Q&A
New utility allowance system for CityFHEPS
0:17:22
ยท
136 sec
Commissioner Molly Wasow Park explains the new utility allowance system for the CityFHEPS program, which adjusts the maximum payment standard based on the utilities a client is responsible for paying.
- The system aims to ensure clients pay 30% of their income for housing, including utility costs.
- Maximum payment standards are adjusted automatically based on the utilities included in the rent.
- The utility allowance is built into the payment system, requiring no additional action from clients.
- This approach aligns with the Section 8 housing voucher program's methodology.
Diana Ayala
0:17:22
We've been joined by council member Kaban on Zoom.
0:17:26
How is the administration sharing information about the new utility allowance?
Molly Wasow Park
0:17:32
Terrific question.
0:17:33
So just to take a step back so we're all on the same page, the utility allowance is, really a reflection of the fact that, utility costs are a part of housing costs.
0:17:44
Right?
0:17:44
And our desire is that that people are paying 30 percent of their income for housing writ large, and that includes utility costs.
0:17:51
So what we have done, recently is to this is about a year ago, is to adjust so that the the maximum payment standard is adjusted depending on what forms of utilities, the client is responsible for.
0:18:08
So I just wanna to pull up my notes here to make sure I'm I'm I'm doing accurate examples here.
0:18:14
But, so the maximum payment standard, if all utilities were included,
Diana Ayala
0:18:21
for
Molly Wasow Park
0:18:21
a 2 bedroom is $3,027.
0:18:24
But if the tenant pays gas and electric, which is a very common scenario, it's, 28.85.
0:18:32
Right?
0:18:32
So there's a $142 difference.
0:18:35
And all of this is is coded into our systems.
0:18:38
Right?
0:18:38
So that it is, the client doesn't need to know to ask for this.
0:18:42
Right?
0:18:42
That that this is is set when their voucher is getting processed.
0:18:46
So in that case, the maximum, the that the landlord can collect is the 28.85 and, also varying based on legal rent and things like that.
0:19:00
But I'm I'm sort of pretending for the moment that that's not an issue.
0:19:04
The client is paying 30% of their income in rent.
0:19:07
So if if if you theoretically let's just say 30% of their income was $300, they're actually paying a 150 8 of that in rent, and then that $142 that shelter allowance, right, is available for use as utilities.
0:19:23
So this aligns with section 8 the way section 8 has been doing it for a very long time.
0:19:28
Those utility
Diana Ayala
0:19:28
allowances are posted on our website.
0:19:29
But as I say, this this
Molly Wasow Park
0:19:29
structure is now caught allowances are posted on our website, but as I say, this this structure is now codified into our system so that it's processed on an automatic basis.