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Home My WebLink AboutIR 7333 INFORMAL REPORT TO CI) _ COUNCIL MEMBERS No. 7333 �1PT(1, ®rarx0""'. To the Mayor and Members of the City Council 11-15-88 Subject: RENTAL SUBSIDY DENONSTRATION PROGRAM INTRODUCTION On October 11 , 1988 the City Council passed CP 133 - An Affordable Housing Policy. The directive provided to staff was as follows ". . . develop a new housing program which will provide assistance and at the same time provide families with the opportunity to move closer to self-sufficiency. The new program would be patterned after the Federal Section 8 Certificate and Voucher program, but could include local requirements which would address Fort Worth's needs. A social service support system could also be a part of this type of program. The program could also target units which are being well maintained, but may be in financial danger because of the vacancy rate." Outlined below is a program design for implementing a Project Based Rental Subsidy-Case Management Program for lower income families. This is a 2 Year Demonstration Program. PURPOSE OF DEMONSTRATION To have a self-sufficiency lifestyle it is important to balance the effort and finances spent on such necessities as housing, child care, employment, transportation and education. For lower income families a significant portion of their limited income (more than 30%) is spent on housing which in many instances is substandard. If the cost of housing was subsidized, families could devote more resources to such tasks as finding better employment and furthering their education. Through this rent subsidy program families will be assured that affordable housing and support services are available for a definite period of time. A PROJECT BASED RENTAL SUBSIDY Through this demonstration program, subsidized housing will be provided at one or more multi-family project sites rather than a number of scattered sites and the subsidy will remain with the unit rather than the family. This is being proposed so that the families participating in the program can form an on-site mutual support system and also to facilitate providing case management. If the families are housed in the same project, resources such as transportation and child care can be centralized and/or pooled by the families. TARGETED FAMILIES Families targeted for assistance through this program are those on the Fort Worth Housing Authority's Section 8 Waiting List. The Fort Worth Housing Authority has a waiting list of approximately 1 ,400 families. (See Attachment A). Each year the number of Section 8 certificates and vouchers are decreasing. Also, in 1990 some 743 Section 8 certificates will expire. Unless Congress renews these expired certificates the families presently_.L i certificates will be faced with the limited opportunities for affdFgPb1� dard housing. Selecting families from the FWHA Waiting List wi,11 e ' t the backlog of families needing subsidized housing. CITY SCCRfTARY FT. WORTH, TEX. ISSUED BY THE CITY (MANAGER FORT WORTH, TEXAS -- INFORMAL REPORT TO Ch . COUNCIL MEMBERS No. 333 ;o�corrr�°o To the Mayor and Members of the City Council 11-15-88 u s +TEX�y. Subject: RENTAL SUBSIDY DEMDNSTRATION PROGRAM NUMBER OF UNITS AND BEDROOM TYPES 100 multi-family units are being targeted for subsidy; hence 100 families may be served through this program. If a selected family decides to move from the unit another family could move in and benefit from the program. Two and three bedroom units are being proposed because 80% of the families on the Houisng Authority's Waiting List are seeking such units. Most of the families will be female single heads of households with two or three children. SELECTION OF FAMILIES Specific criteria will be set to determine the families which are suitable for participation in the program. It is proposed that the tasks of screening, interviewing and selecting the families beerformed by the staff of the City's Neighborhood Resources Development Program (NRDP). Referrals will then be made to the selected multi-family project. CASE MANAGEMENT It is proposed that the case management also be provided through the City's existing programs with other appropriate agencies providing services as needed. The case management would focus on assistance such as the following: 1) employment/skills training 2) remedial education and tutoring 3) GED classes 4) vocational aptitude testing 5) child care resources and parenting guidance 6) job maintenance skills Case management would be performed on an individual and group basis. City staff would work on-site at the project location. SUBSIDY AMOUNT The subsidy would be project based. Each family would be required to pay $100.00 or more as their portion of the total rent amount. (See Attachment A). The remaining portion of the rent would be the subsidy amount paid by the City to the project owner. In Attachment B are the calculations for the payment of subsidies over a 24 month period for 50 two-bedroom d 50 three voom units. These calcualtions are based on reasonable rents for st nerdWt( A#i1y housing in the City of Fort Worth. B( T11 Ta ADMINISTRATIVE/FINANCIAL MANAGEMENT/PROPERTY INSPECTI in, In order to implement this program, a private non-profit organization must be used to perform the following tasks: 1) execute contract(s) with the property(s) owners for program participation; 2) maintain a program accounting system for the subsidy funds; 3) make monthly subsidy payments to the property owner(s); 4) perform property inspections to determine that the units are meeting city code. ISSUED BY THE CITY MANAGER FORT WORTH, TEXAS -- INFORMAL REPORT TO CIT COUNCIL MEMBERS No. 7333 Dage -' topr.o To the Mayor and Members of the City Council 11-15-88 v �s Subject: RENTAL SUBSIDY DEMONSTRATION PROGRAM PROGRAM FUNDING It is proposed that $622,800 in Community Development Block Grant Program funds be used for the payment of the subsidies for a two year period. If the City Council concurs with the outline of the Rental Subsidy Demonstration Program, staff will place on the City Council 's agenda a Mayor and Council Communication recommending the implementation of the demonstration program. Douglas Harman City Manager OFFICIAL RECO n,- CITY SEC,?FTra1:1 FT. WORr:: ISSUED BY THE CITY MANAGER FORT WORTH, TEXAS -- ATTACHMENT A r � PROFTLE OF FAM"LIES OP7 FWHA WAITING LIST -80€ seeking two and three bedroom units -Majority are female heads of households AMrUN7 FAMILIES MAY CONTRIBUTE TO PAYMU OF RMT - — BASED ON 30% OF INCaME FAMILIES "M1 T CY)I`1Tr_'.IBT=T ANNUA.I, IN:}.XE 51 0 0 400 e 1 - $ 50 $ 40 - $ 2,000 159 "r 5i - $100 $ 2,040 - $ 4,000 189 $101 - $15 0 $ 4,040 - $ 6,000 176 $1;1 - $200 $ 6,040 - $ 8,000 126 f 0? - $250 c 8,040 - $10,000 64 $251 - $300 $10,040 - $12,000 49 $301 - $400 $12,040 - $16,000 6 $401 $16,040 C'FFICIAL R�'CC;�J CITY S�CC "I'� Y FT. r'uji[H rix ATTACHMENT B ' CALCULATIONS OF 24 HOM PROJECT EASED ' RENTAL SUBSIDY n D C D E e H I HO HS '2 BR SUBSIDIZED HDIMLY SUBDIDY '3 BF SUBSIDIZED HOMLY TOTAL !!"� SUBSIDY PER,% UNITS (BIC) SUBSIDY PER ER UNITS SUBSIDY SJBSII": UNIT UNIT (E'F1 (D+,; 1 1135.00 50 $11,750.00 $284.00 50 $14,200.00 $25,950 2 $235.On. 501 $11,750.00 $284.00 50 $141206.00 $25.950 s $235.00 50 ;11,750.00 3284.00 50 $14.200.00 #25,950. 4 $235.00 5" $11,750.00 $284.00 50 $141100.03 #25,950. 5 $235.00 50 $11,750.00 ;284.00 50 $14,200.00 ;25,956. 6 $235.00 �G $11,750.00 $284.00 50 S14,200.00 $25.950. $1,;15 $70,500.00 i1.704.00 $s51i06.00 $155,101.. 7 $11.5.00 50 $11,750.00 $284.00 50 $14,100.00 $15,956. 8 $235.00 50 $11,750.00 $284.00 50 $14,200.00 $25,950. 9 $235.00 50 $11,75C.00 $184.00 50 $14,200.00 $15,95G. 10 $235.00 50 $11,750.00 $284.00 50 $14,200.00 $25,i:10- 11 $235.00 50 $11,750.00 $284.00 50 $14,200.00 $25,956. $235.00 50 ;$1,750.00 $284.00 50 $14,200.00 $25,950. $ .4l $70,590.00 $1,704.00 $85,200.00 ;155,700. i3 $135.00 50 $11,750.00 $284.00 50 ;14,100.00 $25,953. 14 $235.00 50 $11,750.00 $284.00 50 ;14,200.00 $25,950. 15 $235.00 59 $11,750.00 $284.00 50 $14,200.00 $25,950. 16 $235.00 50 $11,750.00 $284.00 50 ;14,200.00 ;25,956. 17 ;135.03 50 $11,750.00 $284.00 50 $14,200.00 $25,95.. is $235.00 50 $11.750.06 $284.00 50 (14,200.00 :15.950. $i.+- '1:-Ocl0 1,. 4. 0- $85,230.00 $155,70;. 19 1235.00 5t $11,750.00 #284.00 50 $14,200.00 $25,95C. "D35.0) 17 :9 si1,750.00 $264.00 50 $14,200.00 .1 $235.00 50 #11.150.00 $284.00 50 $14,200.00 $?5,951.. 12 $135.00 50 $11,750.00 $184.00 50 #14,200.00 Ir15,950. _'•s #135.00 50 S11,75C�.OG $264.00 50 $14,100.09 1:5.95 is _$235.00 53 111,750.00 fid4.0G 53 :14.200.30 125.9:;. $11419.Gt r,T,nJO.00 ;1,704.00 ;85,100.00 $i55,7uiC. TOTALS SM2,003.00 $34018,50.00 It,6Z2.aV. OFFICIAL RECC:;R OW CIT' SECRETARY FT. WORTH, TEX.