CRHA Board defers vote on payment standards

On October 26, the Board of Commissioners of the Charlottesville Redevelopment and Housing Authority had been expected to vote on a routine resolution to update “payment standards” that establish how much money the agency receives from the U.S. Department of Housing and Urban Development (HUD) for each housing voucher.

Executive Director John Sales told the Board that the vote would have to be delayed after CRHA staff received correspondence from HUD that will now require some recalculations and negotiations.

“We received an email on Friday letting everyone that housing authorities in shortfall know that they need to adjust their payment standards to no more than 100 percent of fair market rent with a target of 90 percent,” Sales said.

Every year, HUD establishes a “fair market rent” for every metropolitan area across the country.

“Fair Market Rents are gross rent estimates,” reads a description on the HUD website. “They include the shelter rent plus the cost of all tenant-paid utilities, except telephones, cable or satellite television service, and Internet service. HUD sets FMRs to assure that a sufficient supply of rental housing is available to program participants.”

Around this time last year, the CRHA board approved Resolution #1492 that set the payment standard at 110 percent of fair market rent to keep pace with rising rents.

Sales said CRHA is considered to be an agency in “shortfall” because of issues related to two years of vacancy at Crescent Halls. A plumbing failure early in the renovations forced all residents to have to leave and Sales said HUD sent some money to the agency prematurely.

“There was a projection, a lease-up schedule for project-based vouchers to start within six months of the project starting,” Sales said. “Of course, that didn’t happen because the building flooded. And so it actually took almost two years to actually get residents in, but HUD gave us that money early.”

Sales said CRHA did not spend that money and set it aside, but HUD withheld other money resulting in an accounting shortfall. He said he is still trying to negotiate with HUD, but for now the payment standards must be lowered to a level to be determined.

“It could have a potential impact down the road for, like, redevelopment efforts,” Sales said. “And so you can’t project-base vouchers or sign a contract while you’re in a shortfall.”

Sales said the redevelopment of Westhaven will need project-based vouchers in a few years and the accounting issue will need to be resolved by then.

For an additional resource on payment standards, consult the HUD guidebook on housing choice vouchers.

The CRHA Board did approve Resolution 1510 which set utility allowances.

The CRHA Board will have a work session on November 12 and a retreat on November 14.

City Councilor Michael Payne suggested there be an update at either on the activity of the Charlottesville Community Development Corporation, a nonprofit entity created in the spring of 2019 to facilitate the redevelopment of existing public housing sites. The CRHA Board is also the Board of the CCDC, an entity that serves to accept low-income housing tax credits.

“It’s been a while since its initial creation,” Payne said.

The CCDC is not to be confused with an additional nonprofit CRHA is creating to fundraise for various initiatives including resident services. Everything was set up by Riverbend Development as part of their partnership in a new era of expansion and renovation. You can learn more from this January 2019 article over at Charlottesville Tomorrow.

Payne also wants the CRHA Board to have a standing committee to review the government organization’s financial statements.

“I would definitely like for us to stand up the Finance Committee and then with a CCDC board meeting just be able to clean up some of the founding documents and, you know, get formal reports,” Payne said.

The refresher course will take place at the November 12 work session.

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