Rents. SOCIAL JUSTICE IMPACT: The following Orange County Social Justice Goals are applicable to this item: • GOAL: FOSTER A COMMUNITY CULTURE THAT REJECTS OPPRESSION AND INEQUITY The fair treatment and meaningful involvement of all people regardless of race or color; religious or philosophical beliefs; sex, gender or sexual orientation; national origin or ethnic background; age; military service; disability; and familial, residential or economic status. • GOAL: ENSURE ECONOMIC SELF-SUFFICIENCY The creation and preservation of infrastructure, policies, programs and funding necessary for residents to provide shelter, food, clothing and medical care for themselves and their dependents. • GOAL: CREATE A SAFE COMMUNITY The reduction of risks from vehicle/traffic accidents, childhood and senior injuries, gang activity, substance abuse and domestic violence. RECOMMENDATION(S): The Manager recommends that the Board adopt and authorize the Chair to sign a resolution: 1) Approving the proposed guidelines for the OC Local Rent Supplement Program; and 2) Authorizing the County Manager to execute the necessary agreement with the Orange County Housing Authority after consultation with the County Attorney.