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SR-HA-2 (2) ~ -' H A-.J. NO" . >' RMD:NW:SW:JT:srchange Santa Monica, California Housing Authority Meeting: November 17, 1992 TO: Housing Authority FROM: Housing Authority Staff SUBJECT: RECOMMENDATION TO APPROVE CHANGE TO SECTION 8 LOCAL PREFERENCE SYSTEM GIVING A PREFERENCE TO APPLICANTS GRADUATING FROM TRANSITIONAL HOUSING INTRODUCTION This report recommends that the Housing Authority approve a change to the Section 8 preference rating system in order to offer additional preference to applicants who are coming out of a transitional housing program. BACKGROUND The Santa Monica Housing Authority administers 817 certificates and vouchers for rental assistance to low income families. Applicants who qualify for the program will pay 30% of their income towards the rent and the Housing Authority will pay the remainder, thus ensuring affordability. Approximately 8,000 applicants are currently on the Authority's waiting list. SECTION 8 PREFERENCE RATING SYSTEM Since the demand for Section 8 certificates and vouchers far exceeds the supply, housing authorities must use a preference system in order to determine the highest priority needs. In 1 IT A-.2.. NQV i ~~ .... ~- I ;,J- ~ accordance with Federal requirements, the Santa Monica Housing Authority grants a preference to applicants who are either homeless, paying over 50% of their income towards the rent, or living in substandard housing. within these categories, santa Monica residents and veterans are given priority (also known as a local preference). The section 8 program is not emergency housing assistance. The normal time frame between submission of an application and a scheduled interview is two to three years. As a result of the lengthy waiting period, it is sometimes difficult to contact a homeless applicant whose name has risen to the top of the waiting list. Local homeless agencies are often frustrated by the time delay and have voiced their concerns regarding the difficulty in assisting their clients with permanent housing. The Housing Authority is propos ing to revise its Administrative Plan to award a local preference to applicants with a federal preference who have been active participants in a local homeless transition program for a minimum of six months. Twenty vouchers will be set aside in the first year for qualifying applicants. The goal is to fast-track applicants directly from transitional housing to permanent housing through agencies such as the Ocean Park Community Center, step-Up on Second, the CLARE Foundation, and LIEU-CAP. Agencies who have clients receiving the proposed local preference will continue to provide follow-up supportive services, 2 --- - -- . . as needed, once the applicants are placed in permanent housing. The program will be evaluated in one year. The number of future set-asides will be dependent on new section 8 allocations from the Department of Housing and Urban Development. BUDGETARY/FINANCIAL IMPACT There will be no financial impact as any increase in the use of the vouchers has already been incorporated into the 1992/93 City and HUD budgets. RECOMMENDATION Staff recommends that the Housing Authority approve the change in the Section 8 preference to create a local preference for homeless applicants who have been participating in a local homeless transition program for a minimum of six months. Prepared by: Jeff Mathieu, Director Nancy West, Housing Program Manager steven Wagner, Housing Coordinator Resource Management Department 3 -