HomeMy WebLinkAboutCOM 0270.001 2004-2006 QTY Ol y
Harry Kim Edwm S. Taira
Mayor Housing Administrator
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OFFICE OF HOUSING AND
COMMUNITY DEVELOPMENT
50 W ailuku Dnve • Hilo, Hawaii 96720-2484
V/TT (808) 96I-8379 • FAX (808) 961-8689
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May 23, 2005
The Honorable Stacy K. Higa, Chair
and Members
Hawaii County Council
25 Aupuni Street
Hilo, Hawaii 96720
Subject: Request for Information
Shortfall - $700,000
Existing Housing Division
This is in response to a request for information from Finance
Chair Ms. Virginia Isbell, at the meeting of the Finance
Committee on Tuesday, May 17, 2005, at 9:00 a.m.
Sharon Hirota, Office of Housing and Community Development (OHCD)
Existing Housing Division head was asked to respond by the next
meeting of the Hawaii County Council.
The question: "What is the impact on the families"?
The response: The shortfall of $700,000 directly impacts the
ability of the OHCD to administer the Section 8 program. Without
the additional funding the OHCD will have to layoff about one-
third of our staff. Without the proper level of staffing, the
OHCD foresees the following impact to the community:
1. The reduction of staff by six (6);
2. Which translates to the reduction of the program by
approximately thirty (30) per cent;
3. Which affects six hundred (600) low-income families
currently assisted by the Section 8 program.
Comm. No. a Q
Ref. To:
iozsseiw.ao~ Ref, Cote MAY 2 3 20
EQUAL HOUSING OPPORTUNITY
"HAWAI' I COUNTY IS AN EQUAL OPPORTUNITY
PROVIDER AND EMPLOYER"
The Honorable Stacy K. Higa
Page 2
May 23, 2005
We did not have the time to do an actual count, but based on
current statistical data, this would translate to:
• 54 elderly families
• 234 disabled families
• 936 children (under the age of 19)
4. The OHCD would not be able to process and use all of
its rent subsidies. Therefore, we would lose
approximately $5,867 annually per family, or $3,500,000
in total;
5. The U. 5. Department of Housing and Urban Development
(HUD) would reduce the amount we would be able to
receive by the amount we could not use, and would give
us less rental subsidies and proportionately reduce the
amount of administrative funds earned by the OHCD;
6. The further reduction in administrative funds would
mean the start of a vicious downward spiral, because we
would have to reduce staffing levels, and therefore,
lose more rent subsidies, and the loss of more rent
subsidies means the loss of more administrative funds,
and so forth, and so on.
There is a reason HUD chose to set the administrative funding
levels at the August 2003 levels while increasing program
administrative requirements, which means more staff hours per
family. HUD is trying to force local housing agencies to reduce
the level of spending by forcing them to down-spiral. Given the
HUD formula in place now, the OHCD will never be able to be self-
sufficient. There will be a need for operating subsidies to
maintain the level of rental subsidies brought into our
community.
I can be reached at ext. 8379 if you need additional information
or clarification. Thank you.
Edw S. Taira
Housing Administrator
C: Harry Kim, Mayor
Pete Hoffmann, Chair, Hawaii County Housing Agency