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SR-HA-2 (3) ~ . J../ A - ~ I At\1 1 ,) ~"Q- J ; - .... Ij..... RMD:SW:swstaff Santa Monica, California Housing Authority Meeting: January 12, 1993 TO: Housing Authority FROM: Housing Authority Staff SUBJECT: RESOLUTION AUTHORIZING THE EXECUTIVE DIRECTOR TO EXECUTE THE ANNUAL CONTRIBUTIONS CONTRACT FOR TWENTY-FIVE CERTIFICATES AND TWENTY-FIVE VOUCHERS INTRODUCTION The U.s. Department of Housing and Urban Development (H.U.D.) has notified the Santa Monica Housing Authority that 25 new Section 8 Certificates and 25 new Section 8 Vouchers have been approved based on its August 1992 appllcation. This report transmits for adoption a Resolution authorizing the Executive Director to execute the Annual contributions Contract (ACC) for twenty-five certificates and twenty-five Vouchers. BACKGROUND The Santa Monica Housing Authority administers two types of federal rental assistance programs: 1} the Section 8 Housing certificates Program, and 2) the section 8 Housing Voucher Program. Both programs provide assistance to participating households which moves with the family rather than being dedicated to a housing unit. Both programs are based on the tenant paying 30% of their adjusted income as their portion of the rent. HA- ~ [f;M -'! -~ ~'j'J: ....I~h ..1.. ~ ~....r..,;,J ~ On the Certificate Program, an eligible tenant will always pay 30% of their income towards rent regardless of the total rent on a unit. The maximum rent for the unit is set by the Federal Government and the Housing Authority is required to perform a rent reasonableness test for the area. Maximum annual increases are also set by the Federal Government. with a Voucher, an eligible tenant is entitled to a rental subsidy that is the difference between 30% of their adjusted income and a payment standard set by the Housing Authority. The tenant can pay more or less than 30% of their income depending on the actual rent for the unit. The payment standards are usually adjusted annually to provide increased tenant subsidies to offset rent increases. The Vouchers are transferrable to any city with an active Housing Authority insuring the greatest mobility for section 8 participants. The City's Section 8 Program currently has an allocation of 200 Vouchers and 617 certificates. The new award will increase these totals to 225 Vouchers and 642 certificates. FISCAL/BUDGETARY IMPACT The contract authorizes up to $404,lB6 annually from R.U.D. under the ACC which will cover the cost of Housing Assistance Payments and all administrative costs involved in leasing up the new allocations. .. The adopted budget for FY 1992-93 includes this anticipated unit increase. RECOMMENDATION Staff recommends the Housing Authority adopt the attached Resolution authorizing the Executive Director to sign the contracts for 25 additional certificates and 25 additional Vouchers. Prepared by: Nancy West, Housing Program Manager steven Wagner, Housing Coordinator Resource Management Department .". { .... RESOLUTION NO. 55 H.A.S. (HOUSING AUTHORITY SERIES) A RESOLUTION OF THE HOUSING AUTHORITY OF THE CITY OF SANTA MONICA AUTHORIZING THE EXECUTIVE DIRECTOR TO EXECUTE THE ANNUAL CONTRIBUTION CONTRACT FOR TWENTY-FIVE CERTIFICATES AND TWENTY-FIVE VOUCHERS. WHEREAS, the Department of Housing and Urban Development has notified the Housing Authority of the availability of 25 section 8 Certificates and 25 Vouchers: and WHEREAS, these additional Section 8 Certificates are justified by the application waiting list and is cons istent wi 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 Executive Director is authorized to execute the Annual contribution Contracts for an additional 25 Section 8 Existing Housing Certificates and 25 Section 8 Vouchers. 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: ~ - LAWRENCE City Attorney - - , ( .- , . ADOPTED AND APPROVED this 12th day of January, 1993 OJa1 / #' Chair I hereby certify that the foregoing Resolution No. 55 (HAS) was duly adopted by the Housing Authority of the city of Santa Monica at a meeting thereof held on the 12th day of January 1993, by the following vote of the Authority: AYES: Commissioner: Abdo, Genser, Greenberg, Holbrook, Olsen, Rosenstein, Vazquez NOES: Commissioner: None ABSTAIN: Commissioner: None ABSENT: Commissioner: None ATTEST: ~4-Jf4~ ~ - Clerk / - - 1 -