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SR-HA-2 / I . #Ir~~ . . nE i { ,.. ;~gl (-", .... -~ : CED/HD:SW:lc/acc1a/pc Housing Authority Meeting 12/17/91 Santa Monica, California TO: Housing Authority FROM: City staff SUBJECT: Recommendation to Adopt Resolutions ( 1) Approving a Revised Section 8 Housing Certificate Annual Contributions Contract, (2) Approving the Execution of the Annual Contributions Contracts for 12 Housing Assistance Vouchers and 12 certificates, and (3 ) Approving the Submission for an Application for 79 Housing Assistance Certificates INTRODUCTION This report recommends that the Housing Authority take the following actions to preserve existing HUD funding and to receive new HUD funding for section B rental assistance: (1) approve a resolution amending the Consolidated Annual contributions Contract (CACC) to receive new HUD funding for an expiring allocation of 175 section 8 rental assistance Certificates; and (2) approve a new Annual Contributions Contract which will permit the City to receive 12 additional section 8 certificates and 12 additional section Vouchers; and (3) authorize the submission of an application for an additional 79 certificates in response to the September 30, 1991 HUD Notice of Funding Availability. BACKGROUND The Housing Authority currently administers 580 Certificates and 188 Vouche.rs. The lease up rate has averaged around 99% for the past year with vacancies occurring when current participants leave the program. The Housing Authority currently has over 2,500 H A.... - ...... ""(-2 ..~1 l)i:L : t t:j":}i households on our waiting list. The Housing Authority aggressively pursues any opportunities to obtain an increased allocation of Section 8 Certificates and Vouchers. The actions recommended in this report could increase the Housing Authorityfs allocation by 12 additional Section B certificates and 91 additional Vouchers, while preserving an additional 175 Section 8 certificates which are due to expire on December 23, 1991. DISCUSSION ( 1) Resolution Arnendinq the Consolidated Annual contributions Contract (CACC) to Receive New HUD Funding for an Expirinq Allocation of Section 8 Rental Assistance Like many other local Housing Authorities, the Santa Monica Housing Authority has been monitoring the expiration date of its section 8 contracts. These federal contracts, by their terms, all have scheduled expiration dates. Without additional funding to renew these expiring contracts, needed rental assistance subsidies would disappear. Fortunately, the current federal budget contains an appropriation to finance the renewal of section 8 contracts which are scheduled to expire this year. These renewals will enable low income households to continue to receive rental assistance with no interruption of benefits. One of the allocations administered by the Housing Authority consists of 175 certificates with a term of 15 years, expiring on 2 ~ December 23, 1991. HUD has invited the Santa Monica Housing Authority to renew this expiring allocation with new budget authority to support the continued participation of 175 eligible households. The new contract will have a term of five years. Approval of the Amended Consolidated Annual contributions Contract will permit the continued utilization of these 175 section 8 certificates without interruption. (2) Resolution Approving a New Annual Contributions Contract which will Permit the City to Receive 12 Additional Section 8 certificates and 12 Additional section Vouchers In May 1991, the Department of Housing and Urban Development (HUD), through a Notice of Funding Availability (NOFA) , informed Housing Authorities of the availability of new Vouchers and certificates for the Section 8 program. The Santa Monica Housing Authority submitted an application for additional Vouchers and certificates in response to that NOFA, and was informed that we were awarded 12 additional section 8 certificates and 12 additional Vouchers. Approval of this new Annual Contributions Contract will provide the Housing Authority with these additional 24 units and will allow the Authority to assist applicants who have waited over two years for a subsidy. (3) Resolution to Authorize the Submission of an Application for an Additional 79 Section 8 certificates in Response to the Seotember 3 ~-- , 30, 1991 HUD Notice of Funding Availability On September 30, 1991 HUD through a Notice of Funding Availability informed Housing Authorities of the availability of new Vouchers and certificates for the Section 8 Housing Assistance program. Unlike prior allocations, the allocation of certificates announced on September 30, 1991 links housing subsidies with other social services to assist the Section 8 family in becoming self - sufficient. HUD has termed this new program the Family Self Sufficiency (FSS) program. FSS links housing with existing community soclal services, such as job training, education, child care, transportation or any other services which would be helpful in guiding families toward becoming self sufficient. The detailed implementation program for Santa Monica is not required to be developed by the Housing Authority until after the application is approved. However, it would not require the funding of any new or additional social services by the Housing Authority or the City, but would utilize programs already funded and existing in the . community. Beginning in Federal FY 1992-93, all housing authorities receiving new allocations of Certificates or Vouchers must operate an FSS program involving Certificates and Vouchers equal to the cumulative number of all new Certificates and Vouchers received by them during that year. 4 . Participation in the FSS program by the Section 8 tenant is voluntary. However, the program provides participants with an opportunity and an incentive to relieve themselves of government assistance. Under the existing section 8 program as one's income increases, one's rent increases, which creates a disincentjve for increased earnings. Under the FSS program any increase in tenant rent payments resulting from an increase in earned income is placed in an escrow account for the tenant. This escrow account is set up utilizing Federal HUD rental subsidy funds and is maintained by the local housing authority. When the tenant is independent of any government subsidy, the family may then withdraw the escrow funds. These funds may be then be used in any manner that the family wishes, including home ownership. Any families still receiving housing assistance 10 years after signing the contract will forfeit the escrow account. If this application is approved, the Housing Authority will have the budget authority to subsidize 79 new households in need of housing. Applications are due to HUD on January 10, 1992 and are ranked competitively against other Housing Authorities. Based on current program performance and lease up rate, staff believes that the Housing Authority has an excellent opportunity to receive these additional certificates. The detailed FSS implementation program does not need to be in place until 12 months following execution of a contract with HUD. staff feels that the Housing Authority will be able to create a program in the allotted time frame and lease up 5 all 79 units in the following 12 months. BUDGET/FINANCIAL IMPACT Payments to Santa Monica Housing Authority's section 8 program are budgeted in account number 12-700-695-00000-7734-00000. (1) with respect to the renewal of the expiring section 8 Certificate contract, as described in section 1, the Housing Authority's FY 1991-92 budget already provides for this anticipated renewa 1. Thus approval of the contract will not require any budget action at this time. Current costs for both subsidy payments and earned administrative fees under this contract are approximately $885,000 annually. (2) with respect to the execution of the new Annual Contributions Contract, as described in Section 2, HUD has set aside annual contract authority of $170,011. The Housing Authority's adopted budget for FY 1991-1992 has already incorporated this anticipated increase. Therefore, there is no need to modify the Housing Authority's 1991-1992 adopted budget at this time. (3) with respect to the submission of an application in response to the Family Self SUfficiency Notice of Funds Availability, as described in section 3, funds for this program most probably will not be received until after June, 30, 1992. Therefore, there is no need to modify the Housing Authority's 1991-1992 adopted budget at this time. However, prior to setting up the tenant escrow funds it will be necessary to create an account for the funds. 6 -- - --- - - RECOMMENDATION It is recommended that the Housing Authority ( 1) approve the resolution amending the Consolidated Annual contributions contract (CACC) to receive new HUD funding for an expiring allocation of section 8 rental assistance; and (2) approve the new Annual contributions Contract which will permit the City to receive 12 additional Section 8 certificates and 12 additional section vouchers; and (3) authorize the submission of an application for an additional 79 certificates in response to the September 30, 1991 HUD Notice of Funding Availability. And further that the Housing Authority authorize the Executive Director to execute the Annual contributions Contract, the Revised Annual contributions Contract and other necessary documents. Prepared by: Chuck Elsesser, Housing Program Manager steven Wagner, Housing Coordinator Department of Community and Economic Development Attachments: Resolutions :acc.up 7 - -- BEFORE DISTRIBUTION CHECK CONTENT Of ALL FOq CITY CLERK'S ACTIO~ --- - 1_:'/1~V ORDINANCE _ DIST~IBUTION OF RESOLUTI0N Council Heet1ng Date /d(~719./ Introduced' Agenda Item t )-l/l-;; - Adopted: 110 , ALWAYS PUBLISH ADOPTED ORDINANCE ~s it amended? Cross out Attorney's approval VOTE: Affirrnative:'~i ~> ~I ~f*'7-1 ~/ b~~ Negative: / Abstain: t Absent: ~ PROOF VOTES WITH ANOTHER PERSON BEFORE ANYTHING DISTRIBUTION: ORIGINAL to he signed, sealed and filed in Vault. NEWSPAPER PUBLICATION (Da te : ) -- D~partment originating staff report( Laurie L1eberman} Ordinances only for Attorney ( Claud~a Thompson) 2 Management Services Lynne Barrette ORDINANCES O~LY 1 - Agency mentioned 1n document or staff report (cert1f1ed?) Subject file (agenda packet) 1 Counter file 1 . , Others: (Review for departments who need to know). Airport parJsing Auth. Auditorium Personnel Building Dept. Planning ~~ Police F nance-~- , Purchasing General Servo Recr!parks Library Transportation Manager Treasurer Fire SEND FOUR COP~~S OF ALL ORDINANCES TO: CODED SYSTEMS <1 120 Main Street Avon, New Jersey 07717 SEND FOUR COPIES or ALL ORDINANCES TO: 4 Debra Myrick Santa Monica Municipal Court 2- 1725 Main Street, Room llB Santa Honica, CA 90401 Total Copies - -- - - -- -- - -- ~ -- -- -- - - - -. . -- ---... , RESOLUTION NO. 49(HAS) (Housing Authority series) A RESOLUTION OF THE HOUSING AUTHORITY OF THE CITY OF SANTA MONICA APPROVING AMENDED EXHIBIT II TO PART I OF SECTION 8 HOUSING CERTIFICATE PROGRAM CONSOLIDATED ANNUAL CONTRIBUTIONS CONTRACT NO SF-520 (E) AND AUTHORIZING EXECUTION WHEREAS, the Hous1ng Authority of the city of Santa Monica (PHA) desires to enter into an amended part I of the Consolidated Annual contributions Contract (CACC) with the united states of America Government for the Section 8 Existing housing certificate program; and WHEREAS, part I of the section 8 Existing Housing Certificate CACC must now be revlsed so that it will consist of the following counterparts: (a) Part I of the CACC, HUD-52520B (8/88) applicable to the section 8 Existing Housing certificate Program; (b) Exhiblt I, projects appropriated before Federal fiscal year 1988; (c) Exhibit II, projects appropriated in Federal fiscal year 1988 and later years adding replacement project no. CA16-E111-017. NOW, THEREFORE, BE IT RESOLVED BY THE SANTA MONICA HOUSING AUTHORITY AS FOLLOWS: Section 1. The amended Exhibit II of the CACC for the section 8 Existing Housing certificate Program is hereby approved and accepted. The Chairperson or Acting Chairperson lS hereby authorized and directed to execute the counterparts of the CACC on behalf of the PHA, and the Secretary is hereby author1zed to lmpress the official seal of the PHA on each such counterpart and to forward such executed counterparts to the Government together with such other documents evidencing the approval and authorizing the execution thereof as may be required by the Government. section 2. The Secretary shall certify to the adoption of this resolution, and thenceforth and thereafter the same shall be in full force and effect. APPROVED AS TO FORM: _ . ~ ~ \~{"".r~~- :. ~~"""'-' , ; ROBERT M. MYERS City Attorney :acc.res . . ADOPTED AND APPROVED this 17th day of December, 1991 I hereby certify that the foregoing resolution was duly adopted by the Housing Authority of the City of Santa Monica at a meeting thereof held on the 17th day of December, 1991, by the following vote of the Authority: AYES: Commissioner: Abdo, Katz, Olsen, Vazquez, Zane, Genser NOES: Commissioner: None ABSTAIN: Commissioner: None ABSENT: Commissioner: Holbrook ATTEST: C:L3~ . I Cferk ha BEFORE DISTRIBUTION CHECK CONTENT Of ALL FOQ CITY CLERK'S ACTION DIS~l'IDVTION OF RESOLUTI0N f S-O(~) ORDINANCE . Council Meeting Date /~~.J /f7/ . Introduced: Agenda Item f ;4 n - c::?, Adopted: ALWAYS PUBLISH ADOPTED ORDINANCE 'Was it amended? /yo Cross out Attorney's approval VOTE: Affirmative: ~ I::; Of ?f.z, c; . Negative: Abstain: t Absent: ~ PROOF VOTES WITH ANOTHER PERSON BEFORE ANYTHING DISTRIBUTION: ORIGINAL to he signed, sealed and flIed in Vault. NEWSPAPER PUBLICATION (Date: ) -- D~partment originating staff report( Laurie Lieberman) Ordinances only for Attorney , Claudia Thompson) 2 Management Services Lynne Barrette ORDINANCES O~LY 1 - Agency mentioned in document or staff report (certi fled?) - Subject file (agenda packet) 1 Counter file 1 , Others: (Review for departments who need to know). Airport parJsinq Auth. Auditorium Personnel Building Dept. Planning ~~ Police . . nanceT'L -!- Purchasing . General Servo Recr/parks Library Transportation Manager Treasurer Fl.re SEND FOUR COP~~S OF ALL ORDINANCES TO: CODED SYSTEMS 4 120 Main Street -- Avon, New Jersey 07717 SEND FOUR COPIES OF ALL ORDIN~NCES TO: 4 Debra Myrick Santa Monica Municipal Court 1 1725 Main Street, Room 118 Santa Monica, CA 90401 Total Copies ---- -- - -- -- - " -- -.. + .. -- -- - - - - . . - - - -- --- - -- .. ; . RESOLUTION NO. SO HAS (HOUSING AUTHORITY SERIES) A RESOLUTION OF THE HOUSING AUTHORITY OF THE CITY OF SANTA MONICA AUTHORIZING THE EXECUTIVE DIRECTOR TO EXECUTE THE ANNUAL CONTRIBUTION CONTRACTS FOR TWELVE SECTION 8 CERTIFICATES AND TWELVE SECTION 8 VOUCHERS. WHEREAS, the Department of Housing and Urban Development has notified the Housing Authority of the availability of 12 Section 8 certificates and 12 vouchers: and WHEREAS, these additional section 8 certificates and vouchers are justified by the application wa~ting list and 1S consistent w~th Housing Assistance Plans for our area of operation, NOW, THEREFORE, THE HOUSING AUTHORITY OF THE CITY OF SANTA MONICA RESOLVES AS FOLLOWS: SECTION 1. The Execut1ve Director is authorized to execute the Annual contribution Contracts for an additional 12 Section 8 Existing Housing certlficates and 12 Section 8 Vouchers. SECTION 2. The Secretary shall certify to the adoption of this Resolution, and thenceforth and thereafter the same shall be ln full force and effect. APPROVED AS TO FORM: -n~~-e "","", ..~,,~--~~ p ~ ROBERT M. MYERS city Attorney :has ~ f , . ADOPTED AND APPRO~17th day of December, 1991 ~~ I hereby certify that the foregoing resolution was duly adopted by the Housing Authority of the City of Santa Monica at a meeting thereof held on the 17th day of December, 1991, by the following vote of the Authority: AYES: Commissioner: Abdo, Katz, Olsen, Vazquez, Zane, Genser NOES: Commissioner: None ABSTAIN: Commissioner: None ABSENT: commissioner: Holbrook ATTEST: ~U- c~rk ha . BEFORE DISTRIBUTION CHECK CONTENT OF ALL FO~ CITY CLERK'S ACTION ;IST~IBVT'ION OF RESOLUTION # S'/(~) ORDINANCE * ./ Council Meeting Date/;;;;)7/9/ Introduced: ..- " Agenda Item i _ /-1-:71 --;<. Adopted:_ ~s it amended? ~D ALWAYS PUBLISH ADOPTED ORDINANCE Cross out Attorney's approval VOTE: Affirmative: /1-;1;; C)i1 ~ c. - Negative: Abstain: t Absent: ~ , PROOF VOTES WITH ANOTHER PERSON BEFORE ANYTHING DISTRIBUTION: ORIGINAL to he signed, sealed and f~led in Vault. NEWSPAPER PUBLICATION r Da te : ) -- D~partment originating staff report( Laurie L~eberman) Ordinances only for Attorney ( Claud1a Thompson) 2 - Management Serv1ces Lynne Barrette ORDINANCES ON~Y 1 - Agency mentioned in document or staff report (cert1f1ed?) Subject file (agenda packet) 1 Counter file 1 . , Others: (Review for departments who need to know) . Airport parJsing Auth. Auditorium PerBonnel Building Dept. Planning ~D Police ~n~ _..L Purchasing General Servo Recr/Parks Library - Transportation Manager Treasurer Flore SEND FOUR COP~~S OF ALL ORDINANCES TO: CODED SYSTEMS 4 120 Main Street Avon, New Jersey 07717 SEND FOUR COPIES OF ALL ORDINANCES TO: 4 Debra Myrick Santa Monica Municipal Court 1725 Main Street, Room 118 ~ Santa Monica, CA 90401 Total Copies ---- -- - -- -- - -. -. -- - -- -- - . -.. .-- --- ~ . RESOLUTION NO. 51 (HAS) (HOUSING AUTHORITY SERIES) A RESOLUTION OF THE HOUSING AUTHORITY OF THE CITY OF SANTA MONICA APPROVING THE SUBMISSION OF AN APPLICATION FOR 79 HOUSING ASSISTANCE CERTIFICATES AND AUTHORIZING THE EXECUTIVE DIRECTOR TO SIGN SAID APPLICATION AND TO EXECUTE THE ANNUAL CONTRIBUTION CONTRACT IF THE APPLICATION IS APPROVED WHEREAS, the Department of Housing and Urban Development is currently accepting applications from Public Housing Agencies for Section 8 Existing Housing Certificates, and WHEREAS, the City of Santa Monica Housing Authority proposes to apply for a total of 79 additional Section 8 Existing Housing Certificates which is justified by the application waiting list and is consistent with Housing Assistance Plans for our area of operation, NOW THEREFORE, THE HOUSING AUTHORITY OF THE CITY OF SANTA MONICA RESOLVES AS FOLLOWS: SECTION 1. The Housing Authority approves the submission of an application for 79 additional section 8 Existing Housing certificates. SECTION 2. The Executive director is authorized to submit an application on behalf of the City of Santa Monica Housing Authority and to execute the annual contribution contract if the application is approved. SECTION 3. The Secretary shall certify to the adoption of this Resolution, and thenceforth and thereafter the same shall be in full force and effect. APPROVED AS TO FORM - ; '. ..-y-..,." - - ". ~...- ..,;: Robert M. Myers city Attorney :res.79 J . . ADOPTED AND APPROVED this 17th day of December, 1991 I hereby certify that the foregoing resolution was duly adopted by the Housing Authority of the City of Santa Monica at a meeting thereof held on the 17th day of December, 1991, by the following vote of the Authority: AYES: commissioner: Abdo, Katz, Olsen, Vazquez, Zane, Genser NOES: Commissioner: None ABSTAIN: Commissioner: None ABSENT: commissioner: Holbrook ATTEST: 06~dL6< ~ i- 1erk ha