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#7 Review and Action on Section 8 Rental Assis NEIGHBORHOOD SERVICES MEMORANDUM October 9, 2009 TO: Community Development Authority FROM: Jennifer Petruzzello, Neighborhood Services Director SUBJECT: Agenda Item #7: Review and Action on 2010 Section 8 Rental Assistance Budget Background: The Community Development Authority (CDA) is the approving body for the Section 8 Rent Assistance Program budget. The CDA administers the Section 8 Rent Assistance Program for the U.S. Department of Housing and Urban Development (HUD). Attached please find a copy of the Proposed 2010 Section 8 Rental Assistance Budget for your review. In addition, this proposed budget has been included in the city-wide budget for City Council Consideration. Budget Summary: This budget provides for the continuation of present service levels. HUD has approved the CDA to administer up to 543 units. It is our goal to provide assistance to a minimum of 530 units. This program is staffed by two Section 8 Housing Specialists. Revenues – Funding in the amount of $2,532,000 is provided by HUD for direct rent assistance to clients. In addition, administrative fee payments of $295,000 from HUD offset administrative expenses. No City of Janesville property taxes are collected to support this program. Expenditures – Expenditures are broken down into two categories: Administration ($288,016) and Program Services ($2,535,000). Administrative services includes: personal services ($239,396), contractual services ($45,120), and supplies and materials ($3,500). Program services includes: Rent Assistance ($2,532,000) and Fair Housing ($3,000). The budget reflects a shift of $16,000 from Contractual Services to Personnel Services as a result of using a City building inspector to conduct the initial annual housing quality inspections, rather than a contracted inspector. Recommendation: Staff recommends that the CDA approve the 2010 Section 8 Rental Assistance Budget. J:\Development\Housing, Building & Neighborhood Services\Administration - HBNS\CDA Agenda Items\2009 Agenda 1 Items\October 14, 2009\#7 Review and Action on Section 8 Rental Assistance Budget.doc