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Housing Authonty Meeting' November 24,1998 Santa MOnica, California
To Housing Authority
From City Staff
Su bJect Recommendation to Incorporate County of Los Angeles SectIon 8 Tenants
INTRODUCTION
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ThiS staff report transmits Information to the Housing Authonty concerning the status of the
Tenant Assistance Rental Program (TARP) and a recommendation to Incorporate 93
County of Los Angeles Section 8 tenants who are Santa MOnica reSidents Into the Santa
MOnica Section 8 program
BACKGROUND
On June 9. 1998 the City Council authonzed the creation of the Tenant Assistance Rental
Program (TARP) The program was created in response to the large number of Sectron
8 contract cancellations that had pnmarlly affected elderly and disabled tenants At that
time, 63 Section 8 tenants had been affected by the cancellation of Section 8 contracts
City staff developed program regulations In June and began proViding rental assistance to
the first three TARP partiCipants on July 1, 1998 Currently, nine tenants receive TARP
assistance TARP proVides up to two years of City-funded rental assistance to Section 8
tenants whose landlords have canceled their Section 8 contracts The program also
proVides assistance with moving costs and secunty depOSits for tenants who relocate to
other apartments
To date, 79 tenants have been affected by the cancellation of Section 8 contracts Of
these, 29 are semors, 9 are disabled seniors, 23 are disabled and 18 are tenants with
children Staff works very closely with affected tenants and coordinates with Santa
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Monica-based social service agenCies that provide case management and other needed
services on an as-needed basIs In addition, Westslde Rental Connection, a Santa MOnica
business, donates its weekly rental listing to affected tenants
The status of the 79 tenants IS summarized In the following table:
TENANT STATUS NUMBER
ReceiVing T ARP ASSistance 9
Relocated In Santa MOnica 19
Relocated outSide of Santa Monica 8
Dropped from Section 8 program and stayed In their units 9
EVicted from their apartments 6
Pending the outcome of a court case 3
Contract cancellation in progress 14
Owner canceled contract termlnatlon 4
Opt out on hold 6
Tenant died 1
TOTAL 79
DISCUSSION
DUring the public testimony at the June 9, 1998 City CounCil meeting, the Issue of
County of Los Angeles SectIon 8 tenants who reside In Santa Monica was discussed
CounCil members expressed concerns about the Impact of Section 8 contract
cancellations on the County's Section 8 tenants In Santa Monica CounCil members
directed staff to research the status of these reSidents and to report back to City
CounCil with recommendations for their conSideration
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Staff has contacted the County of Los Angeles and determined that 93 Santa MOnica
residents currently receive Section 8 assistance from the County Of the 93 County
Section 8 tenants, 45 live In bUildings owned by Community Corporation of Santa
Monica (CCSM) and 3 live In bUildings owned by other non-profit organizations The
County IS Willing to enter Into a wrrtten agreement with the City of Santa Monica which
Will allow the City to Incorporate the 93 Santa MOnica reSidents Into ItS Section 8
program
Because the Santa MOnica HOUSing Authority has an 88% lease-up rate, there are a
suffiCient number of unused certificates and vouchers available to Incorporate the 93
Santa MOnica tenants The low lease up rate results from the Section 8 program's
current inability to remain competitive In the rental market place HUD conSiders 95%
to be the minimum acceptable lease-up rate An 88% lease-up rate IS conSidered
problematiC by HUD and could result In the permanent loss of certificates and
vouchers Staff has been informed that HUD policy generally requires the transfer of
unused certificates and vouchers from under-leased agencies to fully-leased agencies
IncorporatIng the Santa MOnica reSidents WIll Immediately Increase our lease up rate to
96% and Will Increase administrative fees earned by $65,765 annually
ISSUIng 93 certIficates and vouchers to replace County certificates and vouchers Will
temporarily limit the number of currently unserved reSidents who can be aSSisted In the
future However, the Section 8 program "turns over" an average of 96 certificates and
vouchers a year PartiCipants become IneligIble, die or move to another community
Over time the Section 8 program will bUild up a reserve of newly unused certificates and
vouchers In the normal course of bUSiness
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FINANCIAL/BUDGETARY IMPACTS
Because of the Impact of Costa-Hawkins, a low Fair Market Rent (FMR) standard and
landlords canceling Section 8 contracts, the Section 8 program IS currently 88% leased
up Because the current lease up rate IS below the program's FY 98-99 approved
budget levels, It IS antiCIpated that the additional revenue and expenses Involved In
Incorporating the County SectIon 8 tenants will not require a budget adjustment It IS
antiCipated that there IS sufficient budget authority currently avaIlable within the current
FY 98-99 approved budget
Recommendations
Staff recommends that the HOUSing Authority direct the Secretary to enter mto an
agreement with the County of Los Angeles to Incorporate the 93 County of Los Angeles
SectIon 8 tenants who are resIdents of Santa MOnica
Prepared by Jeff Mathieu, Director, Resource Management Department
Bob Moncrief, Housing and Redevelopment Manager
Peter Mezza, HOUSing Coordinator
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