DEPARTMENT: Neighborhood and Housing Services
DEPARTMENT HEAD: Verónica R. Soto, AICP
COUNCIL DISTRICTS IMPACTED: City Wide
SUBJECT:
Briefing of the Risk Mitigation Policy and its four components
SUMMARY:
The purpose of a Risk Mitigation Policy is to establish a comprehensive policy for mitigating displacement across the City of San Antonio (the City). The policy would govern the requirements and procedures for relocation assistance as well as preemptive approaches to displacement including emergency rental and utility assistance.
Staff coordinated various outreach activities to receive input on the direction of the plan during the months of September 2018 through January 2019. A completed draft is anticipated to go before City Council late February or March 2019.
BACKGROUND INFORMATION:
The policy priority for preventing and mitigating displacement outlined in the Mayor’s housing policy taskforce recommended staff explore the following solutions in conjunction with the creation of the risk mitigation fund: the City should offer financial assistance to households facing emergency situations; and the City should provide relocation assistance for households being displaced due to redevelopment.
The Neighborhood and Housing Services Department (NHSD) of the City of San Antonio conducted community outreach and stakeholder focus groups:
§ Four public meetings held in September, October, November (2018), January (2019)
§ Three technical focus groups held between November (2018) and January (2019)
§ Online survey for understanding causes and consequences of displacement
§ Print survey located at various resource areas, including City council field offices
ISSUE:
The Risk Mitigation working elements has four components:
• Resident Relocation Assistance Program (RRAP): mitigate the harms of development-induced displacement.
• Relocation for Rapid Neighborhood Change: mitigate the harms of rapid increases in housing costs (15% or more in a year)
• Emergency Assistance: mitigate the financial impacts on housing of de-stabilizing life events.
• Rental Incentive Fund: mitigate the housing risks assumed by landlords who rent to rapid-rehousing program participants
The following are some of the draft concepts of the Risk Mitigation Policy.
Resident Relocation Assistance Program (RRAP)
• Program ensures citizens who experience development-induced displacement receive adequate notice, support, and financial assistance to relocate to a new home.
• Participation is mandatory for developers who receive city incentives and require people to move from the property.
o Developer must give impacted residents at least 90 days’ notice to vacate and pay all eligible moving-related costs.
• Developers who are not receiving city incentives can opt in to the program and share the costs with the city.
o Developer to give impacted residents at least 90 days’ notice and pay the first $2,500 per household ($5,000 for mobile home households) in eligible expenses. The city will provide the remaining funds
Relocation for Rapid Neighborhood Change
Households in apartments or mobile homes with increases in rent of 15% or higher over at the time of a lease renewal following a lease period of at least 12 months are eligible for relocation assistance if their income is at or below 100% AMI.
Emergency Assistance
Short-term funding to cover housing costs for people experiencing acute, destabilizing life events such as a job loss or medical issue. Assistance for renters will be paid directly to the landlord on behalf of the assisted household for up to three months not to exceed $3,800. Homeowners are eligible for up to three months of utility assistance not to exceed $1,000.
Rental Incentive Fund
The Rental Incentive Fund exists to mitigate the perceived risk by ensuring funds are available in the event the tenant exits their lease early or causes any damage to the unit in excess of their deposit. People who are being displaced by redevelopment or rapid neighborhood change often have low incomes from jobs or publicly-administered programs that allow them to pay rent but lack savings to move. Some may have rental histories that are barriers to housing. The risk perceived by landlords can markedly increase the costs of accessing housing or prevent it all together.
FISCAL IMPACT:
The policy will work in conjunction with the Risk Mitigation Fund that has a budget of $1,000,000.
RECOMMENDATION:
This item is to brief the committee on initial Risk Mitigation Fund policy concepts. City staff will incorporate feedback received during the meeting into the final draft policy to be presented to Comprehensive Plan Committee in February.