The Arlington Housing Authority (AHA) at its October board meeting discussed an appeal of the decreasing rent share from the federal government and approved budgeting for federal, state, AHA management projects. All members except Treasurer Nicholas Mitropoulos were present.
Jack Nagle, the executive director of AHA, said the largest voucher programs in the metro region – including the Cambridge and Boston housing authorities and the state housing agency — have appealed to the U.S. Department of Housing and Urban Development (HUD) seeking fairer rents.
The proposed rent and payment standard for fiscal 2025 proposed rent and payment standard for fiscal 2025 is $2,288 for one-bedroom, $2,711 for two-bedroom, $3,266 for three-bedroom and $3,594 for four-bedroom. The original standard rent for fiscal 2024 has been $2,377 for one-bedroom, $2,827 for two-bedroom, $3,418 for three-bedroom and $3,765 for four-bedroom.
Some tentants could pay more
The changes mean that some tenants could pay more on their end since HUD determines how much rent local authorities will cover. A lower allotment means the housing authorities would cover less for some.
Ask to confirm this understanding, Nagle told YourArlington: “That could be correct . . . if the participant (voucher holder) is currently at the top end of the fair market rent.”
“It [the payment standard] is not feasible in the current rental market,” Nagle said. The AHA will continue to use the current payment standards before the HUD Fair Market Rent and Payment finishes reviewing the request and making any final changes.
Nagle made clear: “The AHA will not be implementing the new proposed [payment standard] from HUD at this time due to the pending appeal.”
Budget adviser explains
Certified public accountant Richard W. Conlon Jr. advised the board about the budgets at the meeting. As of fiscal 2024, the state provided a 12-percent increase on the allowable expense level, permitting the AHA to increase the budget by $437,423, Conlon said. The state will set aside a total of $1,450,002 for AHA subsidies, he said. “Fire insurance has gone up tremendously,” he said. “Everything that goes on in Florida with all the hurricanes affects the fire and property insurance, and we expect that it’s going to go up again considerably next year, and we reserved money for that,” Conlon said. Vice Chair Gaar Talanian raised concerns regarding the utility-price increase. “The state will fund whatever the actual utility costs are. The AHA has roughly $2,019,000 for utility under the 400 program,” said Conlon.
In terms of budgeting for state and federal programs, Conlon mentioned that under the state 400 program, a state effort to support low-income families, the AHA will have a surplus of $43,800. The Massachusetts Rental Voucher Program will have a surplus of $117.The AHA is taking $65,243 out of the federal Section 8 Housing Choice Voucher Program, which helps families with low income by paying part of their rent. Conlon explained: “This year, they didn’t fully fund the Section 8 program, so we think that next year they are not going to give the same amount for administrative fees they normally do. We are anticipating our revenue won’t be as high as it was in 2024, so that’s why we are going to be taking money from the program.
“The AHA has the ability to utilize reserves for any of its programs. If the AHA does not need to utilize reserves for that program, it may be able to increase the reserves for that program, ” mentioned Nagle.
ROSS defiicit
The Resident Opportunity and Self-Sufficiency Grant Program (ROSS), which provides funding to hire and maintain service coordinators who assess the needs of residents, will run a deficit of $11,337. The ROSS budget represents the grant that funds the Family Self-Sufficiency program. That is a program enabling HUD-assisted families, such as Section 8 participants, to increase their earned income and reduce their dependency on public assistance programs and rental subsidies, said Nagle.
The local affordable-housing program expects to gain $33,692, and the state modernization program is expected to break even. All members present unanimously voted to pass all budgets.
In addition to budget planning for federal and state programs, the AHA is also on the lookout for developing a new department. “Having a human resources department or professional would be able to assist AHA with not only the on-broading, but also with improving employee retention,” said Jack Nagle, AHA executive director. The Executive Office of Housing and Livable Communities (EOHLC) has funded a study to examine how housing authorities could use resources to afford a human resources department. “It could be a partnership between two housing authorities, or could be a partnership potentially between five housing authorities. That is what the study is going to help us understand — what it’s going to take financially to have a position like this, ” Nagle explained.
The goal is to have the AHA as a host agency with their human resource department on-site, he said. The board voted, 4-0, to approve the study with UMass./Boston’s Edward J. Collins Center for Public Management, allowing the EOHLC to fully fund it.
In terms of sustainability and project updates, Nagle said the state is looking for housing authorities to transition from fossil-fuel heating systems, hot water systems, cooking systems to electric.
The AHA Oct. 16 meeting began at 7:09 p.m. on Zoom and lasted about 50 minutes.
Sept. 26, 2024: Town hack helps AHA move to approve cyberinsurance
This news summary by YourArlington freelance writer Crystal Lin was published Tuesday, Oct. 22, 2024.
This reporting demonstrates your donations at work to support democracy here.YourArlington is a 501(c)(3) nonprofit.Your contributions are tax-deductible.
