Scottsdale housing agency: voucher costs rising, HUD reserves drawn down
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Summary
At a May 8 Scottsdale Housing Agency Governing Board meeting, staff presented up-to-date Housing Choice Voucher data showing rising per-unit costs, increased budget utilization, a draw on HUD-held reserves and demographic trends affecting program costs.
Mary, a housing agency staff member, presented the Scottsdale Housing Agency's Housing Choice Voucher (HCV) data to the Governing Board on May 8, outlining participant demographics, per-unit costs, HUD-held reserve levels and payment-standard practices.
The presentation showed that 64% of current HCV participants identify as Caucasian and the largest age group is 50–64. Mary said that at admission 51% of participants were recorded as disabled, 36% as elderly and 16% as homeless, noting individuals can fall into more than one category. She told the board, “As of December of 2023, we had $1,100,000 in our HUD held reserves.”
Mary walked the board through the HCV dashboard and explained the program’s scale: staff reported 535 families leased at the time the slide was made and later noted 549 families leased to date. She said the agency is using about 11% of its budgetary authority and that “the budget utilization is going up” as rents rise. The agency’s average per-unit HAP (housing assistance payment) was reported as $1,281 currently, with a projection to $1,350 by the end of 2025 if rents continue to increase.
On payment standards and HUD rules, Mary summarized HUD guidance and local practice: housing agencies may set payment standards between 90% and 110% of HUD fair market rents; the Scottsdale agency’s average payment standard in the dashboard data (February 2023 figures) was roughly 7% above fair market rent. She also explained administrative-fee rates for 2025, saying the agency’s primary administrative rate was $96.62 per unit leased and describing how a stepped fee structure would apply if unit-months leased exceeded a set threshold.
Commissioners asked clarifying questions about the dashboard’s comparability across markets and voucher sizes driving costs. Commissioner Cooley asked whether the dashboard allows market-to-market comparisons; Mary replied, “You can compare us to any other city.” Commissioner Jamieson asked about 1-bedroom versus 2-bedroom cost drivers and whether Small Area Fair Market Rents (SAFMR) affected reported costs; Mary said the data reflected current leased individuals and that the slide used 02/2024 data so some local SAFMR impacts were not reflected on that particular slide.
No policy changes or votes on program rules were taken at the meeting; the item was informational. The board approved the previous meeting minutes earlier in the session by roll-call vote.