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#6 Review and Action on Section 8 Rental Assis NEIGHBORHOOD SERVICES MEMORANDUM September 9, 2010 TO: Community Development Authority FROM: Jennifer Petruzzello, Neighborhood Services Director SUBJECT: Agenda Item #6: Review and Action on 2011 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 2011 Section 8 Rental Assistance Budget for your review. After approval, the Section 8 budget will be 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, however sufficient funding is not available to assist 543 units. It is our goal to provide assistance to a minimum of 525 households. This program is staffed by two Section 8 Housing Specialists. Revenues – Funding in the amount of $2,677,000 is anticipated to be provided by HUD for direct rent assistance to clients. In addition, administrative fee payments of $305,000 from HUD are anticipated. No City of Janesville property taxes are collected to support this program. Expenditures – Expenditures are broken down into two categories: Administration ($303,555) and Program Services ($2,813,000). Administrative services includes: personal services ($248,966), contractual services ($49,439), supplies and materials ($3,500) and capital outlay ($1,650). Program services includes: Rent Assistance ($2,810,000) and Fair Housing ($3,000). This proposed budget demonstrates that the Section 8 program is no longer anticipated to have a funding shortfall for 2010, and in fact, an estimated $155,000 will be available at year end, and nearly $135,000 is planned to fund rent assistance in 2011. Recommendation: Staff recommends that the CDA approve the 2011 Section 8 Rental Assistance Budget. J:\Development\Housing, Building & Neighborhood Services\Administration - HBNS\CDA Agenda Items\2010 1 Agendas\September 15, 2010\#6 Review and Action on Section 8 Rental Assistance Budget.doc