HomeMy WebLinkAboutAgenda - 12-18-2018 6-a - Approval of the Proposed Guidelines for the New Orange County Local Rent Supplement Program (OC-LRSP) and Approval to Enter into an Agreement with Housing Authority 1
ORANGE COUNTY
BOARD OF COMMISSIONERS
ACTION AGENDA ITEM ABSTRACT
Meeting Date: December 11, 2018
Agenda
Item No. 6-a
SUBJECT: Approval of the Proposed Guidelines for the New Orange County Local Rent
Supplement Program (OC-LRSP) and Approval to Enter into an Agreement with
the Orange County Housing Authority to Administer the New OC-LRSP Utilizing
the Locally-Appropriated Funds
DEPARTMENT: Housing and Community
Development/Orange County
Housing Authority
ATTACHMENT(S): INFORMATION CONTACT:
(1) Revised Proposed Program Sherrill Hampton, Housing and
Guidelines Community Development Director,
(2) Draft Implementation Timeline (919) 245-2490
(3) HUD's 2019 Fair Market Rents
PURPOSE: To adopt a resolution:
1) Approving the proposed program guidelines for the new Orange County Local Rent
Supplement Program (OC-LRSP); and
2) Authorizing the County Manager to execute the necessary agreement with the Orange
County Housing Authority to administer the new Orange County Local Rent
Supplement Program (OC-LRSP).
BACKGROUND: The Orange County Board of County Commissioners, at its June 19, 2018
regular meeting, approved an initial $100,000 appropriation for a new local voucher program
known as the OC Local Rent Supplement Program. In addition, the HOME Consortium, now
known as the Local Government Affordable Housing Collaborative and consisting of the Towns
of Carrboro, Chapel Hill, and Hillsborough, as well as Orange County, approved a
recommendation to award $139,613 in FY 2018-19 HOME funds to be used for Tenant-Based
Rental Assistance. Of the aforementioned amount, $114,613 will serve as leveraged resources
for the new OC Local Rent Supplement Program. The remaining amount of $25,000 will be
used for the Rapid Re-Housing Program. The federal Department of Housing & Urban
Development (HUD) approved the FY 2018-2019 HOME grant award on October 3, 2018, and
the grant agreement was fully executed on October 10, 2018 by the County Manager.
The new OC Local Rent Supplement Program (OC-LRSP) in many aspects mirrors the
federally-funded Housing Choice Voucher (HCV) Program. However, it is also designed to
allow for flexibility in meeting local identified housing needs. Attachment 1 provides a full
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program overview and the proposed guidelines of the new OC-LRSP. In addition, a draft
implementation timeline and a copy of HUD's FY 2019 Fair Market Rents (FMRs) are also
included as Attachments 2 and 3, respectively. The listed rents serve as the payment standards
for the rental subsidies offered under the new program. It should be noted that there has been
an increase in the FMRs in FY 2019 as opposed to those originally cited for FY 2018. OC-
LRSP is able to handle the increase in rents due to the leveraging of the HOME funds.
However, the increased amount of HOME funds for rent subsidies will decrease the availability
of funds for security deposits and utility connections. Nevertheless, monies from the Risk
Mitigation and Housing Displacement Fund could be allocated to also cover the increase, but
these are usually one-time payments.
Implementation of the new OC-LRSP is proposed to begin in mid-January 2019 with an
announcement of the new program and a briefing for applicable service providers. The
application period is anticipated to begin February 1, 2019. However, this date may be delayed
for 10-15 days due to the integration of new software in order to handle the required new
Waiting List.
Approval is being sought to enter into an agreement with the Orange County Housing Authority.
This is due in part to HUD's review of the overall agency and best practices in the public
housing industry. HUD requires an agreement between the parties if Housing Authority staff will
be used to conduct any part of the work. Most other communities (District of Columbia, Hawaii,
Massachusetts, Toronto, etc.) in the US and Canada who have or considered having a local or
state voucher program utilize a Housing Authority to administer the program.
FINANCIAL IMPACT: A financial impact is anticipated based on the need for increased
amounts of rental subsidy due to the increase in Fair Market Rents.
SOCIAL JUSTICE IMPACT: The following Orange County Social Justice Goals are applicable
to this item:
• GOAL: FOSTER A COMMUNITY CULTURE THAT REJECTS OPPRESSION AND
INEQUITY
The fair treatment and meaningful involvement of all people regardless of race or color;
religious or philosophical beliefs; sex, gender or sexual orientation; national origin or
ethnic background; age; military service; disability; and familial, residential or economic
status.
• GOAL: ENSURE ECONOMIC SELF-SUFFICIENCY
The creation and preservation of infrastructure, policies, programs and funding necessary
for residents to provide shelter, food, clothing and medical care for themselves and their
dependents.
• GOAL: CREATE A SAFE COMMUNITY
The reduction of risks from vehicle/traffic accidents, childhood and senior injuries, gang
activity, substance abuse and domestic violence.
RECOMMENDATION(S): The Manager recommends that the Board adopt and authorize the
Chair to sign a resolution:
1) Approving the proposed guidelines for the OC Local Rent Supplement Program; and
2) Authorizing the County Manager to execute the necessary agreement with the Orange
County Housing Authority after consultation with the County Attorney.
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ORANGE COUNTY
NORTH CAROLINA
Attachment 1
PART I: OVERVIEW OF THE NEW ORANGE COUNTY LOCAL RENT SUPPLEMENT PROGRAM (OC-LRSP)
A. OVERVIEW
The Local Rent Supplement Program is a new rental subsidy program approved by the Orange County Board of County Commissioners on June
19, 2018 with an initial injection of capital in the amount of $100,000. The County's HOME Consortium,the Local Government Affordable
Housing Collaborative, is providing $114, 613 in FY 2018-2019 HOME funds for tenant-based rental assistance as leveraged funds to assist in
the implementation of the OC-LRSP. The County will enter into an agreement with the Orange County Housing Authority (OCHA) to administer
the new program.
The OC-LRSP provides monthly rental subsidies that cover the difference between the rents that low-income families and individuals can afford
to pay and the actual monthly cost of rent for the unit. The new program addresses one of the priority housing needs identified in Orange
County's FY 2015-2019 Consolidated Plan, as well as the recently released Affordable Housing Coalition's 2018 Affordable Housing Summit
Report.
The new program is designed to complement the federally-funded Housing Choice Voucher (HCV) Program, which is administered by OCHA
and will assist families and individuals who earn 50% or less of the Area median Income with priority going to those who are very low income
(30% of AMI or less). The program promotes community-wide planning and strategic use of resources to address the jurisdiction's unmet needs
and to narrow the gap in benefits and services received by cost-burdened families.
For the most part, and unless otherwise specified, OC-LRSP will follow the rules and regulations of the HCV Program. However, some of the
differences between OC-LRSP and HCV Program are that OC-LRSP's rental subsidies are not for housing outside a 10-mile radius of the
County's jurisdictional boundaries. Therefore the subsidies are not "portable" and are only available to Orange County residents. In addition,
the preferences and priorities for the housing assistance are different than those specified in the HCV Program rules and regulations.
Furthermore, the rental assistance may be administered as tenant-based and/or project-based. If project-based is utilized then an RFP will be
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released and proposals solicited from eligible landlords. In the future, OC-LRSP may be amended to include sponsor-based rental assistance
as a methodology for incentivizing new affordable housing multi-family development.
B. PURPOSE
The purpose of the OC Local Rent Supplement Program (OC-LRSP) is to provide rental assistance in the form of a monthly rental subsidy to
Homeless/At Risk of Homelessness persons and families, Senior/Disabled persons, and Victims of Domestic Violence who are at or below the
fifty (50) percent of the Area Median Income limit.
PART II: PROPOSED PROGRAM GUIDELINES
Orange County Local Rent Supplement Program (OC-LRSP)
ELIGIBLE SUBSIDY COSTS • The total proposed cost of the Local Housing program is $203,6201 and
the break-out of units with associated costs are as follows:
0 5 one bedroom units @ $902 per month for 12 months
=$54,120
0 5 two bedroom units @$1,055 per month for 12 months =
$63,300
0 5 three bedroom units @ $1,435 per month for 12 months =
$86,100
• HOME Tenant-Based Rental Assistance (TBRA) allocation of $114,6132
will support the needed difference of $103,620 for rental subsidies.
• Of the $114,613 identified above, $10,993 will be used to cover
security and utility deposit payments; and
• If additional funds are needed to cover security and utility deposit
payments, OCHA will make a request for Risk Mitigation/Housing
Displacement Funds, as well as for applicable assistance from other
jurisdictions. However, these funds are often available on a one-time
basis and may not be used for ongoing utility assistance as is
provided under the federally-funded HCV Program, which provides
monthly utility assistance to applicable low and very low income
households..
• Note that determining the appropriate voucher size will not solely be
based on bedroom size but household size and must meet the Local
Rent Supplement Program's occupancy standards:
0 1 Bedroom -- 1-2 persons
0 2 Bedrooms— 2-4 persons
'The proposed total program cost increased due to the increase in HUD's Fair Market Rents (FMRs) for 2019. The FMRs usually increase each year
based on market conditions.
2 The proposed FY201 8-2019 HOME allocation was approved by the BOCC on June 19, 2018 and by HUD on October 3, 2018.
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o 3 Bedrooms— 3-6 persons
At this time, given financial constraints, the Local Rent Supplement
Program is unable to provide assistance to families needing larger
bedroom sizes.
RENTAL ASSISTANCE The amount of the monthly assistance that OCHA will pay on behalf of a family,
may not exceed the difference between the rent payment standard for the unit
size and thirty (30) percent of the family's monthly adjusted income.
SECURITY DEPOSITS A limited number of security deposit grants will be provided to eligible
applicants, subject to the availability of funds and at the sole discretion of the
OCHA. Participants must document, in writing, their efforts to secure security
deposit funding from other sources and demonstrate insufficient personal funds.
The maximum amount of funds that may be provided for the security deposit is the
equivalent of two months' contracted rent for the unit.
Only the tenant (not the landlord) may apply for security deposit assistance.
THE TERM OF THE RENTAL ASSISTANCE The term of the rental assistance contract may not exceed twelve (1 2) months, but
may be renewed,subject to the availability of annual appropriations from
Orange County or the program, and at the discretion of the OCHA.
FUNDING The OCHA will make annual funding requests to Orange County for the program.
POLICIES AND PROCEDURES In turn,the County will request HOME TBRA funds, as well as provide Risk
Mitigation/Housing Displacement funds based on the availability of applicable
program funds.
The Orange County Board of County Commissioners will review and approve all
policies, procedures and guidelines, as well as amendments, revisions or other
changes. The Orange County Housing Authority Board of Commissioners, serves as
the Board of Directors for the Housing Authority, adopts policies and procedures
annually. The Orange County Board of County Commissioners will enter into an
agreement with OCHA to administer the Local Rent Supplement Program on
behalf of the County. OCHA cannot implement any major policy change without
the review and approval of the Orange County Board of County Commissioners.
The Local Rent Supplement Program adheres to the federally-funded HCV
Program model, unless otherwise noted in these Guidelines. If there is a conflict
between program regulations and the HCV Administrative Plan,the OC Local Rent
Supplement Program regulations have precedence.
In addition to evidence of eligibility required under the HCV Program, applicants
must meet one of the following requirements to qualify for the Local Rent Subsidy
Program:
1. Homeless Individuals
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2. Homeless Families, including those who may have children in child
protective services
3. Person At Risk of Homelessness, including those who may have children in
child protective services
4. Senior/Elderly and Disabled Individuals
5. Victims of Domestic Violence
6. Persons Displaced Due to an Urgent Community Need, i.e. mobile home
park closures
And
1. Be at or below the HUD fifty (50) percent AMI limit for the County.
Note that veterans, at this time, will not be given a preference under the new
Local Rent Supplement Program due to the fact that OCHA has a current VASH
Voucher Program that is solely for chronically homeless veterans. This does not
negate a veteran from applying and claiming a preference under one of the
other categories.
ELIGIBILTY The Orange County Housing Authority requires that households, at time of entry
into the program, be at or below fifty (50) percent of the Area Median Income
(AMI). Additionally,the OCHA must provide at least fifty percent (50%) of its
local vouchers to applicants whose income does not exceed thirty (30) percent of
the AMI. HUD income limits may also be used since they are similar to Housing
Choice Voucher income limits.
APPLYING TO THE WAITING LIST Any individual/family who wishes to receive rental subsidies under the OC Local
Rent Supplement Program must apply for admission to the program. The Local
Rent Supplement Program has a separate Waiting List and assistance is restricted
to persons who are at or below fifty percent (50%) of the AMI. Priority will be
given to Homeless Individuals/Families, Persons At Risk of Homelessness,
Senior/Elderly Disabled Individuals, and Victims of Domestic Violence.
ACESSIBILITY OF THE APPLICATION PROCESS The application will be available on the Orange County Website, as well as at
local libraries,the Department of Social Services (DSS), Community Centers and
various service providers throughout the County. The Application period will run
from February 1, 2019— February 8, 2019. Persons having questions or needing
assistance in completing the application may contact the Orange County Housing
Authority/Department of Housing and Community Development at (919) 245-
2490 or the TDD Number at (919) 644-3045.
OUTREACH AND MARKETING The new program will be announced on the County's website and through
newspaper ads beginning in mid-January 2019. In addition, OCHA will hold a
briefing for applicable area service providers. In addition, OCHA will provide
notification to applicable area agencies that fall within the 10-mile radius of the
County boundaries to facilitate cooperation and relationship-building as it relates
to the provision of services for our clients living in their jurisdictions.
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Full Implementation Timeline:
• January 14, 2019—Announce new OC-LRSP
• January 17, 2019— Hold Briefing for Service Providers
• Application Period Opens—February 1, 2019
• Application Period Closes—February 8, 2019
• Reviewing Applications and Determining Preliminary Eligibility — February
11- March 15, 2019 (Screening period may be extended due to the
number of applications received.)
• Conduct Briefings and Begin Issuance of New Vouchers—March 25 —
April 30, 2019
SCREENING AND ASSESSMENT The OCHA requires that any agency making referrals to screen applicants for
eligibility based on the guidelines outlined in this document and to submit to the
OCHA required documents included in the Local Rent Supplement Program
Application Packet.
Completed documents will be used by the PHA to:
1. Determine applicant's eligibility
2. Select participants
3. Notify applicants of their obligations as an OC-LRSP recipient
Completed application and verifications must be current within the last sixty (60)
days. Referring agencies and case managers must conduct a thorough screening
and assessment of each individual's care needs. The screening will include
assessment of the individual's ability to live independently.
In addition,the individual must not present a danger to himself or others and the
individual must not require a level of care that is not offered by OC Local Rent
Supplement Program.
EVIDENCE OF ELIGIBILITY Homelessness/At Risk Homelessness Certification
The Local Rent Supplement Program applicants,who qualify under the definition
of Homelessness, must provide the following documentation at the time of
application to establish that they meet the required criteria:
1. The Local Rent Supplement Program applicant's written certification that
they have insufficient financial resources and support networks
immediately available to attain housing stability
2. Documentation to verify that the Local Rent Supplement Program
applicant did not have sufficient resources or support networks
immediately available to attain housing stability as evidenced by one of
the following:
AAA
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a. Source documents (e.g., notice of termination from employment,
bank statement, health care bill showing arrears); or
b. Written statement by referring agency staff confirming that they
spoke to a relevant third party to verify homelessness or at risk
homelessness status; or
c. Written statement by referring agency staff of the efforts taken
to obtain verification through source documents and relevant third
parties
d. Verification that the Local Rent Supplement Program applicant
met one of the seven conditions under the definition of
Homelessness as evidenced by one of the following:
i. Source documents that evidence one or more of the
conditions;
1. A Homeless/At Risk Homelessness Certification
Form completed by a service provider.
2. A written statement by a relevant third party or
the written certification by referring agency staff
of the oral verification by the relevant third
party that the applicant meets one or more of
the conditions; or
3. A written statement by the referring agency staff
that the staff person has visited the applicant's
residence and determined that the applicant
meets one or more of the conditions or, if a visit is
not feasible or relevant to the determination, a
written statement by the referring agency staff
describing the efforts taken to obtain the
required evidence.
3. In addition, one or more of the following should be provided:
a. A written documentation of observation by an outreach worker;
b. A written certification by the household seeking assistance that
demonstrates that the individual or head of household is currently
homeless and living in a place not meant for human habitation, in
an emergency shelter, or a safe haven.
Senior/Elderly Disabled Certification
A birth certificate or other official record of birth is the preferred form of age
verification (must be at least 62 years of age or older). An original document that
provides evidence of the receipt of social security retirement benefits is
acceptable.
In order to receive Disabled Disabling Condition preference,the Local Rent
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Supplement Program applicants must present evidence of disabling condition
diagnosis with one or more of the following conditions: substance use disorder,
serious mental illness, developmental disability as defined by the Department of
Housing and Urban Development (HUD).
A disabling condition is defined by HUD as:
1. A physical, mental, or emotional impairment which is expected to be of
long-continued and indefinite duration, substantially impedes an
individual's ability to live independently, and of such a nature that the
disability could be improved by more suitable conditions;
2. A developmental disability as defined in section 102 of the
Developmental Disabilities Assistance and Bill of Rights Act;
3. The disease of acquired immunodeficiency syndrome or any conditions
arising from the etiological agency for acquired immunodeficiency
syndrome; or
4. A diagnosable substance abuse disorder.
Evidence of this criterion must include one of the following:
a. Written verification of the condition from a professional licensed by
the state to diagnose and treat the condition;
b. Written verification from the Social Security Administration;
c. Copies of a disability check (e.g., Social Security Disability Insurance
check or Veterans Disability Compensation);
d. Intake staff (or referral staff) observation that is confirmed by written
verification of the condition from a professional licensed by the state
to diagnose and treat the condition that is confirmed no later than
fourteen (14) days of the application for assistance and accompanied
with one of the types of evidence above; or other documentation
approved by HUD.
Victim of Domestic Violence
The Local Rent Supplement Program applicants, who qualify under the definition
of Victim of Domestic Violence, must provide the following documentation at the
time of application to establish that they meet the required criteria:
1. The individual may satisfy the PHA's request by providing any one of the
following three forms of documentation [24 CFR 5.2007(b)]:
a. A completed and signed HUD-approved certification form (HUD-
50066, Certification of Domestic Violence, Dating Violence,
Sexual Assault, or Stalking),which must include the name of the
perpetrator only if the name of the perpetrator is safe to provide
and is known to the victim;
b. A federal, state,tribal,territorial, or local police report, or court
record, or an administrative record; or
c. Documentation signed by a person who has assisted the victim in
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addressing domestic violence, dating violence, sexual assault, or
stalking, or the effects of such abuse. This person may be an
employee, agent, or volunteer of a victim service provider; an
attorney; a mental health professional; or a medical professional.
The person signing the documentation must attest under penalty
of perjury to the person's belief that the incidents in question are
bona fide incidents of abuse. The victim must also sign the
documentation.
Persons Displaced Due to an Urgent Community Need
The Local Rent Supplement Program applicants claiming a preference under this
category must be referred by Orange County's Displacement Mitigation
Assistance Program (D-MAP) and provide a written certification with their
application. In addition, applicants must provide all other basic required
documentation necessary to determine eligibility under the OC-LRSP criteria.
TENANT SELECTION Selection Criteria
Families will be selected based on the following targeted population selection
criteria and selection preference method. Within the preference category, families
and individuals will be selected based on severity of needs.
The OCHA system of preferences may select families either according to the date
and time of application, or by a random selection process. When selecting
families from the Waiting List OCHA is required to use targeted funding to assist
only those families who meet the specified criteria, and OCHA is not permitted to
skip down the waiting list to a family that it can afford to subsidize when there
are not sufficient funds to subsidize the family at the top of the waiting list.
Targeted Population:
• Homeless Individuals
• Homeless Families, including those families who may have children in child
protective services
• Person At Risk of Homelessness, including families who may have children
in child protective services
• Senior/Elderly and Disabled Individuals
• Victims of Domestic Violence
Families and individuals must meet the requirements and eligibility criteria of one
of the above targeted population groups to qualify for the Local Rent Supplement
Program.
•
•
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Homelessness/At Risk Homelessness
For Homelessness and At Risk of Homelessness applicants, severity of needs is
identified and verified through the use of Homelessness/At Risk Homelessness
Certification Form and submitted source documents.
Senior/Disabled applicants and Victims of Domestic Violence
For Senior/Disabled applicants and Victims of Domestic Violence applicants,
severity of needs is identified and verified through the use of the submitted source
documents.
Persons Displaced Due to an Urgent Community Need
For applicants under this category, severity of needs is identified and verified by
the referral and written certification from the D-MAP.
CRIMINAL BACKGROUND All participants will undergo criminal background and sex offender checks based
on the Housing Choice Voucher (HCV) regulations.
DENIAL OF ASSISTANCE An applicant will be denied participation in the Local Rent Supplement Program if
the applicant does not meet Local Rent Supplement Program specific admission
criteria.
Participation will also be denied if the Local Rent Supplement Program applicant
does not provide:
1. Information that the OCHA determines is necessary in the administration
of the program
2. Complete and true information and it is discovered that the applicant
does not meet eligibility requirements
BRIEFINGS AND VOUCHER ISSUANCE The applicant, together with all adult members of the household and the assigned
case manager (if applicable) must be present for the initial briefing and voucher
issuance.
Upon the completion of the initial briefing, a Local Voucher/Rent Subsidy voucher
will be issued to the applicant. Local Rent Supplement Program participants have
up to 120 days to search for a unit within the Orange County geographic area
and submit a Request for Tenancy Approval (RTA) to the OCHA upon finding a
suitable unit.
If an extension is needed, one may be requested. The request will be evaluated
and a decision made based upon the same policy outlined in the voucher issuance
section of Chapter 5 of the OCHA Housing Choice Voucher Administrative Plan
(Proof of Effort must be submitted to the OCHA).
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TENANT RENT PORTION Program participants are required to pay a portion of their rent if they are
receiving assistance under OC Local Rent Supplement Program. Participants' rent
must be equal to the highest of:
• 30 percent of family's monthly adjusted income;
• 10 percent of family's monthly gross income; or
• A minimum rent of $50 contribution.
The PHA has authority to suspend and exempt families from minimum rent when a
financial hardship exists.
HOUSING QUALITY STANDARDS (HQS) HQS unit inspections are required both at initial occupancy and annually
thereafter for all Local Rent Supplement subsidized units. Newly leased units must
pass the HQS inspection before the beginning date of the assisted lease and the
Local Voucher Rent Supplement Housing Assistance Payment (HAP) Contract.
RENT REASONABLNESS Rent reasonable review must be conducted before Local Rent Supplement
Program participant rents a unit. The OCHA will pay rents up to the rent
reasonable amount, not to exceed the exceptional payment standard utilized for
the PHA's HCV Program.
MOVING WITH CONTINUED ASSISTANCE AND Under the OC Local Rent Supplement Program,the OCHA issues an eligible
PORTABILITY family a voucher and the family selects a unit of its choice within the Orange
County geographic area, as specified earlier in these guidelines. If the family
moves out of the unit,the contract with the owner ends and the family can move
with continued assistance to another unit within the Orange County geographic
area.
Local Rent Supplement Program participants are not eligible for portability and
must remain within the Orange County geographic area.
ANNUAL/INTERIM REEXAMINATIONS The OCHA is required to process annual re-examinations. In cases where a family
experiences a change in household composition and/or income between annual
re-examination,the PHA will process an interim re-examination.
The family is required to report all changes in household composition and/or
income to the OCHA within 10 calendar days of the occurrence.
RENTAL INCREASES Landlords may submit a request for a rent increase every other year and
approval is based on availability of funding and rent reasonableness for the
tenant.
TERMINATION OF ASSISTANCE AND TENANCY The OCHA is required to terminate a family's assistance if certain program rules
are violated. For other types of offense,the OHCA has the discretion to either
terminate the family's assistance or to take another action.
All participants must adhere to Section 8 Housing Choice Family Obligations and
Informal Reviews/Hearings process.
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Attachment 2
ORANGE COUNTY LOCAL RENT SUPPLEMENT PROGRAM (OC-LRSP) DRAFT IMPLEMENTATION TIMELINE
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The February 11 -March 15,2019 screening period may be extended due to the number of applications received.
FY 2019 Fair Market Rent Documentation System—Calculation for Durham-Chapel Hil... Page I 14 of 7
I FY 2019 FAIR MARKET RENT
DOCUMENTATION SYSTEM
The FY 2019 FMRs for All Bedroom Sizes
Final FY 2019 FMRs By Unit Bedrooms
Year Efficiency One- Two- Three- Four-
Bedroom Bedroom Bedroom Bedroom
FY 2019 $834 $902
FMR $1,055 $1,435 $1,624
FY 2018 $731 $847 $990 $1,356 $1,512
FMR
Orange County, North Carolina is part of the Durham-Chapel Hill, NC HUD Metro
FMR Area, which consists of the following counties: Chatham County, NC; Durham
County, NC; and Orange County, NC. All information here applies to the entirety
of the Durham-Chapel Hill, NC HUD Metro FMR Area.
Fair Market Rent Calculation Methodology
Show/Hide Methodology Narrative
Fair Market Rents for metropolitan areas and non-metropolitan FMR areas are
developed as follows:
1. 2012-2016 5-year American Community Survey (ACS) estimates of
2-bedroom adjusted standard quality gross rents calculated for each FMR
area are used as the new basis for FY2019 provided the estimate is
statistically reliable. For FY2019, the test for reliability is whether the margin
of error for the estimate is less than 50% of the estimate itself and whether
the ACS estimate is based on at least 100 survey cases. HUD does not
receive the exact number of survey cases, but rather a categorical variable
known as the count indicator indicating a range of cases. An estimate based
on at least 100 cases corresponds to a count indicator of 4 or higher.
If an area does not have a reliable 2012-2016 5-year, HUD checks whether
the area has had at least minimally reliable estimate in any of the past 3
years, or estimates that meet the 50% margin of error test described above.
If so, the FY2019 base rent is the average of the inflated ACS estimates.
https://www.huduser.gov/portal/datasets/fmr/fmrs/FY2019_code/2019summary.odn 10/29/2018
15
RES-2018-083 Attachment 4
ORANGE COUNTY BOARD OF COMMISSIONERS
RESOLUTION
AUTHORIZING ENTERING INTO AN AGREEMENT WITH THE ORANGE
COUNTY HOUSING AUTHORITY FOR ADMINISTRATION OF THE
COUNTY'S NEW LOCAL RENT SUPPLEMENT PROGRAM
WHEREAS, the Orange County Board of County Commissioners has identified affordable
housing as one of its top priorities; and
WHEREAS, Orange County seeks to increase the supply, as well as access to affordable
housing and has established the Local Rent Supplement Program to provide housing assistance to
low and extremely low income households within the County and has allocated$100,000 in general
appropriations for the issuance of local vouchers to eligible households. In addition, Orange County
received $114,613 in HOME funds to assist the new Program with tenant-based rental assistance,
including funding for security deposits and utility connections; and
WHEREAS, Orange County seeks to have the new Local Rent Supplement Program
administered similarly as the federal Housing Choice Voucher Program but with the differences
identified in the approved program guidelines; and
WHEREAS, the Orange County Housing Authority currently administers the Housing
Choice Voucher Program in Orange County and has experience in managing several types of
voucher programs; and
WHEREAS, Orange County seeks to enter into an agreement with Orange County Housing
Authority to use the available local appropriated funds to administer the County's Local Rent
Supplement Program per the approved guidelines, as well as make referrals to Orange County as it
relates to leveraging the HOME funds awarded the County for tenant-based rental assistance for
eligible households participating in the new Local Rent Supplement Program;
NOW THEREFORE BE IT RESOLVED by the Orange County Board of
Commissioners that the Board authorizes the County Manager to enter into an agreement with the
Orange County Housing Authority for the administration of the Local Rent Supplement Program
after consultation with the County Attorney.
This the 11th Day of December,2018.
Penny Rich, Chair
Orange County Board of Commissioners