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Yolo County Housing Authority Lowers Voucher Payment Standards, Freezes Rent Increases for 2025; Resolution Passed Unanimously
Summary
The commission adopted a resolution to reduce voucher payment standards by 5% across most unit sizes, notify landlords that rent increases will not be processed for the remainder of 2025, and set implementation for April 1 to align recertification cycles. The vote was unanimous.
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The Yolo County Housing Authority on Jan. 22 adopted a resolution to amend Housing Choice Voucher payment standards and authorized the executive director to implement the change effective April 1, 2025. The motion passed unanimously.
Ian Evans, executive director, told commissioners the change responds to funding uncertainty from HUD and an observed increase in voucher payments that risk exceeding the agency’s initial budget authority. Evans said the authority entered 2025 with approximately $37,000 in HUD‑held reserves and an initial 2025 budget authority of about $20.6 million; HUD projection tools estimate final voucher payments could reach $22.3 million if trends continue. Evans said HUD also sent a December letter warning that 2025 shortfall funding is "uncertain." He recommended slowing cost growth through payment‑standard adjustments and operational changes.
The commission approved the following staff recommendations: reduce the current payment standard by 5% across the board compared with the levels set in October 2024 (examples given by staff: all one‑bedroom payment standards set to 105% of Fair Market Rent instead of 110% in the county; other bedroom sizes in the county set to 95% rather than 100%; Davis remains at 105%), and notify landlords that the agency will not process rent increases for the remainder of 2025. Staff said the April 1 effective date aligns with typical 60‑day recertification processing so tenants whose recertifications were already processed for January–March will not have their tenant portions changed retroactively.
Evans told the commission the agency historically increased payment standards substantially since 2019 and that, even with the proposed reductions, projected rent burden on voucher households (households paying more than 30% of income in rent) would remain lower than early 2024 levels. Using HUD’s rent‑burden projection tool, staff estimated rent‑burdened households would change from 11.5% in 2024 to roughly 10.4% in 2025 under the recommended standard.
Commissioner Early moved the resolution; the motion was seconded as recorded in the meeting transcript. A roll call vote recorded ayes from all five commissioners present and the chair declared the motion passed unanimously.
Ending: Staff will notify landlords of the rent‑increase processing pause, implement the new payment standards on April 1, provide an update on voucher funding at the March meeting, and continue monitoring HUD guidance for 2025 shortfall funding.
