SPHA Takes Steps to Reduce Expenses

ST. PETERSBURG, FLORIDA – In order to save tax-payer dollars, to streamline operations and to more efficiently serve its residents, the St. Petersburg Housing Authority (SPHA) has made several changes to tenant rent payments and utility allowances, which will take effect on January 1, 2010.

Each year, SPHA pays out approximately $500,000.00 to renters who pay $0 in rent. In many cases, after a credit is given for utility allowances, the housing authority ends up writing a check to program participants, which is termed as “negative rent.” SPHA is taking the following steps to reduce this $500,000.00 expense for 2010:

• The minimum rent required by SPHA will increase from $25 to $50 per month. This increase in minimum rent brings SPHA in line with minimum rents charged by other local housing authorities in the region and was approved by the SPHA’s Board of Commissioners on September 24, 2009.

• SPHA also will assess new utility allowance amounts for each of its public housing properties, based on the results of a recent survey of tenant utilities.

• In order to further streamline SPHA’s system for collecting rent payments at its public and affordable housing complexes, rent payments will be mailed directly to the Clearwater Housing Authority’s Financial Management and Compliance Center (FMCC). SPHA has an Inter-Local Agreement with the Clearwater Housing Authority for financial management under its nationally recognized Economies of Scale (EOS) program.

Chief Executive Officer Darrell Irions says, “The intent of these changes is to save much needed resources while improving efficiency of service to SPHA’s residents.”

About St. Petersburg Housing Authority (SPHA):

The St. Petersburg Housing Authority (SPHA) is a public body corporate that has a 70‐year history of developing and administering affordable housing programs in the city of St. Petersburg. Consistently scored as a “High Performer” on U.S. Department of Housing and Urban Development (HUD) assessments, SPHA provides housing assistance to more than 3,400 families residing in St. Petersburg. The authority has received national awards and recognition for its innovative programs, including the Economies of Scale program, the Jordan Park HOPE VI redevelopment program, the
Section 3 program and the Fraud Recovery program. More information about the authority’s programs and services can be found at www.stpeteha.org.