HomeMy WebLinkAboutAgenda - 11-07-2024; 7-a - Update on the Impact of New FY 2024-25 Emergency Housing Assistance Guidelines 1
ORANGE COUNTY
BOARD OF COMMISSIONERS
ACTION AGENDA ITEM ABSTRACT
Meeting Date: November 7, 2024
Action Agenda
Item No. 7-a
SUBJECT: Update on the Impact of New FY 2024-25 Emergency Housing Assistance
Guidelines
DEPARTMENT: Housing
ATTACHMENT(S): INFORMATION CONTACT:
Presentation Blake Rosser, 919-245-2490
PURPOSE: To receive an update on the impact of new Emergency Housing Assistance (EHA)
guidelines during the first quarter of fiscal year.
BACKGROUND: The Emergency Housing Assistance (EHA) program made several eligibility
and policy changes for Fiscal Year 2024-2025. EHA can assist 12 households per month with a
payment of up to $4,500 if the following requirements are met:
• Earn <_ 30% Area Median Income (AMI)
• Experience a "Life-Changing Event" (LCE) within the last three (3) months which affects
the ability to pay rent, OR receive a court summons for an eviction
Additionally, applicants are required to complete a written plan for income stability and making
rental payments in the future.
Program Data
The average number of applications per month increased from 47 before the changes to 63 after
the changes. However, the higher average was caused by a large, one-time spike in applications
in July. Otherwise, the average number of applications has stayed relatively consistent throughout
the past year, as seen in the accompanying chart:
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New Applications 2023-2024
NOVEMBER DECEMBER JANUARY FEBRUARY MARCH APRIL MAY JUNE JULY AUGUST SEPTEMBER
Given that the number of applications dropped significantly in August and September, the
increase in July is likely related to other factors such as summer holiday and school closures,
rather than the change in policy. The number of pending applications has fluctuated throughout
the three (3) months, but is typically in the range of 20-40.
The average total amount spent per month since the policy change is $48,396.69, with an average
of $4,033.06 per household assisted. The average amount households receive is lower than the
$4,500 cap on assistance because additional months are only paid if they can be paid in full since
a landlord could begin eviction proceedings based on a partial payment.
The percentage of applications denied has increased from 53% to 66%. As seen in the chart
below, denials are predominantly due to the household being over 30% AMI or living outside of
Orange County. Insufficient documentation of an LCE contributed to 22 denials.
Denied Applications (127)
40 34
35 33
30
25 22
20 18
15 10
10 0 5
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O OJwS Q�°Q
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Life-Changing-Event Qualification
The main change to the policy from a non-financial standpoint is the ability to qualify for EHA
through an LCE. LCEs allowed some households to qualify for assistance before the eviction
process, but limited the ability to provide financial assistance once a case reached court.
The option to qualify through LCEs allowed 21 households to apply for assistance earlier than if
they had to wait for a court case to be filed. While twelve (12) of those households avoided an
eviction filing completely, nine (9) still had a court case filed against them as the eviction was
initiated after the application was submitted, but before it was evaluated and approved by staff. A
total of fifteen (15) households were approved for EHA assistance based solely on a court
summons.
There was not a significant difference in average processing time between applications with an
LCE (24 days) as opposed to a court summons (22 days). The primary reasons for the gap were
time spent waiting on responses from households and property owners and the quantity of
applications. Applications that relied solely on an LCE required more follow-up questions and time
from EHA staff as the documentation provided in the original application was often insufficient or
unclear.
Repeat Evictions for Eviction Diversion Program Clients
Finally, the Board previously requested data on repeat evictions. The data presented in the table
below covers the six-month timeframe from April 1, 2024 through September 30, 2024:
Percenmtlff Total
Total EDP Clients Served 280
Repeat Court Summons` + No EHA 30 10.7%
Repeat Summons + Received EHA 19 6.8%
Total Repeat Court Summons (With 49 17.5%
and without EHA)
*First eviction resolved, then a new eviction filed later
Summary
Initial data suggests that the addition of a qualifying Life Changing Event has allowed Emergency
Housing Assistance funds to be used earlier and to prevent an eviction filing in over half of cases.
At the same time, households which were not able to apply before eviction court were still able to
receive assistance, representing a balance between the two types of applications.
FINANCIAL IMPACT: There is no financial impact associated with receiving this program update.
The EHA program has been reduced in scale from its $2,000,000 budget from FY 2023-24
(predominantly in federal American Rescue Plan Act (ARPA) funds) to a little less than $500,000
this year (about $150,000 in leftover ARPA funds, and the remainder locally funded).
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ALIGNMENT WITH STRATEGIC PLAN: This item supports:
• GOAL 3: HOUSING FOR ALL
OBJECTIVE 2. Address need and any policy barriers to increase access to emergency
shelter beds and other low-barrier housing including eviction diversion.
RECOMMENDATION(S): The Manager recommends that the Board review the initial data from
the revised Emergency Housing Assistance program and provide any comments and questions.
ORANGE COUNTY
Q HOUSING DEPARTMENT
Impact of New FY24-25 Emergency
Housing Assistance (EHA) Guidelines
November 7., 2024
6
But for July s application numbers
pike, a
about the same
New Applications 2023-2024
NOVEMBER DECEMBER JANUARY FEBRUARY MARCH APRIL MAY JUNE JULY AUGUST SEPTEMBER
ORANGE COUNTY
HOUSING DEPARTMENT
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Top reasons for denial: income level and
non-residenc
y
Denied Applications (127)
40
35 34 33
30
25 22
20 18
15
10
10
5
5
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ORANGE COUNTY
HOUSING DEPARTMENT
8
Average amount, timingof assistance show
interesting trends
11�r MMMMMMMV� 16"M-W IM
Avg. Assistance Amount $4,033
Avg. Monthly Expense $48,397*
Avg. Time to Process 26 days
Households assisted with Life- 21
Changing Event (LCE)
Households assisted with Court 15
Summons
Number of LCE Households 12
assisted prior to eviction
*Includes some larger holdover applications from June ORANGE COUNTY
HOUSING DEPARTMENT
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Board requested uested data on repeat
previously q p
evictions
Data is for 6- month window (4/l/24-9/30/24)
Clients from 4/l/24T9/30/2 1 6W ON t F19rcent of Totalr—
.� -01- �49110
Total EDP Clients Served 280
Repeat Court Summons* + No EHA 30 10.7%
Repeat Summons + Received EHA 19 6.8%
Total Repeat Court Summons (With 49 17.5%
and without EHA)
*First eviction resolved, then a new eviction filed later
ORANGECOUNTY
HOUSING DEPARTMENT
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For any questions:
Blake Rosser
• brosser@orangecountync . gov
919-245-2492
ORANGE COUNTY
0 HOUSING DEPARTMENT