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2010 Session

Budget Amendments - HB30 (Member Request)

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Chief Patron: Locke
Rental Assistance Pilot Project

Item 99 #1s

Item 99 #1s

First Year - FY2011 Second Year - FY2012
Commerce And Trade
Housing and Community Development, Department of FY2011 $100,000 FY2012 $2,350,000 NGF

Language
Page 55, line 18, strike "$47,675,836" and insert "$47,775,836".
Page 55, line 18, strike "$48,903,368" and insert "$51,253,368".


Explanation
(This amendment provides $100,000 NGF in FY 2011 from the TANF block grant for start-up costs for a Rental Assistance Pilot Project (RAPP) that will continue into FY 2012. The RAPP would be created under the Department of Housing and Community Development through its existing Homeless Intervention Program sites, minimizing administrative costs and ensuring that funds go directly to families and individuals in need. The purpose of the pilot project is to prevent families from going into emergency shelters for housing and to assist families who are unable to leave shelters due to the difference between their income and market rent rates. Funds from RAPP would temporarily field the gap between family income and the cost of housing. Working families would be responsible to contribute 30 percent (the national average housing affordability figure) of their income toward their rent. It is estimated that 700 families could be served during the first year of the pilot project. The project would include the requirement for biannual reports from the participating localities in order to evaluate the effectiveness of the program, as well as a final report to the Governor and the housing commission on the effectiveness of the pilot project. The American Recovery and Reinvestment Act (ARRA) TANF Emergency Contingency Fund (ECF) provides for 80 percent federal reimbursement of increased costs for basic assistance, non-recurrent short-term payments, and subsidized employment (over FY 2007 or FY 2008). Data from the Department of Social Services demonstrate increased costs in the eligible categories during FY 2009 and FY 2010, which qualifies Virginia for additional reimbursements, as described above. The Department of Social Services is directed to request such reimbursement from the ARRA TANF ECF, and to utilize $1,000,000 of these reimbursed funds to support a two year Rental Assistance Program.)