#5b Neighborhood Service Directors Report - Se
NEIGHBORHOOD SERVICES MEMORANDUM
March 12, 2010
TO: Community Development Authority
FROM: Jennifer Petruzzello, Neighborhood Services Director
SUBJECT: Agenda Item 5b: Neighborhood Services Director’s Report
2010 Funding for Section 8 Rent Assistance Program
At this time, the Janesville Community Development Authority is anticipating ending the
2010 calendar year with a negative balance of $132,404.
During calendar years 2009 and 2010, the City of Janesville has estimated housing assistance
payment expenses will exceed budget authority by $387,506. We began the 2009 calendar year
with net restricted assets (like a fund balance to be used only for housing payments) in the
amount of $250,987 and ended the year with $70,138. Our net restricted asset balance will be
completely depleted with our April 2010 housing assistance payment expenses.
Attached you will find a copy of the Janesville CDA’s request to HUD for additional funding
dated February 26, 2010. This request has detailed information into the recent history of our
housing assistance payments and my projections for the balance of 2010.
This shortfall is predominantly the result of increased leasing at the same time that our per unit
assistance costs were rising. I am optimistic that the Janesville CDA will receive some additional
funding, however, it is unclear whether that will be sufficient to avoid significant program
changes (worst case = terminating clients). Nation-wide requests for additional funding were due
March 9, 2010. HUD has not indicated when a funding decision will be made.
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Unless a positive funding decision is announced prior to April 9, I am anticipating bringing
several proposed changes to the Section 8 Administrative Plan to the CDA at your April CDA
meeting. A public hearing will also be scheduled at that time.
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