HACA-Presentation — original pdf

Backup

Lisa Garcia Vice President of Assisted Housing Housing Authority of the City of Austin Austin Demographics Austin is the least affordable city in Texas • • In Austin a minimum wage worker would have to work 200 hours per week to make rent. 91% of households that earn under $15,000 a year spend at least half of their incomes on rent. *Source: HousingWorks Austin 2 Housing Authority of the City of Austin •Established in 1937 •Designated by HUD as a high performing agency for over 18 consecutive years •1,839 PBRA and public housing units •6,084 Housing Choice Vouchers •About 23,000 people served daily 3 Housing Choice Voucher Program • Created in the 1970s, the “Section 8” Housing Choice Voucher Program has become the dominant form of federal housing assistance. • The program is federally funded serving more than 5 million people in 2.2 million low- income families. • Seventy-five percent of new households admitted each year must be “extremely low income,” with incomes not exceeding 30 percent of the local median or the poverty line. 4 Housing Choice Voucher Program • Families and individuals issued vouchers locate their own housing, including single-family homes, townhouses and apartments. • If an owner agrees to rent under the program and the unit passes a housing quality standards inspection, a housing subsidy is paid directly to the landlord by the housing authority on behalf of the family. • The family pays between 30 to 40 percent of their adjusted income towards rent. 5 Assisted Housing Calendar Year 2019 13,002 Individuals served 3.5 Average family size 6,084 Allocated Vouchers 5,406 Average served spending 100% of available HUD Voucher $ $55 M Rental assistance payments HUD allocated vouchers: 5,256 489 85 36 11 59 148 Low-income families Homeless Veterans Family unification Non-elderly disabled Families displaced by Hurricane Ike Non-elderly persons with disabilities Homeless non-elderly persons with disabilities 6 7 Voluntary Use of Small Area Fair Market Rents • HACA is in a metropolitan area where the adoption of Small Area Fair Market Rents (SAFMRs) is voluntarily. • The adoption of SAFMRS can be beneficial for expanding housing options to “opportunity neighborhoods” with jobs, public transportation, and good schools. • HACA is analyzing the pros and cons of implementing SAFMRs for some zip codes in high opportunity areas. • HACA has not adopted SAFMRs. HACA’s 2020 Payment Standards are set at 100% of published FMRs. # Bedrooms Eff 1 2 3 4 5 • Payment Standards $988 $1134 $1356 $1763 $2128 $2447 8 Rapid increase in rents = less families served • The adoption of SAFMRs could result in a reduction of the number of families served. • Since 2015, the 2-bedroom fair market rent increased by 29 percent and the average per unit cost to provide a subsidy to a housing choice voucher family increased by 22 percent. • The chart below reflects Austin metro-area Fair Market Rents and HACA’s average per unit cost since 2015. 2020 projected 2019 2018 2017 2016 2015 $888 851 825 804 765 726 $1356 $1315 $1251 $1195 $1126 $1050 Average Per unit cost 2 brm FMR 9 Rapid increase in rents = less families served • In 2019, the Housing Authority of the City of Austin had 6,084 allocated vouchers, however, the number of families that could be served with available HUD funds was 5,406. • The 2020 projections, considering the rising rental rates, would result in 100 less served each month or 5,306 families. 10 Critical need for affordable housing • HACA last opened the Housing Choice Voucher wait list in September 2018 and received 15,307 applications in 8 days • 2,000 applicants were placed on the waiting list by random lottery • Currently,1,899 families are waiting for the opportunity to receive a housing choice voucher. • In 2020, the projections is to issue 240 vouchers. Therefore, it could take another 3 – 5 years before ever person on the current wait list has an opportunity to receive a voucher. 11 HACA is committed to expanding affordable housing opportunities • The Housing Authority of the City of Austin is committed to providing housing opportunities throughout the city and expanding options in high opportunity areas. • HACA’s subsidiary, Austin Affordable Housing Corp, currently has 29 market rate apartments communities with 18 located in high opportunity areas. All the properties accept Housing Choice Vouchers. 12 13 HACA’s committed to expanding affordable housing opportunities • Austin Affordable Housing Corporation (AAHC) will have over 7,412 affordable units by first quarter 2021. • AAHC has a goal to expand its portfolio to 10,000 units, with an emphasis on higher opportunity areas, by 2023. • The Assisted Housing division will analyze and consider implementing SAFMRs in zip codes identified as high opportunity neighborhoods. 14 Austin Affordable Housing Corporation AAHC Properties Total Number of Affordable, Non-Subsidized Units: 7,412 15 Thank you! 16