Conversion From Public Housing to Section 8 Rent Subsidies •
Staff have been evaluating conversion of four public housing properties to Section 8 Project Based Vouchers (PBV).
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PBV subsidies are more than 2 times current public housing subsidies while tenants for both programs pay 30% of their income toward rent.
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The average tenant rent plus public housing subsidy is less than $700 per unit per month. With Section 8 rent subsidies, the average rent plus subsidy income is $1,552.
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With conversion to PBV subsidies, the four target properties would have a debt or mortgage capacity of over $76 Million.
Properties Proposed for Conversion •
Ping Yuen, Ping Yuen North, Rosa Parks and Clementina Towers combined require $76 Million in capital improvements or over $84,000 per unit to address all building system, livability, marketability, usefulness and management needs.
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SFHA received $11 Million through the Capital Fund Program this year, $5.5 Million of which is available for vacant unit rehabilitation and capital improvements for all 5,390 public housing units ($1,020 PU). SFHA’s Physical Needs Assessment identifies $279 Million of immediate needs ($51,763 PU). Without leveraging outside funding, SFHA is unable to address capital needs at these and other properties.
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Residents at three of the four properties: Ping Yuen, Ping Yuen North and Rosa Parks support the efforts to secure funds through the conversion process. Since some residents at Clementina Towers are still very uncomfortable with the proposal, staff recommends moving forward with the three properties that have resident support at this time.