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2.  Robert Basile, Housing Rehabilitation Manager  1000 Webster St., Fairfield, CA 94533 (707) 428-7387  Lee A. Evans, Housing Operations Supervisor  823-B Jefferson St., Fairfield, CA 94533 (707) 428-7391 Housing Authority Staff - Main Phone (707) 428-7392  Housing Specialists - Melanie Boulay, Angelica Rosario, Emma Harris  Housing Technician – JoAnn Kernick  Administrative Specialists - Lynn Don, Marna Rollins and Cynthia Sutterfield 2

3.  Please turn off all cell phones  No Food or Drink is allowed  Restrooms are located in the Lobby 3

4. 1) All assisted tenants are invited to attend the Resident Advisory Board (RAB) meetings 2) RAB Meetings are required by HUD once a year 3) Usually held in February prior to approval of the Annual Agency Plan 4) Purpose to review and comment on proposed changes to Housing Authority Policy and Practices 4

5. Here are several scenarios for the pending federal budget negotiations 1. New budget approved, sequestration ends 2. Sequestration continues into 2014 under a continuing resolution 3. Government shutdown – no budget agreement We need a crystal ball to tell the future 5

6.  Effective March 1, 2013  Budget reductions of all federal expenses for 10 years with the intent to reduce the federal deficit  Virtually all HUD programs were cut by 5.1%  HUD estimates that this cut can cause 125,000 households in California to lose their Section 8 voucher and become homeless 6

7.  In 2011-2012, HUD took away $888,000 of program reserves from the Housing Authority  The trend from HUD is to reduce the amount of program funding for tenant rent  Current monthly check-run is approx. $645,000  HUD is only paying $596,289 monthly  Funding shortfall is covered by our reserves 7

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9. MONTHHUD FUNDINGEXPENSESDifferenceRESERVES Beginning Balance349,500 January 2013 652,400656,800 (4,400) 345,100 February 652,400652,000 0 345,100 March 652,400659,000 (6,600) 338,500 April 570,679652,000 (81,321) 257,179 May 603,104648,000 (44,896) 212,283 June 603,104646,000 (42,896) 169,387 July 596,289642,000 (45,711) 123,676 August 596,289648,000 (51,711) 71,965 September 596,289 645,000*(48,711) 23,254 October 596,289 645,000*(48,711)(25,457) November 596,289 645,000*(48,711)(74,168) December 596,289 645,000*(48,711)(122,879) YTD Total 7,311,8217,775,000 (472,379) -0- * Expenses shown are an estimate based on current trend 9

10.  Every October HUD publishes new payment standards.  Payment Standards are a survey of our jurisdiction reflecting the cost of Rent + Utilities by bedroom size.  The Housing Authority has the ability to set the local Payment Standard between 90% and 110% of the published amount.  Current Payment Standards are set at 100%, which is the published amount from HUD. 10

11. 1 Bedroom 2 Bedroom 3 Bedroom 4 Bedroom Solano County Fairfield (Current 100%) 931116617182043 Fairfield (Proposed 92%) 854107015771874 Suisun857107315811880 Vacaville965110716061910 Vallejo885110816331941 11

12. 1 Bedroom 2 Bedroom 3 Bedroom 4 Bedroom Fairfield (Proposed 92%) 854107015771874 California Housing Authorities Contra Costa County974122517112099 Fresno65279011201296 Roseville77596614231710 Sacramento862105215171740 Santa Rosa1051133218432161 12

13. YearEfficiency One- Bedroom Two- Bedroom Three- Bedroom Four- Bedroom HUD Proposed FY2014 FMR $738$928$1,163$1,714$2,037 Fairfield (Proposed 92%) $679$854$1070$1577$1874 HUD Final FY2013 FMR $739$931$1,166$1,718$2,043 Percentage Change -0.1%-0.3% -0.2%-0.3% Solano County 13

14. 1) In 2013, there is a $473,000 funding shortfall 2) In 2014, the funding shortfall will be $560,000 3) In 2015, the shortfall will be $730,000 4) Federal spending will not increase for social programs until the federal deficit is under control 5) Federal deficit on September 17, 2013 was: $16.7 Trillion 6) We must adapt to stay within the funding provided by HUD 14

15. LOWER THE PAYMENT STANDARD This will increase the tenant share of rent, therefore reducing the average HAP paid by the Housing Authority No vouchers would be terminated at 92% of the Payment Standard If the Payment Standard is set between 93% and 100%, there will be voucher terminations 15

16. TERMINATE VOUCHER ASSISTANCE  We would need to cut 84 vouchers to get our current HAP expenses in alignment with the HUD funding in 2015  Which Vouchers do we cut? The last 84 vouchers issued Those who have been on the program the longest Families with the highest income By lottery – draw names Terminate assistance of those currently not under lease 16

17. Projected administrative expenses for 2015 are not available 17