cmha and the nelrod company

CMHA and The Nelrod Company

Community Focus Group Meeting -

An Intro to HCV Rent Reasonableness

CMHA’s Mission Statement

To provide quality affordable housing solutions by building partnerships with Hamilton County communities while strengthening and expanding housing opportunities for families to achieve self-sufficiency.

Assisted Housing in the U.S.

U.S. Ohio Hamilton County

Public Housing 1.2 Million 50,000 5,700

Housing Choice Vouchers

2 Million 70,000 10,698

Site-Based Section 8

1.4 million 80,000 9,100

Source:

Types of Government Housing Programs

HCV Project Based

Assistance

Public Housing

LIHTC

Type of Assistance

Tenant Based

Project/ Site Based

Project/ Site Based

Site/ Project Based

Property Owner Private Owner

Private Owner CMHA or Other PHA

Private Owner

Portability Anywhere in US

Stays w/Unit Stays w/Unit Stays w/Unit

Lease Enforcement

Owner Owner Owner – CMHA

Owner

HUD Review SEMAP HUD Management & Occupancy Review

PHAS State Agency

How does Assisted Housing Benefit the Community?

Provides workforce supply and allows businesses to access employees who live close to their jobs

Generates property taxes – HCV and PBS8 Generates maintenance and management fees

spent in the neighborhoods Expands low-income housing opportunities Increases diversity throughout the county Bolsters rental occupancy rates in a soft market

Where can a HCV Tenant Live in Hamilton County?

Federal law permits a CMHA Housing Choice Voucher tenant to live in almost any rental property in Hamilton County that meets HUD guidelines when the owner is willing to accept a Voucher.

There are no special qualifications, but the property owner must be willing to comply with rent restrictions and housing quality standards.

CMHA HCV owners are required to abide by all Federal, state and local laws.

CMHA HCV owners are required to continuously maintain rental units in compliance with federal Housing Quality Standards (HQS), local housing codes and CMHA guidelines.

CMHA HCV owners are required to screen and approve each renter, collect a security deposit from the renter, execute an acceptable lease with renter, execute a Housing Assistance Payment (HAP) Contract with CMHA and proactively enforce the lease.

CMHA is…

Seeking community input on Rent Reasonableness

What is Rent Reasonableness?

Rent Reasonableness (RR) is the HUD mandated process that PHAs use to ensure that approved HCV program rents are “reasonable”.

“Reasonable” is defined as what a knowledgeable consumer would pay for rent in a particular rental market.

Goals of Rent Reasonableness

To ensure that program participants pay rents that are comparable with the market

To ensure that program rents do not adversely affect the jurisdictional rental market

To ensure effective disbursement of agency HAP dollars

When is a RR Assessment Required?

Before execution of a HAP Contract Before granting a requested increase in

rent to owner If there is a 5% FMR decrease Whenever HUD requires

Rent Comparability

The RR assessment establishes that the proposed Owner Rent is: Comparable to similar unassisted units in the

marketplace, and Comparable to similar units on the premises

CMHA’s Rent Reasonableness Task Force

CMHA used a competitive bidding process to select a RR vendor.

The Nelrod Company was awarded the opportunity to perform all data collection and analysis for CMHA’s 2010 Rent Reasonableness study.

The Nelrod Company is responsible for collecting additional specialized data from local community agencies and government groups.

The community information will help to guide data collection efforts and final analysis.