City of Alexandria, Virginia
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Memorandum
DATE: NOVEMBER 20, 2024
TO: THE HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL
THROUGH: JAMES F. PARAJON, CITY MANAGER /s/
FROM: KATE GARVEY, DIRECTOR, DEPARTMENT OF COMMUNITY AND HUMAN SERVICES
DOCKET TITLE:
TITLE
Consideration of a Request to Repeal Senior Rent Relief Resolution No. 2019, Adopt a New Senior Rent Relief Resolution to Reflect the Economic Changes Impacting the City’s Low-Income Older Adults and Disabled Residents, and Amend the Senior Rent Relief Program Eligibility Criteria. [ROLL-CALL VOTE]
ISSUE:
The City’s Senior Rent Relief Program (SRRP), with an annual income criterion of $25,600, has not been adjusted since 2002. The current SRRP annual income criteria and subsidy amounts do not keep pace with the City’s rising cost of living and ongoing housing affordability concerns.
RECOMMENDATIONS: That City Council:
1. Repeal the current SRRP Resolution 2019 in its entirety.
2. Repeal the current name of Senior Rent Relief Program and change it to “Rent Relief for Older and Disabled Adults” to reflect more age-friendly language and the target population.
3. Adopt the proposed replacement of Resolution 2019 and accept the new Resolution, number to be assigned following approval, which authorizes recommended program modifications and sets forth other associated terms and conditions.
4. Approve a change in the City’s income eligibility criteria from at or below $25,600 to thirty percent (30%) of the Department of Housing and Urban Development’s (HUD) Area Median Income (AMI) limits as outlined by the newly adopted Resolution, number to be assigned following approval.
5. Approve the new exemption amounts to determine the income disregards associated with the program as reflected in the newly adopted Resolution, number to be assigned following approval; and
6. Approve the provision of a two-tiered subsidy of either $375 or $500, as reflected in the newly adopted Resolution, number to be assigned following approval.
BACKGROUND: On November 15, 1974, the City Council adopted Resolution No. 352, which established the rent relief program for elderly citizens. After the establishment of the rent relief program, Resolutions Nos. 569, 728, and 854 were adopted to implement programmatic changes. City Council replaced these combined resolutions with Resolution No. 1391 on June 27, 1989, most notably to expand the program to residents who are permanently disabled and establish income exemptions. A subsequent Resolution No. 2019 replaced Resolution No. 1391 on February 26, 2002. This resolution defined the term Total Combined Income and increased the income eligibility limit to $25,600. An income scale system was also established, creating a five-tier monthly assistance amount based on the participant’s income eligibility.
In fiscal year 2015, the program was once again amended, resulting in an increase in the budget allocation for the program, and the City Council approved the reduction of the income scale from five to three tiers, with monthly assistance set at $250, $375, and $500. In fiscal year 2023, the budget was increased from $422,177 to $776,000 annually to eliminate the waitlist and increase the number of households served.
DISCUSSION: SRRP is designed to reduce the rent burden for low-income older adults and those with disabilities who have a high proportion of rent expenses in relation to their income and net worth. According to HUD, an individual who pays more than thirty percent (30%) of gross household income on housing costs would be considered rent burdened. If more than fifty percent (50%) of gross income is spent on housing, the household is deemed severely rent-burdened.
To qualify for SRRP as outlined by SRRP Resolution 1391, applicants must meet the following criteria:
1. Individuals must be City of Alexandria residents for no less than 12 months.
2. Age sixty-five (65) years or older and/or permanently and totally disabled by Social Security standards or approved documented disability.
3. Leaseholder or occupant on the lease.
4. Have a gross household income of $25,600. If the applicant has any roommates or relatives living with the applicant other than the applicant’s spouse, $6,500 of gross income is exempted, and $7,500 of the gross income is exempted from any permanently and totally disabled person.
5. Total combined financial worth shall not exceed $75,000.
Participants are eligible to receive one of three subsidies of $250, $375-, or $500-income scale based on their income. Residents who receive rental subsidies under Section 8 or other federal, state, or local housing subsidy programs are ineligible for the SRRP.
In FY24, SRRP supported 148 residents, and below is the programmatic composition of the 148 participants:
1. Forty-Three (43) of the participants met the disability criteria.
2. Eighty-two (82) participants are 65 years and older.
3. Twenty-Three (23) were 65 years and older and totally disabled.
4. Ninety-four (94) participants are at the $500 tier within the income subsidy scale, twenty-four (24) at $375, and thirty (30) at $250; and
5. On average, current participants would use 98% of their income for rent without SRRP assistance, and with assistance, it is reduced to 69%. This indicates that, despite SRRP's assistance, the participants remain severely rent-burdened.
In FY 2025 year-to-date, the program has served 137 households, with 130 currently enrolled.
The recommended shift to HUD’s AMI income limits will reduce the number of Senior Rent Relief older adults and/or disabled participants from becoming ineligible due to the annual cost-of-living adjustments of Social Security and Social Security Disability Insurances. HUD’s thirty percent (30%) of AMI is within Extremely Low-Income limits, keeping with the intent of the program is to be accessible to rent-burdened low-income residents. For reference, the HUD 30% AMI for a 1-person household is $32,500, and for a household of 2 is $37,150.
Amend Changes to Current SRRP
The elimination of the income scale system would also (1) further reduce the rent burden, (2) help expedite the application process, and (3) support the economic stability of vulnerable residents. Ultimately, the program modifications would remove the effects of stagnant fixed-income criteria, allow for income adjustments that align with best practices, and increase opportunities for residents needing this assistance to access this resource and maintain housing stability. To this end, staff proposes that all participants receive the $375 or $500 subsidy and the following eligibility guidelines that reflect the program modifications included in the newly adopted Resolution:
1. City residents for no less than 12 months.
2. Age sixty-five (65) years or older and or permanently and totally disabled by Social Security standards or approved documented disability.
3. Leaseholder or occupant on the lease.
4. Have a gross household income of at or below HUD’s 30% AMI. (FY 2024 HUD Income Limit Chart <https://www.huduser.gov/portal/datasets/il/il2024/2024summary.odn?STATES=51.0&INPUTNAME=METRO47900M47900*5151099999%2BAlexandria+city&statelist=&stname=Virginia&wherefrom=%24wherefrom%24&statefp=51&year=2024&ne_flag=&selection_type=county&incpath=%24incpath%24&data=2024&SubmitButton=View+County+Calculations>). If the applicant has any roommate or relative living with the applicant other than the applicant’s spouse, $11,000 of gross income is exempted, and $12,700 of the gross income is exempted from any persons who meet the disability requirements, as defined by SS or medical provider; and
5. Total combined financial worth shall not exceed $75,000.
FISCAL IMPACT: No additional funding is needed to facilitate the recommended modifications. With the recommended changes, staff anticipates the SRRP budget allocation of $776,000 will serve an average of 130 to 143 households throughout the fiscal year. Program enrollment will be closely monitored. In the event an applicant is placed on the waitlist, staff will work closely with the household to identify alternative resources to address any immediate housing crisis needs.
ATTACHMENT:
1. Proposed Senior Rent Relief Replacement Resolution
2. Presentation - Proposed Change
STAFF:
Alethea Predeoux, Deputy City Manager
Lesa Gilbert, Director, DCHS Center for Economic Support