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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4 released and proposals solicited from eligible landlords. In the future, OC-LRSP may be amended to include sponsor-based rental assistance as a methodology for incentivizing new affordable housing multi-family development. B. PURPOSE The purpose of the OC Local Rent Supplement Program (OC-LRSP) is to provide rental assistance in the form of a monthly rental subsidy to Homeless/At Risk of Homelessness persons and families, Senior/Disabled persons, and Victims of Domestic Violence who are at or below the fifty (50) percent of the Area Median Income limit. 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: 0 5 one bedroom units @ $902 per month for 12 months =$54,120 0 5 two bedroom units @$1,055 per month for 12 months = $63,300 0 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.. • Note that determining the appropriate voucher size will not solely be based on bedroom size but household size and must meet the Local Rent Supplement Program's occupancy standards: 0 1 Bedroom -- 1-2 persons 0 2 Bedrooms— 2-4 persons 'The 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 FY201 8-2019 HOME allocation was approved by the BOCC on June 19, 2018 and by HUD on October 3, 2018.